Marijuana Money Archives - Page 3 of 13 - Green Market Report

Video StaffVideo StaffFebruary 7, 2020

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Hey folks, the Northeast Cannabis Business Conference is only a couple of weeks away in Boston. If you use the code NECBC130 you’ll get a 30% discount on your ticket. This is a 2-day event with over 150 exhibitors and over 100 speakers. From seed to sale to educational to regulatory issues, this is an encompassing conference. Check it out.

One of the OG’s of legal cannabis Tilray announced this week that the company was restructuring and laying off 10% of its workforce. The company said its focus is on becoming profitable and it will target its domestic recreational markets and its Manitoba Harvest hemp food acquisition.

Tilray wasn’t alone on the layoff announcement, Aurora Cannabis also said it was cutting its workforce by 10% too and the company also laid off its founder Terry Booth. The company is also restructuring and cutting back on expenses across the board.

In sad news, Whoopi & Maya has closed its doors. Apparently there was a conflict between the founders Whoopi Goldberg and Maya Elisabeth that couldn’t be resolved.

Ok, on to some cheerier news

GW Pharmaceuticals said it was applying to use its cannabis-based drug Epidiolex to treat a condition called tuberous sclerosis, a disorder known for causing non-cancerous tumors on an afflicted person’s body.

Lift & Co. reported that its total revenues for the third quarter increased 11% to $926 thousand. Revenue increased for the last nine months by 41% to $4.6 million. The company’s well-known trade show reported income of $3.5 million for the past nine months and net income for its evens of $1.1 million, beating last year’s numbers.

Golden Leaf is acquiring Oregon’s extract company Tozmoz for roughly $2.8 million.

Planet 13 said that its café and event space is paying off. The Las Vegas dispensary said January sales remained strong with an average ticket price of $100.

And Field Trip Ventures closed on its Series A fundraising round of $8.5 million. 


Video StaffVideo StaffJanuary 31, 2020

3min8270

The Northeast Cannabis Business Conference is sponsoring this week’s Marijuana Money video. It is Feb 19 and 20th in Boston. Get your tickets now and if you use the promo code NECBC130 you get 30% off. Heck of a deal. You can spend your savings at a local dispensary.

And building on that, Curaleaf is going to be opening the first adult-use dispensary in Cape Cod, the facility is set to have its grand opening on February 6th, 2020.

 Sunniva said it is closing its wholly-owned subsidiary Full Scale Distributors in February. The CEO said it will focus on the preservation of available funds to actively defend Sunniva under the dispute related to the Build to Suit Lease of the Cathedral City Glasshouse. 

EcoGen Labs is continuing to expand and grow as it successfully closes on a $40 financing arrangement through private placement. 

Emerald Health Therapeutics had entered into a shares for debt transaction with Emerald Health Sciences.

TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) has named the company’s Executive Chairman Jason Ackerman as the interim CEO, replacing the current CEO Michael Nashat.

Driven Deliveries has announced its decision to purchase Humboldt Heritage Inc., a cannabis company based in Northern California.

On our Hemp Market Report web site we reported that there is such a glut of hemp that prices are falling and some farmers can’t sell their harvests. Has the bubble already burst for CBD? Check it out. 

And High Times Chairman Adam Levine sent out a letter to shareholders saying the company was going to extend its capital raising offering again. This time the company wants to raise $5 million. The letter also reviewed the latest decision to move into the dispensary business and the changes in the C-Suite. 


Kaitlin DomangueKaitlin DomangueJanuary 30, 2020
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It’s time for your Daily Hit of cannabis financial news for January 30th, 2020.

On the Site

CLS Nevada Projects 2020 Revenue Of $17 Million

CLS Holdings USA, Inc (OTCQB: CLSH)(CSE: CLSH) released its 2019 calendar year-end statement for CLS Nevada, not long after the company reported its quarterly earnings on January 14. The company said in a statement that it was “forecasting CLS Nevada 2020 revenue of $17 million and positive EBITDA of $4 million.” The company will need to hustle if it wants to hit that $17 million goal. CLS said that it plans to increase sales by 100% at City Trees by eliminating low return on investment SKUs, re-branding and increasing visibility through better marketing channels. That includes expanding the  Oasis Cannabis parking lot and vault to allow it to efficiently serve 1250 customers a day. The company also wants to create new revenue streams by offering advertising opportunities to brands and partners.

High Times Tells Shareholders It Needs More Capital

It’s been a tumultuous two months for venerable cannabis publisher High Times following an equally bumpy road to going public. On Wednesday, Chairman Adam Levine sent a letter to shareholders of the private company stating that it would once again extend its fundraising campaign and abandon its efforts to list on the NASDAQ Marketsite Exchange (NASDAQ: NDAQ).

The latest extended offering will terminate on the first to occur of either the date on which all 4,545,454 shares are sold or March 31, 2020. These shares though are priced back at $11 with the goal of raising another $5 million. According to the most recent corporate presentation, High Times had 32,460, 313 issued shares and if all were valued at $11, that is a $357 million market cap. The company’s current total liabilities are $68 million.

The First Historically Black College Is Launching A CBD Line

The Southern University Agricultural Research and Extension Center in Baton Rouge, Louisiana, along with its partner Ilera Holistic Healthcare is launching a CBD product line called ALAFIA. Southern is the first HBCU (Historically Black College University) to start its own CBD product line that is available for sale at dispensaries and other retail locations.

“Southern has been a leader in agriculture and the sciences for 140 years while staying true to its mission of access,” said Ray Belton, the president of the Southern University System. “This CBD venture with Ilera encompasses all of that.”

Hemp Glut Causing Prices To Drop, Unsold Harvests

Hemp Benchmarks report for January was published on Wednesday at the Hemp Benchmarks website. Founder Jonathan Rubin noted that wholesale hemp markets continue to face significant challenges, including oversupply and declining prices.

The report stated, “We have in previous reports emphasized the current glut of biomass on the market, which has led to farmers being unable to move their harvests. Such market conditions continued in January, with numerous members of our Price Contributor Network reporting that relatively little buying and selling of biomass was taking place. Transactions that were reported showed high-CBD biomass prices continuing to sink, with the assessed rate for transactions of over 1 million pounds down 53% from last month.

In Other News

Two Kentucky Hemp Companies Facing Bankruptcy 

Two companies are facing financial trouble as GenCanna has had three separate creditors try and force the company to declare bankruptcy. The three creditors are owed $50,000 collectively. Separately, Sunstrand owner William “Trey” Riddle filed for Chapter 7 bankruptcy in a Louisville court. 

A creditors’ meeting is scheduled for February 6th in Louisville, KY. 


Kaitlin DomangueKaitlin DomangueJanuary 27, 2020
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Sunniva (OTCMKTS: SNNVF), a Canadian cannabis company announced the closing of wholly-owned subsidiary Full-Scale Distributors, LLC set to take place in February 2020. 

“The closing of FSD is a necessary step that will eliminate the cash outlay required to operate that business,” said Dr. Anthony Holler, Chairman & CEO of Sunniva Inc. “We continue to focus on the preservation of our available funds to allow us to actively defend Sunniva’s rights under the previously disclosed dispute related to the Build to Suit Lease of the Cathedral City Glasshouse.”

Cannabis companies that are strapped for cash not have the option of filing for bankruptcy. According to bankrupt stock expert, Rick Szambel, “Currently under U.S. Bankruptcy Law companies that are engaged in a business or product not legal under Federal Law may not use the U.S. Bankruptcy Code for protection in reorganizing their debt or centralize their assets for sale. Federal Law considers marijuana an illegal substance and U.S. Trustee who is part of the Department of Justice has aggressively blocked companies in the marijuana industry, employees, and even landlords from filing Chapter 7 or 11, often forcing companies to wind down at a state level.”

This is not the first time the company has been in hot water. Last year, the company and one of its subsidiaries were named in a lawsuit for failure to repay a loan. Green Market Report previously reported “Sunniva, through its subsidiary 116, entered into a $3.4 million mortgage to finance the purchase of land for the greenhouse facility in Okanagan Falls, British Columbia,” according to the company’s November financial statement. Also included in the statement was the acknowledgment the company had paid $400,000 of their loan as of September 30th, 2019 but they were in default on the remaining balance. The company’s stock also fell significantly in November following the resignation of its CFO and president.


Video StaffVideo StaffJanuary 17, 2020

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There’s just one more week until our first Psychedelic Investing event. After that, our next cannabis conference will also be held in NYC on April 3. You can get all the information at www.greenmarketsummit.com.

GW Pharmaceuticals plc said that it expects total net product sales to be approximately $108 million for the fourth quarter and approximately $309 million for the year ending December 31, 2019. The bulk of the fourth quarter sales comes from the epileptic drug Epidiolex, which is expected to be roughly $104 million for the fourth quarter and approximately $296 million for the full year.

Organigram Holdings Inc. reported that its first-quarter 2020 revenue rose by 102% over last year to $25.15 million, which beat analyst estimates by $10.24 million. The company cautioned that it is pumping the rakes on cultivation as Canada is moving at a much slower pace on store openings.

Aphria Inc. reported revenue for adult-use cannabis increased 46% sequentially to $29 million. Total net revenue decreased sequentially by 4% to $120.6 million but jumped 457% over last year’s second quarter. Aphria delivered a net loss of $7.9 million

This week High Times announced that it was getting into the dispensary business. The company has plans for 2 flagship locations in Las Vegas and Los Angeles. In addition to that, High Times named Paul Henderson as its new CFO. This will be the third CFO for the company in just one year.

ManifestSeven (formerly known as MJIC) has acquired San Francisco-based legal cannabis delivery service company Lady Chatterley Health, which is focused on high-end women’s products for an undisclosed amount.

Rogue Station Companies, Inc. (OTC Pink: RGST) has acquired Brahman LLC, d/b/a Terpp Extractors, a Fort Collins, Colorado-based manufacturer of cannabis processing equipment in an all-stock transaction. 

Carlos Santana announced his partnership with Left Coast Ventures to develop premium cannabis and hemp CBD brands. 

And finally, Cultivar Holdings said its shares have been listed on the Canadian Securities Exchange using the symbol CULT.


Video StaffVideo StaffJanuary 10, 2020

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Green Market Report is getting closer to its first event focusing on the Investment Opportunities for Psychedelic companies. Psychedelics are gaining attention as a treatment for conditions like drug-resistant depression. We’re super excited to present this Summit on January 24 in New York City. Go to www.greenmarketsummit.com for more details. 

A new Ontario-based limited partnership created to buy cannabis-based real estate businesses called Subversive Real Estate Acquisition REIT closed on its initial public offering by raising $200 million.

Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House have terminated a deal to combine. Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

GrowGeneration Corp. (NASDAQ: GRWG) reported revenue of $80.0 million for the 2019 fiscal year-end, an increase of $51.0 million or 176% versus 2018. The revenue for the fourth quarter of 2019 was $26 million versus $9.1 million for the same time period in 2018.

KushCo Holdings Net revenue increased 38% from last year’s fiscal first quarter to $35.0 million. The net loss was roughly $12.5 million versus last year’s $8.6 million. The company also said it was off to a positive start with the recently launched hemp trading desk, which is on pace to achieve $25 million in revenue for fiscal 2020

Emerald Health Therapeutics, Inc. has agreed to the second tranche of funding for the company for approximately $4.5 million.

Hightimes Holding Corp. told investors that it accepted the resignation of Kraig G. Fox as the Company’s Chief Executive Officer and President Effective December 24, 2019. On January 6, 2020, Stormy Simon, one of the Company’s independent directors and former President of Overstock.com Inc., was appointed to the position of Chief Executive Officer of the company by the board of directors.

Vireo Health International, Inc. (CNSX: VREO)(OTCQX: VREOF) announced that workers at its Maryland MaryMed voted overwhelmingly to ratify a Collective Bargaining Agreement and officially join the ranks of United Food and Commercial Workers Local 27 (UFCW27).

SOL Global Investments Corp.’s  (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with  Goldstream Minerals. CannCure will be called “Bluma Wellness Inc.” with operations in Florida via One Plant Florida which is also known as 3 Boys Farm and in California with premium flower cultivator Northern Emeralds. It’s expected to close on or about March 31.  

Ericka Pittman is officially joining Viola as its new CMO. The new c-suite appointment marks the first hiring of an African American female CMO of a multi-state cannabis operator.


Video StaffVideo StaffJanuary 3, 2020

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The Green Market Report is hosting its first Psychedelic Investing conference on January 24 in New York City, head over to www.greenmarketsummit.com to buy your tickets now. This half-day conference is titled The Economics of Psychedelic Investing and features some of the top emerging companies in this field. Held in the beautiful ballroom of the WeWork space by Bryant Park, investors will learn about this up and coming industry from some of the key players. 

Markets were closed on Wednesday for the New Year holiday, but the dispensaries in Illinois were open. Illinois became the 11th state to legalize the sale of adult-use marijuana.

Green Thumb Industries (GTI)  had four stores open for sales, while Cresco Labs had five stores open for business. Cresco said that it served 3,145 people on New Year’s Day and sold 9,258 cannabis products with an average ticket price totaling $135.

Harvest Health acquired Mjardin’s Cheyenne property in Nevada in a deal valued at $35 million. 

TerrAscend increased its private placement to $30 million from a previously planned $24 million. It will be used to help pay for the Ilera Healthcare acquisition.

1933 Industries Inc. reported first-quarter revenues of $3.9 million, down 26% from its previous quarter, mainly due to the decline in market share for vape and distillate sales in the recreational market in Nevada. The company said that vaping accounts for 25% of cannabis sales in Nevada while the nationwide decline was 15% during the first week of September, at the state level, Nevada saw a drop of 32% in vape sales.

C21 Investments Inc. delivered third-quarter revenue of $10.58 million, a sequential increase of 7.5% over the second quarter and a big jump over last year’s $305,011 for the same time period. The net loss for C21 was $5.1 million for the third quarter.

That’s it for this week. Have a happy new year everyone and let’s look forward to positive things for this year. 


Video StaffVideo StaffDecember 13, 2019

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This week was the 2019 MJBiz conference. This year there are over 1300 exhibitors and 36,000 attendees.

TerrAscend Corp. (CSE: TER) announced its intention to complete a private placement offering. The company plans to offer approximately 10.77 million units of the company at a price of CAD$2.45 per share,  which will generate gross proceeds of US$20 million. the company will use the proceeds of the offering to speed up the completion of its New Jersey cultivation and processing facility and to make a purchase price payment for the acquisition of Ilera Healthcare. 

MedMen executed a term sheet for its non-brokered offering of subordinate voting shares for aggregate gross proceeds of US$27 million at a price per share of US$0.43 with a new strategic investor and an existing investor, Wicklow Capital. Basically Andrew Modlin is granting a limited proxy to Ben Rose, the Executive Chairman of the Board  his Class A Super Voting Shares for a period of one year. The company also agreed to additional cost reductions and amending the maturity date for a term loan. The company is also forecasting 2020 revenue in the range of $225-$245 million and in 2021 a range of $450-$50m. 

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) named David Klein as the company’s Chief Executive Officer effective January 14, 2020. The company said that Klein has served in a number of senior leadership capacities over the past 14 years at Constellation Brands.

Cresco Labs (CSE:CL) (OTCQX:CRLBF) has completed its first harvest from its expanded cultivation facility in Lincoln, IL. The state will begin sales of legal adult-use cannabis on January 1 and is projected to be a $2-4 billion dollar market once it has matured and is expected to be one of the largest cannabis markets in the country.  The company also announced this week that it was going to shore up its balance sheet by selling off one of its properties. Cresco said that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million.

REX Shares (REX) has launched the MJO, the first leveraged exchange-traded product in the U.S. linked to the cannabis industry. MJO is an Exchange-Traded Note (ETN), is linked to MSMJ, the Indxx MicroSectors™ North American Cannabis Index, and will seek to provide 2x leveraged exposure to the Index. 

 

Holistic Industries said it will make a $20 million investment in Madison Heights for its Michigan headquarters. 


Video StaffVideo StaffDecember 6, 2019

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The state of Michigan began sales of adult-use cannabis on Sunday. People waited in long lines in cold weather for a chance to buy recreational marijuana. There weren’t a lot of dispensaries open for the first day, but the state’s regulatory agency said that $221k was spent on Day 1.

Four government agencies teamed up to make a statement regarding banking and hemp growers. The key takeway was that the banks would not need to fill out Suspicious activity reports known as SARS for companies engaged in the growth or cultivation of hemp. The narrow interpretation is that this only applies to farmers, but many in the industry believe it applies to all hemp producers and brands.

Rapper Lil Wayne announced he was launching his own cannabis brand called GKUA. If you were wondering what the initials stand for, it doesn’t stand for anything They just liked the letters.

Sunniva continues to spiral downward. The company is being sued by Matrix Venture who is claiming default on a loan and wants the Okanagan Falls facility as repayment. Sunniva says it will the lawsuit, but it did concede in a filing that it was in default and there is another financial instrument the company is in default on. You may recall, the C-suite has been in great turmoil as the CFO and other departed.

Cresco Labs entered an at the market agreement with Canaccord for C$55 million in shares.

Indus Holdings reported revenue of $10 million for its fiscal third quarter, still, the EBITDA loss was $16 million.

4Front Ventures reported third-quarter revenue of $16 million and a net loss of $7 million.

SOL Global reported a second-quarter net loss of $51 million on no revenues.

Isodiol Reported revenue of $1.8 million for the second quarter, but a net loss of $3.2 million. The company said it would be rebranding and restructuring its product lines.

In stock moves, Willow Biosciences received approval to trade on the Toronto Stock Exchange. The symbol will remain WLLW.

Jushi Holdings received approval to trade on the Canadian Securities Exchange using the symbol JUSH, they will leave the Neo exchange.


Video StaffVideo StaffNovember 22, 2019

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It was a big week in Washington for the industry and I don’t mean the debates or the impeachment hearings. The House Judiciary Committee passed the MORE Act, which is legislation to remove cannabis from the controlled substances act and decriminalize it. It will also remove prior and pending marijuana convictions. The next step would be for the legislation to go to a full house vote and then on to the senate. After that, it would still need to be signed by the president. It’s the most comprehensive cannabis reform bills introduced in Congress.

We started the week absorbing the news released after the market close on Friday that MedMen was slashing its ranks and scaling back its expansion plans. 190 employees got pink slips and the company is selling off its assets.

It was another big week for earnings. We’re just going to hit the high notes here.

Trulieve announced Q3 revenue of $70 million which beat estimates and a nice net income of $57 million.

Green Thumb Industries reported third-quarter revenue of $68 million, but a net loss of $17 million.

Harvest Health delivered revenue of $33 million for its third quarter, but a net loss of $39 million.

Beleaguered TILT Holdings turned a corner and delivered net income for the quarter of $26 million on revenue of $46 million.

iAnthus delivered $22 million in revenue, but also a net loss of $15 million.

Aurora Cannabis reported a drop in revenue and said it suspended construction at two of its largest greenhouses.

HEXO reported that it was growing plants in unlicensed rooms, but unlike CannTrust, Health Canada said they were okay with the company’s actions.

And Sunniva took a big hit as the company’s president resigned, just one week after the CFO quit.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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