It’s time for your Daily Hit of cannabis financial news for July 2, 2018.
July 1 was an auspicious day in the cannabis industry. It was the first day for recreational sales in Masssachusetts (kindof), the first day for limited recreational sales in Vermont and the day for compliance in California.
Massachusetts may have legalized adult-use cannabis, but the state didn’t license anyone to sell it. The state also hasn’t licensed any labs to test the recreational product. Thus, no sales took place. Best case scenario, it may be fall before real sales begin.
Retail sales of cannabis are still illegal, but consumers over 21 can legally consume and grow two mature plants. Just don’t tell anyone where you got that cannabis.
Dispensaries began dumping product last week as many of the items were not compliant with the new laws. For example, MedMen was running a 70% off promotion. Product shortages and higher prices are expected. Even the child-resistant packages seem to be in short supply. Too bad no one saw this coming.
Flow Kana announced the completion of a $22 million round of financing, led by a $15 million investment from Gotham Green Partners, a New York-based private equity firm that invests in cannabis and cannabis-related enterprises on a global scale. With other institutional investors including Poseidon Asset Management, Salveo Capital and notable angel investors including Roger McNamee, Flow Kana has raised a total of $50 million to date to build and scale a first-of-its-kind cannabis supply chain centered around small craft cannabis farms in Northern California.
The Green Organic Dutchman
The Green Organic Dutchman Holdings Ltd. (OTC:TGODF) CEO, Co-Chairman & Director, Mr. Robert Anderson resigned effective immediately, due to health concerns. The Board has appointed Mr. Brian Athaide, TGOD’s current CFO, to the position of CEO. According to the company statement, Mr. Athaide has 29 years of global executive experience including CFO and Executive Vice President, Human Resources and Information Technology of Andrew Peller Limited, the largest publicly traded wine and craft alcohol producer in Canada. Mr. Athaide’s focus on value creation helped enable the stock price to increase to 400% in only three years. Previous to Andrew Peller Limited, Mr. Athaide spent 25 years at Proctor & Gamble Co., moving through progressively more senior positions across eight countries, culminating as the Finance Director and CFO of the multi-billion-dollar consumer products business across Russia, Ukraine and Central Asian markets.
The Board has also appointed Julia Golubovskaya, Vice-President, Finance as interim CFO. Ms. Golubovskaya has over 18 years of experience in consumer products, having worked with Proctor & Gamble in Canada, the USA and Russia.
Item 9 Labs Corp.
Item 9 Labs Corp. (INLB) announced that Sara Gullickson has been appointed as president of Item 9 Labs. Through the development of innovative lifestyle products and proprietary delivery platforms, Gullickson will oversee Item 9 Labs Licensing Application and Acquisition Strategy.
Named one of the Top Ten Cannabis Entrepreneurs in the nation by Herb Magazine, Gullickson is an internationally recognized industry expert. Founder and CEO of Dispensary Permits, Gullickson brings over 8 years of experience in executive level roles. She will lead overall compliance, distribution and quality control for cultivation and production, and development of aggressive growth strategies with Bryce Skalla, CEO of Item 9 Labs.
Green Spirit Industries Inc.
Green Spirit Industries Inc. (GSRX) commenced construction on a new Green Spirit RX medicinal cannabis dispensary in Puerto Rico. Located in the Isla Verde district of Carolina, this is the location for which the Company has received pre-qualification for a dispensary license from the Department of Health of Puerto Rico. Following construction and inspection, operations will commence upon receipt of the required operating permit from the DHPR.
Mary’s Medicinals (Mary’s) revealed a refined set of branding including a new logo, tagline, brand mission and product packaging. The rebrand was spearheaded by New York-based agency Studio7 and Detroit-based Standout Solutions. Starting July 2 in Colorado, consumers will see Mary’s new product packaging hit dispensary shelves. Additional states will roll out the new look over the course of the next two months.