John SchroyerDecember 22, 2022
International sales are expected to grow under the combination.
MediPharm Labs Archives - Green Market Report
John SchroyerDecember 22, 2022
StaffNovember 14, 2022
The Daily Hit is a recap of cannabis business news for Nov. 14, 2022.
ON THE SITE
Moxie Cannabis & High Times Have a Lot in Common
It seems High Times and the company it just bought, Moxie Holdings, have a lot in common. Both companies failed to go public as planned, and both have not paid their debts. MXY Holdings and High Times also share the same auditor of company financials, GreenGrowth CPAs. Read more here.
Kansas City Entertainment District Takes New Approach to Cannabis Consumption Lounges
The news of a new entertainment district in the Kansas City metro area – which is slated to include cannabis consumption areas when it opens for business next year – appears to be part of both the ongoing normalization of marijuana use across the U.S. and an evolution of a business model that has struggled to find its footing. Read more here.
Verano Delivers Solid Quarter as Expansion Continues
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its financial results for the third quarter ending September 30, 2022, as revenue increased 2% sequentially and 10% year-over-year to $228 million. Verano attributed the revenue growth to strength from adult use sales in New Jersey. Read more here.
MediPharm to Cut 30% of Non-Manufacturing Staff after 3Q Losses
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) is poised to cut its non-manufacturing staff head count by 30% after another losing quarter, which saw the Ontario-based company shed another $5.9 million (C$7.9 million), according to the company’s Q3 report. Read more here.
More earnings announcements:
- Auxly Faces Rising Losses Amid Cash Crunch
- Despite Revenue Uptick, Columbia Care Posts $38M Loss for Q3
- Goodness Growth Posts Strong Sales, Increased Expenses
- Alcohol Sales Pump Up SNDL Profits, Nova Adds Margins
- TerrAscend Misses on Revenue, Posts $300M Loss in Q3
- Tilt’s Revenues Drop, Guidance Lowered
IN OTHER NEWS
Safe Harbor Financial
Third-quarter revenue for Safe Harbor Financial increased 38.6% to $2.38 million for the three-months ended Sept. 30, 2022, compared to $1.72 million for the third quarter of 2021. Loan interest revenue shot up 1,400% with nearly 700 accounts placed with the financial services company. Read more here.
Curaleaf Holdings
Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) announced the national rebrand of its Grassroots premium cannabis flower brand and shared details on the brand’s previously announced expansion into California with the launch of Diamond Infused Pre-Rolls. Read more here.
Unrivaled Brands
During the three months ended Sept. 30, 2022, Unrivaled Brands generated revenue from continuing operations of $10.76 million composed of retail revenue of $8.77 million and cultivation/distribution revenue of $2 million. Read more here.
John SchroyerNovember 14, 2022
The restructuring plan is designed to save the company up to $2.2 million.
StaffJuly 11, 2022
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) is selling its MediPharm Labs Australia Pty Ltd to OneLife Botanicals PTY in a deal valued at $6.9M AUD ($6.2M CAD). The transaction is expected to close within 90 days. The deal includes the assets of MPLA, specialized licensing, operational knowledge, and Australian and New Zealand customers currently served from that facility. All international contracts outside of Australia and New Zealand will remain with MediPharm Labs and be serviced from the Barrie GMP facility.
“This sale represents a major milestone for MediPharm Labs as it continues to focus on rightsizing the business to achieve profitability,” said David Pidduck, CEO of MediPharm Labs. “As we look to maintain our strong cash balance, this transaction paired with corporate restructuring completed in June 2022 should allow us to reduce our quarterly burn rate as we improve sales.”
In July 2021, MediPharm Labs was the first purpose-built cannabis facility to receive a pharmaceutical Drug Establishment License. Awarded by Health Canada, this license is recognized in over 50 countries as part of the Pharmaceutical Inspection Co-operation Scheme (PIC/S). At this time, the company said it has completed a review of its international manufacturing platform and identified significant potential savings in moving all domestic and international manufacturing to the Canadian facility.
OneLife Botanicals CEO Andrew Grant said, “This purchase aligns and expedites the strategic aim of our organization to produce high-quality medicinal cannabis products by integrating manufacturing into the end-to-end supply chain. The integration of a fully operational facility brings forward our objectives to take our products and brand to the market. Our company undertook extensive research in considering this important acquisition and is highly confident about the capabilities and capacity of the operation to manufacture products in accordance with all compliance and quality standards. The integration of this business with our existing cultivation facility facilitates savings in capital investment, access to operational efficiencies and establishes us as a significant supplier in the Australian medicinal cannabis industry. We intend to build on the existing customer base and develop additional product distribution opportunities to become a formidable participant in the market.”
MediPharm and OneLife Botanicals said they will also enter into a transition services agreement to allow for the two companies to smoothly transition products and services produced in the facility, and to work together on future commercial opportunities.
StaffNovember 15, 2021
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) announced its financial results for the quarter ending September 30, 2021 and said it has a new CEO as the company focuses on international business. Bryan Howcroft is the new CEO for MediPharm who plans to drive international and pharmaceutical sales growth.
Revenue increased slightly from $5 million in the second quarter to $5.4 million in the third quarter. International sales increased 16.5% sequentially to $2.9 million and represented 53% of sales in Q3. The net loss for the quarter was $7.3 million
“In Q3 2021, we were awarded one of the most important licences in our Company’s history related to North American GMP certifications, the DEL. The DEL establishes the Company as a true pharmaceutical partner while continuing to deliver on our international medical cannabis sales,” said Keith Strachan, President, MediPharm. “We increased our international medical presence and sales by 16.5% q/q, which is a testament to our efforts to lead in this area. We view the international medical cannabis market to be a key driver of our future revenue growth. We also continue to innovate in new product development, with minor cannabinoids such as CBN, as well as our clinical trial program.”
“Looking ahead, efforts are well underway to ensure MediPharm maintains a leading position in the projected multibillion-dollar global cannabinoid-derived pharmaceuticals and international medical markets. This is where our unique licenses and professional expertise will make us the go-to partner for pharmaceutical companies around the globe with potential for material revenue growth for years to come.” To this end, we are delighted to welcome our new CEO to MediPharm, effective today, Mr. Bryan Howcroft. Mr. Howcroft’s deep expertise in navigating complex regulated international markets will enable MediPharm’s transition towards pharmaceutical and medical markets to reach new heights.
Cash and cash equivalents totaled $38 million on September 30, 2021, and the cash balance outstanding under the convertible notes was under $1.9 million.
Debra BorchardtNovember 5, 2019Cannabis extraction company MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) said it has filed an application to list its common shares on the NASDAQ Stock Market (NDAQ). The company said it will continue to maintain the listing of its common shares on the Toronto Stock Exchange under the symbol “LABS”.
“We are thrilled to be entering the next phase of growth at MediPharm Labs including cross-listing on the NASDAQ, one of the world’s foremost exchanges for emerging markets and technology, such as the burgeoning cannabis sector,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “Listing alongside our peers on the NASDAQ will enhance our visibility and access to a larger base of institutional and retail shareholders in the U.S. and globally.”
Last month, the company said it secured a $38.7 million credit facility from a top 5 Canadian Schedule 1 bank. Although the company initially sought $20 million, the credit facility was upsized and is comprised of a revolving term facility, a non-revolving term facility, and a non-revolving delayed draw term facility. In June, the company closed its previously announced bought deal offering of 13,514,000 common shares in the capital of the company at a price of $5.55 per common share for aggregate gross proceeds of C$75 million. The stock was lately trading at C$4.53.
“With the successful upsizing of our Credit Facility and the proceeds from our recent $75 million bought deal equity offering, we have strengthened our balance sheet and our ability to execute our global business plan to efficiently seize the growth opportunities before us,” said Pat McCutcheon, CEO of MediPharm Labs. “In particular, this enlarged facility will enhance liquidity and support the delivery of our stated Canadian and Australian capex strategy, to ramp-up of production capacity to meet contracted and expected demand for our new product classes.
In advance of its anticipated listing on the NASDAQ, MediPharm Labs will file a Form 40-F Registration Statement with the United States Securities and Exchange Commission (SEC).
The listing of its common shares on the NASDAQ remains subject to the approval of the NASDAQ and the satisfaction of all applicable listing and regulatory requirements, including the SEC declaring the Form 40-F Registration Statement effective.
William SumnerOctober 10, 2019
It’s time for your Daily Hit of cannabis financial news for October 10, 2019.
On the Site
Nevada Marijuana Licenses Makes Appearance In Russian Campaign Violation Arrest
The two Russian nationals that were arrested on Thursday for campaign finance violations also tried to apply for marijuana licenses in Nevada according to the arrest allegations. The document said that Lev Parnas, Igor Furman, David Correia and Andrey Kukushkin “planned to use Foreign National-1 as a source of funding for donations and contributions to State and federal candidates and politicians in Nevada, New York and other states to facilitate acquisitions of retail marijuana licenses.”
HEXO Corp.
HEXO Corp. (TSX: HEXO)(NYSE: HEXO) stock was plunging almost 20% as the company told Wall Street that its revenues would be lower than expected. The company said in a statement that it now expects net revenue for the fourth quarter to be approximately $14.5 million to $16.5 million and net revenue for the year to be approximately $46.5 million to $48.5 million.” This is a far cry from the company’s claim in June that it was on track to reach $400 million in net revenue in 2020 and said it would double net revenue in the fourth fiscal quarter.
MediPharm Labs
MediPharm Labs Inc., a wholly-owned subsidiary of MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF), has secured a $38.7 million credit facility from a top 5 Canadian Schedule 1 bank. Although the company initially sought $20 million, the credit facility was upsized and is comprised of a revolving term facility, a non-revolving term facility and a non-revolving delayed draw term facility.
In Other News
Village Farms International
Village Farms International, Inc. (TSX: VFF) (NASDAQ: VFF) announced that a group of underwriters co-led by Beacon Securities Limited and GMP Securities L.P. have agreed to purchase, on a bought deal basis, 2,660,000 common shares of the company at a price of C$9.40 per share. The total value of the offering is approximately C$25 million. Pending regulatory approval, the offering is expected to close on or around October 22, 2019. The net proceeds of the offering will go towards working capital and general corporate purposes.
Canopy Growth
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced that David Klein has been appointed Chair of its Board of Directors effective immediately. Klein is currently the Executive Vice President and Chief Financial Officer of Constellation Brands, Inc. “There is no company better positioned to win in the emerging global cannabis market. I look forward to continuing to work with Canopy Growth’s very talented leadership team to position the company for long-term, industry-leading profitable growth,” Klein said in a statement.
Cannara Biotech
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has secured a first mortgage against its Farnham Facility, valued at $6 million, with the Canadian Imperial Bank of Commerce. The mortgage will help reduce the company’s debt service costs. “Once Cannara’s cultivation and sales licenses are granted we’ll look to augment this mortgage to further reduce our debt service costs,” commented Zohar Krivorot, President and CEO of Cannara.
William SumnerOctober 10, 2019
MediPharm Labs Inc., a wholly-owned subsidiary of MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF), has secured a $38.7 million credit facility from a top 5 Canadian Schedule 1 bank. Although the company initially sought $20 million, the credit facility was upsized and is comprised of a revolving term facility, a non-revolving term facility and a non-revolving delayed draw term facility.
“With the successful upsizing of our Credit Facility and the proceeds from our recent $75 million bought deal equity offering, we have strengthened our balance sheet and our ability to execute our global business plan to efficiently seize the growth opportunities before us,” said Pat McCutcheon, CEO of MediPharm Labs. “In particular, this enlarged facility will enhance liquidity and support the delivery of our stated Canadian and Australian capex strategy, to ramp up of production capacity to meet contracted and expected demand for our new product classes.”
The revolving term facility is for up to $25 million and has a one year term. The $25 million can be drawn in either Canadian or Australian dollars and is meant to be used for Canadian and Australian working capital.
Over the last several months the company has been making strides in expanding its international footprint. Last week, MediPharm Labs announced that it had increased its export of medical cannabis concentrates to Australia by 137% and that it had signed a private sales agreement with the German pharmaceutical company ADREXpharma.
The three-year term non-revolving term facility, which totals approximately $5.7 million, was fully drawn upon closing and was used to refinance and reduce the interest expense of an existing mortgage. The non-revolving delayed draw term facility of up to $8 million will be used for capital expenses and has a term of three years. The credit facility will have an interest rate set at the yet-unnamed bank’s prime lending rate plus a certain amount determined by MediPharm’s debt to EBITDA ratio.
William SumnerSeptember 25, 2019It’s time for your Daily Hit of cannabis financial news for September 25, 2019.
On the Site
WeedMD
WeedMD Inc. (TSX-V: WMD) (OTCQX: WDDMF) has closed its previously-announced bought-deal short-form prospectus offering of convertible debenture units at a price of $1,000 per Convertible Debenture Unit for aggregate gross proceeds of $13,115,000, which includes proceeds from the over-allotment option. The Offering for WeedMD was led by Mackie Research Capital Corporation and included Haywood Securities Inc.
Developing An Authentic Celebrity Cannabis Brand
Many celebrities are joining the cannabis industry. Some are involved in the critical details, while others just license their name. Hear from Grammy award-winning Melissa Etheridge of Etheridge farms as she joins a panel to discuss this topic. Kevin Bell, the COO of Tyson Ranch (Mike Tyson) and Jason Rhude, Founder of Ronin Content Services also weighs in, along with cannabis consultant company MMLG’s CEO Aaron Lachant.
In Other News
MediPharm Labs
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) announced that it has entered into a multi-year supply agreement with TerrAscend Canada Inc. Under the agreement, MediPharm will supply TerrAscend with $27 million of cannabis distillate over a course of two years. The agreement is subject to certain renewal and purchase options, potentially up to $192 million over 36-months to September 2022. “As Canada prepares for the next stage of legalization, we are thrilled to be collaborating with a leading global company like TerrAscend focused on creating new and innovative product formulations and brands that enhance the consumer experience,” said Patrick McCutcheon, MediPharm Labs CEO.
GW Pharmaceuticals
GW Pharmaceuticals plc (Nasdaq: GWPH) announced that its flagship drug, Epidyolex, has been approved by the European Commission for use as adjunctive therapy of seizures associated with Lennox‑Gastaut syndrome (LGS) or Dravet syndrome, in conjunction with clobazam, for patients 2 years of age and older. The regulatory path is now clear for GW to start selling Epidyolex in European markets. “The approval of EPIDYOLEX® marks a significant milestone, offering patients and their families the first in a new class of epilepsy medicines and the first and only EMA-approved CBD medicine to treat two severe and life-threatening forms of childhood-onset epilepsy,” said GW CEO Justin Gover.
William SumnerJuly 18, 2019It’s time for your Daily Hit of cannabis financial news for July 18, 2019.
On the Site
Aurora Cannabis
Italy has chosen Canadian-based Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) as the sole winner of the Italian government’s public tender to supply medical cannabis in Italy. The contract is expected to be signed in September 2019… It will be a two-year contract in which Aurora will provide 400 kg of medical marijuana from its Canadian facilities.
5 Ways To Fix The California Cannabis Market
While it would be wonderful to have the luxury of starting over again, rebooting is not an option for California. The past cannot be changed. Those who are interested in addressing the chaos in the regulation of California’s cannabis industry must go forward from where we are today.
In Other News
Neptune Wellness Solutions
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced that it has closed a private placement offering of 9,415,910 common shares of the company, at a price of $4.40 per share, for $41.4 million. The offering was led by Perceptive Advisors. The proceeds of the offering will go towards working capital, general corporate purposes, and the acquisition of the assets of SugarLeaf Labs LLC and Forest Remedies LLC. The SugarLeaf acquisition is expected to close on or around July 31, 2019.
MediPharm Labs
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) announced that it has received conditional approval to trade it shares on the Toronto Venture Exchange and list its common shares on the TSX under the symbol “LABS”. “We are thrilled to have qualified to uplist to the TSX. This is an important step for the MediPharm Labs team and our shareholders,” said MediPharm Labs CEO, Patrick McCutcheon.
Origin House
Origin House (CSE: OH) (OTCQX: ORHOF) announced that its preliminary unaudited revenue for the second quarter, ending on June 30, 2019, was $21 million, representing an approximate gross margin, excluding fair value items, of 17%. The company plans on releasing its full financial results for the quarter during the second half of August. “Origin House has continued to gain momentum as our team leveraged the California-focused platform we have built over the past two years to drive another quarter of record revenue along with steady progress on gross margin. As expressed previously, we strongly believe that 2019 will mark an inflection point both for the California market and Origin House as a whole and the numbers are proving this out,” said Marc Lustig, Chairman and CEO of Origin House.
Akerna Corp.
Akerna Corp. (Nasdaq: KERN) announced today that it has partnered with Leafly to integrate its seed-to-sale compliance software, MJ Platform, with Leafly.com. With the integration, MJ Platform users will be able to view their inventory and menus automatically update on Leafly. “MJ Platform is the cannabis industry’s first ERP software and through partnerships, such as the one with Leafly, we provide a leading compliance, technology platform across the entire supply chain that connects almost every data point,” said Akerna CEO, Jessica Billingsley. “The partnership with Leafly provides a seamless integration for MJ Platform users, which is good business practice as it eliminates manual updates and delayed information.”
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