MJardin Archives - Green Market Report

StaffJuly 12, 2021
MJardin2.png?fit=1000%2C531&ssl=1

3min7730

 MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) said that it has decided to suspend construction and certain business activities at the company’s Warman facility effective July 12, 2021. Additionally,  MJardin said in a statement that it has launched a Sales and Investment Solicitation Process related to the company, and all its Canadian and US assets.

Warman Suspension

In April, MJardin said it was exploring financing options for the construction of Phase 2 of the Warman Facility, which is a cultivation facility in Winnipeg, Manitoba. At that time, MJardin said that COVID-19 had caused bans on all council meetings for Peguis, which has halted discussions regarding the potential joint venture. Construction activities at the Warman Facility were limited during most of 2020. The facility was presently being used primarily as a research facility for the development of new phenotypes.

Now the company said it is placing Warman into care and maintenance until further notice. “The company will keep the facility’s Health Canada licensing in place and retains the option, at the company’s sole discretion, to take the facility out of care and maintenance or if circumstances require, completely shut down Warman. The suspension of ongoing construction and certain business activities at Warman required the company to terminate seventeen (17) employees in Canada and the United States and will enable the company to preserve cash flow while it facilitates the SISP. The Company remains in constant dialogue with its business partners at Warman, as it works to identify potential transactions in respect of the Facility.”

SISP Process

Also back in April, the company created a special committee to explore, review and evaluate a broad range of strategic alternatives for the company due to its limited capital resources with a view to identifying a transaction that is in the best interests of shareholders. The Special Committee has recommended that MJardin conduct a formal, wide-ranging SISP in order to identify all potential options to maximize value for all of the company’s stakeholders. In response,  MJardin said it is seeking expressions of interest, in any combination, in respect of the company, its assets, and the company’s CSE listing.


Debra BorchardtApril 30, 2021
MJardin.jpg?fit=960%2C640&ssl=1

4min13200

MJardin Group, Inc. (OTCQX: MJARF)  announced its financial and operating results for its fourth quarter and fiscal year ended December 31, 2020. MJardin also announced it was considering strategic alternatives due to its limited financing.

The company delivered revenue of $2.2 million in the fourth quarter of 2020 versus $1.3 million for the same time period in 2019. The net losses were trimmed in the quarter to $21.4 million from last year’s net loss of $234 million for the same quarter in 2019. The company also said that it was switching from being a wholesaler to a retail only business.

MJardin reported revenue of $11.4 million for the full year 2020, which was a big drop from last year’s net revenue of $26.7 million in 2019. The net losses were trimmed in 2020 to $34.8 million versus 2019’s net loss of $267.5 million. The company said this included a $16.0 million impairment related to intangibles and PP&E in 2020 and $191.7 million impairment related to goodwill, intangibles, and PP&E in 2019.

“2020 was a challenging year for all in our business as we were forced to rapidly adapt to changing circumstances due to COVID-19 and its impact on both our staffing and construction timelines,” said Pat Witcher, MJardin’s CEO. “I am very proud of how the team at MJardin performed, and as of the fourth quarter of 2020, MJardin’s assets in Ontario are fully populated and operating at run-rate. As we move into 2021, I look forward to the continued development of our partnership with ROBES as well as the roll-out of our consumer-facing brand, Flint & Embers.”

Strategic Alternatives

The Board of Directors said it has formed a special committee to explore, review and evaluate a broad range of strategic alternatives for the company due to its limited capital resources with a view to identifying a transaction that is in the best interests of shareholders. These alternatives may include continuing as a standalone public company, going private, undertaking a recapitalization or other restructuring transaction, or being purchased by a strategic partner.

Since the end of the quarter, MJardin announced the completion of a major supply agreement with the BCLDB to supply the British Colombia provincial wholesaler with products for the retail market under MJardin’s Flint & Embers brand. The company also announced the completion of a major supply agreement with the AGLC to supply the Alberta provincial wholesaler with products for the retail market under MJardin’s Flint & Embers brand. Finally, MJardin agreed to an early settlement of the previously disclosed final payment from Harvest Health & Recreation for the purchase of the Cheyenne facility located in Las Vegas, Nevada.


StaffNovember 5, 2020
MJardin.jpg?fit=960%2C640&ssl=1

3min8131

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported revenue of $4.8 for its third-quarter ending September 30, 2020. This was lower than the $7.6 million in revenue that the company delivered in the 2019 third quarter. The net income for the quarter was $7.2 million All amounts are expressed in Canadian dollars unless otherwise indicated.

The company noted that its operating expenses were $6.7 million the quarter leading to a loss on operations of $4.2 million. This was higher than the $3.6 million in operational losses for the 2019 third quarter.  The general and administrative expenses of $3.7 million were higher than last year’s $3.0 million for the same period and mostly due to increased professional services expenses in Q3 2020. MJardin said it has been able to grow a new fifth strain testing at 24% THC on behalf of Robes at its WILL facility and that all harvests out of the WILL and GRO facilities have passed HC microbial testing without the use of irradiation treatment.

Fourth Quarter

MJardin said it plans on delivering the following in the fourth-quarter:

  • complete run-rate production at the WILL facility;
  • retail sales of cannabis produced at Canadian facilities; and
  • full licensing of the AMI facility’s Phase II expansion.

The company said it plans to continue to increase the production from its Canadian assets and intends to continue doing so for the balance of the year. At the same time, the company said it plans to continue focusing on securing offtake for production via either firm commitments with retailers or supply agreements with leading license holders.

Last month, MJardin entered into a master service agreement with the OCS. This agreement immediately enables MJardin to make its product available to retail consumers in Ontario. It is an important step in MJardin’s evolution from a pure-play cultivator to a consumer-centric company, servicing the needs of retail consumers, in-line with the Company’s 2020 strategic plan. As a result, the company said it expects increased revenues from the same flower production, given the higher realized price per gram at the retail sales level, and expects to gain market recognition and consumer brand awareness from products sold under the Flint and Embers banner. The company said it anticipates its first sale to the OCS will occur in the fourth quarter of 2020.


Debra BorchardtAugust 6, 2020
MJardin.jpg?fit=960%2C640&ssl=1

3min10800

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) reported second-quarter revenue declined to $2.1 million from last year’s restated revenue of $6.8 million for the same time period. Net losses also increased to $12.4 million from last year’s net losses of $6.1 million. The company’s gross margin fell to $850,000 from last year’s $3.6 million, which MJardin attributed to the reduction in revenues from both the managed services and cultivation segments.

“While we still have a lot of work to get done to achieve our growth objectives, I am very pleased with the results of our team’s efforts, which have now resulted in a second consecutive quarter of stabilized operations, improved visibility into the future and ultimately better financial performance,” commented Pat Witcher, CEO of MJardin. “We are pursuing growth opportunities through sensible partnerships whereby our expertise and track record can contribute to growth and profitability without the need for additional capital. We continue to run a lean and extremely efficient business to manage margins and overall costs, while focusing our corporate development team’s efforts on creative growth strategies.”

AtlantiCann Medical

The company’s AtlantiCann Medical Inc. or AMI joint venture contributed $1.3 million to earnings, which was an increase of ~330% from the prior quarter, Unfortunately, that good news is short-lived because MJardin noted that on August 5, 2020, AMI bought out the previously signed master service agreement, which had been a ten-year term that was executed in 2019. MJardin said it will receive $2 million from AMI within the next 45 days in lieu of ongoing license fee payments. The company said its cultivation management support for the AMI operation has been substantially reduced in connection with the buyout and is expected to be completed by the end of 2020.

Second Half Plans

MJardin said it continues to advance the production from its Canadian assets and plans to continue doing so for the balance of the year. At the same time, the company plans to continue focusing on securing offtake for production via either firm commitments with retailers or supply agreements with leading license holders. In a statement, MJardin laid out the following plans:

  • Complete run-rate production at WILL and GRO facilities by the end of Q3;
  • Retail sales of products produced at Canadian facilities in H2 2020;
  • Full licensing of AMI Phase II expansion by/during the Q4;
  • Significant progress on completion of construction at the Warman facility;
  • Continued pursuit of expansion opportunities in select US States.

 


StaffJuly 14, 2020
MJardin.jpg?fit=960%2C640&ssl=1

3min9100

MJardin Group, Inc.  (OTCQX: MJARF) reported first-quarter revenue dropped to $2.2 million versus last year’s revenue of $10.7 million for the same time period in 2019. The company also delivered a net loss of $8.1 million, which was lower than last year’s first-quarter loss of $14.8 million (all figures in Canadian dollars).

”During the first quarter we remained focused on the completion of our cultivation assets as we continue to push aggressively towards being prepared to penetrate the Canadian recreational market with our products, and ramping up revenues starting in the second half of 2020,” commented Pat Witcher, CEO of MJardin. “I am very encouraged with the progress our team is making with bringing our assets online as well as exploring strategic growth opportunities which could start contributing to our profitability in the foreseeable future.”

MJardin said that its Managed Services business generated $2.2 million in revenue during the quarter. The Canadian cultivation facilities were currently mid-way through the growing cycle and so no revenue was recognized at these facilities during the first quarter. The company did say that it was in advanced negotiations for a supply agreement with a major Canadian License Holder to sell approximately an incremental 2,000 kilograms of product.

While the gross margins fell to $0.4 million versus $4.1 million for the prior year comparable period, expenses dropped by 43%.  MJardin said it would continue to look for more ways to cut costs. 

Looking Ahead

The company said it has the following plans for 2020 and that they are on track:

  • Complete run-rate production at WILL and GRO facilities by the end of the third quarter
  • Retail sales of Canadian production by the end of the third quarter
  • Full licensing of AMI Phase II expansion by during the fourth quarter
  • Significant progress on completion of construction at the Warman facility
  • Continued pursuit of expansion opportunities in selected US States


Debra BorchardtJune 15, 2020
MJardin2.png?fit=1000%2C531&ssl=1

4min14230

MJardin Group, Inc.  (OTCQX: MJARF) reported results for its fourth quarter and fiscal year ending December 31, 2019, with revenue falling to $26.7 million versus $27.5 million in 2018. In addition to the drop in revenue, MJardin delivered a 2019 net loss of $267.5 million versus $81.4 million in 2018. This loss included a $207 million impairment related to  goodwill, intangibles, PP&E and a principal promissory note in 2019 and $21 million in 2018

“When I stepped into the role of CEO, MJardin was in a state of transition. Since I have endeavored to place this business on a strong footing to succeed going forward, by narrowing the focus of operations and doubling-down on our core competencies, namely, the cultivation of high-quality and high THC cannabis,” said Pat Witcher, CEO of MJardin Group, Inc. “With construction completed at the majority of the Canadian facilities and right-sized operations, we are well-positioned to focus on a strong entry to the Canadian recreational market in the second half of 2020 and turn the corner as a business.”

The company scaled back most of its U.S. commitments as it terminated the Cannabella acquisition and sold GreenMart of Nevada.  The company said that it still sees the United States as a desirable growth market and will continue to pursue strategic joint ventures, acquisitions, or consulting arrangements in select States on a case-by-case basis. The company has $146 million in total debt and the sale of the GreenMart business, also called Cheyenne, will contribute $30 million towards that debt. Harvest Health & Recreation purchased the business from MJardin.

“For the past six months, I have been focused on addressing and ultimately improving the Company’s internal processes and financial reporting. Now that the Company has unwound historically unprofitable commitments, I will continue to focus on increasing transparency to our investors while working with Pat to continue stabilizing our operations and positioning MJardin for growth as we push forward towards delivering on the promise and value of our current asset base,” said Edward Jonasson, CFO of MJardin Group Inc.

Looking Ahead

MJardin said it will focus on its high THC high yielding flower to position the company well for entry into the recreational market in Canada during the second half of 2020.  Construction has been completed on the Brampton Ontario (WILL) facility and 10 of the 12 flower rooms have now been licensed by Health Canada. The company said it expects to receive licenses for the remaining two flower rooms imminently. This expansion is expected to result in run-rate production of 3,000 KG per year at the WILL facility during the third quarter of 2020.

Phase 1 of the Cultivation Facility in Lower Sackville, Nova Scotia facility (AMI) operated through a three-way joint-venture between the Nova Scotia Mi’kmaq First Nations (51%), MJardin (39%) and the Halef Group (10%) is fully operational with a run rate production of 3,500 KG per year. During 2019, construction was completed on the Phase 2 expansion, bringing on an additional 2,800 KG per year of capacity with licensing and run-rate production expected by the fourth quarter of 2020.


Debra BorchardtMarch 31, 2020
MJardin.jpg?fit=960%2C640&ssl=1

3min14960

 MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) decided to terminate its previously announced joint venture partnership with Rama First Nation that included prospective plans for a cultivation facility. The company said that the announcement was part of its ongoing review, evaluation and turnaround process and that it has actioned amendments to the Managed Services Agreements (“MSAs”) which were negotiated and put in place by previous management.

“I have nothing but great respect and admiration for our Rama First Nation partners, but I have to make these difficult business decisions in an effort to allocate capital where it makes the most sense while ensuring that we don’t take on more debt until we have successfully turned this business around,” said Pat Witcher, CEO of MJardin Group. “This decision, along with restructuring our pre-existing MSAs to remove the burdensome management costs we were incurring is in the best interest of the Company and all of its stakeholders.”

The decision to dissolve the joint venture partnership with Rama First Nation, and its prospective 94,000 sq. ft. indoor greenhouse cultivation facility was based on fiscal responsibility, preservation of capital and developments in the cannabis cultivation market in Canada.

MSAs

In addition to that the company stated that it has agreed to amend, terminate and extend its MSAs with Potco, LLC & Potco South, LLC, Next1 Labs, LLC, Next1 Labs South, LLC, and Gravitas Henderson, LLC dba F&L Warm Springs, LLC to December 31, 2020. However, it wasn’t clear from the press release which companies were amended or terminated.

MJardin did say that in final stage discussions to extend the MSA with Lightshade Labs, LLC for a period of 14-months. The company said it is also finalizing its renegotiation of its MSA with AtlantiCann Medical Inc. and that MJardin will earn a royalty for the balance of the existing 10-year agreement, but will no longer provide labor support to the operation.

The company stated that the amended MSAs will provide a streamlined royalty fee structure which will allow for the monetization of the company’s intellectual property and proprietary cultivation methodologies. In addition, the amendments will reduce ongoing management obligations, thus reducing costs and placing less cash flow demands on the Company.

 

 

 


Debra BorchardtJanuary 2, 2020
Harvest.jpg?fit=1200%2C800&ssl=1

3min15940

Harvest Health & Recreation Inc. (CSE: HARV)(OTCQX: HRVSF) is buying MJardin’s (OTC: MJARF) 32,000 square foot cultivation facility in Cheyenne, Nevada in a transaction valued at $35 million. Harvest Health said it was being financed by an existing Harvest lender. The company said that $30 million was funded on December 31st with the remaining $5 million to be paid when the deal is closed.

“We expect this opportunistic acquisition to support our expanding retail asset base in Nevada and afford higher margins and profitability through vertical integration with some of our pending acquisitions in the state,” said Harvest CEO Steve White. Harvest sees the deal as a way to help it reach profitability quicker. For MJardin, it had just begun making revenue on its Cheyenne property, while Colorado continues to be its biggest source of revenue.

“We are pleased with the return on our investment at Cheyenne. The proceeds from the Transaction significantly reduce our debt while strengthening our financial position towards funding our working capital requirements in 2020,” said Pat Witcher, President, and CEO of MJardin. “We are starting the new year on a stronger footing with a clear view of accomplishing our profitability targets based on all of our key assets coming online.”

In November, the company reported revenue of $7.6 million and a net loss of $3.6 million in the second quarter. At the time Witcher said, “We further reduced SG&A and have decreased those costs by 45% compared to Q2 2019. This allows us to focus on and effectively allocate resources to developing our product lines within Health Canada’s upcoming regulations around extraction, edibles, and topicals. We continue to invest in these business lines on both sides of the border. Responsible deployment of capital to maximize shareholder value remains our top priority as we grow our operational footprint with accelerated revenue growth.”

MJardin took on corporate cost-cutting measures late in the first quarter of 2019 and the company said the resulting expected annual SG&A and payroll expense run rate was expected to be approximately $12.1 million. On May 29, 2019, MJardin said it amended the terms of its existing loan with the senior lender to remove the callable feature and convert it into a term loan, this enabled MJardin to simplify the Company’s capital structure and fully focus on executing the operational plan.

 


William SumnerMay 30, 2019
daily_hit004.png?fit=1200%2C500&ssl=1

5min12330

It’s time for your Daily Hit of cannabis financial news for May 30, 2019.

On the Site

The Economics of Cannabis and Women Led Businesses

Women lead almost 30% of the businesses in cannabis and the opportunities are there. This group of distinguished women reviews the best sectors to build a business and how to obtain the capital for your company to thrive and grow. Click here to watch.

MJardin

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported its financial results for the quarter ending March 31, 2019, in Canadian dollars. The company delivered revenues of $10.9 million versus last year’s $6.7 million for the same time period. MJardin said it continued to see improvements in the sales of Cannabis from its WILL facility, recording $1.1 million in sales in the first quarter with a $0.8 million fair value adjustment to inventory.

In Other News

Illinois

The Illinois State Senate has voted to approve the Cannabis Regulation and Tax Act. Under the approved measure, cannabis would be taxed and regulated like any other substance and would help communities disproportionately affected by the “War on Drugs.” This is just one step of many in ending cannabis prohibition. Even after this bill passes there will still be work to do to give adults in Illinois access to cannabis without having to purchase it from a limited amount of stores and cultivators,” said Dan Linn, Executive Director of Illinois NORML.

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) today reported its first quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue grew by 34% to $27.9 million. Adjusted EBITDA was $4.9 million. For the quarter, the company incurred a net loss of $9.7 million, which the company attributes to the decrease in value from a variable note receivable in other income. The company currently has $151.1 million in assets and $6.7 million in outstanding debt.

Cansortium

Cansortium Inc. (CSE: TIUM.U) today reported its financial results for the period ending on March 31, 2019. Revenue for the quarter was $5.5 million and the experienced a consolidated net loss of $16.6 million. “We expect 2019 to be a year of expansive growth and we are reaffirming our previous full year outlook,” said Cansortium CEO Jose Hidalgo. “Our team is focused on positioning the Company and the Fluent brand to capitalize on rapidly expanding opportunities in the U.S., while laying important groundwork for future expansion in international markets.”

Indus Holdings

After the market close yesterday, Indus Holdings announced the release of their first quarter financial results. Year-over-year, revenue grew by 180% to $6.4 million. The gross margin increased from 10% in the previous quarter to 21%.  “As consumer awareness and demand grows, for a company to be successful, it has to be strategic and adaptable with the capacity to scale up. We will selectively grow in a disciplined manner with smart and very accretive deals with an eye to high return – adding strategic and like-minded partners as we position ourselves as a multi-state operator,” stated Indus co-founder and CEO, Robert Weakley.


Debra BorchardtMay 30, 2019
MJardin2.png?fit=1000%2C531&ssl=1

3min12570

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported its financial results for the quarter ending March 31, 2019, in Canadian dollars. The company delivered revenues of $10.9 million versus last year’s $6.7 million for the same time period.

MJardin said it continued to see improvements in the sales of Cannabis from its WILL facility, recording $1.1 million in sales in the first quarter with a $0.8 million fair value adjustment to inventory. The Colorado operations generated $8.9 million in sales.

The net loss was $7.7 million versus last year’s $1.3 million. Total expenses increased to $3.4 million from $1.8 million. General and administrative expense increases were attributed to the GrowForce Holdings acquisition. The company underwent corporate cost-cutting measures late in the first quarter of 2019 and the company said the resulting expected annual SG&A and Payroll expense run rate is approximately $12.1 million.

“Our Q1 results reflect the successful implementation of our operating plans.  We refocused our priorities back to what we do best: grow high yield premium products,” said Adrian Montgomery, Chairman, and Interim CEO. “We made considerable progress towards the completion of our build outs and expansion of our U.S. and Canadian facilities, committed to smart and strategic growth decisions, and utilized the impressive industry talent we have on our team to improve our earnings and bolster our capital position. In Q2 we will start recognizing the benefits of the SG&A cost-cutting initiatives we started at the end of Q1. We will continue to develop and build demand for our premium product lines and evaluate more tuck-in opportunities where we can confidently and responsibly deploy smart capital.”

Post Quarter End

Following the end of the quarter, MJardin acquired Nevada edible producer Carson City Agency Solutions dba Cannabella. This past week, the company completed construction of its 76% owned “GRO” cultivation facility in Dunnville, Ontario. Plus, the company said it submitted the Evidence of Readiness package to Health Canada for the purposes of receiving a Cultivation and Processing Licence. On May 29, 2019, MJardin said it amended the terms of its existing loan with the senior lender to remove the callable feature and convert into a term loan, this enables MJardin to simplify the Company’s capital structure and fully focus on executing the operational plan.


Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

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


READ MORE



Recent Tweets

@GreenMarketRpt – 2 days

We will be live blogging from all week. Head to the website – link in bio – if you didn’t m…

@GreenMarketRpt – 2 days

⁦@PelorusEquityGr⁩ Upsizes Offering To $1 Billion

Back to Top

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.