Namaste Tech Archives - Green Market Report

StaffAugust 13, 2018
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It’s time for your Daily Hit of cannabis financial news for August 13, 2018.

On The Site

Cowen Initiates Coverage On Tilray

Cowen Research initiated coverage on Tilray Inc. with an Outperform rating and a $34 price target. Analyst Vivien Azer is forecasting total company revenues of $44 million in the fiscal year 2018, $163 million in the fiscal year 2019, $346 million in the fiscal year 2020 and $503 million in the fiscal year 2021. She believes the company will break even in early 2019 with EBITDA margins in the mid-to-high 20% by 2020, which would be similar to the alcohol companies that Azer covers.

The $34 price target is assuming a nine times equity value and compares to Canopy Growth’s (CGC) which is currently trading at 11 times Cowen’s CY3 revenue estimates. Tilray was lately trading at $26.90. It had expected to price its IPO in the range of $14-16 but ended up at $17. It closed at $22 on its first day of trading and has traded as high as $34 since going public in July.

Harborside

FLRish Inc., a California corporation d/b/a Harborside is entering into a binding letter agreement with  Lineage Grow Company Ltd.  (CSE:BUDD) for a reverse takeover in a deal valued at C$200 million. Lineage will acquire all of the outstanding shares of Harborside in exchange for newly issued shares of Lineage.

Harborside operates two flagship dispensaries in the San Francisco Bay Area as well as a cultivation facility in Salinas California, plus the Harborside brand. The move will help Harborside expand within the state and across the U.S. Combined, the two Harborside dispensaries have generated over CAD $400 million in sales since their opening, including over CAD $50 million sales in 2017. Harborside is currently structured as a private California corporation.

Gron Chocolates

C21 Investments Inc. (CSE: CXXI)  has entered into an agreement to acquire Oregon-based premium cannabis edible companies Grön Chocolate and Grön Confections. The deal is expected to close by November 1, 2018. C21 has agreed to pay Grön unitholders $6.8 million plus the bonus earn-out shares of $4.375 million

In Other News

AeroGrow International

AeroGrow International, Inc. (AERO) announced results for its first quarter ended June 30, 2018. The company recorded net revenue of $3.7 million, an increase of 52% over the same period in the prior year.  Loss from operations was $653K, improved from $729K in the prior year period.

“I am very pleased to report our results for the 1st Quarter of our Fiscal Year 2019,” said AeroGrow President & CEO J. Michael Wolfe.  “With sales up 52%, we continued – and in fact accelerated – the strong momentum we’ve had over the last year and realized particularly good results on our Amazon platforms as well with several other online retailers, notably Bed, Bath & Beyond, Home Depot and Kohl’s.  Loss from operations was improved year-over-year and I’m especially pleased with the nearly 500 basis point improvement in our gross margin vs. last year (from 33.4% to 38.3%).  Our cash position remained strong with $7 million in cash on hand as of June 30th and no debt.  We have also lined up a $6 million line of credit with our partners at Scotts Miracle-Gro to support our anticipated growth this fall.”

Auxly Cannabis Group Inc.

Auxly Cannabis Group Inc. (XLY) announced that it has entered into a strategic partnership with Cannabis OneFive, Inc., a provider of quality management and document control software systems for the cannabis industry. Auxly’s wholly-owned subsidiary, Dosecann Inc., will become a lead subscriber of C15’s software, and the Company expects the C15 software to be deployed at other Auxly facilities.

In connection with the strategic partnership, the company has entered into a share exchange agreement with C15. Pursuant to the Share Exchange Agreement, Auxly will issue 429,507 common shares and make a cash payment of $50,000 to C15, and Auxly will receive 9,000,000 common shares in the capital of C15 and a common share purchase warrant entitling Auxly to purchase 4,250,500 common shares of C15 at an exercise price of $0.075 per common share, representing a 30% ownership interest in C15 on a fully-diluted basis.

Namaste Technologies Inc.

Namaste Technologies Inc. (NXTTF) announced that the company’s wholly-owned subsidiary, Cannmart Inc., a licensed cannabis producer under the Access to Cannabis for Medical Purposes Regulations, has completed Health Canada’s Pre-Sales License Inspection at the Cannmart facility in Etobicoke, Ontario. On July 31 st, 2018, Health Canada inspectors were on-site to verify information submitted by Cannmart as part of its application and in assessing compliance with the applicable sections of the ACMPR prior to license approval. The Pre-Sales License Inspection is one of the last steps prior to the issuance of a Sales License under the ACMPR.


William SumnerJuly 23, 2018
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It’s time for your Daily Hit of cannabis financial news for July 23, 2018.

On the Site

Acreage Holdings

Acreage Holdings continues to quickly take charge in dominating the U.S. cannabis scene. Today’s news of raising $119 million will comfortably position the company to go public on the Canadian Securities Exchange this year. In addition to raising what could be the largest private round in the U.S. cannabis industry, Acreage completed the roll-up of control positions in several U.S. states.

PotNetwork

Penny stock cannabis company PotNetwork Holdings Inc. (POTN) reversed its recent decision to become a fully reporting SEC company on Sunday. Just a days ago on July 16, PotNetwork said it had filed a Form 10 with the Securities and Exchange Commission (SEC) to become a fully reporting company.

The Ultimate Meet-Cute: Hollywood & Weed

Although it’s no secret that many Hollywood stars have been known to indulge in cannabis use from time to time, most have been reluctant to publicly open up about their affinity for cannabis. But now that recreational cannabis is legal in California, it seems like every celebrity with even a modicum of fame is rushing to cash in on the legal cannabis industry.

In Other News

CV Sciences

Hemp oil supplier and manufacturer, CV Sciences (CVSI), announced that it has applied to list on the NASDAQ Capital Market. Until approved, the company will continue trading on the OTC Markets under its current symbol, CVSI. “We believe up-listing from the OTC Market to the Nasdaq Capital Market will increase corporate visibility, improve liquidity, and broaden awareness in the financial markets,” said CV Sciences CEO Joseph Dowling. Additionally, the company’s Board of Directors has approved a reverse stock split of all outstanding shares of common stock. If approved by stockholders, the company will have a ration sufficient to meet NASDAQ’s minimum bid price requirement.

Namaste Technologies

Namaste Technologies (NXTTF) announced today the filing of its unaudited third quarter financial statements. Revenue for the quarter rose by 32% from $3.1 million to $4.1 million, compared to the same period in the previous year. The increase in revenue was attributed to organic growth in the company’s vaporizer business and was generated in several key markets. The gross profit margin declined from 22% to 21%, but overall, gross profits rose from approximately $700,000 to $900,000. “We are pleased to see a 32% increase in quarterly revenue compared to the same period last year, due to organic growth in the Company’s vaporizer business,” stated Namaste CFO, Kenneth Ngo. “The Q3 results are very encouraging especially considering that Namaste divested its U.S assets and revenue which accounted for 14.4% of the total revenue during Q3 of 2017.”

Organigram Holdings Inc.

Organigram Holdings Inc. (OGRMF) today gave shareholders an update on the progress of the expansion of its cannabis production facility, located in Moncton, New Brunswick. The company is in the final stages planting the remaining three of the sixteen three-tier Phase 3 cultivation rooms. Staggered harvests from the company’s Phase 3 cultivation rooms are expected to begin in August. Construction on the facility’s Phase 4 expansion has already started and will be completed over three stages in 2018 and 2019 and should cost the company approximately $110 million. Once completed, Organigram’s cultivation capacity will increase to 113,000 kilograms per year. “We are pleased to successfully complete our latest expansion project on time and on budget to meet the needs of the existing domestic and international medical market as well as the launch of the recreational adult-use market in Canada on October 17, 2018,” said Greg Engel, CEO of Organigram.


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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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