NASDAQ Archives - Green Market Report

William SumnerWilliam SumnerDecember 7, 2018
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3min2900

Today, Cronos Group Inc. (NASDAQ: CRON) announced that it had received a CAD $2.4 billion investment from Altria Group Inc. (NYSE: MO), the owner of Marlboro cigarette marker Phillip Morris USA.

The investment comes a little more than a year after Corona beer distributor Constellation Brands announced that it would invest billions of dollars in Canopy Growth Corporation (NYSE: CGC). For some, the investments from both Constellation and Altria represent the maturation of the cannabis industry and a sign that cannabis has truly gone mainstream.

For others, however, the investments mark the beginning of the end for the independent cannabis industry as Big Tobacco and Alcohol, which have fought against cannabis legalization for decades, start to take over the market.

The private placement investment will give Altria a 45% stake in Cronos Group. Altria will receive 146.2 million Shares of Cronos at closing at a price of CAD $16.25 per Share, representing a 41.5% premium to the 10-day VWAP of the Shares on the TSX on November 30, 2018. In addition, Altria will receive purchase share warrants, valued at CAD $1.4 billion, which if exercised would give the company an additional 10% in Cronos.

“Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,” said Howard Willard, Chairman and CEO of Altria. “We believe that Cronos Group’s excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential.”

Under the agreement, Altria will have the right to name four directors to Cronos Group’s board of directors, which includes one independent director, and the board will be expanded from five directors to seven. Altria will make Cronos its exclusive partner for all world-wide cannabis-related investments, with some limited exceptions.

News of the deal has caused to Cronos’ stock price to jump by nearly 25% in pre-market trading. Altria’s stock price rose by nearly 2% in pre-market trading. As of publication, Cronos is trading at or around USD $13.00 per share, and Altria is trading at or around USD $55.43.

Pending regulatory approval, the deal is expected to close within the first half of 2019. Earlier this morning, Cronos held a conference call discussing today’s announcement, and a recording of the call has been made available at https://thecronosgroup.com/investor-relations.


William SumnerWilliam SumnerDecember 3, 2018
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6min4770

It’s time for your Daily Hit of cannabis financial news for December 3, 2018

On the Site

Cresco Labs

Chicago-based Cresco Labs is set to begin trading on the Canadian Securities Exchange on Monday using the symbol CL. Cresco is headed by Chief Executive Officer Charles Bachtell who was also a founding member of the Illinois Cannabis Bar Association and the Medical Cannabis Alliance of Illinois. Cresco hits the market with operations in six states (Illinois, Ohio, Pennsylvania, Nevada, California, and Arizona). The company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry.

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (OTCMKTS: HTHHF) today announced its financial results for the third quarter ending on September 30, 2018. The financial results pertain the operations of the Harvest Enterprises Group of Companies, which acquired Harvest Health & Recreation (then known as RockBridge Resources Inc.) in a reverse takeover last month.

Meet The Owner Of A Humboldt County Organic Farm

Green Market Report recently visited Humboldt County and during our time out there, we met Dave Sandomeno. He’s the owner/farmer of Sunrise Mountain Farm. Along with his wife Lorelle, they run an organic cannabis farm that supplies product to leading companies like Papa & Barkley. Check out the 8-foot tall cannabis plants!

In Other News

Cronos Group

The cannabis industry was abuzz with news this morning as news broke that the maker of Marlboro Cigarettes, Altria Group, (NYSE: MO) was in talks to acquire the Canadian Licensed Producer Cronos Group (NASDAQ: CRON). News of the talks caused Cronos’ stock price to jump roughly 10% from $9.25 at the start of trading to $10.17 at the close of the market. At present, details of the deal at not forthcoming and there is no certainty that Cronos will even agree to a deal. The talks are expected to last for several weeks.

Aphria

Aphria Inc. (NYSE: APHA) took a major hit today as stock prices for the company plummeted in the wake of a report where shorth seller Gabriel Grego called the company worthless. Grego, who is the founder of Quintessential Capital Management, worked with Hindenburg Research, a forensic analysis firm. In the report, Grego wrote that the company had redirect company funds towards investments held by company insiders. Both Grego and Hindenburg Research are shorting Aphria. In response, Aphria issued a statement calling the report “malicious and self-serving,” and told investors to “exercise caution in relying on the misrepresentations and distortions contained in the report and recognize that, by their own admission, Hindenburg Research “…stands to realize significant gains in the event that the price of any stock covered herein declines.””

OG DNA Genetics

The cannabis brand OG DNA Genetics announced today that it has successfully closed its first two equity financings, raising $35 million from a group of institutional and strategic investors. Serving as the placement agent for the financings was KES 7 Capital Inc. The company intends to use the proceeds to manufacture, distribute, and sell a variety of cannabis products under the DNA brand label. “I’m excited with our ability to now bridge the gap between real financial markets and real cannabis companies,” said Don Morris, co-founder of DNA. “We have a strong network of great operators and brands across many verticals and applications in the cannabis space, which combined with this capital raise enables us to further develop and refine them, while always staying true to our core strengths, which have positioned us extremely well for our next phase of growth.”


Debra BorchardtDebra BorchardtOctober 2, 2018
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3min7891

Canadian cannabis company Aleafia Health Inc. (ALEAF) has submitted an application to list its shares on the NASDAQ (NDAQ) exchange. The stock is currently trading in the OTC Markets Group in the U.S. and the Toronto Venture Exchange in Canada.

“Listing on the NASDAQ is another step as we continue to execute on our stated goal of attaining a global leadership position in the cannabis space,” said Aleafia Chairman Julian Fantino.

The company said it also intends to submit a Form 40-F, which is a requirement for Canadian companies to register securities it intends to offer on U.S. markets, to the Securities and Exchange Commission (SEC) later this week. The listing remains subject to NASDAQ and SEC approval.

Until that is approved, the shares will continue to trade on the OTCQB under the ticker symbol “ALEAF”. Aleafia’s common shares will also continue to trade on the TSX Venture Exchange under the ticker symbol “ALEF” post-NASDAQ up-listing.

Aleafia is hoping to join other Canadian cannabis companies that have found a home at the NASDAQ. Those include biotech company GW Pharmaceuticals (GWPH), Insys Therapeutics (INSY), Cronos Group (CRON) and Tilray (TLRY). High Times Holding Co. has also applied but hasn’t found the exchange to be as welcoming as some of these other cannabis-related companies.

“Management believes that listing on the NASDAQ will help to broaden our shareholder base, increase appeal to institutional investors, provide shareholders with better liquidity and, ultimately increase shareholder value, allowing Aleafia to rapidly accelerate our business strategy,” said Aleafia CEO Geoffrey Benic.

Aleafia listed the following points as some of the companies highlights:

  • 160,000 sq. ft. Niagara greenhouse retrofitting on schedule and expected to be complete in late 2018
  • Fully funded annual growing capacity of 38,000 kg of cannabis flower to be reached in 2019
  • Signed supply MOU with CannTrust Holdings Inc. for up 15,000 kg of cannabis in 2019
  • Planning of Aleafia’s Port Perry expansion underway, with all production options on the table, including an innovative, ultra low-cost outdoor grow
  • Reached milestone of 50,000 medical cannabis patients
  • Secured first medical cannabis sale in company’s history, only days after securing Sales Licence from Health Canada
  • Added to Horizons Marijuana Life Sciences ETF, the largest cannabis ETF in the world

 


StaffStaffJuly 19, 2018
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5min15940

Part 2 of 8 of the Cannabis Trends for 2018: U.S. companies run north of the border and IPOs are on the rise.

Over the next year expect an increase of cannabis companies to start going public in Canada instead of the United States. Although the U.S. market has great potential in the long run, there are a lot of short term advantages to going public in Canada.

The first, and most obvious reason, is that Canada has legalized recreational cannabis sales.

Sure, nine states have legalized recreational cannabis, but it’s still federally illegal. US cannabis companies continuously have to look over their shoulders, hoping that the federal government isn’t about to kick down their door and make their business close its doors for good. Not to mention the fact that the entire U.S. market still  operates as cash-only, with extremely limited access to banking services.

Put yourself in the position of a cannabis business owner: Would you rather operate in a market that has the *potential* of being more profitable but has no access to banking services and puts you at risk of being arrested? Or would you want to operate in a market that carries little legal risk and you can actually open a bank account? For many entrepreneurs, it’s a pretty simply choice.

One company that is not afraid to do business in both the United States and Canada is Sunniva. Headquartered in Calgary, Canada, Sunniva is on the fast track to becoming one of the first cannabis companies to be licensed in both Canada and California, which is one of the world’s largest cannabis markets.

Legality aside, there’s also the issue listing requirements in the U.S. Companies have to be meet very strict requirements in order to become listed on the New York Stock Exchange (NYSE) or NASDAQ. For example, in order to become listed on the NYSE you need to have publicly held securities that are valued at a minimum of $100 million. Likewise, companies hoping to go on NASDAQ need a pre-tax income of $11 million for an aggregate of three years.

Contrast that with the Canadian exchanges, where companies on the TSX only need a pre-tax income from the previous year totaling $300,000. Those are not the only requirements, of course, but from there you can get a pretty clear idea of how difficult it is to make it on the NYSE or NASDAQ compared to the CSE or TSX.

The vast majority of “cannabis companies” listed on the NYSE and NASDAQ are biopharmaceutical companies, like GW Pharmaceuticals, that aren’t primarily cannabis companies. The only two companies that are purely cannabis companies that are publicly listed in the United States is Cronos Group and Canopy Growth.

With fewer barriers and fewer risks, numerous companies that previously started as U.S. based companies have begun moving operations north of the border and are making preparations to go public. Some of those companies include Acreage Holdings, Dixie Brands Inc., and MJIC Inc.

In the short term, expect an exodus of cannabis companies either going public or completely moving their operations to Canada and expect them to stay there until the United States finally decides to tackle federal cannabis reform.


Debra BorchardtDebra BorchardtFebruary 26, 2018
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3min11590

Canadian-based cannabis company Cronos Group announced that it expects that its common shares will begin trading on Nasdaq on February 27, 2018, under the trading ticker symbol “CRON.” Cronos Group will retain its listing on the TSX Venture Exchange  under the symbol “MJN.”

“This uplisting to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint,” said Mike Gorenstein, CEO of Cronos Group. “We believe this will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors.”

Nasdaq has yet to respond to a request for a comment. The exchange has been reluctant to list cannabis companies on its exchange. The only related companies have been biotech names like GW Pharmaceuticals (GWPH) and Insys Therapeutics (INSY), Corbus Pharmaceuticals (CRBP), Cara Therapeutics (CARA), Zynerba Pharmaceuticals (ZYNE) and Arena Pharmaceuticals (ARNA).

While High Times Media (formerly Origo)has been fighting to remain listed at the exchange, Nasdaq has continued to reject the company only to face appeals by High Times to remain. Nasdaq attempted to delist Origo in February of 2017 for not meeting the listing requirements of 300 shareholders. Origo submitted a plan to accomplish this in April of 2017 and Nasdaq granted an extension. In October 2017,  Nasdaq agreed to allow Origo to continue listing the shares on Nasdaq through February 2018 in order to complete the merger. Then last month, Nasdaq said that Origo’s failure to hold an annual meeting for the fiscal year ending November 30, 2016, served as an additional reason to delist the shares. Once again, Origo responded and for now, Nasdaq has agreed to let the shares remain at least until the February date or upon review following the merger, whichever comes first.

Cronos Group operates two wholly-owned Canadian Licensed Producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. ( Ontario ), which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd. ( British Columbia ), which is based in the Okanagan Valley. It has multiple international production and distribution platforms including Cronos Israel and Cronos Australia. Through an exclusive distribution agreement, Cronos Group has access to over 12,000 pharmacies in Germany.


William SumnerWilliam SumnerFebruary 8, 2018
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9min21133

Cannabis may be federally illegal, but if all you did was pay attention to the stock market, you’d never know. For the most part, cannabis stock are relegated to penny stocks on the OTC Markets, but an elite group of cannabis companies have been able to push through and make it to larger exchanges; like the NASDAQ and New York Stock Exchange.

In part two of our two-part series, Cannabis Stocks, Green Market Report takes a look at the cannabis companies that have managed to make it on to the NASDAQ Exchange (NDAQ). If you missed Part One, you can click here to get caught up.

Origo Acquisition Corp.

Origo Acquisition Corporation (OACQ) is what’s known as a blank-check company, which is a company that either does not have a business plan or has a business plan that based around mergers and acquisitions; in Origo’s case, it is the latter. Origo made its NASDAQ debut on Jan. 9, 2015. Most notably, the company attempted a merger with cannabis publishing giant High Times, but the merger has failed to close as of yet. Origo has until March 2018 to close the deal. Complicating that, however, are the efforts on behalf of NASDAQ to kick Origo off of the exchange due to not have 300 shareholders and then failing to hold an annual meeting for the 2016 fiscal year. Filing an appeal, Origo has until Feb. 19, 2018, to come into compliance or risk delisting. Despite its troubles with NASDAQ, Origo’s stock has shown solid growth for the last five years and is currently trading at $10.70 per share.

GW Pharmaceuticals

GW Pharmaceuticals, plc (GWPH) is a British biopharmaceutical company that specializes in cannabis-based medicines. The company is best known for its product Sativex, which is the first natural cannabis plant derivative in the world to gain market approval and is used to treat patients suffering from multiple sclerosis. GW was first listed on the NASDAQ exchange on May 3, 2013. Recently, the company has been developing Epidiolex, a drug used to treat seizures associated with Lennox-Gastaut syndrome and Dravet syndrome. Currently trading at $132.16 per share, GW’s stock has seen its share of ups and downs over the last few years; but positive results from Epidiolex clinical trials have helped the company’s revenue jump by more than 200% in the first quarter of the fiscal year.

Insys Therapeutics

Making its first appearance on the NASDAQ in 1996, INSYS Therapeutics, Inc. (INSY), a manufacturer of pharmaceutical cannabinoids and spray technology, is a troubled company, to say the least. Insys is the manufacturer of Syndros, a synthetic form of THC and one of the few competitors to AbbVie’s (ABBV) Marinol. But Insys is also the manufacturer of Subsys, a sublingual spray of fentanyl, a drug which has landed the company is some very hot legal water. Several states have already sued Insys over allegedly deceptive and illegal practices with regards to the marketing of Subsys; which include bribery and lying to healthcare providers. Worse still, INSYS founder John Kapoor was arrested in Arizona and charged with RICO conspiracy, conspiracy to commit wire fraud, and conspiracy to violate the Anti-Kickback Law. As a result, INSYS stock, which is currently trading at $8.13 per share, has been on the steady decline since July 2015 and has shown little sign of recovery.

Corbus Pharmaceuticals

Corbus Pharmaceuticals (CRBP) late-stage stage clinical pharmaceutical company that’s kind of a cannabis company, but not really. First listed on the NASDAQ on April 17, 2015, Corbus Pharmaceuticals lead product is JBT-101, an oral endocannabinoid-mimetic drug used to treat various medical conditions, including cystic fibrosis. The key word here is mimetic, which means that the drug is not cannabinoid-based. Rather it mimics cannabinoids in order to bind to the CB2 receptors. Nevertheless, Corbus Pharmaceuticals has been branded a “cannabis stock” and has enjoyed the ensuing hype as a benefit. Recently the RDI and Raymond James have initiated coverage on the company with both a rating of Neutral and Outperform rating, respectively. Trading at $7.10 per share, Corbus Pharmaceuticals’ stock value has generally seen a slow march towards growth, with plenty of bumps along the way.

Cara Therapeutics

First listed on the NASDAQ on Jan. 31, 2014, Cara Therapeutics (CARA) is a clinical-stage biotechnology company with an interest in research cannabinoid receptors. Like Corbus Pharmaceuticals, Cara Therapeutics is and is not a cannabis stock. The company is considered a cannabis stock because of its cannabinoid-based medicine CR701, which is still in pre-clinical testing. The company’s lead product is CR845, an opioid-based medication. Used to treat chronic pain and itching, CR845 target kappa opioid receptors outside of the nervous system, which means it doesn’t enter the brain; making the drug nonaddictive. At approximately $12.79 per share, Cara Therapeutics stock is down approximately 53% from its all-time high of $26.95 per share back in June 2017.

Zynerba Pharmaceuticals

Zynerba Pharmaceuticals (ZYNE) is a biopharmaceutical company dedicated to developing transdermally-delivered cannabinoid therapeutics for patients suffering from severe neuropsychiatric conditions. Both products developed by the company are cannabinoid-based. ZYN001 is a patch that delivers THC directly into the patient’s system through the skin and is currently in Phase 1 clinical studies. ZYN002 is a cannabidiol-based gel that is being developed for patients afflicted with Fragile X syndrome (FXS) and certain refractory epilepsies. ZYN002 has been granted Orphan Drug designation from the U.S. Food and Drug Administration for the treatment of FXS. Zynerba Pharmaceuticals was first listed on the NASDAQ on Aug. 7, 2016, and shortly thereafter its stock shot up in value. Unfortunately, the company was not able to maintain its value and has been on a slow decline for the last year, with some signs of recovery since it bottomed out in August 2017.

Arena Pharmaceuticals

Like many of the other cannabis stock listed on the NASDAQ, Arena Pharmaceuticals (ARNA) is a biopharmaceutical company with an interest in cannabinoid-based research. Unlike some of its competitors, Arena has a diversified pipeline of cannabinoid-based medicines and non-cannabinoid medicines. The medicine getting the most buzz right now is APD371, an orally ingested medicine aimed at treating pain from Crohn’s disease. APD371 is being evaluated in a clinical study and is currently enrolling patients. First debuting on the NASDAQ on July 28, 2000, Arena’s stock never really recovered since the early 2000s market crash. However, the stock has seen improvement over the last year and may hold future promise if APD371 clinical trials are positive.


William SumnerWilliam SumnerFebruary 7, 2018
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Cannabis may be illegal on the federal level, but that hasn’t stopped entrepreneurs and investors from making a killing off of the industry. While the vast majority of cannabis stocks remain on the OTC Market, a select few have graduated to the more prestigious exchanges; like the NASDAQ (NDAQ) or New York Stock Exchange (ICE).

In our two-part series, Green Market Report will take a look at the cannabis companies that have managed to break through and get listed on either the New York Stock Exchange or the NASDAQ Stock Market. First up is the New York Stock Exchange.

Innovative Industrial Properties Inc.
First listed on the NYSE on Dec. 1, 2016, Innovative Industrial Properties (IIPR) is a company with a focus on specialized industrial real estate assets. Specifically, the company owns and leases industrial real estate assets to medical cannabis companies. In addition to leasing medical cannabis cultivation and processing facilities, the company also provides their clients with the services of professional medical cannabis growers, many of whom have gone through the licensing process, as well as long-term triple net leases. Company stock is currently trading at $26.10, down from its all-time high of $36.57.

22nd Century Group
22nd Century Group (XXII) is a biotechnology company that made its debut on the NYSE on March 11, 2014. Specializing in genetic engineering and plant breeding, the company has been working towards the research and development of cannabinoid-related products derived from industrial hemp. Partnering with the University of Virginia, the company harvested its first hemp crop, valued at $1 million, in 2017. Most notably, 22nd Century has developed a strain of tobacco with “non-addictive” levels of nicotine, the first of its kind, and is currently seeking a patent on the strain. The company’s stock is currently valued at $2.90 per share, more than two dollars higher than it was at this same time last year.

India Globalization Capital

India Globalization Capital (IGC) is an internationally diversified company that works in both infrastructure and cannabis-related pharmaceutical research. Internationally, the company works in real estate, heavy equipment, and the construction and leasing of farming facilities. Domestically, the company is developing a product portfolio of phytocannabinoid-based therapies to treat Alzheimer’s, pain, nausea, etc. In December of 2017, India Globalization Capital’s received a huge boost in its stock price after it announced that it would work towards developing a blockchain-based platform aimed at solving industry-related issues, such as inadequate product labeling. However, much of those gains have been lost since the start of the year. The company’s stock is currently trading at $0.84 per share.

AbbVie
First launched as a spin-off company of Abbot Laboratories, AbbVie (ABBV) is a pharmaceutical company with one critical edge over its competitor: it already has a cannabis-related product on the market. Also known as dronabinol, Marinol is a synthetic form of THC used to help treat nausea in patients suffering from cancer and HIV treatments. Marinol has few competitors, most notable Syndros from Insys Therapeutics, and as a result, AbbVie has seen steadily increasing revenues over the last few years. However, the company’s over-reliance on US Markets make it a slightly riskier bet than it appears. Over the last year, AbbVie’s stock has risen over 50%, trading at approximately $111.20 per share.

Compass Diversified Holdings
Compass Diversified Holdings (CODI) is a company that focuses on acquiring and management “middle market businesses,” which are companies that fall somewhere between small businesses and billion-dollar businesses. The company was first listed on the NYSE on May 12, 2006. Although Compass is not primarily a cannabis company, it does have a holding in the hemp-based food companies Manitoba Harvest and Hemp Oil Canada. Compass’ stock price has been on a slow decline for the last several years, falling by 4% in the last year alone to approximately $16.60 per share.

Scotts Miracle-Gro
If you’ve ever owned a lawn or worked outside, then odds are you already know Scotts Miracle Gro (SMG). In 2016, Scotts Miracle-Gro surprised the cannabis industry and the markets when CEO Jim Hagedorn announced that he planned on investing approximately $500 million in the cannabis industry. So far the company has spent hundreds of millions of dollars to acquire hydroponics companies and technology. In addition, the company has also begun looking into developing pesticides developed specifically for cannabis plants. By focusing on the ancillary side of the cannabis business. Scotts Miracle-Gro has insulated itself from many of the legal risks with the cannabis industry while opening itself up to the industry’s benefits. For the last five years, the company has enjoyed steady growth but in the last month, like many companies investing in the cannabis industry experienced a steep decline in its stock prices following United States Attorney General Jeff Sessions’ announcement that he would rescind the Cole Memo. Scotts Miracle-Gro is currently at $89.13 per share.

Stay Tuned for Part Two
Check back again for Part Two of our two-part series where Green Market Report will give you a look into the cannabis companies listed on the NASDAQ Stock Market.



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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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