NASDAQ Archives - Green Market Report

Kaitlin DomangueKaitlin DomangueJanuary 30, 2020
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It’s time for your Daily Hit of cannabis financial news for January 30th, 2020.

On the Site

CLS Nevada Projects 2020 Revenue Of $17 Million

CLS Holdings USA, Inc (OTCQB: CLSH)(CSE: CLSH) released its 2019 calendar year-end statement for CLS Nevada, not long after the company reported its quarterly earnings on January 14. The company said in a statement that it was “forecasting CLS Nevada 2020 revenue of $17 million and positive EBITDA of $4 million.” The company will need to hustle if it wants to hit that $17 million goal. CLS said that it plans to increase sales by 100% at City Trees by eliminating low return on investment SKUs, re-branding and increasing visibility through better marketing channels. That includes expanding the  Oasis Cannabis parking lot and vault to allow it to efficiently serve 1250 customers a day. The company also wants to create new revenue streams by offering advertising opportunities to brands and partners.

High Times Tells Shareholders It Needs More Capital

It’s been a tumultuous two months for venerable cannabis publisher High Times following an equally bumpy road to going public. On Wednesday, Chairman Adam Levine sent a letter to shareholders of the private company stating that it would once again extend its fundraising campaign and abandon its efforts to list on the NASDAQ Marketsite Exchange (NASDAQ: NDAQ).

The latest extended offering will terminate on the first to occur of either the date on which all 4,545,454 shares are sold or March 31, 2020. These shares though are priced back at $11 with the goal of raising another $5 million. According to the most recent corporate presentation, High Times had 32,460, 313 issued shares and if all were valued at $11, that is a $357 million market cap. The company’s current total liabilities are $68 million.

The First Historically Black College Is Launching A CBD Line

The Southern University Agricultural Research and Extension Center in Baton Rouge, Louisiana, along with its partner Ilera Holistic Healthcare is launching a CBD product line called ALAFIA. Southern is the first HBCU (Historically Black College University) to start its own CBD product line that is available for sale at dispensaries and other retail locations.

“Southern has been a leader in agriculture and the sciences for 140 years while staying true to its mission of access,” said Ray Belton, the president of the Southern University System. “This CBD venture with Ilera encompasses all of that.”

Hemp Glut Causing Prices To Drop, Unsold Harvests

Hemp Benchmarks report for January was published on Wednesday at the Hemp Benchmarks website. Founder Jonathan Rubin noted that wholesale hemp markets continue to face significant challenges, including oversupply and declining prices.

The report stated, “We have in previous reports emphasized the current glut of biomass on the market, which has led to farmers being unable to move their harvests. Such market conditions continued in January, with numerous members of our Price Contributor Network reporting that relatively little buying and selling of biomass was taking place. Transactions that were reported showed high-CBD biomass prices continuing to sink, with the assessed rate for transactions of over 1 million pounds down 53% from last month.

In Other News

Two Kentucky Hemp Companies Facing Bankruptcy 

Two companies are facing financial trouble as GenCanna has had three separate creditors try and force the company to declare bankruptcy. The three creditors are owed $50,000 collectively. Separately, Sunstrand owner William “Trey” Riddle filed for Chapter 7 bankruptcy in a Louisville court. 

A creditors’ meeting is scheduled for February 6th in Louisville, KY. 


Video StaffVideo StaffJanuary 10, 2020

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Youngevity (NASDAQ: YGYI) is a health fitness supplement company that wants its CBD products to go from farm to shelf. Green Market Report met with the company at the NASDAQ Marketsite where executives rang the closing bell. We had a chance to speak with Dr. James Rouse, actress Marilu Henner, and Youngevity CFO David Briskie. Thank you for watching the Green Market Report! Be sure to subscribe to our channel to get the latest videos on the cannabis industry from the business point of view.


Debra BorchardtDebra BorchardtAugust 7, 2019
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The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company.

“This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD. “Our team remains focused on executing our business plan and creating value for our shareholders.”

The listing of TGOD’s shares on the NASDAQ will be subject to a number of regulatory requirements, including registration of the common shares under the U.S. Securities Exchange Act of 1934 and a determination by the NASDAQ that TGOD has satisfied all applicable listing requirements.  Subject to approval for listing, the common shares will continue to trade on the TSX Exchange under ‘TGOD’, which is also the reserved symbol for the NASDAQ application.

In May, the company reported its first-quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue rose by 28% to $2.4 million. Much of that revenue was generated from the recently acquired HemPoland. The company experienced a net loss of $14.1 million, down $4 million from the previous quarter. Management attributes these losses to continued preparation for commercial cannabis production and its preparations to enter the adult-use market next year.

The company is on schedule with the construction of production facilities in Hamilton, Ontario and Valleyfield, Quebec. Approximately $46.9 million in investment is dedicated to the sites’ construction.

Close to the end of the quarter, TGOD launched Growers Circle, which sells medical cannabis directly to patients in Canada. The company did not record any revenue from the venture in the first quarter as the bulk of orders were shipped in April. However, revenues should appear on the financial results for the second quarter.


Debra BorchardtDebra BorchardtJuly 29, 2019
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Nextleaf Solutions

Extraction technology company Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF)  said that its common shares will begin trading today on the OTCQB Market. Nextleaf will trade on the OTCQB under the symbol “OILFF” and the company’s common shares will continue to trade on the Canadian Securities Exchange under the symbol “OILS”. Nextleaf owns a portfolio of issued and pending patents pertaining to the company’s unique, industrial-scale process of extraction and purification of cannabinoids.

“We are excited to begin trading on the OTCQB which will improve liquidity and allow us to introduce Nextleaf – the first public company to be issued multiple U.S. patents for the industrial-scale extraction and purification of THC and CBD – to a broader audience of U.S. institutional and retail equity investors,” said Paul Pedersen, CEO and Co-founder of Nextleaf Solutions. “Listing in the United States on the OTCQB is an important step for Nextleaf as we build on our vision to revolutionize extraction and purification with superior throughput, yield, and purity to enhance cannabis oil economics across the globe.”

CannBioRx

Special Purpose Acquisition Company (SPAC) KBL Merger Corp. IV (NASDAQ: KBLM) signed a definitive agreement for the merger of a wholly-owned subsidiary of KBLM with CannBioRx Life Sciences Corp., a drug development company focused on treating inflammatory diseases. It began trading last Friday as a NASDAQ-listed cannabis biotech.

CannBioRx said in a statement that it has three synergistic programs that operate at the intersection of the biotech and cannabis industries:

  • A clinical-stage program focused on the discovery and development of novel therapies to treat fibrosis. This fully enrolled Phase 2b program expects results in Dupuytren’s disease during the fourth quarter of 2020.
  • A preclinical cannabinoid program focused on the development and commercialization of unique pharmaceutical-grade cannabinoids for arthritis, pain, diabetes, and obesity.
  • A preclinical program developing innovative, orally available therapies harnessing the brain’s nicotinic receptors to treat inflammatory diseases, such as ulcerative colitis, gout, and multiple sclerosis.

“These three unique programs will enable us to efficiently target several key pathways in inflammation and capitalize on two decades of extensive scientific research on the relationship between cannabinoids and inflammation,” said Prof. Sir Marc Feldmann, Founder, and Co-Chairman of CannBioRx. “We believe that the use of synergistic combination therapies across our programs could be important for providing cost-effective healthcare in the future. We also believe that creating an entity and robust pipeline in each of its programs diversifies our risk. We are a global company comprised of senior scientists affiliated with OxfordStanford and Hebrew Universities. We intend to not only advance drug development and clinical trials for existing programs but also to identify new patent-protected compounds, including novel cannabinoids that expand our therapeutic impact in the industry.”

“Upon the completion of the transaction, we expect to be one of a limited number of NASDAQ-listed companies developing non-plant-touching, pharmaceutical-grade, non-psychoactive cannabinoids. These drugs are intended to provide safer, uniform dosing, according to regulatory agency standards,” added Dr. Marlene Krauss, CEO of KBLM, who will also assume the role of CEO of the combined company. “We believe that CannBioRx’s distinctive position is enhanced by the fact that the cannabinoid program is being developed in tandem with its other novel drug development programs that are also focused on inflammation. The programs range from pre-clinical programs to a program in a Phase 2b clinical trial. This could potentially provide us with a pipeline of drug candidates in sequential stages of development and addresses what we believe to be large untapped markets.”


Debra BorchardtDebra BorchardtJune 20, 2019
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Akerna Corp. (KERN) is crushing it in the company’s first days of trading at the NASDAQ Marketplace (NDAQ). The cannabis compliance software company is a combination of special purpose vehicle company MTech Acquisition Corp. and the software company known for its seed-to-sale tracking program MJ Freeway. The stock debuted on the exchange at $11.51 on Tuesday and was lately trading at $42.33.

The company is set to ring the closing bell at the exchange on Thursday. “This is a great day for Akerna and an honor to be the first data company in the cannabis space to ring NASDAQ’s closing bell,” said Jessica Billingsley, Chief Executive Officer of Akerna.  “We listed on the NASDAQ just two days ago and believe we are well positioned to realize our vision to connect businesses with data and consumers with information which will modernize and propel the cannabis industry forward.”

At one point, it didn’t seem like NASDAQ would approve of the listing. The exchange has been reluctant to list cannabis companies and has only recently begun to ease up on Canadian-based cannabis companies like Organigram Holdings Inc. (OGI). Then it listed e-commerce company Greenlane Holdings Inc. (GNLN) which is known for selling smoking accessories. However, the majority of Greenlane’s online sales come from Juul tobacco pods and that seemed to give the NASDAQ comfort.

Akerna is considered an ancillary cannabis company. While it provides the software to track cannabis plants, the company doesn’t “touch the plant,” meaning it doesn’t cultivate or produce cannabis products. Billingsley said that the company is looking forward to expanding its markets. It is currently working in 29 of the 33 legalized states and is in 13 countries. The software is available in four languages. It works with two state governments and she hinted that a third may be announced soon.

The company is not only the first cannabis compliance technology company to list on the NASDAQ, but it is also the first cannabis company led by a woman to trade on the marketplace. Billingsley has been with the company from its early days and has navigated it through the rough waters of security breaches to come out on top as Akerna begins its life as a publicly traded stock.

 


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Today MTech Acquisition Corp. and MJ Freeway LLC announced the completion of their merger to form the Akerna Corp. MTech Acquisition Corp. (NASDAQ: MTEC), the first US-listed Special Purpose Acquisition Company (SPAC) focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway, a leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform, has now become the first compliance technology company in the cannabis space to be traded on Nasdaq. Jessica Billingsley also becomes the first female CEO from the cannabis industry to lead a company that will trade on the exchange.

“As legalization of cannabis expands across the world, we believe it is imperative that businesses, patients, consumers, and governments have the tracking and compliance technology they need to make informed decisions and comply with applicable regulations. We believe Akerna is well suited to meet these needs with the ability to scale rapidly across the world and offer a robust and innovative platform for growing industry demands,” stated MJ Freeway Co-Founder & Chief Executive Officer Jessica Billingsley.

In addition to her role as CEO, Billingsley also serves on the Akerna Board of Directors and is joined by senior leadership from MTech: Scott Sozio, Tahira Rehmatullah and Douglas Rothschild. The Board of Directors of Akerna also includes Emery Huang, Matt Kane, and Mark D. Iwanowski, who were formerly members of MJ Freeway’s Board of Directors. Roger McNamee, who served as senior advisor to MJ Freeway’s Board of Directors, will act as Senior Advisor to the Board of Directors of Akerna.

The business combination between the two companies was approved at a meeting of MTech stockholders today. In connection with the transaction, MTech and MJ Freeway combined to form Akerna Corp. (“Akerna”). The shares of common stock and warrants of Akerna will begin trading on The Nasdaq Stock Market tomorrow, June 18, 2019, under the symbols “KERN” and “KERNW,” respectively. The company also announced raising $9.2 million prior to this closing.

“We are very pleased to close this transaction and look forward to capitalizing on the substantial operating and financial benefits we believe the combination will create. From here, we believe we are well positioned to pursue our acquisition strategy to drive transformation for future growth in the regulatory technology sector,” commented Scott Sozio, CEO of MTech. “We believe comprehensive, compliant, scalable technology solutions will underpin the industry’s rapid growth, and serve as a backbone for sustained success.”

Roger McNamee, Senior Advisor to the Akerna Board of Directors added, “Cannabis companies that want to be leaders are adopting MJ Platform, because it is the only ERP product with the technical foundation to support multi-line and multi-location operations. This transaction will enable MJ to better support customers manage high growth and complexity as the industry transitions from local to a global scale.”

Upon the closing of the transaction, the former MJ Freeway equity holders exchanged their securities of MJ Freeway for securities of Akerna, and the former equity holders of MTech exchanged their securities of MTech for securities of Akerna. As a result of the former MJ Freeway equity holders beneficially own approximately 62.7% of Akerna’s outstanding shares of common stock (including the shares held in escrow and unvested restricted shares); the former MTech stockholders beneficially own approximately 27.7% of Akerna’s outstanding common stock; and the investors in MTech’s previously-announced private placement that closed concurrently with the business combination beneficially own approximately 9.6% of Akerna’s outstanding shares of common stock. Legal counsel for the business combination was provided by Graubard Miller (MJ Freeway) and Ellenoff Grossman & Schole LLP (MTech).

 


Debra BorchardtDebra BorchardtMay 20, 2019
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Canadian-based Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF)  will begin trading on the NASDAQ Global Select Market on May 21, 2019. The company will continue to list its common shares on the TSX Venture Exchange under the symbol “OGI.”

“As a management team we are seeing increased interest from investors in the U.S. and internationally and believe that having a listing on the NASDAQ will facilitate trading,” said Paolo De Luca, Chief Financial Officer of Organigram. “In addition, based on precedents in the cannabis space, we expect trading volumes to increase which should result in increased liquidity for all investors”.

The company has also hired Native Ads, Inc. to manage a digital media marketing campaign and entered into an agreement with Hybrid Financial Ltd. to provide marketing services to advisors, brokers and institutional investors in North America.

Organigram has developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, Ankr Organics, Trailer Park Buds and Trailblazer. Organigram’s primary facility is located in Moncton, New Brunswick and the Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

Investment in Chocolate

Organigram also announced a $15 million investment commitment in a high-speed, high-capacity, fully-automated production line with the ability to produce an estimated 4 million kilograms of exceptional chocolate cannabis edibles per year. Organigram said it expects to take delivery of the line in the fall.

The company said that the line is expected to allow Organigram’s product development team to introduce chocolate innovations unique not only to the cannabis industry but to the chocolate industry as a whole.

“Over the last number of years, Organigram has become known for its best-in-class cannabis production facility and high-quality products,” says Greg Engel, CEO, Organigram. “With this investment, we will soon also be known for our world-class chocolate production capability.”

Organigram’s foray into chocolate is led by a product development and production team with more than 25 years of combined chocolate experience and expertise. As previous Vice President, Operations at Ganong Bros Limited, Jeff Purcell, Organigram’s Senior Vice President of Operations, will leverage his many years of chocolate experience to implement and manage the project. The company has also recruited a marketing, product development and a research team led by Ginette Ahier, previously of Adorable Chocolate, and Mouna Gharsallah, previously of Tunisia based Sotuchoc.

The full Organigram chocolate offering that is under development is expected to be supported by a carefully curated collection of partners and suppliers identified for their own global expertise and unwavering commitment to quality. The investment will contribute to a state-of-the-art chocolate molding line and a fully integrated packaging line, that includes advanced engineering, robotics, high-speed labeling, and automated shipping carton packing.

“Not only have we invested in exceptional technology, but we have also brought an outstanding team to the table,” says Engel. “I don’t believe there is another team assembled out there that can rival ours when it comes to understanding – and reimagining – the potential of chocolate cannabis-infused edibles.”



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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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