It’s time for your Daily Hit of cannabis financial news for June 27, 2018.
On The Site
Canopy Growth Corporation
Canopy Growth Corporation (CGC) reported that its fourth-quarter revenue rose 55% to C$22.8 million versus last year’s C$14.7 million for the same time period. Still, the company recorded a net loss of C$61.5 million or C$0.31 per basic and diluted share, which was dramatically higher than last year’s net loss of $12.0 million, or $0.08 per basic and diluted share for the same time period.
Revenues jumped 95% in the fiscal year ending March 31, 2018, to C$77.9 million over revenue of C$39.9 million for last year. For the fiscal year 2018, Canopy sold 8,708 kilograms at an average price of C$8.24 per gram compared to 5,139 kilograms at an average price of C$7.40 per gram for the previous year, representing an increase of 70% and 11%, respectively.
Oklahoma Makes That 30
Oklahoma became the 30th state to legalize medical marijuana after voters approved State Question 788 on Tuesday. The measure was leading 56-44 with 85 percent of precincts reporting when the New York Times called the election. According to StateImpact Oklahoma, The Oklahoma State Department of Health has already begun drafting rules for a Medical Marijuana Control Program.
MPP said that State Question 788 is the fourth medical marijuana initiative in a row to win in a state that went for Donald Trump, and that number could grow to as many as six by the end of the year. They were approved in Arkansas, Florida, and North Dakota in 2016, and they will appear on ballots in Missouri and Utah this November.
In Other News
CV Sciences, Inc.
CV Sciences, Inc., (CVSI) preeminent manufacturer and distributor of the industry-dominating brand of hemp extract products, PlusCBD Oil™, announced that it issued a letter to its shareholders, providing a business update. In the letter, CV Sciences said, “Sales for the first quarter of 2018 were $8.1 million, an increase of 114% compared to the first quarter of 2017 and a sequential quarterly
growth of 11.5% when compared to the fourth quarter of 2017. Our GAAP net income for the first quarter of 2018 totaled $619,000,
compared to a GAAP net loss of $3.8 million for the first quarter of 2017. This profitable quarter represents a $4.6 million improvement
compared to the first quarter of 2017. Our gross profit for the first quarter of 2018 was $5.6 million, an increase of 129% compared to
the first quarter of 2017. This represents a gross profit margin of nearly 69% for the first quarter of 2018, demonstrating our ability to
expand sales while maintaining strong margins.”
The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (TGODF) has signed a letter of intent for a 50/50 joint venture (“JV”) with Queen Genetics/Knud Jepsen A/S based in Hinnerup, Denmark. The JV will initially consist of two facilities located within Knud Jepsen’s 1.3 million sq. ft. state-of-the-art automated greenhouses in Denmark. The approximately 200,000 square feet of advanced buildings to be dedicated to the JV were designed and engineered by Thomas Larssen of Aurora Larssen Projects Inc. and will provide an opportunity for TGOD to increase its total organic funded capacity by approximately 25,000 kgs. This will provide a consistent supply of high-quality organic cannabis grown in Europe, ready for the local European markets and increases TGOD’s funded capacity to 195,000 kgs.
PotNetwork Holdings, Inc.
PotNetwork Holdings, Inc. (POTN) is in the process of filing an amendment to its articles of incorporation with the state of Colorado for a name change from PotNetwork Holdings, Inc. to “BioTech Hemp, Inc.”. This name change reflects the company’s focus on Diamond CBD’s sales momentum and expanding product lines, which better reflects its current and future business strategy and industry scope. Following the filing with the state of Colorado, the company plans to file for a name listing and trading symbol change with FINRA.
As revenues year-to-date for 2018 already exceed $10 million, The company’s repositioning initiative is designed to signal to the market its mission to be a continually thriving, socially-responsible family of brands dedicated to strengthening its evolving leadership position in the distribution and marketing of CBD products. This filing follows the recent announcement that its Board of Directors has directed the company’s counsel to prepare a Form 10 to be filed with the Securities and Exchange Commission, to become a fully reporting issuer with the SEC.
CROP Infrastructure Corp.
CROP Infrastructure Corp. (CRXPF) entered into a joint venture agreement whereby CROP will own 30% under the name of Xhemplar to develop a 522,000 square foot project in the North-Eastern region of Italy. The joint venture and its principals have also been permitted to develop one of a few extraction and processing facilities currently present in the Country of Italy.
Novus Acquisition and Development Corp.
Novus Acquisition and Development Corp. (NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., announced its recently announced business collaboration is with cannabis technology company Enlighten.
Novus will utilize Enlighten’s interactive television technologies in a revenue sharing deal. Enlighten will place Novus’ message at the point of sales in 650 dispensaries across the country with advertising to engage and educate consumers on the Novus Cannabis MedPlan. When consumers are engaged Novus will get analytics of verified impressions from the consumer mobile devices for retargeting.
CLS Holdings USA, Inc.
CLS Holdings USA , Inc. (CLSH) closed its previously announced oversubscribed private placement offering of special warrants for aggregate gross proceeds of C$13,037,859 . Proceeds exceeded the originally announced target of C$10,000,000 due to high investor demand. Canaccord Genuity Corp. acted as the sole agent and sole bookrunner in connection with the Offering.