Adam JacksonNovember 16, 2023
The company's also trying to get $60 million in damages from the city of Pontiac, Michigan.
Rubicon Organics Archives - Green Market Report
Adam JacksonNovember 16, 2023
StaffMay 23, 2023
The Daily Hit is a recap of the top financial news stories for May 23, 2023.
On the Site
Brad Hoch Returns as CFO for TILT Holdings as Dana Arvidson Departs
In the midst of a series of financial and operational shifts, Phoenix-based TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) announced a change in its leadership. The firm’s CFO, Dana Arvidson, has left the company, effective immediately, with Brad Hoch, the current accounting chief and former CFO, stepping in as interim CFO. Read more here.
SEC Halts $60 Million Ponzi-Like Scheme by WeedGenics
Hirschmann and Williams, who raised over $60 million from investors to expand their cannabis operations, allegedly utilized the majority of these funds for $16.2 million in Ponzi-like payments and to personally enrich themselves, the agency said on Tuesday. Read more here.
Acreage Holdings Revenue Slips Slightly, High Hopes for Connecticut
Long after the markets closed on Monday, Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF) reported its financial results for the first quarter ended March 31. Revenue fell 1.6% from last year to $55 million. Sales fell sequentially by 2.7% from the fourth quarter. The net loss in the first quarter was $16 million. Read more here.
Delivra Health Brands Rises on Sales of Dream Water
For the second time this year, Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF), a consumer packaged goods company with a position in the health and wellness sector, reported positive adjusted EBITDA. Read more here.
Premium Drives Record Net Growth for Rubicon, Keeps Rosy Outlook for Segment
Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF), a licensed producer of “organic, certified” premium cannabis, reported a notable year-over-year growth of 71% revenue growth in its first quarter 2023. The rise is attributed to robust growth in the premium cannabis segment and expansion of its product offerings. Read more here.
In Other News
TerrAscend Corp.
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, completed the sale of its facility located in Mississauga, Ontarion, for CAD$19.7 million. Net proceeds will be used to pay down existing company debt. Read more here.
Montana
A piece of legislation signed by Montana’s governor on Monday could have foiled plans for new marijuana dispensaries, although existing dispensaries are allowed to expand operations. The new law, HB 128, extended the date for new applicants from July of this year to 2025, despite some prospective operators already investing thousands of dollars. Read more here.
Zelira Therapeutics Ltd.
Zelira Therapeutics Ltd (ASX:ZLD, OTCQB:ZLDAF), a global leader in the development and commercialisation of clinically validated cannabinoid-based medicines, executed additional binding term sheets to provide a further $3.25 million to support FDA clinical trials for Zelira’s proprietary and patented protected HOPE 1 product. Read more here.
Adam JacksonMay 23, 2023Higher production costs is forcing the company to go lean.
Adam JacksonAugust 15, 2022
Rubicon Organics Inc. (OTCQX: ROMJF) delivered mostly positive results on Monday as the company begins to post profits — buoyed by its premium flower and pre-roll line. The Vancouver cultivator released its financial results for the second quarter ending June 30, 2022. Rubicon reported approximately $8.8 million in net revenue during the period, a 92% gain versus the same period last year.
According to SEDAR filings, the company also reported a second-quarter net loss of $1.2 million versus a $1.5 million loss in the previous quarter; and a net loss of $5.1 million in the same period last year. The earnings were for a loss of two cents per share, versus a loss of three cents per share in the previous quarter.
“Rubicon Organics has reached profitability due to the continued success of Simply Bare Organic as Canada’s #1 premium flower and pre-roll brand and the impressive market share gains of our newly launched mainstream brand 1964 Supply Co.,” said CEO Jesse McConnell. “Our production facility at the end of Q2 2022 was delivering yield run-rates capacity expectations of 10,000kg and we are beginning to realize the benefits of operating leverage as our production costs remain relatively flat, excluding some minor cost creep due to inflationary pressures…I am also pleased to increase our guidance to achieve positive Adjusted EBITDA for FY 2022 and as well as operating cash flow positive in the second half of 2022.”
Rubicon’s revenue grew $3.7 million over the quarter — representing year-on-year revenue growth of 92% and 61% over the three and six months of this fiscal year.
In total, it reported $11.6 million in total revenue. However, the company’s growth in concentrate sales triggered an increase in excise tax worth $2.76 million, according to Sedar filings — offsetting net revenue gains versus the prior year. Concentrates attract higher excise taxes as a percentage of revenue than flower products.
Rubicon posited a three-pillar strategy this year focused on yield and quality, improving product mix to optimize margin, and obtaining certifications for international access, “each of which we expect will have a positive impact on our profitability and cash flow.”
“Our strategy has proven successful as evidenced by Rubicon achieving 8.6%3 market share of the premium flower and pre-roll market in the second quarter of 2022,” the company said in the release. “We continue to expect the premium market to outpace the growth of the total market in Canada as it has done in other leader markets and believe that Rubicon Organics is well positioned to take advantage of this momentum as consumer preferences shift.”
The company sees itself as operating cash flow positive and adjusted EBITDA profitable for the rest of this year, too.
“The growth in the rate of sale of our Simply Bare Organic and our 1964 Supply Co. brands has led us to being one of the fastest growing licensed producers in Canada in Q2 2022,” McConnell said. “We expect to see our products in international markets in either late 2022 or the first part of 2023. ”
Debra BorchardtJanuary 7, 2019
It’s time for your daily hit of cannabis financial news for January 7, 2018.
On The Site
Jobs
As of 2018, there are more full-time cannabis workers than there are librarians, and the number is growing. These are not minimum wage positions either – retail managers, agriculture experts, and extraction technicians all earn attractive salaries and desirable compensation packages.
Patents
The number of global cannabis patent applications has doubled since 2008, Cannabis Law Report can reveal, as 2019 promises to be a landmark year for marijuana intellectual property. The World Intellectual Property Organization said approximately 10,246 cannabis-related applications have been filed since 1978 under the Patent Cooperation Treaty (PCT), with 6,137 applications coming after 2008. Experts say the number could potentially be even higher as firms exploit loopholes to snatch patents related to cannabis such as growing or treating addictions, without expressly referring to marijuana in their application.
In Other News
Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) signed a definitive agreement to acquire Advanced Grow Labs LLC (AGL) and enter the Connecticut market. AGL is one of only four companies in Connecticut licensed to grow and process cannabis. The Connecticut-based cannabis company operates a 41,000 square foot manufacturing facility in West Haven with the potential to expand. In addition, AGL has a 46 percent ownership of a recently-awarded dispensary that will be located in Westport which makes it the only vertically licensed company in the state. Upon the close of AGL and the other recently announced acquisition, GTI will have 12 manufacturing facilities and licenses for 85 retail locations across 11 states.
Acreage Holdings, Inc. (CSE: ACRG.U) closed the acquisition of Florida-based Nature’s Way Nursery of Miami, Inc. (“Nature’s Way”). Nature’s Way was awarded a vertically integrated operating license last summer and will operate the business as Green Owl Pharms, the name under which it was awarded the operating license. The previously disclosed transaction paves the way for Acreage to bring cannabis products to Florida residents throughout the state. As of December 28, 2018, there were more than 209,000 total cannabis patients in Florida according to the Florida Department of Health Office of Medical Marijuana Use.
CannAmerica Brands Corp. (CSE: CANA) (OTCQB: CNNXF) entered into a binding letter of intent to create a joint venture with Invictus MD Strategies Corp. (TSXV: GENE) (OTCQX: IVITF) and CBDistribution Company Ltd. with the intention of acquiring hemp biomass for extraction into CBD isolate using purpose-built facilities for large-scale CBD extraction.
iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) opened its first and flagship dispensary in New York on December 30, 2018. The dispensary, located at 202 Flatbush Avenue directly across from Barclays Center and Atlantic Terminal, is the first in Brooklyn, New York’s largest borough, with a population of roughly 2.6 million people.
CLS Holdings USA, Inc. will commence trading on the Canadian Securities Exchange, or CSE, at the opening of the market on January 7, 2019, under the ticker symbol “CLSH”. Cannabis Life Sciences is the developer of a patented extraction and conversion methodology that has the potential to increase both yield and quality of cannabinoid oils extracted from cannabis plants.
Harvest One Cannabis Inc. (TSX-V: HVT) (OTCQX: HRVOF) said that its shares of common stock were approved for trading on the OTCQX® Best Market operated by OTC Market Group.
Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) said that its common shares are now trading on the OTCQX Best Market under the ticker symbol “ROMJF”. Rubicon Organics’ common shares will continue to trade on the Canadian Securities Exchange under the ticker “ROMJ”.
Canopy Rivers Inc. (TSXV: RIV) announced that its 49%-owned joint venture PharmHouse Inc. has entered into a syndicated credit facility with the Bank of Montreal, as agent and lead lender, and with Canadian Imperial Bank of Commerce and Concentra Bank as lenders. Under the terms of the Credit Facility, the Lenders will provide PharmHouse up to C$80 million of secured debt financing at a rate of interest that is expected to average in the mid-to-high 5% per annum range over its three-year term.
Dixie Brands Inc. (CSE: DIXI.U), one of the cannabis industry’s leading consumer packaged goods companies, has announced the hiring of two new marketing executives. Andrew Floor joins as Vice President of Marketing, Dixie Brands, and Hilal Tabsh joins as Vice President of Marketing and Distribution, Aceso Wellness.
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