It’s time for your Daily Hit of cannabis financial news for April 30, 2019.
On The Site
After the market closed on Monday, Vancouver-based Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) reported its fiscal 2018 results for the year ending December 2018 in Canadian dollars. The company delivered$18.8 million in revenue versus 2017’s $16.1 million. The net losses for 2018 rose to $29.0 million versus last year’s $17.5. The company attributed the increase in net losses to SG&A expenses increasing by $10.5 million during the year. The increase was primarily due to the company’s growth in 2018 as US operations
Texas Continues To Take Baby Steps Towards Legalization
The Texas Tribune reported on Monday that the House of Representatives approved a bill that would decriminalize possession of cannabis. Rep. Joseph Moody (D), the chief sponsor of the bill, still had to amend it in order to get the bill approved. His original version had a lower fine of $250 and it would have dropped down low-level possession to a civil infraction instead of a class C misdemeanor.
How Risk Management Can Make Marijuana Businesses Bulletproof
Envision managing the risk of a volatile, staggeringly lucrative, 100 percent federally legal enterprise? Toss in ridiculously inconsistent federal, state and local regulations, insanely evolving technologies and efficiencies, and an industry-wide disinclination to ever “play by the rules.” However, when armed with decent risk management fundamentals, a marijuana related business can diminish most horrible outcomes, fortify the enterprise’s sustained growth, and maybe even get rich along the way.
In Other News
Driven Deliveries Inc. (OTCMKTS: DRVD), the only publicly traded cannabis delivery company, has announced that it has entered into a non-binding Letter of Intent to acquire Ganjarunner, Inc., a Los Angeles-based cannabis delivery company. Ganjarunner has an existing customer base of over 10,800 customers, 82% of whom are repeat customers. “This acquisition will provide us with a stable revenue base from which we can continue to grow our revolutionary cannabis delivery platform,” commented Mr. Brian Hayek, President of Driven Deliveries. “Driven will continue to target similar acquisition candidates which we believe to be accretive to our business and provide our partners and us with strategic advantages in this industry.”
Today, Indus Holdings Inc. began trading on the Canadian Securities Exchange under the symbol INDS. Indus is a vertically integrated cannabis company based in Salinas, California. The listing was made possible through a reverse takeover of the Toronto-based company Mezzotin Minerals Inc. “This long-anticipated move to the Canadian Securities Exchange creates a world of opportunities for Indus to build upon our success in California and expand into new markets,” said Indus co-founder and CEO Robert Weakley in a statement. “Having access to additional capital will allow us to grow at a more rapid pace, furthering Indus’ position in the cannabis industry.”
KushCo Holdings, Inc. (OTCQB: KSHB) announced that it has entered into a definitive agreement with an institutional investor for a private placement of $21.3 million. Canaccord Genuity LLC is acting as the sole placement agent. The Note will be an unsecured senior obligation of the company and will mature 18 months following the closing data. The offering is expected to close on or around April 30, 2019. ‘”We are thrilled to announce this unsecured, non-dilutive financing structure to support our company’s rapid growth. The terms of this note represent a dramatic improvement in our ability to secure financing with a lower cost of capital and is indicative of more attractive financing alternatives within the cannabis industry,” said KushCo’s CEO Nick Kovacevich.