SOL Global Archives - Green Market Report

Debra BorchardtDebra BorchardtAugust 30, 2019
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6min4710

 SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) reported a loss of $43.5 million for the first fiscal quarter versus a loss of $2.9 million for the same period in 2018.  The loss came to 81 cents per share for the quarter. The company attributed the loss to a devaluation of cannabis stocks totaling $33.5 million and expenses, with total expenses coming to $10.9 million for the quarter.

The main culprit was Sol Global’s investment in Verano Holdings, which is set to be acquired by Harvest Health & Recreation. As such, the Verano share price is linked to Harvest’s share price which has decreased significantly. In just that quarter the company experienced an unrealized loss of $55.9 million.

“It was a tough quarter for the Cannabis sector and that’s the primary reason for our unrealized loss.  The positive is that’s exactly what it was, unrealized. Brady continues to execute with tremendous success on CannCure and its transformation to Bluma Wellness while strategically building out his operational team and The Bluma Board. Paul Norman has built the foundation of an executive team and board that is simply unprecedented in this newly pioneered sector and their execution is what you would expect from a team of this caliber.” said SOL Global’s Chief Investment Officer Andrew DeFrancesco. “The investment team and I continue to provide the financing for growth while continuing to provide guidance toward strategy and execution for those core holdings. ”

The downturn hasn’t slowed the company. Last month, SOL Global bought 42% of Heavenly Rx Ltd. at a price of approximately $0.40 per share. The company also signed an agreement to acquire ECD, Inc., which operates as Humboldt County’s Northern Emeralds for $120 million payable in common shares. Northern Emeralds is expected to operate under Bluma Wellness.

SOL Global also plans to buy the Michigan-based MCP Wellness Inc. for a total of $35 million in cash and $115 million in common shock. MCP Wellness is presently operating three dispensaries in the Detroit area, is opening a fourth dispensary in Ann Arbor, and is finalizing plans to construct a cultivation facility.

In addition to that acquisition, SOL Global has signed a binding LOI to acquire six licensed cannabis dispensary companies and all One Plant intellectual property in California for $17 million, payable by $5 million in cash and $12 million in common shares, from Three Habitat Consulting Holdco Inc. that will subsequently operate under the nationally recognized “One Plant” brand. One Plant is expected to be the brand name of all of Bluma Wellnesses anticipated 49 retail stores spread throughout Florida, Michigan and California.


William SumnerWilliam SumnerAugust 8, 2019
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5min3570

It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported financial results in Canadian dollars for the second quarter and first-half ending June 30, 2019, with net revenue climbing 202% to $10.2 million over last year’s $3.4 million. The revenue increased 58% sequentially from $6.5 million in the first quarter of 2019. The company attributed the increase to sales in CBD oil, which carries no excise tax reduction and increased sales of dry flower.

GrowGeneration

Today, GrowGeneration Corp. (OTCQX: GRWG) announced the release of the financial results for the fiscal quarter ending on June 30, 2019. Net revenue for the quarter was $19.48 million, up from $7.15 million in the same period of the previous year. The company attributes the increase in revenue to the addition of 14 new retail stores

SOL Global

SOL Global Investments (CSE: SOL)(OTCPK: SOLCF) is changing from an international cannabis investment company to a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange. In addition to the business designation change, the company is also changing its name to Bluma Wellness.

In Other News

Diego Pellicer

Diego Pellicer Worldwide, Inc. (OTCQB: DPWW) announced that its Denver licensee reported record sales for the month of July and that its sales average has risen by 8.56%. “Diego Pellicer – Colorado has clearly proven that premium products plus outstanding customer service and a world-class shopping experience is a winning formula for success,” said Diego Pellicer CEO Ron Throgmartin.

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) announced that in July it served on average 1,937 customers per day with an average sale of $90.41 from the Planet 13 Las Vegas Cannabis Entertainment Complex. In May, the company accounted for roughly 10% of all cannabis sales in the state of Nevada, with a customer conversion rate of 60%. “We continue to drive impressive results from the SuperStore’s original 16,000 sq. ft. dispensary footprint in advance of the Phase II,” said Larry Scheffler, Co-CEO of Planet 13. “In May we reached an impressive milestone, the SuperStore accounted for 10% of all dispensary sales in Nevada. I’m optimistic we will see this trend continue once the department of taxation releases June and July numbers.”

C21 Investments

C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF) released its unaudited financial results for the quarter ending on July 31, 2019. Unaudited revenue grew from $7.7 million to $9.8 million, representing a quarter-over-quarter increase of 27%. The unaudited gross margin rose from 43% to 49%. The company will release its certified financial results on or around September 12, 2019.

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced that it has received approval to acquire 100% 100% of the membership interests of Gloucester Street Capital, LLC, the parent company of Valley Agriceuticals (Valley AG). Valley AG is one of ten vertically integrated medical cannabis license holders in the state of New York. The license will give Cresco the right to operate one cultivation facility and four dispensaries in the state. The acquisition is expected to close by the end of the August.


Debra BorchardtDebra BorchardtAugust 8, 2019
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3min5090

SOL Global Investments (CSE:SOL)(OTCPK:SOLCF) is changing from an international cannabis investment company to a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange. In addition to the business designation change, the company is also changing its name to Bluma Wellness.

The company explained that “Bluma” is an ancient Hebrew word which means to flower, bloom or blossom. It selected this name based on a key principle of the business: to ensure that its patients and consumers utilize the plant-based products to enhance their daily lives, namely to bloom and thrive.

Brady Cobb, the CEO of SOL Global, says the timing of the proposed change of business is strategic, stating: “One of the innate strengths of SOL Global’s management is knowing when to enter a market, as is evidenced with our early success in Canada and Florida. We have planned this transition and the market entrance of our MSO to coincide with the rapid growth of the legal U.S. cannabis marketplace amid a presumptive tail wind from federal policy reform initiatives related to cannabis, a process I’ve been deeply involved with. We believe that the timing of our MSO’s entrance to the market will position us well to capture that growth.”

The company said in a statement that its initial operations will include assets in three (3) of the top ten (10) cannabis markets by revenue in the U.S., as forecasted by ArcView market research – Florida, Michigan and California.  SOL GLobal, now Bluma, said that it has focused in on a path to profitability by keeping the capital expense and the operating expense low with an efficiency-driven model of integrating operations and streamlining management, brand deployment and its  proprietary delivery models across all three states.

Mr. Cobb said that the new name was chosen to be synergistic with the company’s new direction, stating that “We chose the name Bluma Wellness, as an appropriate way to honor the true intent of each seed that we cultivate, harvest, and deliver as a product to ensure that every single one of our customers has a consistent and enriching experience that allows them to flourish.” He added: “We also look forward to bringing investors a new kind of MSO, one that is focused on profitability in the short term through operational and logistical efficiencies and a keen eye on the bottom line.”


Debra BorchardtDebra BorchardtJuly 30, 2019
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9min3430

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF)  released its financial results for the year ending March 31, 2019 with net income of $94.9 million or $2.30 per diluted share.

Most of the income was based on a September 2018 sale of its LATAM investment to Aphria. The fair market value of the transaction was $297 million and the cost related to the investment was $93 million leaving a gain on the sale of $204 million. The company disclosed that it was aware of two legal actions relating to the disposal of the LATAM assets but noted that no amounts have been accrued in the financial statements. SOL Global almost doubled its payroll costs going from $6.7 million in 2018 to $13.3 million in 2019.

SOL Global’s Chief Investments Officer Andy DeFrancesco believes that the fiscal-year results validate the strategic creation and direction of the company, “Brady Cobb, SOL Global’s CEO, has been by my side since building the foundation of the US Cannabis Market since 2015. Specifically, Brady worked with the state of Florida to shape the legal and regulatory structure of one of the most coveted markets in the cannabis sector, while I built a structure and strategy around partnerships and financing.”

DeFrancesco added, “After early success in Canada, and followed by early success in the state of Florida, it was clear that the US cannabis market was poised for a strong run and incredible growth.  We took control of a faltering and nearly insolvent single-focused biotech venture and created what SOL Global has become, by assembling one of the best THC and CBD portfolios in the sector.”

DeFrancesco concluded “We moved quickly with our second Florida acquisition, 3 Boys Farm, as well as key investments in leading THC and CBD brands and operators throughout the US and California. We implemented a vision for growth in multiple verticals within the Cannabis sector and used our deep roots into the quickly evolving US Cannabis legislative reform efforts (where Brady is a huge contributor) to stay two steps ahead of our competition. We also looked to what we saw as related businesses, outside the box and towards the future.  It’s now time for SOL Global to focus on the growth of its THC operations via our new MSO and to foster the expansion of our vertically integrated Hemp & CBD Operations throughout the U.S., as well as Italy, the United Kingdom and Brazil under the most amazing teams we have assembled.”

Post Fiscal 2019

On April 8, 2019, SOL Global acquired CannCure, an entity that indirectly holds a 100% interest in 3 Boys Farms, LLC for C$55,128,200 or $41,207,519) which was partially satisfied by the issuance of 7,317,500 of the company’s common shares at a negotiated price of CAD $4.00 per share totaling $29,270,000 (USD$21,878,878).

There is a unique footnote with regards to 3 Boys Farms. If SOL Global agrees to sell 3 Boys within two years of the closing date, it will pay an earn-out structured as follows according to the company: (i) the company and the sellers will each receive funds from the sale proceeds as reimbursement of the amounts each had invested into 3 Boys; and (ii) any remaining amount from such sale proceeds would be split, with 42% of any additional proceeds being earned by the Company and 58% of any additional proceeds being earned by the sellers. If SOL Global doesn’t sell 3 Boys within two years of the closing date, it will be required to pay the sellers $107,025,000 (USD$80,000,000).

Following the end of the fiscal year, SOL Global completed a $50,000,000 private placement financing on July 8, 2019 by way of the issue and sale of a senior secured non-convertible debenture. In addition to the deal, the company announced that its President Jonathan Gilbert was resigning as the President of the wholly-owned subsidiary, Impact Biosciences Inc. (formerly Scythian Biosciences Inc.).

On July 29, 2019, the company announced a further investment into Heavenly Rx, bringing its total investment to $23,909,00.

Cobb went on to add, “By the end of 2019, the companies we’ve founded and have built from the ground up — our CBD-focused HeavenlyRx and our soon to launch multi state operator, 3 Emeralds — are expected to be operating independently, bringing months of hard work to fruition.”

HeavenlyRx

HeavenlyRx Ltd is planning to list publicly as an independent operating CBD, Hemp and Wellness company in the U.S. which could happen in August 2019. HeavenlyRx, is under the leadership of former Kellogg’s North America President Paul Norman, who is performing a strategic review of the board and management and the team will be announced once this has been completed.  Additionally, as the company previously released, HeavenlyRx has closed on several of its key portfolio company investments including Blühen Botanicals (cultivation, processing and oil/isolate processing and production), Jones Soda (a leading premium soda-maker based in Seattle, Washington), TRU Brands (emerging health and wellness-focused food company), and Airganics (a company that develops high-performance wellness products). These portfolio companies consist of established brands that are generating revenue and soon to launch, innovative products, all of which have a unique application for the use of CBD.


Debra BorchardtDebra BorchardtJuly 29, 2019
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4min3150

It’s time for your Daily Hit of cannabis financial news for July 29, 2019.

On The Site

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.

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.

Fake CBD
Hundreds of people have been benefited from using Cannabidiol (CBD) – a substance scientifically proven to be safe for human consumption – even for children!
It not only has a wide range of therapeutic benefits but also has been useful for treating numerous serious ailments and disorders. However, not all products touted as “natural CBD oil” are actually as natural they claim to be.

In Other News

SOL Global Investments Corp. (SOL.CN) (SOLCF) has purchased an additional 16,766,250 common shares in the capital of HeavenlyRx Ltd. at a price of $0.40 for an aggregate subscription amount of CAD$23,909,000.
The subscription is part of a larger private offering by HeavenlyRx of Heavenly Shares. As a result of this subscription, SOL Global now holds 44.53% of the issued and outstanding Heavenly Shares and the other shareholders of Heavenly Rx collectively hold the remaining 55.47%. The Heavenly Shares are subject to an indefinite hold period under applicable Canadian securities laws.

Radient Technologies Inc. (TSX Venture: RTI)(OTCQX: RDDTF) has issued an aggregate of 93,151 common shares to a third-party consultant for services provided during the quarter ended June 30, 2019, pursuant to the shares for service agreement previously approved by the TSX Venture Exchange. The common shares were issued at the TSX Venture Exchange 15 day VWAP share price of CAD $0.87.

Iconic Northern California cannabis company Harborside Inc. (CSE: HBOR) has appointed Mattio Communications as its investor relations advisors. Mattio is a New York-based communications firm which provides public and private cannabis companies with an array of services designed to maximize shareholder value through customized strategic investor relations programs (see https://www.mattio.com/). Harborside has also engaged Mattio to provide media and public relations support in an effort to build awareness of the Harborside brand and to capitalize on the company’s heritage as one of the oldest, largest and most respected cannabis retailers in the world.


William SumnerWilliam SumnerJuly 17, 2019
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8min3260

It’s time for your Daily Hit of cannabis financial news for July 17, 2019.

On the Site

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) plans to acquire all of the shares of privately-held Toronto-based Truverra Inc. in a deal valued at $20 million. Truverra is known for its wholly-owned subsidiaries, Canadian Clinical Cannabinoids Inc. (CCC) and Truverra (Europe) B.V. The move is intended to boost Supreme’s extract offering for later this year when Canada’s market will open up to such products.

SOL Global

SOL Global Investments Corp. (CSE:SOL) (OTCPK:SOLCF) has invested $6.5 million in its portfolio company CannCure Investments Inc. The move is intended to fuel the growth of its position throughout the cannabis markets of Florida, Michigan, and California… CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms,  a Florida cannabis company with a state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment.

Curaleaf

Curaleaf Holdings Inc. (NURLF) stock popped almost 20% on the news it was acquiring privately-held multi-state operator Grassroots or GR Companies Inc. in a deal valued at $875 million. The deal will be made up of 108.8 million shares and $75 million at the closing which is expected in early 2020. If the deal is completed, Curaleaf’s footprint grows from 12 states to 19 states and putting it within reach of Acreage Holding’s (ACRG.U) size.

In Other News

Plus Products

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) announced revealed the rebranding of its line of low-dose cannabis edibles. Guiding the rebrand was research conducted by Henry J. Rak Associates and designed by Partners & Spade. “Cannabis can be confusing. We hope our new system will help reduce some of that confusion,” said Jake Heimark, Plus Products CEO and Co-founder. “We worked with experienced market researchers to find out why people use cannabis, then translated those findings into an easy-to-use system of cannabis. We are excited to help our customers Uplift their experiences, bring Balance to their everyday, and Unwind without getting unwound.”

PHILTER Labs

The technology company PHILTER Labs, Inc. announced that it has raised $3 million in growth funding. The company specializes in crafting vaporizer products and accessories. Leading the fundraise was Bravos Capital, Explorer Equity, and an undisclosed cannabis-focused private equity firm. “The proprietary technology behind PHILTER made it a very attractive investment opportunity for us; the company’s future product roadmap clearly represents a revolutionary step forward in vape filtration technology, as opposed to the more incremental steps that most vape hardware companies are working on,” said Jeff Kendig, Managing Partner of Bravos Capital.


Debra BorchardtDebra BorchardtJuly 17, 2019
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2min3830

SOL Global Investments Corp. (CSE:SOL) (OTCPK:SOLCF) ) has invested $6.5 million in its portfolio company CannCure Investments Inc. The move is intended to fuel the growth of its position throughout the cannabis markets of Florida, Michigan, and California.

“SOL’s $6.5 million investment into CannCure is to continue strengthening our foundation and positioning the company as a leader in the dominant markets of Florida, Michigan, and California,” said Andy DeFrancesco, SOL Global’s Chairman, and Chief Investment Officer. “CannCure’s expansion is an integral part of SOL Global’s overall strategy and our goal to dominate all aspects of the legal cannabis, hemp and CBD markets here in North America and Europe.”

CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms,  a Florida cannabis company with a state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment. The investment brings SOL Global’s ownership of CannCure to 97.8%.

CannCure said it will use the investment to complete the agreements it has in place for acquiring MCP Wellness, giving the company the rights to two Michigan cannabis cultivation licenses, a Michigan cannabis processing license, and three fully licensed cannabis provisioning centers in Michigan. It would also complete the Northern Emeralds deal and the Three Habitat Holdings acquisition.

Once these acquisitions are complete, Canncure will combine them into one multistate operator that will have operations in three of the top 10 state cannabis markets by revenue, with vertically integrated operations across all three states and approximately 46 retail locations in operation by the end of 2020.

In a statement, the company said that when CannCure completes the acquisitions in California and Michigan, as well as paying $80 million to the former owners of CannCure,  SOL Global expects to own approximately 20.5% of the resulting business.

 


Debra BorchardtDebra BorchardtJuly 8, 2019
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7min6350

SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) completed a $50 million private placement financing by issuing and selling a senior secured non-convertible debenture to an arm’s length institutional investor. In addition to the deal, the company announced that its President Jonathan Gilbert was resigning as the President of the wholly-owned subsidiary, Impact Biosciences Inc. (formerly Scythian Biosciences Inc.).

The company also stated that it no longer planned to spin off Impact into a new, independent public company. In a statement, SOL Global said that Impact would continue to assess its options in regard to the continuing research and development of its proprietary Cannabinoid combination drug candidate for the treatment of concussions and traumatic brain injury, which is being conducted by the University of Miami and its world-renowned neuroscientific team. The mission of the study is to bring to market the first accepted cannabinoid drug regimen for concussive treatment.

Plans For Proceeds

SOL Global said that it plans to use the net proceeds for working capital and general corporate purposes and to primarily finance the continued build-out of SOL Global’s robust hemp and CBD strategy via Heavenly Rx Ltd. and the build-out and acquisition of additional assets in FloridaMichigan, and California for its previously-announced, new cannabis multi-state operator.

Terms

The Debenture bears an interest rate of 6.0% per annum and will mature two (2) years from the date of closing unless such maturity date is otherwise shortened due to the occurrence of certain independent milestones as set out within the terms and conditions of the Debenture. The Debenture may be repaid by the Company in cash or in-kind with securities held within the Company’s investment portfolio. The Debenture is not dilutive to the Company’s shareholders.

Controversy

SOL Global is losing its President at a time when the company is facing distractions from its Chairman Andy Defrancesco. The Chairman was the subject of an investigative piece by Teri Buhl that questioned whether DeFrancesco adequately disclosed the nature of a transaction and whether it involved related parties. DeFrancesco then sent a derogatory text, which Buhl made public.

DeFrancesco’s battle with Teri Buhl isn’ the only controversy he is facing. Defrancesco has been sued for defamation, conspiracy to defame and tortious interference in a business relationship by New Frontier Data’s Giadha Aquirre De Carcer. Merida Capital is also an investor in New Frontier Data. Defrancesco has said he is an investor in Prohibition Partners, a research company that had a falling out with New Frontier over a report the two companies agree to create jointly.

When the relationship was terminated, both companies released a report with similar sounding titles within a week of each other. Both companies have accused the other of borrowing intellectual property and threatened lawsuits. Merida has defended New Frontier and the spat doesn’t seem to be having any effect on the relationship with SOL Global. Merida agreed to sell its Michigan subsidiary MCP Wellness, Inc. to SOL Global in a deal valued at $150 million.

SOL Global seems to experience a great deal of turnover in the C-suite.  The company released this list of changes in December:

The following changes to management and Board have occurred during the past 12 months:
 On November 1, 2018, Andy DeFrancesco was appointed Chief Investment Officer.
 On October 3, 2018, Brady Cobb was appointed Chief Executive Officer replacing Rob Reid who remains an
active member of the Board.
 On September 4, 2018 Andy DeFrancesco was appointed to the title of Chairman of the Board.
 On September 28, 2018, Peter Liabotis was appointed Chief Financial Officer replacing Jonathan Held.
 On July 30, 2018, Brady Cobb was appointed to the Board.
 On July 26, 2018, George Scorsis resigned from the Board.
 On August 1, 2018, Jonathan Gilbert resigned from the Board.
 On April 25, 2018, Rob Reid was appointed Chief Executive Officer
 On April 25, 2018, Roger Rai rejoined the Board.
 On April 25, 2018, Renah Persofsky and Vic Neufeld resigned from the Board and Jonathan Gilbert stepped
down as Chief Executive Officer.
 On March 7, 2018, Renah Persofsky and Rob Reid joined the Board and Roger Rai and Gary Leong resigned
from the Board.
 On February 15, 2018, the Company appointed Professor Michael Barnes as its Chief Medical Officer.
 On January 15, 2018, the Company announced the appointment of Vic Neufeld, CEO of Aphria Inc. (TSX: APH),
and George Scorsis, CEO of Liberty Health Sciences Inc. (CSE: LHS) to the Board. The Company also announced
Renah Persofsky joined its advisory board and that Peter Benz and Michael Petter had resigned from its Board.

SOL Global Plans

Last month SOL Global had announced it was acquiring California-based ECD, Inc., which operates as Northern Emeralds in a deal valued at $120 million. The purchase price will be satisfied by the issuance of common shares in CannCure Investments Inc. and the deal is expected to close on or before August 1.

Northern Emeralds is located in Humboldt County, California and is a cannabis cultivation, processing, and distribution company that has six licensed dispensary companies in the state that will operate under the nationally recognized “One Plant” brand. SOL Global said it intends to open One Plant-branded dispensaries throughout California (a total of 20 operating and licensed dispensary companies), Florida, and Michigan.

 

 


William SumnerWilliam SumnerMay 16, 2019
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7min4460

It’s time for your Daily Hit of cannabis financial news for May 16, 2019.

On the Site

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) is acquiring Canadian-based Blissco Cannabis Corp. (CSE: BLIS) (OTCQB: HSTRF) in an all-stock deal valued at C$48 million. Supreme would be buying all of Blissco’s stock. Blissco Cannabis is a Canadian wellness cannabis brand based in British Columbia and a multi-licensed processor, cultivator, and distributor of premium cannabis.

SOL Global

SOL Global Investments Corp.  (CSE: SOL) (OTCQB: SOLCF) has entered into letters of intent to acquire California-based ECD, Inc., which operates as Northern Emeralds in a deal valued at $120 million. The purchase price will be satisfied by the issuance of common shares in CannCure Investments Inc. and the deal is expected to close on or before August 1.

United Australia- A National Push for Medicinal Cannabis

In recent years, there has been a colossal national push by both the Australian public and the medical industry for the Australian government to recognize and support the numerous medical benefits offered by medicinal cannabis therapy.

In Other News

Elev8 Brands

Elev8 Brands, Inc. (OTCMKTS: VATE) announced the release of their financial results for the first quarter of 2019. Revenue for the quarter was approximately $166,000, which is nearly half of all the revenue the company generated in 2018 ($372,000), and gross profit was roughly $126,576. The net loss for the quarter was approximately $50, 704. “This is an extremely exciting time to be in business,” said Ryan Medico, CEO of Elev8 Hemp Inc. “We are so thrilled to be where we are today and to have achieved so much. These CBD-infused beverages have become the catalyst for exponential growth this year. We are currently working with a few distributors, but our team has 11 new distributors in our sales process. As a result, it’s very likely we will see revenues double in the second quarter.”

Helix

Helix TCS, Inc. (OTCQB: HLIX) announced that they have filed their financial results for the first quarter of 2019. Revenue for the rose by 199% to $3.37 million. The gross margin was 43% ($1.45 million). “Due to the many delays in licensing and program go-lives that the industry saw in 2018, we anticipate 2019 to realize some of the massive potential of key emerging markets, such as the state of California, in addition to a plethora of new markets coming online and beginning to shape their own legal programs,” said Zachary L. Venegas, Executive Chairman and CEO of Helix TCS, Inc. “Our business strategy is built such that our revenue will continue to grow organically alongside the expansion of the industry, which we look forward to maintaining as 2019 progresses.”

Veritas

Veritas Pharma Inc. (CSE: VRT) (OTC: VRTHF) (Frankfurt: 2VP) announced that it is taking steps to restructure its wholly owned subsidiary Cannevert Therapeutics Ltd. (CTL). According to the company, the restructuring is necessary because of both permanent and temporary cutbacks of the number of staff CTL. Senior members of CTL’s research will remain with the company, and Dr. Michael Walker and Dr. Andrew Hagel will lead the restructuring.

Green Growth Brands

Green Growth Brands, Inc. (CSE: GGB) (OTCQB: GGBXF) announced that it has completed the buyback and cancellation of 27.3 million common shares of the company held by GA Opportunities Corp. for C$89 million, or roughly C$3.26 per common share. “We are pleased to have completed our buy back of the shares previously held by GA Opportunities,” said Peter Horvath, CEO of GGB.  “While we continue to focus on the rapid expansion of GGB, the opportunity to repurchase these shares well below the current market price immediately and directly increased shareholder value.”


Debra BorchardtDebra BorchardtMay 16, 2019
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5min14160

SOL Global Investments Corp.  (CSE: SOL) (OTCQB: SOLCF) has entered into letters of intent to acquire California-based ECD, Inc., which operates as Northern Emeralds in a deal valued at $120 million. The purchase price will be satisfied by the issuance of common shares in CannCure Investments Inc. and the deal is expected to close on or before August 1.

Northern Emeralds is located in Humboldt County, California and is a cannabis cultivation, processing, and distribution company that has six licensed dispensary companies in the state that will operate under the nationally recognized “One Plant” brand. SOL Global said it intends to open One Plant-branded dispensaries throughout California (a total of 20 operating and licensed dispensary companies), Florida, and Michigan.

“Simply put, Northern Emeralds is the most advanced cannabis producer in the most famous cannabis-producing region in the world, and SOL Global is thrilled to integrate the Northern Emeralds family within our comprehensive U.S. cannabis strategy via the MSO,” said Brady Cobb, CEO of SOL Global. “This partnership enables SOL Global to deploy Northern Emeralds’ best in class genetics, method and data-based cultivation, and processing operations across our entire portfolio. This integration, combined with the carefully curated retail concept and dispensary locations offered by One Plant – as well as SOL Global’s roster of consumer-favorite brands – further cements SOL Global’s and ultimately the MSO’s position as a vertically-integrated multi-state powerhouse that is poised to drive substantial revenue growth in three of the most important cannabis markets in the United States.”

One Plant is a chain of nationally-recognized cannabis dispensaries with additional planned locations throughout CaliforniaFlorida, and Michigan.  One Plant dispensaries will also feature some of the best-known brands in the cannabis industry, including products from Northern Emeralds, Honey, Plus Brands, Venice Cookie Company, Old Pal, DomPen, Big Pete’s, Biscotti, and Cannabis Quencher, among many others. SOL Global said that One Plant intends to open nine dispensaries throughout California in 2019, and an additional eleven dispensaries in the state in 2020 and is currently in various development and approval stages for dispensary locations in Monterey CountyPalm SpringsContra CostaAtwaterGoleta, and Placerville, among others.

One Plant intends to open five dispensaries in Florida in 2019 and an additional eight dispensaries in Florida in 2020. The MSO, once it is fully established, intends to convert three existing Michigan dispensaries to One Plant-branded locations in 2019, intends to open an additional four dispensaries in Michigan in 2019, and intends to open an additional six locations in Michigan in 2020. In total, One Plant intends to have 46 dispensary locations in operation throughout the three states by the end of 2020.

“I am thrilled to join the Northern Emeralds team and brands with the SOL Global and One Plant families” said Cody Stross, founder and C.E.O. of Northern Emeralds. “We are passionate about ‘sharing with the world’ that which we started in a garage in Humboldt County over eight years ago. We cultivate the ‘highest intent of the seed’ and I can think of no better partnership to realize this dream.”



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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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