Sunniva Archives - Green Market Report

StaffStaffJuly 6, 2020
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6min2370

It’s time for your Daily Hit of cannabis financial news for July 6, 2020. 

On The Site

Fire & Flower 

The relationship between Fire & Flower Inc.  (OTCQX: FFLWF) and its strategic investor Alimentation Couche-Tard Inc. (OTC: ANCUF) had signaled that someday the convenience store chain Circle K would get involved with cannabis. It seems the day is getting closer as Fire & Flower announced the openings of its first two cannabis retail stores adjacent to Circle K locations in the province of Alberta. 

Fire & Flower’s plan is that it will gain from the high traffic at these Circle K locations that will be convenient for cannabis customers. The company said it believes it will maximize the benefit of the Spark Perks program and Spark Fastlane online ordering services at conveniently located stores. 

Havn Life 

Medical cannabis legalization is a fait accompli in thirty-three states and counting and eleven states have legalized recreational marijuana, suggesting a brighter horizon for other restricted plant medicines as well. Enter psychedelic mushrooms, otherwise known as Psilocybe spp., and Susan Chapelle, co-CEO of the newly-launched Havn Life, a company dedicated to developing a range of standardized, quality-controlled psilocybin products to be used by researchers. 

Chapelle (whose bio includes being the first female steel rigger in North America, a two-time elected politician, and boasts years spent lobbying for health policy change), launched Havn Life as part of a larger mission to build evidence-informed natural healthcare products that help people manage their own healthcare. 

In Other News 

Ayr Strategies 

Ayr Strategies Inc. (OTCQX: AYRSF) announced preliminary financial and operating results for the month of June and three months ended June 30, 2020. Revenue for June is expected to set an all-time monthly record at approximately $12.7 million, representing a 14% increase over the Q1 monthly average and a 46% increase over June 2019. Revenue for the second quarter is expected to be approximately $28.4 million, which represents a 15% decrease from the prior quarter due to COVID-related closures in April and May. 

“Despite the many challenges we faced during the second quarter, where our revenues fell essentially to zero at the beginning of April given the temporary regulatory restrictions in Nevada and Massachusetts, today’s preview of our Q2 2020 results shows our business is stronger than ever before,” said Ayr CEO Jon Sandelman. “In addition to increasing adjusted EBITDA and cash flow from operations for the quarter, we set monthly records in June for both revenue and adjusted EBITDA, as well as in income from operations.” 

Sunniva

Sunniva Inc. (OTCQB:SNNVF) said that its wholly owned subsidiary, 1167025 B.C. Ltd. (“1167025”) did not receive confirmation of the waiver of conditions on July 2, 2020 with respect to the previously announced sale of its property at Okanagan Falls, British Columbia, between 1167025 B.C. Ltd. and an independent real estate investment fund. As per the Sales Agreement, the failure to waive or fulfill any of the conditions will cause the contract to be terminated. On July 3, 2020, the Buyer advised the Company that it does not intend to proceed with the purchase of the property. 


Debra BorchardtDebra BorchardtJune 18, 2020
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7min9260

Sunniva Inc. (OTCQB:SNNVF) said that it has received notice from the British Columbia Securities Commission that the company has been placed on the default issuers list as a result of its failure to file its annual audited financial statements and accompanying management’s discussion and analysis, and related CEO and CFO certifications, as required by National Instrument 52-109, for the financial year ended December 31, 2019 prior to the filing deadline on June 15, 2020.

Failure to correct the above-noted deficiencies may result in further action including the issuance of a Cease Trade Order. Sunniva said that it has prepared its annual financial statements and plans to engage its auditors and begin the audit of the annual statements following confirmation of the waiver of conditions with respect to the sale of its property at Okanagan Falls, British Columbia, announced on June 8, 2020.

The waiver of conditions for the OK Falls Transaction is expected on July 2, 2020.  Sunniva said it is unable to estimate when the Annual Filings will be completed and filed.

Road To Ruin

Last year, Sunniva delivered revenue of C$14 million for the quarter that ended in March. The company had big plans for 2019 and its California operation. The company estimated that its 2019 revenue in California through CP Logistics would be $72$78 million (USD $55$60 million), with an estimated gross margin of 40-50%. Then Sunniva‘s net losses for 2018 rose to $29.0 million versus last year’s $17.5 as expenses ballooned due to the company’s US operations, which led to an increase in the number of employees.  The most significant increase in costs was related to personnel costs, rent, and insurance of US operations.

Sunniva’s CFO bailed out in November 2019 as the company began selling off assets. It was working with CannaPharmaRx regarding the sale of Sunniva Medical Inc. to CannaPharmaRx and believe that the deal would be completed. Next, the company’s President resigned and short interest rose as shareholders got very nervous over the C-suite jumping ship. The company also decided to focus its efforts in California, not Canada.

“In Canada, we continue to expand our Natural Health Services operations with new leadership from Dr. Mark Kimmins. We have suspended operations on our Okanagan Falls property (the “Sunniva Canada Campus”) as we focus efforts on US operations, and we continue to review strategic initiatives in respect of our Canadian assets.” Sunniva also found itself running into debt problems.

The company was named in a lawsuit, along with its wholly-owned subsidiary, 1167025 B.C. Ltd., co in connection with loans made by Matrix Venture Capital Management Inc. to Sunniva on August 28, 2019, and October 11, 2019, respectively, in the aggregate amount of $7 million. The remedies sought by the Plaintiff include a mortgage over Sunniva’s Okanagan Falls property to secure payments of the amounts of the Loans owed by Sunniva to the Plaintiff. Sunniva, through its subsidiary 116, entered into a $3.4 million mortgage to finance the purchase of land for the greenhouse facility in Okanagan Falls, British Columbia.  The Company has repaid $400,000 as at September 30, 2019 but is currently in default on the remaining balance.

The company also ran into problems with its California real estate. Sunniva said that on November 25, 2019, it received a 30-day notice of termination and a notice of default from SPCL “for items related to payment of outstanding balances and failure to meet certain conditions of the Build to Suit Lease. “As a result of these notices, the timing of receipt of the Company’s certificate of occupancy for the Sunniva California Campus cannot be estimated at this time.”

Sunniva began 2020 closing Full-Scale Distributors, LLC. “The closing of FSD is a necessary step that will eliminate the cash outlay required to operate that business,” said Dr. Anthony Holler, Chairman & CEO of Sunniva Inc. “We continue to focus on the preservation of our available funds to allow us to actively defend Sunniva’s rights under the previously disclosed dispute related to the Build to Suit Lease of the Cathedral City Glasshouse.”

CP Logistics Update

CP Logistics, which was supposed to deliver millions in revenue?  A few days ago, Sunniva said that CP Logistics, LLC  has agreed to a reversal of transaction agreement with respect to the April 29, 2019 Membership Interest Purchase Agreement whereby CPL acquired an 80% membership interest in each of 420 Distribution, LLC and Coachella Distillation from Group Two Investments and assumed two subleases at the commercial property in Coachella, CA.

CPL has ceased operations at the Distribution Facility and will relinquish the 80% membership interests acquired from each of 420 and Coachella and have the original purchase price returned. The Subleases will revert back to Group Two and CPL will have its name removed from the provisional distribution license and the provisional type “P” manufacturing license with the California Bureau of Cannabis Control and the California Department of Public Health, respectively.


Debra BorchardtDebra BorchardtDecember 4, 2019
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4min17540

Sunniva Inc.  (CSE: SNN) (OTCQB: SNNVF) has been named in a lawsuit, along with its wholly-owned subsidiary, 1167025 B.C. Ltd., co in connection with loans made by Matrix Venture Capital Management Inc.  to Sunniva on August 28, 2019 and October 11, 2019, respectively, in the aggregate amount of $7 million. The remedies sought by the Plaintiff include a mortgage over Sunniva’s Okanagan Falls property to secure payments of the amounts of the Loans owed by Sunniva to the Plaintiff.

Sunniva and 1167025 B.C. Ltd. said it intends to vigorously defend this action. “The allegations in the notice of claim contain factual inaccuracies and the Company believes the claim is without merit,” said Dr. Anthony Holler, CEO of Sunniva Inc.

1167025 B.C. Ltd. owns the Sunniva Canada Campus, which includes construction assets for a planned 759,000 square-foot greenhouse located on an approximately 114-acre property in Okanagan Falls, British Columbia.

According to the company’s November 26 finance statement, it said that in June 2018, Sunniva, through its subsidiary 116, entered into a $3.4 million mortgage to finance the purchase of land for the greenhouse facility in Okanagan Falls, British Columbia. “The mortgage is repayable on October 31, 2019 and has an interest rate of 5% per annum. This balance has been reclassified to Liabilities associated with assets held-for-sale (note 7). The Company has repaid $400,000 as at September 30, 2019 but is currently in default on the remaining balance. The Company has been in communication with the lender and does not anticipate any remedial action to be taken prior to closing the SMI Transaction.” (GMR added the italics.)

California Notice of Default

Separately, in the company’s lastest MD&A dated November 26, Sunniva said that on November 25, 2019, it received a 30-day notice of termination and a notice of default from SPCL “for items related to payment of outstanding balances and failure to meet certain conditions of the Build to Suit Lease. In addition, the Company received a notice of default from a promissory note holder for not applying a certain portion of the note proceeds to agreed-upon outstanding amounts. The Company is currently consulting with its legal counsel and intends to defend its position. The ramifications of these notices are uncertain at this time. As a result of these notices, the timing of receipt of the Company’s certificate of occupancy for the Sunniva California Campus cannot be estimated at this time.”

Company Turmoil

The company is in a state of turmoil as the C-suite has emptied out in recent days. Just a couple of weeks ago, CFO Dave Lyle resigned for personal reasons and then David Weinmann was appointed interim CFO. In addition to that, Michael Barker who was on the board of directors also resigned.

One week later, President Kevin Wilkerson said he would resign. Wilkerson also resigned from his position as President and Chief Executive Officer of Sun CA Holdings effective December 2. The company said the resignation was for personal reasons and a replacement has not been named.

The stock fell another 13% to lately trade at 23 cents. The 52-week high was $4.30.

 


Debra BorchardtDebra BorchardtNovember 18, 2019
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3min28180

Sunniva Inc. (OTC: SNNVF) stock plunged over 40%  to lately trade at 45 cents after the company announced that President Kevin Wilkerson would resign. This comes just one week after the company’s Chief Financial Officer also resigned.

Wilkerson also resigned from his position as President and Chief Executive Officer of Sun CA Holdings effective December 2. The company said the resignation was for personal reasons and a replacement has not been named. It follows last week’s announcement that CFO Dave Lyle was resigning, also for personal reasons, and David Weinmann has been appointed interim CFO. In addition to that, Michael Barker who was on the board of directors also resigned.

It was reported that the short interest in the company stock jumped 388% in November, This despite a glowing video on Midas Letter a few weeks ago and news that the company closed on a private placement for $7.5 million.

On November 4, Sunniva said released word that it still planned to work with CannaPharmRx with respect to the sale of Sunniva Medical Inc., yet gave no information as to the need for making such a pronouncement.
In October, Sunniva said it was amending the terms of the performance warrants that had been issued in conjunction with the acquisition of LTYR Logistics. The original milestone had been the opening of a distribution center in Long Beach, CA. That was changed to the opening of a distribution business in Coachella, CA. That meant the warrants would convert to shares immediately and Wilkerson’s 239,491 warrant shares would become performance shares.

Last quarter the company reported revenue of C$5.3 million, but net losses of C$14.9 million.

In April, Sunniva said it planned to focus primarily on the ongoing development of our California assets and brands in California. In a statement, the company noted, “In Canada, we continue to expand our Natural Health Services operations with new leadership from Dr. Mark Kimmins. We have suspended operations on our Okanagan Falls property (the “Sunniva Canada Campus”) as we focus efforts on US operations, and we continue to review strategic initiatives in respect of our Canadian assets.”


Debra BorchardtDebra BorchardtNovember 4, 2019
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4min9020

Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) said it is still working with CannaPharmaRx regarding the sale of Sunniva Medical Inc. to CannaPharmaRx and believe that the deal will be completed.

In addition to that news, the company has lost its Chief Financial Officer. Dave Lyle, Chief Financial Officer has resigned as an officer, effective November 1st, for personal reasons. In the interim, Sunniva’s Global Controller, David Weinmann, has been appointed as the temporary CFO. The company statement said that Mr. Weinmann has a Bachelor of Science in Accountancy from San Diego State University. Prior to joining Sunniva, he worked for Thermo Fisher Scientific, Inc., Accriva Diagnostics, and Ambit Biosciences.  He has spent the past few years consulting for companies within the start-up, transition, and transaction phase, this includes, ACEA Biosciences, Inc., Ametek, Inc., and Robo3D Limited.

“On behalf of the Board of Directors and our employees, I would like to thank Dave Lyle for his contributions to Sunniva,” said CEO Anthony Holler. “David Weinmann has been an integral part of the building of the Finance group California and overseeing the development and implementation of the financial planning and accounting functions as we transitioned to the Carlsbad office. With Mr. Weinmann’s outstanding leadership skills and his finance and accounting experience supported by the team Sunniva has built over the past six months we have every confidence in David’s ability to succeed in this role.”

2019 Struggles

In April, Sunniva said that construction of the phase one 325,000 square foot California Campus in Cathedral City has experienced delays and is now expected to be operational in late Q3 2019. Sunniva attributed the delay on additional leasehold improvements required to increase the efficiency of the greenhouse and slower than expected construction progress.

n a statement, the company noted, “In Canada, we continue to expand our Natural Health Services operations with new leadership from Dr. Mark Kimmins. We have suspended operations on our Okanagan Falls property (the “Sunniva Canada Campus”) as we focus efforts on US operations, and we continue to review strategic initiatives in respect of our Canadian assets.”

In September, Sunniva Inc. announced that it has entered into an agreement to sell its subsidiary Natural Health Services, Ltd.  (NHS) to The Clinic Network Canada, Inc. (TCNC) for C$9 million. Half of the purchase price will be paid in cash, while the other half will be paid through the issuance of 4.5 million shares of TCNC. The closing of the sale could not have come at a better time for Sunniva, as yesterday,  NHS was named in a class-action lawsuit in connection with a previously reported privacy breach of the Electronic Medical Record system used by NHS.


William SumnerWilliam SumnerSeptember 10, 2019
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4min5750

It’s time for your Daily Hit of cannabis financial news for September 10, 2019.

On the Site

Canndescent

Private premium cannabis company Canndescent announced that it closes on a $27.5 million in Series C Preferred Funding. Leading the investment round, Green Acre Capital, a cannabis-specific venture fund from Canada, was joined by Carnegie Arch Capital, Senterra, LLC., Altitude Investment Management, JW Asset Management and a multinational beer company from Asia. The money will be used for the company’s expansion into vapes and ingestibles as well as supporting efforts in Massachusetts, Nevada, Canada and beyond.

Dissect the Economics of Cannabis Branding at the Green Market Summit

On September 11th, 2019, investors, entrepreneurs, and branding experts will gather to dissect the economics of cannabis business brands at The Green Market Summit in Los Angeles, California. Following a sold-out event in Chicago, The Green Market Summit will bring its business acumen to the world of cannabis branding and provide exclusive industry information on topics such as the celebrity effect on cannabis, how to manage brand perception for public companies, and the world of luxury cannabis.

In Other News

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced that the waiting period stipulated by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended has expired in relation to the company’s proposes acquisition of PharmaCann LLC. The waiting period was one of several conditions needs to close the acquisition, and the deal is expected to close by the end of 2019. “Today marks a monumental day for the cannabis industry,” said Adam Bierman, MedMen co-founder and CEO. “We hope this will pave the way for other companies in what has become a highly acquisitive and dynamic industry.”

Sunniva

Sunniva Inc. (CSE: SNN) announced that it has entered into an agreement to sell its subsidiary Natural Health Services, Ltd.  (NHS) to The Clinic Network Canada, Inc. (TCNC) for C$9 million. Half of the purchase price will be paid in cash, while the other half will be paid through the issuance of 4.5 million shares of TCNC. The closing of the sale could not have come at a better time for Sunniva, as yesterday,  NHS was named in a class action lawsuit in connection with a previously reported privacy breach of the Electronic Medical Record system used by NHS.


William SumnerWilliam SumnerSeptember 9, 2019
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5min9870

It’s time for your Daily Hit of cannabis financial news for September 9, 2019.

On the Site

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) has been on a dispensary buying binge this past couple of weeks. Today the company has added to that list of newly acquired properties. The company said it would be buying four additional dispensaries in Colorado from a leading cannabis retailer. The company’s total dispensary count will grow to 27 upon the successful closing of all the pending acquisitions.

Cannabis Meets Fashion At New York Fashion Week

Fashion met cannabis this past weekend as Project Runway Allstar, Korto Momolu, partnered with Women Grow, the largest network of women in the cannabis and hemp industries for a runway show spectacular. The combination of high fashion and activewear emblazoned with the Women’s Grow logo was well-received by an enthusiastic audience.

Medical CCAs 101 (Cannabis Cooperative Associations)

This article describes the additional financial benefits of moving flower from cultivator to consumer through a CCA as medical cannabis rather than as adult-use cannabis.

In Other News

Aurora Cannabis

Aurora Cannabis Inc. (NYSE: ACB) has closed its previously announced amended and upsized credit facilities with a syndicate of lenders led by the Bank of Montreal. This consist of C$160 million in term loans and a feature enabling to company to upsize the facility by approximately C$40 million, in addition to the original C$200 million in credit facilities. “We are very pleased to now have three of the five largest Schedule 1 Canadian banks in our syndicate, along with increased participation from other key syndicate partners,” said Terry Booth, CEO of Aurora.

Tilray

Tilray Inc. (NASDAQ: TLRY) announced that it has signed a definitive merger agreement with Privateer Holdings, which is the company’s largest stockholder. Under the agreement, the parties will effect a downstream merger of Privateer with and into a wholly-owned subsidiary of Tilray, with the Tilray subsidiary surviving the merger, and the issuance by Tilray to Privateer equity holders of newly issued and registered shares of Tilray common stock and options to purchase shares of Tilray common stock in an aggregate amount equal to the number of Tilray common shares currently held by Privateer.

Sunniva

Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) announced that its that its wholly owned subsidiary, Natural Health Services Ltd. (NHS) has been named in a class action lawsuit filed in connection with a previously reported privacy breach of the Electronic Medical Record system used by NHS. “From the time we initially became aware of this issue, we have taken all the necessary steps to prevent a situation like this from happening again in the future,” said Dr. Mark Kimmins, President of NHS. “We continue to work with law enforcement and the Office of the Information and Privacy Commissioner of Alberta in the ongoing investigation into this matter.”


Debra BorchardtDebra BorchardtApril 30, 2019
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7min14820

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, which led to an increase in the number of employees.  The most significant increase in costs was related to personnel costs, rent, and insurance of US operations.

In addition to that, share-based payment expenses were $8.2 million for the year versus $4.0 million in 2017 as the options granted during the year had much higher valuations due to the higher share price in the first half of 2018. Also, the company recognized an impairment loss of $1.3 million due to a valuation assessment of assets held-for-sale in December.

“While we were faced with some challenges in 2018, our existing businesses continued to see revenue growth and we now have strategic verticals assembled in California which have allowed us to leverage our core assets and to launch brands covering numerous cannabis product categories,” said Dr. Anthony Holler, CEO of Sunniva.

“Hard work by our team in California throughout 2018 has begun to bear fruit in early 2019.  The extraction facility became operational in Q3 2018 and, in conjunction with the acquisition of our distribution company, has enabled us to successfully launch two of our first three product brands into the California market in March 2019.  Strong initial sales of our cannabis brands contributed over $10.0 million of revenue to our total preliminary revenue estimate of $14.0 million for Q1 2019 which is almost as much revenue as we generated all of last year.”

Revenue did increase by $2.7 million during the year and FSD revenue increased by $3.3 million during the year due to an increase in sales from current customers as well as an increase in the customer base. NHS revenue decreased by $0.7 million during the year due to a temporary loss of doctors midway through 2018. CPL revenue increased by $0.1 million as initial extraction revenue was realized.

2019 Outlook

In 2019, Sunniva said it plans to focus primarily on the ongoing development of our California assets and brands in California. In a statement, the company noted, “In Canada, we continue to expand our Natural Health Services operations with new leadership from Dr. Mark Kimmins. We have suspended operations on our Okanagan Falls property (the “Sunniva Canada Campus”) as we focus efforts on US operations, and we continue to review strategic initiatives in respect of our Canadian assets.”

California – Delayed & More Expensive

Sunniva said that construction of the phase one 325,000 square foot California Campus in Cathedral City has experienced delays and is now expected to be operational in late Q3 2019. Sunniva attributed the delay on additional leasehold improvements required to increase the efficiency of the greenhouse and slower than expected construction progress.

The company also said that the estimated capital costs of the leased California Campus have increased to $95 million due to additional costs expected for the temperature control and lighting systems and additional infrastructure on phase two. Sunniva has contributed approximately $19.5 million to date and is committed to spending an additional US$10.5 million to complete its obligation. The flagship Sunniva onsite dispensary is expected to be completed and operational in Q1 2020 which will showcase the Sunniva brands.

Acquisitions

Sunniva also announced on Monday that its wholly-owned subsidiary, CP Logistics had acquired an 80% membership interest in 420 Distribution and Coachella Distillation from Group Two Investments and will assume the existing leases of the commercial property located in Coachella, CA. The company said that the total purchase price was not material.

“We continue to focus our efforts on enhancing and expanding our business in California and this new facility will expand our packaging and distribution operations,” said Kevin Wilkerson, CEO of Sun CA Holdings, Inc. “Following the successful launch of our first cannabis branded products earlier this year, we are looking ahead to growing  in the volume of products sold and we see this facility playing an instrumental role within the fully vertically integrated operations we are building in Southern California as it will enable us to increase our overall packaging capacity, expand our distribution capabilities and most importantly reduce our overall distribution costs.”


StaffStaffApril 5, 2019
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3min13270

Sunniva Inc.  (CSE: SNN) (OTCQB: SNNVF) reported preliminary revenue of C$14.0 million for the quarter ending March 31, 2019.  This represents a 169% increase over the C$5.2 million in revenue generated for the same time period in 2018. The company did not release any pross or net profit figures, but it did state that full figures for the fourth quarter and full-year 2018 would be released on April 29. The official first quarter results will be reported by May 30.

The company said that gross profit margins for the first quarter were expected to be between 30-35% due to operational ramp-up costs in California.  Sunniva reiterated that its 2019 revenue estimate in California through CP Logistics of $72$78 million (USD $55$60 million), with an estimated gross margin of 40-50%. However, the estimate did not include revenue from FSD, the Sunniva California Campus or NHS.

“In California, we now have the strategic pillars in place to ensure scalability and growth for our newly announced brands and we are very proud of our entire team for the execution and delivery of a very strong first quarter,” said Dr. Anthony Holler, CEO of Sunniva. “Our $14.0 million in revenue during the first quarter is close to the total revenue generated by Sunniva in all of 2018. With strong leadership and operating assets producing premium cannabis products, supported by our recent distribution company acquisition, we continue to demonstrate our ability to achieve significant revenue growth and secure shelf space for our Sunniva brands throughout the state.”

In California, Sunniva began selling cannabis products in the first three months of 2019 through its wholly-owned subsidiary, CP Logistics, LLC with preliminary revenue of C$10.0 million (USD $7.5 million). The company reported that revenue came from the sales of premium flower, vape cartridges and concentrates. In March, Sunniva unveiled its first three in-house brands, Sun Fire, KYNDNESS and Herbella, and announced that additional super premium brands would be launched in conjunction with production from the 325,000 sq. ft. purpose-built greenhouse under construction in Cathedral City, California.

Sunniva said that its other wholly-owned subsidiaries, Full-Scale Distributors, LLC, and Natural Health Services Ltd., contributed first quarter 2019 revenue of $2.3 million and $1.7 million, respectively.

 


Debra BorchardtDebra BorchardtJanuary 2, 2019
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5min6760

It’s time for your daily hit for cannabis financial news for January 2, 2019

On The Site

Cannex Capital Holdings Inc. (CSE: CNNX) today announced its financial results for the second quarter of the 2019 fiscal year, which ended on October 31, 2018.

Revenue for the quarter rose to $3.05 million, up roughly 223% from $1.8 million during the same period in the previous year. The bulk of the revenue increase was attributed packaging sales and rental income.

Likewise, the company’s net income rose to $696,746; a significant increase when compared to the loss of $815,188 during the second fiscal quarter of 2018. Adjusted EBITDA decreased slightly, falling from $1.1 million to $1.03 million. At the end of the period, Cannex had approximately $10.04 million in cash and cash equivalents.

In Other News

Xanthic Biopharma, Inc. (CSE : GGB) (OTCQB : GGBXF) officially changed its corporate name to Green Growth Brands Inc. The company had been operating under the trade name “Green Growth Brands” since the November 9, 2018 closing of its reverse take-over of the existing Xanthic entity. The new name is effective immediately and will be implemented across the company. The common shares will continue to trade on the Canadian Securities Exchange under the stock symbol “GGB” and on the OTCQB under the stock symbol “GGBXF”. The new CUSIP number of the Company’s common shares will be 39305B105 and the new ISIN number will be CA39305B1058.

The Supreme Cannabis Company, Inc.  (TSXV: FIRE) (OTCQX: SPRWF) (FRA: 53S1), announced 7ACRES has 19 completed flowering rooms and is on track for all 25 flowering rooms to be completed in March 2019. Once completed, 7ACRES will have a greenhouse footprint of approximately 300,000 square feet, with the total facility reaching over 440,000 square feet.  Supreme Cannabis expects 7ACRES to reach its estimated annual output of 50,000 kg by the middle of calendar 2019.

Sunniva Inc. (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, announced today the closing of the previously reported 100% acquisition of LTYR Logistics, LLC a California-based cannabis distribution company.

Honeydrop Beverages announced a new partnership with Boulder, Colorado-based Evo Hemp to launch a line of Honeydrop Cold-Pressed CBD Lemonades. Made with 20 mg of premium U.S grown CBD sourced by Evo Hemp and a teaspoon of raw U.S. honey, the new CBD lemonades contain only 4 g of sugar per bottle and will be offered in three flavors: REVIVE (Matcha), RELAX (Lemon) and REHAB (Turmeric). The new line was conceived and crafted by Honeydrop’s SVP Mareill Kiernan, who is also a certified holistic natural foods chef and health coach.The products will initially be available in Southern California and the New York Tristate area via distributors Los Angeles Distributing and Doras Natural at an MSRP of $5.99. Nationwide shipping will also be available.

 



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