Supreme Cannabis Archives

Debra BorchardtJune 23, 2021

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) has completed its acquisition of The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF), a deal that was valued at $435 million. Supreme Cannabis’s portfolio of brands includes 7ACRES, 7ACRES Craft Collective, Blissco, sugarleaf, and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand. As a result of the deal, Supreme has become a wholly-owned subsidiary of Canopy. Supreme shares are expected to be de-listed from the Toronto Stock Exchange on or about June 23, 2021.

“Through the addition of Supreme, we’re strengthening our leadership position by offering Canadian consumers a differentiated brand portfolio – including the addition of 7ACRES, which further bolsters our premium product segment,” said David Klein, Chief Executive Officer of Canopy. “Supreme has demonstrated the ability to cultivate premium quality flower at low cost and we’re excited to leverage these capabilities to further our leadership in the Canadian market as we scale these newly added brands and accelerate revenue growth.”

Canopy noted in a statement that the addition of 7ACRES and the 7ACRES Craft Collective enhances its leading market share position and supplements its production capacity through the acquisition of Supreme’s low-cost, scalable cultivation facility in Kincardine, Ontario. That facility has a proven capability for producing high-quality flower from sought-after strains that have earned Supreme’s brands their loyal consumer followings. Canopy also said that the acquisition of Supreme further strengthens its overall leadership position within the Canadian recreational market and creates a pro forma Q4 FY 2021 market share of 18.1%.

The company previously said that the combined pro forma market share was estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia. However, Canopy Growth noted that cost synergies will not be felt for another two years and those are expected to be in the $30 million range.

“We believe the acquisition of Supreme by Canopy represents the best path forward for Supreme’s shareholders to generate long-term value,” said Beena Goldenberg, Chief Executive Officer of Supreme. “We are proud to have built an attractive company with high-quality, sought-after premium products and brands. We feel joining with Canopy – a leader in the Canadian recreational market – is aligned with our ultimate goal of becoming a premier cannabis CPG company.”

Supreme felt the challenges of Covid in 2020 causing the company to focus on cost-cutting measures and strengthening the balance sheet. Canopy also spent a year addressing huge net losses while also looking to shore up its finances.

Debra BorchardtApril 8, 2021

Canopy Growth Corporation (NASDAQ: CGC) is buying The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) in a deal valued at approximately $435 million on a fully diluted basis. Supreme Cannabis shareholders will receive 0.01165872 of a Canopy common share and $0.0001 in cash in exchange for each Supreme Cannabis Share held. There is a $12.5 million termination fee. Supreme Cannabis’s portfolio of brands includes 7ACRES, 7ACRES Craft Collective, Blissco, sugarleaf, and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand.

“As we continue to expand our leading brand portfolio, we’re excited to reach more consumers through Supreme’s premium brands and high-quality products, further solidifying Canopy’s market leadership,” said David Klein, Chief Executive Officer of Canopy. “Supreme’s deep commitment to superior genetics, top-tier cultivation, and strict quality control, paired with Canopy’s leading consumer insights, advanced R&D, and innovation capabilities, is expected to create a powerful combination that aligns with our strategic focus to generate growth with premium quality products across key categories.”

The combination of market leader Canopy Growth with Supreme Cannabis’ top position in Canada will lead to a pro forma Canadian recreational market share of 13.6% according to a company statement based on Headset data. This includes 7ACRES which is Canada’s number one premium flower brand, number one in PAX vapes, and Top-5 in pre-rolled joints. The company said that the combined pro forma market share is estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia. However, Canopy Growth noted that cost synergies will not be felt for another two years and those are expected to be in the $30 million range.

“This transaction is a testament to the value created by all the teams at Supreme and will be beneficial to all of our stakeholders,” added Beena Goldenberg, President, and CEO of Supreme Cannabis. “We have been successful at delivering great products that achieved strong customer loyalty and operating at levels of efficiency that are industry-leading. We have also built a highly sought-after premium brand in 7ACRES. Combining Supreme Cannabis with Canopy – a Canadian market leader with exposure to the United States – presents a significant value creation opportunity for both companies. We look forward to working with Canopy to complete this transaction.”

The deal is said to provide Supreme Cannabis shareholders with a premium per share of approximately 66% based on the closing prices of the Supreme Cannabis Shares and Canopy common shares on the TSX as of April 7, 2021.

Debra BorchardtSeptember 25, 2020

The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) released its financial and operating results for the fourth quarter and year ending June 30, 2020, as total revenues fell for the quarter, but were up for the year.

“Fiscal 2020 was an important transitional year for Supreme Cannabis where we streamlined our operations, reorganized our team, and expanded our portfolio of brands and products that will drive sustainable revenue growth,” said Beena Goldenberg, President and CEO. “Looking into 2021, we will continue to focus on efficiency throughout the organization.”

Fourth Quarter

In the fourth quarter, total revenue fell slightly to $10.8 million from last year’s $11 million as stores were closed due to the COVID-19 pandemic. The net losses were trimmed to $33 million from last year’s net loss of $73 million. Despite the pandemic issues, Supreme reported that recreational net revenue rose to $7.3 million, an increase of 27% quarter-over-quarter. Recreational sales volumes were 1,449 kilograms, up 10% quarter-over-quarter, while the average selling price per gram for recreational sales in Q4 2020 was $5.00, up 16% quarter-over-quarter. The company said that the increase in recreational sales was due to the company’s strategy to focus on the recreational channel as the primary revenue source. “The quarter-over-quarter increase in the Company’s average selling price for recreational cannabis was primarily driven by lower discounts and return provisions compared to the three months ended March 31, 2020.”

However, overall net revenue decreased 2% to $9.5 million in the fourth quarter from $9.7 million in the third quarter. This was primarily driven by a change in the company’s focus from the domestic wholesale channel to its growing recreational channel. Wholesale net revenue in the quarter was $2.3 million, down 43% quarter-over-quarter.

Full Year

For the full year of 2020, Supreme delivered total revenue of $44 million versus 2019 revenue of $43 million. The net losses for the year were a whopping $150 million versus the net loss in 2019 of $14 million.

Looking Ahead

Supreme Cannabis ended the quarter with a total cash balance of $28.4 million. The company refinanced its debt following the end of the quarter and there are no debt maturities for two years, and total debt was reduced by $69.8 million. Supreme said it has substantially completed the right-sizing of its operating structure with the right teams in place to produce a differentiated product line in-house efficiently. The company said it remains focused on cost containment and is fully-funded to execute on all planned initiatives.

Debra BorchardtMay 15, 2020

The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) reported only a slight increase in revenue for the third quarter ending March 31, 2020, of $11 million. Last year’s third-quarter revenue was $10.3 million. The net revenue decreased from $10 million in 2019 to $9.1 million for the 2020 third quarter.

Supreme said that its net revenue was impacted by actual and expected sales discounts and return provisions of $1.3 million versus $0.5 million in Q2 2020. “The year-over-year decrease in net revenue was partially offset by an approximately 245% increase in revenues from recreational cannabis sales.” However, the company also said it had to supplement those recreational sales.

Due to the slow Canadian retail rollout, Supreme said it had to supplement its recreational sales with domestic wholesale and international medical transactions. Despite market-wide wholesale price compression, Supreme Cannabis said it continued to get wholesale average pricing of $3.36 per gram in the third quarter of 2020, versus $3.26 in the second quarter.

Huge Write-Down

The company delivered a whopping net loss of $72 million versus last year’s net loss of $7 million for the same time period. Supreme recognized a total non-cash impairment of assets of $57.5 million, which mostly consisted of impairment to goodwill and intangible assets that were recognized as part of the BlissCo and Truverra acquisitions on July 11, 2019, and August 13, 2019, respectively. The impairment was primarily driven by slower than expected development of the recreational cannabis market in Canada that resulted in slower than anticipated growth in sales of the company. The company did say that the 7ACRES Site continues to hold its value and did not change the valuation of that property.

“In our third quarter, we made significant progress towards our goal of improving the Company’s cost structure while creating opportunities for near-term revenue growth. Although much of this progress is not reflected in our Q3 financial results, we did begin to see the early impacts of our rightsizing and revenue generation efforts,” said Colin Moore who recently served as interim President and CEO of Supreme Cannabis. “Excluding restructuring charges, we reduced our operating expenses by 23% quarter-over-quarter and improved our speed to market introducing 10 new SKUs since the beginning of calendar year 2020. ”

Expenses

The company’s operating expenses for the third quarter were $17 million. Operating expenses for the third quarter, excluding restructuring charges, decreased to $15.3 million from $19.8 million in Q2 2020. Cash outflows for capital expenditures in the quarter were $2.3 million versus $11.9 million in the second quarter. The company’s cash has dropped down to $23 million.

Supreme said it has $35 million of the undrawn capacity of its $90 million of senior secured credit facilities. The company can also issue shares to bring in an additional $9.7 million.

Looking Ahead

The company said it was fully funded for all of its planned initiatives. The company also said that its capital needs would be less going forward.

“In my short time with the Company, I have quickly come to appreciate our distinct advantages and near-term opportunities; we have completed infrastructure at the cusp of being optimized, a curated portfolio of brands that are gaining traction through an advanced distribution strategy and a high-quality offering of products that is growing every day,” said Beena Goldenberg, President, and CEO of Supreme Cannabis. “In the remainder of fiscal 2020 and in fiscal 2021, I will implement and quickly action changes that capitalize on these existing advantages and create opportunities to showcase our strengths. I see a clear path to increased revenue generation and profitable growth that will benefit our investors, consumers, and employees.”

StaffApril 27, 2020

The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) has hired Beena Goldenberg, the former CEO of Hain-Celestial Canada, as the company’s President and Chief Executive Officer. Ms. Goldenberg succeeds Colin Moore, who as interim President and Chief Executive Officer since January 2020 took significant steps to reduce Supreme’s operating and overhead costs, expand its product offering across all market segments and accelerate its transition into a premium cannabis consumer packaged goods company. She was also appointed to the board.

“I am humbled and excited by this opportunity to help grow a leading cannabis CPG company. Supreme Cannabis’ award-winning premium brands, deep dedication to quality and industry-leading cultivation and production facilities are tremendous advantages for any CPG company, especially one in the cannabis industry, which is now increasingly consumer-driven,” Ms. Goldenberg commented. “I look forward to working with this outstanding team to accelerate the company’s recent progress within the consumer marketplace.”

CEO Expectations

Goldenberg follows former CEO Navdeep Dhaliwal, who left the company in January following a rough fourth-quarter. At that time, Supreme reported a drop in its revenue of $19 million. The quarter-over-quarter decrease in net revenue was attributed to the combination of a rapid deterioration of pricing and demand in the wholesale market and the previously announced 7ACRES mechanical failure in grow rooms 1, 2 and 3. The company called this “an isolated one-time event with all three grow rooms recommissioned and replanted in September 2019.”

Moore became the interim CEO and the company statement said that he would continue to serve as a director of the company and would also be an advisor to Goldenberg.

“Over the past three months, Supreme Cannabis has made significant progress, becoming a more agile, efficient and consumer-focused company. With Ms. Goldenberg’s leadership, I am convinced that our Company is better positioned than ever to succeed for the benefit of all of our stakeholders,” said Mr. Moore. “I would like to take this opportunity to thank the dedicated Supreme Cannabis employees who I had the pleasure of working with over the past four months. I look forward to supporting our new President and CEO through this transition and continuing to work with her in my role on the Board.”

Debra BorchardtJanuary 6, 2020

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) announced that its Board of Directors has named Colin Moore, Director of the Company and former President of Starbucks Coffee Canada, as Interim President and Chief Executive Officer, effective immediately. Mr. Moore succeeds Navdeep Dhaliwal, who has departed the Company.

Supreme recent reported a drop in its revenue from the 2019 fourth quarter amount of $19 million to the 2020 first quarter amount of $11.4 million. The quarter-over-quarter decrease in net revenue was attributed to the combination of a rapid deterioration of pricing and demand in the wholesale market and the previously announced 7ACRES mechanical failure in grow rooms 1, 2 and 3. The company called this “an isolated one-time event with all three grow rooms recommissioned and replanted in September 2019.”

“Today, with Supreme Cannabis firmly established as one of the world’s fastest-growing, premium plant driven-lifestyle companies and our industry entering its second phase, the Board determined that the company would benefit from leadership with the skills and experience to accelerate our growth and transformation into a leading cannabis CPG company,” Supreme Cannabis Board Chairman, Michael La Brier said. “We are fortunate to have Colin Moore stepping up to serve as our Interim CEO and lead our efforts to drive long-term, profitable growth and shareholder value during this transitional period.”

Supreme said it is in the process of engaging a search firm to identify and evaluate a new CEO to lead Supreme Cannabis in its next phase of profitable, long-term growth.

La Brier added, “Colin’s 40 years of experience driving growth and efficiencies in branded, consumer-facing industries, including as President of Starbucks Coffee Canada, in addition to his deep knowledge of the business and strong ties with the management team, will be essential to accelerating our momentum during this important and transformative period.”

“Supreme Cannabis has built a strong foundation for the future, including award-winning premium brands that are recognized coast-to-coast, industry-leading quality and dedication to operational excellence, and committed, talented people. Going forward, we have a tremendous opportunity to drive profitable growth and cash flow by expanding our market position across all market segments and with new strains and product forms,” said Colin Moore, Interim CEO and Director.” Greater efficiencies and speed to market will come by rightsizing our production, overhead and capital. As we begin the search for the Company’s next leader, I’m excited to get to work immediately on these priorities with a great team that is committed to delivering on Supreme Cannabis’s great potential.”

StaffNovember 15, 2019

The Supreme Cannabis Co.

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported a year-over-year increase in net revenue, growing 122% from $5.1 million in Q1 2019 to $11.4 million in Q1 2020. The net revenue achieved during Q1 2020 was comprised of $10.5 million from 7ACRES and $0.9 million from Blissco.

Sequentially, net revenue decreased by 40% from $19 million in Q4 2019. The quarter-over-quarter decrease in net revenue is predominately attributable to the combination of a rapid deterioration of pricing and demand in the wholesale market and the previously announced 7ACRES mechanical failure in grow rooms 1, 2 and 3, which was an isolated one-time event with all three grow rooms recommissioned and replanted in September 2019.

In Q1 2020, in response to wholesale market conditions, the company prioritized its annual performance objectives by product planning for future quarters and holding back product from wholesale channels. In the second half of fiscal 2020, the company expects this inventory of high-quality products to serve as inputs for flower convenience products and select cannabis derivative products, including pre-rolled joints, CBD oils and vaporizer oils.

The company continues to reduce its reliance on the wholesale market as it increases packaging capacity at its 7ACRES facility and transitions 7ACRES to solely recreational sales. In Q1 2020, wholesale sales accounted for 57% of cannabis flower sales, as compared to 65% in Q4 2019 and 100% in Q1 2019. As Supreme Cannabis transitions into a CPG company, sales from recreational markets continue to increase. In Q1 2020, the company saw strong demand for its consumer-facing brands, with net revenue from recreational sales increasing 68% quarter-over-quarter.

Village Farms International, Inc.

Village Farms International, Inc. (TSX: VFF) (NASDAQ: VFF) reported net sales (before Village Farms’ 50% share), which consisted entirely of dried cannabis sold predominantly to other licensed producers, were C$24.0 million (US$18.1 million). Sales for the third quarter did not include C$7.2 million that was invoiced to Emerald Health Therapeutics. The company delivered net loss (before Village Farms’ 50% share) of (C$2.4 million) ((US$1.8 million)) which included the non-cash impact of a net charge of (C$12.6 million) due to a change in value of the biological asset.

Michael DeGiglio, Chief Executive Officer, Village Farms said, “Pure Sunfarms’ achieved its fourth consecutive quarter of positive EBITDA, with an industry leading all-in cost of production of C$0.63, gross margin of 69% and EBITDA margin of 56%. In the 12 months since adult-use cannabis was legalized in Canada in October 2018, Pure Sunfarms has already generated C$47 million in EBITDA, an especially impressive number given that its operations were ramping up throughout most of that period.”

“In our U.S. outdoor hemp program, we recently completed harvest of our 2019 crop, highlighted by yields that were well above our projections. We remain on track to begin generating profitable hemp sales as early as the fourth quarter of this year. Importantly, our first growing season has provided significant learnings that will be invaluable going forward. In our greenhouse hemp program, we continue to work with Texas Department of Agriculture on the implementation of its hemp regulatory framework subject to the recently published US Department of Agriculture rules and are optimistic that licensing could commence in the first quarter of 2020. As we did in Canada with Pure Sunfarms, we are building a rock-solid foundation of exceptional growing operations from which to aggressively pursue our objective to launch our own white-labeled and branded CBD products in 2020.”

Jushi Holdings

Jushi Holdings Inc. (NEO: JUSH.B) (OTCQX: JUSHF) reported its financial results for the third quarter ended September 30, 2019. The company delivered revenue for the third quarter of 2019 increased 2871% to $3.6 million, compared to $0.1 million in the third quarter of 2018 due to revenue from operations. Net income for the third quarter of 2019 was $4.2 million, or $0.04 per diluted share, compared to a net loss of $2.3 million, or $0.05 per share, in the third quarter of 2018. During the quarter, the company reported a gain on a financial asset of approximately $9.2 million and a one-time other income of approximately $5 million.

Gross profit for the third quarter of 2019 was $1.5 million, resulting in gross margin of 43%, compared to $0.1 million for the third quarter of 2018. The increase over the prior year was primarily due to the increase in retail sales.

“During the third quarter of 2019, we generated revenue of $3.6 million, an increase sequentially from $0.2 million, due primarily to commencement of retail operations in Pennsylvania and New York, and cultivation and manufacturing in Nevada. Additionally, we reported a net gain of $13.2 million in other income primarily from sale of our minority stake in Gloucester Street Capital resulting in net income of $4.2 million for the quarter,” stated Jim Cacioppo, CEO and Chairman of Jushi.

William SumnerSeptember 18, 2019

It’s time for your Daily Hit of cannabis financial news for September 18, 2019.

On the Site

Overcoming Canada’s Cannabis Shortage

Shortages of Canadian marijuana appeared immediately after recreational sales of cannabis starting from October 2018. Hence, there is a typical Canadian refrain almost lately. Because of little inventory remaining, many stores are closed three days a week, and provincial distributors are blaming federal regulations and producers. Some of the giant retailer’s licenses have also frozen and some are limited to 25 stores on the state level.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (FIRE.TO) (SPRWF) reported net revenue of $19 million for the fourth quarter ending June 30, 2019, a 90% increase sequentially. The net loss for the quarter was $421,000. Supreme Cannabis’ core recreational flower brand, 7ACRES, accounted for the company’s marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019.

In Other News

CannTrust

In a blow to the beleaguered company, CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) announced that is has received a Notice of Licence Suspension under section 64(1) of the Cannabis Act, citing noncompliance. The notice is a partial suspension for the company’s license for cultivation and a full suspension of its license for standard processing, medical sales, cannabis drugs and research. CannTrust will still be able to cultivate and harvest existing lots or batches previously propagated, as well as the ancillary such as drying, trimming, and milling. Health Canada will reinstate CannTrust’s license if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.

Flower One

Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF) has entered a sale-leaseback agreement with Treehouse Real Estate Investment Trust, Inc. for the company’s 25,000 square-foot indoor cultivation and production facility in North Las Vegas, including the adjacent vacant lot. The company is planning to build a commercial kitchen and manufacturing space on the property. Construction is expected to begin by the second quarter of 2020. Treehouse will purchase the property for $20 million. “Flower One is thrilled to form a long-term partnership with Treehouse, enabling us to access significant capital to continue our expansion in Nevada and potentially beyond,” said Kellen O’Keefe, Chief Strategy Officer at Flower One. “Flower One is actively pursuing multi-state opportunities and plans to utilize its partnership with Treehouse in order to do so.”

Debra BorchardtJuly 17, 2019

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. It will also give the company a foot in the door of the European market. The acquisition is expected to close by the end of August 2019.

CCC currently operates a 5,000 square-foot Health Canada licensed facility in Scarborough, Ontario. Supreme Cannabis said that it plans to repurpose CCC’s facility to produce high-quality cannabis extracts, including concentrates and vaping liquids. Supreme is also interested in the Netherlands-based Truverra Europe because it sells a broad portfolio of hemp-based CBD products into select European markets.

“The recent introduction of Health Canada’s amended cannabis regulations creates a distinct opportunity for Supreme Cannabis to establish a leading position in the cannabis extracts markets. With the acquisition of Truverra, we secure a Toronto-based facility equipped to extract our high-quality inputs for concentrates and vaping liquids in the near-term,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Truverra’s operations also provide an additional entry point into Europe’s CBD wellness market, where Truverra Europe has successfully launched multiple CBD products in various jurisdictions.”

Supreme Cannabis’ portfolio includes 7ACRES, its wholly-owned subsidiary and Cambium Plant Sciences, a plant genetics and cultivation IP company; Medigrow Lesotho, a cannabis oil producer located in southern Africa; Supreme Heights, a investment platform focused on CBD brands in the UK and Europe and a brand partnership and licensing deal with Khalifa Kush Enterprises Canada

“The Supreme Cannabis Company has a strong track record for executional excellence, with their support and robust corporate services we look forward to strengthening our operations in Canada and globally,” said Jeff Adams, CEO of Truverra. “In the near term, we will continue to build Truverra’s CBD offering in Europe and position the brand to serve international medical markets.”

William SumnerMay 16, 2019

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.”

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