TerrAscend Archives - Green Market Report

William SumnerWilliam SumnerAugust 23, 2019
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4min1160

It’s time for your Daily Hit of cannabis financial news for August 22, 2019.

On the Site

Gen!us

From Jimi Hendrix to Carl Sagan, many of the greatest artistic and scientific minds in history have used cannabis to help spur cultural progress, and yet surprisingly few entrepreneurs have aspired to create a cannabis strain specifically bred to inspire creative thought. A new cannabis brand called Gen!us hopes to change that…

TerrAscend

Toronto-based TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF)  reported that its second-quarter revenue rose 21% sequentially to $17.6 million from $14.6 million for the first quarter. A huge jump for the quarter ending June 30, 2019 over last year’s $0.01 million in 2018. The company raised its revenue guidance from $135 million which was projected in April to $141 million for 2019. On a pro forma basis, TerrAscend said it generated $42 million of revenue in the second quarter or over $168 million on an annualized basis.

In Other News

Green Growth Brands

Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) has closed its previously announced bought deal offering. Selling 22.5 million units of the company, at a price of C$2.45 per unit, the company raised C$50.22 million. The proceeds of the offering will go towards paying off the cash portion of its acquisition of Nevada Organic Remedies LLC, Henderson Organic Remedies LLC, and deferred cash compensation and certain other fees in connection with its acquisition of Spring Oaks Greenhouses, Inc.. The remained will go towards capital expenditures and general corporate purposes.

KushCo Holdings

KushCo Holdings, Inc. (OTCQX:KSHB) has closed on a $50 million credit facility with Monroe Capital LLC, which consists of $35 million revolving line of credit and an accordion of up to $15 million that will be available subject to covenant compliance and borrowing base availability. The facility will last for five years. KushCo continues to execute on its less dilutive financing strategy that will provide the capital necessary to support our continued operations and acquisitive growth,” commented KushCo CEO Nick Kovacevich,. “We are excited to partner with an entrepreneurial-focused private credit firm such as Monroe, and we have plans to grow our businesses together providing critical products and services to the cannabis and CBD industry. As the size of our customer’s business grows, it’s imperative to have an adequately sized credit facility that will increase as our business grows.”


Debra BorchardtDebra BorchardtAugust 22, 2019
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4min1300

Toronto-based TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF)  reported that its second-quarter revenue rose 21% sequentially to $17.6 million from $14.6 million for the first quarter. A huge jump for the quarter ending June 30, 2019 over last year’s $0.01 million in 2018.

The company raised its revenue guidance from $135 million which was projected in April to $141 million for 2019. On a pro forma basis, TerrAscend said it generated $42 million of revenue in the second quarter or over $168 million on an annualized basis.

The company still delivered a net loss of $21.5 million, which was much higher than last year’s net loss of $5 million. It is almost double the loss in the first quarter of $11 million.

“The company continues to experience strong growth in demand.  We are pleased to be in the position to raise our revenue guidance only four months after initially providing it.  We are seeing a substantial acceleration in sales growth in the third quarter and expect this to continue through the fourth quarter.  In Canada, our Haven Street Premium Cannabis brand is resonating with consumers. This sales growth will be driven by licensing of expanded space, scaled-up production, increased automation, improvements in operational efficiencies and continued growth in the adult-use, medical and international markets,” said Michael Nashat, TerrAscend’s CEO. “We continue to focus on improving margins, which will be fueled by cost effective strategic supply agreements that provide access to bulk dry flower and extract-based cannabinoids while maintaining TerrAscend’s standards for quality and consistency. We currently have nine existing bulk supply partners and several additional new partners coming online in the near term.”

Since The Quarter Closed

TerrAscend said that since the quarter closed it received its oil sales license and has begun sales in Canada. The company signed an agreement to purchase Ilera Healthcare, one of five vertically-integrated cannabis cultivator, processor, and dispensary operators in Pennsylvania. Ilera plans to open two additional dispensary sites in Pennsylvania within the year. TerrAscend made its first shipment to Germany through its sales and distribution agreement with iuvo Therapeutics GmbH, making it the first and only global cannabis operator with sales in the US, Canada, and the EU.

“TerrAscend continues to increase its global footprint with the build-out of our New Jersey operations, construction of multiple dispensaries in California, and the upcoming acquisition of Ilera Healthcare,” said Matthew Johnson, President TerrAscend Corp. & TerrAscend USA. “We are looking forward to opening new dispensaries in California, Pennsylvania and New Jersey in the coming months.  We are proud to have brought Valhalla Confections and The Apothecarium California into our family of companies this quarter with the closing of those transactions. Additionally, we are excited for the upcoming close of The Apothecarium Nevada.  Importantly, our recent and pending acquisitions are all margin accretive and generate strong cash flow.”


StaffStaffAugust 6, 2019
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8min2300

It’s time for your Daily Hit of cannabis financial news for August 6, 2019.

On The Site

GW Pharmaceuticals

British biotech firm GW Pharmaceuticals pls (NASDAQ: GWPH) second-quarter net sales of $68.4 million of the company’s cannabis-related drug Epidiolex, which is prescribed for children with rare epilepsy diseases. For the first half of 2019, GW Pharmaceuticals has sold $109 million of the drug. The good news sent the stock higher by over 10% in aftermarket trading to lately trade near $170.

The company delivered $72.0 million in revenue for the quarter ending June 30, 2019 versus $3.3 million for last year’s quarter for the same time period. Net income for the quarter was $79.7 million versus a net loss of $84.0 million for last year’s quarter. The cash and cash equivalents on June 30, 2019, were $583.7 million.

Zynerba

Australian-based Zynerba Pharmaceuticals Inc. (ZYNE) delivered second-quarter results and updates on the company’s drugs including its CBD (cannabidiol) gel. The general and administrative expenses for Zynerba during the second quarter of 2019 were $3.3 million, including stock-based compensation expense of $0.8 million. The net loss for the second quarter of 2019 was $11.1 million with a basic and diluted net loss per share of $(0.50).

The company announced that the U.S. Patent and Trademark Office issued U.S. Patent No. 10,314,792 titled “Treatment of Autism Spectrum Disorder with Cannabidiol” which includes claims directed to methods of treating autism spectrum disorder by administering a therapeutically effective amount of synthetic cannabidiol. This new patent expires in 2038 and is part of an expanding intellectual property portfolio covering Zygel.

Aurora Cannabis

Aurora Cannabis Inc.  (NYSE | TSX: ACB) gave an update on selected financial metrics for the fourth quarter of the company’s fiscal 2019 period ending June 30, 2019. While the information is selectively limited, Aurora said it feels it is being transparent by releasing the data and that the full results will be published prior to September 15, 2019. The company did not report any expense figures or any data relating to net profits or losses. The stock seemed to get a boost as the price was lifted by 5% in premarket trading.

Credit Unions

Last week Ohio Gov. Mike DeWine signed a bill that will allow credit unions and other financial institutions to service businesses that cultivate hemp and sell cannabidiol products as long as there is no more than 0.3% of THC. This week, NCUA (National Credit Union Association) Chairman Rodney Hood said that credit unions won’t be sanctioned for servicing cannabis-related accounts as long as they adhere to money laundering rules.

“It’s a business decision for the credit unions if they want to take the deposits,” Hood told the Credit Union Times. He added, “We don’t get involved with micro-managing credit unions.” Hood also told the CU Times that Congress could remove all ambiguity if it enacted legislation to declassify marijuana.

In Other News

CV Sciences

CV Sciences’ Q2 earnings release: https://ir.cvsciences.com/press-releases/detail/124/cv-sciences-inc-reports-second-quarter-2019-financial. The company reported revenue of $16.9 million for the second quarter of 2019, an increase of 36% over the same quarter in 2018. 14 consecutive quarters of sequential revenue growth. Gross margin improved to 70.9% from 70.8% in the first quarter of 2019. Retail distribution increased to 4,591 stores as of June 30, 2019, a 39% increase from March 31, 2019.

Broadened retail presence into the food, drug and mass channel and in active discussions for further expansion of the PlusCBD™ Oil brand. Generated $2.7 million of cash from operations, with total cash balance increasing to $15.7 million at quarter-end. Dismissal of class action suit which was originally filed in 2014. Announced planned 500% increase in production capacity with the addition of new 45,500 square foot facility. Initiated domestic sourcing efforts, committing to more than 500 acres of U.S. Hemp Production to support future sales.

TerrAscend

TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) signed a definitive agreement to acquire Ilera Healthcare, one of five vertically-integrated cannabis cultivator, processor, and dispensary operators in Pennsylvania, with such vertically-integrated licenses, also referred to as “Super Licenses” in the state.

TerrAscend has agreed to acquire 100% of the equity of Ilera for total consideration of between US$125-$225 million, paid in a combination of cash and TerrAscend shares. On closing, TerrAscend will pay to the sellers US$25 million in cash, subject to customary closing adjustments, and an additional US$25 million worth of proportionate voting shares in the equity of TerrAscend equivalent to approximately 5,059.102 proportionate voting shares (which are each exchangeable for 1,000 TerrAscend common shares, being issued at an issuance price of US$ 4.94 per share, based on the 45 day volume-weighted average trading price of TerrAscend’s common shares as of Monday, July 29, 2019 of C$6.5307 and an exchange rate of C$1.3216 per US$1.00). The additional cash consideration of up to US$175 million2 in aggregate may be paid to the sellers based on Ilera achieving certain specified revenue and profitability targets, with staged payments being made in 2020 and 2021. The transaction is expected to close in the 4th quarter of 2019, subject to regulatory approvals by the Pennsylvania Department of Health as well as certain customary closing conditions.

Louisiana

Medical marijuana is now legally available to Louisiana patients, with Baton Rouge’s Capitol Wellness Solutions recording the state’s first-ever regulated medical-cannabis sales transaction at the dispensary’s grand opening today. Three patients were the first to benefit from the state’s new regulated medical program, including two cancer patients and the first veteran in the state to be able to utilize medical marijuana to treat symptoms of PTSD.


William SumnerWilliam SumnerMay 23, 2019
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5min3100

It’s time for your Daily Hit of cannabis financial news for May 23, 2019.

On the Site

Why Canopy Growth’s Deals May Not Translate Into Gains for CGC Stock

Canopy Growth (NYSE: CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS: CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS: ACRGF). Unfortunately, Canopy Growth stock seems to need more.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its financial results for the first quarter of 2019. Revenue was $14.6 milion, up from $5 million in the previous quarter. Adjusted EBITDA was $7.2 million, up from a loss of $7.1 million in the last quarter. “Our sales in Canada continue to be strong, driven by demand from provincial distributors and consumers,” said Michael Nashat, TerrAscend’s CEO. “We are building industry-leading cultivation and processing capabilities. Our Mississauga facility was recently GMP certified by the German authorities – the only such certification granted in the last year – and exports to the EU will commence this quarter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced that it has been advanced an additional $80 million in accordance with a $250 million secured convertible credit facility with Gotham Green Partners. The company has issued additional convertible senior secured notes to the lenders with a conversion per subordinate voting share of the company equal to $3.29 per share.

Tilray

Tilray, Inc. (NASDAQ: TLRY) announced that its wholly owned subsidiary Tilray Portugal Unipessoal Lda. (Tilray Portugal) has received manufacturing licensed and a Good Manufacturing Practices certification for its Biocant Park manufacturing facility in Cantanhede, Portugal. “This licensing and certification marks a critical milestone for our growth in Portugal and Europe,” said Sascha Mielcarek, Tilray Managing Director, Europe. “The next phase of GMP certification will allow us to utilize the full capacity of our multi-faceted facility and continue to serve more patients in-need.”

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) announced that it has closed a $105 million senior secured non-brokered private placement financing through the issuance of senior secured notes. The notes will mature on May 22, 2022 and will bear a annual interest rate of 12%, with an option for GTI to extend the date by an additional 12 months. “Strategic capital allocation is fundamental to the business and this financing strengthens our balance sheet at an attractive cost of capital for our business and shareholders,” said GTI Founder and CEO Ben Kovler. “We are well-positioned to capitalize on the attractive market opportunities in front of us. The proceeds will fuel our aggressive growth plans for faster route-to-market in key markets like New Jersey, as well as pursue expansion opportunities that broaden the reach of our brand portfolio.”

 


William SumnerWilliam SumnerMay 8, 2019
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7min3350

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

On the Site

Investors Are Bullish On Cannabis, According to KCSA Survey

Investors are feeling bullish about the cannabis industry, according to a new survey released by KCSA Strategic Communications. Titled the Cannabis Investor Survey, KCSA polled over 250 retail cannabis investors about their investments and outlook on the legal cannabis industry in the United States.

Illinois Releases Plan For Full Legalization

This past Saturday, Illinois Governor J.B. Pritzker released the plan for full cannabis legalization which is set to begin on January 1, 2020. Companies that currently had medical cannabis licenses would get a jump on other companies with regards to applying for licenses. According to the plan, new licenses for dispensaries would begin on May 1 and processors, craft growers and transporters would begin licensing on July 1. It wouldn’t be until late 2021, that the next round of businesses would receive licenses.

Long-awaited German Tenders Handed to Specialist Trio

White smoke emanating from Germany’s medical agency signals the wait is over to find out which firms have been awarded medicinal cannabis tenders for Europe’s top market. Two Canadian firms, Aphria, and Aurora Cannabis and Germany’s Demecan have won out, it has emerged. The three companies will split a four-year tender to grow 10,400kg between them. Aphria won five of the 13 lots, with Aurora Cannabis and Demecan handed five and three lots respectively.

In Other News

MJardin

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) today released their fourth quarter and full year financial results for 2018. Revenue for the year was $27.5 million. Adjusted net loss from operations was $27.4 million and adjusted EBITDA was $12.2 million. “2018 was a year of significant change in the company as we expanded in to another US state, entered the Canadian market via acquisition, and became a publicly traded company on both the CSE and OTC,” remarked Adrian Montgomery, MJardin Chairman of the Board and Interim CEO. “In addition, we have restructured our corporate size and organization to better integrate and align with our core business goals in both countries.”

Heritage Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) announced that it has closed a $17.3 million bought deal offering, selling approximately 32.6 million units of the company at a price of $0.53 per unit. Each unit consisted of one common share and one-half of one common shar purchase warrant. Proceeds from the offering will be used to increase extraction capacity and follow-on investments in existing portfolio companies, new domestic and international opportunities, working capital and general corporate purposes.

TerrAscend

TerrAscend Corp. (CSE: TER) announced that it has completed the book-build for its previously announced upsized private placement. The gross proceeds from the offering totaled $52 million. The company is issuing common shares in the private placement at the previously announced price of C$7.64, which is a 5% discount from Monday’s closing price.

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) announced that is has opened a cannabinoid device R&D facility in Israel. Dubbed Cronos Device Labs, the facility will feature a 23-member team and is comprised of product designers, mechanical, electrical and software engineers, and analytical and formulation scientists. “The launch of Cronos Device Labs is an exciting next step on our journey to become a leader in cannabinoid innovation,” said Cronos Group Chairman, President and Chief Executive Officer Mike Gorenstein. “Vapor is already one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to introduce the next-generation of vaporizer products designed specifically for cannabinoid formulations.”

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of Spectrum Therapeutics, a new global brand that will encompass all of the company’s ongoing commercial medical and clinical research operations including Spectrum Cannabis, Canopy Health Innovations , and Bionorica SE-founded C3 Cannabinoid Compound Company. Spectrum will be involved with the production and distribution of full-spectrum and single cannabinoid medical cannabis products; education, resources and support for patients and healthcare practitioners; as well as pre-clinical and clinical research and the development of cannabinoid-based medicines.


William SumnerWilliam SumnerMay 3, 2019
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5min3250

It’s time for your Daily Hit of cannabis financial news for May 3, 2019.

On The Site

Indose

Indose, a groundbreaking precise dosage vaporizer that measures and displays exact dosage in real-time, down to the milligram, for a customized and controlled cannabis experience, announced today that it has closed a $3.5 million Series A round led by Casa Verde Capital.

Millennials Are Beginning Cannabis Careers Through Summer Internships

An increasing number of North American cannabis companies are reaching out to college students, offering summer internships as an opportunity to get their foot in the door in the growing industry. Students now are being given opportunities that students only 5 years ago could have only dreamed of!

Green Market Report’s Marijuana Money May 3, 2019

Green Market Report just learned that one of the sponsors at next week’s Green Market Summit is going to be announcing a new product at the conference. This is going to be huge news. We still have some room left, but there is a limited about of seats. Get your tickets before it’s too late.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) has announced that its manufacturing facility in Mississauga, Ontario, Canada has been issued a Good Manufacturing Practice certificate in according with European Union (EU) laws; which will allow the company to export medical cannabis to the EU. The company also announced that it has entered into a comprehensive sales and distribution agreement with the German pharmaceutical wholesaler, iuvo Therapeutics GmbH. “Just five months ago, TerrAscend became the first North American Operator (NAO), with scale operations in both Canada and the US. Upon commencement of shipments this quarter, through our partner iuvo in Germany, TerrAscend will be the first and only global cannabis operator with sales in the three largest markets in the world,” said Dr. Michael Nashat, CEO of TerrAscend.

iAnthus

iAnthus Capital Holdings Inc. (CSE: IAN) (OTCQX: ITHUF) announced that it has completed a private placement offering of an incremental $25 million of unsecured convertible notes and corresponding warrants, as an add-on to a previously announced private placement of $35 million. The notes will mature on March 15, 2023 and will carry an annual interest of 8%.

Fire & Flower

Fire & Flower Holdings Corp. (TSXV: FAF) announced that it has entered into a definitive agreement to acquire four licensed cannabis dispensaries from Prairie Sky Cannabis Inc. for $13 million, half of which will be paid in cash and the other half in common shares of the company. The dispensaries, which are under the brand name Jimmy’s Cannabis Shop, are located in the Saskatchewan communities of Battleford, Estevan, Martensville, and Moosomin. “The acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower’s aggressive acquisition strategy for 2019,” said Fire & Flower CEO Trevor Fencott. “In conjunction with our Open Fields wholesale distribution platform in the province, it cements our leadership position in this strategic market.”


William SumnerWilliam SumnerApril 24, 2019
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5min3290

It’s time for your Daily Hit of cannabis financial news for April 24, 2019.

On The Site

Cresco Labs

Chicago-based Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) released its unaudited financial results for the fourth quarter and full year ending December 31, 2018. The fourth quarter revenue was $17.0 million, an increase of 411% over last year for the same time period and up 33% sequentially. The company trimmed its net losses to $2.6 million versus the net loss of $3.0 million for 2017 fourth quarter. The quarter’s pro forma revenue was $22.5 million.

Federal Legalization – Then What?

It is fascinating to step back and observe how the mindset of many in the cannabis industry seems to work. Let’s think through a couple of scenarios and have a peek at the landscape in a post-legalization world. Let’s begin with the following

After the Drama, Where Is Aphria Headed Now?

Even in a space with as much excitement as marijuana stocks, Aphria (NYSE:APHA) stood out for having as much drama as a cable TV show. After all the excitement, what’s next for APHA stock? And have the company’s recent moves made it investable again, or is Aphria only appropriate for the most steel-nerved traders?

In Other News

Grown Rogue

Grown Rogue International Inc. (CSE:GRIN) (OTC: NVSIF), a vertically integrated multi-state cannabis operator, announced that it has entered into a binding letter of agreement to acquire Decibel Farms, Inc., an organic cannabis producer and processor. Under the terms of the transaction, the acquisition will be structured as a tax-free merger and shareholders of Decibel will receive $2 million. Decibel owners Shawn Bishop and Buddy Wilson will join Grown Rouge as Vice President of Manufacturing and President of Sales, respectively.

Aphria

Aphria Inc. (TSX:APHA)(NYSE:APHA) announced that it has closed a $300 million private placement offering to institutional investors. The initial investors exercised their option to purchase an additional $50 million in notes, making the deal worth $350 million. The notes are senior unsecured obligations of Aphria with an interest rate 5.25% per year, payable semiannually on June 1 and December 1 of each year, beginning on December 1, 2019. The notes will mature on June 1, 2024.

TerrAscend

TerrAscend Corp. (CSE:TER)(OTCQX: TRSSF) today released its financial results for the fourth quarter ending on December 31, 2019. Revenue for the quarter was $5 million, up from $1.8 million in the previous quarter. Net loss was $11.7 million or $0.13 per share. The company has $21.7 million in cash and cash equivalents. “We are pleased with our performance in the fourth quarter and have laid the groundwork for success in 2019,” said Michael Nashat, CEO of TerrAscend, in a statement. “We are experiencing strong sales momentum in Canada and are making substantial progress towards becoming a leading US multi-state operator.”


William SumnerWilliam SumnerFebruary 12, 2019
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3min13820

Yesterday, the San Francisco-based cannabis dispensary chain, The Apothecarium, announced that they had been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Including in the purchase agreement are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.

With more than 200 employees and $45 million in combined revenue, Apothecarium made for an attractive buy to TerrAscend, which recently has been making moves to enter the U.S. market.

Last month, TerrAscend completed the acquisition of another U.S. company Grander Distribution, LLC. Grander is a producer and distributor of hemp-based wellness products that are available in more than 10,000 worldwide retail locations.

“Teaming up with a larger company means that we will be able to bring the Apothecarium dispensary experience to more people, in more cities around the country,” said Apothecarium CEO Ryan Hudson in a statement. “Our customers won’t see major changes inside our dispensaries.”

Under the agreement, TerrAscend has agreed to pay $73.7 million in cash and to grant 7.325 million proportionate voting shares in the company. All full-time employees, including budtenders, will receive shares of TerrAscend.

Additionally, Apothecarium’s CEO and leadership team are expected to remain in their current roles. The completion of this acquisition is still pending regulatory approval from both the states of California and Nevada.

“Today’s news is another major step in executing TerrAscend’s US strategy,” said TerrAscend President Matthew Johnson. “We believe The Apothecarium is the model for operational excellence and will set the tone for our US cultivation and retail expansion, and we admire their philanthropic dedication and local community engagement.  We look forward to working together with the members of the current team to bring the Apothecarium’s unique experience to more communities and improve patient access to quality cannabis products and services.”



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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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