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