The Daily Cannabis Hit: August 31, 2021

It’s time for your Daily Hit of cannabis financial news for August 31, 2021.

On the Site

Valens

The Valens Company Inc.  (OTCQX: VLNCF) is buying  Citizen Stash Cannabis Corp. (formerly Experion Holdings Ltd) (TSXV: CSC) (OTCQB: EXPFF) in an all-stock deal valued at approximately $54.3 million on an enterprise value basis. Citizen Stash shareholders will receive 0.1620 of a Valens common share for each Citizen Stash Common Share held. The Exchange Ratio implies a premium per Citizen Stash Common Share of approximately 35.1%. Valens said the Citizen Stash acquisition is expected to be accretive in 2021 and 2022 before synergies and will provide Valens with a strategic, asset-light expansion into flower and pre-rolls, the largest segments of the Canadian cannabis market currently accounting for over 70% of retail sales. Prior to the acquisition, Citizen had signed a processing agreement with The Valens Company to outsource the production of Citizen Stash pre-rolls, supporting a lower cost of goods moving forward for pre-rolls.

Emerald

Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) reported its financial results for the second quarter ending June 30, 2021, with total sales of C$3.7 million, which increased over the first quarter’s C$2.6 million. The net losses for Emerald Health increased to $13.9 million over the previous quarter’s net loss of $2.9 million. The net loss included a $10.67 million non-cash impairment of an asset held for sale.

RWB

After the market closed on Monday, Red White & Bloom Brands Inc. (OTCQX: RWBYF) (RWB)  reported select second quarter 2021 financial results with revenue rising 13% from the first quarter to $13.3 million and a big improvement over last year’s $1.9 million for the same time period. RWB reported a net loss for the quarter was trimmed to $11.4 million from last year’s net loss of $23 million. While RWB does seem to be increasing its revenue, the company did note in its filing that it faces a huge mountain of debt that seems to overshadow the level of income that it is generating. The filing stated, “As at June 30, 2021, the Company has accumulated losses of $(100,885,345) since inception, and for the six month period ended June 30, 2020, the company incurred a net loss of $ (68,336,512) and net cash used in operations was $ 24,826,326. 

Harborside

After the close of the market on Monday, Harborside Inc.  (CSE: HBOR) (OTCQX: HBORF) reported its financial results for the second quarter ending June 30, 2021, as revenues were essentially flat year over year, but up sequentially. The revenue for the quarter was $16.19 million versus last year’s $16.14, but an improvement over the first quarter’s total revenue of $12.9 million. There are two analysts covering Harborside who had an average estimate for revenues of $12.4 million. Harborside delivered a net income attributable of $1.8 million in the second quarter versus a net (loss) of approximately $(1.7) million in 2020, an approximately 201% increase in net income on a year-over-year basis. The company attributed the year-over-year increase was due primarily to fair value gains related to other current assets which were recognized during the quarter.

In Other News

 

Organigram Holdings Inc. (TSX: OGI) (NASDAQ: OGI)has obtained a receipt for a final short form base shelf prospectus filed with the securities commissions in each of the provinces and territories of Canada to sell C$500 million worth of securities.

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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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