It’s time for your Daily Hit of cannabis financial news for April 14, 2020.
On The Site
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) reported that its second-quarter 2020 net revenues were $23.2 million a drop from the $26.9 million delivered in 2019 for the same time period. The company attributed the decline to lower recreational flower and oil sales volumes compared to the second quarter in 2019 when there were large pipeline fill orders to Alberta and Ontario. That occurred when there were supply shortages following the legalization of adult-use recreational cannabis sales.
The stock was falling over 11% on news of the decline in revenue and the detail that it was not in compliance with its debt covenants. It was selling at $1.60 in early trading, down from $1.81.
Biotech holding company Orthogonal Thinker, Inc. said that it has completed filing a provisional application for the Company’s flagship natural product, Psilly. The provisional application is a legal document filed in the United States Patent and Trademark Office (USPTO), that establishes an early filing date. It does not mature into an issued patent unless the applicant files a regular non-provisional patent application within one year.
International cannabis operator Clever Leaves has just closed a $14M Series E – demonstrating that people are still investing in cannabis, even in a recession. Clever Leaves is a licensed producer of pharmaceutical-grade medical cannabis and hemp extracts. To date, the company has raised $120 million.
Clever Leaves said that it anticipates raising additional capital in the coming months and expects to primarily use the proceeds to support its commercialization efforts, further develop existing brands, and expand its operations in Portugal. The funds may additionally support the expansion of the company’s recently launched direct-to-business sales platform, Clever Leaves 360, which offers pharmaceutical-grade cannabis extracts and finished products fit for a broad range of industries.
CannTrust Holdings Inc. (NYSE: CTST) announced that, after the close of markets on April 13, 2020, the company received a cease trade order issued by the Ontario Securities Commission as a result of CannTrust’s failure to file the following periodic disclosure required by Ontario securities legislation.
In Other News
MariMed Inc. (MRMD:OTCQX) announced that ARL Healthcare Inc., a wholly-owned MariMed entity, was granted three provisional adult-use licenses by the Cannabis Control Commission (CCC) for cultivation, production, and a dispensary. The cultivation and production licenses will be utilized at its 70,000 square foot cannabis manufacturing facility in New Bedford, and the dispensary license at its Panacea Wellness™ in Middleborough.
The Green Organic Dutchman Holdings Ltd. (OTC:TGODF) has signed a letter of intent with the Société québécoise du cannabis (“SQDC”) ahead of the upcoming launch of its lineup of teas made with only certified organic ingredients.
TerrAscend Corp. (OTCQX: TRSSF) has appointed Jason Ackerman as Chief Executive Officer. The company will also relocate its financial operations to its U.S. headquarters in New York City. As part of the move, Toronto-based Adam Kozak will step down as Chief Financial Officer and New York-based company comptroller, Dr. Stephen Baranowski, will assume the role of interim CFO at the end of April. This comes as TerrAscend continues to build out its U.S. based leadership and operations teams and focuses on its growing footprint and opportunity in the rapidly expanding U.S. market.