It’s time for your Daily Hit of cannabis financial news for April 2, 2020.
On The Site
Within days of proclaiming in social media that its CBD products could cure COVID19, the Food & Drug Administration (FDA) sent a warning letter to NeuroXPF. The letter stated, “We request that you take immediate action to cease the sale of such unapproved and unauthorized products for the mitigation, prevention, treatment, diagnosis, or cure of COVID-19.”
NeuroXPF is a cannabidiol product company founded by former NFL player Kyle Turley. The company boldly went on social media suggesting that by using its products it could help people’s immune systems in the fight against COVID19.
Israel has been the center of some of the strongest research on cannabis, but for years remained in the research only field. That is beginning to change as more Israeli companies are raising money and more cannabis is being imported to the country.
Pharmaceutical company Panaxia Labs Israel Ltd. (TASE: PNAX) said that it completed a successful fundraising round of 17 million ILS (Israeli shekels) or approximately $4.6 million by today’s currency exchange. The private placement consists of common stock and warrants to Israeli Institutional Investors: the provident funds, mutual funds, and portfolio management entities of Mor Investment House and Noked Capital Hedge Fund. Total gross proceeds raised, including the exercise of the option by the company, are 23 million ILS.
The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) said that it completed its first international cannabis shipment from Canada into Israel. The Canadian cannabis company said that it partnered with Breath of Life International Ltd., Israel’s largest and a leading producer of medical cannabis and cannabis products, to offer Truverra-branded premium medical cannabis to patients in Israel.
In Other News
Innovative Industrial Properties, Inc. (NYSE: IIPR) closed on the acquisition of a property in Athol, Massachusetts, which comprises approximately 199,000 square feet of industrial space. The purchase price for the Massachusetts property was approximately $26.8 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement with a subsidiary of Ascend Wellness Holdings, LLC (AWH) for continued operation as a licensed cannabis cultivation and processing facility. AWH is expected to complete tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to approximately $22.2 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be $49.0 million. The lease provides for an initial annualized aggregate base rent of 13.5% of the sum of the initial purchase price and tenant improvement allowance, subject to a phase-in of the base rent associated with the tenant improvement allowance at the beginning of the term.
Grown Rogue International Inc. (CSE:GRIN) (OTCQX:GRUSF), a multi-state cannabis company with operations and assets in Oregon, California and Michigan, has released its financial and operating results for the three months ended January 31, 2020. Since Q2 2019, the company has been committed to shifting its business strategy away from low margin, third party product distribution and towards highly profitable Grown Rogue branded product sales. Generated over $150k in positive cash flow from operations for the first time as a public company. Revenue grew 33% year over year to $1.1m, with sales of Grown Rogue branded product more than doubling from 1Q 2019. Net loss was $233k vs last years $4.7m.
Radient Technologies Inc. (OTCQX: RDDTF) announced that it has received the approval from the TSX Venture Exchange to extend the term of 1,070,712 warrants originally scheduled to expire on April 14, 2020 to April 14, 2021.