It’s time for your Daily Hit of cannabis financial news for April 7, 2020.
On The Site
NewLeaf Brands Inc. (CSE: NLB) (OTC: NLBIF) has signed a letter of intent to purchase Colorado-based Mydecine Group in an all-stock deal valued at $850,000. Mydecine is a vertically integrated company engaged to utilize the vast medicinal, health and wellness capabilities of the many compounds found in various strains of mushroom and fungi as a whole.
“We’ve been watching and closely monitoring the progress of the mycology space for some time now. Given that we are located in the home state to first decriminalize psilocybin in the U.S., the Company has had a unique opportunity to get a jump on the potential industry as a whole,” said Joshua Bartch CEO of NewLeaf Brands in a statement.
Mydecine has three wholly-owned divisions, “Mydecine Farms”, “Mydecine Wellness”, and “Psydecine Labs.” The company aims to be an industry pioneer in the cultivation, processing, product development, and research and development of the many beneficial and exciting compounds that are found in various strains of mushroom and fungi from all around the world.
As of March 24, 2020, the coronavirus disease had swept through over 195 countries with over 260,000 confirmed cases worldwide. This caused a panic that led people to stock up on foods, toiletries, and other basic needs.
But how did it affect marijuana consumers? Let’s take a look at the survey presented below.
Across the board, the U.S. marijuana consumers would prefer food, face masks, hand sanitizers, and toilet paper over marijuana if they had to choose between marijuana and these.
Among these necessary items for the COVID-19 pandemic, a surprising 28% of the 990 participants would rather value marijuana above face masks.
It’s obvious how 83% of the participants would rather choose toilet paper over marijuana but it’s a shocker to see that 5% of the same participants value marijuana above food during these times.
In Other News
Harvest Health & Recreation Inc. (OTCQX: HRVSF) reported its financial and operating results for the fourth quarter and year ended 2019. Total revenue in the fourth quarter was $37.8 million, an increase of 123% from $16.9 million in the fourth quarter of 2018 and up 14%, compared to $33.2 million in the third quarter of 2019. Full-year revenue increased by 149% to $116.8 million in 2019 compared to $47.0 million in 2018. Net loss was $88.9 million for the fourth quarter compared to a net loss of $71.1 million during the fourth quarter of 2018. Net loss for the full year was $173.5 million compared to a net loss of $67.5 million in 2018.
“We expect to report first-quarter 2020 sequential revenue growth in line with the sequential revenue growth reported for the fourth quarter of 2019.”
Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) today announced its receipt of a notice of default from MXY Holdings LLC related to a US$5,000,000 note for which it provided a guaranty as a condition to Moxie extending the loan to GGB Beauty LLC on July 8, 2019. According to the update, the note had a January 31, 2020, maturity date and the parties were unable to reach agreement as to an extension. In conjunction, the company also received notice that its obligations with respect to the previously announced US$4,000,000 termination fee owed to Moxie would also be accelerated and deemed immediately due and payable. Green Growth Brands is reviewing the notices and will continue working with Moxie to reach resolution on a restructuring solution as to both the note and the termination fee.