It’s time for your Daily Hit of cannabis financial news for August 2, 2018.
On the Site
Zynerba Pharmaceuticals Inc.
Zynerba Pharmaceuticals Inc. (ZYNE) reported a net loss of $12 million and a diluted net loss per share of $(0.89) for the second quarter ending June 30, 2018. General and administrative expenses were $3.4 million, including stock-based compensation expense of $1.0 million. Research and development expenses for the second quarter of 2018 were $8.5 million, including stock-based compensation of $0.8 million.
New York’s Cannabis Jobs Could Rival California’s
Even though California recently surpassed the U.K. to become the world’s fifth largest economy, the cannabis economy in the Golden State could soon be surpassed by that of the Empire State, a new study shows. The study, published by Joblift, shows that cannabis growth in California is “steadily declining,” while New York is experiencing strong growth. New York is now third in terms of gross domestic product and is experiencing a “surge in medical marijuana job postings,” with the study saying it could hold “the most potential for overall growth in the sector.”
In Other News
MPX Bioceutical Corporation
MPX Bioceutical Corporation (MPX) today reported its financial results for the fiscal year ending on March 31, 2018. Revenue for the year increased by $16.9 million to $21. 3 million and was driven primarily by the company’s Phoenix-based medical cannabis dispensary chain Health for Life. Comprehensive losses for the year totaled $18.8 million, while gross profits for the year were approximately $11.18 million. Cash and cash equivalents were $8.5 million, down significantly from $21.5 million in the previous year. “Fiscal year 2018 was a breakthrough year for the Company. As a result of our heavy investment in our long-term growth strategy, our operations now span multiple jurisdictions in the U.S. and Canada, and we believe we have the capabilities to continue to execute our aggressive expansion strategy to meet the demands of the evolving medicinal and adult-use cannabis market,” said MPX Chief Operating Officer Beth Stavola.
Khiron Life Sciences Corp.
Khiron Life Sciences Corp. (KHRN) announced today that it has notified the Colombian Ministry of Justice that it has expanded its cultivation area to 17.5 hectares of land bordering the company’s existing cultivation areas. Located near Ibague, Colombia, the company believes that the site is ideally situated with regards to climate, water sourcing, and access to skilled labor. The location is estimated to be capable of producing approximately 100,000 kilograms of cannabis annually, which represents a four-fold increase in the company’s current production capacity. “The expansion of our cultivation capacity is consistent with our stated objective to meet the medical needs of 1 million patients in Latin America,” stated Khiron CEO, Alvaro Torres. “We are also very pleased with the regulatory progress we have made with respect to being able to commercialize our strains. We anticipate being able to bring products to market and generate initial revenue before the conclusion of 2018.”
Green Thumb Industries Inc.
Green Thumb Industries Inc. (GTII) announced the closing of its CAD$80.3 million bought deal financing. The financing was co-led by Canaccord Genuity Corp. and GMP Securities L.P., and also included Beacon Securities Limited, Echelon Wealth Partners Inc., and Eight Capital. The company will use the proceeds from the offering for working capital, business development, the acquisition of a medical cannabis license in New York, and the buildout of five dispensaries in Ohio.
Golden Leaf Holdings Ltd.
Golden Leaf Holdings Ltd. announced that it had received regulatory approval from the city of Portland, Oregon for its extraction facility. The license was the last round of approval needed before the company could begin extraction operations, a process the company has already begun. “The next few days are important for our Company’s production team, as we substantiate our equipment performance. We have a good idea of what they are capable of producing, we just want the hard facts and data,” said William Simpson, CEO, Golden Leaf Holdings. “Once the verification process is complete, we will have a stronger line of sight to production capacity that our sales team can rely on to make market penetration and competitive pricing decisions.”
ABcann Global Corporation
ABcann Global Corporation (ABCCF) announced that effective immediately, the company will now be known as VIVO Cannabis Inc., which the company believes will better reflect its purpose and direction. The name change will officially take place at the market open on August 7, 2018, and the company’s new ticker symbol on the TSX Venture Exchange will be VIVO. “ABcann was an early leader in the burgeoning cannabis industry. As a Licensed Producer since 2014, we have the experience, the knowledge, and the people to create and deliver superior products,” said VIVO CEO, Barry Fishman. “As VIVO Cannabis, we embrace the mission to improve lives, and we’re well-positioned to continue to be a recognized leader in bringing innovative products and exceptional customer experience to the market.”