It’s time for your Daily Hit of cannabis financial news for August 20, 2018.
On The Site
Aurora Cannabis Inc.
Aurora Cannabis Inc. (ACBFF) announced that it has set Friday, August 24, 2018, as the record date for the distribution of Australis units. The distribution is in connection with the spin-out of its subsidiary Australis Capital Inc.
The distribution was previously announced on August 17. According to the statement, Canadian shareholders as Friday will be eligible to receive the distribution. Non-resident shareholders will be entitled to receive a cash payment net of any applicable withholding taxes following a sale of their respective units in the open market by an independent custodian following the distribution. Aurora expects that distribution and listing of Australis on the Canadian Securities Exchange should be completed by the end of September.
California Tax Data & MedMen
The state of California released its tax data for Q2 cannabis sales last week. Tax revenue from the cannabis industry totaled $74,240,257.00 million from April 1, 2018, through June 30, 2018, which includes state cultivation, excise, and sales taxes. It does not include tax revenue collected by each jurisdiction.
The California Department of Tax and Fee Administration also noted the excise tax on cannabis generated $43,490,668.00 million in revenue during the second quarter of the calendar year 2018. The cultivation tax generated $4,482,119.00 million, and the sales tax generated $26,267,470.00 million in revenue.
California cannabis retailer MedMen (MMNFF) said on Monday that its stores accounted for roughly six percent of all legal retail sales of cannabis and cannabis products in the second quarter for the state. MedMen said in a statement that its eight stores represent about two percent of all retailers, meaning on average MedMen stores outperform non-MedMen stores by a factor of three.
In Other News
SanSal Wellness Holdings, Inc.
SanSal Wellness Holdings, Inc. (SSWH), a vertically-integrated agribusiness focused on producing full spectrum natural phytocannabinoid-rich industrial hemp extracts reported its operating results for the three and six months ended June 30, 2018. The company had record sales of $487,169, up 47% from the previous quarter (Q1 2018) and up 106% from Q2 2017. Record gross profits of $169,474, up from a gross loss of $62,252 in fiscal Q2 2017.
Isodiol International Inc.
Isodiol International Inc. (ISOLF) announced the progress of its months-long efforts to develop new hemp-based beers and functional beverages. In May 2018, IsoBev Inc. a wholly owned subsidiary of Isodiol, acquired a turn-key brewing system, including a 7-bbl brewhouse, four 15-bbl fermentation tanks, a 30-bbl fermentation tank, a 15-bbl brite tank, and a 30-bbl brite tank, which is expected to yield between 1,500 and 2,000 bbls of production per year. Since acquiring its brewing equipment, IsoBev has been working with an established beer company on the West Coast to formulate these new beers and functional beverages. IsoBev has also been in negotiations with an industry leading contract brewer with the capacity to fulfill all of its commercial-scale brewing needs nationally and internationally, including in all conventional can, bottle, and keg product formats.
Bespoke Extracts Inc.
Bespoke Extracts, Inc. (BSPK), producer of high quality, great tasting, hemp-derived CBD extract products, today announced the engagement of Daniel M. Slane as a strategic advisor to the Company’s leadership. Bringing Bespoke Extracts over 40 years’ experience in global business, state and federal government and education, he is charged with spearheading and advising management on global expansion opportunities in key international markets, including Asia, Latin America, and Europe.