It’s time for your Daily Hit of cannabis financial news for August 26, 2019.
On The Site
Khiron Life Sciences
Latin American cannabis company Khiron Life Sciences Corp. (TSXV: KHRN)(OTCQB: KHRNF) stock slid on news of the company’s second-quarter earnings. Khirondelivered a net loss for the three months ending June 30, 2019, of $10.6 million or $0.11 per share versus last year’s net loss of $6.2 million causing the company stock to drop by over 4% to lately trade at $1.15.
Khiron reported that its revenues of $2.2 million came from the sale of services at its clinics and sale of its cosmeceutical products, both of which began in the fourth quarter of 2018. The company said that revenues were in line with expectations and gross profits were consistent with the first quarter of 2019.
Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) reported that its second-quarter total revenue was $4.3 million as compared to $3.7 million for the same three-month period in 2018 ending June 30. The company said that the 17% quarter-over-quarter increase was due to strong wholesale revenue streams in Oregon and flower sales from our Canadian operations.
The company also delivered a net loss of $3.4 million or $0.01 per share, compared with a net gain of $3.2 million or US$0.01 per share for Q2 2018. The company noted that last year’s net income benefited from favorable changes in the fair value of warrants and debt liabilities of $7.3 million, versus this year’s unfavorable change of $0.1 million for the second quarter.
James E. Wagner
Ontario-based James E. Wagner Cultivation Corporation (TSX VENTURE: JWCA)(OTCQX: JWCAF) reported third fiscal quarter revenue of $749,000, up 32% sequentially from $566,000, and compared to $3,500 in the same year-ago quarter. The net and comprehensive loss was $434,000 or $(0.01) per share in fiscal Q3 2019, improving 87% sequentially from $3.4 million or $(0.04) per share, and improving 91% from $4.6 million or $(0.06) per share in the year-ago quarter.
Party Bus Legislation Advances
A bill is moving forward that would outlaw smoking and vaping in commercial vehicles unless the driver has separate ventilation.
“Much like tours for wineries and breweries, cannabis party buses have sprouted all over California, and a bill designed to rein in the festivities could soon become law. Senate Bill 625, introduced by State Senator Jerry Hill in February, was approved by the California State Assembly’s Appropriations Committee on Wednesday.
The bill, if implemented, would bar passengers from smoking or vaping cannabis products in buses, limousines, and taxicabs, with an exception for limousines and buses whose passenger and driver compartments are completely sealed off and separately ventilated. The bill would also prohibit anyone under twenty-one from being on board in the presence of cannabis smoke.”
In Other News
TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) announced it has received approval for Depository Trade Clearance (DTC) settlement services. DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through DTC are considered to be “DTC eligible”. This electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for certain investor
Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that its board of directors has named Meni Morim as chief executive officer and appointed him to the Company’s board of directors. Meni has served as the Company’s interim CEO since February 4, 2019 and the Company’s Chief Product Officer since May of 2018.
Headset is launching its competitive intelligence tool, Headset Insights, in Canada. Recreational cannabis has been legal country-wide in Canada since October 2018, and the young and growing market is still developing. This will be Canada’s first retail-derived cannabis market read based on aggregated Point of Sale data at the receipt-level.
Headset Insights will first be available in Alberta, the province with the most robust private retail footprint. With Headset Insights, businesses in and out of the cannabis industry will be able to understand the competitive landscape, identify opportunities and measure brand performance. The platform will give brands, licensed producers, retailers and investors the information they need to be a competitive player in this marketplace.
Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) today announced it has closed on a transaction to acquire New York-based Fiorello Pharmaceuticals, one of only 10 companies approved to operate a medical marijuana company in the state. Assets include a manufacturing and cultivation facility in Schenectady County and a retail store in each of the following locations: Manhattan, Rochester, Halfmoon and Nassau County, three of which are open.