It’s time for your Daily Hit of cannabis financial news for August 28, 2018.
On The Site
CV Sciences Inc.
CV Sciences, Inc. (CVSI) issued a statement denying that it had violated securities laws. The statement stemmed from a claim by Citron Research that CV Sciences had a patent application rejected by the United States Patent and Trademark Office (USPTO).
Initially, CV Sciences stock popped 25% in one day prompting Citron to release the negative report on August 20. The stock actually jumped around considerably over a few days. On August 17, the stock opened at $5.62 and then closed up at $6.61 on a normal volume of roughly six million shares.
Following the Citron report, a class action lawsuit was filed on behalf of shareholders that alleges that same violation. “We believe that any claims alleging violations of securities laws by the Company are without merit and we intend to vigorously defend our position,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.
Medical marijuana producer WeedMD Inc. (WDDMF) reported revenues of $2.1 million for the three months ending June 30, 2018. This was an increase of 83% sequentially and 787% over the same time period during last year. Revenue of $3.2 million in the first six months of fiscal 2018 represents a 1271% increase compared to the first half of fiscal 2017.
WeedMD also reported a net comprehensive loss of $1.7 million, which was much lower than last year’s loss of $4.7 million for the same time period. The loss per share for the quarter was $0.02 versus last year’s $0.08.
In Other News
Kush Bottles (KSHB) announced that it has opened a new warehouse facility in Worcester, Massachusetts to serve as the Company’s east coast hub and to support businesses entering the industry or expanding operations within the east coast market.
Strategically located outside of metro Boston, in Worcester, the new warehouse represents the largest facility operated by the Company to date. The new facility positions Kush Bottles as the market leader in providing ancillary solutions for the medical and adult-use states in the region, and stands ready to scale accordingly as more states transition from medical to adult-use. With the 66,000 square foot facility, Kush Bottles expects the new warehouse to minimize the time taken to receive and distribute packaging and supplies, streamline its logistics and have enough storage space for high-demand products with rapid turnover times, thereby ensuring the highest quality and service to clients in the region.
Cannabis Strategic Ventures, Inc.
Cannabis Strategic Ventures, Inc. (NUGS) announces the appointment of Robert H. Cohen M.D. as Medical Advisor to further develop and research Halo Filters and other CBD related brands. Dr. Cohen is a cannabis researcher and highly qualified California cosmetic surgeon.
“Dr. Cohen is a great addition to the NUGS family. His medical expertise will help us continue to improve our products and communicate the health importance related to Cannabis,” commented Cannabis Strategic CEO, Simon Yu. “Cannabis smoke contains a lot of harmful chemicals; our goal is to provide a product that reduces as much of these contaminants as possible without reducing the smoker’s experience. Dr. Cohen will be a tremendous asset to the company. His cannabis research expertise will advance Halo Filters as well as our family of brands.”
Steep Hill announced that one of its lead investors, Merida Capital Partners, has increased its stake in the company and has selected Dr. Andrew Rosenstein to assume the role of interim CEO for the company effective immediately. Dr. Rosenstein replaces Jmîchaeĺe Keller, who has retired for health reasons. As part of Merida’s increased investment, Jeffrey Monat, a partner at Merida, has joined the Steep Hill Board of Directors. He is joined by recently appointed board members Brett Finkelstein of Phyto Partners and successful entrepreneur and investor Stephen Finfer.
Bhang Corporation, the award-winning company famous for its Bhang-branded cannabis edibles, hemp-derived CBD and “cannabis-inspired” terpene consumer-packaged goods has opened a new office in Miami in order to accommodate rapid East Coast and European expansion.
In addition to corporate headquarters in Oakland, California, the new Miami location doubles the office footprint while supporting the company’s manufacturing and distribution growth strategy. Bhang’s recent contracts with Trulieve, based in Florida, and INDIVA, located in Canada, makes the Eastern U.S. an ideal location. The building, its location, and its layout all address Bhang’s need for additional square footage in office, warehouse, product development and distribution space.