It’s time for your Daily Hit of cannabis financial news for August 5, 2019.
On The Site
The GMR Index
The Green Market Report Cannabis Company Index started 2019 on a high note as the first quarter jumped 40%, but the air came out of the market during the second quarter and the entire group took a tumble. Many of the cannabis stocks slid as much as 20%. This happened despite the number of large deals announced during the quarter that set the stage for massive consolidation.
The Green Market Report Index fell 21% in the second quarter but is still up by 19% for the six months of 2019. To get an idea of how poorly the cannabis stocks performed, the S&P 500 rose by 4.3% in the second quarter. Worries over the trade war with China did dampen the broader market and funds are flowing more into the bond market, but the equities still managed to squeak out a positive performance.
California-based cannabis company Henry’s Original (Henry’s) closed on a Series B investment led by New York-based private equity firm Merida Capital Partners. Henry’s said it plans on using the money to expand its cultivation, processing, sales and marketing operations.
Henry’s has created a reputation for Clean Green-certified flower and pre-roll products that are cultivated entirely in Mendocino County, California. The company stated that it holds thirteen state licenses including a nursery, cultivation, processing, distribution and a retail dispensary license. The company said it has more than 100,000 square feet of cultivation in California.
In Other News
Colorado Department of Revenue’s Marijuana Enforcement Division (MED) released its 2018 annual update for the fifth straight year. The update provides an overview of Colorado’s legal marijuana industry using data taken directly from the state’s seed-to-sale marijuana inventory tracking system.
- The adult-use market accounted for 66% of the total pounds of marijuana flower sold to consumers in 2018, and accounted for 86% of the total units of edibles sold to consumers.
- Adult-use plants accounted for approximately 75% of the total plants cultivated in Colorado during the months of July to December.
- An average of 1,316 new occupational licenses were issued each month. Approximately 30% of the employee licenses that expired in 2018 were renewed.
Asia’s fastest growing ‘Cannabis’ company – ‘CannAcubed Pte Ltd’ delivered its first CBD supply order to one of Hong Kong’s most respected publicly listed pharmaceutical Companies – ‘Sanai Health Industry Group Company Limited’. An undisclosed volume of pure pharmaceutical grade 99.99% CBD isolate was successfully delivered to Sanai’s Head office in HK last week, with the 2 parties having already signed an exclusive supply deal between them several months prior.
Sanai Health Industry Group Company Limited is a listed company trading in the Hong Kong Stock Exchange (Stock code: 1889.hk). The Group provides a range of comprehensive products and services across the health care industry. In mainland China, the Group owns a GMP standard pharmaceutical plant, and maintain an extensive distribution network for pharmaceutical products nationwide. Sanai Health also owns a genetic testing laboratory in Hong Kong and is heavily engaged in the cannabidiol (CBD) business.
Global Payout Inc. (OTCPink: GOHED) and its wholly-owned subsidiary MTrac Tech Corporation are pleased to announce the launch of the MTrac payment platform in Louisiana’s newly operational medical cannabis industry. This launch is unique in that it is the first state in which the MTrac system will be deployed at every level of the supply chain at the moment the market goes live, which has officially been announced as this Tuesday, August 6, 2019.