It’s time for your Daily Hit of cannabis financial news for August 8, 2018:
On The Site
Insys Therapeutics Inc.
Insys Therapeutics Inc. (INSY) delivered its earnings today after the market close and following an earlier announcement that it had settled with the Department of Justice. Insys said that it had agreed to pay $150 million over five years and “with the potential for contingency-based payments associated with certain events that, if they were to occur, management estimates would require additional payments ranging from $0 to $75 million.”
With regards to the company’s second-quarter earnings, Insys delivered gross revenue of $38 million versus last year’s $58.2 million for the same time period. Net revenue was $23.5 million, which missed analyst estimates by $2.4 million and fell dramatically from last year’s $42.5 million. The drop was blamed on lower gross revenue and returns of expired product.
There’s something rotten, it seems, in the state of CBD Naturals and its CBD-related claims. When Jared Berry’s brand CBD Naturals was recently selected as the exclusive distributor of a premier hops/humulus CBD isolate in the United States, he may or may not have expected that he would soon be served with a lawsuit.
The lawsuit comes off the heels of a contentious debate about the origin and trademark rights to extracting CBD from hops (the process trademarked humulus kriya), for which credit is to go to Peak Health Center. The process proves to be promising for CBD medicine as it as a derivative of a legal substance, promising consumers access to CBD in states that have laws against hemp or cannabis CBD.
Isodiol International Inc.
Isodiol International Inc. (ISOLD), a manufacturer of pharmaceutical grade CBD and CBD-based products, announced that its subsidiary, Iso-Sport, has entered into an agreement with ALTIS LLC. Based out of Arizona, ALTIS is a company dedicated to promoting Track & Field through multi-disciplinary uniﬁcation of the sport and provides elite athletes a variety of services such as coaching, integrated support services, and education.
In Other News
General Cannabis Corp.
General Cannabis Corp (CANN) announced financial results for the quarter ended June 30, 2018. The company delivered a net of $3.6 million for the quarter a 130% drop from the previous year’s loss of $1.5 million for the same time period. The loss per share was ($0.10) versus last year’s loss of ($0.08). Revenues jumped to $1.1 million from last year’s $833,000.
SinglePoint Inc. (SING) reported revenues of over $188,000 for the first quarter of 2018, which represents a significant increase as compared to the first quarter of 2017. This revenue increase has been generated by successful acquisitions continuing to grow and operate, including DIGS and JAG. Acquisitions have been a key factor in starting to build a solid financial base.
Sugarmade, Inc. (SGMD), one of the largest publicly traded cannabis-related hydroponics supply companies returns to the OTCQB Venture Market trading venue as a fully reporting company with the U.S. Securities & Exchange Commission. Additionally, the Company makes comments relative to the strong revenue growth it is experiencing within the cannabis supplies marketplace.
Kush Bottles, Inc.
Kush Bottles, Inc. (KSHB) acquired Summit Innovations in May of 2018, and now, with the launch of Kush Energy, has successfully completed a full integration. Kush Energy will focus on servicing the rapidly growing concentrates category, which in many primary cannabis markets now account for nearly half of all sales. Kush Energy will operate eight hazmat compliant distribution facilities across the country, including a new location in Humboldt County in Northern California. Kush Energy’s core products are high purity butane, propane, iso-butane, ethanol, dry-ice and blends. The new division will also work closely with cannabis manufacturers and extraction facilities to ensure cleanliness, product quality, reliable supply, safety, and compliance during the extraction process.
Bespoke Extracts Inc.
Bespoke Extracts, Inc. (BSPK) has named JOH as the exclusive broker of Bespoke CBD products in the Northeastern Region of the United States. Founded in 1956, JOH (www.johare.com) is a national food broker recognized as one of the strongest brokers in the country with 17 offices and strategic partnerships across the U.S. JOH will market Bespoke Extracts’ line of high quality, hemp-derived CBD products direct to retailers through its Specialty Natural channel.