It’s time for your Daily Hit of cannabis financial news for December 13, 2018.
On The Site
Harvest Health & Recreation, Inc. (CSE: HARV) has formed a joint venture with Aina We Would (AWW), LLC for a real estate investment vehicle that plans to provide funding to purchase cannabis-related real estate assets. In addition to a Harvest subsidiary, AWW is made up of two family offices, Aina Advisors LLC and Stadlen Family Holdings, LLC.
Aina and Stadlen have both committed to fund or arrange up to $100 million to fund projects for the joint venture. The statement said that AWW plans to buy, develop and finance new construction projects, engage in land purchases, capital improvements and sale-leasebacks to Harvest and other operators in the cannabis industry.
HEXO Corp. (TSX: HEXO) (OTC: HYYDF) reported its financial results for the first quarter of the 2019 fiscal year with gross revenue of C$6.7 million versus last year’s C$1.1 million for the same time period. The revenue figure includes C$5.2 million from legal adult-use cannabis sales during the first two weeks of legalization.
Still, the company delivered a net loss of C$14.7 million versus last year’s net loss of C$381,000. Hexo said that the increased loss was mainly due to higher expenses needed for expanding the scale of the operations as it prepared for the legalization of the adult-use market and the realization of stock-based compensation expenses in line with the increased headcount and market share price value of the company.
In Other News
Plus Products Inc. (CSE: PLUS) completed the acquisition of all the assets of California-based cannabis-infused baked goods brand GOOD CO-OP, INC. pursuant to the terms of an asset purchase agreement among the Company, Plus Products Holdings Inc., GOOD and the GOOD security holders’ agent. Under the terms of the agreement, the Company issued 357,464 subordinate voting shares to the shareholders and holders of simple agreements for future equity of GOOD at a valuation of approximately CAD$2,030,000. Of the 357,464 subordinate voting shares issued, 323,451 subordinate voting shares are subject to an earn-out as previously disclosed in the Company’s press release of December 3, 2018.
Treez closed its acquisition of Washington-based traceability software, Mister Kraken, which is used by more than 130 burgeoning cannabis producers and manufacturers in Washington state. Treez will be re-branding the Mr. Kraken product as Grow Treez.
Khiron Life Sciences Corp. (TSXV: KHRN), (OTCQB: KHRNF) completed its acquisition of the Latin American Institute of Neurology and the Nervous System (“ILANS”). ILANS is one of the most respected, fastest growing, and largest health service network providers in Colombia and Latin America.