It’s time for your Daily Hit of cannabis financial news for December 3, 2019.
On The Site
Cresco Labs Inc. (CSE:CL) (OTCQX: CRLBF) said that it has entered into an equity distribution agreement with Canaccord Genuity Corp. in which the company may sell up to C$55 million of subordinate voting shares. Cresco Labs said that it will use the money “for general corporate purposes (including funding ongoing operations and/or working capital requirements), to repay indebtedness outstanding from time to time, discretionary capital programs and potential future acquisitions.”
The deal is called at “At The Market” since the shares will be distributed at trading prices at the time of the sale, prices may vary between purchasers and during the period of distribution. The company said that the volume and timing of sales, if any, will be determined at the sole discretion of the company’s management and in accordance with the terms of the Equity Distribution Agreement.
Over a year has passed since Michigan voted to legalize recreational cannabis for those 21 and older. Sales for adult-use cannabis began on December 1st and the Michigan Regulatory Agency reported that consumers spent $221,000 on their first day. People lined up for blocks in the cold to have a chance to buy legal marijuana for the first time.
Michigan already had a strong medical cannabis program already in place, bringing in approximately $970 million in sales this year. Though they have a strong medical program, at this time, Ann Arbor is the only place in Michigan where customers can purchase cannabis recreationally. Exclusive Brands, Arbor Wellness and Greenstone Provisions are currently the only three shops in operation in the state.
In Other News
Isodiol International Inc. (CSE: ISOL)(OTCQB: ISOLF) reported its FY2020 second-quarter results with revenues of $1.878M. The company attributes the decrease in revenue primarily to management restructuring and the continued focus on the long term, higher-margin growth. The company is in the process of adapting to the volatile market through a focus on rebranding strategies and restructuring our product line to better address changing market needs. The company reported a net loss of $3.2 million.
Willow Biosciences Inc. (CSE: WLLW)(OTCQB: CANSF) announces that it has received final approval from the Toronto Stock Exchange to list its common shares on the TSX. The Common Shares will commence trading on the TSX effective as of the open of the market on Thursday, December 5, 2019. Upon listing on the TSX, the Common Shares will continue to trade under the symbol “WLLW”. In conjunction with listing on the TSX, the Common Shares will concurrently be delisted from the Canadian Securities Exchange.
Jushi Holdings Inc. (NEO: JUSH.B) (OTCQX: JUSHF) has received approval to begin trading its common shares on the Canadian Securities Exchange under the ticker symbol “JUSH.” The company expects to commence trading on the CSE as of the market open on Monday, December 9, 2019. In conjunction with the new listing, its common shares are expected to be voluntarily delisted from the NEO Exchange at the close of trading on or about Friday, December 6, 2019. Jushi’s shares will continue to trade on the OTCQX under the symbol “JUSHF.”