It’s time for your Daily Hit of cannabis financial news for February 1, 2022.
On The Site
Verano (OTC: VRNOF), one of Chicago’s big cannabis companies, is moving into the coveted New York market with a large acquisition. In an all-stock deal valued at $413 million, Chicago-based Verano is buying Goodness Growth Holdings, which has 18 dispensaries, five cultivation centers and a research and development facility.
The deal gives Verano access to New York, one the nation’s largest potential markets, which is poised to allow recreational marijuana sales next year. Chicago rivals Green Thumb Industries, Cresco Labs and PharmaCann already are in New York, where acquisitions offer a key advantage: Only existing medical-marijuana license holders can be vertically integrated, operating both cultivation and retail facilities.
The Scotts Miracle-Gro Company (NYSE: SMG) reported financial results for its fiscal first-quarter with sales dropping as the company had warned weeks ago. The company also announced plans to restructure its hydroponic subsidiary Hawthorne after sales dropped following quarters of huge growth.
Company-wide sales in the quarter dropped 24% to $566 million from last year’s $748 million and Scotts reported a seasonal loss from continuing operations of $0.90 per share. The non-GAAP adjusted loss – which is the basis of the company’s guidance – was $0.88 per share. the net loss was $50 million versus last year’s net income of $25.2 million.
Like a broken record, High Times has seen another CEO depart and has extended its Reg-A offering yet again. High Times just posted a filing with the SEC announcing that CEO Peter Horvath has resigned from his position as Chief Executive Officer and Director effective immediately. The resignation was dated January 25th. The filing stated, ” To our knowledge, Mr. Horvath left his position for personal reasons and there was no dispute or disagreement between Mr. Horvath and the Company.”
One of the more mysterious and incurable diseases facing doctors looking for a treatment or a preventative drug is Alzheimer’s disease (AD), named after the German physician who identified the disease in the early part of the last century. According to the Alzheimer’s Society, there are currently 36 million people with dementia in the world, but as many as 28 million of those living with dementia worldwide do not have a diagnosis. The number of people living with dementia worldwide is expected to double every 20 years. By 2050 it is projected there will be 115 million people with dementia worldwide, 71 percent of whom will live in developing countries.
In Other News
Innovative Industrial Properties, Inc. (NYSE: IIPR) announced today that its operating partnership, IIP Operating Partnership, LP has commenced a public offering, subject to market and other conditions, of $300 million aggregate principal amount of senior notes due 2027.
The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (US-OTC: TGODF), a sustainable global cannabis company is pleased to announce the appointment of Ms. Nichola Thompson to the position of Chief Financial Officer of the company. A finance veteran with over 20 years of experience, Ms. Thompson joins the senior management team at TGOD, having most recently held the position of CFO at Galaxie Brands Corporation, which was acquired by TGOD in November 2021. Ms. Thompson brings a broad range of experience guiding the finance departments of both public and private companies.
Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF), a biotechnology and digital technology company aiming to transform the treatment of mental health and addiction disorders, today announced in preparation for its FDA pre-Investigational New Drug (IND) meeting on February 28th, the company has submitted a pre-IND briefing package to the U.S. Food and Drug Administration (FDA) for a clinical study evaluating MYCO-001 in a structured smoking cessation treatment program.