It’s time for your daily hit of cannabis financial news for February 12, 2019.
On The Site
Yesterday, the San Francisco-based cannabis dispensary chain, The Apothecarium, announced that they had been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Including in the purchase agreement are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.
With more than 200 employees and $45 million in combined revenue, Apothecarium made for an attractive buy to TerrAscend, which recently has been making moves to enter the U.S. market.
The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) reported a 359% increase in revenue to $7.72 million for the second quarter ending December 31, 2018. This was a 50% sequential increase over the first quarter revenue of $5.14 million.
The company trimmed its losses by delivering a net loss for the quarter of $1.55 million versus a loss of $2.03 million for the same time period last year. The losses dropped sequentially as well from the first quarter net loss of $5.39 million.
Cannabis tech company Cannaregs, Inc. has completed a $2 million capital raise that the company will use to expand services and features across the country under the company’s umbrella of Regs Technology. Cannaregs is the leading web-based data technology platform providing up-to-date access to comprehensive cannabis-related legal data including rules and regulations from municipal, county, state and federal sources.
In Other News
MassRoots, Inc. (MSRT) entered into a definitive agreement to acquire COWA Science Corporation, a supply-chain as a service company, for common-stock consideration valued at approximately $5.78 million, and dependent on COWA Science achieving annual revenue milestones of $2.5 million and $7.5 million. The closing of the Agreement is subject to the satisfaction of customary closing conditions, including the completion of audited financial statements of COWA Science.
Veritas Pharma Inc. (VRTHF) entered into an agreement with TG Initiatives Ltd., to purchase a commercial processing facility for hemp and cannabis products, that asset is capable of making a variety of hemp and cannabis products including edibles for human and animal use. Additionally, this asset provides the capability to make a variety of natural topical creams for pain relief and other ailments including any product that comes out of the company’s acute pain reduction human trials recently announced in Puerto Rico.
The Colorado Department of Revenue (DOR) released its monthly reports for marijuana sales and tax data today, which include the final sales and tax data figures for 2018. The reports show:
Marijuana Tax, License and Fee Revenue (for both medical and adult-use)
In calendar year 2018, marijuana tax, license and fee revenue topped $266.5 million.
This compares to over $247 million in the calendar year 2017.
To date, marijuana tax, license and fee revenue totals over $927 million since adult-use marijuana sales began on January 1, 2014. This figure includes revenue for January 2019.
Marijuana Sales (for both medical and adult-use)
In the calendar year 2018, marijuana sales once again topped $1.5 billion (specifically over $1.55 billion).
This compares to just over $1.5 billion in the calendar year 2017.
To date, marijuana sales have surpassed $6 billion since January 1, 2014.