It’s time for your Daily Hit of cannabis financial news for February 4, 2020.
On The Site
Green Wave Advisors
Green Wave Advisors has released a new report explaining the impact of the federal prohibition on cannabis businesses. Since many multistate operators (MSO)’s have gone public, the companies are including financial disclosures explaining the influence of 280E.
This tax code prevents those “trafficking” federally illegal substances from claiming business-related deductions on their taxes, and unfortunately at this time that includes cannabis, even if the business is operating legally at the state level.
North Carolina-based Franny’s Farmacy announced on Friday, January 31st, the launch of its third online public offering. The company said the goal of this online public offering is to support the expansion of Franny’s Manufacturing, where all of its Franny’s branded edibles, topicals, lotions, treats, and more are made for the men, women, children, and pets they call loyal customers.
So far the company has raised $47, 586 from 85 investors. The company’s valuation is listed as $3 million. Shares are priced at $2.
Kali-Extracts, Inc. (OTC: KALY) said that it has entered into a letter of intent (LOI) under which KALY could receive a $20 million investment to fund its Cannabis Biopharmaceutical Technology. The proposed investment values KALY’s cannabis biopharmaceutical technology at $50 million. The company said in a statement that the confidential terms of the LOI target a planned $5 million first tranche within ninety days.
In Other News
Lift & Co. Corp. (TSXV:LIFT) (OTCQB:LFCOF) reported that its total revenues for the third quarter increased 11% to $926,429 for the three-month period ended December 31, 2019. The net loss for the quarter was $1.5 million. The earnings per share for the quarter were a loss of two cents per share. Revenue increased 41% to $4.6 million for the nine-month period, compared to the same periods in the prior year. Loss from operations decreased 7% to $2 million for the three-month period and decreased by 17% to $4.8 million for the nine-month period.
Revenue fell for the Lift & Co. trade show to $427,204 in the third quarter versus $501,516 in the previous year. The company reported a loss of $161,501 on event marketing for that period. For the past nine months, though the company reported $3.5 million in revenue for the events and a net income of $1.1 million beating the previous year’s net income of $529,416 for the same time period.
Dixie Brands Inc. (CSE: DIXI.U) (OTCQX: DXBRF) announced that its wholly-owned subsidiary, AcesoHemp, is adding to its existing Health & Wellness offering via the introduction of two new consumer-driven product segments – Healthy Beauty and Performance Management.