The Daily Hit: January 20, 2021

It’s time for your Daily Hit of financial news for January 20, 2021.

On the Site

Valens

The Valens Company Inc.  (OTCQX: VLNCF)  provided an update on its corporate initiatives following the close of the market on Tuesday. The Valens Company said it made the strategic decision to liquidate the majority of its cannabis oil inventories at market-clearing prices in the fourth quarter of 2020. The stock was falling over 9% on the news to lately sell at $1.92.

This company said that the decision will lead to a related one-time financial statement impact in the fourth quarter of 2020 between $9.0 million and $10.0 million, including a $2.9 million to $3.2 million loss from the sale of bulk cannabis oil, an inventory write-down of $4.7 million to $4.9 million, and a provision on previously entered biomass commitments of $1.4 million to $1.9 million.

Harborside

California-based cannabis company Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) upsized its previously announced brokered private placement of units of the company at a price of C$2.55 per SVS Unit for gross proceeds of approximately C$27 million, representing an increase of C$7 million, due to excess demand.  The stock was lately selling near $2.22, which isn’t far from the company’s 52-week high of $2.40.

ATB Capital Markets and Beacon Securities Limited are co-lead agents to the offering. The company said it expects to use the net proceeds from the offering for general corporate and working capital purposes. The company said in a statement that it has granted the Agents an option to sell up to an additional 15% of the Units in the Offering, exercisable in whole or in part at any time prior to the closing of the Offering. As previously announced, Entourage Effect Capital, LLC, one of the largest shareholders of Harborside, is participating in the offering with approximately C$9.0 million in commitments.

In Other News

CannTrust

CannTrust Holdings Inc. announced today that it has entered into a Restructuring Support Agreement with plaintiffs who have commenced litigation in Canada and the United States asserting claims against CannTrust and others on behalf of a global class of CannTrust shareholders and their legal counsel. The RSA provides a comprehensive framework for settling the Securities Claims under a Court-approved plan of compromise, arrangement and reorganization pursuant to the Companies’ Creditors Arrangement Act ( Canada ).

“Today’s announcement represents a significant milestone towards the resolution of substantially all of the civil litigation claims that were filed against CannTrust following the Company’s non-compliance with certain Health Canada regulations,” said Greg Guyatt , Chief Executive Officer at CannTrust. “Although much work remains to conclude the matters contemplated by the RSA, I am pleased that, in addition to relaunching our medical and recreational businesses, we are also making further tangible progress to exit from the CCAA and put CannTrust in a position to be a successful player in the cannabis industry.”

Fyllo

Fyllo, the leader in digital marketing and compliance solutions for highly regulated industries, announced today it has acquired DataOwl, the leader in cannabis retail point-of-sale marketing and loyalty. DataOwl’s marketing and loyalty solutions power more than 320 cannabis retailers across 25 states as well as Puerto Rico and Jamaica, serving over 3M network members. DataOwl’s AI-powered retail solutions will be integrated into Fyllo’s Compliance Cloud, creating the industry’s first end-to-end, brand-safe marketing platform, allowing cannabis brands to target consumers at every level of the sales funnel. “Fyllo enables ambitious companies, and marketers in highly regulated industries, to scale with speed. Due to the complex legal space, these companies have had to choose between compliance and the ability to grow. Together, Fyllo and DataOwl are able to deliver a first of its kind, end-to-end cannabis marketing and data solutions, answering a significant unmet need in the market,” said Chad Bronstein, CEO and founder of Fyllo.

Leave a Reply

Your email address will not be published. Required fields are marked *


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 24 hours

Did you miss any industry news this week? Then check out March 5, 2021 Our new weekly vi…

@GreenMarketRpt – 2 days

$CWBHF declining revenue, CBD competition, strain patent lawsuit makes the deal unde…

Back to Top

You have Successfully Subscribed!