The Daily Hit: January 8, 2020

It’s time for your Daily Hit of cannabis financial news for January 8, 2020.

On The Site

Justice Grown

A multi-state cannabis operator, Justice Grown, was recently awarded five total licenses across two states. The company was awarded two licenses in Utah and three in Missouri. The recent approval of these licenses brings Justice Grown’s operations to a total of seven states. In addition to Missouri and Utah, the company operates in Illinois, California, Pennsylvania, New Jersey, and Massachusetts.

The competition for aspiring commercial cannabis cultivators in Missouri was fierce. With almost 600 applicants and only 60 spots, hundreds of groups were out thousands of dollars and the countless hours that were put into their applications. The Missouri Department of Health and Senior Services has already been sued by Sarcoxie Nurseries, who felt the ruling on approved cannabis cultivation facilities was unjust. In Utah, the competition for “medical cannabis pharmacies”, as Utah calls dispensaries, was even tougher with only 14 total licenses awarded, and a maximum of two licenses per company. Justice Grown’s pharmacies will be in Salt Lake City and St. George, Utah.

Subversive REIT

A new Ontario-based limited partnership created to buy cannabis-based real estate businesses called Subversive Real Estate Acquisition REIT closed on its initial public offering by raising $200 million. Making this the largest post-market correction equity capital raise to date. Subversive REIT also began trading its Class A Restricted Voting Units on the NEO Exchange as NEO:SVX.UN.

Deal Is Off

As the cannabis industry faces pressure, the valuation retractions have caused several proposed deals to unravel. The lastest is between Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF). Bhang and its wholly-owned operating subsidiary, Bhang Corporation has terminated its agreement with Origin House and its wholly-owned subsidiary, Kaya Management, Inc.

With regards to the termination agreement, Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

In Other News

GrowGeneration

GrowGeneration Corp. (NASDAQ: GRWG) reported revenue of $80.0 million for the 2019 fiscal year-end, an increase of $51.0 million or 176% versus 2018. The revenue for the fourth quarter of 2019 was $26 million versus $9.1 million for the same time period in 2018.

The company did not release the full report of its earnings. The press release on its revenue did not include any information on profits or losses. It did note that same-store sales were up 62% for the quarter versus last year’s fourth quarter and same-store sales were up 36% for the fiscal year 2019 versus 2018.

Darren Lampert, Co-Founder and CEO, said, “The Company’s fiscal year ending 2019 record financial results reflect our continued focus on revenue growth and EBITDA expansion. Revenue was up 176% year over year to $80 million. Our same-store sales were up 62% Q4 2019 versus Q4 2018. For the full year, same-store sales were up 36% versus full year 2018. Our online business is now branded GrowGen.Pro and is being integrated as part of our omni channel strategy with all our stores locations, ” Order online and Pickup in store”. GrowGeneration Management Corp, our commercial division, is now approaching a $20 million segment of the business. The Company completed the rollout of its new ERP platform and all of our store operations are on our ERP platform. The GrowGen ERP platform is designed to lower costs, improve departmental productivity, integrate our online and store sales and supply channels and provides forecasting and reporting tools.

The Green Solution

The Green Solution (TGS), with 21 dispensary locations in Colorado, has launched a new, budget-friendly flower line, Sunlit Farms, available now at all locations. Starting at only $13.95 per eighth, Sunlit Farms is the dispensary’s most affordable bud yet. The new flower has sativa, indica and hybrid options, with varieties including Moon Gas, Satan’s Spinach, High-Key, Green Frostbite, Bruh and Gassed. Sunlit Farms flower is pre-packaged whole bud value flower from both indoor and outdoor grows.

Front Range

Front Range Biosciences announced today an extended partnership with Aligned Distributing LLC. Since 2019, Front Range Biosciences and Aligned Distributing have had a sales partnership, and the extended multi-year agreement makes Front Range Bioscience’s world-class hemp varieties a fixture of Aligned Distributing’s national product portfolio.

Aligned Distributing sells equipment and supplies to indoor and field cultivators across the United States and Canada. As the uses for industrial hemp expands, farmers in various regions and climates have begun to add the crop to their rotations. The partnership leverages Aligned Distributing’s national market presence to enhance Front Range Bioscience’s sales and distribution capabilities of reliable seeds, seedlings and rooted cutting designed for successful yields.

Gage Cannabis

Gage Cannabis Co. will open Cookies, a new flagship cannabis provisioning center in the heart of Detroit, with a mammoth blue street party. Cookies is a cannabis brand in North America and will be located at 6030 E. 8 Mile, Detroit.

 

 

Leave a Reply

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

You may also like


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


Back to Top

You have Successfully Subscribed!