Its time for your Daily Hit of cannabis financial news.
On the Site
Dixie Brands Says Michigan Market A High Point For Sales
Dixie Brands Inc. (CSE: DIXI.U) (OTCQX: DXBRF) said that it closed out the Michigan market in 2019 on a high note. By entering a packaging and supply agreement with Choice Labs, Dixie grew its sales by 108% and increased dispensary penetration by 33% in the fourth quarter. Chuck Smith, President and CEO of Dixie Brands Inc., said “Expanding into the great state of Michigan was a priority for Dixie in 2019 and the incredible results we have managed to achieve so quickly are a testament to the strength of our brands and the expertise of both our production and commercial teams. And this is only the beginning! With the approval of recreational use, we expect the market to grow exponentially and Dixie’s portfolio is well-positioned to expand on its market-leading position into 2020 and beyond.”
SOL Globals’ CannCure To Go Public Through Reverse Merger
SOL Global Investments Corp.’s (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with Goldstream Minerals Inc. (NEX: GSX.H). The companies entered into a letter of intent dated January 8, 2020, outlining the proposed terms and conditions. Goldstream will buy a 100% interest in CannCure and then do a reverse takeover by the shareholders of CannCure. The deal is expected to close on or near March 31, 2020.
In Other News
KushCo Holdings, Inc. (KSHB) reported financial results for its fiscal first quarter ended November 30, 2019. Net revenue increased 38% from the prior-year quarter to $35.0 million. The net loss was approximately $12.5 million, compared to approximately $8.6 million in the prior-year period. Basic and diluted loss per share was $0.12 compared to $0.11 in the prior-year period. On a Non-GAAP basis, excluding the impact of certain non-recurring charges and gains, net loss for the quarter was $9.2 million and net loss per share was $0.09.
KushCo reiterates its net revenue guidance for fiscal 2020 to be between $230 million and $250 million. The Company also reiterates that included in this financial guidance is its expectation that net revenue from its hemp trading business will exceed $25 million for fiscal 2020. KushCo also reiterates its expectation to achieve positive adjusted EBITDA on a quarterly basis in the second half of fiscal 2020.
Trulieve Set to Open New Storefront in Northwest Florida
Trulieve Cannabis Corp. (CSE: TRUL & OTCQX: TCNNF) a leading cannabis company based in the United States, is on track to open their Fort Walton Beach storefront on January 10th. The location will be their 43rd in Florida and their 45th nationwide. “Trulieve is focused on creating a strong customer-centric experience, and that starts with ensuring that patients across Florida have access to the medications they’ve come to rely on. Expanding our reach inside the Florida Panhandle is just one of the ways we’re doing that. Our well-trained staff is ready and willing to assist patients during every step of the process, from exploring medical cannabis for the first time to transitioning into a new treatment process.”, says Trulieve CEO Kim Rivers. Patients can find THC and CBD products in Trulieve’s stores, in a variety of consumption methods. The store will host a grand opening event on January 10th.
Halo Announces Closed Acquisition of Mendo Distribution and Transportation
Halo Labs Inc., acquired Mendo Distribution and Transportation for $4.95 million. The deal is set to be paid for using Halo’s common shares. The transaction is expected to increase revenue and gross margins across all Californian operations, extend distribution capability in Northern California, launch new edible and white label product lines with Type N license onsite, and reduce overall distribution costs and potentially manufacturing & distribution tax rates.