The Daily Hit: July 15, 2019

It’s time for your Daily Hit of cannabis financial news for July 15:

On The Site


The parent company of Organigram Inc., Organigram Holdings Inc. (NASDAQ: OGI) (TSX VENTURE: OGI) reported its revenue of $24.8 million for the third quarter ending May 31, 2019, fell sequentially from the second quarter net revenue of $26.9 million. However, it was a 621% increase over last year’s net revenue of $3.4 million.

The company said that the third-quarter net revenue reflected significant sales growth from Alberta and Atlantic Canada offset by the timing of shipments to Quebec that occurred subsequent to quarter-end, a large pipeline fill in Q2 2019 for Ontario in advance of opening retail stores that were not fully matched by reorders in Q3 and fewer reorders from British Columbia in Q3 (as demand for legal products remains generally under indexed in that province). The gross revenue of $30.3 million was a 784% increase over last year’s gross revenue of $3.4 million.


A decision by Israel’s Securities Authority last week opens the doors for cannabis companies from around the world to explore a public listing on the Tel Aviv Stock Exchange, even though recreational use is not legal in Israel.

Israel may very soon become not only a well-known center for cannabis innovation and R&D but also a destination for cannabis companies from around the world seeking to raise capital in the public markets.   This is the main import of a decision issued last week by the Israel Securities Authority, not to oppose a pending merger between an Israeli public company and a private company that grows cannabis for recreational use in California. The Securities Authority, in a potentially far-reaching precedent, ruled that it would not oppose the merged company’s public offering of shares even though its activity includes cannabis products for recreational use, which is not legal in Israel.


As our readers are aware, we look at developments in California’s cannabis industry differently than most. AB 97 and SB 97 were signed into law by Governor Newsom on July 1st. These Bills address expiring provisional licenses and add a new tool for law enforcement to use against unlawful cannabis activities. We applaud the Legislature and the Governor for trying. However, these Bills merely assure that the chaos will continue. These Bills address none of the causes of the chaos in California’s cannabis industry.

In Other News

Valens GroWorks

Valens GroWorks Corp. (TSXV: VGW) (OTC: VGWCF) reported that revenue increased to $8.8 million, a 296% increase over the first quarter of 2019. However, the net loss was a whopping $10.5 million. Gross profit increased to $5.1 million, or 58.0% of revenue, for the second quarter of 2019 compared to $0.9 million or 38.3% of revenue in the first quarter.

“The second quarter of 2019 provided a number of significant achievements for Valens as the team continued to successfully execute on our commercial production plan which translated into revenues of $8.8 million for the second quarter, a 296% increase from the first quarter of 2019.  This increase in production volume also allowed the team at Valens to achieve increased efficiency targets resulting in strengthening gross margins to 58.0% of revenue in the second quarter of 2019, up from the 38.3% realized in the first quarter of 2019.” said Tyler Robson, CEO of Valens.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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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


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