It’s time for your Daily Hit of cannabis financial news for July 23, 2018.
On the Site
Acreage Holdings continues to quickly take charge in dominating the U.S. cannabis scene. Today’s news of raising $119 million will comfortably position the company to go public on the Canadian Securities Exchange this year. In addition to raising what could be the largest private round in the U.S. cannabis industry, Acreage completed the roll-up of control positions in several U.S. states.
Penny stock cannabis company PotNetwork Holdings Inc. (POTN) reversed its recent decision to become a fully reporting SEC company on Sunday. Just a days ago on July 16, PotNetwork said it had filed a Form 10 with the Securities and Exchange Commission (SEC) to become a fully reporting company.
The Ultimate Meet-Cute: Hollywood & Weed
Although it’s no secret that many Hollywood stars have been known to indulge in cannabis use from time to time, most have been reluctant to publicly open up about their affinity for cannabis. But now that recreational cannabis is legal in California, it seems like every celebrity with even a modicum of fame is rushing to cash in on the legal cannabis industry.
In Other News
Hemp oil supplier and manufacturer, CV Sciences (CVSI), announced that it has applied to list on the NASDAQ Capital Market. Until approved, the company will continue trading on the OTC Markets under its current symbol, CVSI. “We believe up-listing from the OTC Market to the Nasdaq Capital Market will increase corporate visibility, improve liquidity, and broaden awareness in the financial markets,” said CV Sciences CEO Joseph Dowling. Additionally, the company’s Board of Directors has approved a reverse stock split of all outstanding shares of common stock. If approved by stockholders, the company will have a ration sufficient to meet NASDAQ’s minimum bid price requirement.
Namaste Technologies (NXTTF) announced today the filing of its unaudited third quarter financial statements. Revenue for the quarter rose by 32% from $3.1 million to $4.1 million, compared to the same period in the previous year. The increase in revenue was attributed to organic growth in the company’s vaporizer business and was generated in several key markets. The gross profit margin declined from 22% to 21%, but overall, gross profits rose from approximately $700,000 to $900,000. “We are pleased to see a 32% increase in quarterly revenue compared to the same period last year, due to organic growth in the Company’s vaporizer business,” stated Namaste CFO, Kenneth Ngo. “The Q3 results are very encouraging especially considering that Namaste divested its U.S assets and revenue which accounted for 14.4% of the total revenue during Q3 of 2017.”
Organigram Holdings Inc.
Organigram Holdings Inc. (OGRMF) today gave shareholders an update on the progress of the expansion of its cannabis production facility, located in Moncton, New Brunswick. The company is in the final stages planting the remaining three of the sixteen three-tier Phase 3 cultivation rooms. Staggered harvests from the company’s Phase 3 cultivation rooms are expected to begin in August. Construction on the facility’s Phase 4 expansion has already started and will be completed over three stages in 2018 and 2019 and should cost the company approximately $110 million. Once completed, Organigram’s cultivation capacity will increase to 113,000 kilograms per year. “We are pleased to successfully complete our latest expansion project on time and on budget to meet the needs of the existing domestic and international medical market as well as the launch of the recreational adult-use market in Canada on October 17, 2018,” said Greg Engel, CEO of Organigram.