It’s time for your Daily Hit of cannabis financial news for July 25, 2018.
On the Site
New Mexico Sales
Though marijuana remains illegal in New Mexico for recreational use, the growth seen for medicinal purposes has surged in 2018, surpassing $50 million in sales, due in large part to a huge rise in patient enrollments.
According to data compiled by the New Mexico Department of Health (NMDOH), the 35 commercial cannabis producers in the state reported $51 million in sales in the first six months of the year. That marks a 27 percent increase year-over-year.
On July 3, Nutritional High International Inc. (SPLIF) published a press release boasting Q3 revenues of $2,680,444 CAD, an increase of 408% over Q3 2017. That figure, however, differs from the Q3 financial statements Nutritional High filed with SEDAR. Nutritional High’s formal financial statements show lower 2018 Q3 earnings and the discrepancy remains unaccounted for. Nutritional High did not respond to a request for comment.
In March, Nutritional High acquired Calyx Brands Inc., a California-based distributor, for $3,433,784 CAD. In Q3, Calyx Brands posted sales $1,674,269 CAD, accounting for the majority of Nutritional High’s Q3 2018 revenue. This number is not misstated in Nutritional High’s July 3 press release.
In Other News
MedMen Enterprises Inc. (MMEN.CN) (MMNFF) and The Hacienda Company announced that MedMen has completed a strategic investment in The Hacienda Company, which owns Lowell Herb Co., a California-based cannabis brand known for its pack of pre-rolls called Lowell Smokes.
“Lowell shares a similar vision with MedMen that recognizes cannabis as a consumer product,” said Adam Bierman, MedMen CEO and co-founder. “As we continue to build and promote the MedMen retail experience, we believe that investing in top cannabis consumer brands like Lowell furthers our efforts to secure a loyal consumer base in this nascent industry while delivering growth and long-term value to our shareholders.”
Radient Technologies Inc.
Radient Technologies Inc. (TSXV:RTI) has released its financial results for the fiscal year ended March 31, 2018. The filing read, “The Company has incurred significant losses and generated no significant revenues in its recent history. The Company had a cumulative deficit of $62,010,103 as of March 31, 2018. As a growing business, Radient will likely need more capital than it currently has. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing.”
Still, the company’s cash balance as of March 31, 2018, was approximately $21.9 million, up from $11.4 million on March 31, 2017. Long-term debt of over $8.1 million as of March 31, 2017, was extinguished through a series of pay-downs and restructuring initiatives. The Company completed a private placement with Aurora Cannabis Inc. (ACBFF) for gross proceeds of $6.2 million. Aurora also converted its $2 million convertible debenture into 14.2 million units comprising of one common share and one common share purchase warrant
Novus Acquisition and Development, Corp.
Novus Acquisition and Development, Corp. ( NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a diversified insurance entity in health, liability, annuity and accident, and, the nation’s first carrier/aggregator offering a cannabis health plan announced continued expansion of its cannabis dispensary network that carries Novus Cannabis MedPlan in the U.S. The company has successfully added 13 dispensaries, cultivators, and manufacturers that offer anywhere from 30% to 50% on cannabis medications to the Novus Cannabis MedPlan patient member base.
CV Sciences Inc.
CV Sciences, Inc. (CVSI) announced unaudited second quarter 2018 revenue and selected business highlights for the quarter ended June 30, 2018. Second quarter 2018 revenue is expected to be $12.3 million, up 203% compared to the second quarter of 2017, and a 53% sequential increase over Q1 2018. Company increased retail store count to 1,968 natural and organic health food stores as of June 30, 2018, representing an 11.1% sequential increase over the company’s retail store count for the first quarter.