On The Website
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) Co-CEO Bruce Linton said he was stepping down leaving Mark Zekulin as the sole CEO while the company begins a search for a new top executive. The company said it would consider both internal and external options. Rade Kovacevic, who currently heads up all Canadian operations and recreational strategy will assume the role of President. These changes are effective immediately.
The move comes as a surprise as Linton has been the face of Canopy for years. That Linton stated that the board decided suggests it wasn’t his decision. His biography was also immediately removed from the company’s homepage.
The federal republic nature of the United States of America requires that each state in the nation simultaneously cooperate and compete in all aspects of our society and the marijuana industry is no exception. Each state is perpetually in a free market arms race with the other states to concurrently balance the need to protect the social values of its constitutes and support the free-enterprise competitive edge of its industry. As the marijuana industry matures, we see each state taking turns making marijuana industry chess moves in reaction to the other states’ last move. Some moves are minor En Passant pawn shifting to adjust and improve existing marijuana regulations and other moves are complex opening moves like the Botvinnik Variation of the Semi-Slave Defense (I had to look it up) to catch up to established marijuana regulatory systems.
In Other News
Grown Rogue revenue grew to $1.9 million, a 548% increase from revenue of $0.3 million in its second fiscal quarter ended April 30, 2018, and a 125% increase on a consecutive quarterly basis from $0.8 million in Grown Rogue’s first quarter of fiscal 2019. Organic sales growth are driven through the internal sales force, third party distribution, and strengthening of the Grown Rogue brand.
F2019 Q2 Adjusted Gross Margin was $0.4 million, or 20% of revenues, a substantial improvement from Adjusted Gross Margin of ($0.04) million for the same period last year. Adjusted Gross Margin improved as a result of the efforts of the Company over the past year to refine its cultivation processes to be more efficient, resulting in lower cost of sales, while also increasing revenue.
General and administrative expenses were $1.3 million for the second quarter of fiscal 2019, compared to similar expenses of $0.6 million for the second quarter of fiscal 2018. The increase in expenses was primarily related to the expanded scope of operations and associated sales, general and administrative support. Grown Rogue’s Adjusted EBITDA3 amounted to ($1.0) million for the three months ended April 30 2019, compared to ($0.6) million for the three months ended April 30, 2018. The increased loss was primarily attributable to infrastructure investments required to support the company’s growth plans.
Kona Gold Solutions, Inc. (OTC Pink: KGKG), a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, is pleased to announce it has beat Second Quarter protected revenue of $400,000 by over $320,000. Kona Gold had its first ever profitable quarter on revenue of over $720,000 from sales of its popular Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters. The Company will surpass $1 million in revenue for 2019 this month.
SLANG Worldwide Inc. (CNSX: SLNG) announced the outcome of the accelerated expiry of its warrants issued on July 23, 2018, and originally expiring on July 21, 2020. Since the announcement of the accelerated expiry of the Warrants on May 24, 2019, 8,841,319 Warrants were exercised prior to the accelerated expiration date of June 28, 2019 and the Company received aggregate proceeds of approximately C$10.2 million in connection therewith. Overall, nearly 13.2 million Warrants were exercised, representing 98% of the total Warrants originally issued. As a result, the Company now has common shares outstanding of 225,557,884. 260,608 warrants expired unexercised.