It’s time for your Daily Hit of cannabis financial news for July 30, 2019.
On The Site
On July 29, 2019, New York Gov. Andrew Cuomo signed into law a measure that reduces the penalties for cannabis possession.
Although New York decriminalized the possession of 23 grams or less of cannabis in 1977, tens of thousands of New Yorkers have still found themselves arrested and charged with possessing small amounts of cannabis. Between 2008 and 2017, approximately 360,000 people have been arrested for cannabis possession, the majority of which have been persons of color.
Though the majority of New York residents support cannabis legalization, the state legislature failed this year to pass a full-legalization bill. The primary reason for the bill’s failure was to due to disagreements over diversity requirements for licensees. To many, the recently passed decriminalization bill is seen as a stop-gap measure while the legislature works out the details of full legalization.
Most of the income was based on a September 2018 sale of its LATAM investment to Aphria. The fair market value of the transaction was $297 million and the cost related to the investment was $93 million leaving a gain on the sale of $204 million. The company disclosed that it was aware of two legal actions relating to the disposal of the LATAM assets but noted that no amounts have been accrued in the financial statements. SOL Global almost doubled its payroll costs going from $6.7 million in 2018 to $13.3 million in 2019.
Pet hemp brand True Leaf Brands Inc. (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) announced its financial results for the fiscal year ending March 31, 2019, including revenues of $2.3 million all reported in Canadian dollars. This was a 65% increase over the previous fiscal year and a 54% increase of fourth-quarter sales year over year, from $386,733 to $595,261.
Revenue growth was driven primarily by the increasing number of top retailers selling True Leaf Pet products, which are now in more than 3,500 stores across North America and Europe, including at Pet Supplies Plus, Pets Corner (U.K.), Das Futterhaus (Germany), and PetSmart (Canada) locations. The company’s European operations contributed $412,551 of the total revenue for this annual period, a 148% increase compared to $166,320 the prior year.
In Other News
Choom (CSE: CHOO)(OTCQB: CHOOF), an emerging adult use cannabis company that has secured one of the largest retail networks in Canada, appointed Corey Gillon as President, effective August 26th, 2019. Gillon joins the company as a seasoned global retail executive to strengthen Choom’s management team as it prepares for rapid growth within the Canadian cannabis retail market.
Alternate Health Corp., (CSE:AHG) (OTCQB:AHGIF), an international leader in CBD extraction, product development and distribution, announced today that the company generated $1.9 million in Q2 revenue and a net loss of $2 million. Alternate Health expects an increase in revenue in Q3, since the quarter will include the full three-month period of Blaine Labs revenue. The Company also anticipates stronger results now that the agreement has closed, and the Company is not distracted with negotiation. Management can focus resources directly on generating revenues and launching new products.
Beleave Inc. (CSE: BE) (OTCQX: BLEVF) announced that it expects to file its audited annual financial statements and management’s discussion and analysis for the twelve months ended March 31, 2019, which were required to be filed by July 29, 2019, in the next thirty days
Rapid Dose Therapeutics Corp. (CSE: DOSE) today reported its financial results for the first quarter of fiscal 2020, which ended on May 31, 2019. The company had revenue of approximately $16 thousand and net losses of $3 million.
C21 Investments Inc. (CSE: CXXI)(OTC: CXXIF) today announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company, under the Company’s symbol CXXIF