The Daily Hit: July 5, 2022

The Daily Hit is a recap of the top cannabis business stories for July 5, 2022.

ON THE SITE

Emerald Health Gives Update on Cannabis Exit

On Monday, Canadian-based Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQB: EMHTF)  reported its financial results for the year ended December 31, 2021, and gave an update on its plans to exit the cannabis industry. Total revenue for Emerald Health in 2021 fell to C$11.8 million from last year’s C$14.2 million. Read more here.

Analyst Sees Value in Beaten Down Cannabis MSOs

Cantor Fitzgerald analyst Pablo Zuanic issued a report this morning in which he sees some value in the beaten-up cannabis group, although he also cautioned that numerous roadblocks remain. He was clear that the group may not have even found a bottom yet as prices continue to slide along with the broader market. Zuanic also noted that even the second quarter might not bring relief on valuations, but he is a selective buyer at these levels. Having said that he said investors may not see any meaningful upside for another two to three years and that it would probably only occur when some sort of federal reform occurs. Read more here.

SPACs Losing Their Mojos as Deals get Pushed Out

SPACs (Special Purpose Acquisition Corp.) were the hottest thing going on in the cannabis industry for the past couple of years, but the buzz may be wearing off. These SPACs would raise millions and then search for a “qualifying transaction.”  In other words, the money was looking for a company to essentially buy and take public. It was an easy way for cannabis companies to get investor money and quickly become publicly-traded stocks. However, these deals frequently turned sour for the secondary buyers dampening the interest. Read more here.

Flower One’s Revenue Drops in Fourth Quarter, Restructures Debt Payments

Flower One Holdings Inc.  (CSE: FONE) (OTCQX: FLOOF) has made some movement with its ongoing restructuring, including the restructuring of its term debt and its master lease. This comes on the heels of the company reporting its annual earnings. For the year ending in December 2021, Flower One reported 2021 revenue of $58.4 million, representing a 70% increase from the prior year. Despite all that revenue, as of December 31, 2021, the company only had cash and cash equivalents of $0.9 million, compared with $1.1 million as of December 31, 2020. Read more here.

Psychedelics Could be a Real Cure for Alcoholism

According to a substance use study, alcohol use disorder accounts for a majority of substance use disorder cases in the U.S., with 14.5 million or 5.3 percent of Americans aged 12 or older meeting diagnostic criteria for an alcohol use disorder in 2017 (AUD). It is a significant medical and social problem in American society, accounting for 88,000 deaths per year and more than $250 billion in annual costs. Alcohol misuse is also implicated in cancer, liver disease, and heart disease. Read more here.

IN OTHER NEWS

Acreage Holdings, Inc., Chalice Brands Ltd.

Acreage Holdings, Inc. (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., today announced that it has executed and closed an amendment to its previously announced asset purchase and services agreement with Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF), completing the sale of the company’s four Oregon retail dispensaries branded as Cannabliss & Co. Read more here.

HEXO Corp, Tilray Brands, Inc.

HEXO Corp (TSX: HEXO; NASDAQ: HEXO) announced that at its reconvened special meeting of shareholders held today, holders of common shares of HEXO approved the previously announced transaction with Tilray Brands, Inc. (Nasdaq | TSX: TLRY) and HT Investments MA LLC. The meeting was originally held on June 14, 2022, and was adjourned prior to shareholders voting on the note transaction in order to provide shareholders with additional time to consider the previously announced amendments to the note transaction. Read more here.

Akerna Corp.

Akerna Corp. (Nasdaq: KERN), an enterprise software company and developer in the global cannabis industry, today announced the closing of its previously announced underwritten public offering of (i) 29,382,861 units of the company consisting of 29,382,861 shares of common stock together with common stock warrants to purchase up to 29,382,861 shares of common stock and (ii) 14,095,400 pre-funded units, consisting of 14,095,400 pre-funded warrants, with each pre-funded warrant exercisable for one share of common stock, together with common warrants to purchase up to 14,095,400 shares of common stock. Read more here.

Entourage Health Corp.

Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE), a Canadian producer and distributor of cannabis products, announced it has amended its existing senior secured credit facility entered into on March 29, 2019, between the company and Bank of Montreal, and its existing second secured credit facility with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada, entered into on September 30, 2020. The latest amendments to the Senior Credit Facility and Second Credit Facility modify the respective terms under which Entourage secured debt financing. Read more here.

Alcohol and Gaming Commission of Ontario

Today the Royal Canadian Mounted Police (RCMP) announced it has laid multiple criminal charges against five individuals. Their investigation discovered that over $3 Million CAD from the illegal sale of cannabis was laundered, including through casinos in the GTA and Niagara regions. Members of the Ontario Provincial Police’s Investigation and Enforcement Bureau (IEB), attached to the Alcohol and Gaming Commission of Ontario (AGCO) provided assistance to the RCMP throughout their investigation. Read more here.

Stem Holdings, Inc.

Stem Holdings, Inc. (OTCQX: STMH, CSE: STEM), a vertically-integrated cannabis and hemp branded products company, announced that the company has received the approval of the Holders of the Warrants and the Holders of the Convertible Debentures to reprice the convertible securities issued in connection with the company’s special warrant financing, which matured on June 27, 2022, and will mature September 14, 2022. Read more here.

The Flowr Corporation

The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) herein announces the resignation of Maurice Levesque and Don Duet from the Board of Directors who are departing in order to pursue other opportunities. Flowr would like to thank Mr. Levesque and Mr. Duet for their service to the Company and wish them success in their future endeavors. Read more here.

Leave a Reply

Your email address will not be published. Required fields are marked *

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.


About Us

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


READ MORE



Recent Tweets

@GreenMarketRpt – 18 mins

Cannabis Operators Plan To Raise Prices, Blaming Inflation

@GreenMarketRpt – 18 mins

Psychedelics Plays A Role in Metamodernism

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.