It’s time for your Daily Hit of cannabis financial news for July 9, 2019.
On the Site
Shawn “JAY-Z” Carter announced online today that he will enter into a multi-year partnership with Caliva as Chief Brand Strategist. The statement said that he will play a crucial role in driving creative direction, outreach efforts, and strategy for the brand. Caliva is one of the largest vertically integrated cannabis companies in California and has quickly become a market leader in cannabis consumer products in the state.
Cannabis and hemp extractor Radient Technologies Inc. (TSXV: RTI)(OTCQX: RDDTF) reported that the company lost C$18 million in its financial results for the fiscal year ending March 31, 2019.The company only reported revenues of C$214,060 for the year and expenses of C$18,319,167. The cost for that revenue was C$131,249. On a positive note, the company’s cash balance at the end of its fiscal year totaled C$31,752,852, representing an increase of $9,897,548 from March 31, 2018.
Executive Spotlight: Erin Gore, Founder & CEO of Garden Society
Erin Gore is founder and CEO of Garden Society, a California-based, cannabis-focused benefit corporation serving women in search of new, more holistic ways to rejuvenate from the rigors of their daily lives. Garden Society creates artisanal confections and sun-grown pre-rolls that connects biodynamic farming, sustainable ingredients and strain-specific cannabis in a variety of products.
Green Growth Brands
Cannabis retailer Green Growth Brands Inc. (CSE: GGB)(OTCQB: GGBXF) is acquiring MXY Holdings LLC also known as Moxie in an all-stock deal valued at $310 million. The deal is expected to close within six months. Moxie is located in three states at this time, California, Nevada, and Pennsylvania. Michigan is set to be the fourth state. The products are in 250 dispensaries, which is a retail relationship that GGB would like to leverage. Moxie provides customers with high-quality recreational and medical cannabis products.
In Other News
The medical cannabis provider Surterra Wellness announced today that it has appointed Fareed Khan as Chief Financial Officer (CFO), who will be responsible for corporate finance, investor relations, tax and shared services activities. Formerly serving as the CFO for the Kellogg Company, Khan helped drive the company’s corporate strategy to include revitalizing key brands through targeted investment and transforming the company’s portfolio through mergers and acquisitions. “Fareed’s track record of translating strategy into initiatives that drive growth for both private and public companies, across a number of industries, will propel our continued success,” said Surterra CEO and Chairman William “Beau” Wrigley, Jr.
KushCo Holdings, Inc. (OTCQX: KSHB) announced today its financial results for the third quarter ending on May 31, 2019. Net revenue was $41.5 million, representing a quarter-over-quarter increase of 17.9%.On a GAAP basis, gross profit was 17.8%. On a GAAP basis, the net loss was $10.6 million, up from $9.2 million in the same period of the previous year. Cash on hand is approximately $12.2 million. “We expect demand to increase for the Company’s core product offerings as the cannabis and hemp markets continue to expand and mature. Our customer base is gaining strength with the largest multi-state operators and Canadian LP’s starting to scale in existing markets, while also preparing for growth in new emerging geographies – including recently approved Illinois,” said KushCo Chairman and CEO Nick Kovacevich.