William SumnerIt’s time for your Daily Hit of cannabis financial news for June 12, 2019.
On the Site
Oregon House Passes Cannabis “Export” Bill
In a bi-partisan vote of 42-17 on Tuesday, the Oregon House passed a historic measure that will allow Oregon’s Governor to enter into agreements with other consenting states to allow for the legal export of cannabis between state markets. Governor Brown is expected to sign the bill.
MJ Freeway
Seed-to-sale cannabis software company MJ Freeway and MTech Acquisition Corp. (NASDAQ: MTEC) agreed to issue and sell an additional 215,475 shares of Class A common stock at $10.21 per share as part of its previously announced private placement in a deal valued at $2.2 million. The company is expected to go public within months.
Coda Signature
Luxury cannabis brand Coda Signature California closed on a $24.4 million round of Series A funding. Altum Investments is the parent company of The Grow Foundry California, which goes by the name of Coda. The company said that the funds will be used to accelerate expansion into emerging North American markets for Coda Signature-branded premium cannabis-infused edibles, topicals and concentrates. In addition to that, the money will also be used for strategic additions to the management team.
In Other News
Willow Industries
Willow Industries announced that it has raised $2 million in venture funding. The fund raise was co-led by AFI Capital Partners and Welcan Capital and were joined by Halley Venture Partners and Flatiron Venture Partners. Willow Industries is a technology company that specializes in hemp and cannabis decontamination without compromising the integrity of the flower. “The support we received in this financing round from our investors substantiates the value that Willow provides to cannabis cultivators around the country,” said Jill Ellsworth, Willow’s Founder and CEO. “This investment allows us to maintain our position as the leader in what we’re passionate about: consumer safety and helping cultivators across the country sell high-quality, clean, safe cannabis.”
Neptune Wellness Solutions
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced the release of its financial results for the quarter and fiscal year ending on March 31, 2019. Year-over-year evenue for the quarter declined from $7 million to $5.8 million. Net loss for the quarter increased from a loss of $4.8 million to a net loss of $12.4 million. The net loss for the fiscal year was $23.2 million, down considerably from a net income of $20 million in the previous year. Despite the loss, management remains positive in the company’s outlook for the coming fiscal year. “With the largest extraction facility in Canada, with a licence, and a transaction pending for a second facility in the United States, multiple supply partnerships now in hand, and solid and growing relationships with new clients, we are on our way to realizing our objective to become the global leader in cannabis extraction,” said Jim Hamilton, CEO of Neptune.
MediaJel
The cannabis advertising and marketing firm MediaJel announced that it has acquired Potnt Agency, a hemp and cannabis-focused public relations agency. Under the agreement, Potnt CEO Jennifer Price will stay on as MediaJel’s Vice President of Communications. “Public relations is one of the most relevant communications disciplines for the feverishly evolving cannabis industry. The old narrative needs to be changed. Today’s market is fully different, and successful communications embracing this market is, to say the least, quite complicated at the local level,” said Thomas Harrison, Chairman of the Board, MediaJel.
