It’s time for your Daily Hit of cannabis financial news for June 14, 2021.
On The Site
Canadian-based Cronos Group Inc. (NASDAQ: CRON) stock was rising over 2% on news that the company was buying an option to acquire 10.5% of U.S.-based PharmaCann for $110.4 million. The company said that the option exercise will be based upon various factors, including the status of U.S. federal cannabis legalization, as well as regulatory approvals, including in the states where PharmaCann operates that may be required upon exercise.
HEXO Corp. (NYSE: HEXO) reported its financial results for the third quarter fiscal 2021 ended April 30, 2021, with total revenue sliding by $10.2 million sequentially to $22.6 million. It was a 2% improvement over last year’s $22 million for the same time period. Hexo shares were sliding over 5% in early trading to lately sell at $6.24. On a positive note, total net losses were trimmed slightly from the previous quarter from $20.8 million to $20.7 million. However, the losses were slightly higher over the same time period in 2020. All amounts are in Canadian dollars.
Greenway Greenhouse Cannabis Corporation has filed a prospectus for a listing on the Canadian Securities Exchange. The company is majority-owned by Sunrite Greenhouses Ltd., an established cultivator of greenhouse-grown produce within the Del Fresco Group of companies. Greenway currently operates in a hybrid greenhouse, located in Leamington, Ontario, and in an indoor nursery, located in Kingsville, Ontario.
According to the filing, Greenhouse has no revenue to date but is licensed to grow and sell dried cannabis. The first crop was fully harvested in May 2021. It intends to sell the strains called Sun County Kush and Lemon Pound Cake. Greenway says it has over 200 strains within its genetic portfolio and plans to be a wholesaler. The company plans to complete five crop cycles per fiscal year. Greenway has $4.1 million in working capital according to the prospectus.
In Other News
Berlin-based cannabis start-up Sanity Group has closed a $44.2M USD Series A financing round with new investment led by Swiss venture capital firm Redalpine along with US-based Navy Capital and SOJE Capital. GMPVC also participated in the round. This represents the largest round of cannabis funding in Europe to date and brings total investment in Sanity Group to $73M USD. Previous investors include HV Capital, TQ Ventures, Atlantic Food Labs, Cherry Ventures, Bitburger Ventures and SevenVentures. In addition, Sanity Group has attracted prominent celebrity angels including music producers will.i.am, Scooter Braun and actress Alyssa Milano
“The European cannabis market faces exciting developments in the coming months. Compared to the North American market, Europe is now where we were in the U.S. about four years ago. We want to bring our expertise and experience to the table. For our first investment in Europe, it was important for us to find a team that understands the market and has real industry experts in its ranks. The Sanity Group team particularly impressed us with their expertise and clear approach,” says Sean Stiefel, CEO at Navy Capital.
Cirona Labs, a premier innovator in cannabinoids and other functional botanical ingredient manufacturing, announced that it has closed an oversubscribed $1.5 million seed round led by LiDestri Food & Drink, BevSource, and Sweetener Supply. The funding will be used to further expand the company’s research and development, facilities, and team as well as support a general push to market and build stronger relationships with existing brands. “As a newly launched company we are proud to see early market traction and reach this milestone so quickly,” said Hunter Friedland, CEO of Cirona Labs. “It’s clear that the interest in creating products with cannabinoids and other plant medicine is continuing to increase and as a company focused on science and offering sustainable solutions to our customers, we are confident our high-quality products will speak for themselves in the industry.”