It’s time for your Daily Hit of cannabis financial news for June 17, 2019.
On The Site
Akerna Approved For Nasdaq
Today MTech Acquisition Corp. and MJ Freeway LLC announced the completion of their merger to form the Akerna Corp. MTech Acquisition Corp. (NASDAQ: MTEC), the first US-listed Special Purpose Acquisition Company (SPAC) focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway, a leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform, has now become the first compliance technology company in the cannabis space to be traded on Nasdaq. Jessica Billingsley also becomes the first female CEO from the cannabis industry to lead a company that will trade on the exchange.
“It’s crazy to think how much money states are flushing down the toilet by keeping marijuana in an illegal market,” said Mason Tvert, VP of Communications at Vicente Sederberg, LLP upon the release of a report that detailed how the over $1.2 billion raised in cannabis tax revenue has helped the state thrive.
According to the report released this week from Vicente Sederberg, LLP, since regulating cannabis for adult use in 2014, the Colorado government has collected more than $1 billion in cannabis-related taxes and fees, which have gone into local and state improvement programs.
Breath of Life
Israeli medical cannabis producer Breath of Life International Ltd. (BOL) cut its valuation for a pending Toronto Stock Exchange initial public offering by about 17%. According to a Canadian regulatory filing on June 14, the company is seeking to list 14% of its shares at a fully allotted valuation of CAD 1.02 billion (USD 827 million), compared to a previous valuation estimate of about $1.19 billion, following its May 23, 2019 prospectus.
Breath of Life produces medical cannabis and cannabis products — including 99%-pure cannabinoids — distributed primarily through pharmacies. The company currently supplies 48 pharmacies from its single facility in the southern Israel kibbutz of Revadim. It is targeting export markets in the E.U., Canada and Australia.
The Netherlands’ on-off love affair with cannabis has taken another twist as three of its largest cities have backed out of a government experiment to end the legal grey areas that exist around the country’s famous coffee shops.
The weed experiment, or Wietexperiment, would allow 10 licensed producers to legally grow and distribute cannabis to Netherlands coffeeshops, which would then sell and serve their customers without fear of sanction.
However, Amsterdam, Rotterdam and The Hague have all dismissed the plans and pulled out of the project, leaving just Utrecht to sign up. Despite their willingness to go ahead, officials in Utrecht have also complained of the plan to force all of its coffee shops to take part, however.
In Other News
Probiotic Holdings, LLC and its subsidiaries Proviera Biotech, LLC and SCD Probiotics announced closing an additional $6 million investment. This includes UMB Bank providing a credit facility and AltCap providing financing through the use of federal New Markets Tax Credits that were purchased by U.S. Bank to facilitate debt financing. The latest round of financing brings the total to $9.3 million since January 2019.
“Through strategic capital and industry partnerships over two decades in business, Probiotic Holdings has developed a broad range of cost-effective bio-based products,” said Probiotic Holdings CEO Matt Wood. “Our cutting-edge technology enables us to produce fermentation products from renewable resources that ultimately perform better and are healthier for people and the planet than traditional petrochemicals.”
Valens GroWorks Corp. (CSE: VGW) (OTC: VGWCF) received conditional approval to list the common shares and warrants of the Company on the TSX Venture Exchange as a Tier 1 life sciences issuer. The listing is subject to the company fulfilling certain requirements of the TSXV in accordance with the terms of its conditional approval letter dated June 14, 2019.
“Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF) announced that it has received and fulfilled an opening purchase order from Dillard’s department stores that will place Wildflower wellness products in Dillard’s stores across the US.”
“Wildflower’s premium hemp CBD infused products can now be seen throughout 292 Dillard’s locations across the U.S. and the company’s retail presence throughout the country continues to expand. Rooted in transparency and best practices, Wildflower is looking forward to entering new key markets such as Florida and Texas to educate new consumers on salable products in the region. Wildflower has received subsequent purchase orders from Dillard’s and is fulfilling orders as they are received.”
Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) announced that the company’s Board of Directors has appointed John Varghese, presently a Director of Golden Leaf, to succeed Karyn Barsa as Interim President and CEO of the Company and lead the Company through a strategic assessment of its management and operations. Ms. Barsa is no longer with the company. Mr. Varghese is mandated to lead the search for a new CEO and a new CFO immediately. Company Controller Jason Benedict will serve as Interim CFO until a qualified replacement has been hired by the company.
Choom (CSE: CHOO)(OTCQB: CHOOF) announced that Choom Niagara, the first legal, adult use cannabis store to operate in Niagara Falls, ON has produced over $49,000 in sales on its opening day.”
“We are really happy with the turnout we had for Choom Niagara’s opening day.” states Chris Bogart, President and CEO of Choom “We’ve had a lot of support from the local community, and we’re excited to bring Choom to Niagara Falls. The feedback from our customers has been fantastic, and that is a testament to our dedicated staff and in-store experience. Doing over $49,000 in sales on the first day of operation is a great milestone for us and our team who have worked so hard to get where we are today.”