It’s time for your Daily Hit of cannabis financial news for June 28, 2018.
On The Site
EVIO Inc. (EVIO) entered into an asset purchase agreement with Oregon-based MRX Labs. The company said that it has also formed a strategic alliance with MRX Xtractors which will develop and expand growth in existing and new markets.
According to the company statement, EVIO Inc. will acquire 100% of the assets of MRX Labs, LLC including equipment, real estate, customer lists, customer contracts, rental agreements, and equipment leases. EVIO Labs Portland will relocate its personnel and license to the Tigard facility. The transaction is expected to close on or before July 11, 2018.
CLS Holdings USA, Inc
According to the company statement, Oasis Cannabis had its best month ever last month in generating $200,000 in gross revenues. Due to increased demand and the additional capital that was just raised, CLS plans to triple the grow production capacity over the remainder of 2018. On the retail dispensary side, Oasis has steadily witnessed increased traffic over the past few months, is now up to 400 daily visitors, and is currently generating $650,000 of gross monthly revenue.
In Other News
Hemp Is Legalized
The Senate passed legislation Thursday legalizing hemp as an agricultural commodity as part of an $867 billion Farm Bill. The provision was included in a wide-ranging agriculture and food policy legislation passed by the Senate by a vote of 86-11.
Hemp will be removed from the federal list of controlled substances and the cultivation, processing and sale of industrial hemp will be legalized as part of the legislation. It also will allow researchers to apply for grants from the Agriculture Department and make hemp farmers eligible for crop insurance.
Senate Republican leader Mitch McConnell of Kentucky praised the passage of the bill. I have heard from many Kentucky farmers who agree it’s time to remove the federal hurdles and give our state the opportunity to seize its full potential and once again become the national leader for hemp production. That is why I strongly advocated for this measure to be included in the Farm Bill, McConnell said.
AeroGrow International, Inc.
AeroGrow International, Inc. (AERO) announced results for the fiscal year ended March 31, 2018. The Company recorded total revenue of $32.3 million, an increase of 37% over the prior year. Operating Loss for the full year was $448K up slightly from the prior year primarily due to increased investments in marketing and R&D.
“I am very pleased to report our Fiscal Year 2018 results,” said President and CEO J. Michael Wolfe. “With sales up 37%, increased channels of distribution and several successful product launches, I believe our FY 2018 continued to demonstrate the exceptional progress we are making. Our balance sheet was also strong, which as of March 31, 2018, showed no debt, over $7.5 million of cash on hand, over $4.3 million in good Accounts Receivables and plenty of inventory.”