It’s time for your Daily Hit of cannabis financial news for March 18, 2020.
On The Site
Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) delivered its financial results for the 2019 fourth quarter and fiscal year with a 22% sequential increase in quarterly net cannabis revenue to $6 million. Aleafia said the increase was primarily due to a $1.0 million jump in cannabis revenue.
For the fiscal year, net revenue was $16.4 million, an increase of 391% over the previous year. The increase was attributed to an $11.0 million increase in net cannabis revenue, along with an increase of $2.0 million in clinic revenue.
The fourth-quarter net loss was $9.8 million versus $1.9 million in the previous quarter. This loss was primarily due to non-cash items including a decline of $8.0 million in unrealized gain on the fair value of biological assets compared to Q3 2019, and a non-cash $3.6 million deferred income tax expense in the quarter.
The coronavirus has had a big impact on the world’s economy, and even more so on the financial cannabis market. While the S&P Index has seen a 17% drop, various marijuana companies have experienced a drop of 30% and more. Of course, this raises the question of whether it’s a good time to buy cannabis stocks right now, and if there’s any chance of finding a bargain.
In Other News
Wana Brands has tapped seasoned cannabis marketing pro Joe Hodas to join the Wana C-Suite as Chief Marketing Officer. In this newly created position, Hodas is responsible for overseeing the planning, development and execution of the organization’s marketing and advertising initiatives. He is based in Wana’s Boulder headquarters and reports to CEO Nancy Whiteman.
“I’ve known Joe for many years and have always been impressed with his innate abilities as a marketer, communicator and industry leader. When we saw the right timing to bring Joe into the Wana team, we jumped at the opportunity to have him join us,” Whiteman noted. “With Wana’s international expansion Joe will ensure that our brand and message remain consistent while helping us deliver at the highest level on the potential that every new market expansion provides. The influence of his previous marketing work in the cannabis industry is undeniable.”
The common shares of CanaFarma Hemp Products Corp., have been approved for listing on the CSE. The symbol is CFNA and trading is expected to begin on March 19.
Core One Labs
Core One Labs Inc. (CSE: COOL), (OTCQX: CLABF) has signed definitive agreements with respect to a CDN$1,500,000 convertible debt facility with Cannabis Growth Opportunity Corporation. In addition to the Debenture and the Warrants, the Company and CGOC also exchanged approximately CDN$2,000,000 worth of each other’s common shares, with the company issuing to CGOC 5,333,333 common shares at an agreed value of $0.375 per share, and CGOC issuing 3,149,606 common shares to the company at an agreed value of $0.635 per share.