It’s time for your Daily Hit of cannabis financial news for March 9, 2020.
Today’s Dow Jones Industrial Average dropped just over 2,000 points. The plunged was the largest one-day point loss for the Dow on record and the largest single-session percentage hit since 2008. The S&P 500’s more than 7% drop was also the most since December 2008, led by stunning declines in the Energy and Financial sectors.
On The Site
Luxury cannabis product company BR Brands LLC has joined forces with long time cannabis beverage company Dixie Brands Inc. (CSE: DIXI.U), (OTCQX: DXBRF). A statement about the merger said that BR Brands will combine operations with Dixie via a reverse takeover. The deal is expected to be completed by the third quarter of 2020.
BR Brands will complete a reverse takeover of Dixie at an implied valuation of Dixie of a minimum of $43 million and will convert approximately $6 million of senior secured indebtedness owing by Dixie into subordinate voting shares of the entity resulting from the business combination, such that following completion of the transaction BR Brands and Dixie shareholders will own approximately 80% and 20%, respectively, of the Resulting Issuer.
The FDA provided an update on its efforts at evaluating CBD products over the past year. The agency said that it is taking several new steps in areas of education, research and enforcement with the ultimate goal of continuing to protect the public health and working to provide market clarity.
“We’re seeing CBD being marketed in a number of different products, such as oil drops, capsules, syrups, food products, such as chocolate bars and teas, cosmetics and other topical lotions and creams, as well as products marketed for pets and other animals – and we understand consumers are seeking out these novel products for a variety of perceived health-related or other reasons,” said the FDA’s statement.
In Other News
Planet 13 Holdings
Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) announced it served an average of ~2,200 customers per day in February while maintaining an average ticket of ~$100.00. The addition of Phase II – the customer-facing production facility, restaurant, and event space – along with increased awareness of the SuperStore has driven year over year same-store growth of ~48% through the first two months of 2020.
“The customer-facing production facility and restaurant have been a clear driver of customer traffic and have led to our visitors spending more time enjoying all the unique features of the SuperStore complex, increasing average ticket size. Our vision for the SuperStore is coming to fruition. It is a one of a kind complex full of related activities and attractions that improve the cannabis shopping experience, drives cross-promotion, provides entertainment, and increases sales,” said Bob Groesbeck, Co-CEO of Planet 13.
Trait Biosciences Inc., a leading biotechnology research organization providing innovative technology to the hemp and cannabis industry, announced today the promotion of Dr. Rebecca White to the role of Chief Technology Officer. She previously served as Chief Operating Officer of Trait Biosciences.
Dr. White will be responsible for the continued development of Trait Biosciences’ technology roadmap, harnessing her extensive experience in product commercialization strategy and leading a team of world-renowned scientists and technologists.