It’s time for your Daily Hit of cannabis financial news for May 12, 2020.
On The Site
Psychedelic medicine company Champignon Brands Inc. (OTCQB: SHRMF) is acquiring California based ketamine treatment company Wellness Clinic of Orange County Inc. It is a cash and stock deal with Champignon paying $600,000, plus 1 million common shares of Champignon and 500,000 common shares of Champignon payable only if the Wellness Clinic collects top-line revenue of at least $1,500,000, over the 18-month period.
“We are thrilled to begin executing on our North American expansion strategy by acquiring our first U.S. based, revenue-generating ketamine center- Wellness Clinic of Orange County,” said Dr. Roger McIntyre, Chief Executive Officer, Champignon. “This acquisition represents a major milestone as we begin to accelerate our vision of establishing significant scale and a sizable footprint of integrated ketamine centric clinics committed to providing innovative care and therapeutic options to improve the quality of life of patients suffering from chronic disease states that have failed conventional treatments.”
MariMed Inc. (MRMD:OTCQX) announced preliminary, unaudited, select financial results for the quarter ending March 31, 2020. Revenue increased 112% to $7.5 million versus $3.5 million in the first quarter of 2019. The company did not release a net profit or loss number, but it did say that it had EBITDA of $1.5 million, compared with an EBITDA loss of $4,000 in Q1 2019. MariMed also delivered a gross profit of $4.6 million compared with $2.3 million in Q1 2019.
“The success of our consolidation strategy contributed to our sales momentum in the first quarter of 2020, enabling us to grow quarterly revenues by 112% compared to the prior-year period,” said Bob Fireman, CEO of MariMed. “We are pleased with the consistently strong performances reported by our consolidated cannabis businesses in Illinois and Massachusetts as well as an increase in licensing revenues, in line with our strategic growth plan.”
It is not news that medical marijuana companies are constantly innovating to offer cannabis-derived products specifically formulated for those suffering from life-threatening and debilitating illnesses such as autism, cancer, and epilepsy. What doesn’t regularly make the headlines is the fact that many of them are creating and partnering with non-profit organizations in order to support providers and patients in turning that life-saving (or at least life-enhancing) corner.
Hope Grows For Autism, a nonprofit aimed at improving the lives of families affected by autism through research, education, and the advocacy of medical natural treatments was founded by Erica Daniels. Daniels is the mother of an autistic child, and her quest for a better quality of life for her son and family led her to discover the overwhelming significance of diet and medical cannabis in addressing her child’s autism.
In Other News
THC Global Group Limited (THC Global or the Company) (ASX:THC) is pleased to announce the Company’s acquisition of Tetra Health (Tetra), a leading clinic network in Australia facilitating access to legal medicinal cannabis medicines to Australian patients.
THC Global CEO Ken Charteris said: “We are very pleased to have acquired Tetra Health. Through this acquisition, we will be able to rapidly increase the number of Australian patients that can access cannabis, including our own high-quality low patient cost products. Going forward, we will look to further broaden the current network and potentially expand across the Tasman and other regions. THC Global believes this acquisition will deliver exceptional value to our shareholders.”
Tetra Health Overview
Tetra operates a clinic network connecting patients and medical practitioners to prescribers of medicinal cannabis medicines in Australia. Tetra’s medical practitioner network is significant, with over 600 referring physicians, 30 prescribing physicians and a national network of dispensing Pharmacies. Additionally, Tetra has over 10,000 prospective patients within its current database, and currently supports over 1,100 active Australian patients.