It’s time for your Daily Hit of cannabis financial news for May 15, 2018.
On The Site
Cronos Group Inc.
Cronos Group Inc. (CRON) reported that its first-quarter total sales rocketed 473% to $2.9 million versus last year’s $0.5 million. Sequentially, sales jumped by 83% from the fourth quarter of 2017 to $1.3 million in the first quarter of 2018.
The stock was rising by 4% in early trading to approximately $6.85 after beating analysts’ expectations for revenue of C$3.6 million or $2.8 million by today’s currency exchange according to Yahoo Finance. Three analysts had given their estimates for the quarter. Five analysts cover the Canadian stock and have an average target price of C$7.95 or $6.19.
Surna Inc. (SRNA) today announced its financial and operational results for the quarter ending on March 31, 2018. The company’s net bookings rose 88%, increasing from $2,454,000 in the previous quarter to $4,623,000. Revenue declined sequentially by 11%, falling from $2,309,000 in the previous quarter to $2,055,000. Compared to the same period in the previous year, however, revenue increased by 29%. The company also announced today that co-founder Brandy M. Keen would resign from her position as Vice President and Secretary, and as a member of the board; effective on May 10, 2018. Keen will continue as a Senior Technical Advisor through 2020.
Alt Thirty Six
Cannabis software provider WebJoint is partnering with digital payment platform company Alt Thirty Six (Alt 36) to provide digital currency options to cannabis consumers. Alt 36 Co-Founder and Chief Executive Officer Ken Ramirez said, “It is the first digital payment platform that uses blockchain to help the cannabis industry go cashless.”
The program will roll out in the next 30-60 days with the beta location in Arizona. Customers will see a box that they can use to purchase the digital currency and then use that money to make their cannabis purchases. It will eventually be made available in over 200 dispensaries that work with WebJoint. Following Arizona, Alt 36 will move on to California and then the rest of the legal states.
The Green Organic Dutchman Holdings Ltd.
Hot off its successful IPO, The Green Organic Dutchman Holdings Ltd. (TGODF) has been granted a supplemental license from Health Canada for the production of cannabis oils. Extracts have become a fast-growing part of the cannabis industry as consumers have opted towards the convenience of vape pens.
In Other News
CV Sciences, Inc.
CV Sciences, Inc. (CVSI) announced its financial results for the first quarter ended March 31, 2018. Record Q1 2018 Sales of $8,071,000, an increase of 114% compared to Q1 2017. Record Q1 2018 Gross Profit of $5,562,000, an increase of 129% compared to Q1 2017. Record Q1 2018 GAAP Net Income of $619,000, an improvement of $4,404,000 when compared to Q1 2017. Record Q1 2018 Cash Flow from Operations of $1,654,000, an improvement of $1,628,000 when compared to Q1 2017. Record Q1 2018 Adjusted EBITDA of $1,822,000, an improvement of $2,012,000 when compared to Q1 2017. Increased Retail Channel Distribution to 1,771 Stores as of March 31, 2018, an increase of 14% compared to three months ago at December 31, 2017
Solis Tek, Inc.
Solis Tek, Inc. (SLTK) Financial results for the first quarter ended March 31, 2018: Revenue for the three months ended March 31, 2018 and 2017 was $1,011,749 and $2,901,826, respectively, a decrease of $1,890,077 or 65%. The decrease was due to several negative factors during the first quarter of 2018, as compared to the first quarter of 2017. Such factors included market instability and uncertainty, reports of over-capacity and price declines at the wholesale level.
PotNetwork Holdings, Inc.
PotNetwork Holdings, Inc. (POTN) announced over $2 million in sales revenues recorded for the month of April. Compared with the $1,009,900 the company achieved in April 2017, April 2018’s revenues represent a 98% year over year increase. PotNetwork Holdings, Inc.’s wholly owned subsidiary Diamond CBD, Inc. recently revealed that Diamond CBD’s Vape Additive, Liquid Gold Vape Juice, Chill Gummies, Tinctures and Biotech Creams, are the brand’s most successful products
TILT Holdings Inc.
Four leading companies in the burgeoning cannabis space announced today a binding letter of intent to merge to form one of the industry’s most comprehensive platforms, operating under the name TILT Holdings Inc. Together, the united companies represent all facets of the industry to provide technology-driven solutions throughout the entire cannabis ecosystem. Baker, Briteside, Sea Hunter and Sante Veritas are the companies that will be combining.
Lowell Herb Co.
Lowell Herb Co. through its trailblazing Social Equity and Reparative Justice Program, will be giving special consideration to recently pardoned, non-violent cannabis offenders and will offer a wide spectrum of resources to individuals hoping to enter the cannabis space at various levels. CEO David Elias describes the ideal candidate as a motivated team member who will contribute to the day-to-day operations of the company in a dynamic way, adding that “We value hard work and dedication and we’re putting a strong emphasis on employing people negatively impacted by cannabis incarceration and those whose lives have been affected by cannabis convictions on their records.”