It’s time for your Daily Hit of cannabis financial news for May 19, 2020.
On the Site
Zenabis Global Inc. (OTC:ZBISF) reported rising revenue in Canadian dollars for the first quarter ending March 31, 2020. Zenabis‘s revenue rose 18% sequentially to $12.6 million and easily surpassing last year’s $4.1 million for the same time period. The net losses dropped dramatically to $1.5 million from the fourth quarter’s net loss of $98 million. The 2019 first-quarter net loss was $7.9 million.
The company attributed the increased sales to provincial customers, and the continued shipments of bulk cannabis for prepaid supply agreements and to other LPs (licensed producers) as well as the company’s focus on higher-value products.
Despite the long-running bear market in the cannabis industry, TerrAscend Corp. (OTCQX: TRSSF) announced a non-brokered private placement for gross proceeds of approximately $30 million. TerrAscend also said that it could supersize the offering to between $35 and $40 million. The company said it plans to use the proceeds for its U.S. expansion and other general purposes.
The company said it has received initial investor commitments totaling $28 million, including a $20 million lead order from JW Asset Management LLC which is expected to close on or about May 21, 2020.
In Other News
HEXO Corp. (NYSE: HEXO) stock fell 29% in trading after the company announced the pricing of its previously announced overnight marketed public offering of units of the company at a price of C$0.90 per Unit. The stock was selling at 52 cents per share or C$0.73. The underwriters for the Offering have agreed to purchase 55,600,000 Units from the Company for total gross proceeds to the Company of C$50,040,000.
Each Unit will be comprised of one common share of the Company and one half of one common share purchase warrant of the Company. Each Warrant will be exercisable to acquire one common share of the Company for a period of 5 years following the closing date of the Offering at an exercise price of C$1.05 per Warrant Share, subject to adjustment in certain events.