It’s time for your Daily Hit of cannabis financial news for May 27th, 2020.
On the Site
Green Organic Dutchman Continues to Have High Net Losses
Organic cannabis company The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) reported revenue of C$3.06 million for the first quarter of 2020 ended March 31, 2020. The company also delivered a net loss of $73.4 million – a staggering amount when the revenues are so small, but it was at least an improvement over the fourth quarter’s net loss of $144 million.
Zynerba Stock Lifts After Positive Study Results For Autism
Zynerba Pharmaceuticals, Inc. (ZYNE) announced positive top-line results from the exploratory, open-label Phase 2 BRIGHT study (An Open-Label Tolerability and Efficacy Study of ZYN002 Administered as a Transdermal Gel to Children and Adolescents with Autism Spectrum Disorder) trial.
The stock was moving higher by over 8% at one point in early trading to lately sell at $6.69. Most of the analysts covering the stock have rated it a Hold according to Yahoo Finance. The average price target is $15.33.
Michigan Upstart Gage Cannabis Partners With Slang
Up and coming Michigan cannabis company Gage Cannabis has announced a partnership with Slang Worldwide Inc. (OTC:SLGWF) to produce and distribute Slang products. The partnership means that Gage will be including its category-leading products O.penVAPE, Pressies, District Edibles, and Bakked in its dispensaries. SLANG will also provide sales consulting services and will receive royalty payments for each branded product sold in the state.
CFN Media Gets PPP Loan, But Stiffs Workers
CFN Enterprises Inc. (OTC:CNFN) also known as CFN Media may have gotten a generous PPP loan, but the company isn’t sharing its largesse with its contract labor. Two people who both worked for the company for years have been left unpaid and the company has turned to ghosting them.
“They never actually let us go,” said Hasty. “We just had to stop working for them. They hadn’t paid their bills in six months.” Hasty said that President Frank Lane had even suggested that the company was working on getting the PPP loan and that CFN Media could pay him when the money showed up. “I’ve had zero contact for two months now,” he said.
In Other News
Aleafia Health Changes TSX Ticker Symbols
Here are the changed tickers:
- Common shares: “AH”
- 5% unsecured convertible debentures: “AH.DB”
- Common share purchase warrants: “AH.WT”
Innovative Industrial Properties Announces Details Surrounding Underwritten Public Offering
The company announced an underwritten public offering of 1,348,389 shares of its common stock for gross proceeds of roughly $100 million. The underwriter has also been allowed a 30-day option to buy up to an additional 202,259 shares.
The company intends to invest in specialized industrial real estate assets and in general corporate purposes with this generated revenue.
MedMen Reports Third Quarter Results
The cannabis giant reported revenue of $45.9 million, up 41% year over year. The Adjusted EBITDA loss was reported at $20.7 million for the quarter, an improvement from the $35.1 loss in the previous quarter. MedMen reported their four-wall Adjusted Retail EBITDA margin of 5%, after local taxes and distribution expenses. This is compared to an 8% loss from the previous quarter.
The company reported positive after-tax cash flow for the month of March.