It’s time for your Daily Hit of cannabis financial news for May 28, 2019.
On The Site
Charlotte’s Web Holdings, Inc. (CSE:CWEB) (OTCQX:CWBHF) reported financial results for the first quarter ended March 31, 2019 with revenue growing 66% to $21.7 million. The net income dropped to $2.3 million from last year’s $3.1 million. The company delivered earnings per share that fell to $0.03 and diluted EPS of $0.02 versus last year’s $0.04.
Operating expenses doubled from last year’s $6.4 million to this year’s $13.2 million. Just a couple of weeks ago the company named Deanie Elsner as the new Chief Executive Officer.
Cannabis Strategies Acquisition Corp. which will now be known as AYR Strategies Inc. began trading today on the NEO Exchange in Canada under the symbols NEO: AYR.A, AYR.RT and AYR.WT. AYR is the first recreational cannabis-focused company with an enterprise value over a billion dollars to list on NEO.
As part of its qualifying transaction to be listed on the NEO Exchange, CSA acquired five distinct cannabis businesses operating in Nevada and Massachusetts consisting of three cannabis cultivation and production facilities and eight dispensaries.
Acquired Sales Corp. (OTC Pink: AQSP) signed a letter of intent to acquire 100% Illinois-based Warrender Enterprise Inc. also known as Lifted Liquids for approximately $7.5 million in cash, plus 4,545,455 shares of Acquired Sales Corp.’s common stock. Those shares were lately trading at $2.45.
The deal is subject to several conditions including the completion of an acceptable due diligence investigation and audit of Lifted Liquids, completion of a capital raise of at least $9 million by Acquired Sales Corp., execution of definitive acquisition documents, receipt of a tax opinion on the transaction, obtaining all necessary approvals, and the completion of all necessary securities filings.
Bulgaria has become the first European Union state to officially allow a CBD distribution company to sell openly on the market. Kannaway, a subsidiary of Medical Marijuana Inc, said it has been issued with a Free Sale Certificate to produce hemp-derived CBD products from Bulgaria’s Ministry of Agriculture, Food and Forestry, and the Bulgarian Food Safety Agency.
The products “comply fully with relevant requirements of the Law on Foodstuffs of Republic of Bulgaria and of Regulation (EC) No 852/2004 of European Parliament and the Council on the hygiene of foodstuffs,” according to documentation, and the compliance also extends to exports.
In Other News
HEXO Corp (TSX: HEXO)(NYSE-A: HEXO) and Newstrike Brands Ltd. announced that they completed the previously announced arrangement in which HEXO acquired all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario). Following the Arrangement, HEXO has ownership or control over 558,971,064 common shares in the capital of Newstrike representing 100% of the total issued and outstanding share capital of Newstrike.
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) entered into an agreement with Scotiabank, in which the underwriters have agreed to purchase on a bought deal basis 10,815,000 common shares of the company at a price of $5.55 per Share for gross proceeds of $60 million. The company has granted the Underwriters an option to purchase up to an additional 1,622,250 Shares on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes.
MichiCann Medical Inc., operating as Red White & Bloom, has signed an LOI to acquire the world’s largest indoor premium hemp facility, located in Granville, Illinois. In operation since 1978, the greenhouse has been granted its Hemp Grower License and Hemp Processor Registration from the Illinois Department of Agriculture.
FLRish Inc. d/b/a/ Harborside, announced that it has closed an approximately C$19.65 million private placement of subscription receipts. AltaCorp Capital Inc. and Foundation Markets Inc. served as co-lead agents on behalf of a syndicate of agents which included Cormark Securities Inc., Beacon Securities Limited and Haywood Securities Inc. (collectively with AltaCorp and FMI, the “Agents”). The net proceeds from the financing, following release from escrow, are expected to be used to provide the Company with general working capital and to support the Company’s initiatives throughout California.