It’s time for your Daily Hit of cannabis news for May 29, 2018.
On The Site
MedMen Enterprises Inc. stock began trading today on the Canadian Securities Exchange under the ticker symbol “MMEN”. The stock opened at C$5.63 and closed down at C$4.95.
The listing is the result of a reverse takeover of a Candian public company by MedMen and as a result, the U.S.-based cannabis retailer will raise roughly C$143 million or $110 million by today’s exchange rates. This gives MedMen an enterprise valuation of C$2.14 billion or $1.65 billion.
BMO Capital Markets Initiates Coverage
BMO Capital Markets, a North American financial services provider, has initiated coverage on both Aphria Inc. (APHQF) and Canopy Growth (CGC) with a rating of Outperform.
According to the report released on May 28, 2018, both companies stand to benefit from a first mover advantage in initial recreational markets as many cannabis companies in Canada do not have the inventory or production capacity to meaningfully participate in the market while both Aphria and Canopy do.
Emblem Corp. (EMMBF) reported that its revenues for the three months ended March 31, 2018, increased 41% to $1,277,000 in Q1 2018 from $903,000 in Q1 2017. Gross profits increased 304% to $182,000 compared to a gross loss of $89,000 for the same time period in the previous year. The profits were helped by a higher unrealized gain on changes in fair value of biological assets.
During the first quarter, revenues of dried cannabis flower purchased by registered medical patients and Licensed Producers amounted to $457,000 and $394,000, respectively. The average selling price of dried flower for medical patients was $8.59 per gram versus last year’s $8.41 per gram. Total dried flower sold to licensed producers sold at an average selling price of $5.55 per gram versus last year’s $4.02 per gram.
In Other News
Khiron life Sciences Corp.
Khiron life Sciences Corp. (TSXV: KHRN), a Canadian integrated medical cannabis company with its core operations in Colombia, announced that it is strategically positioned to enter the medical cannabis market in Mexico by acting as a key sponsor of the CannaMexico World Summit. The company will incorporate a Mexican subsidiary to submit license applications, subject to TSXV approval.
The Green Organic Dutchman
The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) announced that it has entered into an exclusive agreement with Stillwater Brands to license RIPPLE SC (Soluble Cannabinoids) ingredient technology, and other proprietary beverage and food technologies and formulations related to cannabinoid-infused consumer packaged goods including micro-dose and full-dose tea sticks within Canada and certain international jurisdictions outside of the USA.
Curaleaf New York
Curaleaf New York announced plans for a new medical cannabis dispensary in Forest Hills, New York. The dispensary, which is expected to open in early summer, will serve patients in Queens and surrounding boroughs suffering from chronic pain, Post-Traumatic Stress Disorder (PTSD), cancer and other conditions permitted under the New York State Department of Health’s medical marijuana program. The Curaleaf New York facility is only the second dispensary to be opened in Queens.