This is your Daily Hit of cannabis news for May 31, 2018:
On The Site
Golden Leaf Holdings
Golden Leaf Holdings said first-quarter revenue soared, thanks to its 2017 acquisition of Chalice Farms and highlighted the progress it’s making in expanding its cannabis operations in California. Golden Leaf, which trades on the Canadian Stock Exchange under the “GLH” ticker and is traded over-the-counter in the U.S., said revenue jumped 42 percent year-over-year to $3.2 million for the period ending March 31, 2018. It also generated $353,000 in gross profit, up from $238,000 in the year-ago quarter. The company said gross margins included a one-time charge of $377,000 for a write-off of obsolete packaging inventory.
Cannabis Companies Are Becoming Better Prepared For Investor Money
Emily Paxhia of Poseidon Asset Management tells Green Market Report at the Cannabis Learn conference in Philadelphia that cannabis companies have become better prepared for taking investors money as the industry has matured. Paxhia says they have hired lawyers, set their documents up and prepared diligence rooms well. She says this makes it easier and quicker for investors to deploy capital.
The luxury cannabis company Hiku Brands Ltd. (HIKU) announced the filing of its financial results for the quarter ending on March 31, 2018. The company’s revenue for the quarter was relatively small, totaling C$246,143. The vast majority of that revenue was gobbled up by the retail cost of sales, which totaled C$202,431. The company managed to squeak out a gross profit of C$15,554. Overall, Hiku posted a net loss of $9.1 million for a loss per share of eight cents versus last year’s loss per share of one cent.
In Other News
KCSA Strategic Communications
The PR firm KCSA Strategic Communications announced today that it would host a Virtual Investor Conference focused on the cannabis industry. Taking place on June 7, 2018, the event will feature live stream presentations from a wider variety of senior executives working in the cannabis space; including representatives from Aurora Cannabis Inc., Golden Leaf Holdings, iAnthus Capital Holdings, Khiron Life Sciences Corp., Kush Bottles Inc., Medicine Man Technologies, Inc. and Terra Tech Corp. “The legal cannabis industry is one of the most dynamic and fast growing markets of the past decade,” said KCSA Managing Director, Phil Carlson. “Our presenting companies, which collectively touch every stage of the cannabis supply chain from seed to sale, and have operations across the U.S., Canada, Europe and South America, will discuss these trends, and shed light on their individual strategies to build successful, sustainable cannabis businesses.”
Cannabis Wheaton Income Corp. (CBW) announced the closing of a previously announced bought deal offering of 82,225,000 units of the company, at a price of C$1.40 per share, for a total of approximately $115 million. This included the full exercise of the over-allotment option granted to the underwriters. The company will use the proceeds from the offering domestic and international operations, capacity expansion, and general working capital.
mCig Inc. (MCIG) announced that they have closed escrow on the purchase of a 2.5 acre parcel in California City, CA. mCig will develop a 30,000 square foot cultivation facility, which will included the option to expand an additional 20,000 square feet as well as the option to construct a 2,000 to 4,000 square foot extracts manufacturing facility. “We are very grateful to the City of California City for their professionalism and thorough vetting process during licensing. We want to be a flagship facility and model licensee among the other licensed producers in the city. It is our sincere objective to create jobs, give back to the community, and create healthy products that compliment our current product lines and brands,” commented mCig CEO Paul Rosenberg.