Its time for your Daily Hit of cannabis financial news for November 19th, 2019.
On the Site
HEXO Admits To Growing Cannabis In Unlicensed Room
HEXO released a statement explaining they were unknowingly growing cannabis in an unlicensed area of their facility. They did not know about this section of their facility being an unlicensed portion until their acquisition from Newstrike Brands. They quickly notified Health Canada and they were satisfied with the company’s actions to remedy the situation.
Canopy Growth Gets Big New York Tax Break
Canadian cannabis producer Canopy Growth is set to receive a large tax break for their new Kirkwood, New York facility. Canopy will receive a standard 15-year payment-in-lieu-of-taxes deal, qualifying for a 39% reduction in property taxes for the first five years of the agreement. When all is said and done, their tax break will equate to $1.7 million.
Merida Capital, Minority Cannabis Business Assoc. Announces Winners of Accelerator Program
Minority Cannabis Business Association and Merida Capital Partners announced the winning recipients of investmentthrough the Inclusive Industry (“i2”) Accelerator, which will deploy $500K initially to fast-track the development of five minority-owned businesses. MCBA and Merida launched i2 earlier this year to accelerate the development of minority-owned businesses in the cannabis and hemp industry by creating a meaningful executive mentorship program for underserved communities. The recipients are: Vega Holdings, High Road, Higher Learning Institutions, James Henry, and Canna Bistro.
Money Moves: Flowr, Meta Growth
The Flowr Corporation (TSXV: FLWR)(OTC: FLWPF) reported that it has closed its previously announced credit facility from a syndicate of lenders led by ATB Financial and including Farm Credit Canada. The $25 million facilities consist of a $24.5 million recapitalization term facility and a $500,000 revolving operating credit facility.
National Access Cannabis Corp (TSXV: META) d/b/a Meta Growth said that it has reached a new agreement to extend its $9,000,000 loan from Opaskwayak Cree Nation to December 31, 2022. The original loan was set to mature on December 14, 2019. As one of META’s largest shareholders, owning approximately 10.8 million shares, OCN has agreed to extend the maturity of the Loan until December 31, 2022, at an interest rate of 10% per annum, and an annual administration fee of $225,000.
Trulieve Delivers Another Solid Quarter of Earnings
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) released its financial results for the third quarter of 2019 ending September 30, 2019, with revenue of $70.7 million, an increase of 22% sequentially and an increase of 150% year-over-year. This beat analyst estimates by $5.09M. The company also delivered a net income of $60.3 million for the quarter, which was higher than the second quarter’s net income of $57.5 million.
Executive Spotlight: Diana Anglin
Diana Anglin is the chief operating officer of CannAmerica Brands Corp. She has been there for a year and a half. CanAmerica Brands Corp’s mission “to maximize the value of our brands by promoting, marketing and licensing the brands through various distribution channels, including to dispensaries, wholesalers and distributors in the United States and internationally.” CannaBrands owns a portfolio of brands within the cannabis space.
In Other News
Aurora Cannabis Suffering
Aurora reported fiscal 2020 Q1 results that showed a 24% drop in revenue and a 30% drop in volumes. The company also suspended construction at two of its largest greenhouses, Nordic 2 and Aurora Sun. Aurora Cannabis lowered its conversion price 2020 converts to avoid principal repayment and preserve cash. The general outlook for the quarter is seen as negative and investors may start to question its viability.
Cannabis Stocks Targeting the Infused Beverages Market
Canada was initially denied the right to enjoy cannabis-infused treats, but now things are turning around. The national market will now see a wave in cannabis-infused edibles, specifically in beverages. Some of the biggest names in the beverage industry have shown interest or a solid plan to jump into the market including Coca-Cola and Arizona Beverage Company. Most of the major brewers like AB InBev, Molson Coolers, and Constellation Brands have partnered with cannabis producers to make plans for cannabis-infused beers. The global cannabis beverage market is projected to be worth US$5.04 billion by 2026.
Big Day for Cronos Group After Altria Filing
Altria (NYSE:MO) added more than 4M shares to its Cronos (NASDAQ:CRON) stake, according to a filing.