It’s time for your Daily Hit of cannabis financial news for November 8, 2018.
On the Site
Aphria Inc. (NYSE: APHA) is acquiring German-based CC Pharma GmbH, a leading distributor of pharmaceutical products to more than 13,000 pharmacies in Germany. Aphria considers the country a key part of its international expansion. According to the company statement, Aphria will pay €24.5 million in cash to CC Pharma at closing, with an earn-out multiple on future EBITDA of up to another €23.5 million following closing, if certain performance milestones are met. The acquisition is expected to close in January 2019.
Cannabis Biotechs Post Financial Results, Downplaying Losses
The biopharmaceutical companies Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE) and Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) today posted their financial results for the third quarter, which ended on September 30, 2018. In the results, both companies glossed over their less than stellar financial situation, opting instead to highlight their clinical achievements over the last quarter.
Innovative Industrial Properties
Cannabis REIT Innovative Industrial Properties (NYSE: IIPR) reported that its revenue increased by 150% to $3.9 million for the third quarter ending September 2018 versus $1.6 million for the same time period last year. The company also delivered a net income of $1.5 million or $0.21 per diluted share. The adjusted funds from operations, a measure typical of REITs was $2.6 million or $0.38 per share.
In Other News
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. (CSE: TRUL) announced that is has entered into an agreement to acquire both Massachusetts-based Life Essence Inc. and California-based Leef Industries. The two acquisitions mark the company’s first business ventures outside of the state of Florida. Life Essence is a vertically integrated cannabis company that is currently applying for licenses to build and operate three medical cannabis dispensaries, three adult-use dispensaries, and to construct a 126,000 square foot cultivation and processing facility. Leef Industries is an adult-use and medical cannabis dispensary that holds one of only 12 fully-permitted annual licenses in the state of California.
CV Sciences Inc.
CBD producer CV Sciences Inc. (OTCQB: CVSI) has announced its financial results for the third quarter ending on September 30, 2018. The company recorded $13.6 million in sales, representing an increase of 143%. Gross profits grew by 149% to $9.9. The company’s adjusted EBITDA was $4.1 million. “We are encouraged by our performance as we delivered another strong quarter, including our third consecutive quarter of profitability,” stated CV Sciences CEO, Joseph Dowling. “This was led by initiatives that include accelerating our brand recognition and brand loyalty and growing sales distribution channels that have generated triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison.”
Planet 13 Holdings Inc.
Planet 13 Holdings Inc. (CSE: PLTH), a vertically integrated cannabis company in the state of Nevada, has entered into an agreement with Beacon Securities Limited, representing a group of underwriters, for a $20 million bought deal. Under the agreement, the underwriters have agreed to purchase approximately 6.6 million units of the company at a price of $3.00 per unit. The company has also granted an over-allotment option which would allow the underwriters to purchase up to an additional one million units of the company. The offering is expected to close on December 4, 2018.