It’s time for your Daily Hit of cannabis financial news for October 24th, 2019.
On the Site
New York Public Relations KCSA Celebrates 50 Years
KCSA Strategic Communications is celebrating its 50th year this fall and the company is saying it’s the strongest one yet. KCSA has a roster of companies in the tech space, financial services, and life sciences, but the company has really come on strong in the cannabis space. “Few firms in our industry can say that their 50th year in business has been their strongest. The entire KCSA team is responsible for our exceptional performance and this significant accomplishment,” said Todd Fromer, President & Managing Partner of KCSA.
Akerna Invests In Budtender Education Platform ZolTrain
Akerna Corp. (NASDAQ: KERN), a leading cannabis compliance technology company, has made a strategic investment for an undisclosed amount in ZolTrain, a training platform built for the mobile world. “ZolTrain is important to the maturation of the industry, enabling greater consumer, product, and public safety through education,” says Akerna’s chief executive officer, Jessica Billingsley.
Executive Spotlight: Tracey Mason, Co-founder & CEO of House of Saka, Inc.
Tracey Mason is a 25–year veteran of the adult beverage industry with experience in nearly every facet. She has held executive-level marketing positions at some of the world’s largest beverage companies, including Diageo, where she worked her way up from sales management to Director of Commercial Innovation, and Fosters Wine Estates, where she held the position of Vice President of Marketing/Innovation until 2006, when she left to pursue her dream of running a small business. Her current position is CEO and co-founder of House of Saka, Inc., a cannabis-infused product company.
Zenabis Stock Plunges On Rights Offering, Accusations Fly
Zenabis Global Inc. (TSX:ZENA) (ZBISF) stock plunged 40% on news of the company’s rights offering. Zenabis announced on Thursday that it is looking to raise $20.8 million through a rights offering to holders of its common shares of record at the close of business on October 31, 2019. The stock was lately trading at 23 cents, down from its year high of $3.03.
Tax Court’s Decision in Harborside A Big Challenge For CA Cannabis Dispensaries
The U.S. Tax Court has ruled that PMACC (Patients Mutual Assistance Collective Corporation) owes an aggregate tax deficiency of approximately $11.0 million for the fiscal years 2007 through 2012. This amount is consistent with the Company’s one-time provision for its estimated tax obligation for PMACC expensed in its financial results for the three-month period ended June 30, 2019.
In Other News
Curaleaf to Report Third Quarter 2019 Financial and Operational Results November 19, 2019
WAKEFIELD, Mass., Oct. 24, 2019 /PRNewswire/ — Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading vertically integrated cannabis operator in the United States, today announced that it will report its financial and operating results for the second quarter ended September 30, 2019, after market close on November 19, 2019.
Management will host a conference call and audio webcast that evening at 5:00 p.m. EST consisting of prepared remarks followed by a question and answer session related to the Company’s operational and financial highlights.
Why Align Technology, Tilray, and PayPal Holdings Jumped Today
Major benchmarks continued to churn on Thursday, with few catalysts affecting the market as a whole. Most investors remained focused squarely on earnings reports, which have come fast and furious throughout the week. Some companies were able to announce great news on the earnings front, lifting shares. Yet there were also different reasons why some stocks gained ground. Align Technology (NASDAQ: ALGN), Tilray (NASDAQ: TLRY), and PayPal Holdings (NASDAQ: PYPL) were among the top performers. Here’s why they did so well.
Shares of Align Technology jumped 15% after the orthodontic appliance manufacturer reported its third-quarter financial results. Revenue rose 20% to hit a new record high, lifted by a 21% gain in unit volume. Although net income climbed just 2% from year-ago levels, investors were prepared for a big increase in the company’s promotional spending, and they’re optimistic that the investments will produce faster growth in the future. Align’s outlook was also favorable, as it expects sales growth to remain around 20% or more during the fourth quarter of 2019 as well. After a period of uncertainty, it looks like Align has straightened up its act once again.
CannTrust Provides Progress Update Regarding Remediation Plan
CannTrust submitted its detailed remediation plan to Health Canada on October 21, 2019. The remediation plan specifies the actions the Company has both taken and intends to take in order to address the measures identified by Health Canada as necessary for the reinstatement of the Company’s licenses. It includes details about an expanded comprehensive internal training program, a strengthened governance and operations framework, infrastructure enhancements, and prescribed accountabilities and timelines for a variety of specified tasks