It’s time for your Daily Hit of cannabis financial news for September 18, 2018.
On The Site
KushCo Holdings, Inc. (KSHB) formerly known as Kush Bottles said that it is expecting to report a 171% increase in annual revenue to over $51 million for the fiscal year ended August 31st, 2018. The stock popped over 8% to lately trade at $5.23 on the news.
The news wasn’t all good. KushCo gave the market a heads up on a balance sheet hit. The company said that it expects to take a $1.8 million inventory adjustment charge resulting largely from opening multiple new distribution centers and its lack of a global warehouse management system. KushCo said that the situation would be addressed with software solutions being evaluated for implementation in the first half of the 2019 fiscal year.
The company experienced significant growth and blamed the problems on “growing pains.” KushCo opened several new distribution centers including Worcester, Massachusetts and Las Vegas, Nevada.
The news that soda giant Coca-Cola (KO) could be considering an investment or partnership with Aurora Cannabis (ACBFF) rocked the cannabis industry. First, because Coke is the king of beverages and secondly because cannabis is been so taboo in the consumer products industry.
“Consumer research shows Coca-Cola’s interest in marijuana is well-founded,” said Jeff Stein, Vice President at Consumer Research Around Cannabis (CRAC), a U.S. consumer company that specializes in researching the general consumer market and more recently, targeting cannabis consumers. “Soft drink users are more inclined to cannabis use than the general market according to our ongoing studies,” he said. CRAC said that the more a person drinks soda, the more likely they are to purchase cannabis.
In Other News
Tilray Inc. (TLRY) announced that the U.S. Drug Enforcement Administration (DEA) has granted the company approval to import a cannabinoid study drug into the United States from Canada for a clinical trial at the University of California San Diego Center for Medicinal Cannabis Research examining its safety, tolerability, and efficacy for Essential Tremor.
Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol (CBD) and tetrahydrocannabinol (THC).
Sunniva Inc (SNNVF) entered into an agreement with Beacon Securities Limited and Canaccord Genuity Corp. to purchase, on a bought deal basis, 1,900,000 units in the capital of the Company at a price of $5.27 per Unit for aggregate gross proceeds to the Company of $10,013,000. (All figures are in Canadian dollars unless otherwise stated). Each Unit shall consist of one common share in the capital of the Company and one-half (1/2) of one common share purchase warrant of the Company. Each whole Warrant shall entitle the holder thereof to acquire one Common Share at an exercise price per Common Share of $6.85 for a period of 24 months from the Closing Date on or about October 10, 2018.
Elixinol Global Limited
Elixinol Global Limited, known as EXL, (ELLXF) commenced trading on the “OTCQX Best Market” in the United States under the symbol “ELLXF,” as of September 18, 2018. The OTCQX listing will operate in parallel to the Company’s ASX listing where Elixinol Global trades under ticker code EXL.
EXL’s half-yearly report issued in August 2018, the company posted strong revenue growth and a maiden profit for the group, driven considerably by Colorado-based industrial hemp division, Elixinol. Elixinol’s increased sales were lead by cannabidiol (CBD) private label sales with e-commerce, mid-market and bulk sales also showing a strong performance. EXL was the only ASX-listed company in this sector to post a profit.
Emblem Corp. (EMMBF) along with Canntab Therapeutics Limited announced that they have achieved a milestone with regards to the development of a patent-pending oral extended release formulation for cannabinoids. Dissolution testing conducted by Emblem and Canntab’s research and development teams indicated that the Extended Release Tablets released cannabinoids consistently over a 12-hour period. Given these positive test results, Canntab will now begin manufacturing pivotal batches of the Product at Emblem’s Paris, Ontario facility, and tablets from these batches will proceed to clinical testing.
NUGL Inc. (NUGL) announced its joint venture marketing agreement with Nichols Publishing Company, the publishers of Garden & Greenhouse and Professional Marijuana Grower magazines that will expand the reach of NUGL’s user-friendly cannabis and indoor gardening search app as it becomes the industry’s go-to-app for unbiased client reviews, retail shop and dispensary listings, locations of favorite cannabis brands and in-depth company profiles.
Green Hygienics Holdings Inc.
Green Hygienics Holdings Inc. (GRYN) announced its strategic acquisition of the Canna Brands Portfolio. Cannagram, which will be rebranded Cannagram Services, is a flagship platform that establishes the company as a trusted partner while extending brand awareness and cross-portfolio resources. Myijuana is a destination portal comprised of news, reviews, e-commerce and dynamic content curation. The CoursePro Academy was originally created to enable a variety of subject matter experts to create, publish, manage and sell their courses on one system.