It’s time for your Daily Hit of cannabis financial news for September 19, 2018.
On The Site
The cannabis market has received a bit of good press recently, as Coca-Cola said it is “eyeing” the cannabis-infused drink market, following Constellation Brands investment in Canopy Growth last month.
But it’s one sub-sector of the market, cannabis concentrates, which may be the true star of the show. Cannabis market intelligence and consumer research firm BDS Analytics has issued a new report showing that cannabis concentrates are expected to hit sales of $2.9 billion in 2018, up 49 percent year over year. That would make the concentrate market the second largest, behind only flower, according to the report.
In Other News
Tilray (TLRY) stock jumped to $300 in trading on Wednesday before the stock was halted and then resumed trading. It still finished the day with an increase of 38% to close at $214. In after hours, the stock was falling modestly. The stock has moved over 40% in two days following the news that the DEA approved Tilray to bring in medical marijuana for a medical study in San Diego. The approval to bring marijuana legally across the border is a pretty big deal, but doesn’t really warrant the crazy move higher. The limited amount of outstanding shares and the johnny-come-lately’s trying to get a piece of the action have caused a frenzy of trading. All the while short sellers are screaming its time to get out.
MPX Bioceutical Corporation
MPX Bioceutical (MPXEF) is acquiring all of the outstanding shares in the capital of Spartan Wellness Corporation from Ninth Square Capital Corporation and Veteran Grown Corporation both of which are at arm’s length to the Company. Spartan is a Canadian organization whose mission is to help veterans suffering from various ailments, mostly psychological, to reduce or eliminate dependencies on opioids by directing them towards medical cannabis. MPX will acquire all of the Spartan Shares for a total purchase price of up to $6,000,000 comprised of the following consideration and based upon the achievement of certain milestones
Sunniva Inc. (SNNVF) announced its second quarter financial results, detailing milestones and achievements both for the second quarter and the first half of 2018. Revenue was reported to be up by C$1.2 million in Q2 and by overall C$4 million in the first six months of the year. During this six month period, the company’s total revenue amounted to C$9.6 million, against a net loss of C$11.2 million, compared to an C$11.7 million loss in the same period last year.
“We made great progress in Q2 2018 towards our goal of becoming a vertically integrated cannabis company in the U.S. In California, construction progressed at our phase one 325,000 square foot state-of-the-art Sunniva California Campus with completion targeted by the end of this year and first harvest expected in Q1 2019,” Holler stated in a news release. “Our extraction facility began generating revenue this quarter. We continue to secure new contracts and are excited about the future revenue opportunities in this and other vertical channels that maximize the synergies with our Full-Scale Distributors device business.”
Aurora Cannabis COO Cam Battley told the Financial Post that it would soon be listing its stock on a major exchange in the U.S., but wouldn’t disclose which one it would be.