It’s time for your Daily Hit of cannabis financial news for September 29, 2020.
On the Site
SLANG Worldwide Inc. (OTCQB: SLGWF) is buying Colorado-licensed cannabis cultivator Pleasant Valley Ranch, LLC as the company makes another move to own its supply chain. Pleasant Valley has been a key supplier of raw materials for SLANG-branded concentrate and edibles products in Colorado. By buying the supplier, Slang can assure itself of having the raw materials it needs at a lower cost, which will improve the gross margins.
The company didn’t disclose the price paid for Pleasant Valley but did say that it was for a non-material amount of cash and common shares. The deal is expected to close in the fourth quarter of 2020.
Sproutly (OTCQB: SRUTF) reported its first-quarter results and also noted in its filings that it was a going concern due to an accumulated deficit of C$78 million and a working capital deficit of C$7.1 million. The company reported (in Canadian dollars) a net loss of $1.9 million for the quarter ending May 31 and revenue of $25,875 versus zero for the same time period in 2019. Expenses were $869,079 for the quarter versus $2.8 million for the same time period last year. The company said it cut staffing by 75%.
Canadian mushroom company Optimi Health Corp. closed an oversubscribed non-brokered private placement of 17,963,005 special warrants at a price of $0.25 per Special Warrant for aggregate gross proceeds of $4,490,751.25 million.
Optimi plans to cultivate and extract mushrooms inside two purpose-built GMP certified facilities, strategically located in Princeton, British Columbia. The company’s goal is to leverage existing supply chain efficiencies to deliver a line of nutraceutical products directly to consumers.
In Other News
Acquired Sales Corp. (OTCQB: AQSP) is approved for trading on the OTCQB Venture Market as of today. Gerard M. Jacobs, CEO, commented, “We expect that trading on the OTCQB Venture Market will increase AQSP’s profile within the investment community and assist in increasing the liquidity of our common stock.” AQSP is the parent company of Lifted Made, Zion, Illinois, a leader in hemp and hemp-derived cannabinoid products under its Urb Finest Flowers brand, which is led by its CEO Nicholas S. Warrender (www.LiftedMade.com). AQSP also owns 4.99% of CBD-infused beverage and products maker Ablis Holding Company, and of craft distillers Bendistillery Inc. d/b/a Crater Lake Spirits and Bend Spirits, Inc., Bend, Oregon