Debra Borchardt
It’s time for your Daily Hit of cannabis financial news for August 1, 2018
On The Site
Kannalife Sciences Inc.
Kannalife Sciences, Inc. a biopharmaceutical and phyto-medical company completed a share exchange transaction with TYG Solutions Corp. (TYYG) in order to become a publicly traded company. Kannalife still has a 72-day waiting period to apply to FINRA for a name change and new ticker symbol.
Kannalife says it will be the only publicly traded company in the cannabinoid therapeutics space which holds an exclusive license to a U.S. government patent from the National Institutes of Health (“NIH”).
CV Sciences Inc.
CV Sciences (CVSI), a company dedicated to developing CBD oil products and novel therapeutics utilizing synthetic CBD, today announced its financial results for the second quarter, which ended on June 30, 2018. The stock popped almost 5% on the news sending the price to approximately $3.31 for a 52-week high. Most recently the company announced that it has applied to list its stock on the NASDAQ Capital Market.
Overall results were positive. Sales for the quarter rose to $12.3 million, representing a 203% increase compared to the same period last year and a 53% increase over the previous quarter. Gross profit for the quarter was $9.06 million, compared to $2.8 million in the same period last year, and its GAAP net income was $3.1 million.
Aphria Inc.
Canadian-based cannabis company Aphria Inc. (APHQF) reported increasing sales for its fourth quarter and year ending May 31, 2018. Revenue for the quarter rose 17% sequentially to $12,026. The increase in the quarter was driven primarily by reporting Broken Coast results for a full quarter versus only one month of revenue in the prior quarter.
Adjusted gross profit for the fourth quarter was $ 9,468, with an adjusted gross margin of 78.7%, compared to $4,903 with an adjusted gross margin of 85.7% in the prior year’s fourth quarter, representing an increase of over 90%. The increase in the adjusted gross margin from the prior quarter was consistent with the increase in revenues combined with improved cost structures.
Net loss for the fourth quarter was $4,992 or $0.06 per share versus the net loss of $2,593 or $0.02 per share in the prior year. The decrease in net income for the quarter relates to $6.5 million in incremental share-based compensation, $3.3 million of costs associated with Aphria International, $8.6 million in net losses on the company’s investment portfolio, all offset by almost $13.0 million in incremental gross profit.
In Other News
Maricann Group Inc.
Maricann Group Inc. (CSE:MARI) upsized its previously disclosed private placement. The company proposes to issue up to $35,000,000 of special warrants at a price of $1.60 per Special Warrant. Canaccord Genuity Corp. and GMP Securities L.P., will act as joint bookrunners and co-lead agents on a marketed, “best efforts” private placement basis. The company has also granted the Agents an option to issue up to an additional $5,000,000 of Special Warrants, exercisable in whole or in part, at any time and from time to time on or prior to the closing date of the Offering.
Emblem Corp.
Emblem Corp. (EMMBF) and GreenSpace Brands (TSXV: JTR) are forming a strategic partnership to develop and commercialize cannabidiol infused health and beauty products for the expected adult-use cannabis market. The partnership will leverage GreenSpace’s expertise in consumer brand development and distribution to launch products infused with Emblem’s CBD extracts across a number of verticals including beauty, health, and wellness, supplements, food and beverage. Each approved product will indicate it is “Powered by Emblem” to signify Emblem’s involvement.
GSRX Industries Inc.
GSRX Industries Inc. (GSRX) announced that it has received pre-qualification and preliminary approval for a medicinal cannabis manufacturing license in Puerto Rico, in addition to the eight dispensary pre-qualifications it has received to date. Of its pre-qualified dispensary locations, Green Spirit RX dispensaries are currently operating in Dorado, Carolina, and San Juan (Hato Rey), with five locations in various stages of development and construction in Fajardo, Isla Verde, San Juan (Andalucia), Bayamón, and Old San Juan.
Freedom Leaf, Inc.
Freedom Leaf, Inc. (FRLF) announced that it has consummated a 100% acquisition of Tierra Science Global, LLC, a company specializing in health supplements supporting peak bio-energy levels in humans which are currently distributed via highly motivated direct sales teams and well-established affiliate programs in Europe, Asia and the United States. Tierra Science Global is led by founding managers, Mark Rolando Rosales and Marc Viterillo. Rosales has over 25 years of success in direct sales and network marketing, while Viterillo is a software development expert with extensive experience in online sales.
MPX Bioceutical Corporation (MPXEF) received final licensing approval by the Maryland Medical Cannabis Commission for the opening of two managed dispensaries, LMS Wellness, Benefit LLC, operating as Health for Life White Marsh, and GreenMart of Maryland, LLC operating as Health for Life Baltimore.
