William Sumner
It’s time for your Daily Hit of cannabis financial news for August 30, 2018.
On the Site
Cannabis Company’s Report Earnings
While the rest of the market seems to be quieting down ahead of the Labor Day weekend, several cannabis companies are wrapping up earnings season. Here’s a roundup of earnings from MPX Bioceuticals, Kalytera, and Vivo.
In Other News
Hiku Brands
Hiku Brands Company Ltd. (HIKU) announced today the results of a special shareholders meeting. The shareholders voted to pass a resolution to approve a plan of arrangement in which Canopy Growth Corporation (CGC) would acquire all of the company’s common shares; effectively merging with Hiku Brands. The arrangement is still subject to the receipt of a final order of the Supreme Court of British Columbia, which is expected to be sought on September 4, 2018. Trading of common shares of Hiku will be halted on the Canadian Securities Exchange as of noon on August 31, 2018.
Charlotte’s Web Holdings
Charlotte’s Web Holdings announced today the successful closing of its previously announced initial public offering as well as a secondary offering of common shares. Priced at C$7.00 per common share, Charlotte’s Web sold 13,312,150 common shares, and selling shareholders sold a total of 3,132,850 common shares in a secondary offering and the over-allotment option, for a sum total of C$115.1 million. The company did not receive any of the proceeds from the secondary offering or the over-allotment option. Common shares of Charlotte’s Web Holdings commenced trading today on the Canadian Securities Exchange under the symbol “CWEB”.
Emerald Health Therapeutics
Emerald Health Therapeutics announced today the financial results for the three and six months ended June 30, 2018. Quarter-over-quarter revenue declined from $373,218 to $284,262. However, year-over-year revenue increased by 15%, rising from $245,708 during the same period in the previous year. Net loss for the company increased from $5.04 million in the previous quarter to $5.6 million. Despite the increased loss, Emerald Health CEO Chris Wagner was nonetheless pleased with the results. “I am proud of the success we’ve had scaling our business so far this year,” said Wagner. “Since the start of the second quarter, we acquired and began cultivating cannabis at our Quebec-based licensed producer Agro-Biotech, substantially increased our licensed cannabis production area at our Pure Sunfarms joint venture to roughly 420,000 square feet, and obtained from Health Canada Pure Sunfarms’ sales license.”
