StaffIt’s time for your Daily Hit of cannabis financial news for March 4, 2019:
On The Site
CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) filed and received a receipt for a preliminary short form prospectus with the securities commissions in each of the provinces of Canada, except Québec, and with the U.S. Securities and Exchange Commission (SEC) to offer up to C$700,000,000 of debt securities, warrants, subscription receipts, units or common shares, or any combination. CannTrust just began trading on the NYSE last week as it uplisted from the OTC Markets.
Cannex Capital Holdings Inc. (CSE: CNNX)(OTCQX: CNXXF) moved beyond the interim agreement from November and as of March 1, 2019 officially agreed with 4Front Holdings, LLC to merge the two companies. The new company will initially trade under Cannex’s symbol “CNNX”, although the company said it expected to receive a new ticker in connection with the transaction. The deal is subject to CSE approval, approval of the 4Front members and approval of at least 66 2/3% of the votes cast by Cannex shareholders at a special meeting expected to take place on April 18, 2019. The company said it has commitments from 68% to vote in favor.
In Other News
High Tide
High Tide Inc. (HTDEF) filed its year-end 2018 financial results. Revenue for the fiscal year ended October 31, 2018, was $8,748,766 (2017 – $9,993,246) primarily due to the loss of a wholesale customer in the Famous Brandz business. Gross margin in fiscal 2018 was $3,109,689 (2017 – $4,707,750), which declined primarily due to adjustments for the valuation of inventory made in preparation for the Company’s warehouse relocation that occurred in early 2019. The company generated a loss of income for the 2018 fiscal year of $4,532,551 (2017 – income of $296,316) and had net operating cash flows of $8,779,133 (2017 – inflows of $1,041,438).
Wildflower
Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF) announced more than $1.4M in sales in its second quarter, compared to $1.0M in the first quarter. Sales from all sources are up from the prior quarter with the largest increase coming from sales to other retailers throughout the United States. This marks the 10th consecutive quarter of increased revenue. The company though reported a net gain of C$171,450, but after an exchange difference, the comprehensive loss for the quarter was C$514,992.
Beleave
Beleave (CSE: BE) (OTCQX: BLEVF) released earnings for the third quarter for the three and nine months ended December 31, 2018. The company reported $806,765 of revenue for the three-month period ending December 31, 2018, compared to $315,617 for the previous quarter due to recreational sales to Ontario, BC, and Manitoba, representing an increase of 256% quarter-over-quarter. Operating expenses for the three-month period ending December 31, 2018, was $4,248,128 compared to $6,764,269 for the three-month period ending September 30, 2018. The net loss for the three-month period ending December 31, 2018, was $2,260,015 or $0.01 per share compared to net losses of $4,804,994 in the last quarter, or a reduction of 53%. As of December 31, 2018, the Company had cash available of $1,764,939.
Veritas
Veritas Pharma Inc. (CSE: VRT; OTC: VRTHF; and Frankfurt: 2VP) announced that it has filed a claim and is commencing legal proceedings against Liht Cannabis Corp. (“Liht”) (formerly Marapharm Ventures Inc.) to recover a loan made by Veritas to Liht in the amount of $1,000,000.00 plus accrued interest. The loan is in default and Veritas has made a demand for repayment but Liht has refused to make repayment.
Harvest One
Harvest One Cannabis Inc. (TSXV: HVT) (OTCQX: HRVOF) and Delivra Corp. (TSXV: DVA) entered into a definitive arrangement agreement pursuant to which Harvest One will acquire all of the issued and outstanding common shares of Delivra. Under the terms of the Arrangement Agreement, shareholders of Delivra will receive 0.595 common shares of Harvest One (the “Harvest One Shares”) for each Delivra Share.
Aphria
Aphria Inc. (TSX: APHA and NYSE: APHA) today announced that Health Canada has granted the Company its license amendment, permitting Aphria to commence production in an additional 800,000 square feet of facilities at its Aphria One location, as part of the Company’s completed Part IV and Part V expansions.
Acquired Sales
Acquired Sales Corp. (OTC Pink: AQSP) today announced that it has sold $2,340,000 of convertible preferred stock and has signed a Stock Purchase Agreement to purchase up to 19.99% of the stock of rapidly growing CBD beverage maker Ablis Inc. (www.AblisBev.com), and 19.99% of craft distillers Bendistillery Inc. and Bend Spirits, Inc. (www.Bendistillery.com), Bend, Oregon.
Leafly
Leafly, the world’s leading technology platform that helps customers around the world find and discover the cannabis product that is right for them, today announced the hiring of Tim Leslie, a 20-year veteran of Amazon, to the role of Chief Executive Officer. As Leafly CEO, Tim will guide the company’s vision and strategy as it continues to expand around the globe.
LGC Capital
LGC Capital Ltd will begin trading today under the symbol LGGCF. Investors can find current financial disclosure and Real-Time level 2 quotes for the Company on www.otcmarkets.com. LGC will also continue to trade on its primary exchange, the TSX Venture Exchange.
Village Farms
Village Farms International, Inc. (TSX: VFF) (NASDAQ: VFF) is providing the following update regarding the recent halt in trading of its common shares on the Nasdaq Stock Market. Nasdaq advised Village Farms that its common shares are not yet Direct Registration System (DRS) eligible, which is a requirement for listed securities on Nasdaq as the DRS system facilitates the timely settlement of trades. Village Farms provided Nasdaq with information generated from a third-party which incorrectly confirmed that Village Farms’ common shares would become DRS eligible at the commencement of their trading on Nasdaq.Village Farms
