William Sumner
It’s time for your Daily Hit of cannabis financial news for August 22, 2019.
On the Site
Gen!us
From Jimi Hendrix to Carl Sagan, many of the greatest artistic and scientific minds in history have used cannabis to help spur cultural progress, and yet surprisingly few entrepreneurs have aspired to create a cannabis strain specifically bred to inspire creative thought. A new cannabis brand called Gen!us hopes to change that…
TerrAscend
Toronto-based TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) reported that its second-quarter revenue rose 21% sequentially to $17.6 million from $14.6 million for the first quarter. A huge jump for the quarter ending June 30, 2019 over last year’s $0.01 million in 2018. The company raised its revenue guidance from $135 million which was projected in April to $141 million for 2019. On a pro forma basis, TerrAscend said it generated $42 million of revenue in the second quarter or over $168 million on an annualized basis.
In Other News
Green Growth Brands
Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) has closed its previously announced bought deal offering. Selling 22.5 million units of the company, at a price of C$2.45 per unit, the company raised C$50.22 million. The proceeds of the offering will go towards paying off the cash portion of its acquisition of Nevada Organic Remedies LLC, Henderson Organic Remedies LLC, and deferred cash compensation and certain other fees in connection with its acquisition of Spring Oaks Greenhouses, Inc.. The remained will go towards capital expenditures and general corporate purposes.
KushCo Holdings
KushCo Holdings, Inc. (OTCQX:KSHB) has closed on a $50 million credit facility with Monroe Capital LLC, which consists of $35 million revolving line of credit and an accordion of up to $15 million that will be available subject to covenant compliance and borrowing base availability. The facility will last for five years. KushCo continues to execute on its less dilutive financing strategy that will provide the capital necessary to support our continued operations and acquisitive growth,” commented KushCo CEO Nick Kovacevich,. “We are excited to partner with an entrepreneurial-focused private credit firm such as Monroe, and we have plans to grow our businesses together providing critical products and services to the cannabis and CBD industry. As the size of our customer’s business grows, it’s imperative to have an adequately sized credit facility that will increase as our business grows.”
