William Sumner, Author at Green Market Report

Recent Stories by William Sumner

It’s time for your Daily Hit of cannabis financial news for September 25, 2019.

On the Site

WeedMD

WeedMD Inc. (TSX-V: WMD) (OTCQX: WDDMF) has closed its previously-announced bought-deal short-form prospectus offering of convertible debenture units at a price of $1,000 per Convertible Debenture Unit for aggregate gross proceeds of $13,115,000, which includes proceeds from the over-allotment option. The Offering for WeedMD was led by Mackie Research Capital Corporation and included Haywood Securities Inc.

Developing An Authentic Celebrity Cannabis Brand

Many celebrities are joining the cannabis industry. Some are involved in the critical details, while others just license their name. Hear from Grammy award-winning Melissa Etheridge of Etheridge farms as she joins a panel to discuss this topic. Kevin Bell, the COO of Tyson Ranch (Mike Tyson) and Jason Rhude, Founder of Ronin Content Services also weighs in, along with cannabis consultant company MMLG’s CEO Aaron Lachant.

In Other News

MediPharm Labs

MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) announced that it has entered into a multi-year supply agreement with TerrAscend Canada Inc. Under the agreement, MediPharm will supply TerrAscend with $27 million of cannabis distillate over a course of two years. The agreement is subject to certain renewal and purchase options, potentially up to $192 million over 36-months to September 2022. “As Canada prepares for the next stage of legalization, we are thrilled to be collaborating with a leading global company like TerrAscend focused on creating new and innovative product formulations and brands that enhance the consumer experience,” said Patrick McCutcheon, MediPharm Labs CEO.

GW Pharmaceuticals

GW Pharmaceuticals plc (Nasdaq: GWPH) announced that its flagship drug, Epidyolex, has been approved by the European Commission for use as adjunctive therapy of seizures associated with Lennox‑Gastaut syndrome (LGS) or Dravet syndrome, in conjunction with clobazam, for patients 2 years of age and older. The regulatory path is now clear for GW to start selling Epidyolex in European markets. “The approval of EPIDYOLEX® marks a significant milestone, offering patients and their families the first in a new class of epilepsy medicines and the first and only EMA-approved CBD medicine to treat two severe and life-threatening forms of childhood-onset epilepsy,” said GW CEO Justin Gover.

It’s time for your Daily Hit of cannabis financial news for September 19, 2019.

On the Site

Eaze

California delivery software company Eaze has finally gotten fed up with DionyMed’s (CSE: DYME) (OTC:DYMEF) accusations and filed a countersuit on Tuesday against the company. For DionyMed, it comes at a pretty bad time. The company just accepted the resignation of its COO Pete Hilliard and is restructuring its debt. Plus, the stock was halted in trading. So, where to begin? Let’s start with the Eaze lawsuit.

iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) has entered an agreement to acquire WSCC, Inc., better known as Sierra Well, for $27.6 million. iAnthus will pay for the acquisition price with $5.1 million in cash and $22.5 million in company shares, priced at the 10-day volume-weighted average price prior to closing of the transaction. Sierra Well is a Nevada-based, vertically integrated cannabis company with two retail dispensary locations and two cultivation/production facilities in Reno and Carson City totaling a combined 20,000 square feet

In Other News

Future State Brands

The cannabis brand holding company, Future State Brands, announced its launch today with more than $25 million in funding. The company is led by PRØHBTD CEO and Founder Drake Sutton-Shearer; and its portfolio includes a hemp cosmetics line, a music-inspired cannabis brand called Heavy Grass, and a line of infused products. “I’m excited to move into this next phase of our journey with a crystal clear vision of our desired future state. Although brands is the vehicle to get us there, it cannot be achieved without an incredible team, accessible capital and most of all, an understanding of the customer we are building for,” said Sutton-Shearer.

Vireo Health

Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) announced today that its shares have received Depository Trust Company (DTC) full-service eligibility in the United States. DTC is a subsidiary of the Depository Trust & Clearing Corp., which manages the electronic clearing and settlement of publicly traded companies. DTC Eligibility will allow the company’s shares to be distributed, settled and serviced through DTC’s automated processes.

Sierra Well is a Nevada-based, vertically integrated cannabis company with two retail dispensary locations and two cultivation/production facilities in Reno and Carson City totaling a combined 20,000 square feet. The company has an unaudited annual revenue of approximately $16 million with an EBITDA (non-IFRS) margin above 20% and positive net income.

“Strengthening our foothold in one of the most successful adult-use cannabis markets is consistent with our strategy to deliver iAnthus’ nationally recognized products in premier markets,” said Hadley Ford, CEO of iAnthus. “This strategic transaction will allow us to scale our Nevada operations, add talent, and solidify both our retail and brand presence in both the Northern and Southern portions of the state.”

The acquisition will help increase iAnthus’ total Nevada footprint to six retail dispensary licenses and 50,000 square feet of cultivation and production space and increase the company’s retail presence to 29 stores nationwide. Once the acquisition closes, Sierra Well dispensaries will be renamed under iAnthus’ Be. brand, which will launch sometime next month.

“We’re excited to join the iAnthus team and look forward to expanding our business with the expertise of a tried and tested multi-state operator,” said Steven Nightingale, Chairman of the Board of Sierra Well. “We at Sierra Well see this partnership as a perfect fit, one that will allow our dynamic workforce to deepen their ability to provide top-notch service and products to the communities of Reno and Carson City.”

Pending approval from the Nevada Department of Taxation, the acquisition is expected to close in the first half of 2020.

It’s time for your Daily Hit of cannabis financial news for September 18, 2019.

On the Site

Overcoming Canada’s Cannabis Shortage

Shortages of Canadian marijuana appeared immediately after recreational sales of cannabis starting from October 2018. Hence, there is a typical Canadian refrain almost lately. Because of little inventory remaining, many stores are closed three days a week, and provincial distributors are blaming federal regulations and producers. Some of the giant retailer’s licenses have also frozen and some are limited to 25 stores on the state level.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (FIRE.TO) (SPRWF) reported net revenue of $19 million for the fourth quarter ending June 30, 2019, a 90% increase sequentially. The net loss for the quarter was $421,000. Supreme Cannabis’ core recreational flower brand, 7ACRES, accounted for the company’s marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019.

In Other News

CannTrust

In a blow to the beleaguered company, CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) announced that is has received a Notice of Licence Suspension under section 64(1) of the Cannabis Act, citing noncompliance. The notice is a partial suspension for the company’s license for cultivation and a full suspension of its license for standard processing, medical sales, cannabis drugs and research. CannTrust will still be able to cultivate and harvest existing lots or batches previously propagated, as well as the ancillary such as drying, trimming, and milling. Health Canada will reinstate CannTrust’s license if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.

Flower One

Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF) has entered a sale-leaseback agreement with Treehouse Real Estate Investment Trust, Inc. for the company’s 25,000 square-foot indoor cultivation and production facility in North Las Vegas, including the adjacent vacant lot. The company is planning to build a commercial kitchen and manufacturing space on the property. Construction is expected to begin by the second quarter of 2020. Treehouse will purchase the property for $20 million. “Flower One is thrilled to form a long-term partnership with Treehouse, enabling us to access significant capital to continue our expansion in Nevada and potentially beyond,” said Kellen O’Keefe, Chief Strategy Officer at Flower One. “Flower One is actively pursuing multi-state opportunities and plans to utilize its partnership with Treehouse in order to do so.”

It’s time for your Daily Hit of cannabis financial news for September 12, 2019.

On the Site

Medical CCA’s (Cannabis Cooperative Association) 201

This is the last of the four articles we decided to publish to illustrate the savings for consumers, and additional profits for cultivators, that can be produced through the use of a properly organized Cannabis Cooperative Association (“CCA”). This article describes the savings for consumers, and the additional profits for cultivators, that can be produced through the movement of extracted oil as medical cannabis through a fully integrated CCA.

Dead, Alive, Comatose. Are medical cannabis collectives dead or alive?

Are medical cannabis collectives dead or alive? What about medical cannabis cooperatives? What about adult-use cannabis collectives and cooperatives? Depending on who you ask the answers will be, Yes, No or Maybe. All three of these answers may be correct answers to all of these questions. The questions are not as simple as they appear to be.

In Other News

Innovative Industrial Properties

Innovative Industrial Properties, Inc. (IIP) announced that it has closed on the final parcel of a four-property portfolio in southern California, totaling approximately 79,000 square feet of industrial space, for $17.3 million. The company also entered into a long-term, triple-net lease at each property with a subsidiary of Medical Investor Holdings (Vertical) for continued operation as licensed cannabis cultivation, extraction, manufacturing and distribution facilities. “We are thrilled to add Vertical and its strong management team to our tenant roster,” said Paul Smithers, President and CEO of IIP. “With its breadth of cannabis brands and highly experienced team, Vertical is well-positioned to capitalize on the tremendous growth of the California regulated cannabis industry in the many years to come…”

NewLake Capital Partners

NewLake Capital Partners, Inc., a specialized industrial real-estate company focused on servicing the cannabis industry, announced that it has closed a private placement of $85.5 million in preferred stock. “We are excited to serve the real estate needs of this high-growth industry,” commented Anthony Coniglio, CEO of NewLake. “We have assembled a world class team of professionals that are highly experienced in real estate, cannabis and capital markets.”

It’s time for your Daily Hit of cannabis financial news for September 11, 2019.

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) has entered into a binding term sheet to acquire the cannabis operator Strawberry Fields for $31 million. The acquisition is comprised of $14 million in cash and $17 million in common stock, priced at $2.98 per share. “The integration of Strawberry Fields into our family of Colorado pioneers will be impactful,” said Andy Williams, Co-Founder and CEO of Medicine Man Technologies. “This transaction will provide our Company with low-cost cultivation assets located in Pueblo, a growing manufacturing facility, and branded products. In addition we will be acquiring four retail locations in Western and Southern Colorado, including a high yielding store that is a leader in that part of the state. Adding Strawberry Fields to our portfolio will strengthen our strategy to become the leading integrated cannabis operator of Colorado.”

Tilray

After the market close yesterday, Tilray Inc. (NASDAQ: TLRY) announced in an 8k-filing that it has selected Cowen and Company to sell up to $400 million in stock once an S-3 registration statement is effective, with any sales to be an “at-the-market offering.”

Vapen MJ

Vapen MJ Ventures (OTCQX:VAPNF) announced the appointment of Arizona Attorney Scott A. Hill to the company’s advisory board. Hill is a patent attorney and former stock broker licensed to practice law in the state of Arizona and in the United States District Court for the District of Arizona. “Scott was instrumental in successfully working with the USPTO for Vapen MJ’s utility patent for our Cannabinoid Inhaler without a heating element. Scott crafted the claim in the filing, which makes the recently granted patent as broad as possible,” commented Thai Nguyen, Founder and CEO of Vapen MJ.

Aurora Cannabis

Aurora Cannabis (NYSE: ACB) announced the release of its financial results for the fourth quarter, ending on June 30, 2019. Net revenue for the quarter rose by 61% to $94.6 million. The cost-per gram sold declined t0 $1.14. The gross margin was 58% and adjusted EBITDA was a loss of $11.7 million. “In 2019 Aurora took its place as the global leader in cannabis production, research, innovation, and international market development. We are executing on all our strategic priorities,” said Terry Booth, Aurora CEO. “Our best in class cultivation methods allow us to grow consistent, high-quality cannabis at scale.”

It’s time for your Daily Hit of cannabis financial news for September 10, 2019.

On the Site

Canndescent

Private premium cannabis company Canndescent announced that it closes on a $27.5 million in Series C Preferred Funding. Leading the investment round, Green Acre Capital, a cannabis-specific venture fund from Canada, was joined by Carnegie Arch Capital, Senterra, LLC., Altitude Investment Management, JW Asset Management and a multinational beer company from Asia. The money will be used for the company’s expansion into vapes and ingestibles as well as supporting efforts in Massachusetts, Nevada, Canada and beyond.

Dissect the Economics of Cannabis Branding at the Green Market Summit

On September 11th, 2019, investors, entrepreneurs, and branding experts will gather to dissect the economics of cannabis business brands at The Green Market Summit in Los Angeles, California. Following a sold-out event in Chicago, The Green Market Summit will bring its business acumen to the world of cannabis branding and provide exclusive industry information on topics such as the celebrity effect on cannabis, how to manage brand perception for public companies, and the world of luxury cannabis.

In Other News

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced that the waiting period stipulated by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended has expired in relation to the company’s proposes acquisition of PharmaCann LLC. The waiting period was one of several conditions needs to close the acquisition, and the deal is expected to close by the end of 2019. “Today marks a monumental day for the cannabis industry,” said Adam Bierman, MedMen co-founder and CEO. “We hope this will pave the way for other companies in what has become a highly acquisitive and dynamic industry.”

Sunniva

Sunniva Inc. (CSE: SNN) announced that it has entered into an agreement to sell its subsidiary Natural Health Services, Ltd. (NHS) to The Clinic Network Canada, Inc. (TCNC) for C$9 million. Half of the purchase price will be paid in cash, while the other half will be paid through the issuance of 4.5 million shares of TCNC. The closing of the sale could not have come at a better time for Sunniva, as yesterday, NHS was named in a class action lawsuit in connection with a previously reported privacy breach of the Electronic Medical Record system used by NHS.

On September 11^th, 2019, investors, entrepreneurs, and branding experts will gather to dissect the economics of cannabis business brands at The Green Market Summit in Los Angeles, California. Following a sold-out event in Chicago, The Green Market Summit will bring its business acumen to the world of cannabis branding and provide exclusive industry information on topics such as the celebrity effect on cannabis, how to manage brand perception for public companies, and the world of luxury cannabis.

“Our conferences are unique within the glut of cannabis events in that we zero in on one topic and then dig in with both hands,” said Green Market Media Co-founder and CEO, Debra Borchardt. “This makes it more valuable for our attendees because they walk away with real value-added information. You can’t get this type of nitty-gritty detail from a general topic cannabis conference.”

The event will include an in-depth examination about how to develop an authentic cannabis brand, led by legendary musician Melissa Etheridge and involve Kevin Bell, the COO of Tyson Ranch founded by boxer Mike Tyson, and Courtney Zalewski from Lowell Herb, which has developed a strong outreach to influencers in cannabis.

The summit will also feature a panel discussion about celebrity athletes, cannabis brands, and their relationship with CBD. As the CBD market continues to grow at an explosive rate, more athletes than ever are turning to CBD to help relieve pain, turning many into passionate advocates for cannabis.

The panel will include former NFL offensive lineman and founder of the Gridiron Cannabis Coalition, Kyle Turney; former professional ice hockey left winger and Athletes for CARE co-founder, Riley Cote; NCAA national champion and Mendi founder, Rachel Rapinoe; former NFL player and Athletes for CARE Ambassador, Nate Jackson; and Athletes for CARE Executive Director Anna Valent.

The keynote event will star accomplished CNBC reporter Jane Wells, who will go one-on-one with a market leader in the edible cannabis market, Jake Heimark.

With more than three decades experience, Wells is a journalism veteran who has received numerous accolades throughout her career, including a 1992 Peabody Award and a DuPont Award for live coverage of the Rodney King Trial and a Los Angeles Emmy Award for her investigative reporting.

Heimark is the co-founder and CEO of PLUS Products, a publicly-traded California-based branded products cannabis company. During his tenure as CEO, Heimark has helped steer the company to become the #1 and #2 best-selling branded cannabis products across all BDS Analytics tracked markets, building a core following in the most influential market in the world, with over 1 million units of its signature PLUS gummies sold last year alone.

“PLUS is excited to partner with the Green Market Report for their Summit in LA to continue to educate individuals on the exciting opportunities within our emerging industry,” said Heimark. “We look forward to sharing our story and the progress we have made towards building an international cannabis brand.”

Attendance to the Green Market Summit is limited and is expected to sell out quickly. To get your ticket, please visit https://www.greenmarketsummit.com/tickets/.

It’s time for your Daily Hit of cannabis financial news for September 9, 2019.

On the Site

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) has been on a dispensary buying binge this past couple of weeks. Today the company has added to that list of newly acquired properties. The company said it would be buying four additional dispensaries in Colorado from a leading cannabis retailer. The company’s total dispensary count will grow to 27 upon the successful closing of all the pending acquisitions.

Cannabis Meets Fashion At New York Fashion Week

Fashion met cannabis this past weekend as Project Runway Allstar, Korto Momolu, partnered with Women Grow, the largest network of women in the cannabis and hemp industries for a runway show spectacular. The combination of high fashion and activewear emblazoned with the Women’s Grow logo was well-received by an enthusiastic audience.

Medical CCAs 101 (Cannabis Cooperative Associations)

This article describes the additional financial benefits of moving flower from cultivator to consumer through a CCA as medical cannabis rather than as adult-use cannabis.

In Other News

Aurora Cannabis

Aurora Cannabis Inc. (NYSE: ACB) has closed its previously announced amended and upsized credit facilities with a syndicate of lenders led by the Bank of Montreal. This consist of C$160 million in term loans and a feature enabling to company to upsize the facility by approximately C$40 million, in addition to the original C$200 million in credit facilities. “We are very pleased to now have three of the five largest Schedule 1 Canadian banks in our syndicate, along with increased participation from other key syndicate partners,” said Terry Booth, CEO of Aurora.

Tilray

Tilray Inc. (NASDAQ: TLRY) announced that it has signed a definitive merger agreement with Privateer Holdings, which is the company’s largest stockholder. Under the agreement, the parties will effect a downstream merger of Privateer with and into a wholly-owned subsidiary of Tilray, with the Tilray subsidiary surviving the merger, and the issuance by Tilray to Privateer equity holders of newly issued and registered shares of Tilray common stock and options to purchase shares of Tilray common stock in an aggregate amount equal to the number of Tilray common shares currently held by Privateer.

Sunniva

Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) announced that its that its wholly owned subsidiary, Natural Health Services Ltd. (NHS) has been named in a class action lawsuit filed in connection with a previously reported privacy breach of the Electronic Medical Record system used by NHS. “From the time we initially became aware of this issue, we have taken all the necessary steps to prevent a situation like this from happening again in the future,” said Dr. Mark Kimmins, President of NHS. “We continue to work with law enforcement and the Office of the Information and Privacy Commissioner of Alberta in the ongoing investigation into this matter.”

It’s time for your Daily Hit of cannabis financial news for August 29, 2019.

On the Site

Tilray

Tilray, Inc. (NASDAQ: TLRY) will be buying Alberta-based dispensary chain FOUR20 through its wholly-owned subsidiary of High Park Holdings Ltd. The recreational retail brand provides adult-use cannabis consumers with a premium retail experience focused on high-quality product selection, education, and community. FOUR20 currently operates six licensed retail locations and has 16 additional high-traffic locations secured in desirable locations in Alberta, including Canmore, Calgary, and Edmonton.

Food, Drug or Something Else: What is Hemp-Derived CBD?

It has been just over a month since the public comment period closed in the wake of the public hearing held by the FDA, “Scientific Data and Information about Products Containing Cannabis or Cannabis-Derived Compounds”. Over 4,000 comments were docketed, ranging from controlled scientific data submissions to tales of miracle cures to horror stories. It will be interesting to see what the agency gleans from the docket.

Los Angeles Bringing Back The “War on Drugs” for Illegal Commercial Cannabis Activity

Bringing Back The War – A bit of background on illegal storefront dispensaries tells us And the enforcement in California will come from both state and local authorities. The City of Los Angeles recently launched a massive crackdown on unlicensed, illegal cannabis businesses, filing misdemeanor charges against more than 500 people and shutting down 105 illegal cannabis businesses, including cultivation operations, extraction labs, and delivery companies across the city

In Other News

Cansortium

Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) reported its second quarter revenue today. Consolidated revenue increased to $6.1 million. The consolidated net loss was $5.3 million. Consolidated EBITDA was $1.8 million. “While we continued to execute our strategy to expand cultivation, processing, and dispensaries during the second quarter, a combination of unexpected delays in construction needed in order to secure final regulatory approvals at our Tampa cultivation Phase 2 expansion, as well as delays in opening certain previously planned Florida dispensaries, led to second quarter revenues that were lower than originally anticipated. As a result, we are experiencing an approximate six-month delay on our plans presented earlier in the year,” said Cansortium CEO Jose Hidalgo.

Vireo Health

Today, Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) reported its financial results for the second quarter. Operating revenue totaled $7.2 million, and the net loss was approximately $1.9 million. EBITDA and adjusted EBITDA were $0.8 million and $2.3 million, respectively. “Increasing patient enrollment in Minnesota and New York continued contributing to organic revenue growth during the second quarter, and wholesale demand trends in Maryland and Pennsylvania have also been encouraging signs that our products can compete effectively within a broader marketplace,” said Vireo Founder and CEO, Kyle Kingsley.

Gabriella’s Kitchen

Gabriella’s Kitchen Inc. (CSE: GABY) also released their financial results for the quarter. Revenue was $2.5 million, up from $319,737 in the same period in the previous year. The gross loss declined from $264,607 to $49,712. As of June 30, 2019, the company has $11.5 million in cash and $37.3 million in assets. “When we announced our target on May 7, 2019 of $35 million in pro-forma revenue for the fiscal year, we took into account that Q2 would be a slower quarter due to the delayed closing of our $20 million raise, the company’s short-term decision to allocate available capital to maintain relationships and shelf space with dispensaries, and the transitioning from a shared distribution model in Southern California to a sole distribution model, staffed with our internal salespeople,” said Margot Micallef, Founder and CEO of GABY.

Newer Posts

Older Posts

Recent Stories by William Sumner

On the Site

WeedMD

Developing An Authentic Celebrity Cannabis Brand

In Other News

MediPharm Labs

GW Pharmaceuticals

On the Site

Eaze

iAnthus

In Other News

Future State Brands

Vireo Health

On the Site

Overcoming Canada’s Cannabis Shortage

Supreme Cannabis

In Other News

CannTrust

Flower One

On the Site

Medical CCA’s (Cannabis Cooperative Association) 201

Dead, Alive, Comatose. Are medical cannabis collectives dead or alive?

In Other News

Innovative Industrial Properties

NewLake Capital Partners

Tilray

Vapen MJ

Aurora Cannabis

On the Site

Canndescent

Dissect the Economics of Cannabis Branding at the Green Market Summit

In Other News

MedMen

Sunniva

On the Site

Medicine Man Technologies

Cannabis Meets Fashion At New York Fashion Week

Medical CCAs 101 (Cannabis Cooperative Associations)

In Other News

Aurora Cannabis

Tilray

Sunniva

On the Site

Tilray

Food, Drug or Something Else: What is Hemp-Derived CBD?

Los Angeles Bringing Back The “War on Drugs” for Illegal Commercial Cannabis Activity

In Other News

Cansortium

Vireo Health

Gabriella’s Kitchen

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