Video Staff
The big news this week was the announcement that Curaleaf was buying Grassroots in a deal valued at $875 million. Grassroots was one of the few remaining multi-states that was still private. This deal will give Curaleaf the midwest footprint that it lacked because of the company’s operations in Illinois and Pennsylvania. In May Curaleaf acquired Select, which will give the company its west coast market. Now with all three pieces of the puzzle-filled, Curaleaf is on course to challenge Acreage Holdings as the largest cannabis company in the country.
A few earnings were reported this week.
Organigram reported its third-quarter net revenue of $24.8 million but that fell sequentially by $2 million from the second-quarter net revenue of $26.9 million. The company blamed it on fewer reorders from British Columbia. The company also delivered a net loss of $10.2 million. The cost of cultivation increased sequentially as well as sending gross margins down. Organigram said it has gone back to its previous method of growing and is preparing for the edible and vape markets to launch in Canada later this year.
Valens GroWorks Corp. reported that its revenue increased to $8.8 million, a 296% increase over the first quarter of 2019. However, the net loss was a whopping $10.5 million.
Canopy Rivers Inc. reported its fourth quarter and year-end financial results for fiscal 2019. Operating income was C$6.08 million, down from C$19.5 million. Operating losses declined a great deal, but the company experienced a total comprehensive loss of $30.35 million for the year.
TILT Holdings Inc. said that it has signed a binding term sheet for a private placement of $125 million. The company said it would use part of that to retired a $20 million credit facility that had a fairly large interest rate of over 18%.
The Arcview Group announced that it has closed a $7.7 million Series A financing round. Leading the fundraise was Trivergance Investments in partnership with Cresco Capital Partners.
And finally, A decision by Israel’s Securities Authority last week opens the doors for cannabis companies from around the world to explore a public listing on the Tel Aviv Stock Exchange, even though recreational use is not legal in Israel.
