Video Staff
The cannabis industry is ending 2020 with a bang as financial deals are closing on a high note.
This week Weedmaps announced it was going public through a deal with the Silver Spike SPAC. The stock will be listed on the Nasdaq marketplace. The most eye popping thing about this deal was the $1.5 billion valuation given to Weedmaps. That’s a pretty sweet premium considering the company is only on track to deliver $160 million in revenue this year.
GrowGeneration Corp. (NASDAQ: GRWG) increased its offering from the recently announced $125 million to $150 million and priced 5,000,000 shares of its common stock at $30.00 per share. The company said it expects to close the Offering on or about December 11, 2020. GrowGen shares fell on the news of the offering as investors are concerned about dilution.
cbdMD, Inc. (NYSE: YCBD) priced its underwritten public offering of its 8.0% Series A Cumulative Convertible Preferred Stock at a price of $7.50 per share. cbdMD expects to receive gross proceeds of $15 million.
Numinus Wellness Inc. (TSXV: NUMI) said it has done a bought deal that will bring the company $15 million. The original deal was for $10 million.
In not so good news – Employees of Canopy Growth (TSX: WEED) (NASDAQ: CGC) got a call from the Grinch as 200 employees learned they would no longer have a job. Canopy Growth said it would cease business at several sites and basically end all outdoor growing operations. The company also said it expects to record estimated total pre-tax charges of approximately $350 -400MM in the third and fourth quarters of Fiscal 2021.
MedMen Enterprises Inc.(CSE: MMEN) (OTCQX: MMNFF) released its consolidated financial results for its first-quarter fiscal 2021 ending September 26, 2020. The company delivered a sequential growth of 31% on revenue of $35.6 million, however, it declined from $39.7 million for the same time period in 2019. On a positive note, the net losses were trimmed to $21.9 million from last year’s $33.1 million. The company also managed to dramatically cut expenses from last year’s $71 million to just $24.9 million. Still, MedMen said it only had $10 million in cash as of September and it is working on new financing.
HEXO Corp. (NYSE:HEXO) wants to change its plan on consolidating its shares to a four to one ratio from eight to one since its share price has risen. Hexo is consolidating its shares in order to meet the compliance standard of $1.00 per share for the New York Stock Exchange.
