Staff
It’s time for your Daily Hit of cannabis financial news for July 12, 2018.
On The Site
Green Spirit Industries
Green Spirit Industries (GSRX) continues to build itself up from the Pink Sheets as this tiny dispensary chain expands its footprint.
The company reported revenue of $353,430 for the second quarter and gross profits of $153,073. The second quarter loss per share was $.03, an 85% improvement from the same period last year, which was a loss per share of $.20. Operating expenses for the current quarter decreased 50% to $1,656,561, compared to $3,297,215 for the prior year period. Total assets as of June 30, 2018, were $9,626,698, versus total liabilities of only $248,824.
MJardin
Denver-based MJardin has engaged Canaccord Genuity along with KES 7 Capital Inc. to pursue a private placement to raise money to hasten the company’s expansion strategy. The offering will be complete along with the company’s previously announced reverse take-over of Sumtra Diversified Inc. The shares will be listed on the Canadian Stock Exchange.
In Other News
Kush Bottles, Inc.
Kush Bottles, Inc. (KSHB) reported financial results for its third quarter of 2018, for the period ended May 31, 2018. Revenue was up 173% Year-over-Year to $12.9 million. Gross margins were 28.3%, compared with 35.5% in the prior year period, which is attributed to increased business in the lower margin vaporizer and cartridge product segment(s). Net loss, including $258,837 in depreciation and amortization expense, $5.0 million in SG&A and $495,897 in stock compensation expense, was approximately $2.16 million compared to net income of $6,119 in the fiscal third quarter of 2017.
Canopy Growth
Canopy Growth (WEED) (CGC) entered into an agreement to acquire Hiku Brands. Following the news, Canaccord Genuity raised Canopy Growth’s target price to $34 from the previous target of $32. Canaccord Genuity thinks that the Hiku Brands acquisition will help Canopy Growth enhance its retail presence in western Canada.
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. (IIPR), the leading provider of creative real estate capital solutions to the medical-use cannabis industry, announced today that it closed on the acquisition of a property located at 96 Palmer Road in Monson, Massachusetts, which comprises approximately 55,000 square feet of industrial space situated on approximately 5.4 acres. The purchase price for the property was $12.75 million.
Terra Tech Corp.
Terra Tech Corp. (TRTC) has agreed to sell 100% of the assets of its cannabis dispensary located at 1921 Western Avenue in Las Vegas, to Exhale Brands Nevada, for a total consideration of $6,250,000. Located adjacent to the Las Vegas Strip, the 3,900 square foot facility for the Western Avenue dispensary was initially opened by Terra Tech in April of 2015. Terra Tech is confident that a sale is the best way to realize value for shareholders, given the significant increase in value the property has seen since it was purchased by the company.
Green Thumb Industries Inc.
Green Thumb Industries Inc. (GTBIF) entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and GMP Securities L.P. to which the underwriters will purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 7,300,000 subordinate voting shares of the company at a price of CAD$11.00 per offered security for aggregate gross proceeds of CAD$80.3 million.
