William Sumner
It’s time for your Daily Hit of cannabis financial news for November 29, 2018.
On the Site
MedMen
MedMen Enterprises (MMEN) (MMNFF) reported that its fiscal year 2019 first-quarter revenue grew 1,094% to $21.5 million over last year’s $1.8 million for the same time period. Still, the company reported a net loss of $66.5 million, or a loss of $1.42 per share, a dramatic increase over last year’s loss of $5.7 million for the same time period. This was a slight improvement over the net loss of $78.7 million for the fourth quarter last year.
Acreage Holdings
Today, Acreage Holdings Inc. (CSE: ACRG.U) announced its unaudited financial results for the third quarter, which ended on September 30, 2018.
Acreage reported quarterly revenue of $5.5 million, representing a 160% increase when compared to the same period in the previous year. The company’s year-to-date revenue increased by 92% to $10.6 million. The company’s net loss increased from $0.7 million in the third quarter of 2017 to $4 million. The year-to-date net loss was $2.1 million.
Dixie Brands Begins Trading On CSE Today
Dixie Brands, Inc. began trading on the Canadian Securities Exchange (CSE) on Thursday following the completion of a reverse takeover (RTO) of Canadian public company, Academy Explorations Limited. Dixie shares opened at C$1.05 and the shares traded as high as C$1.18 and as low as C$0.76.
In Other News
Canopy Growth Corporation
Canopy Growth Corporation (TSX: WEED) announced that it has entered into an 18-month strategic supply agreement with MediPharm Labs Inc. (TSX: LABS). MediPharm will supply Canopy and its subsidiaries with 450 kilograms of cannabis extract, with an option to purchase an additional 450 kilograms. “As the industry matures we are seeing exciting businesses like MediPharm establish specialized skill sets that will drive the industry forward. Extraction is now and will continue to be an opportunity to develop expertise and IP,” said Bruce Linton, Chairman & Co-CEO of Canopy Growth.
Xtraction Services
Xtraction Services, a company focused on providing financing for cannabis extraction equipment, announced that it has oversubscribed its Series C financing round and has raised more than $3 million; marking the second time the company has exceeded its financing goal. “Xtraction Services has received substantial attention from both investors and customers for our exclusive position, approach, and product offering within these emerging industries,” said David Kivitz, CEO of Xtraction Services. “This additional funding will allow us to grow and scale our company, as well as expand our leasing options to meet the additional needs of our existing and new customers.”
Body and Mind Inc.
Body and Mind Inc. (CSE: BAMM) and Australis Capital Inc. (CSE: AUSA) announced today a USD $5.2 million investment into Green Light District Holdings, Inc. (GLDH). The investment was made through a senior secured convertible note at a rate equal to 20% per annum. Body and Mind has the option to convert the note into 89.75% of the shares in GLDH. Additionally, the company has agreed to issue roughly USD $6.9 million, payable in shares, to David Barakett. Body and Mind’s investment partially funded by a AUS $4 million secured loan from Australis. “Our gratitude goes to the team at Australis, who worked tirelessly in assisting us in getting this deal completed within a one-week period. Australis not only provided BaM with a secured credit facility, but also agreed to exercise approximately 3.2 million warrants to allow us to maintain a responsible debt to equity ratio,” commented Body and Mind CEO Leonard Clough. “This is a demonstration of how the Australis and BaM relationship benefits both our shareholders. Secondly, I am happy to welcome David to our team and believe that this opportunity is multi-dimensional as it provides a benefit to almost all our business segments.”
