William Sumner
It’s time for your Daily Hit of cannabis financial news for October 25, 2018.
On the Site
MedMen Enterprises
MedMen Enterprises (MMNFF) reported fourth quarter revenues of $20.6 million, an increase of 1,317% over last year’s $1.5 million and a 44% sequential increase over the third quarter revenue of $14.3 million. The jump was attributed to the number of stores that came online during the quarter. However, operating expenses for the fourth quarter, including SG&A, was $72.6 million.
Canadian Cannabis Companies Report Record Sales Post-Legalization
It has been a little more than a week since recreational cannabis sales were launched in Canada, and already the policy has become a big hit. Millions of dollars in cannabis sales have already been recorded, and in the province of British Columbia alone there have been more than 21,000 transactions.
Cannabis Companies Are Navigating Trump’s Tariffs
Medical Marijuana, Inc. (OTC: MJNA) CEO Dr. Stuart Titus tells Green Market Report how his company has had to navigate the rapidly changing landscape when it comes to President Trump’s approach to international trade and tariffs.
In Other News
Aurora Cannabis Inc.
Aurora Cannabis Inc. (ACB) announced that the Polish Ministry of Health has given the company approval to import its first shipment of medical cannabis, which is expected to occur over the next several days. Aurora Deutschland GmbH will ship the product to a hospital and a pain treatment in Warsaw. “Becoming the first company to supply cannabis to Poland is validation of Aurora’s ability to do business in international markets with high barriers to entry,” said Neil Belot, Chief Global Business Development Officer for Aurora. “This is an important milestone for patient access in Poland…”
Namaste Technologies Inc.
Namaste Technologies Inc. (N) today closed its previously announced bough deal short form prospectus offering, which included the full exercise of the over-allotment option. In total, 17.25 million units of the company were sold at a price of $3.00 per unit; generating $51.75 million in funding. Each unit consisted of one common share and three quarters of one common share purchases warrant. Eight Capital and Canaccord Genuity Corp. acted as co-lead underwriters and joint book runners. The underwriters for the deal received a 6% commission of the gross proceeds. The proceeds from the offering will be used by the company to general working capital; as well as inventory and supplies, capital improvements, personnel and facility operations, etc.
4Front Holdings, LLC
4Front Holdings, LLC announced that it has closed a private placement of equity securities. Initially seeking $15 million, the company increased the initial amount to $31 million due to increased demand. Eight Capital acted as the lead underwriter and bookrunner. The proceeds of the offering will go towards the funding of ongoing investments, the buildout of its multiple Mission-branded dispensaries and cultivation facilities, and for merger and acquisition opportunities. “The success of the Offering demonstrates that our message of pursuing prudent yet aggressive growth is resonating with investors,” said Josh Rosen, 4Front CEO and co-founder. “I’m particularly excited by the caliber of our new investors, as well as the broad participation in the Offering by our existing investors.”
