Here on the Marijuana Minute, you will find the top stories from around the industry in this week’s Cannabis Stock News Recap for the week of May 13th – 19th, 2019.
Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB), announced today its financial and operational results for the third quarter ended March 31st, 2019.
- Solid Net Revenue Growth Across All Channels to $65.1 Million
- Production Volumes Double While Per-Unit Production Costs Decline
- On Track to Deliver Positive EBITDA Beginning in Fiscal Q4 2019
“I’m exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy. We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry. We are laser focused on building a long-term sustainable business,” said Terry Booth, CEO.
Tilray, Inc. (Nasdaq: TLRY) a global leader in cannabis research, cultivation, production, and distribution, today reported financial results for the first quarter ended March 31, 2019. All financial information in this press release is reported in U.S. dollars unless otherwise indicated.
“We are pleased with our first quarter results and the ongoing, substantial progress our team has made to position Tilray as a global leader in the cannabis industry,” said Brendan Kennedy, Tilray President, and CEO.
Aleafia Health Inc. (TSX: ALEF) (OTCQX: ALEAF) (FRA: ARAH) is pleased to provide a corporate update and report its First Quarter 2019 financial results for the period ended March 31, 2019.
- Year-Over-Year Revenue Increases by 1,723%
- Licence Applications for Niagara Greenhouse, Port Perry Outdoor now Under Review
“In 2018, Aleafia Health laid the groundwork for a breakthrough 2019, and we have now begun to see the results of this work. The closing of the transformative acquisition of Emblem has accelerated our global mission of growing, processing and selling high-margin value-added cannabis products by 12 to 18 months,” said Aleafia Health CEO Geoffrey Benic.
The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), announced today the release of its financial and operating results for the three and nine months ended March 31, 2019.
- Q3 2019 net revenue was $10 million, a 382% increase from Q3 2018 ($2.1 million) and a 29% increase from Q2 2019 ($7.7 million).
- Sales revenue from adult-use recreational markets increased 63% quarter over quarter.
- During the quarter, 7ACRES’ facility was approved for 90,000 sqft of additional production capacity, increasing annual capacity from 13,300kg to 26,250kg.
“Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) is pleased to report its financial and operational results for the three months ended March 31, 2019.
- Is on-track with construction at Hamilton and Valleyfield sites, with investment amounting to $46.9 million in the first quarter of 2019, an increase of $7.4 million compared to $39.5 million incurred in the fourth quarter 2018.
- Achieved revenues primarily from HemPoland of $2.4 million, a 28% increase over the prior quarter.
- Ended the quarter with a strong balance sheet and liquidity, including $224.4 million of cash and restricted cash to continue funding its facilities expansion as well as for operating costs and international growth.
“Q1 results are continued proof that we are delivering on our business plan with executional excellence,” commented Brian Athaide, CEO of TGOD. “The Company is now bringing to market high quality, premium certified organic cannabis flower and hemp-derived CBD oils.
CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) today released its financial results for the first quarter ended March 31, 2019.
First Quarter 2019 Highlights:
- Record quarterly revenue of $16.9 million, a 115% increase over the first quarter of 2018, 67% was through the medical channel and 33% through the recreational channel
- Total active patient count reached 68,000 at March 31, 2019, a 70% increase over the first quarter of 2018
- Harvested production increased by more than 400% to over 9,400kg, versus the first quarter of 2018, and 96% over the fourth quarter of 2018
“With the successful closing of our equity offering providing gross proceeds of US$170 million (before exercise of the over-allotment option), we are well positioned to execute on our growth plans. This is a very exciting time for CannTrust and we plan to continue executing on our vision of becoming a global provider of innovative cannabis products and brands,” continued Mr. Aceto.
MariMed Inc. (OTCQB: MRMD) one of the largest multi-state cannabis operators in the US, today announced 2019 first quarter results for the period ending March 31, 2019.
- Significant improvement in operating performance – Revenue up 69%; Adjusted EBITDA up 76%
- Planned consolidation of cannabis operations under MariMed banner advancing on schedule
- The launch of MariMed Hemp operations including the development of CBD brands and products
- Conversion of debt investment in GenCanna Global Inc. to a significant equity ownership interest
MariMed CEO Bob Fireman noted, “We continue to see dynamic growth in our cannabis operations, even as we have become a significant early mover in the burgeoning CBD health and wellness market.
In Canada, the legal production and sale of marijuana is regulated under The Cannabis Act. To comply with the law, cannabis producers must receive regulatory approval for commercial growing and production operations from Health Canada, the national health department. The way Health Canada approves companies to pursue the cannabis market is changing, and the implications for investors are huge.
However, on a 12-month basis, analysts believe that The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) and CannTrust Holdings (TSX: TRST) (NYSE: CTST) have more built-in value as they are expected to immerge as global leaders. Let’s take a closer look at these 2 stocks.
The typical sentiment around cannabis stocks is positive overall, so it’s hard to believe the spring month of April could be so lackluster. It’s possible that investors who believe in the Sell in May an Go Away theory decided to get an early jump on the expected selling. Although investors believe that the industry will bring in over $50 billion over the next decade it has still been a bumpy couple of months, as investors sort through their top picks.
Of all the marijuana stocks we track, there were over 20 that ended the month of April in the green. Here are the top performers for the month of April, and some may not be the names you expected.
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce that it has entered into a multi-year supply agreement with Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON). MediPharm Labs will supply Cronos Group with approximately $30 million of high-quality private label cannabis concentrate over 18-months, and, subject to certain renewal and purchase options, potentially up to $60 million over 24-months. In addition, Cronos Group has selected MediPharm Labs’ state of the art extraction facility in Barrie, Ontario, as a preferred partner to fulfill certain of its processing needs, under a separate tolling arrangement.
Organigram Holdings Inc. (TSXV: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce that its common shares will commence trading on the Nasdaq Global Select Market under the symbol “OGI” on Tuesday, May 21, 2019. Organigram’s common shares will continue to be listed and trade on the Toronto Venture Exchange (TSXV), also under the symbol “OGI”. The Company’s common shares will continue to trade on the OTCQX under the symbol “OGRMF” until market close on May 20, 2019.
Tidal Royalty Corp. (CSE: RLTY.U) is pleased to announce that, further to its press releases on February 14, 2019 and February 25, 2019, the Company has executed a business combination agreement with MichiCann Medical Inc. (operating as Red White & Bloom) pursuant to which the Company will acquire all of the issued and outstanding shares of MichiCann.
The Proposed Transaction will be completed by way of a three-cornered amalgamation under the Business Corporations Act (Ontario), whereby 2690229 Ontario Inc., a wholly-owned subsidiary of the Company will amalgamate with MichiCann.
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is pleased to announce that the Company was featured on BTV video which was broadcast this past weekend on BNN.
“TransCanna continually looks for ways to communicate our initiatives with current and future shareholders. BTV represented a great opportunity for us to share our vision and build this support on a go forward basis. We will continue to use this platform as we move and be able to share our progress in Modesto,” states Jim Pakulis, CEO of TransCanna.
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is pleased to announce today the execution of a non-binding Letter of Intent dated May 15, 2019 with Tres Ojos Naturals, LLC d/b/a SolDaze, a limited liability company from Santa Cruz, California, to acquire the branding asset package, Soldaze. SolDaze produces cannabis-infused fruit snacks in California.
“Having reviewed over 100 branded products in California, we’ve been extremely selective in our acquisition vetting process. Our three mandatory acquisition criteria include SKU velocity, upward trending revenues, and products that differentiate themselves in the marketplace. The snack line from SolDaze, and specifically the cannabis-infused mango products, meets all three requirements,” stated Jim Pakulis, CEO of TransCanna.
Aurora Cannabis Inc. (TSX: ACB) (NYSE:ACB) (Frankfurt: 21P; WKN: A1C4WM) and Radient Technologies Inc. (TSXV: RTI) (OTCQX: RDDTF), announced today that Aurora has taken delivery of Radient’s first commercial batch of finished cannabis derivatives, from Radient’s proprietary extraction platform. With this first batch, Radient has proven its enhanced ability to produce cannabinoid derivatives at commercial scale, and will continue to scale up production at Radient’s cannabis facility in Edmonton, reaching an expected eventual annual throughput of approximately 300,000 kg of cannabis biomass at this single location.
Transformational Milestone for Radient, Increasing Aurora’s Global Derivative Market Capacity Substantially.
Newstrike Brands Ltd. (TSXV:HIP) is pleased to announce that, at the Annual and Special Meeting, Newstrike shareholders overwhelmingly voted in favour of the arrangement resolution under which HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) will acquire all of Newstrike’s issued and outstanding common shares by way of a plan of arrangement under the Business Corporations Act (Ontario).
Following completion of the Arrangement, Newstrike will become a wholly owned subsidiary of HEXO and will cease to be a reporting issuer and its shares will be delisted from the TSXV.
Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: 0ZV) is pleased to announce that, further to the joint news release with Canopy Growth Corporation on April 18, 2019, Acreage has obtained an interim order of the Supreme Court of British Columbia in connection with the proposed arrangement to be implemented under a statutory plan of arrangement pursuant to section 288 of the Business Corporations Act (British Columbia).
The Interim Order provides for, among other things, the holding of a special meeting of the holders of subordinate voting shares, proportionate voting shares and multiple voting shares, and collectively with the Subordinate Voting Shares and Proportionate Voting Shares of Acreage to, among other things, consider and vote upon the Arrangement.
Tweed, Canada’s leading cannabis brand has just arrived in London! A local Londonlicensee has collaborated with Alimentation Couche-Tard to bring the Tweed brand retail experience to the city, and we are proud to announce that our doors are now open!
With a commitment to best-in-class customer service, quality assurance and a wide variety of products and accessories, Tweed has set the standard for recreational cannabis and we are so excited to bring the very first Tweed branded retail cannabis store in Ontario to London.
The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) and Blissco Cannabis Corp. (CSE: BLIS) (OTCQB: HSTRF) (FRA: GQ4B:GR) are pleased to announce that they have entered into a definitive arrangement agreement under which Supreme Cannabis will acquire, by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia), all of the issued and outstanding common shares of Blissco not already owned by Supreme Cannabis. The Arrangement is an all-stock transaction with a total value of approximately C$48 million.
“Supreme Cannabis is the best-positioned company in the cannabis space to help Blissco achieve its ambition of delivering innovative, quality assured full-spectrum cannabis products to the world,” said Damian Kettlewell, CEO of Blissco.
iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF), which owns, operates, and partners with best-in-class regulated cannabis operations across the United States, is pleased to announce the unveiling of its national retail brand, “Be.” at Canaccord Genuity’s 3rd Annual Cannabis Conference.
Neil Calvesbert, iAnthus’ Chief Marketing Officer, said, “Be. was created to align with what we see as the need for a cannabis retail experience where consumers can simply “Be. You”. Be. is a place to empower self-expression and being a better version of yourself. Be. is a place where you will smile again”
Trulieve Cannabis Corp. (CSE: TRUL) (OTCPK: TCNNF) today announced that the Company has entered into an agreement dated May 16, 2019, to acquire 100 percent of The Healing Corner, Inc., a medical marijuana dispensary located in Bristol, Connecticut.
“Expanding and diversifying beyond our Florida base is key to our strategic vision. This further growth in the New England region is an important step as we move forward with establishing Trulieve as a national presence in the cannabis sector,” said Kim Rivers, CEO of Trulieve.
SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) (Frankfurt: 9SB) is pleased to announce that it has entered into letters of intent to acquire ECD, Inc., which operates as Northern Emeralds, an industry leading cannabis cultivation, processing and distribution company headquartered in Humboldt County, California, as well as six licensed dispensary companies in California that will subsequently operate under the nationally recognized “One Plant” brand. SOL Global intends to open One Plant-branded dispensaries throughout California (a total of 20 operating and licensed dispensary companies), Florida, and Michigan.
The Proposed Acquisitions Further Solidifies SOL Global’s MSO Strategy Which Would Include Robust Operations in 3 of the Top 10 Cannabis Markets by Revenue in the U.S., Florida, Michigan, and California.