Investorideas.com - Cannabis Stock News: GW Pharmaceuticals (Nasdaq: $GWPH) and Greenwich Biosciences Announce FDA Acceptance of sNDA Filing with Priority Review for EPIDIOLEX™ (cannabidiol)
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Tuesday, 31 March 2020
Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 392 (TSXV: $KHRN.V) (TSX: $VFF.TO) (NASDAQ: $VFF) (TSXV: $VLNS.V) (TSX: $TRST.TO) (CSE: $BILZ.C)
Investor
Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 392 (TSXV: $KHRN.V) (TSX: $VFF.TO) (NASDAQ: $VFF) (TSXV: $VLNS.V)
(TSX: $TRST.TO) (CSE: $BILZ.C)
Delta, Kelowna, BC, March 31st, 2020 (Investorideas.com
Newswire) www.Investorideas.com, a global news source covering leading sectors
including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today’s podcast
edition of cannabis news and
stocks to watch plus insight from thought leaders and experts.
Listen to the podcast:
Read this in full
at https://www.investorideas.com/news/2020/cannabis-potcasts/03311KHRN-VFF-VLNS-TRST-BILZ.asp
Today’s podcast overview/transcript:
Good
afternoon and welcome to another episode of Investorideas.com
"Potcast" featuring cannabis news, stocks to watch as well as
insights from thought leaders and experts.
In
today’s podcast we are looking at a few public announcements.
Khiron Life
Sciences Corp. (TSXV:
KHRN) (OTCQX:
KHRNF) a vertically integrated cannabis leader with core
operations in Latin America, announced that
the Company has launched its teleconsultation services, leveraging its medical
team and existing patient network to meet essential patient needs during the
current COVID-19 pandemic. From an initial beta launch, the Company anticipates
rapidly expanding services across its entire patient network amidst the growing
acceptance of telemedicine services.
"We
are in unprecedented times and so it is more important than ever for Khiron to
continue to meet the medical needs of our patients. The launch of our
teleconsultation services was made possible with our on-staff doctor expertise
and established patient network, allowing us to move swiftly to continue to
deliver clinical services and prescriptions for medical cannabis and other
drugs, directly to the patients who need
it," comments Alvaro Torres, Khiron CEO and director.
Khiron's
teleconsultation services launch on April 1st, with an initial beta
phase to serve priority patient needs. Expanded services will launch in the
coming weeks to be fully available to patients across Colombia, including to
the Company's over 120,000 patient network established through its ILANS and
Zerenia medical facilities. The Company is working closely with third party
payers to ensure the program meets their insurance coverage requirements.
"Khiron
has established contingency plans in place for all our facilities, including
our medical facilities which are essential to serving the community. Those
plans were put into action and our medical facilities and supply chain remain
operating within strict government guidelines established as a result of the
current pandemic. I commend our frontline staff for their continued hard work
and commitment to meeting patient needs during this difficult time," said
Mr. Torres.
Khiron
is the first, and currently the only, Company authorized to sell medical
cannabis in Colombia, having recently obtained certification of Good
Elaboration Practices (GEP) for Magistral Preparations with Cannabis. Under
Colombian regulations, GEP is a manufacturing and processing certification that
is a mandatory requirement for commercializing customized medical cannabis
prescriptions known as magistral preparations.
Village Farms
International, Inc. (TSX:
VFF)
(NASDAQ:
VFF)
announced
its
financial results for the fourth quarter and year ended December 31, 2019. Village Farms currently has a majority
(non-controlling) interest of 57.4% of its cannabis joint venture, Pure
Sunfarms Corp., however, at December 31, 2019 had a majority (non-controlling)
interest of 53.5%.
"2019
was an outstanding year for Pure Sunfarms that saw it generate more than C$35
million in net income and EBITDA of C$54 million on sales of C$83 million, with
a full-year, all-in cost of production of C$0.78, even as it was ramping up
operations for much of the year," said Michael DeGiglio, CEO Village
Farms. "In an industry that has been broadly impacted by inexperience and
imprudence, Pure Sunfarms continues to set itself apart both operationally and
financially."
"Even
amidst the continuing challenging macro environment, partially due to slower
than expected retail store openings, Pure Sunfarms reported positive net income
and positive EBITDA in the fourth quarter – its fifth consecutive quarter of
positive EBITDA. Fourth quarter sales reflect Pure Sunfarms' transition from
its focus entirely on the wholesale market to its focus on the branded retail
market. As expected, during the fourth
quarter Emerald did not take any of its 40% commitment under its supply
agreement with Pure Sunfarms, which could not readily be redirected given the
inactive wholesale market. In addition,
one of the three large initial branded retail product shipments to provincial
boards occurred before the fourth quarter, with one of the other three
occurring after the fourth quarter."
"Immediately
out of the gate, Pure Sunfarms established itself as a leading cannabis brand,
highlighted by its number one dried cannabis sales performance in Ontario. This
bodes very well for Pure Sunfarms as the Canadian market continues to grow, as
provinces, especially Ontario, expand their retail store counts, and Pure
Sunfarms expands into other provinces, and introduces new products, including
new product forms under Cannabis 2.0.
Importantly, Pure Sunfarms' industry leading cost of production, with
opportunities to drive that cost even lower, provides it with significant
pricing flexibility to capture even greater market share."
"In
our U.S. hemp and CBD business, 2019 saw us build the foundation to capitalize
on this transformative long-term opportunity, highlighted the formation of
joint ventures with high-caliber partners for outdoor cultivation, a very
successful inaugural outdoor growing season, the start of conversion of a
greenhouse operation for hemp production and significant advancement on our
consumer packaged goods strategy. At this
time, we have deemed it prudent to pause capital investment given the current
uncertain regulatory environment and limited visibility, which has had
significant negative impact on hemp demand and pricing. As we await regulatory
clarity, we remain committed to the industry, and continue to actively pursue
opportunities in the near term."
"2019
continued to see the transition of our produce business as we experienced
ongoing pricing pressure from U.S. and Canadian retailers and, as expected, had
lower volumes due to the displacement of production capacity for both cannabis
in Canada and hemp production in the U.S., ahead of bringing our significantly
expanded growing partner production on board.
At the same time, we have maintained our corporate cost structure to
support our significant opportunities in hemp and CBD, as well as cannabis in
Canada. Notwithstanding the potential impacts of the COVID-19 pandemic, we
expect to see significant partner capacity this year as we continue to execute
on our plan to return the produce business to positive EBITDA generation."
Valens GroWorks
Corp. (TSXV:
VLNS) (OTCQX:
VLNCF) announced that it
has received conditional approval from the Toronto Stock Exchange to uplist
from the TSX Venture Exchange to the TSX.
"Graduating
to the TSX represents a significant milestone in our efforts to broaden our
appeal to a larger shareholder base and raise the company's profile among the
investment community," said Tyler Robson, CEO of The Valens Company. "Coming
off a record year of growth for the company, this uplisting will work to
enhance the liquidity of our stock and enable us to continue building long-term
shareholder value."
Final
approval of the listing is subject to the Company fulfilling any remaining
conditions as required by the TSX. The Company expects to satisfy all of the
requirements and will issue a statement once a trading date has been confirmed
by the TSX. Upon completion of the final listing requirements, The Valens
Company's common shares and warrants will be delisted from the TSXV and
commence trading on the TSX under the trading symbols "VLNS" and
"VLNS.WT." The Company's shares will continue to trade on the OTCQX
market under the symbol 'VLNCF'.
CannTrust Holdings
Inc.
(TSX:
TRST) (NYSE:
CTST) announced today
that the Company has obtained an order (the "Initial Order") from the
Ontario Superior Court of Justice granting protection under the Companies' Creditors Arrangement Act. In
accordance with the Initial Order, all creditors of CannTrust, CannTrust Inc.,
CTI Holdings (Osoyoos) Inc., and Elmcliffe Investments Inc., as well as the
plaintiffs in the putative class actions and other litigation brought against
the Applicants, will be stayed from enforcing their claims. The Initial Order
provides for a stay of proceedings in favour of the Applicants for an initial
period of 10 days, subject to such extensions as the Court may subsequently
order, and the appointment of Ernst & Young Inc. as Monitor in the CCAA
proceedings.
After
reviewing a number of options, CannTrust's Board of Directors determined that
commencing CCAA proceedings is in the Company's best interests. The Company
hopes to exit CCAA protection well-positioned to rebuild its stakeholders'
trust and deliver high-quality, innovative products to its patients and
customers.
Pursuant
to the Initial Order, the Court has granted a stay of proceedings that will
allow CannTrust to, among other things:
●
Complete the remainder of CannTrust's
remediation plan for its Vaughan Facility without disruption and submit the
related evidence package to Health Canada;
●
Continue to work with Health Canada to
resolve any remaining Cannabis Act
compliance issues, with a view towards reinstating CannTrust's licenses for its
Niagara and Vaughan facilities and restoring operations;
●
Explore a CCAA plan of compromise or
arrangement as a means for addressing the multiple putative class actions and
other litigation brought against CannTrust in several jurisdictions, seeking to
resolve all of the claims and contingent claims against the Company in a single
forum; and
●
Facilitate the completion of the Board of
Directors' review of strategic alternatives (the "Strategic
Process"), including the solicitation, development and execution of any
potential sale or other strategic transaction involving CannTrust, whether in
addition to, or as an alternative to, a CCAA plan of compromise or arrangement.
Despite
the efforts by CannTrust's management and Board of Directors to preserve the
Company's cash liquidity while seeking to restore the Company to operations and
resolve the multiple litigations and other contingent claims facing the
Company, the Company's future remains uncertain. Without its cannabis licenses,
the Company has been unable to generate any meaningful revenue since June 2019.
The Company has not filed any financial statements subsequent to its interim
unaudited comparative financial statements for the three months ended March 31,
2019, which, together with its financial statements for the year ended December
31, 2018, are subject to restatement. Furthermore, the effects of the COVID-19
pandemic have exacerbated what were already difficult circumstances,
introducing potential delays in Health Canada's ability to review the Company's
applications for reinstatement of its Niagara and Vaughan licenses and making
it even more challenging for CannTrust to attract new financing or a strategic
partner.
CannTrust
is expending significant time and money pursuing the completion of its
remediation plan and defending the putative class actions against the Company
in multiple jurisdictions. There can be
no assurance that Health Canada will reinstate CannTrust's licenses or that the
Company's litigation will be resolved in the near term or on a basis that will
leave the Company with sufficient financial resources to resume operations. At
present, and in light of seeking CCAA protection, its reduced liquidity
position and the contingent claims it is facing, the Company does not intend to
devote additional time or money towards curing its public disclosure defaults
by completing and resuming the filing of required reports under Canadian and
United States securities laws. As of March 20, 2020, CannTrust had a cash
balance of approximately $145 million. If Health Canada elects to reinstate
CannTrust's cannabis licenses, it would take several months for the Company to
begin earning revenue and the Company would require significant working capital
to restore its operations and return to profitability. Similarly, there can be
no assurance that the Strategic Process will result in any transaction, and
there can be no assurance that the Strategic Process or the outcome of the CCAA
proceeding will provide any residual value for the benefit of holders of the
Company's Common Shares.
Trading
in CannTrust's common shares on the Toronto Stock Exchange and New York Stock
Exchange has been halted and the Company expects that, as a result of having
filed for protection under the CCAA, the Common Shares will soon be delisted
from trading on the TSX and NYSE. In addition, CannTrust anticipates that, as a
result of the Company's filing for protection under the CCAA, its pending
delisting by the TSX and NYSE, and its continuing default of its disclosure
obligations under applicable securities laws, provincial securities regulators
in Canada will issue a cease trade order to prevent any trading in the Common
Shares in Canada.
A
comeback hearing in respect of the relief granted pursuant to the Initial Order
will be scheduled within ten days.
Interested parties that wish to bring a motion at the Comeback Hearing
are required to provide notice to the affected parties prior to the Comeback
Hearing pursuant to the requirements set forth in the Initial Order.
Ignite
International Brands, Ltd. (CSE:BILZ) (OTCQX:BILZF), who
back in the start of March announced that it
has executed a licensing agreement with CannMart Inc., a leading online
provider of high quality cannabis products and accessories, operating as a
wholly-owned subsidiary of Namaste
Technologies Inc. (TSXV:N).
The Agreement
grants CannMart a non-exclusive licence to utilize certain IGNITE brand
trademarks on legal cannabis-based products in consideration for certain
royalty payments.
Pursuant to the
Agreement, CannMart will work with IGNITE’s quality control and product
development teams to source premium inputs, including flower and Cannabis 2.0
offerings, from Canadian craft cannabis producers for the IGNITE Products.
Under the Agreement, CannMart assumes all functions associated with
procurement, processing, and packaging of the IGNITE Products in its Health
Canada-licenced processing facility. In addition, CannMart will oversee the
sale and distribution of the IGNITE Products in Canada, leveraging its Canadian
trade channels. Pursuant to the Agreement, IGNITE will, on behalf of CannMart,
market the IGNITE Products in Canada.
“The IGNITE team
remains committed to delivering cannabis products to every market we target. We
firmly believe working with CannMart will provide quality product offerings and
a quicker route to market given CannMart’s competencies,” said IGNITE CEO, Dan
Bilzerian. “The IGNITE philosophy aligns with CannMart’s passion to deliver
innovative products through its global distribution channels.”
“CannMart delivers
a unique value-added proposition to brands,” said Curtis Heffernan, President
of IGNITE. “The agreement with CannMart will allow IGNITE to remain
laser-focused on expanding brand awareness to maximize its reach to Canadian
consumers.”
“CannMart continues
to demonstrate its ability to attract leading brands like IGNITE, to deliver
recognizable quality products to consumers,” said Meni Morim, CEO of Namaste
Technologies. “Namaste believes IGNITE is well known among our current customer
base and CannMart intends to leverage IGNITE’s brand recognition to drive sales
throughout its network of government partners and retailers.”
Ignite
International Brands, Ltd. also announced
that
it is expanding its partnership with UK manufacturer and distributor Taylor
Mammon to add new CBD products, including roll-ons, bath bombs, tattoo cream,
moisturizers, creams, serums and body oils which make up the exciting new
skincare product line. In conjunction with Taylor Mammon, IGNITE is also
expanding its existing range of tinctures to offer different levels of potency
and will also begin to offer 10ml CBD e-liquids for vape devices in the UK.
“It’s
important to us and our partners that we continue to innovate and grow the
IGNITE brand with new innovative products. We’re excited to be able to
introduce a new line of skincare products that we know will introduce the
IGNITE brand to a new audience,” said Curtis Heffernan, President of IGNITE.
“Our business relationship with Taylor Mammon has been a great one for us in
the past and we know that together we will continue to expand IGNITE globally.”
The
new IGNITE product line includes roll-ons in three flavours, bath bombs available
in relaxing and energizing scents, tattoo cream developed for before, during
and after getting a tattoo. A full skin-care line and topical line, new
tinctures available in new delicious flavours, as well as new E-Liquid flavors.
Investor
ideas reminds all listeners to read our disclaimers and disclosures on the
Investorideas.com
website and this podcast is not an endorsement to buy products or services or
securities. Investors are reminded all investment involves risk and possible
loss of investment
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#Solar / #Cannabis News: SinglePoint, Inc. (OTCQB: $SING) Files Full Year and Fourth Quarter 2019 Financial Results; @_Singlepoint_
#Solar / #Cannabis News: SinglePoint, Inc. (OTCQB: $SING) Files Full Year and Fourth Quarter 2019 Financial Results; @_Singlepoint_
Reports Record Annual Revenue of $3,343,833 and Record Gross Profit of $990,777 for the Full Year ended December 31, 2019
SinglePoint Revenue Growth 2017 – 2019
Financial Highlights:
· Full Year Revenue increased 189% to a record $3,343,833 million
· Full Year Gross profit increased 269% to a record $990,777 thousand
· Repaid Convertible note payable to investor (the "CVP Note") dated October 10, 2017
Operational Highlights:
· Completed acquisition of Direct Solar America ("Direct Solar") in May 2019
· Direct Solar strategically expanded coverage to multiple states.
· Direct Solar Residential Business Unit achieved profitability in 2019
· Added Commercial division to address emerging opportunities identified through strategic partnerships
· Transitioned to a fully reporting public entity
· Unveiled smokable hemp products at 2019 NACS show followed by the subsequent launch of our proprietary brand, 1606 Original Hemp
Phoenix, Arizona - March 31, 2020 (Investorideas.com Newswire) SinglePoint Inc. (OTCQB: SING) today reported audited financial results for the three and twelve months ended December 31, 2019. For the years ended December 31, 2019 and 2018, the Company had total sales of $3,343,833 and $1,154,671, respectively, representing an 189% increase in year over year gross revenue.
Read this news featuring SING in full at https://www.investorideas.com/CO/SING/news/2020/03311FinancialResults.asp
The primary driver of the revenue increase of$2,189,162 in revenues was due to the acquisition of Direct Solar in May 2019 representing six months of revenue through December 31, 2019. On a full-year unaudited pro forma basis Direct Solar America would have surpassed $4,000,000 in revenue as reported in the 2019 Annual Report. The Gross Profit was $990,777 for the year ended December 31, 2019, compared with a Gross Profit of $267,799 for the year ended December 31, 2018, representing a 269% increase for the year over year. The overall net loss decreased in 2019 as compared to 2018.
"The positive operational results in 2019 represent the commitment we have to our stakeholders to enhance revenues by executing on growth initiatives and acquisitions that we believe will continue to add value. We are ecstatic about the continued growth of SinglePoint and look forward to achieving significant growth through 2020. Through the acquisition of Direct Solar America, we have firmly established ourselves as a leading provider of residential solar concierge services, designed to assist customers with making the best choice based on their specific needs. Throughout 2019 and into 2020 Direct Solar has continued to grow revenue and expand its service footprint which now includes coverage in 25 states. Business development and expansion is continuing as contractors continue looking for solutions that increase their revenue and bottom such as those provided to them when they partner with the Direct Solar Residential Platform," according to Greg Lambrecht, Chairman and CEO of SinglePoint.
The success and rapid achievement of business unit profitability by the Direct Solar Residential Business Unit gave us confidence to support the creation of a separate business unit for commercial solar sales. The Direct Solar Commercial Business unit, established in the second half of 2019, quickly built a robust pipeline of small to mid-sized commercial deals that have the ability to generate immediate and long term revenue representing millions of dollars of combined annual and recurring revenue potential.
"I am extremely proud of the results driven by our senior management team in 2019. As a standalone entity, the Direct Solar America Residential Business Unit ultimately ended the year profitably, which is an incredible achievement for a start up in its first few months of operation. These profits were allocated to enable initial funding and startup costs for the Commercial and Capital Solar Business Units. As SinglePoint grows we will continue to seek out additional business opportunities internally and externally in the renewable energy sector," states Greg Lambrecht CEO SinglePoint.
In addition to the annual revenue growth results and operational improvements, the Company successfully re-paid a convertible investor note, (the "CVP Note") dated October 10, 2017, during the first quarter (Q1) of 2020. The Company and management will continue to find accretive ways to work with our investing partners to strategically eliminate outstanding notes in order to improve the balance sheet as we believe it is in the best interest of our shareholders. The Company’s fully reporting status will improve our ability to access the necessary growth capital through more traditional financing sources and it should be further enhanced by its entrance into multiple emerging business markets in conjunction with delivering consistent annual revenue growth as represented in the 2019 audited financial results.
About SinglePoint, Inc.
Founded in 2011 SinglePoint, Inc (OTCQB: SING) invests in and acquires brands and companies that will benefit from injection of growth capital and the sales and marketing expertise of SinglePoint. The company portfolio currently includes solar, hemp and technology applications. SinglePoint is working to grow the company to a multinational brand.
Connect on social media at:
Forward-Looking Statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Technical complications, which may arise, could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
Corporate Communication
More info on SING at Investorideas.com Visit: https://www.investorideas.com/CO/SING/
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. For Disclosure purposes SinglePoint Inc (OTCQB: SING) is a paid annual news and social media company on Investorideas.com. More disclaimer info:
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Monday, 30 March 2020
Investorideas.com - Cannabis Stock News: The Green Organic Dutchman (TSX: $TGOD.TO) (US: $TGODF) Receives Health Canada Licence Amendment for its Ancaster Processing Facility
Investorideas.com - Cannabis Stock News: The Green Organic Dutchman (TSX: $TGOD.TO) (US: $TGODF) Receives Health Canada Licence Amendment for its Ancaster Processing Facility
www.investorideas.com - news that inspires big ideas
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Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 391 (TSX: $HEXO.TO) (NYSE: $HEXO) (CSE: $IMCC.C) (CSE: $TGIF.C)
Investor
Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 391 (TSX: $HEXO.TO)
(NYSE: $HEXO) (CSE: $IMCC.C)
(CSE: $TGIF.C)
Delta, Kelowna, BC, March 30, 2020 (Investorideas.com Newswire)
www.Investorideas.com, a global news source covering leading sectors including
marijuana and hemp stocks and its potcast site, www.potcasts.ca release today’s podcast edition of cannabis news and stocks to watch plus insight
from thought leaders and experts.
Listen to the podcast:
Read this in full
at
Today’s podcast overview/transcript:
Good
afternoon and welcome to another episode of Investorideas.com
"Potcast" featuring cannabis news, stocks to watch as well as
insights from thought leaders and experts.
In
today’s podcast we are looking at a few public announcements.
HEXO Corp. (TSX:
HEXO) (NYSE:
HEXO) today
reported its financial results for the second quarter fiscal
2020 ended January 31, 2020.
“We
have continued our focus on improving our operations and expanding distribution
across Canada. Our strategy with
Original Stash has demonstrated that we can directly compete with the black
market,” said Sebastien St-Louis, CEO and co-founder of HEXO Corp. “The
industry continues to see challenges ahead, and following a strategic review of
the Company’s core and non-core assets we believe we have positioned HEXO to
meet these challenges head on.”
Gross revenue increased 23% to $23.8M from $19.3M in
Q1’20. Net revenue increased 17% to
$17.0M from $14.5M in Q1’20.
Adult-use cannabis shipped revenue in Q2’20 increased
21% to $24.4M from $20.2M in Q1’20. Net
adult use revenue increased 20% to $16.3M from $13.6M in Q1’20. The primary
driver of the increase in sales during the quarter was the launch of Original
Stash in Ontario, British Columbia and Alberta during the quarter, and the
increase volume sold in Quebec. Adult
use sales volume in Q2’20 increased 57% to 6,579 kg from 4,196 kg sold in the
prior quarter.
Gross adult-use revenue per gram equivalent decreased
to $3.49 in Q2’20 from $4.35 in Q1’20, reflecting the impact of the increasing
portfolio share of Original Stash, the Company’s value brand. The adult-use net revenue per gram equivalent
decreased to $2.47 in Q2’20 from $3.24 in Q1’20.
Gross margin before fair value adjustments for Q2’20
was $5.7M or 33% of net revenue from sale of goods, compared to $4.6M and 31%
in the prior quarter.
The Company incurred an write down on inventory of
$16.1M during Q2’20 compared with $23.0M during Q1’20. The write down was
realized on the Company’s inventory in comprised of the following;
●
Write down of surplus cannabis trim (trim
is primarily used for extraction purposes) and milled products in the amount of
$3.1M due to an excess of stock relative to the Company’s short-term demand for
cannabis distillate production; and
●
Write down of concentrated bulk purchase of
$11.8M, in part to an oversupply in the bulk product market, of which lowered
the value when compared to the contracted price. The bulk product was acquired through a supply
agreement, which is currently the subject of litigation and is alleged to be
void as it was negotiated in bad faith at prices well in excess of market.
●
Write down in the amount of $1.2M was
recognized due to sunk costs related to packaging reconfiguration.
Operating expenses increased to $281.5M compared with
$39.5M in Q1’20. Included in operating
expenses, are certain expenses which management believes are expenses that are
non-recurring or non-cash and related to significant changes in market conditions. Included in these expenses are:
●
Restructuring costs – During the quarter
the Company incurred restructuring costs in the amount of $0.3M associated to
the rightsizing of operations that took place in Q1’20.
●
Impairments of property, plant and equipment
and intangible assets - Subsequent to the end of the quarter, after completing
a strategic review of its cultivation capacity, the Company made the decision
to list the Niagara facility for sale.
As a result of the decision to sell, the Company undertook impairment
testing of the facility, its property, plant and equipment, and the intangible
assets acquired from Newstrike Brands Ltd.
The Company determined that an impairment loss of $138.3M was required.
●
Impairment of goodwill – As at January 31,
2020, the carrying amount of the Company’s total net assets significantly
exceeded the Company’s market capitalization. In addition, slower than expected
retail store roll outs in Canada and delays in government approval for cannabis
derivative products resulted in a constrained distribution channels which have
adversely affected overall market sales and profitability. As a result of these
factors, management performed an indicator-based impairment test of goodwill as
at January 31, 2020. As a result of this
assessment, the Company recorded an impairment in goodwill of $111.9M.
●
Realization of onerous contract – The
Company recorded a $3.0M realization as the result of an onerous contract which
is currently the subject of litigation.
When normalized for these non-recurring or non-cash
expenses related to significant changes in market conditions, the company
reports normalized operating expenses of $28.1M, compared with $35.1M in Q1’20.
A 21% decrease as the result of a decrease in marketing expenditures and headcount,
as the Company continues to reduce previous spending levels to refocus
operations on becoming adjusted EBITDA positive. When normalized for other
non-cash expenses the company reports normalized operating expenses of $16.1M,
compared to $23.9M in Q1’20.
Loss from operations for the quarter was ($289.4M),
compared with ($60.6M) in the prior period. Excluding non-cash write downs and
impairment charges in Q2’20, adjusted net loss was ($23.2M) compared with
($34.0M) in Q1’20.
IM Cannabis Corp. (CSE:IMCC), one
of the world's pioneering medical cannabis companies with operations in Israel
and across Europe, announced that
Focus Medical Herbs Ltd., a licensed medical cannabis producer in Israel, has
signed a binding three-year sales agreement for the sale of medical cannabis to
three pharmacies in Jerusalem operating under the Oranim Pharm and Medi Plus
banners. Focus Medical is one of eight original licensed producers in Israel
and has over 10 years of experience growing high quality medical cannabis in
the Israeli market. Focus Medical has an exclusive commercial agreement with
IMC to distribute its production under the IMC brand.
The
total value of the Sales Agreement is expected to result in approximately
CAD$15 million in revenue, with an expected gross margin of 50%.1
"IMC
has long been recognized as a premium medical cannabis brand and this sales
agreement reflects ongoing demand for quality products from well-known
producers. As the medical cannabis market transitions from direct sales by
licensed producers to a pharmacy model and with the government increasing the
number of indications that qualify for medical cannabis treatment, we expect to
continue to evaluate partnerships of this nature with leading pharmacies across
Israel," says Oren Shuster, Chief Executive Officer of IMC.
1933 Industries
Inc. (CSE:
TGIF) (OTCQX:
TGIFF), a vertically-integrated cannabis consumer packaged
goods company, announced that it
has begun its second harvest of cannabis plants from its cultivation facility
located in Las Vegas, marking the beginning of continuous harvests in Nevada.
"This
is an important milestone for our Company as we move into full production. We
have spent several months optimizing the new Las Vegas facility, enhancing our
genetics programme to develop varieties of strains and cultivars to meet the
demands of our consumers and we are pleased with our progress to date. With the
surge in demand during the COVID-19 pandemic, we are working closely with the
dispensaries and responding to our clients' needs. We will be utilizing the
current harvest for the production of our AMA branded concentrates and for our
licensed brands Blonde™ and Denver Dab Co.", remarked Mr. Chris
Rebentisch, 1933 Industries CEO. He added, "We are nimble and capable of
adjusting our production to meet the needs of our consumers, which gives us a
competitive advantage."
"We
have spent considerable time conducting genetics hunting and receiving valuable
feedback from the market will be key when selecting the best strains to develop
commercially. We are known for producing
some of the best concentrates in the market and we are working diligently,
testing new strains and ensuring that we are harvesting every two to three
weeks", said Mr. Ryan George, Director of Cultivation at Alternative
Medicine Association, the Company's cultivation arm. "We are also pleased
to report that we are growing DNA Genetics strains in every zone, with flowers
available in the coming weeks and months. The Jack Herer strain will be ready
for sale in approximately four months."
The
timing for harvesting cannabis flowers is critical to ensure quality and
consistency. Drying, lab testing and preparing the product for sale takes
roughly a month from harvest, meaning that product from this harvest will be
available in the market by the end of April. The Company's vertically
integrated model focuses on controlling the supply chain where appropriate.
Continuous harvests and steady-state production results in fewer purchases from
and reliance on third-party biomass, improved quality of input materials, more
consistent products and lower costs of production.
Tech
startup FlowerShop Media (FSM) is
helping cannabis brands adapt to the changing marketplace by providing
a platform to manage digital advertising campaigns.
In a climate of social distancing, CBD and THC brands will look to replace
conferences, trade shows and face-to-face marketing with ways to reach their
customers online and in their homes. Now more than ever, cannabis brands need a
way to navigate restrictive advertising regulations to market their products
across mainstream publishing sites.
BOLD, a
premium cartridge manufacturer, selected FSM as a cost-effective way to
specifically target CBD and THC processors and growers who purchase vape
products for their oils and extracts. With campaigns already underway, FSM is
delivering geo-targeted messaging to consumers based on where they live and a
separate ad to buyers for dispensaries. So far, the campaign has resulted in a
30 percent increase in website traffic and a spike in online sales.
“Prior
to FlowerShop Media, we relied on old-school outreach methods, such as trade
shows or going through distributors to grow our territory,” said BOLD Founder
& CEO Bill Rinehart. “Now we use FlowerShop’s digital ad platform to create
brand awareness for the exact market we want to target. We saw dramatic growth
in a short period of time using only digital ad campaigns targeting specific
dispensaries in new markets, and we’re looking forward to expanding
nationwide.”
Using
the FSM platform, cannabis advertisers can create, manage and optimize digital
advertising campaigns on devices such as desktops, mobile devices and connected
TV with ad formats that include display, mobile, video, native and digital
out-of-home. This solution enables CBD and THC companies and their agencies to
expand beyond trade publications and enthusiast sites by advertising on premium
publishing outlets, such as Hearst newspapers and magazines (i.e. Car and Driver, Popular Mechanics, Women’s
Health) and Gannett (i.e. USA Today
and 100+ daily newspapers). Advertising buyers can use FSM as a self-service
platform or as a managed service to help create and launch new campaigns.
“Our
goal is to make it easy for cannabis companies to advertise across Tier 1
publications,” said FSM CEO David Breckling. “Our direct relationships with the
largest group of publishers allow us to promote our customers’ products to
fresh, new audiences across major media and streaming services.”
FSM’s
underlying technology boasts a number of features that make it easy to
advertise, including scaling one ad design across multiple media. Moreover, it
removes a significant financial barrier that many small cannabis brands face
because it doesn’t require contracts to get started or a minimum spend to
launch campaigns.
FSM’s
easy-to-use self-serve platform and managed services supports advertising
buyers and agencies regardless of their depth of adtech experience. The
platform also offers a number of geo-targeting capabilities and complex
functionality for the more advanced users and advertising agencies.
Adtech
veteran Breckling founded FSM to fill a critical business need in the cannabis
space by offering a simplified advertising approach that navigates the
ever-evolving state-by-state cannabis advertising regulations. His team’s
combined experience in the adtech space delivers expertise to build brand
loyalty and help cannabis businesses become profitable. As the CEO and
co-founder of Phluant and EyeWonder Inc., Breckling has spent his career
building successful tech companies.
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