Investor
Ideas #Potcasts; #Cannabis News and #Stocks on the Move; (CSE: $JUSH.C) (OTCXQ:
$JUSHF)
(CSE: $CURA.C) (OTCQX: $CURLF), (TSXV: $JWCA.V) (OTCQX: $JWCAF)
Delta, Kelowna, BC, February 24, 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/02241JUSH-CURA-JWCA.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 look at a few public announcements.
But
first, Cannabis Benchmarks®, a division of New Leaf Data Services, LLC, announced the
listing of three Canada Cannabis Spot Indexes (CBMKCCSI, CBMKCNLP, and
CBMKETAX), the first cannabis indexes that benchmark the wholesale price of
cannabis paid to Canadian Licensed Producers, supporting price discovery and
ultimately enabling the creation of tradable financial instruments.
The
indexes are calculated weekly using a proprietary cannabis index methodology
developed by Cannabis Benchmarks®.
●
Value is determined by the simple average
of assessed wholesale transactions for non-medical dry cannabis flower.
●
The indexes are a representation of the
average wholesale price paid across all provinces, both including and excluding
all excise taxes.
●
Cannabis Benchmarks' methodology includes
working directly with market participants from both the supply and demand
sides, including analysis of public and private data, to assess the average
wholesale price paid each week.
These
reference price benchmarks provide critical pricing data that support decision
making
related
to buying and selling at fair market price, asset and equity valuation,
compliance with accounting standards, and commodity hedging and risk
management.
Cannabis
Benchmarks® is disseminating this index data through Nasdaq's
GIDS service to aid in
providing maximum transparency to the marketplace. GIDS provides data
recipients, either directly or through a third-party distributor, the opportunity
to reduce network, administrative and data center costs by taking one data
feed, rather than many.
"Since
the Canadian adult use market opened in October 2018, industry participants -
including cultivators, processors, retailers, investors and debt and equity
analysts - have been seeking price transparency to analyze and navigate a
dynamic market currently characterized by swiftly changing market
fundamentals," said Jonathan Rubin, CEO of NLDS. "We are pleased to
be using Nasdaq's GIDS to offer the market an independent reference benchmark
to support strategic, operational and investment related decisions."
"The
Cannabis Benchmarks® Indexes are a breakthrough for market participants in need
of fair and transparent price benchmarks to better understand this emerging
commodity" said Rubin. "These indexes will become increasingly
important to physical and financial industry participants as legal cannabis
markets expand the need for trading and risk management."
Jushi Holdings Inc.
(CSE:
JUSH) (OTCXQ:
JUSHF) a globally-focused, multi-state cannabis and hemp
operator, announced that
its wholly owned subsidiary, Jushi Inc, has closed on its previously announced
acquisition of the remaining 25% interest in TGS Illinois Holdings, LLC
("TGSIH"). Jushi Inc now owns 100% of TGSIH, which through its
operating subsidiary, TGS Illinois, LLC, owns and operates two cannabis
dispensaries – one in Sauget, IL and one in Normal, IL. Each dispensary is
eligible to seek approval from the Illinois Department of Financial &
Professional Regulation ("IDFPR") to become an adult-use dispensary
and to open a second retail location.
"We
remain encouraged by the strength of demand in Illinois as evidenced by the
State's announcement that total cannabis adult-use sales during its first month
of legalization generated nearly $40 million in revenue. The recent adult-use
legalization in Illinois has brought increased consumer demand to this
previously medical only state. We believe that the Illinois market is at an
inflection point, and that this acquisition positions Jushi for significant
growth and market share gains," commented Jim Cacioppo, Chairman and Chief
Executive Officer of Jushi. "Jushi remains focused on expanding and
building out its footprint in limited license states such as Illinois and
Pennsylvania, two states in which we have confidence in their sustained market
growth opportunity."
The
two existing dispensary locations currently operate as The Green Solution but
will transition to BEYOND/HELLO branding during the year, and are located at
2021 Goose Lake Road, Sauget, IL 62206 and 501 West Northtown Road, Normal, IL
61761.
Since
Illinois's adult-use legalization went into effect January 1, 2020, the Sauget,
IL dispensary was approved by the IDFPR to conduct adult-use sales. The Normal,
IL dispensary is eligible and will seek similar IDFPR approval for adult-use
sales. The Company also plans to exercise its option to expand from two to four
dispensaries, subject to regulatory approval. The Company plans to commence
adult-use sales at both locations following pre-commencement preparations and
completion of outstanding regulatory approval.
James
E. Wagner Cultivation Corporation (TSXV:
JWCA) (OTCQX:
JWCAF), a premium cannabis brand focused on producing clean,
consistent cannabis grown using its advanced and proprietary GrowthSTORM™
aeroponic platform, reported
financial results for its fiscal first quarter ended December
31, 2019. Dollar amounts are in Canadian dollars.
Fiscal
Q1 2020 Corporate Highlights
●
Received licensing amendment from Health
Canada to double JWC2’s licensed production capacity to 44,500 square feet,
which would be an annualized production capacity of more than 9,000 kilos of
dried cannabis.
●
Average yield per plant increased to 262
grams in the first quarter of 2020, versus the average yield of 210 in the same
year-ago period.
●
Launched plans to open a 2,000 square farm
gate retail store adjoining the company’s JWC2 flagship facility, representing
a new direct-to-consumer sales channel for the company. The store is
anticipated to be the Waterloo region’s first retail cannabis store located on
a licensed cultivation site, and will serve the area’s 500,000 inhabitants. In
January, the company submitted a cannabis retail operator license application
to the Alcohol and Gaming Commission of Ontario.
●
Received a license amendment from Health
Canada for the sale and production of cannabis extracts, edibles and topicals
at the company’s JWC1 facility, allowing JWC to add kief, rosins, and pre-rolls
in various quantity formats to its product portfolio.
●
Introduced four new cannabis strains grown
using the company’s advanced GrowthSTORM™ aeroponic platform: King Tut, Dark
Helmet, West Coast Sour Diesel, and Hash Plant.
●
Engaged Kindred Partners to serve as the exclusive broker for JWC adult-use
cannabis products in Canada.
●
Entered a supply and manufacturing
agreement with CannaCure Corporation, a wholly-owned subsidiary of Heritage Cannabis Holdings, whereby
CannaCure formulates and fills JWC’s vape cartridges, for both recreational and
medical cannabis markets.
●
Began collaboration and research trial with
Fluence Bioengineering for the
performance testing of Fluence’s VYPR 2p Broad Spectrum LED lighting solution.
The trial will assess if the lighting solution can further improve JWC’s
already high level of energy efficiency and help to further optimize
cultivation performance.
Financial
Highlights
●
Revenues totaled $264,000 in fiscal Q1
2020, down 74% sequentially from $1,025,000 in fiscal Q4 2019, and compared to
$550,000 in fiscal Q1 2019. The decline in revenue was due primarily to
management’s response to market conditions and the strategic decision to defer
sales to the second quarter to maximize the revenue potential and gross margin
of produced goods. This decision was reflected in Unrealized Fair Value on
Finished Goods in the amount of $2.4 million, as compared to none at the end of
the previous quarter.
●
Loss and comprehensive loss for fiscal Q1
reduced 48% to $1.2 million or $(0.01) per share.
●
Gross margin totaled $1.8 million, compared
to $3,000 in in the same year-ago quarter.
●
Operating expenses in fiscal Q1 2020 were
$2.5 million, a 46% decrease from fiscal Q4 2019, and a 5% increase from fiscal
Q1 2019.
●
Received private placement equity funding
of approximately $1 million.
●
Secured a $4 million loan facility
available in two tranches, with $2,850,000 received during the first quarter
and the remaining portion received in the subsequent quarter.
●
Obtained convertible security funding for
up to $10 million available in two tranches, with $2 million drawn in the
subsequent quarter and the remainder available subject to mutual agreement with
the lender.
Management
Commentary:
“During our first
fiscal quarter of 2020 we made tremendous strides in many areas of our business
designed to better position JWC for success in the new year. We focused our efforts on deriving the
maximum value from all available resources and avenues, including our
biological assets, branded products, key partnerships, proprietary technologies
and newly established sales channels.”
“Our financial
results for the quarter demonstrated that despite our strengthening platform,
we were not immune to the challenges of an industry that is still evolving and
striving for balance. While revenue declined substantially, this was largely
purposeful, reflecting what we see as temporary conditions that are now set to
pivot and launch in the opposite direction in the current quarter.”
“During fiscal Q1,
we implemented a strategic response to the market. A combination of number of
factors, primarily oversupply and the lack of legal sales outlets continued to
drive the illicit market. As a result, our wholesale partners were unable to
buy our products at historical prices, driving gross margins into the negative
territory. So, we made the strategic decision to hold back on sales and
preserve our biological assets until the oversupply subsided and the
recreational market opened.”
“Our ability to
attract various sources of capital even in this challenging environment
demonstrated our strong value proposition and gave us the flexibility to pursue
our strategy. We dedicated our resources to the development of our Cannabis 2.0
products, positioning ourselves to capture the anticipated growth in the
recreational market in the current quarter. This has also included the
formation of a variety of new partnerships and obtaining key regulatory
approvals.”
“Experts are now
predicting a three times growth in industry-wide sales in 2020, as the number
of retail stores steadily increase as a result of eased regulations and the
oversupply subsides. We expect this to support the sale of significant volumes
of our products in Q2 and beyond.
“Our primary focus
will remain on becoming a highly successful cultivator and seller of clean,
consistent cannabis. Our financial outlook is unchanged for fiscal Q2 and Q3,
as we reiterate below. Combined with our industry-leading yields and lower cost
of production due to our unique GrowthSTORM™ system, we believe we can achieve
and sustain highly favorable margins and strong growth over the long term.”
Curaleaf Holdings,
Inc.
(CSE:
CURA) (OTCQX:
CURLF), a leading vertically integrated cannabis operator in
the United States, has
been approved as a Clinical Registrant in Pennsylvania
by the Commonwealth's Department of Health, Office of Medical Marijuana. Under
this designation, the Company will be permitted to open a cultivation and
processing facility and up to six dispensaries, under the Commonwealth's
medical marijuana research program.
As
a Clinical Registrant, Curaleaf will support research initiatives into the
potential medical benefits of cannabis by providing medical cannabis, expertise
and distribution to patients participating in studies.
In
announcing the awards of the clinical registrant licenses, Dr. Rachel Levine of
the Pennsylvania Department of Health remarked; "Pennsylvania remains on
the forefront for clinical research on medical marijuana. This research is
essential to providing physicians with more evidence-based research to make
clinical decisions for their patients. It is the cornerstone of our program and
the key to our clinically based, patient-focused program for those suffering
with cancer, PTSD and other serious medical conditions."
Joe
Lusardi, Chief Executive Officer of Curaleaf, said, "We thank the
Pennsylvania Department of Health for approving Curaleaf to participate in this
vital research program. The Pennsylvania State Legislature mandated research as
a component of its medical cannabis program, setting it apart from the rest of
the nation. Curaleaf has always been focused on high-quality cannabis products,
as well as superior patient care and education. We look forward to contributing
to medical research that will ultimately benefit not only the residents of the
Commonwealth, but the entire country."
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ideas reminds all listeners to read our disclaimers and disclosures on the
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