Investor
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Delta, Kelowna, BC, February 26, 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/02261VLNS-VFF-HOLL-AUSA.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, With momentum building for the use of psychedelic substances in the
treatment of mental illness, addiction and trauma, Vancouver-based Numinus Wellness Inc. is
now one of the first in-market, fully integrated
companies in the psychedelic space in North America.
Numinus
is an operating company at the forefront of the transformative change in
treating the growing prevalence of mental health issues and desire for greater
wellness. The company was created from the merger of Salvation Botanicals and
Numinus Wellness Inc. and aims to go public via an RTO with Rojo Resources in
Q1 2020, subject to exchange approval. Psychedelic therapies have been
designated breakthrough therapy status
by the FDA due to their promising therapeutic potential.
"While
we are excited about the future of psychedelics, these substances will not be
approved for recreational use; this is not cannabis," says Numinus CEO and
Founder Payton Nyquvest. "Psychedelics are therapeutic, where the
application of these substances will only happen in safe, controlled treatment
environments."
Through
Salvation Labs (a Numinus subsidiary), Numinus has a dealer's licence which
allows Numinus to test, possess, buy and sell MDMA, psilocybin, psilocin, DMT
and mescaline. Numinus is seeking to expand the licence to include activities
such as import/export, testing and R&D. The expanded licence will allow
Numinus to support the growing number of studies on the potential benefits of
psychedelic therapies through the supply and distribution of these substances.
Numinus
is currently operating a stand-alone centre offering patients integrative
health solutions to help heal, connect and grow. A purpose-built facility is
planned for Vancouver in 2020.
The
company's goal is to create and operate a network of wellness centres offering
a unique set of treatments that can be specifically developed for each
individual. In future and when approved for use by appropriate regulatory
bodies, Numinus aims to guide suitable candidates in the use of psychedelics.
Numinus would conduct these therapies working in partnership with various
health and research organizations.
Numinus
is led by Payton Nyquvest and Stacey Wallin, proven entrepreneurs and business
leaders who have benefitted from transformative therapies in their own lives.
The pair has built a strong network of executives, advisors and partners to
take Numinus to the market.
"The
societal costs of mental illness, addictions, trauma and unmet human potential
are much too high," Nyquvest says. "New approaches, new treatments
and new ways of thinking are required — solutions where the world of health
care and technology collide — to help individuals and communities heal,
discover meaning and make deeper connections."
Valens GroWorks
Corp. (TSXV:
VLNS) (OTCQX:
VLNCF)
reported its financial results for its fourth quarter and
fiscal year ended November 30, 2019.
Key Financial
Highlights of the Fourth Quarter and Fiscal Year 2019
●
Revenue increased to $58.1 million for the
fiscal year 2019. For the fourth quarter of 2019 revenue increased to $30.6
million, an 86.0% increase over the third quarter and above the high-end of the
guidance range announced on December 16, 2019.
●
Revenue of $1.25 per gram of input in the
fourth quarter of 2019, compared to $0.61 per gram of input in the third
quarter of 2019.
●
Gross profit increased to $41.4 million, or
71.2% of revenue for the fiscal year 2019. For the fourth quarter of 2019,
gross profit increased to $22.6 million, or 73.8% of revenue, compared to $12.8
million, or 77.8% of revenue for the third quarter of 2019.
●
Adjusted EBITDA(1) was $27.4
million for the fiscal year 2019. For the fourth quarter of 2019, adjusted
EBITDA was $17.7 million, or 57.7% of revenue, compared to adjusted EBITDA of
$9.8 million, or 59.4% of revenue, in the third quarter.
●
Strong balance sheet with $58.7 million in
cash and short-term investments and a net working capital position of $88.2
million as at November 30, 2019.
"In
Fiscal 2019 we added significant scale to our operations and became the largest
white label product development, manufacturing and third-party extraction
company in Canada," said Tyler Robson, CEO of Valens. "Our multi-year
extraction contracts with industry leading players positioned us as the partner
of choice in the industry and drove significant revenue, gross profit and
adjusted EBITDA growth. In the second half of 2019, we broadened our offering
to include white label product development and we now produce a broad portfolio
of safe, consistent and innovative products to help our partners build brands
and differentiate themselves in the market. These white label product
development initiatives contributed to record revenues in the fourth quarter of
2019 as new and existing customers pushed to roll out Cannabis 2.0 oil-based
products into the market. Our margins in the fourth quarter also remained
strong and were only slightly lower than our Q3 results. However, we do expect this type of margin
contraction to continue in the coming quarters as we build out our
infrastructure and execute on our strategic shift towards becoming a next
generation product company which offers increased opportunity and greater
EBITDA per input gram but a more conservative margin profile. This strategic shift is now well underway and
our white label contracts now outnumber our extraction contracts, and include
top-tier names such as BRNT, Shoppers Drug Mart and Iconic Brewing."
Hollister
Biosciences Inc. (CSE:
HOLL) (OTC:
HSTRF), a vertically integrated cannabis branding company
with products in 220 dispensaries throughout California, announced that
the Company signed a Letter of Intent on February 20th, 2020 to
acquire Venom Extracts, one of Arizona's premier extract brands and one of the
state's largest producers of award-winning medical cannabis distillate and
related products.
For the year ended
December 31, 2019, Venom Extracts reports having generated CDN$ 16.4 million in
revenue and CDN$ 2.48 million in EBIDTA from its product line of Cannabis
Concentrates, P.H.O Concentrates and Cartridges. Hollister cautions that
revenue and EBITDA figures have not yet been audited and are based on reports
prepared by Venom management. Though Hollister believes the figures to be
highly reliable, their audit will be part of the due diligence before closing.
The all stock
purchase price is anticipated to be CDN$ 20,000,000, with 70% to be paid
upfront and 30% to be paid upon milestone achievements. The acquisition is
expected to close by March 31, 2020 subject to normal course due diligence.
"Venom has established itself as a
leading extraction operation with a prominent brand in the Arizona
marketplace", said Carl Saling, Founder and CEO of Hollister Biosciences
Inc. "We feel this acquisition will
present a great deal of opportunity for synergy between Hollister and Venom,
providing avenues for both companies into the Arizona, California and
additional marketplaces for cannabis products.
Venom Extracts has a highly skilled and experienced management team with
a track record for operational excellence.
This transaction is highly accretive and represents a fundamental part
of the future growth of both companies."
Village Farms
International, Inc. (TSX:
VFF)
(NASDAQ:
VFF)
announced its
majority-owned joint venture for large-scale, low-cost, high-quality cannabis
production, Pure Sunfarms, has begun shipping branded, packaged dried cannabis
products to Alberta Gaming, Liquor & Cannabis ("AGLC"), the
provincial wholesaler of recreational adult-use cannabis products to private
retailers in Alberta and the only authorized online retailer in Alberta
(AlbertaCannabis.org). Pure Sunfarms expects its products to be available to
retail customers in Alberta beginning next week.
With
the launch of Pure Sunfarms' products in Alberta, Pure Sunfarms' products will
be available in three of Canada's four most populous provinces (Ontario,
British Columbia and Alberta) and accessible to nearly two-thirds of the
Canadian recreational cannabis market1.
Alberta
represents approximately 12% of Canada's population, however with a network of
more than 400 retail stores (by far the largest retail store network of any
Canadian province) generated 22% of
total retail trade cannabis sales (dollars) in Canada for the 12-month period
ended December 31, 20192, making it the second largest provincial
market for cannabis products in Canada.
As a result, Alberta has by far the highest per capita sales of legal
recreational cannabis amongst the four most populous Canadian provinces during
that same period.
"At
Pure Sunfarms, we aim to bring high-quality cannabis at an accessible price to
recreational consumers across Canada – that's why we are so excited to expand
our footprint into Alberta," said Mandesh Dosanjh, President and CEO, Pure
Sunfarms. "With the province's extensive network of licensed retail
outlets and strong retail sales, the Alberta cannabis market presents a
substantial opportunity for Pure Sunfarms as we continue to share our high-quality
BC bud with even more Canadians."
Pure
Sunfarms continues to advance discussions with other provincial distributors
for potential supply agreements to further expand its presence in the Canadian
cannabis market.
Pure
Sunfarms was also the top performing brand of dried flower by both kilograms
sold and dollar sales with the Ontario Cannabis Store (OCS) for the three-month
period ended December 31, 2019, achieving 13% market share (by kilograms sold).
For the same period, Pure Sunfarms' Afghan Kush was the top selling dried
flower product (by dollar sales) with the OCS and two of the top five selling
dried flower products (by dollar sales) with the OCS were Pure Sunfarms
products (Afghan Kush and White Rhino).
"Pure
Sunfarms' reputation for quality products that customers want at the right
price point is resonating well with Canadian consumers," said Michael
DeGiglio, CEO, Village Farms. "2020
promises to be a year of significant growth for retail cannabis sales across
Canada, and now, with access to nearly two-thirds of the Canadian population
and a thriving brand, Pure Sunfarms is well positioned to participate in this
market growth based on its leading market share performance."
Australis Capital
Inc. (CSE:
AUSA) (OTC:
AUSAF) announced that
Cocoon Technology, LLC is in the final phase of development and completing
testing for the platform's deployment and initial launch with Thrive Cannabis
Marketplace, Nevada's largest independently owned Cannabis Retailer, in April
2020. THRIVE has ordered 32 CocoonPod™ kiosks for their eight locations in
Nevada, starting with the pilot location at 2755 W. Cheyenne Ave. #103, North
Las Vegas, Nevada and will roll out to the other locations over the following
six months. Cocoon expects to generate $1.4 million in annual recurring net
revenue year one with net revenues exceeding $7.1 million over the four-year
exclusive term with THRIVE.
"Our
customers expect an elevated and streamlined experience when shopping at
THRIVE," said Mitch Britten, CEO of THRIVE. "A self-service option
provides customers an opportunity to experience the dispensary in an
interactive and innovative way while streamlining operations. Customers are
offered privacy, product education, recommendations, and loyalty offerings
while completing their transaction at their leisure."
"We're
excited to launch the Cocoon platform in Las Vegas," said Max Aceituno,
SVP, Marketing & Product Development at AUSA. "As the world's most
robust Platform-as-a-Service specifically designed for dispensaries, Cocoon
enables customers to research products, place orders, and make payments
directly through their desired point-of-interaction. THRIVE's high-traffic
locations are the perfect environment for the initial launch of this platform
and we're happy to collaborate with Mitch and team in crafting this unique
feature set."
Investor
ideas reminds all listeners to read our disclaimers and disclosures on the
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