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U.S. House Plans September Vote on the MORE Act, Massachusetts Regulators Allow Companies to Retest and Sell Quarantined Vaping Products: Week in Review

U.S. House Plans September Vote on the MORE Act, Massachusetts Regulators Allow Companies to Retest and Sell Quarantined Vaping Products: Week in Review

Mission dispensary celebrated the grand reopening of its Chicago store on July 31, two months after it was ransacked by dozens of people in just one of several incidents across the country of looters targeting cannabis businesses amid nationwide protests over the police killing of George Floyd.

RELATED: UPDATED: Cannabis Businesses Targeted in Looting and Robberies

Kris Krane, president and co-founder of Mission’s parent company 4Front Ventures, told Cannabis Business Times in June that it appeared to be a planned attack, as security footage captured several cars pulling up to the store at one time. Thirty to 40 people used crowbars and baseball bats to smash windows and doors to break into the South Chicago dispensary, Krane said.

In a follow-up interview with Cannabis Business Times, Krane says there weren’t many surprises as they worked to repair damages with contractors and construction crews, replace lost inventory and reopen the medical and adult-use store. But the process took time, especially replacing custom-built components like the security doors. They also made upgrades throughout, he says, adding “multiple layers of security.”

Krane also commended city and state officials for being responsive during the inspection process, and inspectors for being clear and straightforward with recommendations.

“We work in a lot of states, and trying to go through an inspection process in many states is a challenging process,” Krane says. (Mission operates stores in Massachusetts, Michigan, Arizona, Pennsylvania and Maryland, as well as Illinois.) “It takes forever to get somebody out there, inspectors come through and can be adversarial in some cases, and getting responses from state can be challenging in some cases. But [in Chicago and Illinois,] the city and state were a pleasure to work with. Not to say they rubber stamped us, but they were really responsive and got back to us quickly.”

Once known as the “South Shore” store, Mission unveiled a name change during its reopening celebration, as well, to reflect more accurately its location in the South Chicago neighborhood.  

“We were listening to the community. We had people who took offense to [the South Shore name] and it wasn’t meant to be offensive,” Krane says. “We wanted to show we are committed to the South Chicago community and to this commercial corridor on Commercial Avenue.”

This photograph taken during the clean up efforts at Mission dispensary in Chicago has been enlarged and will be prominently displayed in the South Chicago store. Photo courtesy of Mission. 

Mission continued to pay “a substantial portion” of its nearly 50 employees’ salaries and pay while the store was closed for repairs, Krane says.

“We thought it was really important to make sure that these folks stayed paid, particularly with everything going on right now with unemployment and with coronavirus … and the fact they were put through a difficult time with the break-in itself,” Krane says, adding that only one staff member left but for unrelated reasons. “We wanted folks back. … Some of them would have been put in pretty dire hardship. Even though this was not something covered by insurance, so it was a financial hit for the company, we felt it was the right thing to do to make sure these folks continued to get paid during this down time. And thankfully, we were rewarded by not losing any employees.”

Local and state elected officials joined the celebration July 31, and Krane says the CEO of a nearby dispensary sent him a note to wish him well on the reopening.

“It was really heartwarming to see the city and the state treating us as an important member of the business community and as an important element of the rebuilding of the community that has been so devastated by break-ins and looting,” Krane says, adding that some businesses, especially locally owned companies, are still boarded up and have not reopened. “We’ve received well wishes from folks throughout the industry when the store was hit. We had offers from folks to make sure we had product available when we opened. Some even offered [product] on consignment or discounted rates to make sure we’re back up and running.”

Customers showed up on opening day, too. Although Mission has been operating primarily with an online-only ordering system during the coronavirus pandemic, the company allowed customers to purchase products in the store over the weekend. Customers were required to wear a mask, and the Mission team monitored lines to be sure people were adhering to social distancing policies. At times, the wait was about an hour the first day of sales.

“By and large it was pretty festive. A lot of people came up and said, ‘I’m glad you’re back,’” Krane says. “There were a lot of people who hadn’t been served for a while, and they may not be familiar with our online menu, so we wanted to be able to serve everybody we could [opening weekend]. …We also had a taco truck set up and gave out free tacos.”

Krane says although supply continues to be a challenge in Illinois, especially for operations that are not vertically integrated, he’s hopeful that as cultivators scale up and more dispensaries come online, more progress will be made. In July, the state recorded another record month for sales, with $61 million in the adult-use market alone, up 28% from the June’s $47.6 million.

“The [sales] numbers so far have been terrific,” Krane says. “We think that legalization has proven itself to be successful. We’re starting to see the first evidence that legal cannabis may be somewhat recession proof.”

Published at Sat, 08 Aug 2020 12:30:00 +0000

Canada Will Let Terminally Ill Patients Use Psychedelic Mushrooms For End-Of-Life Care

Canada Will Let Terminally Ill Patients Use Psychedelic Mushrooms For End-Of-Life Care

Four cancer patients in end-of-life care will be become the first people in decades to legally possess and consume psilocybin mushrooms in Canada after a landmark decision Tuesday by the country’s minister of health.

The patients petitioned Health Minister Patty Hajdu back in April for exemptions from the country’s laws against psilocybin in order to use psychedelic mushrooms as part of psychotherapy treatment. On Tuesday afternoon, Hajdu officially granted the patients’ request, the nonprofit TheraPsil, which assisted with the application, announced.

The approvals mark the first publicly-known individuals to receive a legal exemption from the Canadian Drugs and Substances Act to access psychedelic therapy, Therapsil said, and the first medical patients to legally use psilocybin since the compound became illegal in Canada in 1974.

“This is the positive result that is possible when good people show genuine compassion. I’m so grateful that I can move forward with the next step of healing,” one of the patients, Thomas Hartle, said in a statement Tuesday.

Read More

Published at Wed, 05 Aug 2020 17:35:11 +0000

ManifestSeven Reports Second Quarter 2020 Financial Results

ManifestSeven Reports Second Quarter 2020 Financial Results

ManifestSeven, California’s first integrated omnichannel platform for legal cannabis, today announced its financial results for the second quarter ended May 31, 2020. The results follow the Company’s receipt last month of conditional approval for the listing of its common shares on the Canadian Securities Exchange (“CSE”). All financial information in this press release is provided in U.S. dollars unless otherwise indicated.

Financial Highlights:

  • Revenue increased 116% year-over-year and 23% sequentially to $5.0 million.
  • Gross profit increased 216% year-over-year and 40% sequentially to $1.8 million.
  • Gross margin was 35.1% of revenue, up from 24.0% of revenue for the second quarter ended May 31, 2019, and 30.8% of revenue for the first quarter ended February 29, 2020.
  • Net loss decreased 64% year-over-year and 79% sequentially to ($1.1) million.

Operational Highlights:

  • The Company achieved robust growth across all of its core operating segments, demonstrating growing demand for M7’s distribution, delivery, and retail services despite the impact of COVID-19.
  • M7 significantly expanded the scope of its distribution coverage of California, with the number of licensed retailer accounts serviced by the Company’s distribution division totaling 211 as of May 31, 2020.
  • The Company increased its retail presence in core markets throughout California, with the number of customers in California serviced by M7’s delivery and retail division increasing 268% year-over-year.
  • M7 successfully implemented a targeted cost reduction program focused on non-core assets and operations without materially impacting its ability to generate revenue, resulting in a 31% sequential reduction in operating expenses and advancing the Company on its pathway to net profitability.

Management Commentary:

“We embarked upon a new quarter just as the COVID-19 crisis began to express itself around the world and seemingly without any warning, bringing with it an unprecedented operating environment and capital markets landscape,” said Sturges Karban, M7’s Chief Executive Officer. “We focused our efforts during the quarter primarily on two core missions: preserving our longstanding trend of sequential top-line growth, while also aligning our cost structure to accelerate the Company’s efforts to achieve net profitability.”

Mr. Karban added, “We are proud to announce that, as borne out by this quarter’s financial results, we have successfully delivered on both of these critical objectives as we look toward our impending public listing on the CSE later this summer. In particular, we achieved significant growth in our delivery operations during this three-month period, as consumers adjusted their buying behavior to comply with statewide shelter-in-place orders, resulting in the acquisition of a considerable number of new customers who discovered and utilized our delivery services during the COVID-19 crisis for the first time.”

“While the extraordinary global events that shaped the first half of this calendar year have presented new and unexpected challenges, it is impossible to ignore how the same events have also energized and validated the cannabis industry at large, for example, by reminding legislators at every level that legal cannabis constitutes a growing force within state and local economies, a robust engine for legitimate job creation, and a product category that will sustain consumer demand even in the face of the most economically constraining contexts. In many ways, COVID-19 has proven that legal cannabis is here to stay—and, after successfully persevering through the last several months, so is M7,” concluded Mr. Karban.

Summary Financial Results:

Three Months Ended

% Change

May 31,
2020

February 29,
2020

May 31,
2019

Sequential

Year-Over-
Year

Revenue

$

4,994,711

$

4,064,655

$

2,310,484

23

%

116

%

Gross Profit

$

1,753,884

$

1,252,182

$

554,969

40

%

216

%

Gross Margin

35.1

%

30.8

%

24.0

%

14

%

46

%

Operating Expenses

$

3,783,003

$

5,452,383

$

4,328,065

(31

%)

(13

%)

Net Income (Loss)

($

1,080,924

)

($

5,095,913

)

($

3,025,975

)

(79

%)

(64

%)

ABOUT MANIFESTSEVEN:

ManifestSeven is the first integrated omnichannel platform for legal cannabis, merging compliant distribution with a retail superhighway. M7, with offices in Commerce and Irvine, California, services the needs of lawful operators across the supply chain, from the cultivator to the consumer, through an expansive network of four facilities stretching from the San Francisco Bay Area to San Diego. M7 further augments its business-to-business value proposition with a growing portfolio of owned and operated retail operations located in major metro markets, including brick-and-mortar dispensaries, local on-demand delivery services, e-commerce, and subscription offerings.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS:

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs and assumptions regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. This forward-looking information is based on certain assumptions made by management and other factors used by management in developing such information. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in its entirety by this notice.

Copyright Business Wire 2020

Source: Business Wire (August 5, 2020 – 9:14 AM EDT)

News by QuoteMedia
www.quotemedia.com

Published at Wed, 05 Aug 2020 14:05:59 +0000

Five Cannabis Stocks for the Win (CURLF, GTBIF, TCNNF, SGMD, CRLBF)

Five Cannabis Stocks for the Win (CURLF, GTBIF, TCNNF, SGMD, CRLBF)

It’s not a mystery where to find strong growth. As the bull market rages on, driven by extreme monetary and fiscal policy support amid historic challenges, the only way for investors to truly lose the game is to not play. Just about anything else has been working.

But the chapter ahead will likely take a bit more nuance. The division between the pandemic plays and the rest of the market is obvious. And money managers diversifying between the two are doing well. But it’s not easy to find opportunities that have a viable long-term growth thesis but are still trading at a strong value relative to the market.

One area that could become of increasing interest is in the cannabis space, where the long-term growth outlook is tremendous, but flows have yet to surge into the space. Most cannabis plays are still trading at 1-2x sales despite forward topline growth forecasts above 20% over the coming four quarters.

That’s a disposition that is increasingly rare.

With that in mind, we take a look at five cannabis plays that are actively traded and continue to post strong performance data while making significant investments at a strong ROI, including: Curaleaf Holdings Inc (OTCMKTS:CURLF), Green Thumb Industries Inc (OTCMKTS:GTBIF), Trulieve Cannabis Corp (OTCMKTS:TCNNF), Sugarmade Inc (OTCMKTS:SGMD), and Cresco Labs Inc (OTCMKTS:CRLBF)

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the launch of Curaleaf Sublingual Tablets in Florida. These cube-shaped, berry-flavored bites will provide the state’s medical patients with a discreet, sugar-free yet fruity alternative form of medication.

According to the release, Curaleaf’s new Sublingual Tablets, which will be in 30-piece jars, contain 5mg of high-quality cannabis oil per piece, which allows patients to manage their treatment plan with confidence and ease. Each bite, which is made to be ingested orally or sublingually, is translucent in color and features a refreshing “Arctic Berry” flavor. The new product will be sold at all of the Company’s 28 operating dispensaries in Florida with a phased roll-out between August 8th – August 20th. Limited quantities will be released to pre-existing loyalty patients beginning tomorrow, July 30th.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

Curaleaf Holdings Inc (OTCMKTS:CURLF) also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

Green Thumb Industries Inc (OTCMKTS:GTBIF) recently announced that it opened Essence South Durango, on June 27. This has been one of the fastest growing MSO’s in the wider cannabis space.

According to the release, this is Green Thumb’s fifth Essence store in the Las Vegas area and 48th retail location in the nation. Profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry.

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

Green Thumb Industries Inc (OTCMKTS:GTBIF) markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of its latest storefront: Tarpon Springs will be home to the Company’s 53rd dispensary in the state of Florida and 55th nationwide.

According to the release, situated next to Lake Tarpon, the dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis throughout the state. It also joins the Company’s 52 other Florida dispensaries, including those in nearby New Port Richey, Clearwater, and Tampa.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

Trulieve Cannabis Corp (OTCMKTS:TCNNF) distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

Sugarmade Inc (OTCMKTS:SGMD) is in the process of expanding into the LA area for its BudCars cannabis delivery business. This is likely to be a strong source of new strategic growth for a company that has already been posting sequential monthly growth above 30% on the topline for several consecutive months after making its flagship investment in BudCars.

At this point, based on recent disclosures from the company, we have a clear sense that, not only is the first LA location on track and simply awaiting some factors no doubt slowed by the pandemic – city council isn’t exactly on vacation right now. Crisis mode is the standard setting for most administrative affairs in local government around the country right now. However, the other key piece here is that the second LA BudCars location is ahead of schedule. That’s perhaps even more important here.

Sugarmade Inc (OTCMKTS:SGMD) also recently issued a mid-month performance update for the month of July, which was on pace to set multiple new Company performance records at the time for sales, gross profits, and total customer orders.

According to the release, as of July 14, the Company is now on pace to meet or exceed its target of $650,000 in total sales in July, with well over 5,000 individual customer orders likely this month, suggesting that sequential month-over-month topline growth will be at or above the Company’s target 30% level.

“Our BudCars Sacramento hub continues to demonstrate accelerating growth that suggests we still haven’t really found the ceiling here in terms of period-over-period upside potential,” commented Jimmy Chan, CEO of Sugarmade. “Ultimately, this is gratifying to see because we have taken a unique approach to retail cannabis product distribution.”

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

Cresco Labs Inc (OTCMKTS:CRLBF) just announced additional actions in board refreshment and corporate governance to further strengthen its leadership in the cannabis industry, including its move to appoint Carol Vallone.

According to the release, Cresco has appointed Carol Vallone to its board of directors, effective immediately. Ms. Vallone is a well-known business leader, former CEO, and corporate board director, with a strong track record in launching, scaling, and managing global companies… In the past, Ms. Vallone served as President and Chief Executive Officer of leading E-learning companies including WebCT Inc., where she grew the online learning company to cover almost two thousand institutions in seventy countries. She has also served on multiple boards at leading non-profit healthcare, public financial services, and e-commerce organizations.

CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.

Cresco Labs Inc (OTCMKTS:CRLBF) operates a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Tue, 04 Aug 2020 05:33:19 +0000

Weed Edibles Have Sold Really Well During The Pandemic

Weed Edibles Have Sold Really Well During The Pandemic

The communal experience of cannabis, something that has always been closely linked to joints and vapes, has now been put on an indefinite pause. Edibles to the rescue!

Predictions about marijuana use during the pandemic abounded. Once businesses and buildings started to close, different states declared that cannabis is an essential business. People rightly assumed that times of stress are great times to get high, whether consumers were seasoned cannabis users or not.

Opinions varied when discussing inhaled cannabis and its impact on the pandemic. While some people claimed that joints would be discarded due to the lung irritations they could produce, others said that vapes would be making a comeback, even if they struggled throughout 2019 with a mysterious lung illness.

“As restrictions are lifted, we expect a pent-up demand for cannabis products that can be conveniently used in conjunction with outdoor activities,” Tom Brooksher, CEO of Clear Cannabis, told Forbes.

Read More

Published at Fri, 31 Jul 2020 16:39:02 +0000

U.S. House Approves Federal Protections for State-Legal Cannabis Businesses, Maine Expects Adult-Use Sales to Launch This Year: Week in Review

U.S. House Approves Federal Protections for State-Legal Cannabis Businesses, Maine Expects Adult-Use Sales to Launch This Year: Week in Review

With Maine’s first adult-use cannabis cultivators, manufacturers and testing labs expected to open this fall, the Office of Marijuana Policy (OMP) anticipates that adult-use sales will launch by the end of the year, according to the Portland Press Herald.

The OMP delayed its planned June launch due to the COVID-19 pandemic, but now the office’s director, Erik Gundersen, says that licensing the supply chain will give the state’s adult-use industry time to grow, manufacture and test products for Maine’s first recreational dispensaries, the news outlet reported.

Gundersen expects the first adult-use cannabis sales taxes to roll in sometime in the second quarter, which ends in December, according to the Portland Press Herald, and the delayed market launch means the state will likely fall short of the projected $84 million in retail sales during fiscal year 2021.

However, the volume of license applications indicate that the state will reach the predicted $118 million in adult-use sales in fiscal year 2022, the first full year of operations, the news outlet reported.

As of July 28, the OMP had received 342 adult-use cannabis business applications, with 27 now in the final phase of licensing, according to the Portland Press Herald. Of the remaining applications, 151 have a conditional state license and are awaiting local approval, and 164 are still awaiting conditional approval from the state, the news outlet reported.

The state will not issue final adult-use dispensary licenses until a testing lab is operational, and according to the Portland Press Herald, four labs are considering entering the market, although only two are close to obtaining all the required permits to begin operations.

Published at Sat, 01 Aug 2020 12:00:00 +0000

Emerald Health Therapeutics and Quinto Resources Enter into Share Purchase Agreement for Sale of Quebec Cannabis Business

Emerald Health Therapeutics and Quinto Resources Enter into Share Purchase Agreement for Sale of Quebec Cannabis Business

Emerald Health Therapeutics, Inc. (TSXV: EMH)  (“Emerald”) and Quinto Resources Inc. (“Quinto”) (TSXV: QIT) today announced that they have entered into a share purchase agreement dated July 30, 2020 (the “Agreement”) in respect of the sale of Emerald’s wholly-owned subsidiaries, Verdélite Sciences, Inc. (“Verdélite Sciences”) and Verdélite Property Holdings, Inc. (“Verdélite Property” and, together with Verdélite Sciences, the “Subsidiaries”). The Subsidiaries together own and operate a premium 88,000 square foot craft cannabis production indoor facility (the “Facility”) in St. Eustache, Québec.

Pursuant to the Agreement, Quinto will purchase all of the issued and outstanding shares of the Subsidiaries in consideration for a cash purchase price of $21,000,000, subject to a 90-day working capital adjustment and certain other adjustments (the “Transaction”). The Agreement was negotiated at arm’s-length. Closing of the Transaction is anticipated to occur on or before August 31, 2020.

As a result of the Transaction, the Subsidiaries will become wholly-owned subsidiaries of Quinto and Quinto will continue the business of the Subsidiaries. Following closing of the Transaction, Emerald will continue to sell its own products into the Québec market, subject to certain limited restrictions, and retains exclusive rights to its recently launched SouvenirTM brand.

“We are proud of what we built in Québec, which is a sophisticated cannabis growing operation with a competent and motivated team. However, in alignment with our strategic plan, we see benefits in consolidating our asset base and are pleased to have the opportunity to sell this facility and to see a continuing opportunity for our staff at Verdélite,” said Riaz Bandali, CEO, Emerald Health Therapeutics. “Upon closing this transaction, the resulting capital will significantly improve our balance sheet and still leave us with a British Columbia operational base with an excellent premium growing facility in Richmond, which recently completed its first full quarter of full production and sales, our R&D, processing and medical focused facility in Victoria, and a 41.3% stake in our Delta-based Pure Sunfarms joint venture, one of the best performing cannabis production assets in Canada.”

Quinto is a Canadian public company with its common shares listed for trading on the TSX Venture Exchange (the “TSXV”) under the symbol “QIT”. The Transaction will constitute a change of business for Quinto under the rules of the TSXV – please see “The Transaction“, below. As a result, Quinto will require the approval of its shareholders to complete the Transaction, and has called a shareholder meeting for August 31, 2020.

The Subsidiaries

Verdélite Sciences is a company incorporated under the Canada Business Corporations Act. Verdélite Sciences became a licensed producer on January 12, 2018. Verdélite Property is a company incorporated under the Québec Business Corporations Act, which acquired the Facility on February 9, 2017. On May 1, 2018, Emerald acquired 100% of the issued and outstanding shares of the Subsidiaries from the founding group.

Verdélite Sciences holds a standard processing licence from Health Canada with respect to the complete growing and processing area at the Facility permitting it to sell and distribute packaged, branded dried cannabis products directly to provincial/territorial wholesalers and authorized private retailers. Cultivation commenced at the Facility in late 2019 and the Facility is now in full production.

The Agreement

Pursuant to the Agreement, Quinto will purchase all of the issued and outstanding shares of the Subsidiaries at closing in consideration for a cash purchase price of $21,000,000. The purchase price will be adjusted for cash and long-term debt of the Subsidiaries and for working capital of the Subsidiaries at closing above or below a target amount. The purchase price will be subject to a $750,000 holdback for the working capital adjustment and as an indemnity for certain pre-existing litigation. The Agreement contains representations and warranties, covenants, conditions and indemnities for the benefit of each of the parties as are customary for transactions of this nature. A copy of the Agreement will be posted on the parties’ respective profiles at www.sedar.com.

The Transaction

The Transaction, if completed, will constitute a “Change of Business” of Quinto pursuant to Policy 5.2 – Changes of Business and Reverse Takeovers of the TSXV. Trading in the common shares of Quinto will be halted as a result of this announcement and will remain halted until the resumption of trading is approved by the TSXV. Completion of the Transaction is subject to completion of a number of conditions, including obtaining applicable consents and approval of Quinto’s shareholders.

Quinto expects to finance the acquisition through a combination of private placements and bridge financing.

A further press release will be disseminated upon closing of the Transaction in accordance with the policies of the TSXV.

About Emerald Health Therapeutics

Emerald Health Therapeutics, Inc. is committed to cutting-edge cannabis science to create new consumer experiences with distinct recreational, medical and wellness-oriented cannabis and non-cannabis products. With an emphasis on innovation and production excellence, Emerald’s three distinct operating assets are designed to uniquely serve the Canadian marketplace and international opportunities. These assets, all in full production, include: its Metro Vancouver, BC-based greenhouse operation (78,000 square feet) capable of producing organic-certified product; Verdélite, its premium craft cannabis production indoor facility in St. Eustache, Québec (88,000 square foot); and Pure Sunfarms, its 41.3%-owned joint venture in Delta, BC, producing high quality, affordably priced products (1.1 M square feet). Its Emerald Naturals subsidiary has launched a new natural wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.

Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5

Emerald Investor Relations

(800) 757 3536 Ext. #5

invest@emeraldhealth.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this news release.

Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. Such statements include: the completion of the Transaction and the timing thereof. Completion of the Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable, disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared by Quinto in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Quinto should be considered highly speculative.

We cannot guarantee that any forward-looking statement herein will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements involve risks and uncertainties related to, among other things, changes of law and regulations; changes of government; failure to obtain regulatory approvals or Quinto shareholder approval; failure of Quinto to obtain necessary financing; failure to obtain third party consents; results of production and sale activities; regulatory changes; changes in prices and costs of inputs; demand for products; failure of counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’s annual information form and other regulatory filings. The forward-looking statements contained in this press release represent our expectations as of the date hereof. Forward-looking statements are presented for the purpose of providing information about management’s current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Emerald undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/60879

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Published at Fri, 31 Jul 2020 11:39:19 +0000

Aleafia Health Launches Same-Day, Direct-to-Door Medical Cannabis Delivery

Aleafia Health Launches Same-Day, Direct-to-Door Medical Cannabis Delivery

Aleafia Health Inc.’s (TSX: AH, OTC: ALEAF) (“Aleafia Health” or the “Company”) AssureHome Delivery, the industry-leading direct-to-door medical cannabis service, has now launched same-day delivery. Previously, the service offered next-day delivery only. Highlights include:

  • Medical cannabis orders received before noon on any business day will be shipped and delivered the same day.
  • Available to patients in the Greater Toronto Area and surrounding communities, home to over nine million people.
  • Offered exclusively to medical cannabis patients registered with the Company’s wholly owned subsidiary, Emblem Cannabis Corporation.
  • Patients receive a shipment tracking number and phone call 15 minutes prior to the driver’s arrival.
  • Further expansion planned to other major metropolitan areas including Calgary and Edmonton

“Aleafia Health’s same-day medical cannabis delivery is based on our commitment to ensuring our patients receive their medicine in a safe, secure and convenient direct-to-door delivery,” said Aleafia Health CEO Geoffrey Benic. “We are proud to offer our patients a product experience that combines value, convenience, and, most importantly, quality.”

Aleafia Health’s home delivery benefits from the supply chain logistics experience of Benic and COO Greg Rossi, who were among the founding partners of the award-winning online grocery fulfillment and delivery service, GroceryGateway.com. The pair have also worked as executive consultants on supply chain logistics projects for some of the world’s largest companies including Walmart Inc., Nestlé S.A., Kraft Heinz Company, Campbell Soup Company and Mondelez International. Benic and Rossi were also the architects of Trust Delivery, the first and only same-day Canadian medical cannabis delivery service.

For Investor & Media Relations

Nicholas Bergamini
VP Investor Relations
1-833-879-2533
IR@AleafiaHealth.com

Learn More: www.AleafiaHealth.com

About Aleafia Health

Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.

Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.

Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top performing company prior to its graduation to the TSX.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws and are expressly qualified by this cautionary statement. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include, but are not limited to, statements with respect to injection of value this settlement brings to the Company’s business. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form dated March 18, 2020 which is available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

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Published at Thu, 30 Jul 2020 11:46:26 +0000

Pot Stocks Set for Biden Boost? (GRWG, CURLF, MCTC, TLRY)

Pot Stocks Set for Biden Boost? (GRWG, CURLF, MCTC, TLRY)

The drumbeat to legalize cannabis is getting louder and louder in the US. Joe Biden is, by all accounts, starting to run away with the presidential takeover, relegating Mr. Trump to the history books as a rare one-term president, and potentially via a decisive landslide. Among other things, such an election result will suggest the incoming administration will have a mandate on certain core issues, one of which, surprisingly, seems to be cannabis legalization, or so say the smart folks at CIBC.

We should note that this is also speculation driven by polling and betting odds that show a strong likelihood that the democrats will take the Senate as well as the White House, while holding onto the House of Representatives, when they sweep through town in November.

Right now, betting site Predictit.org is showing Biden with a 63-40 price edge to win, and Democrats overall with a 62-39 edge in the “Who will control the Senate after 2020?” market.

Furthermore, because of the virus, the vote is likely to actually take place well ahead of November given the massive numbers expected to mail in their ballots this year to avoid crowded polling stations as possible transmission hot spots – and your typical mail-in vote is often penciled in weeks ahead of the official election day. In other words, if Trump is going to mount a comeback, he had better get moving because he has a lot of ground to make up, and only a matter of weeks in which to do it.

All of that takes us back to CIBC’s analyst projection out on Monday: if Biden wins, and the Dems control both houses of Congress, then expect the US to legalize weed for recreational use nationwide sometime in 2021. This makes perfect sense because it ties into what Biden will face as a critical issue in year one of his presidency: the specter of state bankruptcies across the country following the horrors of our collective battle with the virus. Legal weed reduces the burden of enforcement and creates a major tailwind in tax receipts. In other words, people will toke it up either way. But legal weed has a massive impact on state fiscal health.

What does that really mean?

It means that it’s time to get excited about Pot Stocks! With that in mind, here are a few interesting names in the space: GrowGeneration Corp (OTCMKTS:GRWG), Curaleaf Holdings Inc (OTCMKTS:CURLF), MCTC Holdings Inc (OTCMKTS:MCTC), and Tilray Inc (NASDAQ:TLRY).

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. GrowGen also operates an online superstore for cultivators, located at https://growgen.pro/.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.

According to the company’s release, the Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

GrowGeneration Corp (OTCMKTS:GRWG) generated sales of $33M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 29.9% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. CURLF is a major vertically integrated MSO cannabis operator with a strong presence that is expanding to 23 US states.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence. It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced that it closed its milestone acquisition of GR Companies, Inc., the largest private vertically-integrated multi-state operator in the United States, on July 23, 2020.

According to the release, with completion of the acquisition of Grassroots, Curaleaf is the world’s largest cannabis company by revenue and the most diversified vertically integrated cannabis company in the United States, the world’s largest cannabis market. The transaction expands Curaleaf’s presence from 18 to 23 states, with the combined company having affiliated operations spanning over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites with 1.6 million square feet of current cultivation capacity. Curaleaf’s expanded geographic dispensary presence now offers access to medical or adult use Cannabis to more than 192 million people, or roughly two-thirds of the United States population.

And the stock has been acting well over recent days, up something like 14% in that time.

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $129.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 177%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($251M against $177.1M).

Cannabis Global, Inc. (OTCMKTS:MCTC), currently still trading as MCTC Holdings (OTCMKTS:MCTC), is an R&D play in the CBD and cannabis markets. In a very interesting step, the company just moved into the cannabis delivery-based dispensary retail business through a release that dropped last week. In the release, officially, the company announced the closing of a definitive agreement to “enter the fast-growing California cannabis delivery market.”

According to the release, Whisper Weed, Inc. and Cannabis Global have created a new California Corporation to be named CGI Whisper W, Inc., which will provide management services for the delivery entity. CGI Whisper W, Inc, will receive 51% of the profits from the new entity, which will be recognized as income by Cannabis Global, Inc.

“The delivery sector is the hottest area of the California cannabis business and we are very pleased to have a seat at the table,” commented Arman Tabatabaei. “We not only will be able to grow our revenue base relative to direct delivery, but we also see Whisper Weed as a perfect platform to launch our infusion technologies in the regulated marketplace.  With the deal closing, we are already in the process of adding other delivery platforms and other businesses to our overall portfolio.”

Cannabis Global, Inc. (OTCMKTS:MCTC) views this agreement as an important step toward the verticalization of its IP-driven focus. Many of the technologies developed for CBD and non-THC marketplaces can be directly applied to the regulated California cannabis marketplace, including the Company’s newly developed tetrahydrocannabivarin (THC-V) and Cannabinol( CBN) delivery technologies.

Shares of the stock have been running in recent days, up as much as 60% in the past five trading sessions.

MCTC Holdings Inc (OTCMKTS:MCTC) had no reported sales in its last quarterly financial data. But it appears to be closing in on commercial-stage operational gains for shareholders and has a strong IP edge in the industry. In addition, with this agreement, the company should now be in a position to start booking topline growth in the cannabis delivery-based dispensary retail business.

Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada.

One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

Tilray Inc (NASDAQ:TLRY) just announced that it will report results for the second quarter ended June 30, 2020 on Monday, August 10, 2020 after market close. According to the release, the Company will host a conference call to discuss these results in the afternoon (at 5:00 p.m. ET) on that day.

The report should be important for the space in general because TLRY is known for being somewhat overhyped relative to its actual operations, and the market will be anxious to understand how this archetypal “pot stock bubble victim” has managed to evolve in terms of the long-term prospects for servicing its major liabilities.

TLRY shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume.

Tilray Inc (NASDAQ:TLRY) managed to rope in revenues totaling $52.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 126.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($174M against $171.4M).

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Tue, 28 Jul 2020 04:48:22 +0000