The Daily Hit: April 1, 2019
Its time for your Daily Hit of cannabis financial news for April 1, 2019.
On The Site
Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) is acquiring CannaRoyalty Corp. also known as Origin House (CSE: OH) (OTCQX: ORHOF) in a deal valued at C$1.1 billion or C$12.68 per Origin House Share (based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29). The deal looks to be the largest public company acquisition in the history of the U.S. cannabis industry.
The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.
GrowGeneration Corp. (OTCQX: GRWG) reported revenue of $29.0 million or 102% over 2017 revenues of $14.4 million. The company delivered a net loss of $5 million for 2018 a big increase over 2017’s net loss of $2.5 million. Gross profits were $6.4 million for 2018, as compared to $3.3 million for 2017, an increase of approximately $3.1 million or 97%. The company’s same-store sales, in the 4th quarter, increased by 12.4%.
Nutritional High International Inc. (CSE: EAT) (OTCQB: SPLIF) reported revenue of $6.1 million for the second quarter of 2019 from the sale of Cannabis related products in California primarily via its wholly owned distributor, Calyx Brands Inc. The company also reported a gross profit of $1.5 million, but a net loss of $6.8 million. At the end of January 31, 2019, the company has now recognized a trailing-twelve-month revenue from Cannabis sales of approximately $17.6 million.
1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) reported that for the second quarter FY2019, the company had consolidated revenues of $3,720,993, gross margin of $2,088,740 and a net loss of $2,926,981.
In Other News
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) has entered into a credit facility with Bank of Montreal. Under the terms of the credit facility, BMO will provide WeedMD up to $39 million of secured debt financing at a rate of interest that is expected to average in the low-to-high 5% per annum range over a three-year term.
The facility consists of a $33.1 million term loan, a $3.0 million equipment term loan and a $3.0 million revolving credit facility, all of which mature in 2022. WeedMD may, at its discretion, repay the balance of the Loans without penalty at any time during the term. Concurrently, WeedMD has exercised its option to purchase the Health Canada-licensed, 98-acre Strathroy property from Perfect Pick Farms. The Strathroy purchase includes the licensed 610,000 sq. ft. state-of-the-art hybrid-greenhouse, more than 100,000 sq. ft. of ancillary structures and all other infrastructure and equipment as well the 50 acres of land upon which the Company intends to cultivate outdoor cannabis.
Helix TCS, Inc. (OTCQB: HLIX) filed its fourth quarter and fiscal year 2018 financial results Friday, March 29, 2019. Highlights of the fourth quarter compared to the same quarter a year ago included total revenues that increased 189% to $3.45 million and gross profits for the quarter was $1.37 million, a 40% gross margin.
Curaleaf Holdings, Inc. (CSE: CURA)(OTCQX: CURLF), a leading vertically integrated cannabis operator in the United States announced that it completed the acquisition of EC Investment Partners, LLC.