GrowGen reports $80 million in revenue, Supreme appoints a new interim President and CEO, Cresco Labs completes its acquisition of Origin House, and more!
MediPharm Labs Corp. (TSX: LABS) made the headlines again this week, after the company announced that it has completed its first deliveries under a cannabis 2.0 white label agreement with 1193269 B.C. Ltd, which operates as Shelter Brand House, a cannabis product development company.
Through its wholly-owned subsidiary MediPharm Labs Inc., the company is providing high-quality cannabis extracts, filling services and national distribution of a line of custom-formulated Shelter vape cartridges initially under the brand Wayfarer, along with other future contemplated brands. Shelter created Wayfarer for consumers with uncompromising tastes who want the highest-caliber experience along with sleek product design.
Being among the first license holders to bring newly approved, quality-assured cannabis concentrate derivative products to Canadian consumers confirms the continued execution of MediPharm Labs' platform that we've built over the last five years. Chief Executive Officer of MediPharm Labs, Pat McCutcheon
The company also managed to secure a license amendment from Health Canada this week, allowing production to begin in the recently expanded area of its specialized manufacturing facility in Barrie, Ontario.
This amendment increases MediPharm's licensed facility footprint by around three times, or 16,746 sq. ft., to a total of approximately 25,000 sq. ft., allowing it to productively use more of its manufacturing space for cannabis activities – including automated downstream production and packaging, cannabis quality control and testing, research and development and secure storage to support the fulfillment and distribution of new product format formulations and orders.
The expanded facility, purpose-built to the same standards as the current GMP-approved footprint, will upon applicable GMP approvals enable MediPharm to directly increase its GMP capacity for the international medical market. Further, the expanded facility will immediately allow MediPharm to produce greater quantities of GMP product, as it can now move non-GMP activities, such as vape pen filling, into its newly licensed area.
GrowGeneration Corp. (NASDAQ: GRWG), the largest chain of specialty hydroponic and organic garden centers, reported record revenue of $80 million for the 2019 fiscal year-end.
Same store sales were up 62% for Q4 2019 versus Q4 2018, while revenue during this period reached $26 million. The Co-Founder and CEO of GrowGen, Darren Lampert, stated that revenue for 2019 "was up 176%, year-over-year to $80 million."
"Our same store sales were up 62% Q4 2019 versus Q4 2018. For the full year, same store sales were up 36% versus full year 2018. Our online business is now branded GrowGen.Pro and is being integrated as part of our omni channel strategy with all our stores locations, 'Order online and Pickup in store," Lampert said.
The Company's fiscal year ending 2019 record financial results reflect our continued focus on revenue growth and EBITDA expansion.Co-Founder and CEO of GrowGen, Darren Lampert
Supreme Cannabis (TSX: FIRE) announced that its Board of Directors has named Colin Moore, Director of the Company and former President of Starbucks Coffee Canada, as Interim President and Chief Executive Officer, effective immediately.
Mr. Moore succeeds Navdeep Dhaliwal, who has departed the Company. The Company is in the process of engaging a leading, nationally recognized search firm to identify and evaluate a new CEO to lead Supreme Cannabis in its next phase of profitable, long-term growth.
Moore brings a wealth of public market, consumer goods and operational experience to his role Interim Chief Executive Officer of Supreme Cannabis, in addition to his current role as a member on the Company's Board of Directors, which he joined in May 2018.
Shares in CannPal Animal Therapeutics Limited (ASX:CP1) were sent climbing after the company announced that it has been granted exclusive global rights to commercialize patented MicroMAX microencapsulation technology by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for use in the field of Animal Therapeutics.
MicroMAX is CSIRO's patented microencapsulation technology platform designed to encapsulate microscopic droplets of oil in a special food grade material, to protect bioactive ingredients from oxidation and help deliver them to the gastrointestinal (GI) tract.
Microencapsulation is a process widely used in food and drug manufacturing that protects the integrity of functional ingredients and helps maintain the nutritional value, shelf-life and flavour of the finished product, while enhancing the delivery of the active compounds.
After 18 months of due diligence, I'm delighted to announce that we've been granted the exclusive rights to CSIRO's patented MicroMAX® technology platform for use in the animal health market. CannPal Managing Director, Layton Mills
The company won one of 14 licenses to open a medical cannabis dispensary in Utah, from more than 130 applications and 60 different companies.
Curaleaf's license is for Region 3, which includes Utah, Wasatch, Daggett, Duchesne, Uintah, Carbon, Emery, Grand and San Juan Counties. Curaleaf plans to open a dispensary in Lindon, Utah – adjacent to Interstate 15 between Salt Lake City and Provo – for medical patients later this year, pending final approvals from regulators.
As an executive with more than three decades in the food, beverage and consumer goods industry, Goodson will enhance Harvest's capabilities to scale its operations in key markets nationwide and to drive profitable revenue goals. Goodson will report to Harvest CEO Steve White and replaces outgoing COO John Cochran.
Most recently, Goodson served as President and COO of Verano Holdings LLC, where he successfully led work around financial metrics, organization structure, performance management and team acquisition and development which drove positive EBITDA results as Verano scaled operations in their focus markets.
Ron's veteran expertise in consumer goods and across several cannabis channels will help us scale our operations, increase our focus on providing great retail cannabis experiences for patients and consumers and expand the reach of our brands. Harvest Health & Recreation CEO, Steve White
Cresco Labs Inc. (CSE: CL) provided an update on the acquisition of CannaRoyalty Corp. and Origin House (CSE:OH), announcing that the arrangement has been closed and the acquisition is now complete, at an estimated total value of C$517 million.
Through the acquisition, Cresco has massively increased its footprint as well as cementing the company's position as a dominant player within California.
The company is now a major player in the wholesale cannabis distribution industry in California, as it provides cannabis to over 575 dispensaries, selling over 50 brands which total over 60 percent of California's total storefront dispensaries.
High Tide Inc. (CSE:HITI) entered into a loan agreement with Windsor Private Capital, a Toronto-based merchant bank, to secure a senior secured, non-revolving term credit facility in the amount of up to $10 million.
The Facility, which represents Windsor's first investment in the cannabis industry, provides High Tide with the needed flexibility to carry out its corporate objectives for 2020, which includes expanding into Ontario as the largest cannabis market in Canada.
High Tide intends to use the Facility to fund the acquisition and build-out of retail cannabis stores in Alberta and Ontario, as well as for general working capital purposes.
We are thrilled to have established a significant financial relationship with Windsor Private Capital. This credit facility ensures High Tide will have access to sufficient and timely capital to execute on its corporate strategy and maximize shareholder value in 2020. High Tide's President & CEO, Raj Grover
During this time the company's net revenue increased 38% to $35.0 million, while gross profit was 20.8%.
On a GAAP basis, KushCo's net loss was approximately $12.5 million, compared to approximately $8.6 million in the prior year period. Basic and diluted loss per share was $0.12 compared to $0.11 in 2018.
Watch this space for future updates.
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