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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

The Ins and Outs of Covid’s Impact On Marijuana Stocks

The Ins and Outs of Covid’s Impact On Marijuana Stocks




The Ins and Outs of Covid’s Impact On Marijuana Stocks | Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™























Published at Wed, 05 Aug 2020 19:15:35 +0000

Star signs and cannabis strains: August 2020 horoscopes

Star signs and cannabis strains: August 2020 horoscopes

Happy August, Star Gazers! July was a hard month to beat for astrology and astronomy fans alike. The NEOWISE comet was visible to the naked eye for a ton of folks, there was a refreshing penumbral eclipse on July 4, and many of the key planetary rulers were in retrograde.

August is shaping up to be a mellower, but no less engaging month for every sign in the Zodiac.

Mercury is in direct motion the entire month (phew), and Venus ends her four-month residency in Gemini. The full moon is in Aquarius on August 3 for some emotional reinvigoration as we round the corner on summer.

Read More

Published at Tue, 04 Aug 2020 22:02:56 +0000

Amber Littlejohn Joins Board of U.S. Hemp Authority

Amber Littlejohn Joins Board of U.S. Hemp Authority

Editor’s Note: This article was updated from its previous version at 4 p.m. Aug. 4, 2020.

More than 600,000 vaping products quarantined in Massachusetts last year can now be retested and sold or reclaimed and repurposed into other products if they meet safety standards, according to a Aug. 3 press release from the Cannabis Control Commission (CCC). 

After three rounds of testing and a public comment period launched in July, the CCC concluded that businesses may retest and sell products, which must include modified warning labels that explain the product was previously quarantined and rested. If products do not meet safety standards after two attempts to remediate, licensees have to toss the product, according to the press release. 

The CCC issued the vape product quarantine back in November, though the state’s temporary ban on vaporizer products that began in September effectively stopped the sale of more than 619,300 products in both the medical and adult-use markets between Sept. 25 and Dec. 12, 2019. The decision was in response to the e-cigarette, or vaping product use-associated lung injury (EVALI) outbreak that sickened thousands of people in all 50 states and killed nearly 70. The Centers for Disease Control and Prevention determined that the primary cause of the once mysterious lung illness was vitamin E acetate, a cutting agent usually found in illicit market cannabis devices. 

“Since the Commonwealth declared a vaping public health emergency last fall, the Commission has dedicated significant energy and resources to investigating the additives, hardware, and storage practices that licensees use to produce and sell cannabis vaporizer products,” Commission Executive Director Shawn Collins said in the Aug. 3 press release. “Fortunately, repeat tests of licensed product samples did not return any detectable levels of [vitamin E acetate]; unfortunately, they did establish that heavy metal contamination may increase in vaping products over time.”

According to an amended quarantine order released Aug. 3, the first round of tests included only a screen for vitamin E acetate, and none was found in the 91 vaporizer samples that came from 19 licensees. A second round of testing included screening for both vitamin E Acetate and heavy metal levels from 126 vaporizer products from 22 state licensees. Of the tested products, approximately 13 were found to have heavy metal concentrations at unsafe levels. The third phase of testing “did not conclusively establish the root cause of elevated heavy metal contamination,” according to the amended order, and they were unable to repeat results from the second round.

“Our testing that we’ve conducted as a commission did not detect any vitamin E acetate, which is obviously a good sign and encouraging news, but we did identify some pretty concerning levels of lead,” Collins told Cannabis Business Times in July. “Upon retest though, the results are a little all over the map. Where something that might have failed for lead–and failing for us would be above 500 parts per billion–didn’t fail the second round. So, it’s sort of a hit or miss environment.”

Meanwhile, cannabis companies in the state say millions of dollars in potential revenue was frozen while they waited for months for a decision from the CCC.

Ellen Rosenfeld, president of CommCan, a vertically integrated cannabis company licensed under the medical and adult-use programs with two dispensaries, told Cannabis Business Times she is “thrilled” with the CCC’s decision and called it a “best case scenario,” as she predicted the only options for companies would be to remediate the quarantined product to create new cartridges or destroy them.

Rosenfeld says the company is weighing its options, but if they do find that after retesting, the products are safe for consumption, she says she would need to offer a discounted rate to sell them. (And the discounts are only allowed in the medical market in Massachusetts). 

“We are starting testing today [Aug. 4]. We don’t want to wait another minute. Another minute is another day older,” she says. “The discount would have to be significant because you’re competing with your own brand new product.”

However, she said she is happy to move forward, whether CommCan sells the original products, remediates them to create new cartridges, or even if the company has to throw the product out.

I’m grateful to have this out of my vault to free up storage space and to move it,” she says. “It’s up to me to figure out how to move it. Prior to yesterday, I had no control. Now it’s all under my control.”

Brandon Pollock, CEO and co-founder of Theory Wellness, which is vertically integrated, licensed in both the medical and adult-use markets and operates three dispensaries, told Cannabis Business Times in July that the quarantine and delays have “been very negative” for the company, as he estimates Theory has more than a million dollars in inventory that’s been on hold for about nine months.

“It’s been really challenging just knowing that the inventory is just sitting there, and we had to buy and make new inventory, with the replacement cost to basically to keep the vape sales going when we were able to start selling them again,” Pollock says. “We very much look forward to a process finally to retest and sell the products when they are deemed safe.”

The commission also tested a sample of 20 empty vaporizer cartridges from seven cannabis licensees, according to the CCC order, and although the devices tested positive for lead, cadmium and arsenic, “the testing method applied raises concerns about the validity of the results. … Due to limited isolation of the parts within the vaporizer device, controlled and reliable data was not produced.”

“This new order seeks to strike a balance between those products that can be retested or remediated safely for sale or repurposing with proper warning to patients and consumers, and those that cannot,” Collins said in the press release. 

Representative samples from either quarantined production batches or new samples from reclaimed products must pass tests for vitamin E acetate and heavy metals, according to the commission. Those that pass inspection need to include labels that the products were previously quarantined and passed retesting for vitamin E acetate and heavy metals, while products that still test at unsafe levels after two attempts to remediate must be disposed of, the CCC stated in the press release. 

Cannabis Business Times has reached out to cannabis companies in Massachusetts and will continue to update this article as more information is available. 

Published at Tue, 04 Aug 2020 20:30:00 +0000

Going To War For Legal Psychedelic Drugs

Going To War For Legal Psychedelic Drugs

As geopolitical tensions intensify and conflicts erupt, the Western war machine may now NEED access to legal psychedelic drugs

Depression. Anxiety. Post-traumatic stress disorder.

As our fearless leaders create ever more-dysfunctional societies (and an ever more-dysfunctional planet), all three of these mental health epidemics are growing at a disturbing rate.

While depression, anxiety and PTSD are endemic across all demographics, these disorders are especially prevalent the among armed forces. Psychedelic drugs have shown enormous potential to provide superior treatment-care options for all three of these conditions.
 

Now there is a growing clamor on both sides of the Atlantic that psychedelic drugs need to be legalized for, in particular, treating the rising epidemic of mental health issues among military personnel.

For 40 years, Western governments have fought a “war” to keep most psychedelic drugs under the strictest criminal provisions. Now these same governments may need to legalize psychedelic drugs – to use on their own military personnel – or see their capacity to wage war severely impaired.

It is the epitome of irony.

On July 27th, two articles were published that pressured governments to end criminal prohibitions for some of these substances. This call was specifically connected to the potential of psychedelic drugs to treat mental health disorders that affect military personnel.

One salvo came from the UK, via an article in The Guardian.
 

In turn, the authors of that report wasted little time in identifying where they saw the greatest need for the legalized use of psychedelic drugs. In the Foreword of the report came this statement.
 

Thousands of men and women from the armed forces, policing and front line medical staff are suffering today from psychological injuries incurred through service to their country. They are unable to find effective treatment in the UK. For these individuals to gain legal access to psilocybin, a substance deemed safe in humans with the potential to provide them with lifesaving psychotherapeutic relief, they are forced to break the law or travel abroad. This report makes the case for removing existing unnecessary blocks to research and drug development so we can unlock the evidence and deliver for them.

The UK report centered on the potential of psilocybin alone.

However, a US-centric article published on the same day touted two other psychedelics for these mental health applications: ibogaine and DMT. Its focus was even more explicitly oriented toward use on military personnel.
 

Why is there suddenly so much buzz surrounding the medicinal use of psychedelic drugs? The study supplies a compelling answer.
 

Davis and his team conducted a study among 51 US SOF veterans who received psychedelic treatment at a clinical program in Mexico between 2017 and 2019…

The results overwhelmingly supported the treatment, uncovering strong decreases in reported symptoms of PTSD, depression, and anxiety following the program. There was also a substantial drop in reports of suicidal ideation and cognitive impairment, and an increase in reported psychological flexibility. In fact, participant reports of post-treatment symptoms no longer met the cut-offs for clinical diagnoses.

Moreover, when asked to evaluate the program, the vast majority (80%) of participants were “either very (28%) or completely (53%) satisfied with the program.” [emphasis mine]

“Participant reports of post-treatment symptoms no longer met the cut-offs for clinical diagnoses.” That’s pretty close to saying these veterans were cured.

Compare this to the dismal success rate of conventional medicine for these same mental health disorders.

Front-line drugs to treat depression (antidepressants) demonstrate a 50% failure rate, with their efficacy only slightly better than placebos.

But sugar pills aren’t addictive. Antidepressants are.

Sugar pills don’t have serious/dangerous side effects. Antidepressants do.

Then there is PTSD.

Roughly 1 in 8 U.S. veterans suffers from post-traumatic stress disorder. Yet the VA and DoD have had limited success in providing treatment for this mental health epidemic among the U.S. armed forces.
 

A 66% failure rate. Appalling.

For a government that continually urges its citizens to “support our troops”, the U.S. government has great difficulty in providing its veterans with adequate support.

If the clinical results above can be replicated on larger populations, psychedelic drugs may be the answer to the medical woes of military personnel.

Even a few years ago, it’s unthinkable that any conservative think-tank would endorse not only the decriminalization of a psychedelic drug, but also its legal use for medicinal purposes. But most conservatives are military hawks.

If they have to choose between indulging their personal biases against psychedelics or keeping military personnel in tip-top fighting condition, it’s really no choice at all.

The War on Drugs has now taken a perverse and ironic turn.

There is now a battle emerging for the legalization of many of these drugs (for medicinal use).

And one of the primary drivers behind this movement is the desire of Western governments to maintain their capacity to wage other wars.
 

Published at Tue, 04 Aug 2020 03:00:01 +0000

Maine Expects Adult-Use Cannabis Sales to Launch by the End of the Year

Maine Expects Adult-Use Cannabis Sales to Launch by the End of the Year

TORONTO—July 30, 2020–PRESS RELEASE–FSD Pharma Inc. today announced that it has notified Health Canada of the Company’s decision to forfeit the licenses of its wholly-owned subsidiary, FV Pharma Inc., and suspend all activities by FV Pharma within 30 days of the notification date. FSD Pharma has begun the process of liquidating all FV Pharma assets, including the sale of the Company’s cannabis production facility in Cobourg, Ontario.

“It is now clear to us that our shareholder value is best served in closing down our medicinal-grade cannabis operation in Cobourg, Ontario and reinforcing steps to advance pharmaceutical R&D efforts on our lead compound FSD201 (ultra-micronized PEA) and continuing to explore the acquisition of other compelling compounds to expand our drug development pipeline,” said Raza Bokhari, MD, Executive Co-Chairman & CEO.

“Our pharmaceutical R&D team led by Dr. Edward Brennan is actively working to submit an Investigational New Drug Application (IND) to the FDA for the use of FSD201 (ultra-micronized PEA) to treat hospitalized COVID-19 patients by down-regulating the over-expressed pro-inflammatory cytokine immune response to SARS-CoV-2 virus infection. We are hopeful to initiate the phase 2 clinical trial before the end of this year and remain cautiously optimistic that our study may improve treatment outcome for COVID-19 patients.”

The Company is not making any express or implied claims that its product has the ability to eliminate, cure or contain the COVID-19 (or SARS-2 Coronavirus) at this time.

Published at Thu, 30 Jul 2020 15:30:00 +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

U.S. House Approves Amendment to Protect State-Legal Cannabis Businesses from Federal Intervention

U.S. House Approves Amendment to Protect State-Legal Cannabis Businesses from Federal Intervention

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 Thu, 30 Jul 2020 17:44:00 +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

copyright (c) newsfile corp. 2020

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

Where Does Namaste Technologies Go From Here?

Where Does Namaste Technologies Go From Here?

Last week, Namaste Technologies Inc. (N.V) (NXTTF) released second quarter financial results for the period that ended on May 31st and we were impressed with how it was able to grow revenues on a quarter-over-quarter basis.

When compared to the prior quarter, Namaste recorded an improvement in second quarter revenue, gross margin and the net loss. The company continues to execute on previously announced initiatives, and we are favorable on the performance of the business during the toughest months of the COVID pandemic.

The most attractive aspect of the Namaste story is related to CannMart, which is a wholly owned subsidiary of the business. CannMart continues to execute on a strategy to attract premium brands, value added suppliers, and provincial agencies. Much of the success can be attributed to its expertise in e-commerce, production, packaging, and distribution, and we are bullish on the growth prospects that are associated with the subsidiary.

During the second quarter, CannMart’s expanded product catalogue grew in both its business to business (B2B) and business to consumer (B2C) channels and this is a trend that we are bullish on. CannMart continues to put a major emphasis on strengthening its competitive position in the Canadian cannabis industry as the market matures and shifts into consumer-packaged goods (CPG).

Namaste is led by a management team that has a proven track record of success working in the CPG market. We believe that the team is focused on bringing the business down a path to profitability and will be monitoring how it continues to execute on this. Going forward, we expect to see a continued focus on building a leading Canadian cannabis company and believe that the market underappreciates the potential that is associated with this.

During the quarter, Namaste reported to have generated $6.9 million of revenue and this represents a more than 70% increase over the same period last year. CannMart accounted for more than $2.4 million of the quarterly revenue and we expect this vertical to continue to record impressive growth on a going forward basis.

An important metric from the quarterly results is related to the amount of cannabis products that were sold during the period. Going forward, we expect this metric to resonate with the market and are favorable on the way the business has evolved. In the second quarter, more than 33% of second quarter revenue was derived from cannabis and cannabis products which is substantially higher than the less than 5% that was recorded in the same period last year.

From a balance sheet standpoint, Namaste is well positioned to capitalize on organic and inorganic growth initiatives, and we are favorable on how the management team has been able to manage expenses. At current levels, we believe that Namaste has a compelling valuation and a favorable risk-reward profile. We believe that the company has significant potential catalysts for growth and is an opportunity to be aware of.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Wed, 29 Jul 2020 11:32:02 +0000