It’s time for your Daily Hit of cannabis financial news for March 16, 2020.
On The Site
Hemp CBD company CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the year ended December 31, 2019, with total revenue of $53.7 million for the fiscal year 2019. During the fourth quarter of 2019, sales declined 34% to $9.4 million compared to $14.2 million in the prior-year period. The company blamed the decline on increased market competition in the natural product category and the continued impact on retail customers as a result of the uncertain regulatory environment for CBD.
Even more concerning is that CV Sciences said that it expects revenue to drop sequentially to the range of $6-8 million in the first quarter of fiscal 2020. The fiscal year non-GAAP EPS of $0.00 missed by $0.01 and the GAAP EPS of -$0.17 missed by $0.07.
Indus Holdings Inc. (OTC:INDXF) stock was moving higher by 24% to lately trade at 21 cents following news that the company has been taken over by former Acreage Holdings (CSE:ACRG.U)President George Allen.
Indus said it received a $2.3 million loan with lenders that included Geronimo Capital, LLC and Merida Capital Partners. In connection with the loan, Indus has entered into a non-binding term sheet with Geronimo Capital and Merida Capital Partners for the financing of up to $14.5 million (inclusive of the $2.3 million loan). The loan matures on March 13, 2021, and has an interest rate of 10% per annum until April 11, 2020, and 20% per annum thereafter
Aurora Cannabis Inc. (NYSE: ACB) said that former CEO Terry Booth has filed a report on the System for Electronic Disclosure by Insiders (SEDI) regarding his sale of approximately 12,161,900 shares into the open market. Aurora stock was lately trading at 70 cents a share, down considerably from the company’s 52-week high of $10.32. Still, the sale would bring Booth roughly $8 million.
Executive Chairman and Interim CEO Michael Singer stated, “The Board and management remain focused on the plan we laid out in February and we are progressing as planned toward appropriate capital allocation, balance sheet strength, and profitability. We look forward to updating the markets on our next quarterly earnings call.”
Covid 19 Sales
Facing calls to stay inside and avoid large groups, cannabis consumers decided the way to best pass the time was to stock up on supplies. Dispensaries have been reporting large lines as shoppers increase purchases. Boston dispensaries were seen with lines snaking out the doors, while other states reported fewer shoppers, but larger purchases.
The Covid 19 virus has resulted in the cancellation of numerous cannabis conferences and even delayed some grand opening plans for new dispensaries. So far it seems April 20 celebrations haven’t been canceled yet and some of the bigger conferences planned for late May are still on schedule.
In Other News
CanaFarma Hemp Products Corp. (formerly KYC Technology Inc.) (CSE:CNFA) will begin trading on the Canadian Securities Exchange (CSE) under the symbol “CNFA” at the opening of markets on Thursday, March 19th, 2020. This initial listing date has been pushed back from March 17, 2020, at the request of the Corporation in order to account for world events relating to the COVID-19 virus, which are expected to have caused an extra delay in shareholders receiving their new shares of the Corporation.
urban-gro, Inc. has filed a preliminary non-offering long-form prospectus with the securities regulatory authorities in the Provinces of Ontario and British Columbia. The company also announced that it has applied to list its common shares on the Canadian Securities Exchange. Listing and trading of the Common Shares will be subject to the Company fulfilling all of the CSE’s listing requirements and the Company being receipted for a final prospectus with the securities regulatory authorities in the Provinces of Ontario and British Columbia.
Tweed Houndstooth & Soda, began shipping to provincial boards and retailers nationwide late last week. It’s a proprietary beverage technology designed to distill cannabis flower into a liquid which powers its Ready-To-Drink offerings. Each 355 mL can of Tweed Houndstooth & Soda contains 2mg of THC and <1mg CBD, combining Houndstooth Distilled Cannabis with soda water and other ingredients for a refreshing cannabis experience.