It’s time for your Daily Hit of cannabis financial news for October 1, 2020.
On the Site
Jushi Holdings Inc. (OTCQB: JUSHF) announces rising revenue after releasing preliminary financial results. The company is estimating revenue of $24 million for its third-quarter ending September 30, 2020, a change from its previous guidance of $22-$25 million and a sequential increase of 61%. The guidance for revenue in the fourth-quarter ending December 31 is now expected to be at the high end of the previously announced range of $25-30 million and Jushi said it expects to report positive adjusted EBITDA. The total fiscal year 2021 revenue has been revised from $200-250 million to $205-255 million and the adjusted EBITDA is expected to be between $40-50 million.
MedPharm Holdings said it would not be extending their term sheet, which expired yesterday, for acquisition with Schwazze, Inc. (SHWZ), formerly operating as Medicine Man Technologies. This is the second company in two months to walk away from Schwazze as Medicine Man Denver also chose to part ways in August.
“After more than a year and a half of negotiations we have mutually agreed with Schwazze, this transaction no longer serves either party,” said Albert Gutierrez, CEO of MedPharm “We remain as optimistic as ever about MedPharm’s future and our ability to bring groundbreaking research that is enhanced by novel, cannabinoid-containing dosage forms,” Gutierrez says. “I felt it was a good time to move on and seek other qualified partners for investment purposes, as MedPharm retains its role as a leader in the industry.”
Canopy Growth Corporation (NYSE:CGC) and Acreage Holdings, Inc. (OTC: ACRHF, ACRDF) announced today that following the implementation of their amended arrangement, Acreage developed a plan to market Canopy Growth’s THC beverages in the legal adult-use markets in the U.S.
Beginning with Illinois and California in summer 2021, Acreage said it will launch Canopy Growth’s THC beverages into markets as well as in its own dispensaries. Acreage said it will access existing distribution channels through its strategic corporate relationships of both Acreage and Canopy. At this time there are no beverages in the marketplace from the company. The website says that it has “Developed a proprietary process that distills whole flower cannabis into a clear liquid. We are using this liquid as an active ingredient in a wide variety of THC and CBD beverages, offering consumers an alternative to traditional drinks.”
In Other News
Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise and Essence retail stores, today announced the amendment of a previously announced sale leaseback transaction with Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) regarding its manufacturing property in Toledo, Ohio. An additional $25.0 million in funding will be provided for the construction of a cannabis cultivation facility at the property, which currently houses a separate cannabis processing facility. Assuming full payment of the additional funding, IIP’s total investment in the property pursuant to the sale leaseback transaction will be $32.2 million. Green Thumb and IIP signed the sale leaseback transaction for the property on January 31, 2020.
“We appreciate the continued strong support of IIP as a long-term real estate capital partner,” said Green Thumb Founder and CEO Ben Kovler. “The Ohio regulated cannabis industry continues to represent a tremendous growth opportunity, and we look forward to bringing our high quality Rythm flower to the patients in the state.”
Governor Jared Polis today signed an Executive Order granting pardons to those who have been convicted of possessing one ounce or less of marijuana. In June, Gov. Polis signed the bipartisan H.B. 20-1424, sponsored by Rep. James Coleman, Sen. Julie Gonzales and Sen. Vicki Marble, including an amendment sponsored by Sen. Gonzales, which authorizes the Governor to grant pardons to a class of defendants who were convicted of the possession of up to two ounces of marijuana. Reps. Leslie Herod and Jonathan Singer were also champions of passing this legislation. The new law went into effect this month.
“We are finally cleaning up some of the inequities of the past by pardoning 2,732 convictions for Coloradans who simply had an ounce of marijuana or less. It’s ridiculous how being written up for smoking a joint in the 1970’s has followed some Coloradans throughout their lives and gotten in the way of their success,” said Governor Jared Polis. “Too many Coloradans have been followed their entire lives by a conviction for something that is no longer a crime, and these convictions have impacted their job status, housing, and countless other areas of their lives. Today we are taking this step toward creating a more just system and breaking down barriers to help transform people’s lives as well as coming to terms with one aspect of the past, failed policy of marijuana prohibition.”