Monthly Archives: June 2019

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Kicks Its Global Expansion Plan Into High Gear Through Its New Global Strategic Hemp Division

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Kicks Its Global Expansion Plan Into High Gear Through Its New Global Strategic Hemp Division

Green Organic Dutchman
Holdings Ltd (OTCMKTS:TGODF)
recently unveiled its Global Strategic Hemp
Division through which it plans to expand its presence into the global organic
CBD and hemp market.

The newly launched Global Strategic Hemp Division will take
advantage of The Green Organic Dutchman’s knowledge of the hemp CBD market in
Europe. This will allow the company to fast-track its growth and also speed up
the production and commercialization of new offerings throughout its network
with the help of its international partners.

“With the global CBD market expected to hit $22 billion in less than 3 years, it is clear that the segment is drawing substantial consumer demand,” stated TGOD CEO, Brian Athaide.

TGOD already has the technical know-how that it needs to
expand in

The CEO also noted in his statement that the company’s team
has years of experience in the CBD sector and that they are excited about using
that experience in the expansion strategy. Athaide also added that CBD is the
ideal product for the company because it aligns with TGOD’s focus on organic
products. The

CEO also believes that now is the ideal time to focus on a
global expansion strategy because CBD is increasingly gaining more popularity
across that world. TGOD has also been building up its business in preparation
for more market share. For example, it acquired HemPoland last year, which
allowed it to gain access to more intellectual property.

The acquisition seems to have paid off because HemPoland’s Q1 2019 revenue
grew by roughly 30% due to the rising demand for top-grade CBD products in the
European region. Meanwhile, the new Global Strategic Hemp Division is a great
addition, especially to TGOD’s international partners. Some of those partners
offer training for standard operating procedures, organic methods and they even
provide genetics and regulatory insights.

TGOD has already secured a distribution agreement through
its partnership with a German pharmaceutical called Mediakos through HemPoland.
TGOD also plans to leverage its existing partnerships as part of its plan to
venture into the U.S CBD market. Meanwhile, the company already has a Canadian
subsidiary whose operations in the country are licensed by Health Canada.

Published at Wed, 26 Jun 2019 12:15:08 +0000

Another Cannabis Based Company Hits Nasdaq

Another Cannabis Based Company Hits Nasdaq

The cannabis industry has become quite relevant in the consumer market and as an investment option. Increasing market returns from pot stocks over the past years are proof of this. Various estimates project cannabis sales to go from $50 billion to $75 billion over the next decade. This implies that investors could see heavy profits.

High Volatility In The Cannabis Stock

Various players and corporations are venturing into the marijuana industry because it is getting a lot of attention. AKERNA (NASDAQ:KERN) is one example of this. Akerna was formed after a merger between the cannabis-software service company MJ Freeway and an acquisitions company, MTech Acquisitions. The merger was announced in October was finally completed last week.

Akerna became the first cannabis-based company to be listed on Nasdaq without an IPO or over-the-counter exchange option. It was open for trading on Nasdaq on Tuesday, June 18. However, the first day of trading saw only mild trades (over 120,000 shares) with stocks closing at $14.85 per share. The following two days saw an improvement with more than 3 million shares being traded each day. This led to the value of the cannabis stock to triple to $49.80 on Wednesday. It continued to grow over 50% to $73 Thursday morning. Since then, Akerna’s stock has sharply corrected, closing at $21.70 during Thursday’s session. After rising 600%, the stock has lost the majority of its gain.

Marijuana Stock’s Business Model

This business pick-up was a result of the unique business model of Akerna. Akerna’s primary business includes seed-to-sale technology which involves the development of unique software for the cannabis industry. This is quite valuable, especially since the cannabis industry needs to be sternly overseen. The software would help the state keep a track of the plants grown, ensuring no illegal dealing. As cannabis’ federal status remains illegal, states would benefit greatly from the software.

Another focus for the company would be providing consultancy services in the cannabis industry. This would help other marijuana businesses better connect with its customers by understanding their requirements and needs. Akerna would also help the companies understand the regulations more clearly, aiding them with license procedures as well. With clients in 29 of the 33 cannabis-legal states and 11 counties globally, the business does seem promising.

However, there are various flaws that an investor should be aware of. One of them is the company’s dependency on cash, which could leave the whole business invaluable. The financials of MTech have not impressed either. Its sales fell from $5.53 million to $4.97 million in the first 6 months of the 2018 fiscal year. The net loss reported also rose from $2.9 million to $4 million.

Another concern is the large sales percentage, 43% of total sales, by Washington and Pennsylvania. This shows Akerna’s reliance on these two. A contractual change with them could leave a heavy dent on the cannabis company’s revenue. On top of this, Akerna plans on performing an aggressive acquisition. This requires a major portion of shares to be diluted into common stock so they can fund the acquisition. Another common weakness seen in most cannabis-based organizations is the lack of proper internal controls over the firms’ finances.

Published at Fri, 28 Jun 2019 19:45:55 +0000

SinglePoint Inc. (OTCMKTS:SING) Report Exceptional Response For LALPINA CBD Water

SinglePoint Inc. (OTCMKTS:SING) Report Exceptional Response For LALPINA CBD Water

SinglePoint Inc. (OTCMKTS:SING) e-commerce
platform SingleSeed.com has received an exceptional response in regard to the
news of American Premium Water Company’s (OTCMKTS:HIPH) LALPINA CBD water.

LALPINA CBD Water leading in sales on SingleSeed
site

The companies are
excited with the response they have so far seen for the demand of LALPINA CBD
Water. The LALPINA CBD water has been a top seller on the platform and has
witnessed multiple reorders. However, on June 20 the site experienced a lot of
traffic leading to its crashing thus causing delays in ordering before the site
could be restored later with more resources being added. The site is offering a
10% discount for convenience on LALPINA CBD Water products throughout the
weekend using the code crash at checkout.

SinglePoint
President Wil Ralston stated that the LALPINA CBD water has been a vital
product on the platform that has had a tremendous response. The response is a
promising opportunity for SIngleSeed.com and LALPINA. Ralston added that the company
is looking forward to continuing its shipping orders and great relationship to
all its customers. He further indicated that the company had solved the delays
caused by the crashing of the website and the company has taken steps to avoid
such an issue.

Relationship with SingleSeed to help in expansion of
LALPINA water line

In recent weeks
the LALPINA CBD water product has been among the top sellers on SingleSeed
resulting in the company ramping up deliveries because of the capability of
SingleSeed to deliver the products to the market. The company indicated that
they foresee the relationship with SingleSeed helping them in the expansion of
the LALPINA water line as well as other CBD products as one of the company’s
most successful e-commerce distribution partners.  

The company is
equally looking to secure other strategic partnerships that could be beneficial
for both companies.

SinglePoint Inc.
is an investment and technology company whose main focus is the acquisition of
companies that will profit from the integration of technology and injection of
growth capital. The company’s product portfolio includes blockchain solutions,
ancillary cannabis services as well as mobile payments. The company provides
cannabis products and services through SingleSeed.

Published at Thu, 27 Jun 2019 12:01:54 +0000

Agraflora Organics International Inc. (OTCMKTS:PUFXF) Provides Updates On Expansion Initiatives Of The Brunswick Bierworks Facilty

Agraflora Organics International Inc. (OTCMKTS:PUFXF) Provides Updates On Expansion Initiatives Of The Brunswick Bierworks Facilty

AgraFlora Organics International Inc. (OTCMKTS:PUFXF) has provided operational guidance as well as retrofit updates
regarding the current expansion initiatives of the Brunswick Bierworks facility
that is located in Toronto. 

Expansion initiative to increase production to 130,000
hl

The expansion
initiative involves an increase of the annual production capacity to around
130,000 hectolitres which is a 305 increase of the previous maximum capacity. The
initiative also involves access to more off-site alternative brewing capacity and
the installation of a CBD-infused drink packaging line that has four, six and
twelve can capability.

The company
expects to commence product formulation and batch testing as from Q3 2019 with
commercial production expected to begin in Q4 2019. There is planned
development of a CBD-infused tasting facility. 
AgraFlora has a partnership agreement with renowned Canadian brewing
Brunswick Bierworks and it holds exclusive formulation, production, and
distribution rights of CBD infused drinks manufactured at Brunswick’s Brewhouse
in Toronto Ontario.

The company and
Brunswick Bierworks are expected to continue pursuing aggressively the
expansion initiatives at the ultra-modern Brewhouse. Once the expansion of the
facility retrofit is completed the total capital expenditures used on the
Brewhouse will be in excess of C$20 million. The Brewhouse that is composed of
a group of experienced brewery associates has so far completed a number of
production runs for renowned European beverage brands like Augustiner, Guinness
and Inner & Gunn.

AgraFlora to leverage Brunswick Bierworks’ proprietary
processing technology

The partnership
between AgraFlora and the Brewhouse put it on the forefront of the CBD beverage
industry in Canada because of the proprietary processing technology of the
Brewhouse that makes it suitable for the development of CBD-infused and
non-alcoholic drinks.

AgraFlora CEO
Brandon Boddy stated that the company’s partnership with Brunswick Bierworks
will help in cementing the company’s position in the CBD-infused drinks sector
in Canada. The company is looking forward to the legalization of cannabis
beverages and edibles in Canada later this year and the partnership solidifies
AgraFlora’s brewing infrastructure distribution relationships and product
development that is necessary for attaining greater market share.

Published at Fri, 28 Jun 2019 12:01:19 +0000

Hempco Food and Fiber Inc. Signs Definitive Agreement with Aurora Cannabis For Acquisition of Remaining Interest in Hempco Food and Fiber

Hempco Food and Fiber Inc. Signs Definitive Agreement with Aurora Cannabis For Acquisition of Remaining Interest in Hempco Food and Fiber

Hempco Food and Fiber Inc. (“Hempco”) (HEMP.V) is pleased to announce that further to the joint news release dated April 16, 2019 with Aurora Cannabis Inc. (“Aurora”) (ACB) (ACB.TO) ( Frankfurt : 21P; WKN: A1C4WM), it has entered into a definitive arrangement agreement (the “Arrangement Agreement”). Subject to the terms and conditions of the Arrangement Agreement, Aurora has agreed to acquire all of the issued and outstanding common shares of Hempco not already owned by it (“Hempco Shares”) in exchange for common shares of Aurora (“Aurora Shares”)(the “Transaction”). Aurora currently owns 32,872,294 Hempco common shares (approximately 51.4% of the issued and outstanding Hempco common shares on an undiluted basis) and a convertible debenture in the face amount of $5,000,000 , which may be converted at any time at Aurora’s election into Hempco common shares at a conversion price of $1.18 per conversion share.  If all of the principal amount of this convertible debenture were converted Aurora would receive an additional 4,237,288 Hempco common shares (approximately 52% on a fully diluted basis, or 54.5% on a partially diluted basis).

Hempco Food and Fiber Inc. (CNW Group/Hempco Food and Fiber Inc.)

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Hempco Food and Fiber Inc. (CNW Group/Hempco Food and Fiber Inc.)

Under the terms of the Arrangement Agreement, Aurora will, upon completion of the Transaction, issue approximately 0.08659 Aurora Shares in exchange for each Hempco Share (the “Exchange Ratio“) not already owned by Aurora.  The Exchange Ratio was based on relative share values of $1.04 per Hempco Share, representing a 14% premium to the share price on April 15, 2019 , and $12.01 per Aurora Share , representing the volume-weighted average price per Aurora Share on the Toronto Stock Exchange for the five-trading-day period ending on April 11, 2019 – the day before the parties signed the binding letter agreement concerning the Transaction .  Hempco shareholders will not receive any cash in the Transaction. In addition, each outstanding stock option to acquire Hempco Shares will, following completion of the Transaction, entitle the holder to receive, upon the exercise thereof, approximately 0.08659 Aurora Shares for each Hempco Share, at a price adjusted in accordance with the Exchange Ratio, and otherwise on the same terms and conditions as the original option or warrant.

Arrangement Overview

The Transaction will be effected by way of a court-approved plan of arrangement under the provisions of the Business Corporations Act ( British Columbia ) (the “Arrangement“).

The board of directors of Hempco (the “Hempco Board“) formed a committee of independent directors (the “Hempco Independent Committee“) to, among other things, review and evaluate the terms of the Transaction, to obtain and supervise the preparation of a formal valuation of the Hempco Shares, to make a recommendation to the Hempco Board in respect of the Transaction, and to negotiate the terms and conditions of the Arrangement Agreement and related matters.

Fort Capital Partners was retained by the Hempco Independent Committee to provide, under the supervision of the Hempco Independent Committee, an independent formal valuation (the “Formal Valuation“) prepared in accordance with Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101“), and has concluded that, based upon and subject to the assumptions, limitations and qualifications contained in its written valuation, as at April 12, 2019 , the fair market value of the Hempco Shares is in the range of C$0.75 to C$1.07 per such share.

Fort Capital Partners has also provided the Hempco Independent Committee and the Hempco Board with a fairness opinion (the “Fairness Opinion“) that, based upon and subject to the assumptions, limitations and qualifications contained in the Fairness Opinion, the consideration to be received by Hempco shareholders pursuant to the Arrangement is fair, from a financial point of view, to such Hempco shareholders.

The Arrangement was unanimously recommended by the Hempco Independent Committee to the Hempco Board.  The Hempco Board (other than directors who are not independent of Aurora accordingly abstained from voting on the transactions contemplated by the Arrangement Agreement), after receiving the unanimous recommendation of the Hempco Independent Committee, as well as the Formal Valuation and the Fairness Opinion, has unanimously determined that the consideration to be received by Hempco shareholders pursuant to the Arrangement is fair from a financial point of view to Hempco shareholders, and that the Arrangement is in the best interests of Hempco. Therefore, the Hempco Board has approved both the Arrangement and the Arrangement Agreement, and recommends that Hempco shareholders vote in favour of the Arrangement.

All of the directors and officers of Hempco (who hold in the aggregate approximately 4.5% of the issued and outstanding Hempco Shares on a non-diluted basis) have entered into support agreements with Aurora pursuant to which they have agreed, among other things, to support the Transaction and vote their Hempco Shares in favour of the Arrangement.

Completion of the Arrangement is subject to approval by the Supreme Court of British Columbia and the affirmative vote of Hempco shareholders at a special meeting of shareholders that is expected to be held on August 13, 2019 (the “Meeting“). At the Meeting, the Arrangement will require approval by at least two-thirds (66⅔%) of the votes cast by Hempco shareholders present in person or represented by proxy and entitled to vote at the Meeting and a majority of the votes cast by Hempco shareholders after excluding the votes cast by certain “related parties”, as such term is defined in MI 61-101. Aurora is such a “related party”.

The Arrangement is subject to customary conditions, including support of the transaction by directors and officers of Hempco and receipt of applicable regulatory and third-party approvals, and consents as may be required to effect and complete the transaction, including approval of the Toronto Stock Exchange and New York Stock Exchange (in respect of Aurora) and the TSX Venture Exchange (in respect of Hempco).  The Arrangement Agreements includes customary provisions, including fiduciary-out provisions – covenants to not solicit other acquisition proposals and the right to match any superior proposal.  In addition, the Arrangement Agreement contains a reciprocal expense reimbursement provision of up to $200,000 payable to the other party if the transaction is terminated in certain circumstances.

Assuming that all requisite approvals are received, Aurora and Hempco expect to close the proposed Arrangement in the third quarter of 2019 or such other date as the parties may agree.  Until closing, Hempco will continue to be managed by the Hempco Board and John Ross , Hempco’s Chief Financial Officer and interim Chief Executive Officer.  Upon completion of the Arrangement, all of the members of the Hempco Board will resign and the current management team of Aurora will manage Hempco after completion of the Arrangement.

The terms of the Arrangement will be described in further detail in the management information circular of Hempco to be filed with regulatory authorities and mailed to Hempco shareholders in July 2019 in accordance with applicable securities laws.

In connection with the Arrangement, the parties have entered into a loan agreement whereby Aurora has agreed to provide to Hempco a loan of up to $4 million to be disbursed in accordance with such loan agreement and a budget agreed to between the parties.

Hempco security holders and other interested parties are advised to read the materials relating to the proposed Arrangement, including the Arrangement Agreement, that will be filed by Hempco with securities regulatory authorities in Canada when they become available.  Anyone may obtain copies of these documents, when available, free of charge, at the Canadian Securities Administrators’ website at www.sedar.com.

About Hempco

For more than 12 years Hempco has been a trusted and respected pioneer, innovator and provider of quality, hemp-based foods, hemp fiber and hemp nutraceuticals. Hempco produces and markets the brands PLANET HEMP™ and PRAISE, hemp-based foods and nutritional supplements for people and animals. Hempco is expanding its processing ability to meet global demands in a 56,000 sq. ft. facility located at Nisku, Alberta . Hempco’s common shares trade on the TSX Venture Exchange under the symbol “HEMP”.

Forward looking statements

This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur.  Forward-looking statements in this news release include, but are not limited to, statements with respect to the anticipated closing of the Arrangement, the anticipated consideration to be received by Hempco shareholders, the timing and satisfaction of closing conditions including: (i) Hempco shareholder approval; (ii) court approval of the Arrangement; (iii) the availability of termination rights available to the parties under the Arrangement Agreement; (iv) stock exchange approval; and (vi) other closing conditions, including, without limitation, the operation and performance of the Hempco business in the ordinary course until the closing of the Arrangement.  These statements are only predictions.  Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.  Forward-looking statements are based on the opinions and estimates of management of Hempco at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Hempco is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

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.

SOURCE Hempco Food and Fiber Inc.

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Authored By

Anthony Varrell

Anthony Varrell is Managing Director 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 Fri, 28 Jun 2019 12:10:34 +0000

Dixie Brands Announces New OTCQX Listing, DTC Eligibility

Dixie Brands Announces New OTCQX Listing, DTC Eligibility

DENVER, June 26, 2019 /CNW/ – Dixie Brands Inc. (“Dixie” or “the Company”) (CSE: DIXI.U), (OTCQX: DXBRF), (Frankfurt: 0QV), one of the cannabis industry’s leading consumer packaged goods companies, has announced that its subordinate voting shares will commence trading on the OTCQX® Best Market beginning today, under the symbol DXBRF. While the Company currently trades under the symbol “DXBRF,” it has submitted a request to FINRA to change its symbol to more closely align with its CSE trading symbol, DIXI.U.

Dixie also announced that its shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. DTC services provide cost benefits for investors and brokers trading Canadian securities in the United States.

“Trading our shares in our home market, where Dixie’s brand recognition is strongest and most of our earliest investors reside, is an important step for our company,” said Chuck Smith, President and CEO, Dixie. “We expect the trading on OTCQX and DTC eligibility to enhance our liquidity and exposure in U.S. capital markets as we continue to execute on our growth strategy.”

The OTCQX® Best Market offers established companies the advantages of being publicly traded in the U.S. with lower cost and complexity than a U.S. exchange listing. Investors benefit from convenient trading through their preferred broker or financial advisor, transparent pricing with real-time quotes, and trusted disclosure that is made broadly available to broker-dealers and market data providers. To qualify for the OTCQX market, companies must meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws and meet certain other requirements. Investors can find information and trading statistics on Dixie at https://www.otcmarkets.com.

ABOUT DIXIE BRANDS, INC

Dixie Brands Inc., through its licensed partners, has been formulating award-winning THC and CBD-infused products since 2009.  Currently operating in six U.S. states, the Company is expecting to double its manufacturing and distribution capabilities in 2019 in the U.S. as well as expand internationally, including Canada and Latin America. Dixie leads the global industry in the development, packaging design, product innovation and quality control for the commercial production of cannabis infused products. While the Company started with a single flagship product, the Dixie Elixir (a THC-infused soda), it is now one of the industry’s most recognized consumer brands, expanding to over 100 products across more than 15 different product categories representing the industry’s finest edibles, tinctures, topicals and connoisseur grade extractions, as well as world-class CBD-infused wellness products and pet dietary supplements. Dixie’s executive team has been instrumental in the formation of the marijuana industry for recreational and medicinal use, serving as founding members on several national regulatory and business-oriented industry organizations. To find out more about Dixie’s innovative products, or about how Dixie is building the future of cannabis, visit www.dixiebrands.com.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

The information provided in this press release may contain “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. All statements, other than statements of historical fact, made by the Company (or its predecessors) that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements, including, but not limited to, statements preceded by, followed by or that include words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Forward-looking statements may relate to future financial conditions, results of operations, plans, objectives, performance or business developments. These statements speak only as at the date they are made and are based on information currently available and on current expectations and assumptions concerning future events, which are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from that which was expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: (i) the regulation of the medical and recreational marijuana industry in the United States, Canada, Mexico, Australia, New Zealand, Latin America and other countries in which the Company may carry on its business; (ii) the ability of the Company to obtain meaningful consumer acceptance and a successful market for its products on a national and international basis at competitive prices; (iii) the ability of the Company to develop and maintain an effective sales network; (iv) the success of the Company in forecasting demand for its products or services; (v) the ability of the Company to maintain pricing and thereby maintain adequate profit margins; (vi) the ability of the Company to achieve adequate intellectual property protection; (vii) the availability of financing opportunities, risks associated with economic conditions, dependence on management and conflicts of interest; and (viii) other risks described from time to time in documents filed by the Company with securities regulatory authorities, including the Company’s listing statement dated November 23, 2018.

The forward-looking statements contained herein are based on certain key expectations and assumptions, including that: (i) there will be no material adverse competitive or technological change in condition of the Company’s business; (ii) there will be a demand for the Company’s products that the Company has accurately forecast; and (iii) there will be no material adverse change in the Company’s operations, business or in any governmental regulation affecting the Company or its suppliers.

With respect to the forward-looking statements contained herein, although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements as no assurance can be given that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including the risks described above. Consequently, all forward-looking statements made in this press release are qualified by such cautionary statements and there can be no assurance that the anticipated results or developments will actually be realized or, even if realized, that they will have the expected consequences to or effects on the Company. The cautionary statements contained or referred to herein should be considered in connection with any subsequent written or oral forward-looking statements that the Company and/or persons acting on the Company’s behalf may issue. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required under securities legislation.

The CSE has neither approved nor disapproved the contents of this news release.

SOURCE Dixie Brands, Inc.

Published at Wed, 26 Jun 2019 14:57:04 +0000

Veritas Farms Announces 2019 Outdoor Planting Season Improvements and Anticipated 5x Hemp Flower Production Increase

Veritas Farms Announces 2019 Outdoor Planting Season Improvements and Anticipated 5x Hemp Flower Production Increase

Veritas Farms, Inc. (OTCQB: VFRM), a vertically integrated agribusiness focused on the production of full spectrum hemp extracts with naturally occurring cannabinoids, is pleased to announce that the Company has made several significant improvements to its farming infrastructure and operations at its Colorado farm that are expected to increase overall hemp flower production by up to five times for the current 2019 outdoor planting season.

Alexander M. Salgado, CEO and co-founder of Veritas Farms: “Over the past twelve months, Veritas Farms has continued to evolve into a leading vertically integrated hemp extract products company.  For us to keep pace with visible demand and our anticipated growth, under the guidance of our new V.P. of Agriculture, Spencer Fuller, some key enhancements were made to our farming infrastructure and processes to expand and improve our hemp crop yields, including more than doubling our total planted area.”

Spencer Fuller, V.P. of Agriculture at Veritas Farms, added, “Since joining the Company earlier this year, our team has worked tirelessly to evaluate, design, and implement improvements that will produce consistently higher volumes of the proprietary strains of industrial hemp used to produce Veritas Farms whole plant hemp oil products.

“To accomplish this goal, we made several infrastructure and operational changes at our Colorado farm including amending our fields with Organic Materials Review Institute certified products and implementing subsurface irrigation.  We expect these changes will improve the overall health and quality of the soil, and will also help increase the cannabinoid, terpene content as well as floral yield.

“Another significant upgrade made for the 2019 season is that we will now be planting four highly productive proprietary varieties of hemp.  The superior genetics and plant characteristics of these new strains combined with the other improvements are expected to increase Veritas’ overall production of oil rich dried hemp flower by up to five times.”

Mr. Salgado concluded, “As a totally vertically integrated hemp company, the quality of our all-natural hemp extract products starts with our hemp farming operations in Colorado.  With the 2019 outdoor hemp crop set to be our largest ever, the Company will be strongly positioned to manufacture even greater volumes of Veritas Farms brand hemp extract products for sale through our growing network of retailers and distributors.”

Veritas Farms™ brand full-spectrum hemp extract products can be found at several leading online and brick-and-mortar retailers across the United States.

For a complete listing of retailers and to purchase Veritas Farms products online, visit www.theveritasfarms.com.

About Veritas Farms, Inc.

Veritas Farms, Inc. (OTCQB: VFRM) is a vertically integrated agribusiness focused on producing superior quality, whole plant, full spectrum hemp oils and extracts containing naturally occurring cannabinoids.  The Company currently operates a 140-acre farm and production facilities in Pueblo, Colorado, and is registered with the Colorado Department of Agriculture to grow industrial hemp.  The Company markets and sells products under its Veritas Farms™ brand and manufactures private label products for a number of leading distributors and retailers.

Veritas Farms™ brand full spectrum hemp extract products include vegan capsules, tinctures, formulations for sublingual applications and infused edibles, lotions, salves, and oral syringes in a variety of size formats and flavors.  All Veritas Farms™ brand products are third-party laboratory tested for strength and purity.  The Company files periodic reports with the Securities and Exchange Commission, which can be viewed at www.sec.gov.

For additional information and online product purchase, visit www.theveritasfarms.com.

Veritas Farms, Inc. – Investor Contact
Toll-Free: (888) 549-7888
E-mail: ir@theveritasfarms.com

Veritas Farms, Inc. – Social Media
Instagram:  www.instagram.com/veritasfarmsofficial/
Facebook: www.facebook.com/VeritasFarmsOfficial/
LinkedIn: www.linkedin.com/company/veritasfarms/
Twitter: www.twitter.com/theveritasfarms

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  All statements, other than statements of historical fact, including those with respect to the Company’s mission statement and growth strategy, are “forward-looking statements.”  Although the Company’s management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct.  These forward-looking statements involve many risks and uncertainties, which could cause the Company’s future results to differ materially from those anticipated.  Potential risks and uncertainties include, among others, general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; and the ability to obtain necessary financing on acceptable terms or at all.  Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with the Securities and Exchange Commission.  The Company assumes no obligation to update any of the information contained or referenced in this press release.

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Published at Thu, 27 Jun 2019 11:50:46 +0000

Dixie Brands Announces OTCQX Listing and DTC Eligibility

Dixie Brands Announces OTCQX Listing and DTC Eligibility

PHOENIX, June 26, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — PRESS RELEASE — SinglePoint has announced that it has signed a $109,465,000 contract with Elite Foundation LLC of North Carolina to supply more than 275,000 pounds of premium hemp flower over a period of 15 months.The initial 1,000 pounds of product has been approved and purchased.

The contract is the first major deal arising from the previously announced supply chain and co-selling agreement with Oregon-based Easy Street Services Company and J&J Empire, LLC. SinglePoint stands to make a large profit in the deal. Company management believes this deal along with the major success in solar provides the basis to move up to a listed exchange such as the NASDAQ or the NYSE.

According to President Wil Ralston, “Our team, specifically our VP of Sales Don Smith, has worked tirelessly to make this a reality. We believe this is the catalyst toward closing a stream of substantial deals in our pipeline. Not long ago, SinglePoint made a significant commitment to be a major provider in the industrial hemp space; this agreement solidifies our place in the industry. In addition to raw material supply we are negotiating distribution agreements to place finished goods in retail stores. There is a lot of opportunity in this burgeoning market and we are getting in everywhere we can. Our newest team member, Don Smith, is a leader in these efforts.”

Smith has extensive experience in building startup companies that explode within emerging markets. Prior to joining SinglePoint, Smith spent eight years focused on the advancements in organic sustainable food industry and its applications to the cultivation and growth of the legal cannabis business. In that time, he co-invented a “vertical cultivation” device, the invention and successful hydroponics business was sold to Greengro Technologies, Inc., where Smith served in various capacities including chairman and CEO.

“I am elated to have closed this deal. It has been a long series of negotiations and we have arrived at a point where everyone is happy and has made the first purchase. We are working multiple other deals that are in the pipeline for additional hemp flower product to other buyers as well,” states Smith.

BDS Analytics and Arcview Market Research project that the collective market for CBD sales in the U.S. will surpass $20 billion by 2024 while New York-based investment bank Cowen & Co, estimates that the market could pull in $15 billion by 2025. The smokable hemp market currently represents approximately 2 percent of the overall CBD market, but with a 250 percent growth from 2017 to 2018, Brightfield Group, a Chicago-based cannabis market research firm, identifies dried and smokable hemp flowers as one of the fastest-growing segments of the CBD market. SinglePoint’s bold entry into the hemp flower market positions the company as one of the leading hemp flower wholesalers in the country.

Published at Wed, 26 Jun 2019 20:43:00 +0000

Fire & Flower Announces First Quarter 2019 Financial and Operational Results

Fire & Flower Announces First Quarter 2019 Financial and Operational Results

Fire & Flower Holdings Corp. (TSXV: FAF), today announced its financial and operational results for the thirteen weeks ended May 4, 2019.

Financial and Operational Highlights for the thirteen weeks ended May 4, 2019

  • System sales of $10,895,626 and recognized revenue of $9,538,348 at a gross margin of 38.5%, compared to $Nil for the thirteen weeks ended May 5, 2018.
  • 17 branded cannabis retail stores operating system-wide across the provinces of Alberta, Saskatchewan and Ontario.
  • Received $34,544,793 of net proceeds from the private placement which closed on November 1, 2018, upon completion of the Company’s Qualifying Transaction and subsequently became listed on the TSX Venture Exchange.

Subsequent Financial and Operational Highlights post May 4, 2019

  • On May 14, 2019, acquired 4 retail cannabis store licenses in Saskatchewan.
  • On May 28, 2019, acquired 2 licenced retail cannabis stores in Vancouver, British Columbia and intends to open these stores at its earliest opportunity.
  • On May 29, 2019, acquired a proposed cannabis retail store in the town of Banff, Alberta.
  • On June 6, 2019 Fire & Flower announced a bought deal private placement for total gross proceeds of $25,000,000 with an agents’ option for additional gross proceeds up to $5,000,000.
  • On June 9, 2019, achieved system sales of $25,000,000.

“These results provide a solid foundation upon which Fire & Flower will continue to execute on our growth strategy. Our growth plan is well funded and in addition to the strength of our retail network, we have set ourselves apart as a modern retail company through the Hifyre digital cannabis platform that is reflective in our financial performance” shared Trevor Fencott, Fire & Flower’s Chief Executive Officer.

Selected Summary of Quarterly Results

Statement of Loss and Comprehensive Loss

Q1 2019

Q1 2018

$

%

(in thousands of dollars, except per share amounts)

Ended

Ended

Change

change

4-May-19

5-May-18

Revenue

$ 9,538

$ –

$ 9,538

NM

Cost of goods sold

5,870

5,870

NM

Gross margin

3,668

3,668

NM

Expenses

8,962

2,470

6,492

>100%

Other expenses

(11,763)

(11,763)

NM

Net loss and comprehensive loss

(17,058)

(2,470)

(14,587)

>100%

Net loss per share, basic and diluted

$   (0.17)

$   (0.05)

NM – Not meaningful

During the thirteen weeks ended May 4, 2019, the Company generated revenue of $9.5 million including cannabis and cannabis-related accessory sales of $9.0 million and digital development revenue of $0.5 million. Revenues are expected to continue to increase as the Company acquires new licences and opens additional retail cannabis stores, subject to the issuance of new licenses and the entry of the Company into markets that permit private cannabis retail stores.

Total gross profit for the thirteen weeks ended May 4, 2019 was $3.7 million or 38.5% of revenue with retail and wholesale operations delivering $3.2M, or 35.6%, gross profit. Excluding digital development revenue, gross profit for the thirteen weeks ended May 4, 2019 was $3.2 million or 35.6% of the corresponding revenue.

The Company’s major expenses incurred during the thirteen weeks ended May 4, 2019 are related to salaries and benefits of $3.3 million, depreciation and amortization of $1.5 million, share based payment of $1.3 million, consulting and professional fees of $1.3 million and $0.7 million in other operating costs.

Included in other expense primarily is a $9.0 million charge related to the amendment of the Company’s convertible debentures in order to maintain compliance with various provincial regulations relating to the ownership of a cannabis retail licensee by a cannabis licensed producer and $1.8 million for costs associated with the Qualifying Transaction.

The Company recorded a net comprehensive loss of $17.1 million, or a net loss per share of $0.17.

Retail Operations Update

The Company intends to establish the leading brand of cannabis retail stores in provinces across Canada where private retail is permitted. There are currently 21 licensed Fire & Flower branded stores operating across Alberta, Saskatchewan and Ontario. The Company will continue to refine its retail experience using consumer insights collected within the Hifyre digital cannabis platform.

Hifyre Digital Cannabis Retail Platform

The Company continues to develop and commercialize the Hifyre digital cannabis platform that collects and analyzes consumer data to develop insights around purchase preferences. The Hifyre platform provides real time reporting and analysis to the Company’s marketing, retail experience and merchandising teams and is supplied to Licensed Producers to assist in demand forecasting, product development and sales reporting.

Fire & Flower’s financial statements and management discussion and analysis for the period are available on Fire & Flower’s SEDAR profile at www.sedar.com and on Fire & Flower’s website at www.fireandflower.com/investor-relations/.

About Fire & Flower

Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HiFyre digital platform connects consumers with cannabis products. Fire & Flower’s leadership team combines extensive experience in the cannabis industry with strong capabilities in retail operations.

Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc., a licensed cannabis retailer in the provinces of Alberta and Saskatchewanand is a consultant and licensor to Fire & Flower-branded retail locations in province of Ontario.

(1)  From the February 2 to February 9, 2019, Fire & Flower was known as Cinaport Acquisition Corp. II. On February 13, 2019 Fire & Flower completed its Qualifying Transaction by way of a three-cornered amalgamation, pursuant to which 11048449 Canada Inc., a wholly-owned subsidiary of Fire & Flower amalgamated with Fire & Flower Inc. (“Pre QT F&F”) to form the company now known as Fire & Flower Inc. (“Post QT F&F”). All references herein to the “Company” or “Fire & Flower” refer to Fire & Flower, Pre QT F&F, Post QT F&F and all subsidiaries thereof on a consolidated basis.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions.

Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to the Fire & Flower.  Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements.  Forward-looking statements are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Fire & Flower, which may cause Fire & Flower‘s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct.

Fire & Flower assumes no obligation to publicly update or revise forward-looking statements to reflect new information, future events or otherwise, except as expressly required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Fire & Flower Holdings Corp.

View original content: http://www.newswire.ca/en/releases/archive/June2019/26/c2850.html

Investor Relations, Chris Bolivar, Vice President, Brand and Marketing, investorrelations@fireandflower.com, 1-833-680-4948; Media Relations: Nathan Mison, Vice President, Government and Stakeholder Relations, nmison@fireandflower.com, 780-953-1106Copyright CNW Group 2019

Published at Wed, 26 Jun 2019 11:04:57 +0000

Canadian Pot Supply: Why Temporary Glut Can Be Expected To Vanish

Canadian Pot Supply: Why Temporary Glut Can Be Expected To Vanish

  • Build-up of cannabis inventories in Canada is 100% due to the failure of the provinces to provide sufficient retail access to consumers
  • Ontario (Canada’s largest province) more than doubled provincial sales in one month (145% increase) with only “a handful of stores”
  • In Alberta, lack of supply has delayed additional store openings
  • Inventories can be expected to decline as new retail store openings ease bottleneck for consumers 

Pot inventories are building up among Canadian LP’s. For investors who want to understand what is happening (and how this impacts the cannabis sector) it’s best to steer well clear of mainstream media sources like BNN Bloomberg.

It mutilated the truth with a recent headline.
 

Surplus of unsold cannabis may lead to industry-wide writedowns: BMO

First the actual facts.
 

As of March there were more than 150,000 kilograms [330,000 pounds] of unfinished inventory – defined by regulators as cannabis that is not packaged, labelled or ready for sale – held by Canadian pot companies, according to the most recent Health Canada figures. That’s up from about 101,000 kilograms on Oct. 17, 2018, the first day of legalization.

Let’s put these numbers into context, something BNN Bloomberg made no effort to do. Here’s what a real oversupply problem looks like in the cannabis industry, via recent reporting from TSI.
 

Oregon has a population of less than 3.5 million adults. But it’s currently sitting with approximately 1.3 million pounds of unsold cannabis that is “literally withering and rotting away in storage”.

It gets worse.

According to Adam Smith, founder/director of Craft Cannabis Alliance – and one of the bill’s co-authors – half of Oregon’s pot-consuming adults “get their weed for free from friends and family”.

Oregon has roughly 1/10th the population of Canada, but half of those potential consumers “get their weed for free”. Yet the state is sitting on four times as much unsold pot as all of Canada.

That’s 40 times as much unsold weed on a per capita basis, with half as much per capita demand. That’s 80 times as bad as Canada’s “supply problem”.

Why are inventories of cannabis building up in Canada at all? Here BNN Bloomberg and its experts profess complete ignorance.
 

“What remains unclear is why the planting of recently licensed grow rooms has not been meaningfully offset by the conversion of prior months’ unfinished inventory into finished products for sale to provincial distributors given the apparent supply shortage in retail channels,” the analysts wrote.

Here’s a suggestion to help the BMO “analysts”. Open your eyes.

It’s perfectly clear why retail cannabis sales in Canada have fallen short of expectations in the opening months of national legalization: provincial incompetence. Canadian pot inventories would almost certainly have fallen, not risen if Canada’s provinces had rolled out legal cannabis more effectively.

This can be shown with (you guessed it) more facts. A quick look at the best and worst province in rolling out legal cannabis illustrates this point.

The province of Alberta (population 4.1 million) leads the way in cannabis legalization. The provincial government has set a first-year goal of licensing 250 cannabis retail outlets. Roughly 100 have already been opened, and new dispensaries are sprouting up each week.

Then there is Ontario, Canada’s largest province, with a population of 14+ million. It took the provincial government 6 months from legalization (April 1, 2019) to open its first legal dispensary. As of today, there are only 11 in the entire province.

New numbers just released show how badly the failure of just this one provincial government has impacted the legal cannabis industry in Canada. TSI has already crunched these numbers.

In the month of April, with only “a few stores” open to sell cannabis across the entire province, retail sales more than doubled in a single month from >CAD$8 million to CAD$19.6 million, a month-over-month increase of 145%.


(Ontario cannabis consumers flock to new dispensary on opening day)

What would those monthly sales numbers look like in Ontario if the province had 100 legal cannabis dispensaries open for business rather than a mere 11? It would be overly simplistic to do a straight-line projection and suggest that Ontario would already be registering $200 million per month in cannabis sales ($2.4 billion per annum).

Clearly, however, if the government of Ontario had even approached the efficiency of Alberta, then Ontario’s monthly cannabis revenues today would be much closer to $200 million per month than the roughly $20 million recorded in April.

Apparently, this dynamic is not only invisible to BNN Bloomberg (and its “experts”), it’s something that is not remotely understood. TSI has educated investors on this in a previous article.
 

When regular cannabis consumers purchase cannabis – either medicinally or recreationally – they want to shop in person, like they do when purchasing fresh produce. This means retail storefronts.

There is a second reason why cannabis consumers have a strong preference for shopping in person rather than online. Discretion.

Thanks to a century of cannabis Prohibition, many public and private sector employers still harbor irrational phobias and prejudice towards cannabis. They ban their employees from consuming cannabis even after working hours.

Consider the impact on the cannabis inventories of Canadian LP’s if current cannabis sales in Ontario were well in excess of CAD$100 million per month as opposed to less than CAD$20 million.

If we assume an average selling price of roughly CAD $15 per gram, Ontario’s legal cannabis dispensaries would be selling an extra 5,000+ kilograms per month of cannabis. That would have taken a large bite out of the 150,000 kilograms in total inventories.

Put another way, if Ontario had fully opened up the province to cannabis commerce on Day 1 of national legalization, by itself that could have accounted for the entire build-up in Canadian inventories from the initial 100,000 kilograms for sale last October.

Indeed, if all Canadian provinces had rolled out legal cannabis retail stores promptly and efficiently last October, Canadian cannabis inventories would have been expected to fall substantially. This was the consensus projection before legalization.

Ironically, this was published by Bloomberg in October 2018.
 

Canada Is Facing a Shortage of Legal Weed

Why should Canadian cannabis companies (and Canadian cannabis investors) expect “industry-wide writedowns” due to a temporary surge in cannabis inventories?

The BMO analysts cite anonymous “producers” and claim that a “sizable amount” of this inventory may “fall short of quality requirements”. No specifics are offered. No evidence is offered.

Yellow journalism.

Even if there were any legitimate numbers behind the insinuations published by BNN Bloomberg, as noted above, the supply/demand picture varies widely in Canada province to province. Alberta LP’s are selling their cannabis as fast as they can grow it – thanks to an efficient roll-out by that province’s government. There would be even more cannabis stores open in Alberta today if not for a “supply shortage”.

Why should Alberta growers expect write-downs on inventories that don’t exist?

There is no reason why any competent media entity should be engaging in such irresponsible business reporting. This is especially true given that this temporary glut is entirely due to administrative and regulatory failure and is in no way a reflection of supply/demand fundamentals.

Thanks to the abject failure of Ontario’s government and similar failures in other Canadian provinces, in 2019 it’s estimated that 72% of recreational cannabis sales will continue to take place on the black market. This is despite the fact that “displacing the illicit market” is (supposedly) one of the top priorities of the Canadian government.

How do you “displace” the black market for cannabis when there is practically no place for consumers to shop for legal cannabis? You don’t.

British Columbia is another provincial government that has failed on this front. There is only one legal dispensary to service the entire downtown Vancouver area (Metro Vancouver population: 2.5 million).

Canadians want legal cannabis. Canadian cannabis companies are trying to sell this cannabis to them.

Standing in the way are Canada’s provincial governments (at least most of them). As these bumbling governments get out of the way, cannabis sales from legal dispensaries can be expected to skyrocket – as we’ve now seen in Ontario.

That’s the real story for cannabis investors today. And it reads much better than the anti-cannabis fairy tales from BNN Bloomberg.

Published at Tue, 25 Jun 2019 22:12:58 +0000