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Hawthorne Gardening Company Announces the First DesignLights Consortium Listing for Gavita LED Lighting Fixtures

Hawthorne Gardening Company Announces the First DesignLights Consortium Listing for Gavita LED Lighting Fixtures

U.S. Rep. Ed Perlmutter and three other representatives who co-sponsored the Secure and Fair Enforcement (SAFE) Banking Act submitted a letter to Senate committee chairman Mike Crapo Jan. 21 to address his concerns about the legislation and to urge him to approve the bill.

In comments released Dec. 18, Crapo, chairman of the Senate Committee on Banking, Housing and Urban Affairs, recommended that lawmakers add public health and safety requirements to the bill, including a potential 2% THC limit on cannabis products and a requirement for companies to disclose product potency as a prerequisite to obtaining financial services from banks, according to The Denver Post.

Crapo also suggested including regulations in the legislation that would prevent “bad actors” from laundering money through banks, the news outlet reported.

The lead sponsors of the SAFE Banking Act, Reps. Steve Stivers (R-OH), Denny Heck (D-WA) and Warren Davidson (R-OH), have remained hesitant to expand the SAFE Banking Act, writing in their letter that, “The primary objective of our bill is to address public safety concerns resulting from marijuana-related transactions being forced outside the regulated banking system.”

The legislators expressed that they must be cautious about “adding limitations to the legislation’s safe harbor that impose unworkable burdens on financial institutions, or would jeopardize the larger, bipartisan effort to address public safety concerns associated with cash-only transactions,” and reiterated, “Our bill is about safety. It does not change the legal status of marijuana and is focused solely on taking cash off the streets and aligning federal banking laws with the decisions states are already making regarding cannabis.”

Sen. Cory Gardner (R-CO), a co-sponsor of the SAFE Banking Act in the Senate, has had several discussions with Crapo regarding the legislation, The Denver Post reported.

“It’s no secret that I, too, was opposed to marijuana legalization in Colorado,” Gardner said in a public statement. “But the people of Colorado chose to try a new approach to legal cannabis, and the sky is not falling. Seven years later, 95% of the United States’ population lives in a state with some form of legal cannabis. Every day that Congress continues to ignore reality, unintended negative consequences pile up for legitimate businesses—both in the cannabis industry and outside it.”

The House passed the SAFE Banking Act in September in a historic vote of 321-103. The bill would ultimately provide a safe harbor for financial institutions that work with cannabis clients, effectively opening the door to formal banking relationships in the industry.

Published at Thu, 23 Jan 2020 21:30:00 +0000

Searching for Big Money in the Cannabis Patch (TLRY, TMGI, ACB, CURLF)

Searching for Big Money in the Cannabis Patch (TLRY, TMGI, ACB, CURLF)

The cannabis bear has been roaring for a year now. But 2020 has sparked a sense of renewed hope for the patch, and we wanted to take a look at a few possible ideas for taking advantage, and pass our judgement on each in turn: Tilray Inc (NASDAQ:TLRY), Marquie Group Inc (OTCMKTS:TMGI), Aurora Cannabis Inc (NYSE:ACB), Curaleaf Holdings Inc (OTCMKTS:CURLF).

Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. That said, it has been trashed by the market since topping its squeeze in September 2018 near $300. The reason for all the pain is that the company is running out of money because of how expensive it is to service its debt.

That’s a deadly conundrum for a company in a commodity market – which is the best way to think about cannabis and cannabis-related markets.

The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada.

According to the company’s IPO announcement, “Tilray, Inc., a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, today announced the pricing of its initial public offering of 9,000,000 shares of Class 2 common stock. 6,524,000 shares of Class 2 common stock will be offered in the United States and certain other countries except Canada at a price to the public of US$17.00 per share for a total offering size of US$110,908,000 and 2,476,000 shares of Class 2 common stock, which we refer to as Subordinate Voting Shares, will be offered in Canada and certain other countries except the United States at a price to the public of CAD$22.451 per share for a total offering size of CAD$55,586,200. Based on current exchange rate1, the total combined offering size is approximately US$153,000,000.00.”

One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

In addition, High Park has developed new brands and products for the Canadian market. Upon the coming into force of federal legalization of cannabis for adult-use and corresponding provincial legislation, High Park anticipates fulfilling adult-use supply agreements and purchase orders in Quebec, Ontario, British Columbia, Manitoba, Nova Scotia, Prince Edward Island, Northwest Territories and Yukon on October 17, 2018.

Even in light of this news, TLRY hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -8%. 

Tilray Inc (NASDAQ:TLRY) pulled in sales of $51.1M in its last reported quarterly financials, representing top line growth of 408.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($122.4M against $130.2M, respectively). But the debt-servicing costs are the problem here, as is the company’s lack of competitive traction. Pass.

Marquie Group Inc (OTCMKTS:TMGI) is a clear emerging leadership play in the CBD space, so it deserves acknowledgement here in this group. 

The company just put out word that it is setting to launch its own branded line of premium CBD tinctures, which could be huge given that the company boasts undeniable expertise in attacking the market for women aged 35-49 – which also happens to be the biggest demographic component of the CBD products marketplace.

While the stock hasn’t yet started to gain traction with traders, the company boasts top talent in the health and beauty space coming together with the concept of the huge growth anticipated in CBD. Much of that promise springs from its leader, Jacquie Carter Angell, who has established an internationally recognized personal brand as a beauty expert, appearing in television, radio, magazine, newspaper and media events around the world. 

According to the company, during that time, she has partnered with celebrities, Olympic athletes, doctors, nutritionists and Nobel Prize laureates in brand-building and marketing health and beauty products to women in more than 90 countries. “The CBD market has grown exponentially, evolving from the virtually unknown, to a marketplace where consumer perception and expectations are on the rise. A lesser-known fact is that the largest consumer for CBD products is women between 35-49 years of age,” commented Jacquie Carter Angell, President of The Marquie Group. “We have predicated the majority of the packaging, branding, marketing, and digital identity around this fact in a manner that positions Whim with far less direct niche-level competition than other CBD product brands.”

Marquie Group Inc (OTCMKTS:TMGI) bills itself as company led by former Director of Worldwide Training and Education for Herbalife Nutrition, Jacquie Carter Angell. It is a direct-to-consumer health and beauty products platform with a pipeline of innovative solutions to pervasive wellness concerns: anxiety, anti-aging, low energy, sleeplessness, and stress that use advanced formulations of plant-based, amino-acids and CBD alternatives to chemical ingredients. 

All products will feature unique formulations of top-quality ingredients meant to impart skin health that comes from improved amino-acid balance and CBD nutrition.

The Marquie Group owns and operates two businesses: Music of Your Life, Inc, the nation’s longest-running, nationally syndicated music radio network broadcast nationwide and internationally to a worldwide audience on the Internet, and Global Nutrition Experience, Inc. (GNX), an intellectual property licensing and development corporation.

Products planned for a 2020 launch include facial skin care serums, a powerful amino acid infused collagen drink and custom blended CBD tinctures each with their own potent puree of nature’s finest fruits, flowers and herbs. Each one is uniquely developed to provide optimal sleep and relaxation, mental focus and clarity or beauty and antioxidant benefits via an array of plant- based ingredients formulated to enhance one’s Inner Health and Outer Beauty.

Aurora Cannabis Inc (NYSE:ACB) has shown us a line of evidence in its strategic moves over the past 24 months to clearly signal that it wants to be a major player in the CBD boom.

For example, in 2017, the company invested in Hempco, a Vancouver-based maker of hemp-based foods, hemp fiber, and hemp nutraceuticals. Hempco also supplied Aurora with raw hemp for extracting CBD. ACB bought the rest of Hempco three months later.

The company next acquired Agropro, Europe’s largest producer, processor, and supplier of certified organic hemp and hemp products. At the same time, Aurora acquired Agropro’s sister company Borela, which processes and distributes organic hulled hemp seeds, hemp seed protein, hemp flour, and hemp seed oil.

Just after that, in late 2018, Aurora acquired ICC Labs, which claims leadership in the South American hemp CBD market, with a large-scale extraction facility that can process 150,000 kg of CBD feed annually.

That’s three big M&A moves in the past 30 months with one clear goal: to capture major market share in the CBD space. And it spans three different continent. This is a company on a mission and investors who believe in the larger growth thesis should take note now.

Aurora Cannabis Inc (NYSE:ACB) managed to rope in revenues totaling $98.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 416.7%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($362M against $436.4M, respectively).

Curaleaf Holdings Inc (OTCMKTS:CURLF) is another primarily cannabis name to make clear moves toward the CBD space. This is likely to be linked with its existing distribution footprint, which keeps expanding by the month.

As a case in point, the company recently announced the opening of its 28th Florida dispensary at 1435 South Tamiami Trail in Sarasota. Curaleaf has the largest cannabis dispensary footprint in the US with 51 dispensaries across the country, and continues to execute on its strategy of rapid expansion in Florida.

“We are proud to deliver upon our commitment to expand our Florida footprint, providing patients with access to Curaleaf’s premium medical cannabis products and educational resources, and serving the Sarasota community 7 days a week,” said Pablo Arizmendi-Kalb, President of Curaleaf Florida.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. 

The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states. 

Curaleaf, Inc. operates 30 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy. 

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

Shares of the stock have powered higher over the past month, rallying roughly 23% in that time on strong overall action. 

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $81.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 192.3%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($120.8M against $98.5M).

Published at Thu, 23 Jan 2020 14:09:06 +0000

InMed First To Take Cannabinol To Clinical Trials

InMed First To Take Cannabinol To Clinical Trials

InMed Pharmaceuticals (CAN:IN / US:IMLFF) has become the first company to conduct human clinical trials involving the rare cannabinoid, cannabinol (CBN). InMed is using cannabinol as the active ingredient in two cannabis-based drug product candidates.

On January 20, 2020; InMed announced that INM-755 (for epidermolysis bullosa) and INM-088 (for glaucoma) both feature CBN as the active ingredient. CEO Eric Adams framed this for investors.
 

“We are proud to be the first company to investigate cannabinol’s therapeutic potential in human clinical trials. InMed has completed more than 30 preclinical pharmacology and toxicology studies, identifying potential therapeutic advantages of CBN in specific disease models over the more common cannabinoids THC and CBD, as well as other rare variants.

We are simultaneously exploring innovative biosynthetic manufacturing methods and therapeutic applications of CBN formulations to target diseases with high unmet medical need.”

The cannabis plant contains roughly 100 known cannabinoids. However, most of these cannabinoids are only found in trace amounts. This has made studying the therapeutic potential of these rare cannabinoids nearly impossible using conventional scientific means.

InMed has proprietary technology that allows the company to isolate and study these rare cannabinoids. It is also pioneering a means for synthesizing these rare cannabinoids so that they can become practical for commercial applications.

INM-755 is InMed’s lead dermatological product for the treatment of epidermolysis bullosa (EB). EB is a rare genetic skin disease that can lead to extensive wounds and blistering.

INM-755, a topical cream, is being tested to treat the inflammation and pain that accompanies EB. InMed also believes that INM-755 has the potential to “enhance skin integrity” for some EB patients.

Shares in InMed jumped ovber 50% on the news to CAD$0.375. The stock is currently trading at CAD$0.32.

With medicinal cannabis already being widely prescribed for the treatment of hundreds of medical conditions, The Seed Investor sees enormous potential for cannabis biopharma.

The global pharmaceutical industry represents roughly a $1 trillion per year revenue pie. But many of the drugs currently in commercial use carry high user risks of serious (sometimes life-threatening) side effects.

Cannabinoids are produced naturally in the human body. For this reason, cannabinoid-based drugs exhibit a remarkably benign safety/tolerance profile. This makes cannabinoid-based drugs eligible for fast-tracking through the clinical trials process.

As InMed (and other cannabis companies) advance cannabinoid-based drugs through the clinical trials process, cannabis investors will want to keep an eye out for opportunities on this front.

DISCLOSURE: The writer holds shares in InMed Pharmaceuticals.
 

Published at Wed, 22 Jan 2020 18:12:59 +0000

YIELD GROWTH Subsidiary Flourish Mushroom Labs Signs LOI to Purchase Interest in Translational Life Sciences Inc.

YIELD GROWTH Subsidiary Flourish Mushroom Labs Signs LOI to Purchase Interest in Translational Life Sciences Inc.

The Yield Growth Corp. (CSE: BOSS) (OTCQB: BOSQF) (FSE: YG3) announces its subsidiary Flourish Mushroom Labs Inc. has entered into an agreement to acquire approximately 18% of the outstanding stock of Translational Life Sciences Inc. (“TLS”).


Flourish Mushroom Labs

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TLS aims to develop proprietary formulations using restricted substances to focus on unmet medical needs in opioid dependence, psychotic illness, pain management and traumatic brain injury, including concussion. The company also offers services to design and oversee clinical trials of restricted substances such as psilocybin based formulations for third parties. It’s team is comprised of physicians and scientists who are recognized thought leaders in the fields of Neurology, Pharmacology, Pain Management, Addiction and Biochemistry and have significant experience in the clinical application of cannabinoid compounds.

The company’s medical team includes William Honer and Caroline MacCallum and Dr. William Panenka, MD, MSc, FRCPC (Neurology and Psychiatry). The founder of TLS, Dr. Panenka, is a dually boarded Neurologist and Psychiatrist and Canadian Institute of Health Research funded academic faculty member at the University of British Columbia. He did a post doctoral fellowship at UBC and Harvard University. He maintains an internationally recognized research program in brain injury, mental health and addictions. Dr. Caroline MacCallum is the Chief Medical Officer of TLS. She is a pharmacist and internal medicine physician with deep expertise in complex pain and medical cannabis. She is a medical director of a Vancouver based private cannabis clinic and an internationally sought after speaker and world recognized leader in cannabis education, policy, clinical guideline development and research. Dr. William G. Honer is a key scientist at TLS and an Internationally recognized translational scientist and physician. He is a Psychiatrist and the previous Head of Department at UBC. He is Fellowship trained at Columbia University and the Albert Einstein College of Medicine. Has published over 300 peer-reviewed manuscripts including primary clinical trial authorship works in journals such as the New England Journal of Medicine.

The terms of the binding letter of intent are as follows:

Yield Growth subsidiary Flourish shall issue 15,000,000 units of Flourish, consisting of 15,000,000 shares and 15,000,000 units to acquire additional Flourish shares at $0.50 per share, and in exchange Flourish shall acquire approximately 18% of the TLS stock, at a deemed cost of $750,000.

The transaction assumes a post-closing valuation of Flourish of approximately $7,000,000.

No shares or warrants in Yield Growth shall be issued as part of the transaction, although Yield Growth’s ownership in Flourish shall be diluted down to approximately 82% at closing and down to 70% on a fully diluted basis.

“I’m overjoyed that Flourish can provide a leading investment into a company with such enormous potential,” says Yield Growth and Flourish CEO Penny White. “We will fully support TLS in its goal to develop over the counter products to prevent and treat opiate addiction, which is having devastating effects on individuals, families and communities across the globe.”

The Centers for Disease Control and Prevention estimates that the total “economic burden” of prescription opioid misuse alone in the United States is $78.5 billion a year, including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement.

About Flourish Mushroom Labs Inc.

Flourish Mushroom Labs aims to be a leader in the fast-growing functional foods market-and improve life by offering high-quality mushroom-infused products. Flourish Mushroom Labs is planning to build a psilocybin mushroom laboratory in Saint Vincent and the Grenadines and is conducting research into potentially therapeutic benefits of compounds found in psychedelic mushrooms. It has filed a U.S. patent application for the use of psilocybin to aid in weight loss and treat obesity, diabetes and to help prevent heart disease. Flourish Mushroom Labs is a majority owned subsidiary of The Yield Growth Corp.

About The Yield Growth Corp.

The Yield Growth Corp. develops and manufactures plant-based products and conducts research for plant-based therapeutics in what the Global Wellness Institute reports is a $4.2 trillion-dollar global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, Skechers and Aritzia. Its all natural hemp skincare brand, Urban Juve, has signed agreements for distribution in Canada, Colombia, Brazil, Costa Rica, Panama, Argentina, El Salvador, Ecuador, Peru, Greece, Cyprus, Bulgaria, Romania and Serbia. Yield Growth’s Wright & Well brands have manufactured a THC/CBD line of topical and edible products in Oregon. Through its subsidiaries, Yield Growth has over 200 proprietary beauty, wellness, edibles and beverage formulas for commercialization. It has filed 13 patents to protect its extraction method and other intellectual property. Yield Growth earns revenue through multiple streams including licensing, services and product sales.

For more information about Yield Growth, visit www.yieldgrowth.com or follow @yieldgrowth on Instagram. Visit www.urbanjuve.com and #findyourjuve across social platforms to learn, engage and shop.

Investor Relations Contacts:

Penny White, President & CEO

Kristina Pillon, Investor Relations

invest@yieldgrowth.com

1-833-514-BOSS 1-833-514-2677

1-833-515-BOSS 1-833-515-2677

The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking information and statements (collectively, “forward looking statements”) under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, intellectual property protection, the potential for not acquiring any rights as a result of the patent application and any products making use of the intellectual property may be ineffective or the company may be unsuccessful in commercializing them; and other approvals will be required before commercial exploitation of the intellectual property can happen. The laws around cultivating, selling and using psychedelic mushrooms would need to change in most jurisdictions in order for the use of psychedelic products to be legal and sale of, and demand for, Urban Juve, Wright & Well, Flourish Mushroom Labs, Jack n Jane and UJ Beverages products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Yield Growth cautions readers not to place undue reliance on forward-looking statements provided by Yield Growth, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Yield Growth expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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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 Tue, 21 Jan 2020 12:37:35 +0000

5 Ancillary Cannabis Companies Investors Need To Have On Their Radar

5 Ancillary Cannabis Companies Investors Need To Have On Their Radar

Due to cannabis being illegal at the federal level in the US, many investment firms cannot invest in companies that touch the plant. This is a trend that will continue while cannabis is illegal at the federal level and we have been highly focused on the ancillary side of the business.

Ancillary cannabis companies are those that do not touch the plant and is a wide-ranging vertical. From point-of-sale to agricultural technology, a number of businesses can fall under the ancillary category and this is a trend that our readers need to be aware of. When it comes to the ancillary cannabis opportunity, selectivity is key and there are a number of factors that we analyze at the company level.

During the last year, we have seen an increase in the number of publicly traded ancillary cannabis companies. While we are favorable on the increase, many of the new listings do not meet the criteria that we have found to be worth featuring. Today, we have highlighted 5 ancillary companies that are positioned to record strong growth in 2020 and beyond.

ManifestSeven: The Next Big Cannabis IPO

In the near future, ManifestSeven (M7) will complete a go-public transaction and is an opportunity that we are excited about. The ancillary cannabis company is California’s first omnichannel model for legal cannabis, servicing both business-to- business (B2B) and business-to-consumer (B2C). We are favorable on the structure of the business as well as the management team that is behind the company.

We believe that M7 meets our criteria for an ancillary cannabis company to be watching. The management team is focused on bringing the business down a path to profitability. In 2019, M7 recorded strong top and bottom-line growth and this is a trend that is expected to become more significant in 2020.

During the last year, M7 completed the acquisition of three strategic assets and we are favorable on the growth profile associated with these assets. Going forward, we expect the management team to find significant synergies between the businesses and are bullish on the long-term opportunity. From a fundamentals standpoint, M7 represents an exciting opportunity and the current revenue run rate is approaching $60 million per year.

A $60 million run rate provides M7 with a great starting point, especially for a public company, and we are going to be monitoring how the story continues to advance. California is the world’s largest cannabis market and is an opportunity that we are excited about. We believe that M7 represents a differentiated opportunity and find this to be of significance in a market that seems to be fatigued. Going forward, we are bullish on M7 and will keep the opportunity on our radar.

Surna: An Underappreciated Cannabis Ancillary Opportunity

Earlier this month, we highlighted Surna Inc. (SRNA) after having met with the management team at MJ Biz in Las Vegas and at its facility in Boulder, Colorado. We believe that Surna represents an attractive ancillary cannabis opportunity that is in the early innings of a major growth cycle and we are favorable on how CEO Tony McDonald has been able to advance the operation.

In late 2019, Surna reported third quarter financial results that showed substantial growth on several key levels (revenue, EBITDA, net income, and cash on hand) and the market responded favorably to these numbers. Following the blow-out earnings report, the shares have come off its highs and this is a trend that caught our attention. We believe that Surna has substantial growth prospects and find the risk-reward profile to be compelling. When analyzing Surna, there are a number of factors that stand out with the business and we are bullish on the company for the following reasons:

  1. At current levels, the company is trading at 1x revenue and is at a discount when compared to its peers
  2. During the last year, Surna began to sell its proprietary products to leading operators with grow facilities around the country. This is a trend that is expected to become more significant this year and this should benefit the business
  3. Surna is positioned to benefit from the opening of new markets and this is a trend that is expected to continue on a going forward basis

In 2020, we expect to see Surna record substantial growth and are impressed by the amount of work that is backlogged. There is significant demand for the proprietary products that are created by Surna and we expect to see a substantial increase in activity on a going forward basis. Over the next year, we expect to see the company secure relationships with large multi-state operators in the US and licensed producers in Canada.

During the last year, Surna has been quietly executing on a multi-faceted growth strategy and is an opportunity that is starting to gain traction. The company has an attractive risk-reward profile and has a number of avenues for growth. We believe that the market has unnecessarily discounted the growth prospects associated with Surna and believe that it is one of the most underappreciated ancillary cannabis opportunities.

GrowGeneration: A Nasdaq Listing to be Watching

In late 2019, GrowGeneration (GRWG) was approved to commence trading on the Nasdaq and we have been closely following the ancillary cannabis company.  GrowGeneration owns more than 20 retail hydroponic/gardening stores. During the last few years, the company has been highly focused on opening additional locations and we have been monitoring this aspect of the story. The company is also highly focused on the rollout of its new ERP platform, adding its stores in California, Michigan, Maine, Oklahoma, Nevada and Rhode Island to the system so far this year.

In late 2019, GrowGeneration released third quarter financial results and recorded more than $1 million of net income on $21.8 million of revenue. When compared to the same period last year, revenue increased by more than 150% and this is a trend that we are bullish on. Going forward, GrowGeneration has substantial catalysts for growth and we will monitor how the story advances in 2020.

The company is utilizing a growth strategy focused on both organic and inorganic initiatives. We are favorable on this strategy and the recent execution and will monitor how these initiatives benefited the top- and bottom-line. The newly acquired stores and new store openings are all performing better than expected and have been successfully integrated into the operations of the overall company. GrowGeneration has approx. $16 million of cash, which will allow it to complete the acquisition of additional stores that are expected to close in the near future.

During the last year, the company has outperformed the vast majority of the cannabis sector and we will monitor how the Nasdaq responds to the new listing. We believe that GrowGeneration is an ancillary cannabis company that is worth watching and will be keeping an eye on the opportunity.

Innovative Industrial Properties: The World’s Largest Cannabis REIT

Innovative Industrial Properties, Inc. (IIPR) is the largest cannabis focused real estate investment trust (REIT) in the world and is one of the best-known ancillary cannabis companies. One of the reasons why the cannabis REIT has been able to stand out is due to the dividend that is issued on a quarterly basis. This puts the company in a league of its own and makes it one of the only cannabis companies that provides an income stream.

One of the reasons why we closely follow Innovative Industrial Properties is due to the number of assets that it owns and the markets that it is levered to. As of December 23, 2019, the company owned 46 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, North Dakota, Ohio and Pennsylvania, totaling approximately 3.1 million rentable square feet. This makes the company one of the largest cannabis operators in the world and is an opportunity that we continue to follow.

During the last year, Innovative Industrial Properties recorded mixed movements and has come well off its highs. After a significant rally, momentum has been trending to the downside and this is something that we are watching. Although the recent trend has been mixed and to the downside, we believe that Innovative Industrial Properties is an ancillary cannabis company to be watching.

Akerna: An Ancillary Company to Watch Post-Ample Organics Acquisition

In late 2019, Akerna Corp. (KERN) caught our attention after announcing the acquisition of Ample Organics. This was a transformational acquisition for Akerna and we are bullish on the amount of value that can be generated through the deal. During the last quarter, the trend has been to the downside and Akerna is a company that is worth watching.

Akerna’s service offerings include MJ Platform, Leaf Data Systems, and solo sciences tech platform. As part of its business strategy, the company plans to expand its reach through a series of organic and inorganic growth initiatives. From an acquisition standpoint, the business intends to grow through targeted strategic acquisitions that are complementary to its existing platform and organically by accelerating its product development efforts.

In December, Akerna reported plans to acquire Ample Organics in a cash and stock transaction (valued at up to $45 million). Ample Organics serves over 70% of the Canadian market with its industry-leading seed-to-sale platform. In late 2019, the company was selected to deliver the world’s first national cannabis tracking platform in St. Vincent and The Grenadines in 2020 and this represented a major milestone for the business.

Projected calendar-year 2020 revenue for Ample Organics is $8.7 million and the business is projected to be cash-flow positive in the second quarter. The deal is expected to close by the end of the first quarter and we are favorable on the impact that the transaction will have on the existing Akerna business. With the acquisition, Akerna is further executing on its business strategy of complementing strong organic growth with select acquisitions of highly targeted and synergistic technology companies. We are bullish on the long-term value that can be created through this acquisition and believe that the opportunity is flying under the radar.

Pursuant to an agreement between StoneBridge Partners LLC and Surna Inc. (SRNA) we have been hired for a period of 90 days beginning January 1, 2020 and ending April 1, 2020 to publicly disseminate information about (SRNA) including on the Website and other media including Facebook and Twitter. We are being paid $7,500 per month (SRNA) for or were paid “0” shares of restricted common shares. We own zero shares of (SRNA), which we purchased in the open market. We plan to sell the “ZERO” shares of (SRNA) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (SRNA) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

Pursuant to an agreement between StoneBridge Partners LLC and Manifest7. (MSVN) we have been hired for a period of 180 days beginning August 1, 2019 and ending February 1, 2020 to publicly disseminate information about (MSVN) including on the Website and other media including Facebook and Twitter. We are being paid $10,000 per month for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (MSVN), which we purchased in the open market. We may buy or sell additional shares of (MSVN) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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Published at Tue, 21 Jan 2020 12:52:22 +0000

Future Farm Names Tom Barrette New President and COO

Future Farm Names Tom Barrette New President and COO

Future Farm Technologies Inc. (CSE: FFT) (OTCQB: FFRMF) is pleased to announce that Tom Barrette, an accomplished attorney and business executive who was recently elected to serve as a Director of Future Farm, will now also be the President and Chief Operating Officer of the Company.

Over the past year, Mr. Barrette has devoted a large part of his time advising Future Farm on all aspects of its business, especially with respect to the Company’s new focus on pharma quality manufacturing of health and wellness products, including those made from hemp.

“Tom has worked closely with me to identify that the best opportunity to create value for the shareholders of Future Farm is the production of plant-based health and wellness products, including those which feature hemp-derived compounds,” says Bill Gildea, Future Farm’s CEO. “We will continue to work together to make 2020 a great year for Future Farm.”

“Future Farm’s decision to grow hemp in Maine in 2018 and 2019 led us to analyze deeply the market for the sophisticated production of plant-based health and wellness products,” comments Mr. Barrette. “The quality of that market with respect to both profitability and growth is outstanding. In the short term, we will use the hemp biomass from our 2019 harvest to produce products in collaboration with first-rate advanced manufacturers. But our real goal in 2020 is to acquire one or more operating manufacturing companies to quickly increase our share of that market.”

Future Farm has also made a renewed commitment to shareholder communication by retaining leading investor relations firm Renmark Financial Communications.  Investors and members of the media seeking more information about the exciting strategic direction of Future Farm, or any other aspect of its business, should contact Renmark as follows:

Renmark Financial Communications Inc.

Investor Relations – Daniel Gordon: dgordon@renmarkfinancial.com

Media – D. Elizabeth (Liz) Culley-Sullo: dculley-sullo@renmarkfinancial.com

Tel: (416) 644-2020 or (212) 812-7680

www.renmarkfinancial.com

On behalf of the Board,

Future Farm Technologies Inc.

William Gildea, CEO

About Future Farm Technologies Inc. 

Future Farm Technologies is a Canadian public company that is poised to be a leading supplier of pharma-grade health and wellness products, including those made from hemp, to meet the burgeoning demand in the U.S. and global markets.

Future Farm’s seasoned management team brings a deep understanding of operations and agriculture with the financial and regulatory expertise needed to become an industry leader in the rapidly growing market for health and wellness products made from hemp and other plants.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. 

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. There is no guarantee that the Company will be successful in its efforts to further develop its existing hemp operations, or that the Company will be able to raise sufficient capital to execute on its intended business plan and objectives. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

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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 Tue, 21 Jan 2020 13:29:34 +0000

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