Sundial Growers Inc. (Nasdaq: SNDL) (“Sundial” or the “Company”) announced today that it will reschedule the release of its fourth quarter and fiscal full-year 2019 financial results and investor conference call to allow for ongoing discussions with our lenders regarding modifications to our credit agreements. The rescheduled call and webcast will take place on March 31, 2020 at 10:30 a.m. EDT (8:30 a.m. MDT) and the Company will release earnings after market close on March 30, 2020.
The rescheduling of the release of Sundial’s 2019 year-end financial reporting is not related to the completion of our financial results.
CONFERENCE CALL ACCESS
Callers may access the conference call via the following phone numbers:
Canada/USA Toll Free: 1-800-319-4610
International Toll: +1-604-638-5340
UK Toll Free: 0808-101-2791
Callers should dial in 5-10 minutes prior to the scheduled start time.
To access the live conference call webcast, please visit the following link:
A replay will be available for three months following the conference call.
About Sundial Growers Inc.
Sundial is a public company with Common Shares traded on Nasdaq under the symbol “SNDL”. Sundial is a licensed producer that proudly crafts the world’s finest cannabis using state-of-the-art indoor facilities. Our ‘craft-at-scale’ modular growing approach, award-winning genetics and experienced master growers set us apart.
Our Canadian operations cultivate high-quality, small-batch cannabis using an individualized “room” approach, with 470,000 square feet of total space. In the United Kingdom, we grow high-quality, traceable plants, including hemp, ornamental flowers and edible herbs with 1.75 million square feet of environmentally friendly facilities.
Sundial’s brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands. Our consumer-packaged goods experience enables us to not just grow top quality cannabis, but also create exceptional consumer and customer experiences.
We are proudly Albertan, headquartered in Calgary, AB, with operations in Olds, AB, and Rocky View County, AB.
Driven Deliveries Inc. (the “Company” or Driven) (OTC: DRVD), California’s fastest growing online cannabis retailer and direct-to-consumer logistics company, announced today that Christopher DeSousa has joined the company’s Board of Directors.
Christopher DeSousa is a senior operator and supply chain executive with nearly 20 years of industry experience in third-party logistics, distribution, transportation, final mile delivery, manufacturing, retail operations, and e-commerce. He currently serves as the Head of Operations for goPuff, a digital convenience retailer. goPuff is the first convenience store application to provide door-to-door “hyper-fast delivery” of items, typically within 15-20 minutes of ordering.
DeSousa is responsible for overseeing goPuff’s field and delivery operations, which consist of micro-fulfillment centers and a gig economy driver partner workforce. He also leads several teams at the company’s Philadelphia headquarters including driver operations, loss prevention, safety, lean & continuous improvement, and training.
Prior to joining goPuff, DeSousa has held several senior-level leadership roles at C.H. Robinson, Echo Global Logistics, and DSC Logistics (now CJ Logistics), including most recently as Vice President of Global Logistics at Sleep Number Corporation. Two common themes from throughout his career have been a relentless focus on improving the customer experience, and growth; either in start-up companies or by building innovative new products and services in mature organizations to unlock new revenue streams and expand margin.
DeSousa earned his B.S. degree in Operations and Information Systems Management from the Smeal College of Business at the Pennsylvania State University in 2002. He also earned his M.B.A. degree from the Carlson School of Business at the University of Minnesota in 2019.
“We are excited to have Christopher join the Board,” said Christian Schenk, CEO & Chairman of the Board of Directors, Driven Deliveries Inc. “His experience in market expansion, as well as his participation in mergers and acquisitions along with supporting large scale capital fundraising, will be instrumental in our next phase of growth.” he added.
Driven Deliveries, Inc., is the first publicly traded cannabis delivery service operating within the United States. Founded by experienced technology and cannabis executives, the company provides e-commerce solutions, online sales, and on-demand cannabis delivery, in select cities where allowed by law. Driven offers legal cannabis consumers the ability to purchase and receive their marijuana in a fast and convenient manner. By 2020, legitimate cannabis revenue in the U.S. market is projected to hit $23 billion. By leveraging consumer trends, and offering a proprietary, turnkey delivery system to its customers, management believes it is uniquely positioned to best serve the needs of the emerging cannabis industry and capture notable market share within the sector. For more information, please visit www.DRVD.com and review Driven’s filings with the U.S. Securities and Exchange Commission.
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that we will achieve these plans, objectives, expectations or intentions. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company’s control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Fire & Flower Holdings Corp. (“FFHC”) (TSX: FAF) and its wholly-owned subsidiary Fire & Flower Inc. (“Fire & Flower” or the “Company”), today announced Fire & Flower customers in Ottawa and Kingston, Ontario will be served exclusively through the Spark Perks™ Fastlane™ “click-and-collect” service that enables customers to order products online for fast pickup and payment in store.
Customers at Fire & Flower Ontario locations will only be permitted into retail stores to pay for and pickup orders reserved through the Fastlane service. By changing to this service model, Fire & Flower will help ensure the health and safety of its employees and customers, while continuing to provide cannabis products to consumers in Ontario.
In addition, Fire & Flower’s leadership team has made the difficult decision to close the following cannabis retail store locations until at least March 29, 2020, effective immediately.
Calgary – Stanley Park: 120, 3916 Macleod Trail SE
Calgary – Myriad: 1114, 1108 4th Street SW
Edmonton – Ellwood Corner: 252 – 91 Street SW
Edmonton – Westmount: 12225 – 107 Avenue NW
Lethbridge – Upper East Side: 2 – 1276 3 Avenue South
Edmonton – Merchant’s Row: 3727 99 Street NW
St. Albert – Shoppes at Giroux: 120 – 4 Versailles Avenue
“We have a responsibility to our employees, customers and the communities in which we operate to limit social interactions by temporarily modifying our business model and selectively closing stores in response to this unprecedented public health challenge,” shared Trevor Fencott, Chief Executive Officer of Fire & Flower. “We have rapidly commissioned a Pandemic Response Team within Fire & Flower with the focus of keeping our people safe and healthy while ensuring the continuity and sustainability of our business.”
The Spark Perks Fastlane “click-and-collect” service is a key feature of the Hifyre™ digital retail platform and has more than 75,000 members across Canada.
We encourage all customers to order through the Fastlane “click-and-collect” service during this time on the Company’s website at http://www.fireandflower.com/.
About Fire & Flower Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share. The Company guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital platform and SparkTM program connect cannabis consumers with the latest cannabis products, and deliver cutting edge insights into evolving consumer behaviours. The Company’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 that owns or has interest in cannabis retail store licences in the provinces of Alberta, Saskatchewan, Manitoba and Ontario and the Yukon territory.
Through its strategic investment with Alimentation Couche-Tard Inc. (ATD.A, ATD.B), the Company has set its sights on the global expansion as new cannabis markets emerge.
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 FFHC at the date the statements are made based on information then available to the Company. 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 FFHC, which may cause FFHC’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.
FFHC 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.
Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, today announced that Terry Booth has filed a report on the System for Electronic Disclosure by Insiders (SEDI) regarding his sale of approximately 12,161,900 shares into the open market. This transaction is in connection with the previously announced transition of Mr. Booth’s role within the Company.
Executive Chairman and Interim CEO Michael Singer stated, “The Board and management remain focused on the plan we laid out in February and we are progressing as planned toward appropriate capital allocation, balance sheet strength, and profitability. We look forward to updating the markets on our next quarterly earnings call.”
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company’s presence spans 25 countries across 5 continents with a brand portfolio that includes Aurora, Aurora Drift, San Rafael ’71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and ROAR Sports. Providing customers with innovative, high-quality cannabis and hemp products, Aurora’s brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website at www.auroramj.com.
Aurora’s Common Shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.
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. These forward-looking 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, estimates and assumptions of management in light of management’s experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition and other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual information form dated September 10, 2019 (the “AIF”) and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company 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 securities laws.
GW Pharmaceuticals plc (Nasdaq: GWPH) (“GW”, “the Company” or “the Group”), a world leader in discovering, developing and commercialising cannabinoid prescription medicines, today announces the submission of a Type II Variation Application to the European Medicines Agency (EMA) seeking approval of EPIDYOLEX®, (cannabidiol) oral solution, for the treatment of seizures associated with Tuberous Sclerosis Complex (TSC), a rare genetic condition and a leading cause of genetic epilepsy. If approved, this will be the third licensed indication for GW’s cannabidiol oral solution in Europe.
“This submission to the EMA is an important step for GW and furthers GW’s mission to bring innovative cannabinoid medicines to patients with high unmet need,” said Chris Tovey, GW’s Chief Operating Officer. “We look forward to working with the EMA to demonstrate GW’s cannabidiol oral solution’s potential in this new indication and hope to make this rigorously tested cannabis-based medicine available to a new group of patients through a potential approval in due course.”
TSC is a condition that causes mostly benign tumours to grow in vital organs of the body including the brain, skin, heart, eyes, kidneys and lungs, and in which epilepsy is the most common neurological feature. TSC is typically diagnosed in childhood.1
The Type II Variation Application is based on data from a positive Phase 3 safety and efficacy study. The study met its primary endpoint with patients treated with GW’s cannabidiol oral solution 25 mg/kg/day experiencing a significantly greater reduction from baseline in TSC-associated seizures compared to placebo (49% vs 27%; p=0.0009). Results for the 50 mg/kg/day dose group were similar, with seizure reductions of 48% from baseline vs 26.5% for placebo (p=0.0018). All key secondary endpoints were supportive of the effects on the primary endpoint. The safety profile observed was consistent with findings from previous studies, with no new safety risks identified.
About Tuberous Sclerosis Complex (TSC) Tuberous Sclerosis Complex (TSC) is a rare genetic condition that has an estimated prevalence in the EU of 10 in 100,000.2 The condition causes mostly benign tumours to grow in vital organs of the body including the brain, skin, heart, eyes, kidneys and lungs and is a leading cause of genetic epilepsy.1,3 TSC often occurs in the first year of life with patients suffering from either focal seizures or infantile spasms. It is associated with an increased risk of autism and intellectual disability.1 The severity of the condition can vary widely. In some children the disease is very mild, while others may experience life-threatening complications.4
About EPIDIOLEX®/EPIDYOLEX® (cannabidiol) oral solution EPIDIOLEX®/EPIDYOLEX® (cannabidiol) oral solution, the first prescription, plant-derived cannabis-based medicine approved by the U.S. Food and Drug Administration (FDA) for use in the U.S. and the European Medicines Agency’s (EMA) for use in Europe, is an oral solution which contains highly purified cannabidiol (CBD). EPIDYOLEX received approval in Europe in September 2019 for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS) or Dravet syndrome in patients two years of age or older in conjunction with clobazam. In the U.S., EPIDIOLEX was approved in June 2018 by the FDA and is indicated for the treatment of seizures associated with LGS or Dravet syndrome in patients two years of age or older. A supplemental New Drug Application (sNDA) was submitted to the FDA in early 2020 for the treatment of seizures associated with Tuberous Sclerosis Complex (TSC). GW’s cannabidiol oral solution has received Orphan Drug Designation from the FDA and the EMA for the treatment of seizures associated with Dravet syndrome, LGS and TSC, each of which are severe childhood-onset, drug-resistant syndromes.
About GW Pharmaceuticals plc Founded in 1998, GW is a biopharmaceutical company focused on discovering, developing and commercialising novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The Company’s lead product, EPIDIOLEX®/EPIDYOLEX® (cannabidiol) oral solution is commercialised in Europe by GW, and in the U.S. by the Company’s subsidiary, Greenwich Biosciences. The Company has a strong pipeline of additional cannabinoid product candidates, with late-stage clinical trials in autism, schizophrenia, post-traumatic stress disorder (PTSD) and spasticity associated with multiple sclerosis (MS) and spinal cord injury. For further information, please visit www.gwpharm.com.
After a tough 2019, a majority of analysts that are focused on the cannabis industry expected to see the sector recover in 2020. So far this year, this expectation has not come to fruition and the sector continues to be under significant pressure.
A lot can change in the span of one year and the cannabis industry is the perfect example of this. Prior to the sector’s decline, cannabis companies had no issue with raising capital, with completing acquisitions, and with expanding. Fast forward to today and industry leaders like Canopy Growth Corporation (WEED.TO) (CGC) are closing facilities, cancelling future facility buildouts, and eliminating jobs to align supply and demand and to improve production efficiencies.
When thinking about the companies that recently reported substantial fundamental changes to the business, Canopy Growth is one of the first companies to come to mind. With that being said, Canopy Growth has approx. $2 billion of cash on hand and is well positioned to survive this tough period.
The vast majority of cannabis companies have not been as lucky as Canopy Growth and several high-profile operators are facing serious issues from a capital standpoint. Today, we have highlighted three well known cannabis businesses that we believe to be capital constrained and that could go bankrupt.
MedMen Enterprises: A Fall Far From Grace
MedMen Enterprises (MMEN.CN) (MMNNF) is one of the best known cannabis retailers in the US with significant leverage to some of the most attractive state markets. Although the US cannabis retailer has been reporting increasing revenues, expense have been rising much faster than anticipated and this has created a major problem for the business.
Last year, in an effort to shore up its balance sheet, MedMen accepted a massive loan from Gotham Green Partners and is now having trouble accessing the remaining capital on the loan. If the company cannot find a way to strengthen its balance sheet, we expect to see a leading US operator acquire non-core assets that are owned by MedMen for pennies on the dollar.
Earlier this year, MedMen came under fire after reports highlighted its inability to pay vendors and this development added fuel to the fire. The company tried to issue common stock to vendors in lieu of cash, but this strategy did not pay off. In an attempt to remedy the situation, the US cannabis retailer hired FTI Consulting to manage its outstanding balances to vendors and partners. MedMen has taken drastic measures to reduce costs, including the firing of hundreds of workers, the selling of stores and licenses, and the reworking of financing arrangements.
Although we are cautious with MedMen as a standalone operator, we do not expect to see the company go out of business. MedMen owns attractive assets and we expect to see another US cannabis retailer come in and acquire the business in the near future. The last twelve months have been brutal for the company and this is an opportunity that we will continue to cautiously monitor. We believe that MedMen is on a path to bankruptcy and only time will tell if the company is able to stay afloat.
Aurora Cannabis is Facing Substantial Headwinds
Earlier in the article, we briefly discussed the recent development that was announced by Canopy Growth as it relates to the closing of two of its production facilities in Canada. When it comes to the Canadian cannabis market, it is difficult to mention Canopy Growth without acknowledging the issues that Aurora Cannabis (ACB.TO) (ACB) is facing.
Like Canopy Growth, Aurora Cannabis invested hundreds of millions of dollars in the construction of massive cultivation facilities in Canada. Another similarity between the operators is related to the types of companies that were acquired by each business. With that being said, Aurora Cannabis completed these acquisitions when valuations were near all-time highs, Canopy Growth was somewhat ahead of the curve, though and completed acquisitions in 2015 and 2016 (valuations were not nearly as high at this time).
One of the most significant differences between Canopy Growth and Aurora Cannabis is related to the strength of their respective balance sheet. Unlike Canopy Growth, Aurora Cannabis did not receive a multi-billion-dollar investment and this has made things more challenging for the business. During the last year, Aurora Cannabis has sold off several previous investments, shut down facilities, and changed up the management team.
Going forward, Aurora Cannabis will need to find a way to fund the business and we would not be surprised if we saw it sell off additional assets. The company has significant leverage to the global cannabis opportunity which provides the business with an avenue to raise capital. The next twelve months are crucial for Aurora Cannabis and this is an opportunity that we will be closely following.
DionyMed Brands is what Companies Should Aim to Not Be Like
DionyMed Brands is the perfect example of a cannabis company that was unable to operate ethically and ended up going out of business because of it. In early 2019, DionyMed terminated its contract with Eaze after claiming that the processing procedure met California regulatory requirements. Following this decision, DionyMed said it was going to invest in its own delivery service and made up an excuse to terminate the Eaze contract for cause.
DionyMed’s mistake was cancelling a contract for services (payment processing to be specific) that were not even provided by Eaze. This decision did not sit well with Eaze which accused DionyMed of utilizing a series of schemes in an effort to destroy the company and take over its business.
The last few months have been more than challenging for DionyMed (and rightfully so) and this is an opportunity that we are cautious with. Following these deceptive actions, DionyMed has been de-listed from the Canadian and the US stock exchanges and it is unfortunate to see the impact that a few bad actors can have on a business.
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.
Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO; OTCQX: VREOF), the science-focused multi-state cannabis company with active operations in exclusively medical-only markets and licenses in 10 states and the commonwealth of Puerto Rico, today announced it has closed the first tranche of a non-brokered private placement offering (the “Offering”) of 13,651,574 units of the Company (the “Units”). The Offering was organized by Executive Chairman Bruce Linton and was authorized at a price per Unit of CAD $0.77 for up to a total amount of U.S. $10,000,000.
“This financing reflects the confidence of the capital markets in the potential growth of sales and margin for Vireo,” said Executive Chairman, Bruce Linton. “There are significant opportunities across our existing footprint to leverage increasing scale to improve sales growth and operating performance, especially considering that we anticipate as many as seven of our medical-only state markets could enact recreational-use legislation over the near- to mid-term future.”
“As a smaller, nimbler U.S. operator with a disciplined approach to capital allocation, we’ve sized this offering to balance our near-term objectives with the best long-term interests of shareholders and we believe we’re in an excellent position to deliver stronger financial performance as a result of this transaction,” said Founder & Chief Executive Officer, Kyle Kingsley, M.D. “Our recent focus on building production capacity to meet increasing demand positions us to drive stronger sell through of higher margin retail sales, which will remain a key area of focus for our team in 2020 in addition to advancing scientific innovation.”
Each Unit is comprised of one subordinate voting share in the capital of Vireo (a “Share”) and one subordinate voting share purchase warrant of Vireo (a “Warrant”). Each Warrant entitles the holder to purchase one Share (a “Warrant Share”) for a period of three years from the date of issuance at an exercise price of CAD $0.96 per Warrant Share, subject to adjustment in certain events. Vireo has the right to force the holders of the Warrants to exercise the Warrants into Shares if, prior to the maturity date, the five-trading-day volume weighted-average price of the Shares equals or exceeds CAD $1.44, subject to adjustment in certain events.
The Company intends to use the proceeds from the Offering to fund various growth initiatives, as well as for working capital and general corporate purposes. Additional tranches of the Offering may be closed on or before April 17, 2020, subject to the satisfaction of customary closing conditions. All of the securities issuable in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The Company does not expect the Warrants to be listed on any securities exchange.
The Company also disclosed that it has implemented several strategic initiatives over the course of the last 90 days in order to optimize its cost structure and operating model. The objectives of these initiatives are to build sustainable value with changing market conditions and to improve the Company’s operating performance. Since December 2, 2019, these actions have reduced corporate overhead and SG&A expenses by approximately 25 percent on an annualized basis.
Chief Financial Officer, Shaun Nugent, commented, “Our management team and Board of Directors is committed to significantly improving financial performance and generating positive free cash flow, and these actions were important steps we had to take in order to improve unit economics across our business so that we may achieve those goals. We expect to utilize a portion of the proceeds from the private placement transaction to expand our retail dispensary footprint in several key markets, which will be a critical component in driving stronger revenue growth, operating margins, and ultimately cash flow.”
The Company will provide additional updates regarding its strategic priorities and financial performance during its upcoming fourth-quarter and full-year 2019 earnings conference call, which is scheduled for April 30, 2020.
Additional Disclosures Surrounding Related Party Transaction
Bruce Linton, a director, officer and insider of Vireo indirectly subscribed for 1,736,715 Units in the Offering. Mr. Linton’s participation in the Offering and amendments to his employment agreement with the Company (the “Amended Employment Agreement”) constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the Mr. Linton’s participation in the Offering and the Amended Employment Agreement as neither transaction exceed 25% of the Company’s market capitalization. Under the terms of the Amended Employment Agreement, the Company expects to advance Mr. Linton the aggregate exercise price of the first tranche of incentive warrants issued to Mr. Linton and disclosed by the Company on November 7, 2019, in accordance with the terms of such warrants. The warrants become effectively cashless if the market capitalization of the company reaches U.S. $275 million. The terms of the Offering and the Amended Employment Agreement were reviewed and unanimously approved by the disinterested members of the Company’s board of directors.
All currency figures referenced in this release reflect Canadian dollar amounts, unless otherwise noted. The securities to be issued pursuant to the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “1933 Act”), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States. The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
About Vireo Health International, Inc.
Vireo Health International, Inc. is a physician-led cannabis company focused on building long-term, sustainable value by bringing the best of medicine, science, and engineering to the cannabis industry. With operations strategically located in early-stage, limited-license medical markets, Vireo manufactures pharmaceutical-grade cannabis products in environmentally-friendly greenhouses and distributes its products through its growing network of Green Goods™ retail dispensaries and hundreds of third-party locations. Its current core medical markets of New York, Minnesota, Pennsylvania, Arizona, New Mexico, Maryland, Ohio and Rhode Island all have the potential to enact adult-use legalization in the next three to 24 months, and three additional markets in Puerto Rico, Massachusetts and Nevadaalso have potential for commercialization. Combined with its teams’ focus on driving scientific innovation within the industry and securing meaningful intellectual property, Vireo believes it is well positioned to become a global market leader in the cannabis industry. In aggregate, Vireo’s total license portfolio spans 11 state markets with a total addressable population of over 80 million patients. Today, eight of its 11 state markets are operational with 13 of its 32 total retail dispensary licenses open for business. For more information about the company, please visit www.vireohealth.com.
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve Vireo of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against Vireo. The enforcement of federal laws in the United States is a significant risk to the business of Vireo and any proceedings brought against Vireo thereunder may adversely affect Vireo’s operations and financial performance.
Forward-Looking Statement Disclosure
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. To the extent any forward-looking information in this news release constitutes “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and include statements with respect to the opportunities for the Company to leverage increasing scale to improve sales growth and operating performance; the anticipation that seven medical-only state markets could enact recreational-use legislation over the near-to mid-term future; future tranches of the Offerings, including the expected timing for closing subsequent tranches of the Offering; the use of proceeds from the Offering; the anticipated benefits of the strategic initiatives implemented over the last 90 days; the annualized reduction of corporate overhead and SG&A expenses; the improvement to unit economics; expansion of retail dispensaries in key markets; and the expectation that such expansion will drive stronger revenue growth, operating margins and free cash flow. Forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue and cash on hand may differ materially from the revenue and cash values provided in this news release. Forward-looking information is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct, including preliminary financial expectations regarding the annualized reduction of corporate overhead and SG&A expenses. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to preliminary financial results being subject to the completion of the Company’s financial closing procedures and not being audited or reviewed by the Company’s independent registered public accounting firm; the timing of recreational-use legislation in markets where the Company currently operates; closing subsequent tranches of the Offerings; the expected timing for completion of subsequent tranches of the Offerings, including the satisfaction of customary closing conditions; current and future market conditions, including the market price of the subordinate voting shares of the Company; federal, state, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States; limited operating history; changes in laws, regulations and guidelines; operational, regulatory and other risks; execution of business strategy; management of growth; difficulty to forecast; conflicts of interest; risks inherent in an agricultural business; liquidity and additional financing; foreign private issuer status and the risk factors set out in the Company’s listing statement dated March 19, 2019, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.
The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Jushi Holdings Inc.(“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a globally-focused, multi-state cannabis and hemp operator, today announced the appointment of Andreas Neumann as Chief Creative Director, who will be joined by Julian Scaff as Experience Director and Benjamin McAllister as Art & Digital Director. Michael Perlman has also been appointed as Executive Vice President of Investor Relations & Treasurer.
Mr. Neumann and his team will employ their expansive creative backgrounds in leading all creative, marketing and communication for the Company, working closely with the executive team to initiate a “design thinking” transformation of the Jushi brand and its subsidiaries. Mr. Perlman will leverage his dynamic financial experience across multiple industries to lead the Company’s existing Investor Relations team. In addition, he will work directly with the Accounting and Finance teams on Treasury initiatives. As part of the senior leadership team, Mr. Neumann will report directly to Jim Cacioppo, Chairman and Chief Executive Officer, and Mr. Perlman will report to Erich Mauff, Co-President, and Kimberly Bambach, Chief Financial Officer.
“As we continue to focus on the growth of Jushi’s business, we are pleased to gain the experienced leadership of Andreas, Julian, Benjamin and Michael. We believe that their unique insights will play valuable roles in our organization as we progress on our long-term goals and objectives in the cannabis industry,” said Jim Cacioppo, Chairman and CEO of Jushi.
Mr. Neumann joins Jushi from Idean, a leading global design agency, where he served as Creative Director and Head of Content. Mr. Neumann was instrumental in building out Idean’s U.S. footprint with new, key clients such as IBM, HP, Rolls Royce, Ericsson and others. The success of the U.S. expansion led to the sale of the agency to French consulting giant, Capgemini in 2017. Neumann has been an entrepreneur in the fields of advertising, entertainment, and technology for over three decades. After selling his award-winning film production company to Grey Advertising/WPP, he became the head of their European television department. Later, he co-founded multiple companies, including Songpeople, the UK’s first digital-music research company, GUM, the branded-entertainment division of Saatchi & Saatchi London and Talenthouse, the Silicon-Valley-based social network for artists. Mr. Neumann has developed and launched digital lifestyle platforms for top-tier celebrities in music and fashion. His Hollywood-based production company Siouxx has produced award-winning content in film, print, and music. Mr. Neumann is also a rock photographer and has worked with some of the biggest names in the genre including: Queens of the Stone Age, Iggy Pop, Foo Fighters, ZZ Top, Lenny Kravitz and others.
About Andreas’s creative work, Josh Homme, Queens of the Stone Age, says, “Dre is a man of the present, looking straight into the future. He is the most in-the-now photographer I’ve ever worked with. He just believes if there’s a problem, the problem’s got a problem. That tireless energy is why we have such a high ratio of hits.”
Supporting Mr. Neumann are Julian Scaff, Experience Director, a 25-year technology industry veteran with expertise in user research, UX design, emerging technologies and future casting. He is also Associate Professor of Interaction Design at Art Center College of Design. Benjamin McAllister, Art & Digital Director, is an art director, product designer and software architect. His work includes fashion brands, TV/Film, VR/blockchain mobile applications, e-commerce and influencer marketing platforms.
Mr. Perlman joins Jushi from for KLX Energy Services, a leading U.S. onshore provider of mission critical, asset light oilfield services, where he served as Treasurer and Senior Director of Investor Relations. During his tenure, his enterprising leadership created an environment of continuous improvement to the treasury services process throughout the organization. Additionally, he was responsible for progressing all aspects of investor relations and shareholder activities. Mr. Perlman brings with him over 15 years of demonstrating innovative solutions and value across the industries of Investor Relations, Finance, Treasury, and Market Intelligence.
About Jushi Holdings Inc. We are a globally focused cannabis and hemp company led by an industry leading management team. In the United States Jushi is focused on building a multi-state portfolio of branded cannabis and hemp-derived assets through opportunistic acquisitions, distressed workouts and competitive applications. Jushi strives to maximize shareholder value while delivering high quality products across all levels of the cannabis and hemp ecosystem. For more information please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.
Forward-Looking Information and Statements This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or may contain statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “will continue,” “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, information concerning the expectations regarding Jushi, or the ability of Jushi to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of Jushi to successfully achieve business objectives, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation, as well as other risks and uncertainties which are more fully described in the Company’s Filing Statement dated December 5, 2019 and other filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Grassroots Cannabis will be launching Close The Gap, a campaign to raise awareness and establish the gold standard of inclusivity and equity. Women are underrepresented within the industry, both at the corporate and dispensary levels, and as patients and consumers. Grassroots is setting out to change this by addressing the Gender Wage Gap. Women are impacted by income inequity – on average a woman makes $0.79 to a man’s $1.00 and at current rates the overall gender pay gap is estimated to close by 2224.
As a first step, on March 8th, in honor of International Women’s Day, Grassroots will be offering select Wana products priced at $22.24 (original price: $30.00) to signify the year in which pay parity should be reached for all women. Wana Brands is one of only a handful of marijuana infused production companies that is Woman-Owned. With each purchase of Wana products, a special gift to include a deck of cards, Grassroots signature socks and stickers will be given away at participating dispensaries in Illinois until supplies last. For each purchase, a percentage of proceeds will be donated to the Chicago Foundation for Women (CFW), an organization dedicated to building a world in which all women and girls have the opportunity to thrive in safe, just and healthy communities. CFW invests in women and girls as catalysts, building strong communities for all.
“At Grassroots, we are dedicated to education and driving social change in the cannabis industry,” says Lisa Hurwitz, CMO. “With Close The Gap, we have the unique opportunity to use our platform to help educate and raise awareness around income inequity for women from all walks of life, which impacts the cannabis industry, our patients and our consumers.”
Through Close The Gapand future planned initiatives, Grassroots is committed to advancing and establishing social equity within cannabis. Grassroots welcomes people from all walks of life and inspires them to Live Deeply.
About Grassroots Cannabis:
Grassroots Cannabis is a cannabis company dedicated to serving, advancing and respecting the cannabis movement. Through its unique, vertically integrated business model, Grassroots grows, processes and sells trusted cannabis products that enhance life’s moments for people from all backgrounds.
Grassroots Cannabis has built its portfolio at an unprecedented pace, with facilities in highly competitive markets, including Illinois, Nevada, Pennsylvania, Michigan, Maryland, Oklahoma, Ohio, Vermont, North Dakota, Arkansas and Connecticut. The company is pursuing acquisitions in additional markets. The executive management team is composed of a group of highly skilled business leaders united by a common belief: Cannabis inspires us to Live Deeply. For more information, visit grassrootscannabis.com
About Chicago Foundation for Women:
Chicago Foundation for Women (CFW) invests in women and girls as catalysts, building strong communities for all. CFW funds organizations working to solve the biggest problems facing women and girls: economic insecurity, violence, and lack of access to health care and information. Last year, CFW invested $2.8 million in 117 organizations, leveraging the generosity of 2,700 donors, impacting 70,000 women and girls in our region. In addition to grantmaking, CFW invests in developing women leaders and advocates, and brings together diverse coalitions to collaborate, share resources and develop solutions. Learn more at www.cfw.org
Wana Brands: Enhance Your Life:
Included inthe 2019 Inc. 5000 list at #1536 and boasting a three-year growth rate of 269%, Wana Brands is the No. 1 edibles brand in the United States, with more dollars sold than any other brand, according to BDS Analytics 2019 Brand Share Report. Wana leads the industry in quality, consistency and potency, providing a range of different options that enable customers to create the specific cannabis experience they want. Wana products offer diverse product forms including edibles, vapes and extended release capsules, four different CBD/THC ratios as well as a variety of different dosages, onset times and duration of effects. The portfolio is designed so products can be used singly or in combination to address specific health, wellness and recreational needs. Wana products are available in Colorado, California, Ohio, Illinois, Michigan, Arizona and Oregon dispensaries, with Maryland, Oklahoma, Missouri and Florida (as regulations allow) among the states imminently coming online. Wana Brands expects to expand internationally to Canada by 2020. For more information or to subscribe to Wana’s e-newsletter, visitwww.wanabrands.com. Follow Wana onLinkedIn,Twitter,YouTube andPinterest.
Reliq Health Technologies Inc. (TSXV:RHT or OTCQB:RQHTF) (“Reliq” or the “Company”), a technology company focused on developing innovative mobile health (mHealth) and telemedicine solutions for Community-Based Healthcare, today announced that it will go live Monday, March 2, 2020 with Comprehensive Partners in Florida. The Company previously announced that it has signed a contract with Comprehensive to provide the iUGO Care Remote Patient Monitoring (RPM) and Chronic Care Management (CCM) platform to over 25,000 eligible Medicare patients.
“We are pleased to announce that we will be going live with Comprehensive next week,” said Dr. Lisa Crossley, CEO of Reliq Health Technologies, Inc. “In addition to our iUGO Care Software as a Service, Reliq will be providing implementation and support services to over fifty of Comprehensive Home Care’s Physician Practices from our Call Center in Port St Lucie, Florida. Onboarding to our iUGO Care Remote Patient Monitoring (RPM) and Chronic Care Management (CCM) platform will start March 2nd and is expected to be completed before the end of the calendar year. Each patient on the platform will generate an average of $35 USD per month in SaaS revenue and up to an additional $52 USD per month from implementation and support service fees. We are pleased to be working with Blum Telehealth to provide a suite of software solutions and services to Comprehensive and their physician partners.”
About Comprehensive Partners Comprehensive Partners was formed to take advantage of the more than 69 years of combined experience in providing Health Care Services to patients in 193 cities and 39 counties throughout the state of Florida. Through the developed relationships with physician partners and their own knowledge of the health care industry, the ownership team at Comprehensive recognize the needs of patients and promote preventative health programs to maintain the highest quality of life. Learn more at https://www.comprehensivehomehealth.com/.
About Blum Telehealth Blum is a unique healthcare platform that was designed and developed to disrupt the current closed telehealth market by enabling every stakeholder in the healthcare marketplace to connect and collaborate through one common virtual care platform. The Blum platform allows each stakeholder to build their own private virtual care network which promotes collaboration and continuity, which leads to better outcomes and reduced healthcare cost. Learn more at https://www.blumtelehealth.com/.
About Reliq Health Reliq Health Technologies is a healthcare technology company that specializes in developing innovative software solutions for the Community Care market. Reliq’s powerful iUGO Care platform supports care coordination and community-based healthcare. iUGO Care allows complex patients to receive high quality care at home, improving health outcomes, enhancing quality of life for patients and families and reducing the cost of care delivery. iUGO Care provides real-time access to remote patient monitoring data, allowing for timely interventions by the care team to prevent costly hospital readmissions and ER visits. Reliq Health Technologies trades on the TSX Venture under the symbol RHT and on the OTCQB as RQHTF. Learn more at https://www.reliqhealth.com/.
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.
Cautionary Statements Regarding Forward Looking Information
Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”.
We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements.
Forward-looking statements include, but are not limited to, statements with respect to commercial operations, including technology development, anticipated revenues, projected size of market, and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
Reliq Health Technologies Inc. (the “Company“) does not intend and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, technology development and marketing activities, the Company’s historical experience with technology development, uninsured risks. Actual results may differ materially from those expressed or implied by such forward-looking statements.
SOURCE: Reliq Health Technologies Inc.
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.