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>>> Innovative Industrial Properties Acquires Properties in New Jersey and Enters Into Long-Term Leases with Columbia Care
Business Wire
July 20, 2020
https://finance.yahoo.com/news/innovative-industrial-properties-acquires-properties-110000082.html
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on sale-leaseback transactions with subsidiaries of Columbia Care Inc. (Columbia Care) for two properties in New Jersey, an industrial building comprising approximately 50,000 square feet and a retail location comprising approximately 4,000 square feet.
The purchase prices for the properties were approximately $12.4 million in total (excluding transaction costs). Concurrent with the closings of the purchases, IIP entered into a long-term, triple-net lease agreement for each property with a subsidiary of Columbia Care, which intends to continue to operate the retail property as a regulated medical-use cannabis dispensary and the industrial property as a regulated medical-use cannabis cultivation and processing facility. Columbia Care is expected to complete additional tenant improvements for the industrial property, for which IIP has agreed to provide reimbursement of up to $1.6 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the two properties will be approximately $14.0 million.
Columbia Care (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) is one of the largest and most experienced cultivators, manufacturers and providers of medical and adult-use cannabis products and related services with licenses in 18 jurisdictions in the United States and the European Union. Columbia Care has completed more than 1.8 million sales transactions since inception and working in collaboration with renowned and innovative teaching hospitals and medical centers globally, continues to be a patient-centered health and wellness company setting the standard for compassion, professionalism, quality, care and innovation in the cannabis industry.
As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
"Columbia Care is one of the preeminent cannabis operators in the United States, and we are thrilled to introduce them as a new tenant partner," said Paul Smithers, President and Chief Executive Officer of Innovative Industrial Properties, Inc. "As one of the largest cannabis operators, Columbia Care is dedicated to providing the highest quality products and services to patients and customers, and we look forward to supporting them as a long-term real estate capital partner in New Jersey, including providing the additional real estate capital for further enhancements to their cultivation and processing facility."
Added Nicholas Vita, CEO of Columbia Care: "Partnering with IIP provides Columbia Care with access to nondilutive capital that offers flexibility and provides us with the ability to continue to build and expand our cultivation, manufacturing, and retail capabilities in the markets that matter most."
Last month, Columbia Care announced the opening of the dispensary location, as one of only three operators licensed to dispense medical cannabis in the southern region of New Jersey, and produced its first harvest this month at its cultivation and processing facility. Similar to other states, New Jersey authorities classified medical cannabis dispensaries as "essential," allowing them to remain open during the coronavirus pandemic, while implementing additional safety and social distancing protocols to protect the health of patient customers and employees. Last month, the New Jersey Department of Health also enacted a waiver that allows licensed operators to provide home delivery of medical cannabis products to patients.
As of July 20, 2020, IIP owned 61 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling approximately 4.5 million rentable square feet (including approximately 1.5 million rentable square feet under development/redevelopment), which were 99.2% leased (based on square footage) with a weighted-average remaining lease term of approximately 16.1 years. As of July 20, 2020, IIP had invested approximately $820.4 million in the aggregate (excluding transaction costs) and had committed an additional approximately $213.3 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. These statistics do not include up to approximately $7.0 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Illinois properties, or approximately $17.1 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Massachusetts properties, as the tenants at those properties may not elect to have IIP disburse those funds to them and pay IIP the corresponding base rent on those funds. These statistics also treat IIP’s Los Angeles, California property as not leased, due to the tenant being in receivership and its ongoing default in its obligation to pay rent at that location.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
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>>> IBD 50 Stocks To Watch: Marijuana Stock Innovative Industrial Shapes A Base In Transition
Investor's Business Daily
ALAN R. ELLIOTT
07/22/2020
https://www.investors.com/research/marijuana-stock-innovative-industrial-shapes-a-base-ibd-50-stocks-to-watch/?src=A00220&yptr=yahoo
Marijuana stocks don't often make the IBD 50 Stocks To Watch list. But Innovative Industrial Properties (IIPR) is a different sort of marijuana stock, and is approaching a buy point in a base that may be in transition.
The stock has been a highflier. And, like most marijuana stocks, highly volatile. It's gained 377% since its December 2016 IPO. On Wednesday, it was also trading 32% below its year-ago high. At the same time, it had a year-to-date gain of 26%.
Innovative is a real estate investment trust. That is a business model that frees real estate-focused companies from the usual federal corporate taxes, so long as they return their free operating cash flow to investors in the form of a dividend. Dividends in the group can therefore be high yielding. Innovative's current $4.24 annual dividend yields 4%.
REITs have provided an interesting way to focus on unique segments of the economy. San Francisco-based Prologis (PLD) concentrates on logistics-related properties, many of which are warehouses for e-commerce distribution. Equinix (EQIX) buys and leases high-tech sites necessary for internet networks and content providers.
Innovative Industrial is maybe even more cutting edge. Most of its properties are specifically used to grow medical-use marijuana. It generally buys the buildings and properties from the pot growing companies, then leases them back. Innovative is, in effect, a landlord for pot growers.
Innovative launched a 3-million-share offering on June 29 that raised $295 million. A July 6 note from Roth Capital said the company appears to see plenty of room to expand its portfolio. Roth projected the $295 million would go toward a wave of new property purchases over the next couple of quarters. The goal, Roth points out, is to grow the asset base as quickly as possible before federal regulations shift in a way that will open broader bank financing options to the industry.
For now, Roth says, "the sale-leaseback model remains the nondilutive capital raising method of choice for many operators and (Innovative Industrial) remains the industry leader with unmatched access to capital compared to its peers."
Given the fresh capital on the company's balance sheet, Roth projects year-end adjusted funds from operations of $4.88 per share for 2020, and $7.23 for 2021. It also projects earnings per share of 84 cents for the second quarter, a 42% gain — far better than most marijuana stocks. Innovative Industrial has grown earnings and sales at a triple-digit pace over the past three quarters.
Innovative is due to report its second-quarter results after the market closes on Aug. 5.
On The Cusp Of Two Bases
The stock chart shows it shaping a handle on a deep, five-month cup base. If the marijuana stock remains below the 101.58 buy point through the end of the week, the handle will become a flat base on its own. The buy point would remain the same.
Technically, the cup base is flawed by its depth, and by the fact that most of the pattern formed below the stock's 10-week and 40-week moving averages. These signal potential weaknesses. The handle is much tighter, and shows the stock settling down after the bear market.
The handle also is forming entirely above support at the 10-week and 40-week lines. This is also a positive. For those reasons, it would be better if the handle morphs into a flat base.
In any case, if Innovative crosses above the 101.58 entry, it is a buy.
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IIPR - >>> Here's How Many Times Marijuana's Dividend King Has Raised Its Payout
In just three short years, this pot stock has delivered amazing returns and dividend income.
Motley Fool
Dan Caplinger
Jul 26, 2020
https://www.fool.com/investing/2020/07/26/heres-how-many-times-marijuanas-dividend-king-has.aspx
Marijuana stocks have been a minefield lately, with many of the giants of the cannabis industry having fallen on tough times. The list of major cannabis producers that have lost ground again in 2020 is long, and it's been hard to find consistent winners among pure plays in the pot space.
Yet when you look beyond companies that are actually growing marijuana themselves, there's one company that stands out for its amazing performance. Innovative Industrial Properties (NYSE:IIPR) has become the most famous dividend stock in the cannabis sector, and a recent dividend increase has extended the real estate investment trust's dominant streak of payout boosts in its short four-year history as a publicly traded company.
The latest move from Innovative Industrial
Dividend investors got good news from Innovative Industrial back in June, when the cannabis REIT announced yet another dividend increase. Shareholders who owned stock on June 30 got a July 15 quarterly dividend payment of $1.06 per share. That was up 6% from the previous level of $1 per share.
With the increase, Innovative Industrial boosted its yield as well. Based on current prices, dividend investors are getting around a 4.3% dividend yield from their investment in the marijuana real estate specialist. That's come despite a share price gain of more than 30% so far in 2020.
An amazing streak of dividend success
By itself, there's nothing all that impressive about a 6% dividend increase. Companies across the market make such moves all the time. But when you put the boost into a broader context, it's a lot clearer what Innovative Industrial has managed to put together with its business.
Innovative Industrial paid its first dividend just three years ago, in the second quarter of 2017. The first quarterly payment of $0.15 per share was modest, but it still made the REIT special in the marijuana stock world. Most cannabis companies still pay no dividend, leaving Innovative Industrial as an obvious pick for income investors.
Since then, Innovative Industrial has declared 12 quarterly dividends. Five of those happened to be exactly the same as the previous quarter's payout. However, on seven occasions -- in just three years! -- the cannabis REIT has delivered a dividend increase.
Moreover, most of those increases have been far more significant than its latest increase. Take a look:
Innovative Industrial's December 2017 dividend was up 67% to $0.25 per share.
In September 2018, a 40% increase brought the payout to $0.35 per share.
March 2019 included a 29% rise to $0.45 per share.
The very next quarter, in June 2019, shareholders got a 33% boost to $0.60 per share.
September 2019's payment of $0.78 per share was up another 30% and brought the quarterly streak to two in a row.
Innovative paid an even $1 per share in December 2019, up 28% from the dividend it distributed three months before.
All in all, Innovative is now paying more than seven times what it did in its first-ever dividend.
Where Innovative is finding all this income
As a real estate investment trust, Innovative Industrial is required to pay out 90% of its net income to shareholders, so it's not surprising to see dividends increasing consistently as the company grows. What's impressive, though, is the pace of that growth, especially during economically challenging times.
However, the nature of Innovative Industrial's business model explains some of the growth. The REIT looks for and purchases suitable properties that it can lease out to tenants, which are typically cannabis cultivators or other companies with operations related to the marijuana industry. Given the difficulty in getting financing right now, most cannabis producers can't afford to purchase greenhouses or other buildings outright. A lease with Innovative Industrial solves their cash flow issues while giving the REIT an opportunity for growth.
Moreover, regulations on cannabis businesses can make real estate transactions more complicated. Working with Innovative Industrial means having an expert in the field that already knows what requirements there are, and the REIT is willing to work with prospective tenants. That's been an invaluable service, and one that Innovative Industrial can profit from.
Expect more growth ahead
Innovative Industrial continues to find lucrative new properties for investment, and it's been successful in raising capital whenever it's needed. That points to a strong future for the marijuana REIT. It also suggests that dividends should continue to be on the rise -- building further on one of the biggest success stories among cannabis stocks .
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>>> Why Innovative Industrial Properties Is the Best REIT Pot Stock
A favorite REIT/pot stock in 2019 is working wonders in 2020.
Motley Fool
by Sushree Mohanty
Jun 24, 2020
https://www.fool.com/investing/2020/06/24/why-innovative-industrial-properties-is-the-best-r.aspx
If you find it risky to invest directly in marijuana stocks, this real estate investment trust (REIT) might interest you. Innovative Industrial Properties (NYSE:IIPR) is an unconventional marijuana stock -- it's a REIT that provides real estate solutions to medical cannabis companies in the U.S.
Exceptional revenue growth through acquisitions
While most cannabis companies took a hard hit in 2019, Innovative Industrial Properties saw its stock rise by about 65% . The popularity of medical cannabis businesses in the U.S. is driving this revenue growth.
Acquisitions were the main contributor to revenue growth. As of May 6, the company is the proud owner of 55 properties with about 4.1 million rentable square feet in various U.S. states. In 2020 alone, Innovative Industrial Properties has acquired nine properties that total about 1.1 million rentable square feet. The locations include Colorado, Florida, Illinois, Massachusetts, Michigan, Ohio, and Virginia. Innovative acquires these properties, then leases them out to mostly medical cannabis companies (which can have trouble getting funding to purchase them on their own), thereby earning a chunk of rental revenue.
Its recent fiscal 2020 first quarter showed a drastic 210% increase in revenue to $21.1 million from the year-ago quarter.
Added benefits: A dividend stock
Besides offering unconventional access to the marijuana sector, this company pays dividends -- an added benefit to investors.
REIT stocks are well-known for being shareholder-friendly, paying 90% of their net profits as dividends. Innovative has an attractive forward dividend yield of 4.3%. That said, a high yield isn't everything -- consistency in dividend payments determines how stable the companies' financials are. Innovative has been consistently paying dividends since 2017 amid the market's ups and downs.
It hiked its quarterly dividend by 122% year-over-year in the first quarter, to $1 per share. Management noted the rise in rental revenue, net income, and adjusted funds from operations (AFFO) as the drivers behind the dividend increase.
Usually, with a REIT, we look at funds from operations (FFO) and AFFO, which paint a picture of its operating performance and give us an idea of how much cash is available to be paid out as dividends. Innovative saw a 236% increase in AFFO, to $17.8 million, and a 249% increase in net income to $11.5 million in the first quarter.
The company's commitment to providing value to shareholders is evident from its dividend hikes. In the second quarter, management raised the dividend by 6% from Q1, to $1.06 -- which is also an increase of 77% from the year-ago period. This marks the seventh increase since the company went public in December 2016.
Medical cannabis has tremendous potential
What makes me support Innovative is its potential to grow through investments in the medical cannabis business. Compared with the recreational front, medical marijuana is a more stable and growing source of income. The medical segment held 71% of total worldwide legal cannabis revenue share in 2019 -- and if estimates by Grand View Research prove right, the global legal marijuana market could be worth $73.6 billion by 2027.
The market for medical cannabis is also vast in the U.S., where 33 states and the District of Columbia have legalized it -- whereas recreational cannabis is legal only in 11 states and D.C. Many more states are gearing up to make cannabis legal this year, opening doors of opportunity for this REIT. Innovative's shares are up 26% so far in 2020, while the SPDR S&P 500 ETF has lost 4.1%.
Innovative also ended the quarter with $108.3 million in cash and cash equivalents. Discussing the first-quarter results and COVID-19 crisis, management noted in a press release that "one of the pillars of our business strategy has consistently been a conservative, flexible balance sheet, and we believe we are exceptionally well-positioned to not only weather this unprecedented health crisis and economic disruption but to continue to make real estate investments on a long-term basis with best-in-class tenant operators."
It is a well-known fact that dividend payers can be the best stocks to own during an economic storm -- like the one we are facing right now because of the COVID-19 pandemic. This REIT/pot stock allows you to be a part of the evolving marijuana sector and also offers stability and potential for long-term growth. That said, if you are interested in waiting and enjoying the full potential of the evolving cannabis industry, then I believe Cronos Group (NASDAQ:CRON) and Aphria (NASDAQ:APHA) are better positioned for 2020. They have strong balance sheets, innovative cannabis derivative products, and wise strategies for the future.
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$ERBB American Green (OTC:ERBB) Successfully Completes the Expansion of the Phoenix Grow Operation and Dramatically Increases Annual Production
PHOENIX, AZ, July 22, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- American Green (ERBB:OTC) announced today that it has successfully achieved 3 complete growth cycles within its newly created 11th grow room at the company’s “Sweet Virginia” cannabis grow facility, located in Phoenix, Arizona. According to David Gwyther, president of American Green, “It is now clear that adding an additional 240 plants into our 8-week rotation cycle was a great decision. We have increased our overall canopy space by over 12%. As Sweet Virginia has already achieved profitability, this expanded capacity greatly contributes to increased profitability without any significant increase in overhead.”
According to Bryan Croteau, American Green’s Vice President of Cultivation, “Coupling our expansion in capacity with our previously announced reductions in labor costs, I believe we can expect an improvement in our year-over-year bottom line by about 23%. That could translate into $350,000 annually, or more depending on the scale of future efficiencies that are discovered and implemented in the coming months and years. This new room will allow for just over 6 harvests every year, which we consider a substantial increase in return for a minimal investment.”
He added, “While developing our new grow room, we also figured out how to more efficiently utilize our vegetative space, and have now begun to implement those strategies across all 10 of our previously existing grow rooms. Additionally, we are now bulk-purchasing nutrients and additives in larger scale in order to not just increase revenues, but to do so with a lower cost of goods sold per room. We believe that we can operate all of our grow rooms, including our new room, with an increase in total cost of goods sold of under 3%!”
Mr. Croteau concluded, “This latest set of improvements to quality and yield will be the largest set of incremental improvements since the Company began providing medical cannabis to the Arizona wholesale market back in early 2018. Most importantly, American Green can employ all of its collected knowledge when it sets up new grows for its company licensors or for the time in the future that American Green is awarded additional new licenses when they become available in selected states in the future.”
If you are an experienced vending route operator serving a major market and wish to add a complete line of fully legal CBD products to your existing route, you should contact Mr. Lindel Creed at American Green’s AGM Vending Division located in Gastonia, North Carolina. You can email Lindel at lindel@americangreen.com or call him on his direct line at 704-718-3158.
Shareholders and interest holders may also stay current with American Green Updates:
American Green’s Main Website at www.americangreen.com
Twitter: @American__Green (two underscores), or
Facebook: https://www.facebook.com/americangreenusa
Instagram: https://www.instagram.com/americangreenusa/
Instagram: https://www.instagram.com/magicalnipton/
About American Green, Inc.
American Green, Inc. became, in 2009, America’s second publicly-traded company in the cannabis industry. American Green now, with its more than 50,000 individual certified shareholders, is one of the largest (in shareholder count) in the cannabis sector. American Green's mission is to lead the cannabis and premium CBD industry. Leveraging our team of professionals in cultivation management, manufacturing, extraction, wholesale, retail, and community outreach, we strive to develop sustainable initiatives in the cannabis-adjacent and CBD industries, laser-focused on adding company and shareholder value.
For more information -
Contact:
American Green, Inc.
Investor Relations
2902 W. Virginia Ave
Phoenix, AZ 85009
480-443-1600 X555
investor@americangreen.com
NOTES ABOUT FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including those described in the Company's Securities and Exchange Commission reports and filings. Certain statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward-looking statements may be identified by words such as estimates, anticipates, projects, plans, expects, intends, believes, be should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the Company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.
GrowGeneration Corporation (GRWG) - Oppenheimer: These 2 “Strong Buy” Stocks Are Poised to Surge by Over 80%
July 17, 2020
https://finance.yahoo.com/news/oppenheimer-2-stocks-poised-surge-135427733.html
GrowGeneration Corporation (GRWG)
Taking its place as the largest hydroponic equipment supplier in the U.S., GrowGeneration owns and operates specialty retail hydroponic and organic garden centers. Given its strong long-term growth narrative and its $6.95 share price, it’s no wonder GRWG recently earned a thumbs up from Oppenheimer.
Covering the stock for the firm, 5-star analyst Brian Nagel likes what he’s seeing, to put it lightly. “GRWG represents a leading, yet still early stage, up-and-coming retail chain within the rapidly expanding and dynamic market for hydroponic and organic gardening supplies,” he noted.
Speaking to its footprint, the company operates 27 stores in ten states. That said, over the next few years, Nagel estimates that new store additions, including acquisitions and greenfield expansions, could approach more than 20 units per year, putting its total number of locations at over 90 stores by 2023.
To help it reach its targets, the company is putting advanced infrastructure in place. As part of these efforts, GRWG implemented a new ERP system, and in June, the stores were connected to its website, allowing for BOPUS and other functionality.
Expounding on this, Nagel stated, “Key to our initial positive outlook for GRWG is our view that the GRWG business model is now approaching a point of increased sustained underlying scalability... Our initial analysis suggests that, as GRWG accelerates further acquisition and organic expansion efforts, the company should increasingly capitalize upon scale-related synergies and over time deliver even better profit and cash generation.”
Additionally, after an all-primary, secondary equity offering, GRWG’s cash position lands at over $52 million, with only $314,000 in short- and long-term debt. Based on this, Nagel thinks that the company should be able to fund its near- and longer-term expansion objectives.
With the analyst projecting that through 2023, adjusted EBITDA will reach roughly $55 million on total company revenue of more than $400 million, Nagel doesn’t believe GRWG’s full value has been built into the share price.
To this end, Nagel rates GRWG a Buy along with a $15 price target. This target indicates shares could skyrocket 110% in the next year. (To watch Nagel’s track record, click here)
Turning now to the rest of the Street, other analysts are on the same page. Only Buy ratings, 5, to be exact, have been issued in the last three months, so the consensus rating is a Strong Buy. The $10.20 average price target puts the potential twelve-month gain at 42%. (See GrowGeneration stock analysis on TipRanks)
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Innovative Industrial Properties - 12 Splendid Small-Cap Growth Stocks to Buy
Kiplingers
by Will Ashworth
July 15, 2020
https://www.kiplinger.com/investing/stocks/small-cap-stocks/601067/10-splendid-small-cap-growth-stocks-to-buy
Innovative Industrial Properties
Market value: $2.0 billion
YTD total return: 23.6%
3-year annualized revenue growth: 418.2% (3-year annualized)
It seems like only yesterday that Innovative Industrial Properties (IIPR, $91.50) bought its first property. However, in reality, the real estate investment trust (REIT) that specializes in owning medical-use cannabis facilities snapped up its first site in December 2016.
The company raised $61.1 million in its initial public offering on Dec. 5, 2016. Two weeks later, the REIT acquired a 127,000-square-foot industrial property in New York state. It purchased the property from PharmaCann LLC, a grower and dispenser of medical cannabis in eight U.S. states. IIPR paid $30 million in a sale-leaseback transaction, which has become the company's calling card ever since.
Today, Innovative Industrial Properties owns 56 properties in 15 states representing 4.1 million rentable square feet of industrial space. The properties are 99.2% leased with a weighted average lease length of 15.9 years.
To date, Innovative Industrial has $883 million in total committed or invested capital generating $84.5 million in annualized revenue. That might not seem like a lot. However, the annualized figure is based on the Q1 2020 revenue of $21.1 million, a figure that's 210% higher than the REIT's revenue in Q1 2019.
It's a big deal.
You won't find many REITs among small-cap growth stocks. But as the cannabis industry continues to mature, Innovative Industrial's seat at the cannabis table is all but assured.
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>>> GrowGeneration Announces $35,000,000 Follow-On Public Offering
PR Newswire
June 10, 2020
https://finance.yahoo.com/news/growgeneration-announces-35-000-000-120000335.html
DENVER, June 10, 2020 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company"), the largest chain of stand-alone specialty hydroponic and organic garden centers, today announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed follow-on public offering raising $35,000,000. In connection with the offering, GrowGen expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering.
Oppenheimer & Co. is acting as the sole book-running manager for the proposed offering. Ladenburg Thalmann & Co. Inc. and Lake Street Capital Markets are acting as co-managers for the offering.
The proposed offering is being made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: Oppenheimer & Co. Inc., Attn: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com. A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida. GrowGen also operates an online superstore for cultivators, located at www.growgen.pro and www.growgeneration.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. The Company's mission is to own and operate GrowGeneration branded stores in all the major states in the US and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the US. By 2025, the global hydroponics system market is estimated to reach approximately $16 billion.
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>>> GrowGeneration Set to Join Russell 3000® Index
Yahoo Finance
June 11, 2020
https://finance.yahoo.com/news/growgeneration-set-join-russell-3000-120000547.html
GrowGeneration Corp. (NASDAQ:GRWG), ("GrowGen" or the "Company"), the largest chain of stand-alone specialty hydroponic and organic garden centers, currently with 27 locations, announced today it is set to join the broad-market Russell 3000® Index. GrowGeneration's inclusion in the Russell 3000® Index will take place at the conclusion of the 2020 Russell indexes annual reconstitution, effective after the US market opens on June 29, according to a preliminary list of additions posted June 5.
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>>> EnWave Signs Commercial License and Equipment Purchase Agreement with Pick-One S.A. de CV Following Successful Evaluation
MarketWatch
July 8, 2020
https://www.marketwatch.com/press-release/enwave-signs-commercial-license-and-equipment-purchase-agreement-with-pick-one-sa-de-cv-following-successful-evaluation-2020-07-08?siteid=bigcharts&dist=bigcharts&tesla=y
The MarketWatch News Department was not involved in the creation of this content.
VANCOUVER, British Columbia, Jul 08, 2020 (GLOBE NEWSWIRE via COMTEX) -- EnWave Corporation (TSX-V:ENW | FSE:E4U) ("EnWave", or the "Company") announced today that it has signed a non-exclusive, royalty-bearing commercial license agreement (the "License") with Pick-One S.A. de CV ("Pick-One") to produce dried cheese and fruit snacks using Radiant Energy Vacuum ("REV(TM)") technology for the retail grocery market in Mexico. Under the terms of the License, Pick-One purchased the 10kW commercial REV(TM) machine to initiate commercial production in Mexico.
This License is the first signed by EnWave with a Mexican partner, opening up a major North American market with a rich agricultural industry. Pick-One has been using a 10kW REV(TM) machine at their Chihuahua manufacturing facility under a Technology Evaluation and License Option Agreement ("TELOA") since late 2019 for product development purposes. As a result of Pick-One's successful development of shelf-stable snack prototypes, they decided to purchase the machine outright and commence commercial-scale production.
Pursuant to the terms of the License, Pick-One will make undisclosed quarterly royalty payments to the Company calculated as a percentage of the revenue generated from their commercial success. EnWave will continue to collaborate with Pick-One to optimize processing efficiencies and help bring improved snack products to market. To-date, EnWave has signed 38 royalty-bearing commercial licenses with food, cannabis and pharmaceutical companies globally.
The expansion of EnWave's global REV(TM) technology footprint into Mexico further proves the significant value proposition for food processors seeking to launch new and innovative premium snack food applications. EnWave holds a robust intellectual property portfolio spanning numerous international markets and has licensed REV(TM) technology to food companies in seventeen countries worldwide.
About Pick-One
Pick-One is a 100% Mexican owned company born from the idea of ??????bringing healthy and delicious products to market. Through the company's commitment to adopting innovative processes and unique flavor profiles, Pick-One has chosen to adopt REV(TM) technology at commercial scale to expand its product portfolio.
For more information, please visit www.pick-one.mx.
About EnWave
EnWave Corporation, a Canadian advanced technology company, has developed Radiant Energy Vacuum ("REV(TM)") - an innovative, proprietary method for the precise dehydration of organic materials. EnWave has further developed patented methods for uniformly drying and decontaminating cannabis through the use of REV(TM) technology, shortening the time from harvest to marketable cannabis products.
REV(TM) technology's commercial viability has been demonstrated and is growing rapidly across several market verticals in the food, and pharmaceutical sectors, including legal cannabis. EnWave's strategy is to sign royalty-bearing commercial licenses with innovative, disruptive companies in multiple verticals for the use of REV(TM) technology. The company has signed over thirty royalty-bearing licenses to date. In addition to these licenses, EnWave established a Limited Liability Corporation, NutraDried Food Company, LLC, to manufacture, market and sell all-natural dairy snack products in the United States, including the Moon Cheese brand.
EnWave has introduced REV(TM) as a disruptive dehydration platform in the food and cannabis sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. EnWave currently offers two distinct commercial REV(TM) platforms:
-- nutraREV which is a drum-based system that dehydrates organic materials quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour; and,
-- quantaREV which is a tray-based system used for continuous, high-volume low-temperature drying.
EnWave is also active in the pharmaceutical industry through a joint development agreement with GEA Lyophil, a leader in GMP drying machinery.
More information about EnWave is available at www.enwave.net.
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>>> Village Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through three segments: Produce Business, Energy Business, and Cannabis and Hemp Business. The company also owns and operates a 7.0 megawatt power plant that generates and sells electricity to British Columbia Hydro and Power Authority; and produces and supplies cannabis products. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive arrangements with other greenhouse producers. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada. <<<
>>> GrowGeneration Corp.(GRWG), through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of horticultural, organics, and lighting and hydroponics products, including lighting fixtures, nutrients, seeds and growing media, systems, trays, fans, filters, humidifiers and dehumidifiers, timers, instruments, water pumps, irrigation supplies, and hand tools. The company also operates GrowGen.Pro, an online e-commerce store. The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines. As of March 27, 2020, it operated a chain of 27 retail and commercial hydroponic/gardening centers, including 5 locations in Colorado, 4 locations in California, 4 locations in Michigan, 2 locations in Nevada, 1 location in Washington, 1 location in Oregon, 4 locations in Oklahoma, 1 location in Rhode Island, 3 locations in Maine, 1 location in Florida, 1 distribution center in California, and an online e-commerce store. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is headquartered in Denver, Colorado.
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>>> AeroGrow International, Inc. (AERO) engages in the development, marketing, direct-selling, and wholesale of indoor garden systems to consumers and retailers worldwide. The company's principal products include indoor gardens and proprietary seed pod kits that allow consumers to grow vegetables, such as tomatoes, chili peppers, and salad greens; fresh herbs comprising cilantro, chives, basil, dill, oregano, and mint; and flowers, which comprise petunias, snapdragons, geraniums, and vinca. It also provides grow lights and a patented nutrient formula, as well as various cooking, gardening, and decor accessories. The company offers its in-home garden systems under the AeroGardens name. Its products are used in the gardening, cooking, healthy eating, and home and office décor markets. The company also provides its products through online and in-store retail distribution, as well as through direct-to-consumer sales channels. AeroGrow International, Inc. was founded in 2002 and is headquartered in Boulder, Colorado. AeroGrow International, Inc. is a subsidiary of SMG Growing Media, Inc.
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>>> Compass Diversified Holdings LLC (CODI) is a private equity firm specializing in acquisitions, buyouts, industry consolidation, recapitalization, and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, safety & security, electronic components, food, foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $4 million and $700 million in companies with cash flows between $10 million and $450 million, enterprise values between $100 million and $500 million, and an EBITDA between $5 million and $75 million. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have majority, and minority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Group Management LLC is the external manager of the Compass Diversified Holdings LLC and manages day-to-day business and operations of firm. Compass Diversified Holdings LLC was founded in 2005 and is based in Westport, Connecticut with an additional office in Irvine, California.
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Compass Diversified Holdings Inc. (CODI)
Compass Diversified Holdings owns a majority interest in hemp food producer Manitoba Harvest. At the time of this writing, Compass Diversified Holdings' annual dividend yield was 8.7%. The company's most recent dividend of $0.36 was paid on April 23, 2020.
https://www.investopedia.com/investing/top-marijuana-stocks-pay-dividends/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo
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>>> Scotts Miracle-Gro Company (SMG)
Investopedia
https://www.investopedia.com/investing/top-marijuana-stocks-pay-dividends/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo
Scotts Miracle-Gro is helping gardeners with a different kind of "grass": marijuana. Although the company doesn't "touch the plant," Scotts has invested heavily in the space. In 2015, the company's Hawthorne Gardening Co. subsidiary purchased General Hydroponics. Scotts Miracle-Gro also has a significant stake in the desktop hydroponics company AeroGrow International—trading over-the-counter as AERO. The company's most recent dividend of $0.58 per share was paid on June 10, 2020. SMG's annual dividend yield is 1.8%. <<<
>>> Why Cannabis Stock IIPR Returned 19% in the First Half of 2020
This dividend-paying marijuana stock was a rare winner in the cannabis space.
Motley Fool
by Beth McKenna
Jul 3, 2020
https://www.fool.com/investing/2020/07/03/why-cannabis-stock-iipr-returned-19-in-the-first-h.aspx
What happened
Innovative Industrial Properties (NYSE:IIPR) stock returned 18.9% in the first half of 2020 (January through June), according to data from S&P Global Market Intelligence. The S&P 500 index had a negative 3.1% return over this period.
The company, often referred to as IIP, is a real estate investment trust (REIT) focused on the cannabis industry. It specializes in industrial properties used for growing and processing cannabis in U.S. states where medical marijuana is legal.
So what
We can attribute IIP stock's solid performance in the first half of 2020 to the company's continued strong financial performance. While most companies in the cannabis space are not profitable, IIP is firmly in the green. Moreover, it also pays a generous dividend, currently yielding 4.5%.
In the first quarter, revenue skyrocketed 210% year over year to $21.1 million, earnings per share (EPS) soared 118% to $0.72, and adjusted funds from operations (FFO) -- a key metric for REITs that drives dividend payouts -- surged 107% to $1.12.
During the quarter IIP acquired seven properties, and it acquired two more between the end of the quarter and May 6, the date of the earnings release. At that time it owned a total of 55 properties.
As you can see in the following chart, IIP has recovered fairly decently from the pandemic-driven market sell-off that started in mid-February and deepened in March. That's not the case with most stocks in the group. The three largest Canadian growers by market cap, Canopy Growth, Cronos Group, and Aurora Cannabis, lost about 23%, 22%, and 52%, respectively, in the first half of 2020.
Now what
For full-year 2020, Wall Street analysts are modeling for Innovative Industrial Properties to grow revenue and EPS 147% and 73%, respectively, year over year.
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>>> Innovative Industrial Properties Acquires Massachusetts Property and Expands Real Estate Partnership with Cresco Labs
Business Wire
July 1, 2020
https://finance.yahoo.com/news/innovative-industrial-properties-acquires-massachusetts-104500231.html
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a property in Massachusetts, which comprises approximately 118,000 square feet of industrial space in the aggregate.
The purchase price for the property was approximately $7.8 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement for the property with a wholly owned subsidiary of Cresco Labs Inc. (Cresco), which intends to operate the property as a regulated cannabis cultivation, processing and dispensing facility upon completion of redevelopment. Cresco is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to $21.0 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be approximately $28.8 million.
This sale-leaseback transaction marks IIP’s fifth acquisition and lease with Cresco, with prior IIP acquisitions and leases for four of Cresco’s licensed cannabis cultivation and processing facilities in Illinois, Michigan and Ohio.
Earlier in the month, IIP also entered into amendments to its leases with Cresco at one of IIP’s Michigan and one of IIP’s Ohio properties, making available an additional $17.0 million in funding for additional improvements of their cannabis cultivation and processing facilities at the properties. The lease amendments also adjusted the base rent under the leases to take into account the additional available funding. Assuming full payment of the additional funding, IIP’s total investment in the Michigan property, which comprises 115,000 square feet of industrial space, will be $32.0 million, and IIP’s total investment in the Ohio property, which comprises 50,000 square feet of industrial space, will be approximately $13.5 million.
As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
"Cresco is a true leader in quality, customer experience and patient care in its core markets, and we are pleased to further expand our long-term real estate partnership with them in Massachusetts," said Paul Smithers, President and Chief Executive Officer of IIP. "The Massachusetts regulated cannabis industry is still in its early stages, and is emerging as one of the strongest medical and adult-use cannabis markets on the East Coast. Our transaction with Cresco represents our fifth property acquisition in Massachusetts, and we are firmly committed to being a strong real estate partner to the industry here for many years to come."
Founded in 2013, Cresco is one of the largest vertically-integrated cannabis companies in the United States, with licensed operations in nine states. With its pending acquisitions, Cresco has 15 licensed cannabis production facilities, 29 retail cannabis licenses and 15 operational cannabis dispensaries. Employing a consumer-packaged goods ("CPG") approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers.
"We are thrilled to partner with IIP on our fifth lease with them. They have been reliable partners and a consistent source of non-dilutive capital that has allowed us to expand our capacity and go deep in our strategic markets," said Cresco Labs CEO and Co-founder Charlie Bachtell.
Massachusetts, with approximately 6.9 million residents, approved cannabis for medical-use by popular vote in 2012, with first sales in 2014. The Commonwealth launched its adult-use cannabis program in 2018, with first sales in November of that year. In 2019, the first full year of the Massachusetts adult-use cannabis program, retail cannabis sales exceeded $587 million, and are expected to reach $1.35 billion by 2024, according to BDS Analytics. Similar to other states during this coronavirus health crisis, Massachusetts authorities ordered all businesses that are not offering essential services to close operations for a period of time. However, the Massachusetts Cannabis Control Commission deemed Medical Marijuana Treatment Centers and Certifying Health Care Providers as essential services that were permitted to remain open during this time. The adult-use cannabis program was required to close for approximately two months, but reopened in late May.
As of July 1, 2020, IIP owned 58 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling approximately 4.4 million rentable square feet (including approximately 1.4 million rentable square feet under development/redevelopment), which were 99.2% leased (based on square footage) with a weighted-average remaining lease term of approximately 16.2 years. As of July 1, 2020, IIP had invested approximately $791.3 million in the aggregate (excluding transaction costs) and had committed an additional approximately $190.8 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. These statistics do not include up to approximately $7.0 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Illinois properties, or approximately $19.7 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Massachusetts properties, as the tenants at those properties may not elect to have IIP disburse those funds to them and pay IIP the corresponding base rent on those funds. These statistics also treat IIP’s Los Angeles, California property as not leased, due to the tenant being in receivership and its ongoing default in its obligation to pay rent at that location.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
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Cannabis and COVID-19: Pandemic's Impact on Legalization and Legislation https://at.law.com/k6eEDs?cmp=share_twitter via @thelegalintel
The oil crash folded their old business. Now they’re betting on a new kind of oil. https://www.ksat.com/news/texas/2020/06/11/the-oil-crash-folded-their-old-business-now-theyre-betting-on-a-new-kind-of-oil/
Recent Studies Indicating CBD may be Better Therapy for Treating Anxiety Than Medical Marijuana https://www.finanznachrichten.de/nachrichten-2020-06/49886065-recent-studies-indicating-cbd-may-be-better-therapy-for-treating-anxiety-than-medical-marijuana-008.htm/
CBD Oil & stress: studies show positive effects https://www.bmmagazine.co.uk/business/cbd-oil-stress-studies-show-positive-effects/
Virginia governor says new facility will process hemp and CBD oil https://www.bostonglobe.com/2020/06/19/marijuana/virginia-governor-says-new-facility-will-process-hemp-cbd-oil/?event=event25 via @BostonGlobe
CBD Guide for Anxiety: Can CBD Help Relieve Anxiety and Other Mental Health Disorders? SPONSORED CONTENT https://www.metrotimes.com/detroit/cbd-guide-for-anxiety-can-cbd-help-relieve-anxiety-and-other-mental-health-disorders/Content?oid=24760375
Innovative Industrial Properties (IIPR) - They are benefiting from the sector turmoil by buying the facilities of strapped cannabis producers and then leasing them back to the companies. So it looks like one of the safer ways to play the cannabis sector longer term, and IIPR has a 4.3% dividend, market cap $1.8 bil.
http://innovativeindustrialproperties.com/
>>> Innovative Industrial Properties, Inc. (IIPR) is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. <<<
Growing facilities -
http://innovativeindustrialproperties.com/iip-our-portfolio/
Innovative Industrial Properties - >>> 3 Recession-Proof Stocks to Buy Now
These companies will likely prosper in almost any economic environment.
Motley Fool
Will Healy
Jun 7, 2020
https://www.fool.com/investing/2020/06/07/3-recession-proof-stocks-to-buy-now.aspx
The COVID-19 pandemic stoked deep fears about how the economy would cope with the shutdowns required to get the disease under control. Consequently, stocks sold off in February and March as job losses and closures escalated.
However, investors often forget that some companies can prosper, even in harsh conditions, and may actually perform better when a recession occurs.
For those who don't forget, the recent crisis may a reason to reassess their stock portfolio and add some companies that can generate positive returns regardless of the state of the broader economy. Companies like Dollar Tree (NASDAQ:DLTR), Innovative Industrial Properties (NYSE:IIPR), and Verizon (NYSE:VZ) appear to match that description.
1. Dollar Tree
The Dollar Tree empire is made up of two extreme discounters. The company originally established the Dollar Tree line of stores, which sells most of its items at the $1 price point and the rest under $1. It later acquired Family Dollar. While Family Dollar stores also sells $1 and under items, they don't operate under the price limit of its sister brand.
Dollar Tree stock took a hit when it acquired Family Dollar in 2015. A failure to integrate the new brand into the broader company led to stock volatility, forced Family Dollar conversions to Dollar Tree stores, and occasional outright closures. This placed its most direct competitor, Dollar General (NYSE:DG), in a more favorable light as an alternative investment.
But with the COVID-19 crisis and the recessionary indicators that came with it Family Dollar stores ended up getting a performance boost. Many of the millions of newly unemployed were looking for ways to save money in trying times and were drawn to stores like Family Dollar. Dollar Tree stores also partially benefited, but supply chain issues with China, as well as a lack of Easter holiday sales due to the coronavirus outbreak, created lower sales overall.
Still, with supply chains realigning and millions still unemployed, shoppers will likely continue to frequent both stores.
Dollar Tree stock declined in February along with the broader market. But surging revenue from Family Dollar (which, along with Dollar Tree, were deemed essential businesses and remained open) has helped the company's stock recover its value and it is trading up for 2020. Dollar Tree stock trades at about 20 times forward earnings, which suggests the stock is trading at a premium. But analysts expect average annual profit increases of approximately 7% per year over the next five years.
Dollar Tree may continue to face challenges with Chinese suppliers and integrating Family Dollar into the fold. But with recessionary unemployment rates likely to persist for the foreseeable future, the company's brands should continue to be popular with consumers and with investors.
2. Innovative Industrial Properties
Innovative Industrial Properties allows investors in the marijuana industry to benefit in two ways. First, marijuana companies are a trending investment sector at the moment and are considered one of the few recession-proof sectors of the market. Second, while marijuana growers are still considered risky investments, a real estate investment trust (REIT) which rents property to cannabis growers has some insulation from the risks inherent in the industry. Being a REIT also somewhat shields the company from the excessive regulations associated with marijuana growers and allows Innovative Industrial to earn a profit and pay a dividend while many grower stocks are losing money and not rewarding shareholders.
Over the last year, Innovative Industrial has benefited from two key trends. One trend involves small start-ups selling their production properties to generate ready cash flow needed to operate and then leasing the property back immediately from the company they sold it to (in this case, Innovative Industries). The second trend is a change in legislation. Where previous laws limited the Innovative Industries' reach to states that had legalized medical or recreational cannabis, now federal hemp production legalization means the company can operate properties in all 50 states.
Because the potential is still not being realized for this industry, this stock trades at a forward P/E of 23.4, meaning it seels at a premium. But this appears reasonable considering that analysts predict earnings increases of 78.8% this year and 37.2% in fiscal 2021.
As a REIT, Innovative Industrial Properties must pay out at least 90% of net income to its shareholders. The company has not disappointed in that regard and its $4 per-share dividend payout yields about 4.6%. This dividend has also increased every year since Innovative Industrial paid its first dividend in 2017.
Grandview Research forecasts a compound annual growth rate for the global cannabis industry of 18.1% through 2027. This should ensure that the company will continue to attract tenants.
As hemp grows more popular and as more jurisdictions loosen restrictions on marijuana use, demand for properties like the type owned by Innovative Industrial should continue to surge.
3. Verizon
Verizon has struggled somewhat recently as declining margins in its wireless business and massive investments in 5G infrastructure weighed on the company. Last year alone, Verizon spent $17.9 billion on capital expenditures. This has contributed to the company's $106.56 billion long-term debt load. It also represents a significant burden for a company worth $61.65 billion after subtracting liabilities from assets.
Still, it does not have the much higher debt load and side business distractions of archrival AT&T (NYSE:T). Moreover, consumers need communication and internet connectivity in good times and bad. Even if the economy continues to struggle, the march to 5G will probably continue and the need for smartphones and internet connectivity will be there.
And Verizon has an investing advantage over its other big rival, T-Mobile (NASDAQ:TMUS), as Verizon's shareholders receive a dividend. Verizon paid out $2.46 per share last year and its payout yields about 4.3%. This payout has risen every year for more than a decade. The dividend claims about 51.7% of company profits, leaving plenty of free cash flow left over for infrastructure spending, debt paydown, dividend increases, and other investments.
This has left Verizon the growth-and-income play of the wireless industry. Verizon has risen by about 121% over the last 10 years. While that does not beat T-Mobile, it comes out well ahead of AT&T, which (with its dividend yield of about 6.6%) is primarily an income play.
In addition to a generous payout, the company sells for just 11.9 times forward earnings. Admittedly, some may sour on Verizon as analysts see profit growth averaging 1.9% per year over the next five years. Still, with 5G adoption expected to grow for years to come, Verizon should keep producing growth and income regardless of the broader economy's performance.
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$GRLB is in the game.. a sleeper doin the right thing...
The Industry Outlook Is Promising
Two tailwinds are driving the CBD industry forward.
First, the many use cases of cannabidiol are taking the industry mainstream.
Data from CBI Insights reveal that CBD products are used in the following business sectors.
Health and wellness
Food and beverages
Cosmetics
Haircare
Sports
Pet industry
The wide variety of use cases available for cannabidiol will help the industry grow as consumer awareness grows toward these products
Difference between Green Lotus and the big companies IMO is that GRLB is taking pay cuts and trimming expenses while the bigger companies are giving themselves more access to shares to sell.. ugh !! Who you wit ?
https://finance.yahoo.com/news/three-stocks-buy-cannabis-industry-123356081.html
>>> Innovative Industrial Properties Signs New Sale-Leaseback Deal for Pennsylvania Complex
It's the REIT's third such arrangement with cannabis grower and processor Holistic Industries.
Motley Fool
by Eric Volkman
Jun 12, 2020
https://www.fool.com/investing/2020/06/12/innovative-industrial-properties-signs-new-sale-le.aspx
Innovative Industrial Properties (NYSE:IIPR) has entered into the latest in its long series of sale-leaseback deals. The real estate investment trust (REIT) that specializes in properties for the marijuana industry announced Wednesday it has made such an arrangement to buy a complex in New Castle, Pennsylvania, from privately held Holistic Industries.
Innovative is paying $8.9 million, excluding transaction costs, for a complex that covers 7.4 acres of property, on which sits roughly 108,000 square feet of industrial space.
It then turned around and signed the sale-leaseback arrangement with Holistic. The amount of rent the cannabis company will pay for its former property was not specified, but Innovative did say that up to $6.4 million will be provided as reimbursement for the tenant's improvements to the complex.
Sale-leaseback transactions -- in which a property's owner sells their real estate, then leases it from the buyer -- are now common in the cannabis industry. This is because they provide much-needed capital for marijuana companies, which frequently struggle with cash flow and/or profitability issues, but lack access to bank loans.
Innovative and Holistic have gone down the sale-leaseback road together before. In its press release trumpeting the deal, Innovative said that this is their third such arrangement. The two previous ones covered properties in Maryland and Massachusetts.
Holistic grows and processes medical cannabis at the Pennsylvania facility. So far, marijuana can only be legally sold and consumed in the state for medical purposes.
On Thursday, Innovative's shares fell by 5.6%, broadly in step with the decline recorded by the wider stock market.
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>>> Cannabis Player EnWave's Revenue Jumps 49%
In its fiscal third quarter, the Aurora and Tilray partner's bottom-line result edged down slightly year over year.
Motley Fool
by Beth McKenna
Aug 29, 2019
EnWave (TSXV:ENW) (OTC:NWVC.F) reported third-quarter results for fiscal 2019 after the market close on Wednesday, Aug. 28.
Revenue jumped 49% year over year, which is a deceleration from year-over-year growth of 110% in the second quarter and 73% in the first quarter. The bottom line edged slightly lower, coming in at a net loss per share of 0.01 Canadian dollars, down from breakeven in the year-ago period as well as in the previous two quarters.
The Canada-based company makes all-natural dried cheese snacks, and it licenses, manufactures, and installs equipment for dehydrating organic materials, including food, pharmaceuticals, and cannabis -- both marijuana and hemp.
EnWave shares on Canada's TSX Venture Exchange (TSX) have gained 77.1% in 2019 through the regular trading session on Aug. 28, while shares traded over the counter (OTC) in the United States are up 74.6%. The S&P 500 has returned 16.8% over this period.
Here's how the third quarter worked out for EnWave and its investors.
EnWave's results: The raw numbers
All monetary figures are in Canadian dollars.
Metric
Fiscal Q3 2019
Fiscal Q3 2018
Change
Revenue
CA$10.08 million
CA$6.78 million
49%
Net income (loss)
(CA$1.32 million)
(CA$104,000)
N/A. Loss widened by CA$1.22 million.
Earnings per share
(CA$0.01)
CA$0.00
N/A.
DATA SOURCE: ENWAVE. RESULTS ARE FOR THE PERIOD ENDED JUNE 30 AND ARE BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS).
Gross margin came in at 28.4%, down from 43.2% in the year-ago period, and lower than last quarter's 35.6%. Gross margin will likely be lumpy for some time due to the timing of machine sales because the EnWave Canada segment sells relatively few machines. For the first nine months of this year, gross margin was 33.8%, down from 36.5% in the year-ago period.
Nearly half the quarter's loss was due to a restructuring charge of CA$612,000, which will be discussed further in a moment.
Segment results
Management breaks out segment results on a fiscal year-to-date basis, rather than by the quarter, and that's the best way for investors to consider the results, given the lumpiness factor previously discussed.
Segment
First Nine Months of Fiscal 2019 Revenue
Year-Over-Year Change
First Nine Months of Fiscal 2019 Segment Income
Year-Over-Year Change
NutraDried
CA$18.09 million
81%
CA$2.56 million
12%
EnWave Canada (REV dehydration business)
CA$8.56 million
56% (CA$4.08 million) N/A. Loss widened from CA$2.83 million in year-ago period.
Segment totals
CA$26.65 million
72% (CA$1.52 million) N/A. Loss widened from CA$547,000 million in the year-ago period.
DATA SOURCE: ENWAVE.
EnWave's wholly owned NutraDried Food subsidiary, in Washington State, produces Moon Cheese using EnWave Canada's Radiant Energy Vacuum (REV) dehydration technology. It distributes its products via retailers such as Costco in the U.S. and Canadian markets.
The company said in the management discussion part of its its earnings release that it "secured a significant number of equipment purchase orders at the end of Q2 2019 and early Q3 2019 that will continue to increase EnWave Canada's revenues for the remainder of fiscal year 2019."
What happened with EnWave in the quarter?
In April, it reorganized the NutraDried sales and marketing operation, incurring a one-time restructuring charge of CA$612,000. It hired a new senior vice president for sales and a chief marketing officer, and terminated its management services agreement with an outside entity. It expects this move to reduce the overall cost of its sales and marketing function.
In April, the company signed a royalty-bearing license agreement with Fresh Business Consulting, giving it "the exclusive rights to produce a variety of premium food products in Peru." Fresh purchased a 10kW REV machine to kick off commercial production.
In May, EnWave signed a royalty-bearing license with food company Calbee, which will explore the use of REV tech for developing snack products and ingredients in Japan. Calbee purchased a 10kW REV machine.
In April, as I wrote last quarter, EnWave entered a licensing deal and formed an intellectual-property partnership with Aurora Cannabis (NYSE:ACB), a top Canadian marijuana grower. In addition, Aurora made a $10 million strategic equity investment in EnWave, giving it an approximate 4.91% stake. Also, as I've previously written:
The royalty-bearing license agreement gives Aurora the exclusive rights to EnWave's patented radiant energy vacuum (REV) drying technology for the production of cannabis materials in the European Union, excluding Portugal. "Aurora has also secured exclusive license options for both Australia and South America, excluding Peru, exercisable pursuant to minimum REV machine purchase order requirements," according to the press release. (Since then, Aurora has purchased a 60kW REV machine to be installed in South America in 2020.) "Additionally, Aurora has signed a nonexclusive sub-license to use REV technology in Canada." Canadian grower Tilray (NASDAQ:TLRY) has the exclusive right to use and sub-license EnWave's REV tech in Canada, so it also stands to financially benefit from Aurora's using REV in Canada.
Moreover, Aurora placed a purchase order for two of EnWave's 120kW REV dehydration systems for its Aurora Sky and Aurora Sun facilities in Canada, and intends to purchase a third 120kW system for its Aurora Nordic facility in Denmark within 60 days of the agreement. (The companies are currently negotiating the scope of an EU-GMP certified machine.)
Major cannabis market activity after the quarter ended
In July, EnWave signed a royalty-bearing license with Electric Farms, which will use the 10kW REV machine it purchased to rapidly dehydrate hemp flowers grown in both its indoor and outdoor facilities in Tennessee.
In August, the company installed the first 60kW REV machine at Tilray's Ontario facility. "The machine is expected to begin commercial operations in late Q4 2019 or early Q1 2020 and will represent the first commercial-scale machine installed for cannabis processing in Canada," according to the management discussion release.
What management had to say
Management didn't provide a quote in the earnings release, nor did it hold a conference call. This isn't unusual for small companies.
Looking ahead
While year-over-year revenue growth decelerated in the quarter, fiscal year-to-date revenue growth remains strong at 72%.
The company doesn't provide official guidance. As previously noted, however, management expects EnWave Canada's revenue to increase for the remainder of the fiscal year. As of Aug. 28, the segment's backlog consisted of 11 machines:
One for Tilray (60 kW, cannabis, Portugal)
One for Milne Microdried (120kW, fruits and vegetables, U.S.)
Four for The Green Organic Dutchman (three 120kW and one 60kW, cannabis, Canada)
Three for Aurora Cannabis (two 120kW, one 60 kW, cannabis, Canada)
One for Calbee (10kW, fruits and vegetables, Japan)
One for Electric Farms (10kW, hemp, U.S.).
<<<
>>> Cannabis Player EnWave's Earnings Hurt by Pandemic, but Not Too Badly
The cannabis processing tech provider's revenue fell 15% year over year in its fiscal second quarter.
Motley Fool
by Beth McKenna
Jun 1, 2020
EnWave (TSXV:ENW) (OTC:NWVC.F) reported fiscal second-quarter 2020 results on Friday, May 29, before the market open. The cannabis player's revenue declined 15% year over year, driven by the fallout from the COVID-19 pandemic. It posted a loss per share of 0.02 Canadian, whereas it broke even in the year-ago period.
The company's NutraDried segment, based in Washington state, makes all-natural dried cheese snacks. Its Canada-based EnWave segment licenses, manufactures, and installs equipment for dehydrating organic materials, including food, pharmaceuticals, and cannabis.
The market reaction was slightly positive. On Friday, EnWave shares on Canada's TSX Venture Exchange (TSX) gained 2.6%, and shares traded over the counter (OTC) in the United States were up 1.3%. The S&P 500 index rose 0.5%.
EnWave's key numbers
All monetary figures are in Canadian dollars.
Metric
Fiscal Q2 2020
Fiscal Q2 2019
Change
Revenue
CA$7.49 million
CA$8.77 million
(15%)
Net income
(CA$1.85 million)
(CA$0.22 million)
N/A. Loss expanded more than 700%.
Earnings per share
(CA$0.02)
CA$0.00
N/A. Result worsened to negative from breakeven.
DATA SOURCE: ENWAVE. RESULTS ARE FOR THE PERIOD ENDED MARCH 31, 2020, AND ARE BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS).
Segment revenue results were as follows:
EnWave: Revenue rose 8% year over year to CA$2.2 million, driven by higher radiant energy vacuum (REV) dehydration technology machine sales primarily to customers in the food industry.
NutraDried: Revenue fell 21% year over year to CA$5.3 million. The decline was driven by distribution within fewer Costco stores, partially offset by growth in the grocery and online sales channels.
Gross margin came in at 25%, down from 36% in the year-ago period. The decline was driven by a change in sales mix. The NutraDried segment sports higher margins than the EnWave segment.
Plans to launch REV tech into the U.S. cannabis market
During the quarter, EnWave announced plans to begin the commercial deployment of REV technology into the U.S. cannabis market. The company said that it's "in talks with numerous U.S. cannabis companies."
Pandemic's impact and company's mitigation response
In its earnings release, EnWave included a lengthy discussion of the COVID-19 pandemic's impact on its operations. Here are what I view as the key points (wording directly from release):
Both EnWave and NutraDried have maintained manufacturing operations without interruption.
The international travel restrictions imposed globally to contain the spread of the virus have had a material impact on EnWave's international operations.
[O]ur technical team has successfully developed remote installation and training programs for our 10kW REV machinery to mitigate the impact ...
COVID-19 has had an impact on the distribution channels for NutraDried's products. Several states in the U.S. have issued stay-at-home orders, leading many non-essential retailers to close ... , thus disrupting NutraDried's distribution logistics. [The "several" in "several states" would more accurately be "many."]
COVID-19 has challenged our ability to secure meetings with buyers to gain new points of distribution for Moon Cheese.
In response to the pandemic, in late March, EnWave implemented a cost containment strategy. Among other actions, it's reduced headcount by 36 full-time-equivalent employees and stopped using contractors.
Thus far (two months), the company has reduced expenses, at an annual run rate, by $4.7 million.
EnWave's balance sheet remains solid. It has a working capital surplus of CA$24.4 million and cash position of CA$15.6 million. Indeed, management believes that it's "in a strong position to pursue growth across both segments."
Looking ahead
In light of the pandemic, EnWave turned in a fairly solid quarter.
The company doesn't provide guidance. It's a given that its results in fiscal Q3 (corresponding to calendar Q2) will also be negatively affected by the global crisis -- and probably more so than in fiscal Q2, at least on the revenue side.
It's also highly likely that fiscal Q4 results will be hurt, though the pandemic's impact on its operation seems poised to lessen by fiscal Q4. U.S. states have largely begun to reopen their economies, which should help its NutraDried segment get back on track.
<<<
Scientists believe cannabis could help prevent and treat coronavirus
https://nypost.com/2020/05/21/scientists-believe-cannabis-could-help-prevent-treat-coronavirus/
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Cannabis Cultivators Reap Benefits of Widespread Legalization Campaigns https://prn.to/2Ktpfsh
USDA drops DEA hemp testing requirement for 2020, while FDA acknowledges demand for CBD https://hempindustrydaily.com/usda-drops-dea-testing-requirement-while-fda-acknowledges-demand-for-cbd/
$GRLB GL Brands Inc.’s Green Lotus Partners with “As Seen on TV” Leader Ontel® Products Corp.
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>>> Innovative Industrial Properties, Inc. (IIPR) is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. <<<
$GRLB Made the Front Cover
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$MJH USDA drops DEA testing requirement, while FDA acknowledges demand for CBD https://hempindustrydaily.com/usda-drops-dea-testing-requirement-while-fda-acknowledges-demand-for-cbd/
Freedom Leaf??
$FRLF becomes $GRLB tomorrow the 13th
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>>> Nearing finish line, fight for cannabis banking bill shifts to the Senate
The Hill
BY SYLVAN LANE AND ALEX GANGITANO
10/02/19
https://thehill.com/business-a-lobbying/463932-nearing-finish-line-fight-for-cannabis-banking-bill-shifts-to-the-senate
Advocates are hopeful that a bill that would allow the financial sector to finally serve cannabis businesses could head to President Trump’s desk by the end of the year.
The House in a strong bipartisan vote last week passed the Secure and Fair Enforcement (SAFE) Banking Act, which would allow banks and financial institutions to work with cannabis businesses.
The bill now faces an uncertain future in the Republican-held Senate, with little time left on the legislative calendar and Congress already distracted by funding fights and the House Democratic impeachment inquiry into Trump.
But supporters see growing momentum for the legislation and are hopeful they are nearing the finish line despite challenges.
The unusual coalition of financial sector lobbyists, progressive lawmakers, law enforcement officials and cannabis businesses backing the bill cheered the House vote as building momentum for the Senate.
“A strong bipartisan outcome in the House last night means that we have a better chance of getting the Senate’s attention,” Terry Holt, a spokesman for National Cannabis Roundtable and a partner at HDMK, told The Hill after the 321-103 House vote, which saw 229 Democrats, 91 Republicans and one Independent back the bill.
“Because the authors in the House were able to work together in a bipartisan way, the bill did improve to the point where we feel like it can reach the next stage.”
Industry groups have long pushed for legislation on the issue.
Banks and credit unions have largely avoided serving cannabis firms because of the legal limbo between federal and state laws. Cannabis is illegal under federal law, but 33 states have legalized medical or recreational use of the drug. Any financial firm that lends to, finances or holds money for a cannabis company or its employees could face steep federal penalties, even in states that have legalized the drug.
Advocates for legalization and a financial services sector eager to tap a fast-growing industry have united behind the SAFE Banking Act. The bill would prohibit federal regulators from penalizing banks or credit unions for serving cannabis businesses that comply with state laws.
It’s a top priority for a cadre of powerful financial services lobbying groups, including the American Bankers Association (ABA), the Independent Community Bankers of America and the Credit Union National Association.
The focus is now on the Senate Banking Committee and its chairman, Sen. Mike Crapo (R-Idaho), who has pledged to take action on the issue. While Crapo is personally opposed to marijuana legalization, he told CQ last week that his panel will consider the SAFE Banking Act or a similar bill “as soon as we can.”
Supporters of the bill cheered Crapo’s pledge.
“Chairman Crapo indicated he wants to get a cannabis banking bill marked up by the end of the year, and we anticipate it will be similar to the SAFE Banking Act. This week’s historic bipartisan vote in the House undoubtedly builds momentum for Senate action,” said ex-Rep. Carlos Curbelo (R-Fla.), a strategic adviser for the Cannabis Trade Federation.
But there are still questions about the depth of GOP Senate support.
While Republicans have eagerly advanced other bills to ease financial sector regulation, GOP senators have shown little interest in grappling with the controversy over cannabis.
Only two GOP senators attended a July Banking panel hearing on the bill: Crapo and Sen. Cory Gardner (Colo.), one of only five Republican co-sponsors of the Senate version of the bill.
“It is really important to see what Chairman Crapo proposes,” said a financial services lobbyist advocating for the bill.
“We don’t know where his head is on this,” the lobbyist added. “We’re very appreciative of his interest and his support and finding a resolution, but the devil’s really going to be in the details.”
Bill supporters have taken steps to win over Republican backing, in particular from Senate Majority Leader Mitch McConnell (R-Ky.).
The House version included a measure to ease regulations on hemp businesses, a crucial industry in McConnell’s home state of Kentucky. McConnell, who could make or break the measure, helped secure a provision to lift federal penalties on hemp production in the 2018 farm bill.
But McConnell remains a wild card. The Senate leader has also spoken out against legalizing marijuana and called cannabis hemp’s “illicit cousin.”
A spokesman for McConnell declined to comment.
Another question mark is President Trump, who has not addressed the issue.
The bill’s supporters, though, say GOP senators will be motived to take action to address the split in federal and state laws and the legal limbo faced by banks.
“There is a growing sense of urgency behind resolving the cannabis banking problem because it would greatly improve public safety and increase transparency into the rapidly expanding state-legal cannabis industry,” Curbelo said.
Advocates note that cannabis businesses often deal in cash because they don’t have access to banking.
Curbelo said he was confident lawmakers would decide that “this industry deserves the same access to banking services as all others.”
Randal Meyer, executive director for a cannabis coalition, Global Alliance for Cannabis Commerce, also touted the SAFE Banking Act to Republicans who don’t want to legalize cannabis.
“The SAFE Banking Act does not legalize cannabis, it solves a narrow and specific public safety and policy question,” Meyer said.
But the bill also faces opposition from groups who see it as a step toward legalizing marijuana nationally.
“We’re foolish to think this is the end to the marijuana industry, this is the beginning. To them, this is legalization by the back door because it allows institutional investors to market and promote marijuana, which is their dream,” said Kevin Sabet, former White House Office of National Drug Control Policy adviser and CEO of Smart Approaches to Marijuana, a group opposing legalization.
“We think that banking would be a handout to drug cartels who will exploit and expose U.S. financial systems to their end,” he added. “I don’t think the Republicans want to be the party of transnational criminal organization.”
Still, financial industry groups say they intend to prioritize the legislation this fall and are pushing the Senate to act.
“We believe that the SAFE Banking Act provides a solid foundation,” said James Ballentine, ABA’s executive vice president of congressional relations and political affairs.
“If it were to become law today, it would be extremely helpful.”
<<<
>>> Commercial real estate booms in cannabis-friendly states
Yahoo Finance
Sarah Paynter
February 12, 2020
https://finance.yahoo.com/news/commercial-real-estate-booms-in-cannabisfriendly-states-164314252.html
Investors are buying up warehouses and retail space in cannabis-friendly states.
In a reversal from 2018 trends, cannabis investors are buying up commercial property, particularly warehouses, in states where recreational cannabis use has been legalized for more than three years, according to a new study by the National Association of Realtors, based on a September 2019 survey of over 600 commercial brokers in states like Colorado, where recreational cannabis use is legalized, and in states, like Florida, where medical marijuana use is legal.
The U.S. has a patchwork of marijuana legalization laws by state, despite federal laws against the drug. Graphic by the National Association of Realtors.
“It is very important to understand the supply and demand, and the regulatory dynamic, in each state. Focusing on states with higher barriers to entry makes a license more valuable and makes that real estate more valuable,” said Katie Barthmaier, chief executive officer of Green Acreage, a cannabis-focused real estate investment trust.
Warehouse demand increased in 42% of the markets with longstanding (over three years) recreational legalization, and 34% of markets that legalized recreational use since 2016 also saw increased demand from the previous year. Only 18% of markets without recreational marijuana legalization claimed warehouse demand growth.
In 2018, warehouse demand in states with only medical use outpaced demand in states with recreational use, 34% to 27%, respectively, according to last year’s study.
In a reversal from 2018 trends, cannabis investors are buying up commercial property in states where recreational cannabis use has been legalized for more than three years. Graphic by the National Association of Realtors.
“In states that have a longstanding legal [cannabis] industry, warehouses have especially been of interest to commercial investors. That increased demand, I suspect is not just for storage but for growing,” said Dr. Jessica Lautz, vice president of demographics and behavioral insights for the National Association of Realtors.
Meanwhile, demand for retail space increased in 27% of longstanding recreation-friendly markets (before 2016), compared to 19% of recently-legalized markets or 18% of prescription-only markets. The trend is a reversal from 2018, when storefronts saw greater growth in medical use-only markets than in markets with recreational use.
“Investors knew folks would need space to cultivate and manufacture cannabis. A lot of unused space was rented up and bought by investors,” said Jack Nichols, general counsel and chief operating officer of Harborside, a Calif.-based marijuana company. Nichols said that cannabis investor interest has inflated real estate prices as demand for commercial space grows.
Cannabis companies are held back
Because cannabis companies cannot turn to traditional banks, buying or leasing property can be difficult. Financing is usually supplied by specialized venture capitalists, private real estate investment funds and publicly-traded companies.
“On the investment side, banks cannot loan you money, insurance companies cannot deal with you and few funds can enter the space. There is no institutional capital in the space,” said Ori Bytton, founder of California-based real estate management company for cannabis operators, WeGrow CA, and founder and chief executive officer of Natura Life + Science, the largest vertically-integrated grow and processing facility in California.
Cannabis companies say that investor-driven capital offers loans at high interest rates and with hefty restrictions.
“Everybody thinks cannabis is the most profitable business, and they try to take advantage of it… They all wanted me to personally put up my house as a guarantee on a lease… It’s egregious,” said Heidi Adams, chief marketing officer at Calif.-based Henry’s Original cannabis company, which she said searched a year and a half before finding a “reasonable” lease.
Restrictions could soon lift, however, if the Senate passes the SAFE Banking Act, which would give cannabis companies access to traditional banking. The act was passed by the U.S. House of Representatives in September 2019.
<<<
Another dropping shoe. This will be the norm for awhile. Only good news is that quality names are selling shares at discount prices.
CVSI 0.91
Curaleaf 6.43
Charlotte's 6.74
MJ 16.09
Medipharm 2.00
Cresco 5.38
Not so great but attractively priced
VIVO 0.23
Medmen 0.39
Green Growth 0.25
$FRLF GL Brands (Formerly Freedom Leaf) Announces Fiscal First Quarter 2020 Financial Results.
$FRLF GL Brands CEO Carlos Frias Discusses Branding, Distribution and Export Agreement with Mexico (AUDIO)
https://www.finanznachrichten.de/nachrichten-2020-02/48766264-gl-brands-ceo-carlos-frias-discusses-branding-distribution-and-export-agreement-with-mexico-audio-296.htm
$FRLF Raising Cannabis Capital 0177: GL Brands | Carlo Frias
Cannabis Podcast Network
https://www.mjbulls.com/episodes/2020/2/2/raising-cannabis-capital-0177-gl-brands-carlo-frias
>>> Aurora Cannabis Unlikely to Meet Debt Covenants, Analysts Warn
Bloomberg
By Kristine Owram
January 10, 2020
Stock downgraded by two analysts amid balance-sheet risks
Company has $400m at-the-market equity program it can tap
https://www.bloomberg.com/news/articles/2020-01-10/aurora-cannabis-unlikely-to-meet-debt-covenants-analysts-warn?srnd=premium
The chorus of voices warning of risks to Aurora Cannabis Inc.’s balance sheet is growing louder.
With a C$360 million loan coming due in August 2021, at least three analysts have cautioned that the pot company may be unable to meet the covenants on that debt.
“With balance sheet risks to remain a core investment thesis in 2020 in our view, and lingering uncertainty especially on financial covenants, we struggle to envision a scenario where shares have sustainable support,” Bank of America analyst Christopher Carey said in a note published Friday.
He downgraded Aurora to underperform from neutral and cut his 12-month price target to C$1.50 from C$4. Ultimately, Carey expects Aurora will be able to restructure the covenants, “a big step in helping investor confidence.”
Aurora didn’t immediately respond to a request for comment. Shares fell as much as 10.7% in Toronto Friday, and are down 83% from their high in March amid a broader slump in pot stocks.
Shares are down more than 80% from their March high
Piper Sandler analyst Michael Lavery also downgraded Aurora to underweight from neutral on Friday and cut his price target to $1 from $3, citing “notable risk” from its balance sheet position.
Lavery pointed to a loan covenant that requires Aurora to keep its debt-to-Ebitda ratio below 4x after Sept. 30 of this year, and said he doesn’t expect it to reach that level until the second half of calendar 2022. He also cautioned that Aurora is likely to generate negative cash from operations until the fiscal third quarter of 2021.
“We project a C$200 million cash deficit in the interim, which may prove difficult to finance in this capital environment,” Lavery said.
Earlier this week, Scott Willis at Toronto-based research firm Grizzle said Aurora could be headed for “technical default” if it fails to meet its covenants. He expects Aurora to write down more than C$2 billion of goodwill and intangible assets, sending its equity value below the minimum required in the debt covenants.
Read more: Aurora Greenhouse Sale Implies Massive Writedowns, MKM Says
Aurora does have a $400 million at-the-market equity distribution program that it can tap, but that would further dilute shareholders who already saw the value of their shares reduced by about 6% when the company restructured its convertible debentures in November.
Last month, Aurora said Chief Corporate Officer Cam Battley had stepped down. It’s also deferred construction at two facilities in Denmark and Alberta, which is expected to save approximately C$200 million of cash in the near term.
<<<
>>> Beer Makers Face Tough Times as Teens Drink Less, Cowen Says
Bloomberg
By Felice Maranz
December 26, 2019
https://www.bloomberg.com/news/articles/2019-12-26/beer-makers-face-tough-times-as-teens-drink-less-cowen-says?srnd=premium
Kids shift from ‘legacy’ products in favor of vaping and pot
Importer Constellation Brands may emerge as a winner
Cowen is keeping a cautious view on the prospects for more beer consumption, particularly domestic beer, as drinkers turn to spirits and seltzer and as a new study indicates teenagers are rejecting alcohol and cigarettes.
Data show that schoolchildren in eighth, tenth and twelfth grades are continuing to make trade-offs between vaping and cigarettes and between cannabis and alcohol, with teens “increasingly shifting away from legacy consumption offerings,” analysts led by Vivien Azer wrote in a note. Signals are mixed for companies, with Constellation Brands Inc. and Brown-Forman Corp. potentially gaining and Altria Group Inc. missing out.
Read more: Dec. 18, Record Number of Teens Vaped Marijuana in Latest Drug Use Survey
“Given the declines in youth incidence of alcohol, the shifts in underlying sub-category trends will ultimately be increasingly important,” Azer said, noting that “pockets of beer, including imports, continue to expand at healthy rates.” Meanwhile, alcohol and cannabis use is converging, as are “perceived risks and disapproval,” she said. There are also declines in lifetime alcohol use, perhaps linked with an “increasingly health conscious consumer,” she said.
Here are some of the implications for stocks, according to Cowen:
Constellation Brands: Has gained share as it leads in imported beer in the U.S., with Modelo Especial and its Corona Family delivering growth and “attractive demographic attributes.” Outperform.
Brown-Forman: “Firmly positioned” as distilled spirits category continues to gain market share and the company keeps growing in premium bourbon and tequila. “The domestic spirits business is healthy and should be supplemented by the recent launch of Jack Daniel’s Tennessee Apple,” even as tariff-related costs have recently pressured margins. Outperform.
Boston Beer Co.: Exposure to hard seltzer via Truly “has changed its revenue algorithm,” even with difficulties in beer. Cowen is watching for seltzer tailwinds and a lemonade line-extension slated for early 2020. Outperform.
Molson Coors Brewing Co.: Competition remains intense, while the company is still “over-indexed” to mainstream beer and targets outlined in a recent restructuring are long established. Market perform.
Altria: Though study data look “discouraging for manufacturers,” Cowen flagged Nielsen industry data showing some “recent stability in cigarette volume declines.” Volume recovery may have an out-sized impact due to the “accretive unit economics between a pack of cigarettes and vapor pod.” Market perform.
Turning Point Brands: May be insulated from youth trends as the firm’s core demographic skews older. Cowen looks for continued growth as Stoker’s ramps up distribution and as NewGen business becomes more CBD and less vapor focused. Outperform.
Greenlane Holdings Inc.: Flags JUUL “challenges,” which support shift in focus. Outperform.
Altria shares gained 0.2% pre-market Thursday.
<<<
Name | Symbol | % Assets |
---|---|---|
Amplify U.S. Alternative Harvest ETF | MJUS | 46.75% |
Tilray Brands Inc | TLRY | 8.02% |
Innovative Industrial Properties Inc | IIPR | 6.98% |
Cronos Group Inc | CRON.TO | 5.98% |
SNDL Inc Ordinary Shares | SNDL | 5.35% |
Canopy Growth Corp | WEED.TO | 3.61% |
Chicago Atlantic Real Estate Finance Inc | REFI | 3.50% |
AFC Gamma Inc Ordinary Shares | AFCG | 2.68% |
Aurora Cannabis Inc | ACB.TO | 2.51% |
High Tide Inc | HITI.V | 1.85% |
Name | Symbol | % Assets |
---|---|---|
AdvisorShares Pure US Cannabis ETF | MSOS | 43.99% |
High Tide Inc | HITI.V | 6.65% |
Cardiol Therapeutics Inc Class A | CRDL.TO | 5.81% |
Village Farms International Inc | VFF | 5.66% |
OrganiGram Holdings Inc | OGI.TO | 3.46% |
Chicago Atlantic Real Estate Finance Inc | REFI | 3.18% |
Ispire Technology Inc | ISPR | 2.99% |
SNDL Inc Ordinary Shares | SNDL | 2.98% |
Cronos Group Inc | CRON.TO | 2.97% |
Name | Symbol | % Assets |
---|---|---|
Invesco Shrt-Trm Inv Gov&Agcy Instl | AGPXX | 7.80% |
Curaleaf Holdings Inc | CURA.TO | 7.59% |
Tilray Brands Inc | TLRY | 6.54% |
Innovative Industrial Properties Inc | IIPR | 5.84% |
TerrAscend Corp | TSND.TO | 5.01% |
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