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cartonet, I am perfectly capable of doing my DD and making my own decisions. I am well aware of the share structure and what is out there.
Beware: Holders of the cheap 2c paper are mostly from USA, by having otc listing its easier for them to dump
yup right in there GLDFF will be trading usa side
So they are activating a listing on the otc in 8 days? I did notice they have filed some info.
Thanks for all the bashing Cheap shares on sale 8 days USA listed then watch the big buying come in
GLH in a death spiral. 2.2M cheap 2.5c and 20c shares free up next week for trading
Golden Leaf Holdings Ltd. Announces the Execution of Agreement Implementing Strategic Partnership in the State of Washington and Oregon Operations Update
By Marketwired .
Article Rating:
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January 21, 2016 04:44 PM EST
TORONTO, ONTARIO -- (Marketwired) -- 01/21/16 -- Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE:GLH) is pleased to announce the execution of an agreement in Washington State implementing a strategic partnership (the "Washington Agreement"). The Company would also like to provide an update for operations in the State of Oregon including progress in its streamlining plan to increase efficiencies.
Washington State: Strategic Partnership
The Company is pleased to announce the execution of the Washington Agreement and implementation of a strategic partnership with BMF Washington LLC, one of Washington's premier cannabis companies (the "Strategic Partner"). The Washington Agreement includes the acquisition of certain assets and the provision of certain goods and services to the Strategic Partner in furtherance of creating a strategic partnership. The Washington Agreement does not include any assets which require a license from the Washington Liquor and Cannabis Board to use or possess. The Strategic Partner will remain a cannabis licensee in Washington. The strategic partner produces, processes and distributes a range of cannabis oils and flower products in Washington. Under the strategic partnership, GLH and the Strategic Partner will undertake an integration of best practices, brands, and growth initiatives to further drive market share and profits in both the Washington and Oregon markets.
As consideration in connection with the Washington Agreement, the Strategic Partner will be paid a total of $15 million USD payable within 45 days of the transaction closing date together with the issuance of 300,000 warrants exercisable for a two-year period. Of the $15 million purchase price, $3 million USD is payable in cash and $12 million USD payable in GLH stock. GLH anticipates that this strategic relationship will be highly EBITDA accretive to its current operations upon completion of the integration.
Washington State has an established recreational marijuana market where oil and extracts products are already regulated and available for consumer purchase through licensed retailers. In connection with the Washington Agreement, the parties have begun implementing a strategic relationship and have entered into certain agreements whereby GLH will license propriety intellectual property to the Strategic Partner, provide the Strategic Partner with services and non-cannabis materials, lease equipment and other property, and also lease employees to the Strategic Partner.
"Washington, in addition to being double the size of Oregon, has a more settled regulatory environment. Through this strategic relationship, GLH has aligned itself with an established producer/processor with an experienced management team that currently enjoys a significant market share of what continues to be a very immature and fragmented oil and derivatives market," stated GLH CEO, Don Robinson.
Certain U.S. states, including the state of Washington imposes a residency requirement for licensed operators and their individual owners. As such, in the state of Washington the Company will focus on providing services to the industry rather than directly owning production or retail operations. In connection with the strategic partnership, the Company will not be directly involved in the production or retail operations of the Strategic Partner but rather will provide ancillary services to the Strategic Partner.
Washington Market:
According to a new study by BOTEC Analysis Corporation ("BOTEC"), Washington's State's total marijuana market is around $1.3 billion. BOTEC determined that the market looks as follows:
-- $480M medical (37 percent of market)
-- $460M state-licensed recreational stores (35 percent of market)
-- $390M illicit (28 percent of the market).
In December 2015 the state decided to get more licensed marijuana retailers up and running, and aim to increase the number of retail licenses from 222 to a total of 556.
Oregon Regulatory Environment and New Product Launch
The regulatory environment in Oregon is dynamic and constantly evolving. The Company anticipates continued material growth in the short-term year-over-year in the medicinal market and exponential growth will be realized once the recreational regulations are set and implemented, which is expected October 1, 2016. The Company expects sales to increase quarter over quarter.
With an expanding portfolio of branded cannabis products set to launch in the first half of 2016, GLH is well-positioned to continue maximizing short and long term growth potential for both the medicinal and recreational markets.
The Company will accelerate growth in the medicinal marijuana market with the launch of the following new products in the first half of 2016:
-- High THC, Solvent-Free Cannabis Oil Vaporizer Cartridges
-- High CBD C02 Hemp Oil Vaporizer Cartridges
-- Artisan Edibles by GoldenXTRX
-- Manufacturing and distribution of Dixie Elixir and Edibles product lines
Commencing in early 2016, the company is set to launch several new flower-based products focused on the recreational market which include:
-- XTRX Farms Marijuana Flower
-- XTRX Farms Pre-Rolled Marijuana Joints
-- Marijuana Cigarettes
Launching these products enables GLH to participate and capitalize on the growing recreational demand for marijuana flower and capture increased overall market share for cannabis in Oregon.
Robinson stated, "GLH remains very excited about the long-term opportunity in Oregon and is extremely well-positioned to take advantage of the recreational market. We are adjusting our business plan accordingly, ensuring we are in a position to maximize the short and long term growth potential in both the medicinal and recreational markets."
Operational Update: Oregon
GLH continues to identify efficiencies to reach break even faster by streamlining operations. The Company remains committed to its model of lowest cost production of highest quality products based on economies of scale and the Company's competitive advantage. Management expects general and administrative costs to decline by more than 25% from Q3 2015 to Q1 2016 as the company significantly reduces expenses, while revenue continues to increase.
"We have tremendous confidence that GLH represents the leading Cannabis model in North America. We believe that continued growth in Oregon, refinements in general and administrative costs, and our strategic relationship in Washington will help accelerate the economic realization," concluded Robinson.
About Golden Leaf Holdings:
Golden Leaf Holdings is one of the largest cannabis oil and solution providers in North America. It is a leading cannabis products company built around recognized brands providing medical users with a superior value and experience. GLH leverages a strong management team and advanced research techniques, including R&D with its Israeli subsidiary Green Point Science Ltd. to complement its expertise in growing, extracting, refining and selling cannabis oil. As an industry leader committed to transparency and controls, GLH is dedicated to partnering with industries, communities and regulators.
Disclaimer: This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the funding of the strategic partnership, the benefits of the strategic partnership, statements with respect to performance of the Company and the Strategic Partner, the payment of the consideration under the Washington Agreement, the Company's future business operation, expectations of gross sales, the opinions or beliefs of management, and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to general business, economic and competitive uncertainties, regulatory risks, market risks, risks inherent in manufacturing operations, risks relating to the performance of the Strategic Partner and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is provided herein for the purpose of presenting information about management's current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Golden Leaf Holdings Ltd.
John B. Aird
Investor Relations
416.725.6458
jaird@goldenleafholdings.com
Would like to see it trade on OTC at 1.30 USD ,Life would be sweet
So this is officially trading under the symbol GLHFF on the OTC
Thanks for the info Rockered
All revenue is in US dollars. With the low canadian dollar this will be great when they report income in Canadian $
USA listing
01/20/2016 15:21:20 01/20/2016 00:00:00 GLDFF Golden Leaf Hldgs Ltd Ordinary Shares (Canada)
http://otce.finra.org/DLAdditions
GLH presenting in New York - Wednesday Jan 13th
https://viridianca.com/cannabis-investor-series-new-york-ny/
get the popcorn out the show is set to begin
you should just sell your shares then
top class management here know exactly what there doing
is this the only stock you own how about the market crashing
I am worried this has turned into a P&D . All the excitement at the beginning of the listing on CSE then fades away . Promise of an OTC listing IMO will not change anything until there is a great quarterly report. Even if there is a great quarterly , that doesnt mean it will get back to 1.30s again.
My only hope is that it doesnt go back to .40 before fins.
I am ready when they are.
should be coming early Jan
Marijuana prices are about to rise sharply in Oregon http://extract.suntimes.com/news/10/153/11019/oregon-marijuana-sales-tax-holiday-over-25-percent-sales-tax-2016/ …
Thanks for the info.
Corporate activity
The company continues to look for accretive acquisition opportunities and commercial relationships.
Mr. Robinson added: "We have started due diligence on acquisitions in Washington State. The market for oil extract products in Washington is double the size of Oregon. Washington allows oil extract products and edibles to be sold recreationally."
The Dixie transaction announced earlier this month will give the company proven technology, expertise and Colorado's top edible brand to launch in the Oregon market. Independent research forecasts the total market in Oregon to be worth $600-million (U.S.) in sales per annum, including $450-million (U.S.) of recreational sales.
http://www.marketwired.com/press-release/golden-leaf-holdings-ltd-announces-corporate-update-cnsx-glh-2075047.htm
I am watching daily for the USA listing. What Washington deal are you speaking of?
Dixie announcement imminent products on shelves in Oregon 2016!
Medical cannabis has high POTential: a joint biotech & tools primer Merrill Lynch Report
http://cloud.chambermaster.com/userfiles/UserFiles/chambers/2058/File/MerrillLynchCannabisReport12.15.pdf
I have seen a lot of US companies do additional listings on AIM and see no benefits from it. I have seen very few Canadian stocks list in in the US (other than pink sheets) and not benefit.
I sure hope the USA listing makes a difference . I am part of another deal that was listed in the USA first and then also did a listing a few years later and it didnt make any difference at all. Maybe going from a Canadian exchange to USA will be different. Hope to see soon
just wait it out its all coming
Wow this is not doing what I thought it would. I know its a lousy time of year for the market ad all but daaaamnnnn
I still have not heard any news about USA listing?
Golden Leaf Holdings, no Smoke & Mirrors, Soaring Sales
? by Peter Epstein, CFA, MBA | ? posted in: Interviews, Oregon, Golden Leaf Holdings, Marijuana, Marijuana Related | ? 0
North America’s Marijuana Sector, Best Way to Play, Without Getting Smoked
In the past 18 months, Marijuana sector investors have been on a roller coaster. News regarding Canadian-domiciled weed companies from regulatory agencies & stock market exchanges has caused sentiment to swing wildly. Valuations of dozens of companies reached absurd levels, subsequently crashing. Weed extravaganzas morphed into weed wipe outs. This article is not about a high-risk Canadian pot play, but a made in America opportunity with something the majority of Canadian counterparts sorely lack…. revenues.
Canada was the de facto safe haven for Marijuana company investors. Never had the ~40,000 legal, card-carrying Canadian medical Marijuana patients been so popular! Dozens of public & private Canopy Growth Company-like business models are still clamoring for those patients. However, in the relaxed & healing State of Oregon alone, [Adult population ~ 4 million] there are thought to be 10x that number of legal (at the State level), consumers. That’s why I’m so excited about Golden Leaf Holdings (CSE:GLH). Golden Leaf has enjoyed soaring sales month after month since September 2014. [Excellent Corporate Video]
Golden Leaf is a leading Marijuana oil & solutions provider in North America built around recognized brands. The Company leverages advanced R&D from Israeli subsidiary, Green Point Science Ltd., to compliment its expertise in growing, extracting, refining & selling oils. The Company’s prowess facilitates low-cost production of high quality oils and, eventually, other Marijuana-related products emanating from the Company’s powerful Intellectual Property. Management believes the Company is already a top processor of oils & retailer in Oregon.
Screen Shot 2015-11-18 at 3.45.35 PM
Golden Leaf has a proven management team & Board. Not just with impressive prior experience, but proven by 15 months of rapidly increasing sales. Measured by revenues, Golden Leaf’s team is arguably one of the most experienced in North America. Execution to date need not be scrutinized, the Company has traversed the legal, logistical & compliance quagmire. Sales are soaring, reaching US$ 3 million in the third quarter alone, up 900%. Extrapolating historical growth, [and assuming 15% quarterly sales growth, my opinion only], would result in CY 2016e sales of ~ US$ 23 million. This figure gives zero credit for potential expansion in Oregon, or entry into Washington State. Nor does the 2016 estimate attribute any potential sales from its exclusive licensing agreement with Dixie Brands Inc.
[NOTE: Historical results are not indicative of future performance] Gross margins are strong, increasingly benefiting from (feed weed stock) grown internally for use in an expanding list of products. For evidence of the Company’s achievements and staying power, please visit its Brands Webpage. The production value and clean, professional articulation of Golden Leaf’s brands and mission statement reminds one more of Apple Inc. then peers more readily resembling something Spicoli of Fast Times at Ridgemont High might conjure up.
Legal Use of Marijuana products in the U.S. Will Continue to Grow at Tremendous Rate
The recreational use of Marijuana, legal in the U.S. States of Colorado, Oregon, Washington & Alaska, is serious business, best left for corporate interests to manage. Most pundits agree it’s a question of when, not if, recreational usage is adopted in a number of key States such as California & Nevada. Interestingly, adoption by individual States is proceeding largely the same way in which States legalized gambling. Only a few at first, now it’s legal in 23 States. Likewise, there are 23 States & the District of Columbia that allow medical Marijuana. There’s no reason to doubt recreational acceptance will grow.
Unlike the gambling sector, Marijuana supply is dominated by small, inefficient, private companies. Yet, the difference between these Moms & Pops and corporate interests have never been so stark. Any company is as good as its weakest link. Such is true in the emerging U.S. Marijuana sector. Weak links can be found everywhere {security, compliance, legal, accounting, bookkeeping, quality of facilities (to withstand crop disease), consistent application of proven, documented procedures, pricing & marketing, among others.
Screen Shot 2015-11-17 at 3.28.12 PMMost Moms & Pops are destined for failure, it’s a matter of time. If mismanagement, a failed crop and/or working capital deficits don’t sink them, lack of economies of scale will.
Moms & Pops are no match for larger, stronger, “category killers.” In Oregon, Golden Leaf is becoming a category killer. According to management, it’s already one of the top (growers / processors) and retailers in the State. If the Company can achieve staggering success in Oregon, why not Washington State and beyond? [Excellent Corporate Video]
GW Pharmaceuticals (GWPH) is among a few widely accepted, somewhat mature, Marijuana-related companies. It trades at an Enterprise Value, “EV” [market cap + debt – cash] to trailing 12 month, “TTM” Sales ratio of roughly 35 times, (35x). Applying a 35x multiple to Golden Leaf’s estimated (by me, not official or unofficial guidance from management) CY 2016e revenue of US$ 23 million, equates to a hypothetical valuation of US$ 800 million! Canopy Growth Corp. is trading at 28x. Golden Leaf can be compared to revenue generating peers on tangible metrics like sales & gross margins, as opposed to the number of leased square feet or weeks from medical Cannabis application approval.
Make no mistake, Golden Leaf Holdings (CSE:GLH) highly speculative. There are few legal precedents to go by and no leaders to emulate. However, the Company has benefited immensely from first mover advantage. It’s surprising that a few years into Marijuana Madness, there’s still first mover advantage to be had. That fact alone speaks volumes as to the ability of Moms & Pops to sustain themselves and the intensifying difficulty of managing the above mentioned factors.
Valuation, Separating the Wheat from the Chaff, the Weed from the Trim
When it comes to valuation, Golden Leaf is intriguing…. it can actually be compared to other revenue-generating players. This is fact, not opinion. I mentioned GW Pharmaceuticals, trading at roughly a 35x EV/TTM Sales ratio. That premium valuation is no doubt due to rapid top line growth. Golden Leaf has even stronger top line growth prospects, albeit from a smaller base. However, one need not compare Golden Leaf to GWPH, there are a number of useful comparisons, “comps” available for study. [NOTE: calculations, assumptions & opinions regarding valuation are entirely my own]
I screened a universe of 71 U.S.-listed Marijuana-related stocks based on TTM figures as of 9/30/15. 21 had TTM revenue equal to or greater than US$ 100k, I named those 21 the, “peer group.” The peer group’s average EV/TTM Sales ratio was 8.2x. Of the peer group, 11 have significant debt, ranging from 26.4% (debt / EV) to 93.3% (debt / EV), averaging 54.3%.
Golden Leaf has ~ 62 million shares outstanding. The Company’s EV, with zero debt and a stock price of C$0.94 on 12/8/15, was C$ 58 million. Since Golden Leaf’s sales are in US$, I converted the C$ EV to a US$ EV of US$ 43 million. That suggests Golden Leaf is trading at a 1.87x EV/2016e Sales multiple. (Note: CY sales of US$ 23 million assumes 15% quarterly growth)
Screen Shot 2015-12-09 at 10.18.38 AM
Golden Leaf’s Valuation — Safe to Inhale – Organic & Triple Tested!
Before delving more deeply, readers should consider the downside scenario for a company generating millions in sales, with zero debt and modest cash burn. Comparing Golden Leaf to pre-revenue peers, some with larger market caps and/or troublesome levels of debt, is insightful…. To ensure this valuation exercise is apples to apples, (all comps are based on estimated CY 2016e data). I assumed 100% average annual sales growth for the peer group. Assuming 100% sales growth, the peer group average EV/TTM Sales ratio would halve from 8.2x to 4.1x.
The pro forma 4.1x peer group multiple measures debt in the EV calculation, but does not consider the risk of having high debt leverage. Golden Leaf’s zero debt balance is arguably grounds for a premium multiple. All else equal, ignoring debt leverage, at a 4.1x EV/TTM Sales ratio, Golden Leaf’s stock would have a per share valuation of [4.1x * US$ 23 million = US$ 97 million in 2016e sales, divided by 62 million shares outstanding = roughly C$ 1.60/share] How aggressive is a pro forma 2016e EV/TTM Sales ratio of 4.1x? Consider industry stalwart Canopy Growth Company. If its sales were to quintuple next year, its 2016e EV/TTM Sales ratio would be about 7.0x **
** See Canopy’s 11/26/15 press release
The truly exciting part of this analysis is that the Company’s prospective valuation per share of C$1.60 is relative to a peer group that has weaker growth potential, lower gross margins and higher debt leverage. In addition, Golden Leaf has a leadership position where first mover advantage is of paramount importance. A possible takeaway is that Golden Leaf’s pro forma, 2016e EV/TTM Sales ratio of 4.1x, could warrant a premium valuation. A 25% premium to the 4.1x multiple equates to a multiple of 5.1x, which would be C$ 1.90/share, double the current price of C$ 0.94. A 50% premium would equate to a share price of C$ 2.30. Make no mistake, this valuation analysis is highly speculative, but since it is a comparison to peers, it’s not unreasonable.
At C$ 0.94 & C$ 2.85, Golden Leaf’s market cap was C$ 58 million, and Canopy Growth’s, C$ 286 million, respectively. Should Golden Leaf be trading at a 80% discount valuation to Canopy? If Golden Leaf’s valuation were to double to C$ 116 million, it would still be trading at a 60% discount, a triple C$174 million, a 40% discount. It appears as if Golden Leaf’s stock price has ample room to run before the Company’s valuation catches up with select Canadian and U.S. peers.
Disclosure:
I, Peter Epstein CFA, MBA, have no prior or existing relationship with Golden Leaf Holdings or its predecessor(s). I have no prior or existing relationship with anyone on the management team or Board of Directors.
California tech billionaire's marijuana legalization measure wins key support
http://news.yahoo.com/california-tech-billionaires-marijuana-legalization-measure-wins-key-005642215.html?nf=1
Investmentpitch, lmao
Not disappointed, it was just what I expected...
Sorry if you were disappointed by the Q. A company can not grow without spending $. I thought they did quite well.
It is so because earnings sucked big time and this had high flying expectations built in.
This didnt move an Iota on the news from the throne speech. Stocks like Canopy Growth and Aphria Inc did. When the Liberals were voted in they all went up including GLH. I am surprised it didnt do something.
GLH is only going up from here I know it may be hard to realize but just accept it.
Dixie chose GLH.
If you are referring to the list on post #50 those were not even warrants. Those were issued shares and would have nothing to do with any three year limit and they immediately went into the float.
Valid for three years, does not mean they can not redeem for three years. It means can not be redeemed after three years. I have read the filings.
yup a botload of cheap paper and yes it´s all valued on hype. +100M fully diluted mkt cap on Venture without a profit..... Good luck with that!!!
The golden leaf shares issued at .20 cents were issued in 2014 and are valid for 3 years into 2017. More to come. Just read the filing.
Well good for you. I read it too and I am quite impressed. As for your other points, lets take them one by one.
Well first of all no company can control foreign exchange rates. That is not a discount. A discount is like the other company we both know about that sold shares in a private placement at 1/3 their market value.
All of those .20 Golden Leaf shares were sold before they even listed on an exchange. That is very old news and the shares have probably already been recycled at higher prices.
The list you are looking at in post #50 on this board shows no shares issued under $1.00 since Nov. 28, 2014
Just read the last quarterly. I'll post more later but considering there is a 25% difference between Canadian Dollar and US dollar some notes issued have a guaranteed discount and some of the notes have a convertible price of .20 cents and .50 cents issued this year. There are a lot of convertible shares in the ether.
More to come. I'll post something a little more comprehensive this weekend but I would encourage everyone to read the report on sedar.com.
The 2013 MJ bubble saw a ton of this type of "business" preying on hype.
This sector is full of surprises!
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