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Verano Q2 Revenue Increases 11% Sequentially to $223.7 Million
Published by NCV Newswire
Verano Announces Second Quarter 2022 Financial Results
CHICAGO, Aug. 16, 2022 (GLOBE NEWSWIRE) — Verano Holdings Corp.
2022 Second Quarter Financial Highlights
Q2 2022 revenue increased 12% to $224 million compared to the second quarter 2021.
Q2 2022 gross profit was $98 million or 44% of revenue, compared to $69 million or 35% of revenue in the second quarter 2021.
Q2 2022 SG&A was $100 million or 45% of revenue, compared to $70 million or 35% of revenue in the second quarter 2021.
Q2 2022 net loss was $(10) million, compared to a loss of $(30) million in the second quarter 2021.
Q2 2022 EBITDA on an unadjusted basis was $48 million or 22% of revenue, and Adjusted EBITDA1 was $76 million or 34% of revenue.
Cash flow from operations for the six months ended June 30, 2022 was $44 million.
2022 Second Quarter Operational Highlights
On April 21, 2022, Verano welcomed New Jersey Governor Phil Murphy at Zen Leaf Elizabeth to celebrate the commencement of adult use sales in the state, and also launched adult use sales at the Company’s Zen Leaf Lawrence Township dispensary.
Exceeded 100-dispensary milestone by expanding the Company’s retail footprint with new store openings that include:
five new MÜV dispensaries located in Marco Island, Hobe Sound, Fort Myers Beach, Ocala, and Winter Haven, FL.
two new Zen Leaf locations in Westover, WV and Wynnewood, PA.
Announced exclusive partnership with The Weldon Project’s Mission Green to advance cannabis clemency and advocacy initiatives.
Relocated Zen Leaf dispensaries in Canton, OH and Phoenix, AZ to optimize store locations and amenities.
Launched mobile applications and exclusive rewards programs for Verano’s flagship Zen Leaf and MÜV dispensaries.
Surpassed 50-dispensary retail footprint milestone for MÜV in Florida, bringing the total state footprint to 55.
Opened new Zen Leaf dispensary in Wheeling, WV; relocated Zen Leaf Jessup to Elkridge in Maryland to optimized location and retail space; maximized New Jersey footprint with the commencement of adult use sales at Zen Leaf Neptune on the Jersey Shore.
Launched Verano signature flower branded products in four new core markets – Arizona, Florida, Massachusetts and Pennsylvania; Verano signature flower branded products are now distributed to more than 500 dispensaries across nine states, including more than 100 of the Company’s retail locations.
Announced the upcoming launch of Savvy in September 2022, a new brand featuring larger-format cannabis products that caters to more value-oriented patients and consumers, across seven core markets.
Active operations span 13 states, comprised of 109 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity.
Here is Verano’s store in NJ. People literally lined up into the woods. $VRNOF. Thanks Jeff Hoffman with Marathon Partners for the videos! pic.twitter.com/xwpKwVjgin
— Aaron Edelheit (@aaronvalue) April 21, 2022
Verano Holdings (VRNO.C) opened its 42nd and 43rd MUV dispensaries in one of the fastest building counties in Florida this week.
Weed is such a bust nowadays that any kind of advantage a company can get is likely to be worthy of celebration, and getting brick and mortar stores open in an area that’s experienced some rapid growth may spell an increased client base for folks in Florida. Verano’s options can’t exactly be hurt by it.
The two new dispensaries are in Hillborough County, which is an area that’s seen some population development, including more than 200,000 new residents in the past ten years. The county now boasts over 1.4 million people, or six percent of the state’s total population.
“Hillsborough County has been home to MUV dispensaries since 2017, and over the last five years, we have witnessed Tampa and its surrounding communities exponentially grow, thrive and expand. We have listened to our patients and learned the lengths to which some travel to obtain their needed alternative medicine. With the opening of MUV Brandon and MUV New Tampa, we will be well positioned to provide the highest quality medical cannabis to the furthest reaches of the fourth largest county in the state,” said John Tipton, president of Verano.
If you’re unfamiliar, Verano is a vertically integrated United States multistate operator in the cannabis space. They produce premium cannabis products sold under a number of consumer brands including Verano(TM), Avexia(TM), Encore(TM), and MUV(TM). They’re spread out over 15 states, with active operations in 13 adn 12 production facilities with 1,000,000 square feet of cultivation space.
They’re getting their products out there on the net to give potential customers an online look at what they’re offering with hopes to drawing in actual people to their stores. They offer free one-on-one virtual and in-store consultations with a product selection that includes edibles, chocolates, lozenges, flower, pre-rolls and vape pens, concentrates metered-dose inhalers, topical sand oral sprays. There’s also encapsulation formations like their EnCaps capsules, tinctures, 72-hour transdermal patches and gels.
Cannabis Stocks Are Beaten Down: Verano Is The Best Cannabis Stock To Buy Now
Feb. 05, 2022 9:36 AMCNBS, CRLBF, CURLF
Summary
Cannabis stocks have fallen more than 50% despite generating triple-digit growth over the past year.
Cannabis, once associated with the likes of heroin and cocaine, is now being sought for its medical benefits and abilities to generate taxes and new jobs.
I discuss the ways to invest in the cannabis sector, including an overview of the top operators.
I reveal my top pick in the sector, one with the best limited license footprint.
Addiction to Marijuana
bestdesigns/iStock via Getty Images
Amidst a deflation in tech valuations, you might have missed the beat down that has taken place in the cannabis sector. Many cannabis stocks were trading at reasonable valuations at recent highs and have reported significant fundamental growth, but have nonetheless seen their stock prices drop more than 50%. The poor stock price performances are primarily due to the inability of institutional capital to invest in the sector, something not in their control. Individual investors are not restricted by such mandates and can take advantage of this prolonged buying opportunity. I discuss a couple of the top operators and reveal my favorite name.
Cannabis Stocks Have Crashed
Since the highs reached in 2021, the stocks of US cannabis operators have fallen more than 50%.
Many of these names were trading at reasonable valuations relative to their growth rates prior to the drop. Between then and now, these companies have reported triple-digit growth, such that the stock price declines have led to a complete reset in valuation multiples.
All of the above operators are expected to sustain strong growth over the coming years as more states legalize cannabis for recreational sales. These names trade at between 5x to 9x 2023e EBITDA, surprisingly cheap multiples for stocks that should be garnering tech-like valuations.
The Cannabis Investment Thesis
Support for cannabis legalization has become a bipartisan issue with nearly 70%.
I view legalization as being inevitable. There are three main reasons for that. First, the War on Drugs has disproportionately affected minorities, including Black Americans.
The War on Drugs
Green Thumb Investor Presentation
Second, even though cannabis is illegal on the federal side, the illicit market remains strong and thriving nationwide. This has meant that legalizing cannabis on a state-by-state basis has led to substantial tax revenue and job creation.
cannabis taxes and jobs
Green Thumb Investor Presentation
Finally, cannabis itself is not the dangerous drug that it has been made out to be. When the average person thinks of cannabis, they might associate it with the likes of cocaine and heroin (actually, cannabis is considered to be more dangerous than cocaine by the federal government). In reality, cannabis is arguably safer than alcohol and opioids. Alcohol use has led to nearly 100,000 deaths annually and opioid deaths totaled over 75,000 annually. In contrast, there are no documented cases of deaths from cannabis overdose. Furthering the contradiction, cannabis has been discovered to have numerous medical benefits, addressing issues ranging from chronic pain, anxiety, insomnia, and sexual wellness. The growth of cannabis is like the growth of e-commerce or the growth of video streaming. It's inevitable.
Now let's discuss the investment thesis. While the US federal government has deemed cannabis to be an illegal substance, many states have already legalized the plant for medical or recreational uses. US cannabis companies have seen substantial growth from ongoing legalization efforts. Some companies have focused on states which use a "limited license model" because of the higher profit margins achievable from the exclusivity. The growth is substantial because, as discussed previously, illicit markets exist even without legal markets. Cannabis companies are able to generate strong growth just by taking market share from the illicit market. We can see below that even in states which have legalized cannabis for recreational use, the illicit market still remains very strong.
illicit vs legal markets
Curaleaf Investor Presentation
The strong illicit market suggests low hanging fruit for ongoing growth. Over time, cannabis is estimated to be a $100 billion industry, rivaling the beer and tobacco markets.
cannabis addressable market
Green Thumb Investor Presentation
The longer-term opportunity is even greater. About 20% or less of adults use cannabis regularly. In contrast, nearly 70% of adults regularly consume alcohol. Considering that cannabis is safer than alcohol and has far ranging medical uses, I expect cannabis use to become more "normalized" as the plant becomes more generally accepted. Cannabis has been illegal for a long time - so long that it has gained a negative stigma. The times are changing, and the growth of cannabis can not be stopped.
The Top Cannabis Operators
I now discuss some of the top operators in the sector. Before I do so, I first point out that there are various exchange traded funds carrying cannabis stocks, including MSOS, CNBS, YOLO, and MJUS. These ETFs vary in sector and country concentration and own the US operators only through total return swaps. The last point is due to the fact that US cannabis stocks are not allowed to trade on major exchanges and thus only trade over the counter ('OTC') - this is because of the federal illegality of cannabis. Many brokerage firms like JPMorgan Chase currently heavily discourage investors to invest in these names. That said, many do allow investing in these names. I have found that the stocks trade with slightly less liquidity than typical stocks, but the experience is otherwise no different.
Let's now discuss some of the top operators in the sector. I quickly note that Canopy Growth (CGC) and Tilray (TLRY), two popular Canadian names in the sector, are not in this list as the most attractive opportunity is in the United States.
Green Thumb Industries (OTCQX:GTBIF) is often considered the top operator in the sector. This is because the company has pursued a wide footprint with a careful eye on profitability.
GTBIF footprint
Green Thumb Investor Presentation
GTBIF is arguably the most strategic operator and is often located in attractive markets long before recreational sales are legalized. With such a long track record of such success, there is clearly more than luck at play here.
Cresco Labs (OTCQX:CRLBF) is another Tier 1 operator with a wide footprint.
CRBLF footprint
Cresco Labs Investor Presentation
Unlike others on this list, CRLBF has intentionally focused on its wholesale business, which makes up more than 50% of total revenues. CRLBF believes that wholesale margins will prove to be the most resilient over time.
wholesale margins
Cresco Labs Investor Presentation
Curaleaf (OTCPK:CURLF) historically has been the biggest operator in the sector. CURLF is the only operator with a coast-to-coast footprint.
CURLF footprint
Curaleaf Investor Presentation
CURLF management had the conviction to aggressively acquire assets long before valuations have steadily risen. CURLF has recently been the first multi-state operator ('MSO') to enter Europe with its acquisition of EMMAC.
EMMAC Acquisition
Curaleaf Investor Presentation
Trulieve (OTCQX:TCNNF) is the last of the original "Big 4" operators.
TCNNF footprint
Trulieve Investor Presentation
The company is best known for its dominance in Florida, where it owns around 50% of the market. I note that the company has since increased its store count to 111 dispensaries in the state.
Florida footprint
Trulieve Investor Presentation
TCNNF has historically been known as the most profitable company in the sector.
sector profit margins
Cannabis Growth Portfolio
Profitability is important to discuss because US cannabis companies face unusual challenges stemming from the illegality of cannabis. US cannabis companies lack equal access to banking, which means that they often pay 10+% interest rates on debt in spite of strong fundamentals. They also are restricted from deducting operating expenses (like rent, interest expenses, corporate expenses) from taxable income, meaning that they pay excessively high tax rates (known as '280e taxes'), sometimes paying taxes even with negative operating income. TCNNF has nonetheless been able to generate significant GAAP net income, totaling $18.6 million as of the latest quarter (the company has a $4 billion market cap). When cannabis is decriminalized, net income will jump across the sector due to resolution of the above factors. For reference, TCNNF might see quarterly net income jump 160% to $50 million just from normalizing tax rates and interest rates alone.
The Best Cannabis Stock To Buy Now
My top pick of 2022 is Verano (OTCQX:VRNOF). VRNOF has a wide footprint which was made larger after its recently announced acquisition of Goodness Growth (OTCQX:GDNSF).
VRNOF footprint
Verano Investor Presentation
The acquisition of GDNSF gave it 1 of 2 licenses in Minnesota, but the key gem was its license in New York. New York is estimated to be a near $3 billion market by 2026.
New York market
Goodness Growth Investor Presentation
Besides New York, VRNOF has strategically positioned itself in all of the important limited license states. Recall that the limited-license model has allowed for higher profit margins due to the inherent cap on competition. VRNOF's core markets are in Illinois and Florida. The main near-term growth driver for VRNOF is the state of New Jersey, which is anticipated to come online for recreational sales sometime in 2022.
Verano state markets
Verano Investor Presentation
In comparison with peers, VRNOF has best in class margins due to its focus on premium products and its lean cost structure.
Verano profit margins
Verano Investor Presentation
VRNOF trades at around 2.5x 2023e sales and 6x 2023e EBITDA. The stock trades at a notable discount to GTBIF and CURLF, but arguably should trade at a premium due to its positioning in the most attractive limited license states. I can see VRNOF trading up at least 100% over the next year, but that would still place it at highly attractive multiples of 5x 2023e sales and 12x 2023e EBITDA.
Risks
The main risk regarding cannabis stocks is that of uncertainty. There's great uncertainty as to when legislative reform will take place (though I discuss why it may not matter in the conclusion). There's also uncertainty as to how interstate commerce (allowing sale of cannabis across state lines) will affect the profitability of limited license states. There's the view that passage of interstate commerce might cause prices to fall across the country, as cannabis can be grown at much lower prices in regions like California. My personal view is that interstate commerce will not occur for a very long time as I do not anticipate such broad federal reform coming ahead of reform at the state level. It seems unlikely that the federal government will be able to disrupt as many as 50 different local cannabis economies and systems, as such a reform stands to benefit very few and thus is unlikely to be a popular issue among either voters or politicians. The most relevant risk is the constraints that 280e taxes and high costs of capital have placed on US companies' cash flows. It's very difficult for these companies to generate positive cash flows - though not impossible as we have seen in the case of TCNNF and VRNOF above. I'm not worried about this risk because the top operators have prudently raised sufficient cash to their balance sheets, have demonstrated improved access to debt capital as compared to past years, and have in general made significant progress toward optimizing cash flows in spite of the difficult regulatory environment.
Bottom Line
Cannabis stocks have been beaten down over the past year as investors became pessimistic for the prospects of near-term legalization. The irony is that the top operators have been able to grow rapidly without legalization, or perhaps, due to the lack of legalization. The presence of 280e taxes and limited access to banking has made it difficult for smaller operators to compete with the larger operators. The top operators benefit from delayed legalization because they get more time to build dominant market positions in the meantime. Legalization is inevitable, but any delays may lead to greater value creation over the long term. I have discussed the top operators with VRNOF being my top pick to take advantage of this promising growth sector.
FYI:
Bearing that in mind, there are plenty of options for those willing to shoulder the risk. We used TipRanks’ database to take a closer look at three cannabis stocks backed by Wall Street analysts. Not only all of the names have received enough support to earn a “Strong Buy” consensus rating, but each also boasts some brag-worthy upside potential. Here are the details.
Verano Holdings (VRNOF)
First up on the list is Verano Holdings, a $1.69 billion company based in Chicago. The company is a major producer in the US cannabis market. The company has 11 cultivation and production facilities, providing cannabis products for 87 operating retail locations. Verano sells its cannabis products subject to state regulations under four brand names. Its production facilities boast over 830,000 square feet of growing space.
Verano has been working steadily to expand its footprint, and in October and November it opened two new dispensaries – featuring its Zen Leaf brand – in St. Charles, Illinois and in Las Vegas, Nevada. In addition, the company announced on November 10 that it will be entering the Connecticut cannabis market.
The company will report 3Q21 earnings on November 16, but a look back at Q2 can give us a sense of where Verano stands. Revenues reached $199 million in that quarter, up 39% sequentially and a whopping 164% year-over-year. The quarter was a company record. After the second quarter ended, the company announced an upsize to its existing credit facility, boosting the total available to $250 million. The interest rate is 8.5%, and the agreement includes an additional $100 million on option. The upsized credit is a major increase in Verano’s available liquidity.
Analyst Scott Fortune, from Roth Capital, sees Verano as a compelling buy, especially after the stock’s share price has fallen over the past several months.
“We believe VRNO is overdue for a significant rerating after the share lockup overhang and improved share liquidity similar to the top MSOs... With shares trading [~46%] off its 52-week high, VRNO presents a compelling valuation opportunity at these levels and remains our favorite MSO name with the largest potential appreciation upside from strong fundamentals and ahead of potential incremental federal legislation,” Fortune noted.
To this the Roth Capital analyst gives the stock a Buy rating, and his $32 price target implies a one-year upside of ~131%. (To watch Fortune’s track record, click here)
Overall, Verano’s Strong Buy consensus rating reflects a unanimous approval from Wall Street, with recent 4 positive reviews. The shares are priced at $13.86 and the $32.10 average price target matches Roth Capital's. (See Verano stock analysis on TipRanks)
Verano Opens New Zen Leaf™ Dispensary with Drive-Through on Vibrant Flamingo Road in Las Vegas
10/28/2021 | 07:30am
Zen Leaf Flamingo is Verano’s third dispensary in Las Vegas and its 87th1 nationwide.
The new storefront sits just two miles west of Las Vegas Boulevard, the primary draw for over 40 million visitors2 in pre-pandemic 2019 and features a drive-through for recreational consumers seeking on-the-go convenience.
Zen Leaf Flamingo is located on the high-traffic retail corridor of Flamingo Road, which saw average daily traffic3 of 35,000 in 2020, and 51,000 in pre-pandemic 2019.
CHICAGO, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Flamingo, a new adult-use dispensary located at 5940 West Flamingo Road in Las Vegas, Nevada. The grand opening event is set to begin on Friday, October 29, at 7:00 AM local time.
Zen Leaf Flamingo is located in Spring Valley, a Las Vegas suburb just west of The Strip. The area boasts award-winning eateries in a more accessible setting, just two miles from Las Vegas Boulevard.
“Convenience is always a priority for us at retail, particularly in a high-volume destination like Las Vegas,” said George Archos, Verano Founder and Chief Executive Officer. “Our team’s ability to maintain customer intimacy while providing an efficient, consumer-friendly experience is one of the things that sets Zen Leaf apart. The drive-through platform on Flamingo Road offers distinct benefits to both visiting shoppers and Las Vegas residents.”
Nevada has seen continued growth in the form of record cannabis sales this year, despite the protracted pandemic environment. According to the Nevada Department of Taxation, adult-use cannabis sales have surpassed $1 billion, already up $330 million from 2020’s previous record in sales.
What in the Wild Wild World of Sports is a Goin' on with U.S Cannabis?
The growing pains for the Great American Growth Engine continue
Todd Harrison
5 hr ago
It’s been a nutty year for cannabis stocks…
…as pandemic-related fiscal and monetary policies helped fuel superior returns across asset classes of all shapes and sizes. Crypto is going nuts; real estate is off the charts; heck, even trading cards have caught a bid. And stocks? Yep, quite the equity orgy…
…except for that red mess at the bottom of the chart, which also happens to be the one sector that I’ve bet the entirety of my future financial fate on.
But why? That’s the burning question racing through so many of our minds almost nine months after U.S Cannabis ETF $MSOS ticked north of double-nickels.
A few months ago, we asked, Is U.S cannabis a Value-Trap and we tried to poke holes in our base call bull thesis. We talked about interstate commerce, the FDA, Big Canna and over-taxation while noting how things could get bumpy given the space had lost it’s technical metric. And so they did, get bumpy I’m sayin’. So, now what?
It’s odd, to say the least, that the fastest growing industry and jobs creator in America isn’t participating in the Everything Rally, especially given the mind-blowing growth @ value multiples that we’ve so-often detailed in this space.
Some blame the banks for shutting down custody / clearing operations for cannabis-related securities. Others blame politicians, whether it’s the President for turning his back on campaign promises, or those in Congress for all of their political posturing that’s thus-far yielded zero progress. Still others blame the algos for their constant feasting on low-liquidity / retail-rich prey, or the pervasive / abusive naked-shorting.
The truth is, it doesn’t really matter; it was likely a combination of all of those things, with the added weight of any number of culprits: a relative slowdown / normalization in 2H21 growth post-COVID-induced pantry stuffing; the still-sticky illicit market; slower-than-expected state roll-outs (NJ, NY); tax-selling (to offset other capital gains); and, of course, the growing sense that cannabis legislation is dead at the federal level and that, and that alone, will dictate the fate of the U.S cannabis sector.
[SAFE Banking is in the current House version of the NDAA with the Senate expected to pick it up the first week of November. While those in the know have made educated / lucid arguments as to why this won’t make it through the Senate, there are some who believe the GOP will engage in political calculous / support the measure / attempt to force Schumer to publicly remove it, which would be thorny for obvious reasons]
[^ I’m 50/50 on SAFE via NDAA by year-end but my optimism is an outlier and unless capital market protections are added along the way, the current / boilerplate language would simply trigger FINCen / AML guidance to update, which would be a second-derivative / incremental positive step toward the eventual U.S up-listing.]
I will also / again note most U.S cannabis stocks had MASSIVE runs from March 2020 lows to February 2021 —TerrAscend ($TRSSF) +1250%, Green Thumb (GTBIF) +885%, Trulieve ($TCNNF) +830% to name a few—and a cyclical bear market within a multi-year secular bull market is not only normal and natural but also quite healthy. Like a forest fire, it’s scary, dangerous and ultimately necessary for a fertile rebirthing.
[TerrAscend lost 66% since Feb but is still +355% vs. March 2020; Green Thumb, -40% since Feb, is still up 530% since March 2020; Trulieve, -50% / +376%. Timing is everything, as we know, but this is more about looking forward than looking back]
It’s not like the thesis has changed. The state-led fundamental story remains strong to quite strong, even if every / this quarter won’t blow out expectations bc growth will be lumpy as the industry lurches forward and regulators / agencies try to feel their way through the new frontier. But the opportunity is real; I mean, even Cantor sees it…
…and credit conditions continues to trend better, as evidenced by Verano’s scoop of $250M non-dilutive paper last week @ 8.5% (+$100M in their back pocket). And yes, 8.5% is a ridiculously high cost of capital in the real world, which speaks to the broader rerating that awaits the space when the playing field eventually evens.
I mean, even the IRS is lobbying for SAFE Banking…
…joining a growing list of signs of normalization seemingly surrounding society.
But don’t tell that to investors, who are sullen and salty after not only losing money in cannabis stocks but also the opportunity cost associated with being in cannabis stocks rather than idk, anything else. Ask me how I know?
Meanwhile, some of the smartest investors I know are planting their US canna flag…
…anyone who’s been around the block a few times knows how multi-baggers work…
…and, as the rest of the world inflates and tech valuations fly sky high…
…U.S cannabis is trading back at levels last seen last November. I won’t say there isn’t risk—US canna is down 23% YTD despite the rising tide; what happens when the tide recedes?—but I will say that in my 31 years of watching tapes and surfing cycles, I’ve never seen more compelling, asymmetric opportunities than we’re seeing now.
[most investors can’t play the U.S space given the litany of custody restrictions and those who can, let’s be honest, why would they venture into the pink-sheets / CSE when they can’t buy Tesla, Bitcoin or Amazon? The buyers are higher, this much I know, and when they finally come for these names, they’re gonna come big]
And one more thing, my grandfather Ruby taught me that all a man has is his name and his word and I’ve spent my life honoring his legacy / staying true to his lessons.
So when peeps on Twitter call me a paid pumper…
…I’m super aware that my name / word are draped all over this company, which is why I’m more than happy to share the who, what, how and when behind the why we built Verano into a top holding. I didn’t have to write / share any of it either but did so for a few reasons, one of which is that I’m pretty sure George and his team will reflect well.
If you believe that an efficient market will eventually reprice U.S cannabis, I’m not sure there’s a better single-stock vehicle than a US canna FAANG that is 1/2-off vs. a peer-group that is already trading 80% below the S&P growth multiple. Do the math in your head if you like, I know I do almost every day.
Just do me a favor: remind yourself this is a movie, not a snapshot. I don’t wanna be judged on this observation tomorrow or next week bc tbh idk on the timing. But I do believe Verano will eventually trade par and when it does, we’ll think back to the last few months of 2021 when any one of us could pick up the shares for ~$11 each.
At that point, let’s remember how we felt right now; our mood, our mindset…
…and let’s take a moment now to remind ourselves that the purpose of the journey is the journey itself, and we should be good to others and better to ourselves.
May peace be with you.
/position in stocks mentioned
/advisor $MSOS, $VRNOF
AFC Gamma Funds $50 Million as Part of a New $120 Million Tranche of Verano Holdings Corp. Credit Facility
10/20/2021 | 08:44am
WEST PALM BEACH, Fla., Oct. 20, 2021 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced it has funded $50 million of a $120 million credit facility tranche to Verano Holdings Corp. (CSE:VRNO) (OTCQX:VRNOF) (“Verano”), a leading multi-state operator with active operations in 11 states, including 11 production facilities. The credit facility has been increased by a $120 million tranche and is designed to provide Verano with additional capital to execute on its growth plan.
“We believe that Verano is one of the top multi-state Cannabis operators, continually proving its industry leadership through strong execution and meaningful growth, both organically and through strategic acquisitions. Driven by its strong brand recognition, real estate ownership, business execution and experienced management, we believe that Verano is a top-tier credit,” said Leonard M. Tannenbaum, AFC Gamma’s Chief Executive Officer. “We are proud to partner with Verano to catalyze their next phase of growth.”
“We are pleased to expand our relationship with AFC Gamma as a cornerstone lender. We believe our improved cost of capital and ability to attract high-caliber institutional lenders like AFC Gamma is a testament to Verano’s continued growth, performance and position in the marketplace,” said George Archos, Verano Founder and CEO. He added, “We appreciate AFC Gamma’s partnership as we continue to expand and enhance our business.”
With its commitment of an additional $50 million under the new credit facility tranche, AFC Gamma now holds a total of $60 million of Verano’s credit facility.
SAN FRANCISCO, Oct. 19, 2021 /PRNewswire/ -- StandardC, Inc., a leading FinTech focused on Marijuana Related Business (MRB) banking compliance, announced that its growing network now has the capacity to serve over 1,500 CRBs and accept deposits of over $1.3 billion.
Despite delays by the United States Congress to pass cannabis banking reforms and broader legislation for marijuana legalization, most notably the SAFE Banking Act and the Cannabis Administration and Opportunity Act, numerous banks and credit unions are stepping in.
Robert Mann, CEO of StandardC, commented, "While Congress deliberates, our network of federally insured financial institutions are taking action to solve the problems faced by the cannabis industry. They deserve access to banking, and they no longer have to wait for the government to act."
While cannabis (aka marijuana) remains restricted under the Controlled Substances Act (CSA), The Financial Crimes Enforcement Network (FinCEN), who enforces the Bank Secrecy Act (BSA) and its Anti-Money Laundering (AML) requirements, issued guidance (FIN-2014-G001) in 2014 that "…clarifies how financial institutions can provide services to marijuana-related businesses consistent with their BSA obligations."
Robert Baron, the Chief Experience Officer of StandardC, and a leading cannabis banking expert and Certified Anti-Money Laundering Specialist (CAMS, CAMS-RM), noted that this guidance provides a framework that is utilized by StandardC and its member banks and credit unions to solve the lack of access to banking. Mr. Baron noted that "While the largest banks sit out on the sidelines, we are solving the banking crisis by deploying proven technology and expertise to enable bankers to meet the needs of the cannabis industry."
About StandardC
StandardC enables, facilitates, and supports banking, lending, payments, insurance, payroll, and armored transport in a compliant cannabis ecosystem and simplifies cannabis-related business development, initial and ongoing due diligence, transaction, and Customer Relation Management (CRM) for enterprise and the entire cannabis ecosystem.
FYI:
Verano Holdings Has Closed 10 Cannabis Acquisitions This Year and Is Looking for More
Exclusive article by Carrie Pallardy
Exclusive Interview with Verano Holdings Co-Founder, Chairman and CEO George Archos
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) Co-Founder, Chairman and CEO George Archos last spoke with New Cannabis Ventures in March, shortly after the company’s public debut. The company went public to more easily pursue M&A, and Verano has been on an acquisitive streak. Archos shared an inside look at the company’s acquisitions, organic growth and funding. The audio of the entire conversation is available at the end of this written summary.
New Talent and Promoting from Within
The company’s flurry of M&A activity means that it has brought new talent onboard. With the closing of deals, Verano has added people to its marketing and operations teams. The company has also internal talent take on bigger roles. For example, Aaron Miles stepped into the Chief Investment Officer position, with Julianna Paterra taking charge of investor relations.
Verano Team Members at a New Jersey Dispensary
Integrating Assets in Pennsylvania
Verano has pursued acquisitions in Pennsylvania and, now, it is integrating its assets in the state. The company has 12 stores open and another six expected to be open by this time next year, according to Archos. The company closed on a facility for cultivation and processing, and in anticipation of adult use in the state, it is about to begin construction on a second cultivation site in Pennsylvania. Archos is bullish on the company’s position in Pennsylvania and sees parallels between that state and Verano’s home state of Illinois. Both markets have large populations and strong medical programs; Illinois has launched adult use and that is on the horizon for Pennsylvania.
The Interior of One of Verano’s Illinois Dispensaries
The Sierra Well Deal in Nevada
Nevada is a legacy market for Verano. It has two stores open and a third flagship store opening within the next month. The company is also expanding its cultivation operations in the state. Verano wanted to add more retail to its footprint here, and the pending Sierra Well deal will deliver. The acquisition, expected to close at the end of the year, adds dispensaries in two new cities for Verano: Reno and Carson City. In addition to these two dispensaries, the deal comes with a 10,000-square-foot cultivation and production facility.
Nevada is a mature market and the company is comfortable with its position there, according to Archos. Verano has additional space to expand at its facility if needed and a strong retail footprint with the Sierra Well deal. But, it may pursue additional activity in the state in the future, according to Archos.
Continued M&A
The Verano team takes an open approach to considering M&A, looking at all of the deals that come across their desks. When it comes to selecting the deals to pursue, the company aims to find like-minded entrepreneurs who have built strong businesses that are ready to bolt onto the Verano platform. When the team does find a deal that makes sense, they move quickly, according to Archos. The company has closed 10 of 11 deals announced this year, with the Sierra Well deal expected to close shortly, according to Archos.
Organic Opportunities
While M&A is helping to fuel Verano’s growth, the company also has organic growth opportunities. New Jersey is expected to launch adult-use soon, and Archos pointed to the possibility of adult-use transitions in Florida, Ohio and Maryland sometime in the next 24 months. Additionally, the company has cultivation operations coming online in Massachusetts soon, which will give it vertical operations in the state.
While federal legalization is anticipated at some point in the future, it is not a focus for Verano. Right now, the company’s team is focused on state-by-state operations.
Going Public and Funding Position
Verano went public in February, later than many of its peers in the cannabis industry. That move had both disadvantages and advantages, according to Archos. One on hand, Verano does not have as much market visibility. As a new entrant into the public market, many investors do not realize that Verano started in 2014, around the same time as many of its public peers. The team is working to demonstrate the company’s growth and help investors get to know the company.
On the upside, waiting to make its public debut has helped Verano to avoid some of the mistakes made by earlier entrants to the public markets, according to Archos. Plus, going public has helped the company to pursue M&A.
The company borrowed $100 million in May. Currently, Verano owns the majority of its real estate, and it is a cash flow-positive company. The company funds its CapEx with internal cash flow. If it needs additional capital, it is in the position to go to the debt markets to access fairly low-cost capital, according to Archos. The company is not currently looking for dilution, so debt would be its best option.
Archos and his team have built strong connections in the investor community. While the COVID-19 pandemic has made it difficult to travel and foster in-person relationships, the Verano team moves forward in a digital world. The company has brought in private family offices and institutional investors that support Verano’s long-term play, according to Archos.
Growth Trajectory
Verano reported $143 million in Q1 revenue and $199 million in Q2 revenue. The potential for adult use in a number of the company’s markets, like New Jersey, holds the promise of continued growth. The company continues to open retail locations, and it has cultivation expansion coming online.
While Verano is ready for adult use in a number of its markets, regulatory delays come with the territory. The team can’t control when those transitions will happen, but it is getting ready to take advantage of the opportunity whenever it arrives.
With Canada ???? to the North and Mexico ???? to the South this MAY speed up the legalization in the U.S. https://www.wsj.com/articles/mexico-set-to-become-worlds-largest-legal-cannabis-market-11609263506
FYI: The U.S. House is scheduled to vote Friday (12/04) on the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, which would decriminalize cannabis (marijuana) and make it possible to erase nonviolent federal marijuana convictions.
The bill also aims to remove cannabis from the Controlled Substances Act.
F.Y.I. The U.N. Office on Drugs and Crime voted 27-25 to take cannabis off its most stringent category of controlled substances. The plant is still classified as a Schedule 1 substance under the 1961 Single Convention on Narcotic Drugs.
However the symbolic vote could encourage the U.S. to loosen federal laws on cannabis, especially medical and research, to coincide better with state laws, according to a Cowen research note Wednesday.
"Congress may be moving slower than the cannabis industry would like, but it is moving faster than almost any other policy issue," analyst Eric Assaraf said. "Not even the pandemic is derailing a House vote on the MORE Act scheduled for tomorrow, which would legalize cannabis."
Organigram to Report Fourth Quarter and Full Year Fiscal 2020 Results on November 30, 2020.
Organigram Confirms Additional $2.5 Million Investment in Hyasynth Biologicals Inc. as Biosynthesis Pioneer Completes First Milestone Linked to First Sale of Commercial Product and Announces Executive Changes
Hyasynth Investment
October 23, 2020 06:00 AM Eastern Daylight Time
MONCTON, New Brunswick--(BUSINESS WIRE)--As an early investor in biosynthesis, Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce it has funded an additional $2.5 million investment in Hyasynth Biologicals Inc. (“Hyasynth”), a private biotechnology company and pioneer in the field of cannabinoid science and biosynthesis. The announcement comes as Hyasynth makes the first sale of CBDa1 produced and extracted from yeast.
“Cameron’s leadership in advancing cannabis legalization and awareness, while supporting positive policy development and promoting the sector as a key economic driver of the Canadian economy, has contributed to both the growth of Organigram and the evolution of the industry overall”
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In addition to the investment, Organigram continues to have the right to purchase potentially all of Hyasynth’s cannabinoid or cannabinoid related production at, subject to the terms of its agreement with Hyasynth, a 10% discount to the wholesale market price for a period of ten years from Hyasynth’s commencement of commercial production.
Organigram initially advanced $5 million to Hyasynth in September 2018 in accordance with the terms of a Debenture Purchase Agreement (the “Agreement”) between the Company and Hyasynth. Today’s announcement represents the second of three tranches outlined in the Agreement and brings Organigram’s total investment in Hyasynth to $7.5 million. Organigram has a right to purchase a remaining $2.5 million of convertible secured debentures (the "Debentures") which would bring its total investment in Hyasynth to $10 million upon the achievement by Hyansynth of another designated milestone and compliance by Hyasynth with other specified terms and conditions.
Biosynthesis is most commonly known as the primary production methodology for insulin used in the treatment of diabetes. Unlike chemical synthesis, or agriculture methods, biosynthesis results in products and final ingredients that are pesticide-free and are based on natural ingredients. Hyasynth’s biosynthesis process uses patent-pending yeast strains and enzymes to produce pure cannabinoids (not synthetic) without relying on cannabis plants. In addition to the major cannabinoids such as CBD and THC, Hyasynth has also demonstrated and submitted patent applications on the production of minor cannabinoids for which traditional cultivation is cost prohibitive since these cannabinoids are found in only very low levels in cannabis plants. The minor cannabinoids are believed to be the next frontier of cannabis research and novel cannabis product development.
The advantages of biosynthesis compared to traditional plant cultivation are expected to be as follows:
Feasible production of minor cannabinoids;
Reduced operating and capital costs;
Consistency and purity of products;
A smaller environmental footprint; and
Leverages the existing infrastructure and techniques already popular for food and pharmaceutical production.
“While we believe there will always be a sizeable market for dried flower and derivative based products produced at our indoor facility, it is exciting to watch Hyasynth’s progress in biosynthesis. We believe biosynthesis has the potential to redefine the cannabinoid production landscape by setting a scalable and reliable platform of supply that cannabis producers and pharmaceutical companies can leverage for success,” says Greg Engel, CEO, Organigram. “As the demand for large-scale, pure and consistent supply grows in both the pharmaceutical and consumer sectors, we are pleased to continue to support Hyasynth’s work.”
Again, F.Y.I:
MONCTON, New Brunswick--(BUSINESS WIRE)--Jan 23, 2020--
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce products from its premium adult recreational Edison Cannabis Co. brand have been awarded top honours in the consumer-driven Leafly Readers Choice Awards.
The Company’s Edison Cannabis Co. products took first-place position in four key product categories: Top THC-Dominant Flower, Top Pre-Roll, Top THC Oil and Top CBD Oil.
“These products, chosen the finest in Canada by those who know cannabis best, are validation for all the hard work, thought and dedication applied to the development of the Edison Cannabis Co. brand and the quality of its products,” said Greg Engel, CEO, Organigram. “We’re incredibly proud of our teams and thank those who support our work. A special thanks to the team at Leafly for this celebration of cannabis in Canada.”
F.Y.I:
MONCTON, New Brunswick, November 11, 2019–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce that the Company was honoured on November 8 at the Canadian Cannabis Awards Gala in Toronto with the Top Product Award in the High THC Bottled Oil Category for its medical product, Rossignol. The annual ceremony honours outstanding people, products and companies in Canadian cannabis.
“We are incredibly proud of our teams, whose dedication and commitment to creating thoughtful, innovative products and brands was celebrated last night in a room full of our peers,” said Greg Engel, CEO, Organigram.
The Company was also recognized in the following categories:
Brand of the Year, first runner up: The Edison Cannabis Co.
Top CBD Oil, first runner up: Organigram Shubie
Top Balanced Oil, first runner up: Organigram Utopia
Top High THC Bottled Oil, first runner up: Organigram Banook
Top Hybrid Flower, first runner up: Edison Cannabis Co. El Dorado
Top Hybrid Pre-Roll, first runner up: Edison Cannabis Co. City Lights Pre-Roll
Top Sativa Dominant Pre-Roll, first runner up: Trailblazer Flash Stix
Employer of the Year, finalist
Organigram’s biosynthesis bet is paying off, says Raymond James
By Nick Waddell
7:00 AM
October 1, 2020
The market has been rough on Canadian cannabis name Organigram (Organigram Stock Quote, Chart, News TSX:OGI) but there’s a bit of good news related to its biosynthesis equity partner, which should be seen as a sign of OGI’s potential going forward, says Raymond James analyst Rahul Sarugaser.
In an update to clients Wednesday, Sarugaser reiterated his “Market Perform 3” rating on OGI, whose share price has dropped 56 per cent in value year-to-date.
On Monday, Montreal-based Hyasynth Biologicals announced it has made its first sale of cannabidiol (CBD) produced via biosynthesis from yeast. Not disclosing at this time information on the buyer, Hyasynth, who is Organigram’s CBD biosynthesis equity partner, has said that its proprietary process is profitable right away and that the company is now positioned to move toward large scale commercial manufacturing which it aims to achieve during 2021.
“Our head start in this area was a key factor in us being the first to reach commercial sale of CBD and CBDa produced from a reliable and sustainable source,” said Kevin Chen, CEO of Hyasynth, in a press release. “We’ve assembled an excellent team of researchers, built an IP portfolio across many cannabinoids, and our production & sale achievement is one of the last checkpoints before we make our solution available worldwide.”
In his report, Sarugaser pointed out that Organigram was one of the first cannabis companies to move on cannabinoid biosynthesis through a $10-million investment in Hyasynth back in 2018, which, to the analyst, “confirmed to us OGI’s future-facing, technology-prioritizing attitude to business.”
“OGI's conviction in cannabinoid biosynthesis was an early hedge on the botanical cannabis space, providing the company optionality on its future cannabinoid supply chains. Derivative cannabis products—Cannabis 2.0, e.g., edibles, vapes, topicals beverages, concentrates— comprise an escalating share of the global cannabis market, and the pure cannabinoids produced by fermentation are extremely fungible with plant-derived cannabinoids,” Sarugaser wrote.
“So, while Hyasynth is still in the early stages of scaling its process to reach commercial production volumes, we see this announcement as a positive for OGI,” he said.
Sarugaser said Organigram’s focus on Cannabis 2.0 products, especially vapes and chocolates, would allow it to “immediately incorporate” Hyasynth’s cannabinoids into its current product offerings, leading to reduced input costs and stabilized batch-to-batch variability. In essence, Sarugaser feels like OGI’s investment in Hyasynth is beginning to pay off.
“OGI has, indeed, been having a hard time on the markets recently, hitting new 52-week lows this week, but this news of positive progress from its biosynthesis partner, Hyasynth, illustrates to us that OGI has the capacity to develop a suite of innovative, technology-empowered products as the cannabis sector migrates from its reliance on noisy, inconsistent, expensive cannabis plant-derived cannabinoids toward pure, consistent, cost-effective APIs produced by alternate manufacturing modalities such as
biosynthesis,” Sarugaser wrote.
Looking ahead for OGI, Sarugaser thinks the company will generate fiscal 2020 (year end August) revenue and EBITDA of $91 million and negative $20 million, respectively, and fiscal 2021 revenue and EBITDA of $114 million and $23 million, respectively.
F.Y.I:
MONCTON, September 13, 2018/CNW/ - Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of medical marijuana, is pleased to announce the closing of its strategic investment in convertible secured debentures (the “Debentures”), to be purchased in three tranches and valued in the aggregate at $10 million, of Hyasynth Biologicals Inc. (“Hyasynth”), a biotechnology company based in Montreal and leader in the field of cannabinoid science and biosynthesis.
The funding provided by Organigram, the largest announced direct investment in this kind of cellular agriculture technology in Canada, will allow the company to refine and optimize their processes at scale via a contract manufacturer as well as fund a purpose-built manufacturing facility for production. In conjunction with Organigram’s purchase of Debentures, Organigram and Hyasynth have entered into an agreement that allows Organigram to purchase a significant quantity of cannabinoids produced by Hyasynth.
F.Y.I: OGI has invested in Hyasynth Biologicals Inc. a Montreal-based biotechnology company and leader in the field of cannabinoid science and biosynthesis. Hyasynth has developed a disruptive technology using proprietary yeast strains and patent-pending enzymes to naturally produce cannabinoids without growing the cannabis plant.
Biosynthesis vs Traditional Cultivation:
Reduced operating and capital costs
Scalable, consistent, superior purity and quality
Production of minor cannabinoids just as feasible as major ones
Able to meet even more rigorous standards of CPG and Pharma
Smaller environmental footprint
While Organigram believes there will always be a sizeable market for the premium dried flower produced at its facility, working with Hyansynth changes assumptions about scale, speed and precision to produce the highest margin products such as extract-based medical products and a range of adult-use recreational products such as edibles and beverages.
In addition to the investment, Organigram has the right to purchase 25 per cent of the cannabinoid offtake from Hyasynth at a discount to market prices.
F.Y.I:
Hyasynth first to market with CBD in global race to commercialize cannabinoids produced using microbial biosynthesis
Hyasynth (CNW Group/Hyasynth Biologicals Inc.)
NEWS PROVIDED BY
Hyasynth Biologicals Inc.
Sep 28, 2020, 15:38 ET
MONTREAL, Sept. 28, 2020 /CNW Telbec/ -- Hyasynth, a sustainable biotechnology company, takes top spot from global competitors by making the first ever sale of cannabidiol (CBD) produced and extracted from yeast. Hyasynth produces CBD through a yeast fermentation process, without the need for traditional cultivation and extraction from cannabis or hemp plants. The material was produced using Hyasynth's proprietary yeast under contract by a fermentation partner. This production marks a key commercialization achievement and positions the company to move towards large scale commercial manufacturing.
Hyasynth's engineered yeast, shown here on a petri dish, is used to produce CBD and other cannabinoid products. The yeast fermentation process allows production of nature-identical cannabinoids in a more sustainable, consistent, and accessible manner than plant cultivation and extraction. Hyasynth first to market with CBD in global race to commercialize cannabinoids produced using cellular agriculture (CNW Group/Hyasynth Biologicals Inc.)
Hyasynth was among the first companies to specialize in cannabinoid production by fermentation, also called cellular agriculture or biosynthesis - a field that has seen more than $500 million in investments over the last three years. Cannabinoids that are produced this way are expected to provide huge benefits in cost, quality and sustainability versus traditional plant cultivation and extraction. Hyasynth's platform allows it to produce CBD, one of only two natural cannabinoids in clinically proven products. The company's primary competitors have recently announced work on CBG, the precursor to CBD, which is easier to make but lacks an established market.
Hyasynth's fermentation process takes less than one week to complete, making it 12 times faster than production by cannabis or hemp plants. Fermentation is a traditional manufacturing process for pharmaceutical, food and cosmetic products. A widely known example of this process is the production of insulin by bacteria. Unlike other production methods, fermentation results in natural, bio-based products and final ingredients that are pesticide and GMO-free. Hyasynth's technology can be scaled through partnerships with fermentation facilities that already exist worldwide. With these product features, Hyasynth is set to reshape the industry for major cannabinoids, like THC and CBD, and rare cannabinoids that are found in very low levels in cannabis and hemp plants.
While an increasing number of medical researchers and consumers are finding benefits from CBD, many CBD suppliers and products have recently been warned by regulatory agencies for listing false information on the quantity of CBD and type of ingredients in their products. Hyasynth's technology provides a reliable option for the global supply chain.
About Hyasynth
Hyasynth Biologicals Inc. is a Montreal, Canada based biotechnology company that produces sustainable products through fermentation. It was founded in 2014 to satisfy a growing demand for cannabinoids by the pharmaceutical and consumer markets. Hyasynth's Better Cannabinoids technology enables scalable, low cost production of THC, CBD, CBG, and rare cannabinoids not typically accessible by plant cultivation. Investors in Hyasynth include the venture capital firm SOSV and IndieBio, and the strategic investor Organigram Holdings Inc.
Organigram to boost portfolio thought SHRED launch
Sep. 17, 2020 6:31 AMOrganiGram Holdings Inc. (OGI)By: Gaurav Batavia, SA News Editor
In an effort to continue to break down the barriers to purchasing from the legal cannabis market in Canada and reinforce its ongoing commitment to value, Organigram Holdings (NASDAQ:OGI), the parent company of Organigram, is to launch SHRED, a high-quality, high-potency, affordable dried flower product pre-shredded for additional consumer convenience.
SHRED offers three pre-milled varieties, all featuring tetrahydrocannabinol of 18% or more and each contained in a two-way humidity system to preserve their unique flavour profiles.
The anna vending machine can hold up to 2,000 products and will be available at the Strawberry Fields dispensary in Pueblo, located roughly 43 miles south of Colorado Springs.
These machines are tailored toward the "experienced cannabis customers who don't necessarily need that one-on-one interaction with a budtender," CEO and founder Matt Frost told The Denver Post. "By doing this we're giving more time back to the people who do need hand holding and want that education from a live person."
A new kind of vending machine is coming to Massachusetts — a self-checkout kiosk for cannabis dispensaries.
Boston-based anna, which also has a presence in Colorado, announced this week that it would deploy its self-checkout products in two Colorado dispensaries this week. The company is expected to launch in Massachusetts in September, deploying 14 units across the two states within the next eight weeks.
Weed vending machines debut in Colorado
2:28 PM EDT August 19, 2020
You can now buy weed out of a vending machine at certain dispensaries in Colorado, America's oldest market for recreational cannabis.
A startup called Anna -- a play on the word "analytics" -- has begun deploying high-tech, self-checkout cannabis kiosks at select dispensaries in the state.
The machines can hold more than 2,000 products that include cannabis flower, edibles, infused beverages, balms and vape oils. The machines are ideal for the shopper who knows what they want and doesn't want to wait in potentially long lines, the company says.
Anna's arrival comes at a time when Covid-19 health protocols have limited consumers' abilities to shop in person as they had in the past. Cannabis retailers, which in many states were designated as essential businesses, have been able to offer online orders, curbside pickup and delivery, thanks to new pandemic-era rules.
From the Yahoo msg board: Scroll to bottom of OCS website, Edison has snuck onto the list of most searched for brands. First time Ive seen this happen, Great sign that latest strains are rising in popularity
Organigram Strengthens Edison Flower Portfolio with Three New High Potency Strains – The General (Grapefruit GG4), Chemdog and Samurai Spy (Ninja Fruit)
Company investing in new genetics, and micropropagation with Segra as part of its commitment to continuous improvement in product quality
August 04, 2020 06:00 AM Eastern Daylight Time
MONCTON, New Brunswick--(BUSINESS WIRE)--Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce the launch of three new strains of Edison Cannabis Co. (“Edison”) dried flower products, including higher tetrahydrocannabinol (THC) options The General (Grapefruit GG4), Chemdog and limited time option Samurai Spy (Ninja Fruit).
“At Organigram, we are keeping a keen eye on the evolution of market preferences and feedback from cannabis consumers”
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Available sales data continues to reinforce that cannabis consumers want both high THC dried flower products and cultivar diversity.
“At Organigram, we are keeping a keen eye on the evolution of market preferences and feedback from cannabis consumers,” says Engel. “Consumers have indicated that high quality, value pricing and higher THC options are important to them and we are proud to be able to respond to that demand.”
Each of the new Edison strains benefits from being grown in data-backed, strain-specific grow rooms with customized micro-climates designed to ensure consistent quality. Likewise, each Edison flower is packed with the Company’s dual boost humidity pack to preserve freshness.
The three strains are The General (Grapefruit GG4), Chemdog, and Samurai Spy (Ninja Fruit).
The General (Grapefruit GG4)
Edison’s sativa dominant The General (Grapefruit GG4) can generally be identified by its vivid green buds, tangerine pistils, grapefruit undertones and citrusy gasoline aroma. This strain features 17% - 24% THC and its terpene profile includes Terpinolene, Limonene, Myrcene, and Pinene.
Chemdog
Chemdog is a hybrid from Edison that boasts berry and floral notes, a spicy citrus undertone, fruity aroma, violet-green buds and a tall tapered, trichome covered flower. This strain features 18-25% THC and its terpene profile includes Limonene, Caryophyllene, Linalool, and Myrcene.
Samurai Spy (Ninja Fruit)
Samurai Spy (Ninja Fruit) from Edison is a hybrid characterized by its sweet grape flavour, piney notes, spicy aroma, crimson pistils and glistening lavender-jade buds. This strain features 17% - 24% THC and its terpene profile includes Caryophyllene, Myrcene, Limonene and Pinene.
The General (Grapefruit GG4) and Chemdog are currently being rolled out to retailers across the country.
Samurai Spy (Ninja Fruit) will be available soon in select provinces and for a limited time only.
Exploring New Cultivars, Micropropagation
In an ongoing effort to optimize the potential of the Company’s core cultivars and bring novel cultivars to market, Organigram is working with Segra International Corp. (“Segra”), a Canadian cannabis ag-tech company and pioneer in both cannabis plant tissue culture (also known as micropropagation) and cannabis genomics.
While growing cuttings to generate clones from a mother stock plant is the standard practice for young plant propagation historically, micropropagation creates true-to-type disease-free plants that offer improved quality, standardization, and reliability for cannabis young plant production.
“Our plant tissue culture technology represents a new frontier of optimized cannabis cultivation,” says Jamie Blundell, CEO at Segra. “As companies continue to strive to improve their bottom line, the adoption of plant tissue culture at scale will be key to both reducing operational risks and improved financial performance. Partners like Organigram who increasingly embrace plant tissue culture will find that they are not only strengthening their young plants but the wellness and productivity of their entire operation down stream.”
Plant tissue culture technology has the ability to unlock the full potential of cannabis plants, rejuvenating them back to a disease-free “generation-zero” version of the plant with optimized performance. Likewise, plant tissue culture allows propagators to select desirable variants and scale up viable cultivars more rapidly.
“Achieving the peak performance of our plants is at the core of our business,” says Engel. “We are proud to work with innovators like Segra who help us both deliver unique product offerings to our customers and help ensure our portfolio of plants is strong and productive for generations to come.”
Organigram Launches Trailblazer Snax, the Largest, Competitively Priced Cannabis-Infused Chocolate Bar in Canada
July 28, 2020 at 6:38 am
Published by NCV Newswire
MONCTON, New Brunswick, July 28, 2020–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce the launch of its most recent cannabis 2.0 product Trailblazer Snax, a premium-quality, value-priced, cannabis-infused chocolate bar.
Made with premium quality ingredients including cocoa butter, all-natural flavors and pure distillate, Trailblazer Snax has been developed to satisfy the most discerning chocolate connoisseurs while remaining an affordable cannabis-infused option.
Available in both mint and mocha flavours, the 42g bar with 10mg of THC is competitively priced and the largest cannabis-infused chocolate bar currently available in Canada. With each bar consisting of five sections, the Company expects it will appeal to chocolate lovers, consumers looking to share and individuals looking to control their dosage.
F.Y.I.
Tinley Beverage : Grows Asset Base to over $7 Million at Its Long Beach Facility and Experiences Rapid Revenue and Margin Growth
Envoyer par e-mail
05/27/2020 | 05:19 pm
LOS ANGELES and TORONTO, May 27, 2020 (GLOBE NEWSWIRE) -- The Tinley Beverage Company Inc. (“Tinley” or the “Company”) is pleased to announce the release of its financial and operating results for the fourth quarter and fiscal year ended December 31, 2019, and provide revenue guidance on the 3-month period ended March 31, 2020 (“Q1/2020”).
Highlights:
Capital expenditures grew Tinley’s asset base to over $7 million, notably in Property and Equipment, by the completion of the Company’s Phase 3 bottling facility development in Long Beach, California
Revenue guidance for Q1/2020 of over $170,000, more than double all of fiscal 2019, with gross margins turning positive and exceeding 40%, driven by growth across all product lines
Tinley’s flagship bottling facility in Long Beach, California represented the majority of the Company’s expenditures in fiscal 2019 as well as the installation of a Phase 2 bottling line, which is now slated for installation in an expansion territory outside California, and the addition of transportation vehicles to support marketing and distribution of its products in California. The Phase 3 facility in Long Beach is now largely complete, and it is progressing through final building inspections with the City of Long Beach and State regulators.
Simultaneous to the Long Beach buildout, the Company began building revenue via production at a Phase 2 bottling line, which was also built in 2019. Significant revenue growth began in Q4, 2019, and the Company expects to approximately double its 2019 annual revenue in Q1/2020. With this added scale, the Company’s gross margin is expected to turn positive and be in excess of 40%. The Company believes this growth is attributable to (1) the winning of the #1 and #2 awards at the Emerald Cup in December, 2019, (2) the addition of Shelf Life Distributing, (3) enhanced brand awareness and consumer reviews, (4) the launch of the Company’s non-infused “Beckett’s” product line and (5) the cannabis beverage category becoming the second-fastest-growing category in the cannabis industry, which occurred at the start of the COVID-19 pandemic. Further, this level of revenue growth was achieved despite the closure of one of the Company’s key distributors. The inventory in this distributor’s possession represented a potential of up to an additional $25,000 of sales.
The Company expects continued growth as its flagship bottling line becomes operational and as its non-infused products launch in 4 additional national and statewide retail chains. The Company is currently in a unique position to provide advance revenue guidance for Q1 given the regulatory relief provided by regulators due to the COVID-19 pandemic, which has left less than one week until the Q1 filing. The Company does not expect to be in a position to provide such advance guidance in absence of such extensions in the future.
Since the start of fiscal 2019, the Company also:
Signed an agreement for Canadian expansion with Great North Distributors. The Company is presently working to complete a second and final agreement with a party that will enable the Company’s products to be manufactured in Canada for availability throughout the country.
Doubled the number of dispensaries where the Company’s infused products are available, built a robust home delivery network that covers over 90% of the population of California, and added Shelf Life Distributing to continue to drive the growth of the Company’s retail presence throughout the state.
Negotiated agreements with a pipeline of co-packing clients, which the Company expects to consummate once Long Beach nears final approval.
Appointed two-time NBA All-Star Baron Davis to the Advisory Board. Mr. Davis is currently working on marketing initiatives and development of new products for the Company’s own products and its expected co-packing clients’ products.
Delivered its non-infused “Beckett’s” products to BevMo!, one of the largest liquor store chains in the West Coast, for availability in their 150-store network throughout California.
Became approved vendors for its non-infused products at 2 major national chains, and secured requests for products at two other major chains, collectively representing over 6,000 stores across the USA and Canada. The Company expects to begin trials in Southern California at select stores from each of these chains.
The audited financial statements and MD&A for the year ended December 31, 2019 can be found at the company’s profile at www.sedar.com.