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$2.00 coming next week? Unless the market takes a huge downside hit with some earthshattering bad news, we are back in an upward trend.
Railrider, while this has been a longer than expected ride to get these deals completed, here is my take
These deals were made before the Colorado Banking Bill 19-1090 which Andy Williams spearheaded came into law. Without this bill passing, these deals very likely wouldn’t have happened. It took longer for this bill to pass, but Andy was close to the vest on this issue and knew that it was only a matter of time before it was passed. This is a big part of the delay in my opinion. Since some of these government laws get tweaked when they are passed, they might have to do some rewriting of the deals and now it is a matter of crossing the T’s and dotting the I’s to get this done.
Also, the deals came in such a quick succession that it appears to make this work without diluting the stock price much, Medicine Man (Schwazze) was using the cash flow profitability of each acquisition to fund the next one. This is an incredible task but not unfathomable. All these deals were done within the stock price of $1.80 - $2.80 per share so while some acquisitions might balk because the stock price being lower, just signing these deals will improve the stock price to over $3.00 so none will be underwater. The only group that got a discount to the stock share price was Dye Capital. Many of the other public stock cannabis stocks have seen their stock price crater by as much as 70% – 80% so all those deals are underwater and would dilute their companies greatly if they were to redo their deals so most are getting terminated. Strawberry Fields has made a major mistake if they walked away from the deal because they might not get another offer from another company anytime in the near future and their company valuation won’t increase by the percentage if it stayed in the deal. I also believe that Schwazze will eventually put them out of business because of the foothold they will achieve in Colorado.
In the meantime, the marijuana industry has had a major shakeout and has seen sector stocks get crushed. Medicine Man (Schwazze) stock’s price has held up well considering and by all financials of the entire marijuana sector is one of the very few companies that is profitable. The company is making money and it is the cost of acquisitions and adding a quality management team to make this work that is holding back the stock price currently. Besides we are told that all these acquisitions are profitable companies, which is an amazing feat.
Finally, the short sellers have been all over the stock price. I believe when Andy Williams left the company, it spooked quite a few shareholders and gave the appearance that something was wrong. I believe that Andy leaving the company in the hands of Justin Dye is a great decision. Now the main question is why did Andy leave?
I have never met or spoken to Andy but this is my thoughts on his leaving. Andy had the personality and the vision of an inventor or scientist. He always seem like a visionary, looking for the next big thing to build or finding a cure for a disease and not a behind the desk kind of guy. He started Medicine Man with a good friend, Brent Roper. I believe that he and Brent knew they had finally broken the barrier into the cannabis industry and were upon great things. But with Brent’s unexpected passing, it took some of the wind out of the sails for Andy. In the previous conference calls, Andy was always taking about what he was looking to conquer next while Brent was the dress suit kind of guy always running the company financials and handling the day to day operations of the company. Andy knew he had to finish what he started and that is why Dye Capital was approached. Now the company has a seasoned executive who has the necessary experience to grow this company to be one of the industry giants.
Andy didn’t leave with a golden parachute. All his future wealth is still tied up in the company with his current stock holdings and options. He just knew it was time to move on and let the right people run it.
I believe we are on the cusp of something remarkable. I have stated in previous posts that I believe this is a $20.00 stock at worst and could be worth $50.00+ when (not if) the federal government makes marijuana legal.
I believe the rest of these deals will get finalized in the next few weeks and we will see the stock in the $5.00 - $10.00 range at least before the year is out.
Blindman.....the quarter came in the area I expected as I stated in a previous post. I was hoping for a little more surprise on the plus side, but on the conference call they lost a few of the smaller customers due to the financial distress from the COVID crisis. On the plus side, they were able to pick up some new customers to replace the lost ones due to COVID. The CEO stated that there was more potential for more business from these new customers and from the new deal they stated today. Overall, I think it was a good call and we will see some updraft going forward. I think we could be above $1.50 tomorrow.
With all the distraction of the COVID crisis, I just noticed that the short interest dropped by 100,000 shares is the final 2 weeks of March. I wouldn't be surprise to see that number fall further when the next report comes out.
Blindman...thanks for the info. I didn't even know about CXDO so using those numbers makes ATGN a hidden gem in my opinion. I am anxious to see the earnings tomorrow. Best of luck.
I think the new name is a positive and unique. I always believed that the company was constantly confused with Medmen so this will definitely separate that issue.
I have been invested in this stock since it went public and always thought it would be a leader in the industry because of the diversity of the operations. When they started announcing all these deals I thought this would be a $20.00+ stock but at least a $10.00 stock at the worst.
If the federal government legalizes marijuana, then I think this company could go up to $50.00 a share. I really think this financial COVID-19 crisis could push up the legalizing marijuana because there is so much tax revenue the government could recapture to the bailouts currently going on. Colorado is a perfect example of the tax revenue from the industry and I just don't see the federal government is going to let this issue slide by.
Closing a few more of these deals in the next few weeks, I see us back up to the $5.00 range at least.
If they can get some more of the deals completed within the next days or few weeks, that will energize the stock and lift the price significantly probably back to the $3.00-$4.00 level with this weak stock market.
Then if we can get the country back to work and end this crisis, we could have a rocket ship in price taking place. Also, if the country can get back to work and the price of oil starts to recover, we will have a lifting of the stock market that can be breathtaking.
What I am excited about is to see these deals completed and see the earnings per share really rocket since we were told that these companies and deals were profitable from the get go.
For all of us that have been riding this roller coaster and hanging in with your contributing posts, thanks for keeping the faith and providing excellent analysis. I can't wait to have that celebration down the road.
My guess is that we will get a press release later today about a name change to go along with the symbol change.
Drugdoctor...you might be on to something today 4/20
WealthyBuy...nice try but we know you are a professional short seller by all your posts with your comment is "Pump and Dump".
Earnings come out on Thursday, April 23rd after the stock market closes.
He should still get the million shares when it hits $8.00. There was no announcement that deal was cancelled. Remember, Andy still owns a ton of shares and options to buy more so I don't think Andy walked away feeling this new management would fail. He would have created a payout on his departure if he felt that way.
In my opinion, I think Andy liked the challenge of building something from nothing. Now the company is a machine and a corporate dynamic and that means meetings and structure and not freelance which is the type of personality Andy showed.
Just think what Andy could do with all the cash he could make from the stock he owns or has options for to build something new down the road.
Heading to $2.00+?
If we get earnings of .05 or better in this COVID crisis, we are going to $2.00 a share at least.
Just my opinion
Blindman.....I think any loss would be a disappointment even with the COVID crisis happening. Any profit margin of .01-.04 per share would be nice considering the world crisis and that is what I am expecting based on past earnings and growth. Anything over $.05 share is super at this time.
Just my opinion, fingers crossed for a surprise.
When a stock market collapses and people want to liquidate, they sell what they can first without taking losses if possible. Since the stock was trading at all-time highs, everyone selling is in a profit situation. Human instinct has us holding on to our losses for the hope to at least break even. I hate selling at a loss if possible so I would hold on to my losers and take profits in other stocks and wait for them to come back down to a lower level to jump back in like ATGN. Since the COVID situation is a crisis we haven’t seen (meaning an illness and not a financial) like in 2008, we are in uncharted waters with how we trade the market. Like I started in my previous post, this $1.00 - $1.10 level seems to have exceptional strength. I have been adding at this level because I believe the stock is cheap here and the company will pick up a lot of additional business in the upcoming quarters due to the COVID crisis. I hope that answers your question.
The stock had a nice run in early 2019 to the $1.10 - $1.30 level and created a nice base there. Then it took off to the $1.70 level and was trading very nicely and it was making a new 52 week high every few days before the COVID-19 crisis hit so the stock retracted to that $1.10 level.
So I think anyone selling below this level is probably selling at a loss so I believe we will hold this level going forward. It will be interesting to see if they pick up new business due to the crisis currently in the next earnings report.
Wish we could get more of an investor following for this company. They are performing well and growing. With stable management, along with a low share float, no stock dilution and no debt this company has all the ingredients to be a high flyer. It just needs to get on a bigger player's radar for it to get the boost needed. Looking at the sell side of Level 2, there are basically no offers so with any push to the upside this could run up a few dollars in a heartbeat. Keeping fingers crossed to get some catalyst to see it start moving.
Takeover candidate?.....This is a bit of a reach, but could ATGN see a takeover play for the company? With the current COVID crisis and this company being profitable, could Microsoft or another company make a bid for ATGN? This company sure is a solution provider for the social distancing issues we are facing and with the low share float, low share price and profitability, it could be ripe for the taking.
Just a far fetched thought at the moment, but I believe it could be in demand in these challenging times. There appears to be quite a few buyers at the current price level between $.90 - $1.10.
I would expect the next earnings report would be better than anticipated.
Beyer.....you might be right but I have my doubts. The one thing for sure is that the raise won't be below $1.00 because I sincerely doubt that Dye Capital would want to undercut their equity stake since they invested at that price. If it wasn't for the COVID crisis, this stock would probably be trading in the $2.50 - $3.00 range at this point because the quarterly earnings were very good. The problem with the earnings is the cost of hiring much staff to get the company prepared for the growth.
Still believe that MDCL will be one of the industry leaders and giants in the sector for many years to come and that $20.00 - $25.00 a share is a realistic goal within a year's time frame. Just my opinion and wishing everyone good luck.
First Foods Group, Inc. Receives Highly Recognized OU Kosher Certification for its Line of Southeast Edible Brand of Products
NEW YORK, NY, April 01, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- First Foods Group, Inc.(FIFG) ("First Foods" or the "Company”), a developer and creator of high-end specialty hemp-based cannabidiol (CBD) edibles, announced today that it has received the highly recognized OU Kosher Certification for its Southeast Edible hemp-based line of products.
First Foods’ hemp-based premium chocolate product line under the brand name “Southeast Edibles” is produced in the state of Florida and refines chocolate edible recipes in their state-of-the-art chocolate production facility using only the highest quality cacao ingredients. The Southeast Edible brand of products consists of a variety of Dark, Milk and White chocolate infused CBD bites.
By expanding into the OU Kosher market, First Foods(FIFG) continues to execute on its strategic plan and believes to have a first-mover advantage being one of the only known publicly-traded CBD edibles company with this certification.
The OU (Orthodox Union) Kosher is the world’s largest and most widely recognized kosher certification agency, certifying over 1.2 million products produced in more than 9,700 plants located in 104 countries around the world.
Consumers today are concerned about more than just the kosher status of their food. Over 12 million American consumers choose Kosher food products for reasons related to health, food safety, vegetarianism, lactose intolerance, and other dietary restrictions.
According to a report by Global Opportunity Analysis and Industry Forecast 2019-2026, the global kosher food industry was estimated at $19.13 billion in 2018 and is expected to hit $25.62 billion by 2026, registering a CAGR of 3.7% from 2019 to 2026.
Many of the food industry’s most recognized brands, large and small, choose the OU for their kosher certification. These include: ADM, Cargill, Coca Cola, Dean Foods, General Mills, H.J. Heinz, Hershey’s, McCormick & Co., Nestlé, Novartis, Procter & Gamble, Unilever, to name a few.
Harold Kestenbaum, CEO of First Foods Group(FIFG), stated, “OU Kosher is clearly a recognized distinction in the Kosher food products industry. While attaining this certification for our products was an arduous process, having this distinction is a clear market advantage that will enhance the perception of quality while also increase our products’ marketability to whole new market of Kosher consumers.”
About First Foods Group, Inc.(FIFG)
First Foods Group, Inc. (FIFG) provides management services and funding options for emerging supplement brands and menu concepts. First Foods Group, Inc.(FIFG) is also growing its own new concepts, both through proprietary development and through mergers, acquisitions, and licensing arrangements. First Foods Group(FIFG) has assembled a team of distinguished professionals with experience and success at the highest levels of the industry.
To learn more about First Foods(FIFG), please visit our website: www.firstfoodsgroup.com. We routinely post information that may be important to investors in the News Room section of our website.
To learn more about our Southeast Edibles product line, please visit: https://southeastedibles.com/
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Investor and media information, contact:
First Foods Group, Inc. (FIFG)
201-471-0988
info@firstfoodgrp.com
Image: First-Foods-Logo.png
Source: First Foods Group(FIFG)
2020 GlobeNewswire, Inc.
This is a great earnings report. Both divisions (Merchant lending and CBD chocolates) are growing at a nice rate. The company has excellent management, low amount of shares and NO DEBT! This stock should see the $1.00 - $2.00 range. If it wasn't for the COVID-19 crisis, this stock would be starting a nice launch to the upside.
First Foods Group, Inc. Reports Year End Revenue
Net Revenue Grew by 30% to $326,285 for the Year Ended December 31, 2019.
Assets Grew by 47% to $998,078 as of December 31, 2019. The Company has No Convertible Debt.
Results Were Positively Impacted by Syndicated Participation in Merchant Cash Advances, which Grew by 56% to $877,457 as of December 31, 2019.
Results are supporting the expansion of the Company’s Holy Cacao subsidiary, including innovative brands under the names Southeast Edibles, Purely Irresistible and Mystere.
New York, NY -- March 31, 2020 -- InvestorsHub NewsWire -- First Foods Group, Inc. (OTCQB: FIFG) (the “Company”), a fully reporting entity with growing interests in the food and food service industry, reported net GAAP revenue of $326,285 for the year ended December 31, 2019, representing an increase of 30% over the net GAAP revenue of $251,083 reported for the year ended December 31, 2018. Total assets as of December 31, 2019 were $998,078, representing an increase of 47% over total assets of $680,179 as of December 31, 2018. Since its inception in 2016, the Company has raised over $1.9M through a combination of debt and equity financing. The Company has no convertible debt. The Company has deployed its available funds by increasing its syndicated participation in merchant cash advances by 56% to $877,457 as of December 31, 2019 from $562,488 as of December 31, 2018.
The Company’s financial results are supporting the expansion of its Holy Cacao subsidiary, which is primarily focused on developing its specialty chocolate line and related intellectual property. The Company has developed twenty-three (23) proprietary recipes that have been tested in a fully staffed and fully equipped state of the art manufacturing facility. The Company has also obtained a trademark from the United States Patent and Trademark Office (“USPTO”) for “The Edibles’ Cult” and product names under the brands “Southeast Edibles” and “Purely Irresistible.” The Company has also submitted an application to the USPTO for its “Mystere” brand name. The Company continues to work with its third-generation consulting chocolatier and its network of distributors to expand the manufacturing, packaging and distribution of the Company’s specialty chocolate product line.
About First Foods Group, Inc.:
First Foods Group, Inc. (the "Company" or “First Foods”) is a smaller reporting company focused on developing its specialty chocolate line and participating in merchant cash advances through its 1st Foods Funding Division (the “Division”). First Foods continues to pursue new foodservice brands and menu concepts.
Cautionary Language Concerning Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes", "belief", "expects", "intends", "anticipates", "will", “should”, “could”, “might”, “potentially” or "plans" to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's reports and registration statements filed with the Securities and Exchange Commission.
First Foods Group, Inc.
201-471-0988
info@firstfoodgrp.com
Future.....in my book, September is the end of summer so I will take it. Justin made it apparent that deals would be announced throughout the summer as they get completed. I would really like to see each deal get announced one at a time to help build constant momentum in the stock price. We just need to get past this COVID-19 crisis first and have the stock rally a bit and then get great news about the deal completions and we will be off the races. It has been a long time coming but I am really excited about what is to come.
Great to hear all the deals still on the table and expected to be completed hopefully by summer. Justin very positive about the future. Can't wait to see it get done. GLTA!
According to Justin Dye, MEDPHARM is still on the table.....yahoooooo!
Revenue up 31% and we don't even have the acquisitions completed yet. Real good times ahead.
Here are the earnings:
https://www.businesswire.com/news/home/20200330005697/en/
They got a good chunk of cash when Dye Capital invested in the company. If more cash is needed, I wouldn’t be surprised to see Dye Capital invest more cash into MDCL. Just my thoughts.
Keep watching TLRY, it is really trying to push this sector in a bullish direction
Pot stocks looking strong this morning despite the market looking weak to open. We could see a $2.00 close today.
The annual report wasn’t bad but I was hoping for a break even or slight profit report. I think this stock could skyrocket at anytime with some positive news and low float. I think the Southeast Edibles product is a hidden gem and could really add substantial value to the company. The Merchant division is constantly doing well and keeps the company earnings close to break even. While the company doesn’t have much personnel staff, I like that the management board has no turnover and doesn’t dilute the shareholders. The company needs some public relations to get the word out to help give some additional awareness out there to help boast the interest.
VERT still on the bid side, always shows 100 shares. As long as they stay on the bid side, we are going up. They were aggressive on the sell side while we went down. Could be the start of short covering. Hopefully really good times ahead.
We would have finished above $1.60 - $1.65 if Bernie Sanders could have kept his comments to himself for the last 30 minutes of the market being open. But I will take the positive close in the green. Obviously, Monday will be the key day of knowing where we are headed..
VERT is on the buy side which means we are going up!
Pot stores see sales climb amid COVID-19 outbreak: 'You can’t take these things away from people in times of stress'
Abby Haglage
Yahoo Lifestyle March 20, 2020
California Governor Gavin Newsom sent shockwaves through the West Coast on Thursday when he officially ordered all 40 million of the state’s residents essentially shelter in place (meaning stay home unless buying basic necessities or seeking medical care). But among the “essential services” that he deemed will remain open — on top of pharmacies and food stores — was, perhaps surprisingly, marijuana dispensaries.
Popular dispensary MedMen, which operates 33 stores in nine states including 12 in California, says it is operating with modified hours, but all stores remain open (except for one in Monterey Bay, Calif. which is closed due to local jurisdiction). “As of now, we have been deemed an essential business in the markets that have established protocol,” Christian Langbein, the company’s spokesperson says. “We are closely following recent guidelines released by each state and local jurisdiction, plus that of the CDC and the WHO in the best interest of our customers and employees and have adopted the recommended safety protocol.”
As a company seemingly unscathed by the coronavirus outbreak thus far, MedMen is in the minority.
In the two months since the first case of COVID-19 landed in the U.S., the nation’s private sector is a changed place. Over half of America has closed all non-essential businesses, recreational activities — from festivals and theme parks to cruise ships — have come to a screeching halt, sports teams have hit pause on their seasons and the financial market may be on the verge of a crash.
But amid the colossal shifts, the cannabis industry seems poised to stay afloat.
Denver-based Medicine Man, one of the first and largest dispensaries in the U.S., tells Yahoo Lifestyle that in the weeks since the coronavirus began spreading rapidly, its sales have actually escalated. “Our numbers are significantly higher than they would normally be this time of year,” says Sally Vander Veer, the dispensary’s CEO. “For the most part, we're seeing customers who are grateful that were open because they can get their medicine.” Although Vander Veer wouldn’t describe the influx as panic buying, she has definitely noticed a shift among customers — and has begun shifting how her company operates as well.
“We’re encouraging online orders. So customers can go to our website site, place an order and it will be ready for them to pick up at our store. They can be in and out in 30 seconds,” says Vander Veer. “On the floor of our dispensaries, we have tape that to ensure that we're maintaining six feet of distance between every customer. All of our budtenders are wearing gloves and using hand sanitizer or washing their hands in between each transaction.”
Medicine Man, which employs 90 people, is preparing for the possibility of moving all sales online — but Vander Veer feels confident that the company’s four locations will remain open. “Luckily we're considered essential businesses so far in Colorado,” says Vander Veer, referencing a mandate from Colorado Governor Jared Polis requiring all non-essential businesses to close. “I think it speaks a lot to the importance of marijuana as medicine — especially in times when people are anxious, [depressed] or they can't sleep.”
Vander Veer says the distinction of “essential services” in the time of the coronavirus makes sense both for citizens and the state as a whole. “[Governor Polis] has been a strong supporter of our industry because I think he realizes what we contribute to the economy,” she says. “And he's smart enough to know that like liquor stores, you can't take these things away from people in times of stress.”
Cannabis is indeed big business in Colorado, garnering nearly $1.3 billion in sales in 2018 alone. But it’s far from the only state turning a major profit on legalization, or bringing in a plethora of jobs. According to Leafly’s 2019 Cannabis Jobs Report, there are an estimated 243,700 full-time employees working in the marijuana industry today, a 110 percent increase from 2016, when only a handful of states had recreational laws. Now, with marijuana legal recreationally in 11 states, experts predict it will continue to be a major driver of job growth.
Or at least ahead of this outbreak, they did. But even in places where COVID-19 is spreading, such as in Washington, dispensaries show no signs of slowing down. Ian Eisenberg, owner of the popular Seattle-based dispensary Uncle Ikes says his company is remaining open amid a cluster of cases in the state. But like Medicine Man, he is working to ensure customers and budtenders (the moniker for marijuana dispensary workers) are as safe as possible.
“We're limiting the number of people in our stores at a time, we're encouraging pre-orders. If you want to talk to a budtender you're going to wait in line outside for a long time and there are chalk marks on the sidewalk showing you where to go.” Eisenberg tells Yahoo Lifestyle. “Inside we're making people stand six feet apart and I think we only have, depending on which store it is, a handful of people in the stores at a time versus 20 or 50 before.”
In a post on Uncle Ike’s Facebook page from Wednesday, the dispensary shared an aerial view of customers waiting in line to get in, each diligently appearing behind a white line drawn in chalk. Eisenberg realizes how strange the situation is, but says that allowing cannabis to flow freely is in everyone’s best interest. “The pharmacies, the grocery stores are going to be allowed to stay open so I don't know why they wouldn't allow pot stores,” says Eisenberg. “Most of our customers self-identify as one form or another a medical user.”
Beyond that, he says it’s simply the smart choice for keeping people who are under lockdown sane. “I think if you want people to stay indoors and not go out and not interact with a lot of people? Pot's a pretty good thing to have,” he says. “Then you can get stoned and watch Netflix.”
For the latest news on the evolving coronavirus outbreak, follow along here. According to experts, people over 60 and those who are immunocompromised continue to be the most at risk. If you have questions, please reference the CDC and WHO’s resource guides.
High-profile founders leaving US marijuana companies signals new phase for industry
Published March 20, 2020 | By Nick Thomas
A number of high-profile founders of U.S.-based cannabis companies have stepped down in the past several weeks amid continuing struggles to move their firms toward profitability.
Industry experts suggest this is a sign of maturation among marijuana businesses as investors demand they focus more on profits than raising capital and relying on previously booming stock prices. That focus is common in mainstream industries.
As investors push for more accountability and a quicker path to eventual profitability, seasoned executives from outside cannabis are entering the industry to help shape the future – and that leaves less room for original company founders who might not have the skill sets to oversee such an evolution.
Investors and entrepreneurs alike are discovering a big difference between starting a company and then managing it as it becomes more complex in terms of finances and structure.
“Many entrepreneurs are great at taking companies from concept to maybe $10 million or $50 million of sales,” said Craig Behnke, equity analyst at Marijuana Business Daily‘s Investor Intelligence.
“However, those entrepreneurs may not be as strong, with the myriad skills necessary, to take a company from $50 million to $500 million of sales.”
Here’s a roundup of some founders who recently exited their U.S. marijuana firms:
• Adam Bierman of Los Angeles-based multistate operator MedMen Enterprises, in January.
• Jose Hidalgo of Cansortium, a medical marijuana dispensary operator in Miami, in February.
• Andy Williams, co-founder of Denver-based Medicine Man Technologies, in February.
• Joe Caltabiano, co-founder and president of Chicago-based Cresco Labs, in March.
Entrepreneurs who might be questioning their roles also have to work out themselves if they are still a fit in the company they started or whether they can better funnel their skills elsewhere.
In this way, the marijuana industry is similar to other startups in mainstream industries as founders battle with the decision to give up control when conflicts emerge and as they become more accountable to investors.
For example, a 2008 Harvard Business Review report showed that less than 25% of startup companies in multiple industries still had their founder at the helm at the time of a company’s initial public offering.
Depressed stock prices playing a part
Such changeover at the top comes amid an increasingly difficult capital environment for publicly traded cannabis companies, and that’s only become exacerbated by the coronavirus crisis.
With capital increasingly scarce and debt transactions only in reality available to bigger companies with large resources, the departure of cannabis founders is a trend that’s likely to continue.
Even a well-resourced company such as Cresco said goodbye to Caltabiano.
Cresco’s stock price on the Canadian Securities Exchange has declined from 11.14 Canadian dollars ($7.69) a year ago to about CA$3.16 currently.
The choice to make a change came from Caltabiano as he spoke of differing visions for the baby he and CEO Charlie Bachtell helped grow.
And Cresco’s three-sentence media release the following day suggested the company was surprised by his decision.
Caltabiano told Marijuana Business Daily it was his decision to resign and that the move had “caught some people off guard.”
But Caltabiano also spoke of the role the difficult capital environment played in his departure.
“Stock prices can certainly dictate the future of founders and executives in a very material way,” he said.
“There will be some tough capital markets in the short term, and there certainly could be disruption at the highest level of a lot of organizations.”
Fall or pushed?
For those outside a company, speculation can run rampant when founders resign or are asked to leave.
Often, it can mark a sign of amicable departures if such founders remain with the company they started in some role, albeit reduced.
For example, MedMen’s Bierman is, for now, still on the company’s board.
Medicine Man Technologies’ Williams, who founded the company with his brother with a $150,000 check from his stepfather, resigned as both an operational head and board member on Feb. 25, according to an SEC filing – which also noted the departure was not the result of a disagreement.
Medicine Man Technologies is now run by a management team with ties to Dye Capital.
Justin Dye, founder of the Florida-based private equity group, helped invest an initial $18.2 million in Medicine Man Technologies and is now the Denver company’s CEO and chair.
What is certain, however, is that entrepreneurs need to look inside themselves and decide on a good time to leave before they could potentially become a liability to the company.
“Most entrepreneurs and company founders ultimately face the day when they have to step aside or delegate critical aspects of running the business to senior managers with specific areas of expertise,” Behnke noted.
“The best entrepreneurs recognize that reality well before their limitations negatively impact their business and shareholder value.”
Former Cresco President Caltabiano seems to have found the right time and is looking forward to his next venture, which he said will fall in the cannabis space.
“You’ll see me involved in more of a startup or companies that don’t have as solid of a footing as Cresco,” he said.
“I’ll help with their strategic vision and a capital plan and help them achieve their success. I felt like it was a good time to move on.”
Nick Thomas can be reached at nickt@mjbizdaily.com
Margaret Jackson and Matt Lamers contributed to this report.
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Medicine Man Technologies Names Nirup Krishnamurthy as Chief Integration and Information Officer
Press Release | 03/18/2020
Medicine Man Technologies, Inc. (OTCQX: MDCL) ("Medicine Man Technologies" or "the Company") today announced Nirup Krishnamurthy has joined the Company as Chief Integration and Information Officer, reporting directly to Justin Dye, Chief Executive Officer.
In this newly created role, Krishnamurthy will lead the integration of the Company’s outlined acquisitions, any future acquisitions and the realization of identified integration synergies. In addition to integration responsibilities, Krishnamurthy will lead Medicine Man Technologies’ IT strategy and operations, implementing business solutions to empower real-time, data-driven decisions and ensure the security and stability of the Company’s infrastructure.
“Nirup’s ability to unlock business value while accelerating growth are key advantages he brings to Medicine Man Technologies,” said Justin Dye, Chief Executive Officer. “His experience and leadership coupled with deep capabilities in both technology and integration spaces, are those that I have been able to experience first-hand during our partnership at Dye Capital. With Medicine Man Technologies’ announced acquisition strategy, deliberate technology and integration are critical tenets to ensuring our combined company is successful. Nirup has successfully guided complex, global companies through transformations and I look forward to having his keen focus and detailed approach at Medicine Man Technologies.”
“I am thrilled to be part of this one in a lifetime opportunity at Medicine Man Technologies to help develop the most admired cannabis company in the world,” Nirup Krishnamurthy shared. “It is not often that one gets to design and build a growth platform from the ground up and integrate companies effectively. As the Company brings together some of the best operators across the state, Medicine Man Technologies is poised to become a global leader and I look forward to participating in the explosive growth of this emerging industry.”
Krishnamurthy has over 25 years of experience in innovation, technology, integration, restructuring and M&A at Fortune 500 companies. As Chief Information Officer of United Airlines, Krishnamurthy was part of the management team that undertook one the largest turnaround restructurings in corporate America. He used technology, business analytics and process improvements as major levers to drive cost reduction and revenue enhancement for the airline. After United Airlines, Krishnamurthy became Chief Technology Officer and Executive Vice President at Northern Trust Bank where he oversaw an IT Transformation effort that enabled better collaboration and implemented several large-scale enterprise wide initiatives. Krishnamurthy was also Chief Strategy Officer at The Great Atlantic & Pacific Company where he oversaw the operational restructuring and the subsequent M&A transaction. For the past several years, he has been a partner at Dye Capital and oversees its technology investment portfolio. Krishnamurthy holds an undergraduate degree in Mechanical Engineering and a Ph.D. in Industrial Engineering from SUNY at Buffalo.
For more information about Medicine Man Technologies, please visit https://www.MedicineManTechnologies.com
MDCL has been filling employment openings at a fast pace to be ready for the blastoff to come. They have 3 current openings (filled a few this past week or so). One of the key openings is Manager of Treasury. This position is a key one overseeing all the financial operations for the upcoming deals and expansion. Once this is filled, we should start getting news about the deals (IMO).
Posted on the company's website:
At Medicine Man Technologies, we continue to monitor the COVID-19 situation closely. This is a rapidly evolving situation and, as such, it can cause uncertainty. We wanted to reassure you of our ongoing efforts to protect the safety of our customers, our employees and the communities in which we operate.
While health and safety standards and procedures are followed on a daily basis by Medicine Man Technologies and the businesses we operate, we wanted to make you aware of the extra precautions we’re taking to ensure everyone stays healthy during this time of heightened concern.
Our enhanced safety measures include:
Closely and consistently monitoring daily updates and recommendations from the Center for Disease Control and Prevention (CDC), the World Health Organization and the Colorado Department of Public Health and Environment.
We are still operating and ensuring we are meeting the needs of our customers while also implementing measures to ensure our employees are safe and healthy.
We have added CDC-recommended cleaning measures targeting high-traffic areas to our current cleaning protocol at all of our business segments – Medicine Man Technologies, Success Nutrients and The Big Tomato.
Employees have been provided CDC guidelines about the importance of proper handwashing techniques. Best practices in virus prevention have also been shared, including the need to cover coughs and sneezes and most importantly, to stay home if they or someone in their household are feeling sick.
All of our employees have been asked to reconsider nonessential domestic and international business travel. Additionally, for employees that are able to work remotely, we have placed restrictions on in-person meetings, company events, and more.
We are encouraging our employees and our customers to follow the CDC’s suggested hygiene practices to reduce the spread of the virus.
Our goal during this time is enact measures to ensure we don’t perpetuate the spread of the virus while minimizing the impact to our customers. Medicine Man Technologies is committed to taking care of our employees, our customers and our communities. On behalf of the entire Medicine Man Technologies team, thank you for the opportunity to serve you.
Thank you,
Justin Dye
Chief Executive Officer, Medicine Man Technologies
Ready for the bigtime?
We are 7-14 days away from earnings. Will we finally turn the corner and hit the big leagues? All depends on the Southeast Edibles having some real sales. If so, we could see a blast off!
Fingers crossed for good news. Good luck to all.
This is huge news. Unfortunately the only disappointment is the price share we are at now due to the Coronavirus and surprising announcement that Andy left the company. We were probably all hoping that the share price would have been in the $4.00 - $5.00 range to being the blastoff point and the market not in its current swoon mode. Anyway, we have something positive to build off of and when the Coronavirus issue gets settled we should be in great shape.
Hang in there and wishing everyone good health to you and your families and that we get past this health crisis soon.