Category: Cannabis

GrowGeneration Reports Record Fiscal Year 2019 Revenues of $80 Million
DENVER, Jan. 8, 2020 /CNW/ – GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen” or the “Company”), the largest chain of specialty hydroponic and organic garden centers, with currently 26 locations, today reported record revenue of $80 million for the 2019 fiscal year end.

2019 Financial Highlights:

• Revenue of $80.0 million, up $51.0 million or 176% versus 2018.
• Revenue for Q4 2019 was $26 million versus $9.1 million for Q4 2018.
• Same store sales were up 62% for Q4 2019 versus Q4 2018.
• Same store sales were up 36% for fiscal year 2019 versus 2018.
• Total new store and acquired stores for 2019 totaled 11 new store locations.
• Fully deployed ERP platform across all locations.
• Up listed to the Nasdaq Exchange.

The Company’s fiscal year ending 2019 record financial results reflect our continued focus on revenue growth and EBITDA expansion. Revenue was up 176% year over year to $80 million. Our same store sales were up 62% Q4 2019 versus Q4 2018. For the full year, same store sales were up 36% versus full year 2018. Our online business is now branded GrowGen.Pro and is being integrated as part of our omni channel strategy with all our stores locations, ” Order online and Pickup in store”.

GrowGeneration Management Corp, our commercial division, is now approaching a $20 million segment of the business. The Company completed the rollout of its new ERP platform and all of our store operations are on our ERP platform. The GrowGen ERP platform is designed to lower costs, improve departmental productivity, integrate our online and store sales and supply channels and provides forecasting and reporting tools.

“The 11 newly acquired stores and new store openings are all performing better than expected and have been successfully integrated into the operations of the overall Company. The Company is also investing in opening new store locations in markets that include St. Louis, Kansas City, Phoenix, Miami, Los Angeles and Chicago. In addition to the new store openings, the Company is working on several acquisitions that are expected to close in the first part of 2020. We are now trading on the NASDAQ exchange and proudly rang the closing bell on Dec 30, 2019. Guidance for 2020 will be released as part of our 2019 year-end report in the first quarter 2020.”

About GrowGeneration Corp.:

GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 26 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 3 locations in Maine and 1 location in Oregon. GrowGen also operates an online superstore for cultivators, located at HeavyGardens.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all the major states in the U.S. and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. By 2020 the market is estimated to reach over $23 billion with a compound annual growth.

Connect:

Website: www.GrowGeneration.com
Facebook: GrowGenerationCorp
Twitter: @GrowGenOK
Instagram: @growgen

Original press release

Harvest Files Suit Against Falcon International, Inc.

PHOENIX, Jan. 7, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced that yesterday Harvest filed suit against Falcon International, Inc. (“Falcon”) requesting termination and rescission of the Merger Agreement (“Transaction”) and return of money Harvest paid to Falcon under the Merger Agreement. As detailed in the Complaint, filed in U.S. Federal Court, District of Arizona, Harvest alleges that Falcon has failed to meet its legal obligations in multiple ways, including the failure to provide auditable financial records, which precludes Harvest from moving forward with the Transaction.

While Harvest remains committed to the long-term potential of legal cannabis sales in California, current market conditions make it difficult to operate profitably there today. If the Transaction does not close for any reason, including those enumerated in the Complaint, the company plans to remove the contribution attributable to Falcon from its 2020 pro forma guidance. Harvest expects overall 2020 pro forma profitability would improve without the revenue contribution from Falcon.

About Harvest Health & Recreation Inc.

Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have one of the largest footprints in the U.S., with rights to operate more than 210 facilities, of which approximately 130 are retail locations, and more than 1,700 employees across 18 states and territories. Since 2011, the company has been committed to expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest’s mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world. We hope you’ll join us on our journey: https://harvesthoc.com

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Original press release

TOWSON, Md., Jan. 7, 2020 /PRNewswire/ — United Food and Commercial Workers Local 27 (UFCW27) and Vireo Health International, Inc. (“Vireo” or “the Company”) (CNSX: VREO;OTCQX: VREOF), today announced that workers at its wholly-owned subsidiary, MaryMed, LLC  (“MaryMed”), voted overwhelmingly to ratify a Collective Bargaining Agreement and officially join the ranks of UFCW Local 27.

The three-year agreement marks the first medical cannabis union contract ratified in the State of Maryland. The agreement will cover employees working in Vireo’s state-of-the-art 20,000 square-foot Hurlock, Maryland-based manufacturing facility, which supplies precisely formulated medical cannabis products to third-party dispensaries throughout the state.

“We are excited to welcome MaryMed employees into UFCW27,” said Jason Chorpenning, President of UFCW Local 27. “This contract is an important win for the future of all workers in the cannabis industry and I am very proud of the role that UFCW has played in helping to bring collective bargaining to the cannabis industry. I want to thank our union bargaining committee led by Nelson Hill and Vireo Health for their hard work to create good-paying jobs for Maryland residents.”

The agreement includes several provisions that will benefit MaryMed’s employees. The contract provides employees with competitive starting wages, access to affordable and high-quality healthcare, guaranteed annual wage increases, and a generous paid time off program. It also includes comprehensive safety provisions and anti-discrimination language and establishes sound procedures for grievance and arbitration matters.

As a ‘people-first’ business, Vireo is deeply committed to our employees and we are proud to be a union employer in Maryland and beyond.

Our workforce is key to our company’s success and we look forward to partnering with UFCW to support legislation, such as legalizing adult-use cannabis, that will help create thousands of new middle-class jobs across Maryland.

About UFCW Local 27

UFCW Local 27 represents approximately 20,000 members in Maryland, Delaware, Pennsylvania, Virginia and West Virginia. Our mission is to secure a living wage, good benefits and a positive work environment for our members; to represent them so that all workers have the opportunity to reach the American Dream. We provide a voice for working men and women. For more information about UFCW Local 27, www.ufcw27.org.

About MaryMed, LLC

MaryMed, LLC is a licensed medical cannabis company headquartered in Hurlock, MD, where the Company operates a 20,000 square foot cultivation and processing facility. MaryMed is a subsidiary of Vireo Health International, Inc. (“Vireo”). Vireo’s mission is to build the cannabis company of the future by bringing the best of medicine, engineering and science to the cannabis industry.  Vireo’s physician-led team of more than 400 employees provides best-in-class cannabis products and customer experience. For more information about MaryMed, please visit www.vireohealth.com/md.

Original press release

LiteBud Products Designed for Cannabis Consumers Seeking a More Consistent, Controlled, and Mild Experience

MINNEAPOLIS, Jan. 6, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO,OTCQX: VREOF), a leading physician-led, science-focused multi-state cannabis company, today announced the launch of LiteBud, a patent-pending line of consistently formulated, lower-Tetrahydrocannabinol (THC) cannabis products that are designed to meet the needs of cannabis consumers seeking a more consistent, controlled and mild experience.

Research studies conducted at the University of Mississippi found that the THC potency of cannabis plant material has more than quadrupled over the past generation. In 1995, the average THC potency was approximately 4%, increasing to 8.9% in 2008, and then again to 17.1% in 2017. Today, most flower available in medical and adult-use markets is cultivated to maximize potency and sophisticated techniques often yield THC levels that exceed 25%, in contrast to LiteBud products which contain lower THC levels, ranging from 4 to 10%.

Vireo is committed to creating innovative products that reflect the needs of all cannabis consumers. LiteBud offers patients a lower-THC product line with carefully controlled cannabinoid levels to help prevent the unpleasant side effects many experience with high-THC products. In a sense, this is your father’s cannabis since its cannabinoid levels are more reminiscent of the type of flower that was widely used a generation or two ago.

The first LiteBud product offering is a pre-roll made from slow-cured dry flower using a proprietary process to ensure lower levels of THC. LiteBud pre-rolls are the first product of its kind sold in Maryland’s growing medical cannabis market.

Our LiteBud brand strategy is informed, in part, by the success of the light beer market. As the U.S. cannabis market matures and serves a broader segment of the adult population, we believe that there will be a significant consumer demand for low-THC products.

LiteBud pre-rolls are currently available at dispensaries throughout the State of Maryland. Later this year, Vireo plans to offer LiteBud products in other key markets in which it operates. Learn more about the brand by visiting www.litebud.com.

About Vireo Health International, Inc.

Vireo Health International, Inc.’s mission is to build the cannabis company of the future by bringing the best of medicine, engineering and science to the cannabis industry. Vireo’s physician-led team of more than 400 employees provides best-in-class cannabis products and customer experience. Vireo cultivates cannabis in environmentally friendly greenhouses, manufactures pharmaceutical-grade cannabis extracts, and sells its products at both company-owned and third-party dispensaries. The Company currently is licensed in eleven markets including Arizona, Maryland, Massachusetts, Minnesota, New Mexico, New York, Nevada, Ohio, Pennsylvania, Puerto Rico, and Rhode Island. For more information about the Company, please visit www.vireohealth.com.

Original press release

Harvest Announces Potential Acquisition of Interurban Capital Group

PHOENIX, Jan. 6, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced that negotiations to acquire Interurban Capital Group, Inc., the owner and operator of Have a Heart CC (“Have a Heart”), have reached a stage that require disclosure. Preliminary terms contemplate an acquisition price of approximately $87.5 million in Harvest stock and assumption of debt convertible into 205,594 multiple voting shares of Harvest stock, subject to applicable Canadian securities laws. Have a Heart assets include 11 operating dispensaries in California, Washington and Iowa and licenses for seven retail locations in California.

Prior to completion, the potential acquisition remains subject to, among other things, due diligence, the execution of definitive agreements, the receipt of regulatory approvals and the satisfaction or waiver of closing conditions customary for a transaction of this nature.

About Harvest Health & Recreation Inc.

Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have one of the largest footprints in the U.S., with rights to operate more than 210 facilities, of which approximately 130 are retail locations, and more than 1,700 employees across 18 states and territories. Since 2011, the company has been committed to expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest’s mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world. We hope you’ll join us on our journey: https://harvesthoc.com

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Original press release

by J. Phillip

With so much going on with marijuana stocks, only a few companies really have what it takes to succeed. These marijuana stocks are working to bring innovation to the market and create a name for themselves in the process. By producing massive quantities of cannabis or new groundbreaking products, some pot stocks have been able to climb to the upper echelons of the cannabis industry. Of course, there are no guarantees for success in any market, and pot stocks are no exception.

With so many marijuana stocks to watch, how many pot stocks in the new year will make it amongst the high level of competition? The short answer is that there is no real way to predict the future. What we can do, however, is use the tools we have at our disposal such as research. With information more widely available than ever via the digital space, researching pot stocks has never been easier. With ample research in one’s hands, discovering which pot stocks to watch can be done in a simple fashion.

A Marijuana Stock Working on Its Long Game

4Front Ventures (FFNTF Stock Report) (FFNT) is one of the leading, forward-thinking pot stocks in the industry in the present day. The company has made sure it’s long term goals are achievable with one key factor in mind. That is, having a solid team behind them that it has invested a large amount of capital into.

With this strategic asset base, the company has continued to attract some of the leading talents in the pot stock market. Additionally, with such a valuable team at hand, the company has been able to capitalize upon all of the opportunities that it has been afforded. This means that throughout its subsidiaries, the company has a plan and the ability of action in its bag.

Recently, the company announced that it has appointed Kathi Lentzsch to its board of directors. Additionally, it also has added Betty Aldworth, the executive director for Students for Sensible Drug Policy to its board. Josh Rosen, CEO of 4Front stated that “I’m excited to see our new board taking shape with the additions of Kathi Leentzsch and Betty Aldworth, two leaders in their respective domains that bring strong experience and perspective, as well as greater independence to our governance and team.”

Marijuana Stock To Watch: A Vertical Integrated Multi-State Operator

Planet 13 Holdings (PLNHF Stock Report) (PLTH) is one of the leading vertical companies in the cannabis industry. The company recently opened its flagship store right off the Las Vegas strip. With this, the store known as the SuperStore spans as much as 112,000 square feet. Within the appropriately titled store, the company will house a pizzeria, coffee shop and other amenities for those wishing to stop in.

The company not only owns this store, but it also has used the store to embark on a new and innovative way of going about the cannabis industry. With this groundbreaking location, the company has been able to secure quite a heavy bit of foot traffic. As it moves into the next year, the hopes are that Planet 13 Holdings can continue its steady movements toward the top of the pot stock market.

Disclaimer: Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and 4Front Ventures Corp (FFNT)(FFNTF), Midam is being paid $20,000 for coverage on 4Front Ventures Corp (FFNT)(FFNTF), for a period from November 27, 2019 to January 7, 2020. We may buy or sell additional shares of 4Front Ventures Corp (FFNT)(FFNTF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about 4Front Ventures Corp (FFNT)(FFNTF). For Full Disclaimer Click Here 

Exclusive article by Alan Brochstein, CFA

After beginning the year with a 57.4% gain in Q1 and then dropping for eight consecutive months, the Global Cannabis Stock Index ended December with a big jump that enabled the index to gain 1.1% for the month, closing at 42.20:

The index, which had 44 qualifying members during the month following the quarterly rebalancing at the end of September, declined 54.9% in 2018 and lost 34.1% in 2019:

The decline left the index at levels not seen in over three years, down almost 77% from its early 2018 closing high at 180.02 but up 9.3% from its closing low on December 18th at 38.62:

5 names gained more than 20% during December:

Origin House’s strength was driven by the rally in Cresco Labs, with which it is merging in January in an all-stock deal, compounded by a narrowing of the discount to the price implied by the transaction based upon the price of Cresco Labs from 16% to just over 5%.  Sundial, which conducted its IPO at $13 during the summer, bounced off of a post-IPO low set in early December at $1.88. Cresco Labs rallied ahead of legalization in Illinois and its pending acquisition of Origin House. The company also raised $50 million in an additional sale/leaseback transaction announced during the month. Harvest Health & Recreation surged in the final days of the month after it priced a large debt offering. Planet 13 was a top performer for the second consecutive month.

5 names fell by more than 20% during December:

Elixinol’s weakness was due to competitive pressures in the industry as well as the resignation of its founder, Paul Benhaim, who had recently moved into the role of Chief Innovation Officer after having served as CEO. HEXO crushed its stock with a capital raise the day after Christmas that was significantly below the prior closing price. Emerald Health also suffered from a capital raise that pressured its stock along with ongoing concerns regarding its cannabis joint venture, Pure Sunfarms. Charlotte’s Web and CV Sciences, like Elixinol, continued to see pressure on their stocks after a slowdown in growth for the companies and the overall CBD sector became apparent in November during the financial reporting season.

We have also published separate reviews of the performance of the Canadian LP Index and the American Cannabis Operators Index:

Using data from 12/20, we have rebalanced the index, effective as of 12/31. As a result of lower trading volumes, we have slightly reduced the minimum average daily value traded from $800K to $500K, our first change in more than a year. The number of names in the index in January will be 41, as we have removed nine names and added six new ones. Departing the index due to no longer meeting price or volume criteria are Canopy Rivers (TSX:  RIV) (OTC: CNPOF), Elixnol Global (ASX: EXL) (OTC: ELLXF), Emerald Health (TSXV: EMH) (OTC: EMHTF), Fire & Flower (TSX: FAF) (OTC: FFLWF), Flowr (TSXV: FLWR) (OTC: FLWPF), Khiron (TSXV: KHRN) (OTC: KHRNF), Namaste Technologies (TSXV: N) (OTC: NXTTF) and PharmaCielo (TSXV: PLCO) (OTC: PCLOF). We have also removed Origin House (CSE: OH) (OTC: ORHOF) ahead of its pending acquisition by Cresco Labs (CSE: CL) (OTC: CRLBF).

Joining the index are Akerna (NASDAQ: KERN), Green Growth Brands (CSE: GGB) (OTC: GGBXF), GrowGeneration (NASDAQ: GRWG), Liberty Health Sciences (CSE: LHS) (OTC: LHSIF), TerrAscend (CSE: TER) (OTC: TRSSF) and Vireo Health (CSE: VREO) (OTC: VREOF).

We will summarize the index performance again in a month. You can learn more about the index members and the qualifications for inclusion by visiting the Global Cannabis Stock Index. A more complete analysis of the index is available at 420Investor.com. Be sure to bookmark the page to stay current on cannabis stock price movements within the day or from day-to-day.

New Cannabis Ventures maintains six proprietary indices designed to help investors monitor the publicly-traded cannabis stocks, including the Global Cannabis Stock Index as well as the Canadian Cannabis LP Index and its three sub-indices. The sixth index, the American Cannabis Operator Index, was launched at the end of October last year and tracks the leading cultivators, processors and retailers of cannabis in the United States.

Company Served 3,145 Recreational Customers on First Day

CHICAGO, January 2, 2020–(BUSINESS WIRE)–Cresco Labs (CSE:CL) (OTC:CRLBF) (“Cresco” or “the Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that the Company served 3,145 people on New Year’s Day at its five Sunnyside* Dispensaries located in Lakeview, Elmwood Park, Champaign, Buffalo Grove and Rockford, Illinois. Sunnyside* also sold 9,258 cannabis products, including Cresco’s house of brands and items from other Illinois suppliers, with an average ticket price totaling $135.

Customers began to form lines outside Sunnyside* locations as early as 8 PM on New Year’s Eve, and lines wrapped around the buildings throughout the day as recreational customers showed their excitement to be part of this historic day. The dispensaries opened at 6 AM to immediately start serving recreational customers, with the first sale in the state of Illinois taking place shortly thereafter at Sunnyside* Lakeview. Jacqueline Ryan from Forest Park was the first customer to purchase adult-use cannabis, followed by siblings Elise and Aaron Swopes, two participants in Cresco’s Chicago incubator program, which is part of the Company’s SEED (Social Equity and Educational Development) initiative, and Illinois Lt. Gov. Juliana Stratton, who played a critical role in shaping the state’s cannabis legislation.

We’re ecstatic for our Sunnyside* dispensaries to begin serving recreational customers on such a historic day that launches a new era of cannabis and the development of an industry that will bring greater justice, social equity and business ownership opportunities throughout the state.

With 13 million residents and 100 million annual tourists, Illinois is predicted to be one of the largest recreational cannabis markets in the United States. Cresco is uniquely positioned in the supply-constrained state, with permission for the largest cultivation footprint at 630,000 square feet and ten retail dispensaries, including three in high traffic areas in the city of Chicago.

Joe Caltabiano, Cresco Labs President and Co-founder, added, “We’re thrilled to be part of this historic day and to witness firsthand so much excitement from people on the first day of legal cannabis sales. Our dispensaries served thousands of customers on day one by educating new cannabis consumers, making product recommendations and making sure they had a seamless shopping experience. With five newly re-concepted Sunnyside* locations and an additional five dispensaries opening soon in high profile locations such as one next to Wrigley Field and two in Chicago’s downtown Central District, we expect to serve thousands more customers in response to strong demand. Our Sunnyside* concept is designed to move traffic efficiently, so despite the fact that long lines will likely continue in the first few days of adult-use legalization, we are positioned to ensure that each of our customers gets only the best possible service and the products they are looking for. Cresco is already the leader in Illinois, and we expect to be able to maintain this leadership position as the recreational cannabis market grows, contributing solidly to our overall revenue and our profitability.”

Media Press Kit:

• Sunnyside Lakeview Jan. 1 Adult-Use Cannabis First Sale in IL Photography:
• Sunnyside Lakeview Jan. 1 Adult-Use Cannabis First Sale in IL Video Footage:
• Cresco Labs—Cannabis Industry Broll:

About Cresco Labs:

Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco has launched the industry’s first national comprehensive Social Equity and Educational Development (SEED) initiative designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com.

Original press release