In the cannabis space this week, one Canadian province released data showing how marijuana operations in the region have fared over the last year. 

Meanwhile, a well-known executive who was fired last year from one of the cannabis industry’s major companies has now lost his job at another business.


Read on for a closer look at some of the biggest cannabis news over the last five days.

OCS shares stats from first year of legalization

The Ontario Cannabis Store (OCS) published a report this week on the province’s first full year of legal cannabis operations. It lays out sales figures, consumer trends and pricing information.

In the Monday (June 8) report, the OCS states that 35.1 million grams of cannabis were sold for the reporting period, which runs from April 1, 2019, to March 30, 2020; that’s the first full fiscal year since legalization for the OCS. The total value of sales for the province came in at just over C$385 million.

A key complaint about the Ontario cannabis market from experts as well as marijuana companies has been the lack of stores — speaking to the Investing News Network recently, Rishi Malkani, cannabis practice leader at Deloitte Canada, pointed to a lack of retail operations in Ontario as well as Quebec, saying that both key provinces had under 25 stores as of January.

The OCS report indicates that number of stores in Ontario has grown substantially since that time. As of the end of March, 53 retail stores existed in the province, and that number had risen to 87 at the time the document was issued. The OCS, which supplies the province’s stores and is its only online retailer, attributes the increase to a switch to open allocation for licensing in its third fiscal quarter.

In terms of consumer trends, the OCS notes that dried flower emerged as the clear bestseller in the province, making up 79 percent of sales by volume; that said, the report does point out that dried flower was the product that was predominantly available. It also states that while Cannabis 2.0 products have so far “sold very well,” it’s too early to gauge what will happen long term.

Notably, the document indicates that Ontario’s share of the illegal market stands at only 19 percent, meaning that 81 percent of cannabis sales in the province are still illegal. The OCS describes the illegal market as “organized and persistent,” but hopes that a new pricing structure that reduces the median price for dried flower by 25 percent will improve the situation.

Bruce Linton loses job at Vireo Health

Bruce Linton, co-founder and former CEO of Canopy Growth (TSX:WEED,NYSE:CGC), has been ousted from his position at Vireo Health International (CSE:VREO,OTCQX:VREOF).

In a press release on Monday, Vireo terminated its employment agreement with Linton on a without-cause basis, saying that he would immediately be losing his position as executive chairman. On Friday (June 12), Linton also resigned from the company’s board of directors.

Speaking to BNN Bloomberg, Linton suggested that his comments to the company after its most recent financing may have soured their relationship and led to the dismissal.

“I coordinated financing with the company. It closed in March, I participated in it and perhaps my demanding nature was accelerated because of those events,” he told the news outlet.

Linton had been at Vireo since last November, and was fired from Canopy Growth last July. He has said that his termination from Canopy was related to a C$5 billion investment in the company from major stakeholder Constellation Brands (NYSE:STZ) — according to Linton, Constellation “wanted a different chair and a different co-CEO.”

Though his work at Vireo has come to an end, Linton appears to have a lot going on. He was in the news recently due to the initial public offering of Collective Growth (NASDAQ:CGROU), a new “blank check” operation that plans to focus on the US cannabinoid market. BNN Bloomberg also notes that he will be behind a new Dublin-based investment fund called Oskare Capital.

Cannabis company news

As is often the case, much cannabis company news this week centered on quarterly results, but a few other firms had different announcements to share with investors.

  • HEXO (TSX:HEXO,NYSE:HEXO) announced its latest quarterly results, reporting net revenue of C$22.1 million, up 30 percent quarter-on-quarter. The company also cut its adjusted EBITDA loss in half from the previous quarter — it came in at C$4.3 million, down from C$8.5 million. HEXO expects to achieve positive adjusted EBITDA in the first half of the 2021 fiscal year.
  • Also releasing quarterly results was Indiva (TSXV:NDVA,OTCQX:NDVAF), which announced record revenues for the period of C$2 million. Its adjusted EBITDA loss came in at just under C$2 million. Sales of the company’s Bhang chocolate products came to C$1.6 million, net of excise taxes, and Indiva said they lead the edibles category in multiple Canadian provinces.
  • Organigram Holdings (TSX:OGI,NASDAQ:OGI) signed a multi-year dried flower supply deal with Israeli medical cannabis producer Canndoc. Under the agreement, Organigram will provide 3,000 kilograms of dried flower product to Canndoc by December 31, 2021; it may provide a further 3,000 kilograms during that time period if Canndoc wants.
  • News hit that Tilray (NASDAQ:TLRY) is facing a lawsuit; it alleges that company executives misled shareholders and engaged in insider stock sales both last year and this year. According to Marijuana Business Daily, the complaints relate to Tilray’s deal with Authentic Brands Group. In other Tilray news, this week a lockup of shares sold by the company in March came to an end, prompting questions about whether shareholders might cash out.
  • WeedMD (TSXV:WMD,OTCQX:WDDMF) provided its results for its 2019 fiscal year, saying that net revenue came in at C$20.8 million for the 12 month period; that’s an increase of 162 percent from the previous year. The company reported an adjusted EBITDA loss of C$13.9 million for the year. Also last week, WeedMD completed planting at its 27 acre outdoor field.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Codebase Ventures Inc. (“Codebase” or the “Company”) (CSE:CODE)(FSE:C5B)(OTCQB:BKLLF) announces it has completed a first closing of a non-brokered private placement of up to $2,000,000. The Company accepted subscriptions for 13,740,000 units at a price of $0.05 per unit, for gross proceeds of $687,000. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at $0.075 for a period of two years from the date of closing, subject to the option of the Company to accelerate the expiry date in the event that its shares trade at $0.15 or more for 10 consecutive days

The Company paid $18,000 in cash and issued 160,000 warrants on the same terms as noted above to qualified finders. Securities issued pursuant to this tranche are subject to trading restrictions until April 5, 2021. The Company is expecting to complete the financing by December 16, 2020. Proceeds will be used for working capital and to fund future investments.

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Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”), announces that further to its press release dated December 3, 2020, the TSX Venture Exchange has approved the repricing of 19,405,804 warrants of the Company that were originally issued on July 27, 2018, to $0.10. These warrants are set to expire on December 31, 2020.

For anybody wishing to exercise these Warrants, please contact the Chief Executive Officer, Terry Donnelly at the particulars below.

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Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN), Aurora Cannabis (NYSE: ACB) (TSX: ACB), and HEXO Corp. (NYSE: HEXO)

Cannabis leaders are focusing on innovation in premium branding, global expansion, and tight operational execution in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders:

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TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce that it has closed the 2nd and final tranche of its Unit financing. In connection with the closing, the Company issued 1,356,873 Units at a price of $0.55 per Unit, for gross proceeds of $746,280.15. Each Unit consists of one (1) common share and one (1) warrant. Each warrant entitles the holder to purchase one common share of the Company, at an exercise price of $0.75 per share, for a period of two years from the date of issuance. The warrants are subject to an acceleration right that allows the Company to give notice of an earlier expiry date if the Company’s share price on the CSE (or such other stock exchange the Company’s shares may be trading on) is equal to or greater than $1.25 for a period of 20 consecutive trading days. Finder’s fees of $42,542, 3,200 Finder’s shares and 80,550 Finder’s warrants were issued in connection with finder’s fees payable.

In total, the Company raised gross proceeds of $1,757,180 and issued 3,194,873 Units.

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 Sweet Earth Holdings Corp. (CSE: SE) (FSE: 1KZ1) (OTCQB: SEHCF) (“Sweet Earth” the “Company”) is pleased to announce that it has received full Depository Trust Company (“DTC”) eligibility in the United States. On October 20, 2020, Sweet Earth announced that its shares had been listed on the United States’ Over-The-Counter Bulletin (“OTCQB”) under the ticker SEHCF.

DTC status means that Sweet Earth shares are now eligible to be transferred between brokerage accounts within the United States and significantly augments the ease in which American-based investors are able to trade Sweet Earth shares.

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