Posted by AGORACOM-JC
at 7:30 PM on Wednesday, November 18th, 2020
Announced that it has closed the 1st tranche of a Unit financing. In connection with the closing, the Company issued 1,838,000 Units at a price of $0.55 per Unit, for gross proceeds of $1,010,900.
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.
Vancouver, British Columbia–(November 18, 2020) – TransCanna Holdings Inc.(CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company“) is pleased to announce that it has closed the 1st tranche of a Unit financing. In connection with the closing, the Company issued 1,838,000 Units at a price of $0.55 per Unit, for gross proceeds of $1,010,900. 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. 63,040 Broker’s warrants were issued in connection with finder’s fees payable and in lieu of 8% cash finder’s fees, 63,040 Broker’s Units were issued.
The private placement is subject to the approval of the Canadian Securities Exchange (“CSE”) and the securities will be subject to a four-month hold period under securities laws. The Company intends to use the net proceeds from the private placement for working capital purposes.
The Company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons and in a time frame consistent with usual market practices for transactions of this nature.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed company building Cannabis-focused brands for the California lifestyle, through its wholly-owned California subsidiaries.
On behalf of the Board of Directors Bob Blink, CEO 604-349-3011
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Posted by AGORACOM
at 8:18 AM on Wednesday, November 18th, 2020
Generates 21.2% Sequential Revenue Growth, with Record Gross Revenues of $19.6 Million and Continued Positive Adjusted EBITDA (1) of $4.5 million
Reports Strong Combined Gross Margin of 54.7% (1) Driven by Improved Harvest Yields and Higher Wholesale Volumes
Expects Full Year Gross Revenues of Approximately $61 Million – $63 Million with Adjusted EBITDA of 8-10% (1)(2)
OAKLAND, CA and TORONTO, Nov. 18, 2020 /CNW/ – Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR) (OCTQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today reported its financial results for the period ending September 30, 2020 (“Q3 2020”). The Q3 2020 financial report and corresponding management’s discussion and analysis (collectively the “Q3 Filings”) are available for download from the Company’s investor website,investharborside.com, and on the Company’sSEDAR profile. Unless otherwise indicated, all dollar amounts in this press release are in U.S. dollars.
Management Commentary
“We’ve implemented strong operational improvements that have continued our progress towards long term profitability and sustained growth. Harborside continues to be one of the leaders in the Northern California market,” said Peter Bilodeau, Chairman, and interim Chief Executive Officer. “As our production capacity is expected to ramp up in early 2021, following the completion of the planned upgrades at our Salinas greenhouse facility, we expect to be well-positioned to accelerate our growth and continue to gain wholesale market share. I’m thrilled with how far Harborside has come this year and look forward to further growth in 2021.”(2)
Q3 2020 Financial Results and Highlights (2)(3)
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Retail Revenues
$10,681,897
$10,940,143
$10,181,471
$9,511,221
Wholesale Revenues(a)
$8,890,723
$5,208,439
$4,456,775
$2,185,701
Total Gross Revenues(a)
$19,572,620
$16,148,582
$14,638,246
$11,696,922
Retail Gross Profit(e)
$5,353,429
$5,601,565
$5,219,890
$4,903,947
Wholesale Gross Profit(a)(e)
$5,360,764
$2,435,952
$787,964
-$1,373,186
Total Gross Profit(a)(e)
$10,714,193
$8,037,517
$6,007,854
$3,530,761
Retail Gross Margin(b)(e)
50.10%
51.20%
51.30%
51.60%
Wholesale Gross Margin(a)(e)
60.30%
46.80%
17.70%
-62.80%
Total Gross Margin(e)
54.70%
49.80%
41.00%
30.20%
G&A/Professional Fees(c)(d)
$6,783,987
$6,764,781
$5,786,573
$7,621,971
Adjusted EBITDA(e)
$4,473,046
$642,025
$431,562
-$2,796,178
NOTES:
a. Not including excise taxes or biological asset adjustments.
b. Retail gross margin in Q1 2020 and Q2 2020 are slightly affected by additional expenditures on personal protective equipment and other safety measures due to the COVID-19 pandemic. Retail gross margin in Q2 2020 and Q3 2020 include additional pay for the Company’s front line workers and expenses relating to the impacts of the civil unrest in the Bay Area to certain of the Company’s retail stores.
c. Professional Fees for the fourth quarter of 2019 include approximately $953,000 in one-time fees and accruals for legal matters
d. Professional Fees for Q2 2020 and Q3 2020 include approximately $977,000 and $1,115,000, respectively, in one-time costs relating to the audits and restatements of certain of the Company’s previous financial statements.
e. This is a non-IFRS reporting measure. For a reconciliation of this to the nearest IFRS measure, see “Use of Non-IFRS Measures” and “Non-IFRS Measures” in the Company’s management discussion and analysis for September 30, 2020.
Q3 2020 Financial Summary
During Q3 2020, Harborside generated total gross revenues of approximately $19.6 million. This represented 21.2% sequential growth over the second quarter of 2020 (“Q2 2020”) and a 42.9% year-over-year increase when compared to the approximately $13.7 million of gross revenues reported in the period ending September 30, 2019 (“Q3 2019”). Combined gross profit before excise taxes and adjustments for biological assets was approximately $10.7 million, an 85.8% year-over-year increase as compared to the $5.8 million reported in Q3 2019. On a year over year basis, combined gross margins increased from 42.1% in Q3 2019 to 54.7% in Q3 2020(1).
Harborside’s wholesale operations reported gross wholesale revenues of approximately $8.9 million, representing 70.7% sequential growth compared to Q2 2020 and a year-over-year increase of 169.4% as compared to the approximately $3.3 million in gross revenues reported for Q3 2019. The year-over-year increase in gross wholesale revenues was primarily due to improved harvest yields and production of premium flower, higher sales volumes, and higher average prices per pound at the Company’s 47-acre integrated production campus in Salinas, California (the “Salinas Facility”). As compared to gross wholesale revenues, wholesale gross margins increased from -22.1% in Q3 2019 to 60.3% in Q3 2020(1).
The Company’s retail operations generated revenues of approximately $10.7 million, a 2.8% increase as compared to the approximately $10.4 million realized in Q3 2019, with gross margins improving from 48.5% to 50.1% on a year-over-year basis, despite increased costs for safety and staffing related to COVID-19 and inventory losses experienced during the civil unrest that occurred in the Bay Area.(1) The year-over-year increase in retail revenue was driven primarily by the Company’s enhanced merchandising and pricing initiatives which resulted in, amongst other things, improved product mix, selected pricing changes and higher sell-through of internally produced products. Across Harborside’s retail stores in California, the Company’s branded products represented from 9 to 14 of the 25 top-selling SKUs in Q3 2020.
Total operating expenses for Q3 2020 were approximately $7.8 million, including $1.15 million in one-time costs related to the audit and restatement of prior year financials. This was a 7.5% year-over-year decrease when compared to approximately $8.5 million of costs incurred in Q3 2019. The year-over-year decrease in operating expenses is primarily related to a decrease in general and administrative expenses of $1.1 million to $4.1 million as compared to $5.2 million in Q3 2019, a decrease in allowance for credit losses of $0.3 million, and a decrease in write-downs of receivables, investments and advances of $1.3 million, as no impairments were recorded on any of the Company’s investments in Q3 2020.
During Q3 2020, the Company also recorded an income tax provision of $1.8 million, compared to $1.3 million in Q3 2019, based on estimated federal income taxes payable at period-end.
Operating Income for Q3 2020 was approximately $0.8 million, compared to an operating loss of approximately $3.6 million for Q3 2019. Net loss and comprehensive loss was $2.4 million, compared to a net loss and comprehensive loss of $1.9 million in Q3 2019, a 24.2% decrease on a year-over-year basis. The year over year decrease was due primarily to additional income tax provisions and related interest expense booked during Q3 2020.
Adjusted EBITDA(1) for Q3 2020 was approximately $4.5 million, compared to a negative EBITDA(1) of approximately $0.9 million for Q3 2019, with the year over year increase being driven largely by improved operating efficiencies and headcount reductions across the Company. See “Non-IFRS Financial Measures, Reconciliation, and Discussion.”
Q4 2020 and Full Year Expectations (2)(4)
The Company expects Q4 2020 gross revenues to follow a more historically typical seasonal pattern, with lower flower production and wholesale revenues, resulting in total combined gross revenues of $11 million to $12.5 million for the fourth quarter, with EBITDA(1) for the quarter close to breakeven. For the full year ended December 31, 2020, the Company expects gross revenues in the range of approximately $61 – $63 million, with Adjusted EBITDA(1) for the year in the range of 8 – 10% of revenues.
Liquidity and Cash Balance (2)(3)
As of September 30, 2020, Harborside had approximately $13.3 million in cash. The increase in cash balance since the second quarter of 2020 included a delay in payment of approximately $1.6 million of sales taxes that were due to the state of California. Payment of these taxes was postponed by the state as part of their COVID-19 business relief program and, in accordance with state guidelines, the funds were ultimately remitted at the end of October 2020.
Recent Operational Highlights
Wholesale Operations: Harborside recently announced planned cultivation facility upgrades at the Salinas Facility. The planned upgrades include, among other things, the installation of blackout curtains and supplemental LED grow lights at the Salinas Facility. Following the successful completion of these upgrades, the Company expects an approximately 50% increase in production, an expected approximately 10% increase in bulk wholesale revenue capacity, and an approximately 7% increase in the total productive capacity, on an annualized basis(2)(4). The upgrades are expected to be completed within the first quarter of 2021(2).
In furtherance of its brand strategies, Harborside announced that two of its award-winning in-house brands, Harborside Farms and Key, introduced new product offerings for the market. Key has added ‘Key Mini Pre-Rolls’, a pack of seven 0.5g strain specific pre-rolls, to its product suite. These mini pre-rolls use flower that is sustainably grown in Harborside’s state of the art greenhouses using proprietary techniques. Key also recently offered a new seasonal SKU, ‘Limited Edition Skeleton Key Mini Pre-Rolls’, a nighttime blend of G4 OG and Gelato 33 packed in seven 0.5g mini pre-rolls. Harborside Farms has also added ‘Harborside Farms Quarter Ounces’, which offers strain-specific and single-origin flower from Harborside Farms. The Company also recently commenced sales of clones grown at its Salinas Facility at all Harborside branded retail locations, including Desert Hot Springs.
Capital Markets: During Q3 2020, the Company commenced trading on the OTCQX under the ticker symbol of “HBORF” and, subsequent to the quarter end, Harborside received depository trade clearance (DTC) eligibility.
Acquisitions: Subsequent to Q3 2020, Harborside announced it had executed a definitive agreement with FGW Haight, Inc. (“FGW”) to acquire majority ownership FGW, which holds a dispensary license in the historic Haight-Ashbury District of San Francisco, where the Company expects to start operations in the second quarter of 2021(2).
Secured Indemnity
On November 17, 2020, the Company and its subsidiaries entered into a guaranty and security agreement to guarantee and secure the obligations of the Company to defend and to indemnify its directors and officers (collectively, the “Secured Indemnity“). The Secured Indemnity is intended to supplement coverage available under existing directors and officers insurance maintained by the Company in order to mitigate concerns about claims and potential claims against directors and officers and whether the available insurance applies to and will satisfy in full such claims and potential claims. The scale and complexity of the Company’s operations in a highly regulated sector requires that the directors and officers managing those operations be committed to the performance of their duties without undue or inappropriate distractions. In management’s view, concerns about claims and potential claims and adequacy of insurance may detract from the performance of the directors and officers involved in the Company’s operations or lead to their resignations, which would disrupt the Company’s business. The Board has therefore determined that it is in the best interests of the Company and its subsidiaries to enter into the Secured Indemnity in order to induce the directors and officers to perform their duties to the Company, provide comfort to the directors and officers involved in the Company’s operations and to encourage their ongoing services.
The Secured Indemnity constitutes a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101“). The Company is relying on the exemptions from the valuation and the minority approval requirements of MI 61-101 provided for in subsections 5.5(a) and 5.5 (b) and subsection 5.7(a) of MI 61-101, respectively, as the Company’s shares are not listed on specified markets and neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Secured Indemnity, in relation to the interested parties, will represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101.
Harborside Inc., a vertically integrated enterprise with cannabis licenses covering retail, distribution, cultivation, nursery, and manufacturing, is one of the oldest and most respected cannabis companies in the world. Founded in California in 2006, Harborside was awarded one of the first six medical cannabis licenses granted in the United States. Today, the company operates three major dispensaries in the San Francisco Bay Area, a dispensary in the Palm Springs area outfitted with Southern California’s only cannabis drive-thru window, a dispensary in Oregon and an integrated cultivation/production facility in Salinas, California. Harborside continues to play an instrumental role in making cannabis safe and accessible to a broad and diverse community of California and Oregon consumers. Harborside is currently a publicly listed company, trading on the CSE under the ticker symbol “HBOR” and the OTCQX under the ticker symbol “HBORF”. Additional information regarding Harborside is available under Harborside’s SEDAR profile atwww.sedar.com.
Posted by AGORACOM-JC
at 7:42 AM on Monday, November 16th, 2020
Announced the appointment of Ms. Jennifer Brown to the Company’s Board of Directors
Vancouver, British Columbia–(November 16, 2020) – TransCanna Holdings Inc.(CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company“) is pleased to announce the appointment of Ms. Jennifer Brown to the Company’s Board of Directors.
Ms. Brown is an Experienced Enterprise Risk Manager, Anti-Money Laundering, Compliance & Fraud Prevention Professional. Ms. Brown has over 15 years managing various organizations’ operations divisions and enterprise risk management programs at various financial institutions. In her roles, Ms. Brown has been responsible for the development and implementation of analytic fiscal reports, policies, and procedures that satisfy compliance requirements and maintaining thorough understanding of state and federal laws and regulations to ensure compliance. Mr. Brown earned a Bachelors’ Degree in Criminal Justice with concentration on Homeland Security from Brandman University and is currently pursuing an MBA in Accounting from National University. Ms. Brown is a member of the Association of Certified Anti-Money Laundering Specialist (ACAMS), California Financial Crimes Investigators Association (CFCIA), Northern California Compliance Roundtable, Sacramento Metro EDGE, and Sacramento Young Professionals (YP).
Ms. Brown has also been appointed a member of the Company’s audit committee.
“We are excited to have Jennifer join the Board of Directors here at Transcanna. She is a great addition to our team and brings a wealth of experience and knowledge to help propel the Company forward,” stated Bob Blink, the Company’s CEO.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed company building Cannabis-focused brands for the California lifestyle through its wholly-owned California subsidiaries.
On behalf of the Board of Directors Bob Blink, CEO 604-349-3011
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Posted by AGORACOM-JC
at 7:26 AM on Thursday, November 12th, 2020
Lyfted Farms has entered into a 5-year agreement with Fresca LLC to promote and co-brand premium indoor cannabis flower
The resulting new retail SKU’s have surpassed several prior sales velocity records for Lyfted Farms
Sales velocity has long been a key indicator for demand and viable results demonstrating the products are well positioned
Vancouver, British Columbia–(November 12, 2020) – TransCanna Holdings Inc. (CSE: TCAN) (GSE: TH8) (“TransCanna” or the “Company”) announces the collaboration of Lyfted Farms with Fresca LLC; breaks sales velocity records.
Lyfted Farms has entered into a 5-year agreement with Fresca LLC to promote and co-brand premium indoor cannabis flower. The resulting new retail SKU’s have surpassed several prior sales velocity records for Lyfted Farms. Sales velocity has long been a key indicator for demand and viable results demonstrating the products are well positioned.
This collaboration highlights the marketplace power of California’s most authentic indoor cultivator combined with the Fresca Brand and distribution channels into the world-famous Cookie’s, Lemonade, and Dr. Greenthumb stores.
Bob Blink, founder of Lyfted Farms and CEO of TransCanna, shares that, “The opportunity to bring Lyfted Farms reputation for consistently high quality indoor cannabis flower into the Fresca Brand and the Cookie’s retail distribution system is exciting and will enable us to showcase the production capacity of the Daly Facility.”
Gilbert Milam Jr., aka “Berner” @berner415, Founder and CEO of Cookie’s, notes “The owners of Fresca helped innovate Bay Area culture when I was growing up through music…when they mentioned to me about starting a cannabis brand…I recommended that they find a quality indoor cultivator and I think Lyfted Farms is the perfect partner for them. We look forward to carrying their brand onto our shelves and watching their Statewide expansion.”
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed, Company building cannabis-focused brands for the California lifestyle through its wholly-owned California subsidiaries.
On behalf of the Board of Directors Bob Blink, CEO 604-349-3011
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs regarding future events of management of the Company. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements referred to herein as “forward-looking statements”, are not historical facts, are made as of the date of this news release and include without limitation estimates and forecasts and statements as to management’s expectations for growth and the commencement of operations of the Company’s Daly facility.
The forward-looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including that operations will commence at the Company’s Daly facility in Modesto, California, as and when expected.
These forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially from any future results, events or developments expressed or implied by such forward-looking statements. Risks and uncertainties associated with the forward-looking information in this news release include, among others, dependence on obtaining and maintaining regulatory approvals, including state, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to complete upgrades to its Daly facility in a timely manner; engaging in activities which currently are illegal under U.S. federal law and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, particularly in California, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth;; reliance on management; and the effect of capital market conditions and other factors (including those related to the COVID-19 pandemic) on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look, except in accordance with applicable securities laws.
Posted by AGORACOM-JC
at 8:15 AM on Tuesday, November 10th, 2020
Announced the launch of its direct to consumer cannabis delivery platform, Dreamy Delivery
Company soft launched Dreamy Delivery to friends and family in the San Francisco Bay Area of Northern California, to ensure a seamless customer experience in early Q4 of 2020
Company hopes to launch Dreamy in Sacramento and the Central Coast of California by late Q4 of 2020 with the ultimate goal of delivering Cannabis statewide
VANCOUVER, BC , Nov. 10, 2020 – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the ” Company “, ” Hollister Cannabis Co. ” or ” Hollister “) a diversified cannabis branding company with products in over 280 dispensaries throughout California , and over 80 dispensaries throughout Arizona , is pleased to announce the launch of its direct to consumer cannabis delivery platform, Dreamy Delivery (” Dreamy ” or the ” Platform “).
The company soft launched Dreamy Delivery to friends and family in the San Francisco Bay Area of Northern California ( “Bay Area “), to ensure a seamless customer experience in early Q4 of 2020. The Company has expanded the Platform, with Dreamy now successfully delivering to legal cannabis consumers in the Bay Area. The Company hopes to launch Dreamy in Sacramento and the Central Coast of California by late Q4 of 2020 with the ultimate goal of delivering Cannabis statewide.
Carl Saling , CEO of Hollister , shared: “This is a major first step in our quest to be the dominant direct to consumer platform delivering cannabis to the entire state of California .”
Hollister Biosciences Inc. is a multi-state cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality cannabis & hemp products. Hollister uses a high margin model, controlling the whole process from manufacture to sales to distribution or seed to shelf. Products from Hollister Biosciences Inc. include HashBone, the brand’s premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products, and full-spectrum high CBD pet tinctures. Hollister Cannabis Co. additionally offers white-labeling manufacturing of cannabis products. Our wholly owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA birthplace of the “American Biker”.
The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release includes certain statements that may be deemed “forward-looking statements”. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on www.sedar.com .
Posted by AGORACOM-JC
at 4:23 PM on Monday, November 9th, 2020
Hollister Biosciences (HOLL:CSE) is a multi-state operator with multiple, high-quality products that are now carried in 280 of California’s 600 dispensaries, where it also claims California’s #1 hash infused pre-roll “HashBone” … and if that is all they had you would have the makings of a great small cap cannabis company.
But there is more …. way more.
Venom Extracts is their 100% owned subsidiary that is absolutely dominating the state of Arizona. More than just lip service:
Venom just surpassed $30,000,000 (MILLION) in revenue YEAR TO DATE
Venom Extracts is one of Arizona’s premier extract brands
One of the state’s largest producers of medical cannabis distillate and related products
The products are award winning
….. And it is run by the absolute coolest guy in small cap Cannabis – Jake Cohen
THE NUMBERS SAY IT ALL
1. RECORD Q3 REVENUE $12.5M
2. CRAZY REVENUE GROWTH 5,200%
3. RECORD EBITDA $1.265M (vs a loss of $362,000) In case you’re wondering if this was a fluke quarter, this is what Q2 looked like:
RECORD REVENUE of $US 8.47M, compared to $200,000 last year and representing an increase of 4,170%
NET INCOME of $300,000, compared to a loss of $2.1M, representing a turnaround of $2.4M over last year
HOLLISTER HEADED TOWARDS $50,000,000 REVENUE?
If you’re paying attention, HOLL is achieving enormous growth both year over year and sequentially. If we extrapolate the latest Q3 numbers, Hollister is on a $50,000,000 annualized revenue run rate assuming no further growth.
But there is more.
The State of Arizona just approved recreational cannabis in Arizona. This is a potential windfall for Venom given the fact its brand, reputation and dispensary penetration from its award winning medical cannabis is about as good as it gets. How good is Hollister now?
How good does it get?
Watch this incredible interview with Venom Extracts Founder Jake Cohen, the coolest exec in small cap cannabis because he delivers incredible results with sweat, swagger and great swag to boot.
Posted by AGORACOM
at 8:28 AM on Friday, November 6th, 2020
OAKLAND, Calif. and TORONTO, Nov. 6, 2020 /CNW/ – Harborside Inc. (“Harborside”, or the “Company”) (CSE: HBOR), (OTCQX: HBORF), a California-focused, vertically-integrated cannabis enterprise, announced today that it is engaging in a substantial upgrade of one of its approximately 45,000 square foot greenhouses at its 47-acre integrated production campus in Salinas, California (the “Salinas Facility”).
The planned upgrades include, among other things, the installation of blackout curtains and supplemental LED grow lights in the greenhouse. Following the successful completion of these upgrades, on an annualized basis. the Company expects an approximately 50% increase in production from this greenhouse, an expected approximately 10% increase in bulk wholesale revenue capacity, and an approximately 7% increase in the total productive capacity of the Salinas Facility. The project is expected to be completed within the first quarter of 2021 and the Company expects that the total cost of the updates will be fully recouped within the first twelve months of operation following completion of the project.
In addition, the Company announced today that its in-house brand, Harborside Farms, a highly recognized, customer-centric product line, will commence sales of clones grown at its Salinas Facility at all Harborside branded locations, including Desert Hot Springs. On a year-over-year basis, sales of Harborside Farms products have grown by 229% at Harborside’s iconic dispensaries capturing 42% of its total retail flower sales through the end of the third quarter of 2020, demonstrating continuing strength and customer loyalty to one of its flagship brands.
“We have carved out a strong reputation for supplying high-quality cannabis products to the growing California market and these upgrades are a crucial investment that will fuel our growth heading into 2021,” said Peter Bilodeau, Interim CEO and Chairman of Harborside. “Leveraging the strength of our Salinas facility, we’re thrilled to be officially commencing sales of clones that are grown at our farm and only available at our stores immediately. This new in-house product category was developed utilizing sustainable cultivation techniques to provide discerning consumers with access to locally grown, high-quality cannabis.”
The Company’s clone initiative aims to capitalize on these trends and the continued high-quality production from its Salinas Facility, and will underscore the single-source, local nature of the Harborside Farms brand, as well as its emphasis on sustainable cultivation practices. The initiative will also continue to enhance the Company’s retail gross margins by adding an additional in-house product category sourced internally from its Salinas Facility.
At its retail dispensaries, clones (inclusive of seeds and seedlings) are expected to comprise approximately 5% of the Company’s total annual retail sales, or approximately $2M in annual net retail revenue in 2020. The Company’s average gross margin in this category is approximately 52% through the end of the third quarter. The Company anticipates Harborside Farms clones capturing at least 50% of total clone sales throughout the course of 2021, resulting in total sales of approximately $1M, with estimated gross margins as high as 90%. The Company expects average gross margins across its entire clones category to increase to approximately 70% during 2021 as a result of this initiative, providing an approximate 18% improvement over its expected annual average gross margin in this category as compared to 2020.
About Harborside: Harborside Inc. is one of the oldest and most respected cannabis retailers in California, operating three of the major dispensaries in the San Francisco Bay Area, a dispensary in the Palm Springs area outfitted with Southern California’s only cannabis drive-thru window, a dispensary in Oregon and a cultivation/production facility in Salinas, California. Harborside has played an instrumental role in making cannabis safe and accessible to a broad and diverse community of California consumers. Co-founded by Steve DeAngelo and dress wedding in 2006, Harborside was awarded one of the first six medical cannabis licenses granted in the United States and today holds cannabis licenses for retail, distribution, cultivation, nursery and manufacturing. Harborside is currently a publicly listed company on the CSE trading under the ticker symbol “HBOR”. Additional information regarding Harborside is available under Harborside’s SEDAR profile at www.sedar.com.
Posted by AGORACOM-JC
at 10:58 PM on Wednesday, November 4th, 2020
Company comments on the successful passage of Proposition 207 – legalizing the cultivation, sale and consumption of recreational cannabis in the state of Arizona
“Seeing recreational Cannabis legalized in the state is an encouraging sign and is hopefully another step toward federal legalization. It should lead to increased tax revenue and job creation. The recreational cannabis market in Arizona could be valued at up to US $760 million by 2024…” Shared Jacob Cohen , Founder of Venom Extracts, Hollister’s 100% owned subsidiary based in Arizona .
VANCOUVER, BC , Nov. 4, 2020 – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the ” Company “, ” Hollister Cannabis Co. ” or ” Hollister “) a diversified cannabis branding company with products in over 280 dispensaries throughout California , and over 80 dispensaries throughout Arizona provides comment on the successful passage of Proposition 207 – legalizing the cultivation, sale and consumption of recreational cannabis in the state of Arizona .
“Seeing recreational Cannabis legalized in the state is an encouraging sign and is hopefully another step toward federal legalization. It should lead to increased tax revenue and job creation. The recreational cannabis market in Arizona could be valued at up to US $760 million by 2024 1 , significantly expanding the total addressable market for Cannabis in the state. We look forward to making our product line available to both the medical and recreational end user.” Shared Jacob Cohen , Founder of Venom Extracts, Hollister’s 100% owned subsidiary based in Arizona .
Arizona Presence
Hollister , through its 100% owned subsidiary, Venom Extracts (” Venom “), is one of Arizona’spremier extract brands and one of the state’s largest producers of award-winning medical cannabis distillate and related products. With an experienced management team and unparalleled reputation for quality, Venom prides itself as a differentiated extraction company by producing legal cannabis products at a price point that allows retailers to generate higher profits. Focused on proprietary efficiencies, Venom is able to produce more product per square foot than its competition, maintaining lower costs and risks than a typical extraction company.
Hollister Biosciences Inc. is a multi-state cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality cannabis & hemp products. Hollister uses a high margin model, controlling the whole process from manufacture to sales to distribution or seed to shelf. Products from Hollister Biosciences Inc. include HashBone, the brand’s premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products, and full-spectrum high CBD pet tinctures. Hollister Cannabis Co. additionally offers white-labeling manufacturing of cannabis products. Our wholly owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CAbirthplace of the “American Biker”.
The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release includes certain statements that may be deemed “forward-looking statements”. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on www.sedar.com
Posted by AGORACOM-JC
at 2:15 PM on Wednesday, November 4th, 2020
SPONSOR: Hollister Biosciences Inc. (HOLL:CSE) A vertically integrated Cannabis company with products in 280 California dispensaries, over 80 dispensaries throughout Arizona, joint ventures, licensing agreements and partnerships with Global brands. For the period beginning July 1 st , 2020 and ending September 30 th , 2020, Hollister generated record quarterly revenue of CDN$ 12.5 million and CDN$ 1.265 million in EBITDA. Learn More.
“Until now, Arizona had imposed some of the strictest prohibition laws in the country; in some instances, the possession of even small amounts of marijuana was classified as a felony,” NORML Executive Director Erik Altieri said. “By rejecting this failed policy, no Arizonan going forward will be saddled with a criminal conviction for engaging in the personal possession or cultivation of cannabis, or face the lifelong stigma that comes with it.”
“Proposition 207 will disrupt the illicit market, end low-level marijuana arrests, create jobs and new revenue,” he added. “This result once again shows that marijuana legalization is not exclusively a ‘blue’ state issue, but an issue that is supported by a majority of all Americans—regardless of party politics.”
Polling was mixed heading into Election Day, with surveys consistently showing the proposal ahead, though by differing margins. In September, the Smart and Safe Arizona campaign shared an internal poll with Marijuana Moment that showed 57 percent of likely voters supported the initiative, but a separate survey found just 46 percent in favor of the policy change. Additional polls last month showed the cannabis measure with a significant and growing lead.
The measure also contains several restorative justice provisions such as allowing individuals with prior marijuana convictions to petition the courts for expungements and establishing a social equity ownership program.
Cannabis sales will be taxed at 16 percent. Tax revenue will cover implementation costs and then be divided among funds for community colleges, infrastructure, a justice reinvestment and public services such as police and firefighters.
The Department of Health Services will be responsible for regulating the program and issuing cannabis business licenses. It will also be tasked with deciding on whether to expand the program to allow for delivery services.
The law technically goes into effect upon passage and after the voters are certified, which is expected to take place on November 30. After that point adults could legally use, possess and cultivate cannabis. However, regulators will still have to promulgate rules for overseeing the commercial industry. They can issue licenses starting in January 2021, and the first shops could be approved by February 1.
“Just four years after legalization was narrowly defeated, voters in Arizona turned out to send a clear message that they support marijuana legalization,” Steve Hawkins, executive director of the Marijuana Policy Project, said. “Following this victory, adults will no longer be treated as criminals for using a substance that is safer than alcohol and will be able to access it from safe and regulated businesses.”
Like other drug policy reform campaigns throughout the U.S., Smart and Safe Arizona faced significant obstacles qualifying its measure for the ballot amid the coronavirus pandemic.
At one point, activists asked the state Supreme Court to allow them to collect signatures electronically amid social distancing mandates, but that request was rejected.
Ultimately, the campaign submitted about 420,000 raw signatures. Secretary of State Katie Hobbs said that her office verified the petitions and determined that approximately 255,080 valid signatures were turned in. At least 237,645 were needed to qualify.
Opponents of the proposal, including Gov. Doug Ducey (R), released official voter guide arguments against the initiative in August. Supporters filed arguments as well, and all were circulated to voters in a pamphlet printed by the state.
Prohibitionists also released a series of attack ads that including misleading claims about what the measure would do and what has occurred in states that have already enacted cannabis legalization.
Posted by AGORACOM-JC
at 10:22 AM on Monday, November 2nd, 2020
Final license achieved July 2020
16,000 sq ft Distribution Space open for business in Q4
Contracts in place with much larger farms than the Company were able to service out of the smaller facility (16,000sq ft vs. 1,250 sq ft)
Build-out for cultivation has begun
The first harvest from cultivation in Daly expected in Q1
“Phase 1” Daly canopy sq. ft. capable of generating $30M + USD/year in cultivation revenue alone
In combination with increased Distribution capacity on track for 2021 rev target of $60M+ out of this facility
Vancouver, British Columbia–(November 2, 2020) – TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is very pleased to provide a corporate update:
Lyfted Farms Products are in High Demand and Selling Out
Lyfted Farms Secures Multiple Off-Take Agreements
Q4 Revenue Guidance
Crop Management Business Launched
Daly Facility Update
Product Update
Lyfted Farms flower is one of a very few branded indoor cultivation companies that routinely delivers on customer expectations for quality. This is reflected in the caliber of the retail stores that carry Lyfted Farms and by customer demand for our products. Lyfted Farms genetic library is fully capable of delivering new strains seasonally and has evolved into a trend-defining marketplace leader where other cannabis entities watch and emulate our products. Material process improvements have resulted in larger “nugget” sizing, increased THC levels, and a more robust curing cycle yielding better taste and aromatic profiles. These changes have had a positive effect on the pricing structure, with a 66% increase in wholesale pricing and a 100% increase in gross margins.
Off-Take Agreements
The Company has secured multiple off-take agreements in anticipation of late Q1 production coming out of the Daly facility. Shareholders will be given greater detail in subsequent news releases when all material details are finalized. As a result of the status of these agreements, the Company has tremendous confidence it will achieve or exceed its stated 2021 revenue targets.
Contracts with the likes of renowned retail partner Cookies, where Lyfted Farms currently has five sku’s in stores, provides the additional benefit of cost savings by not requiring a large in-house sales team or paying expensive 3rd party commissions, which are common in the Cannabis Sector.
Revenue Guidance
Lyfted Farms products produced out of the Company’s smaller Lyfted Farms facility continue to sell out and exceed sales expectations. Due to the increased capacity of the first 16,000 sq ft of distribution space in the Daly facility, the Company anticipates its Fourth Quarter to be its strongest of the year. The Company’s internal gross revenue target for the 2020 fiscal year ranges from CAD$12,000,000 up to CAD$14,000,000 (with anticipated net profits from sales of $600,000 up to $700,000). The Company is on track to achieve this benchmark.
With the opening of the Daly facility, associated off-take agreements, high demand for sales, and a strong distribution division, the Company maintains its guidance for a gross revenue target of CAD$55,000,000 to CAD$75,000,000 (with anticipated net profits from sales of $6,600,000 up to $9,000,000) for the fiscal year 2021. This revenue guidance is only for phase one of four in the Daly facility with phase one construction costs estimated to be CAD$3,172,500.
“With a significant portion of the year spent on submitting and obtaining licenses, we expect investor attention to shift to our 2021 performance. Our goal has always been to drive shareholder value through incremental sales contracts and quality products. This focus has us well-positioned to begin the build-out of the Daly building and scale our business,” States Bob Blink, company CEO. “I am very proud of how the team has come together through unprecedented events both globally and in our own back yard. 2021 will be a very exciting year for the Company.”
Crop Management Services Division
On October 8, 2020, the Company announced Lyfted Farms’ crop services management division (LFCSMD) first facility would come online January 1, 2021. This initiative is on schedule and will begin generating an additional revenue stream for the Company over and above the already thriving cultivation and distribution divisions. The first payments to LFCSMD are set to commence December 1, 2020. LFCSMD allows the Company to further monetize its genetic catalogue and further the Company’s reputation within the industry as best in class cultivators and operators. Additionally, this allows the Company to build out its supply chain — feeding its growing fulfillment and white-labeling business and maximizing efficiencies within the Daly Facility.
Daly Facility Update
The licensing and engineered build-out of the Daly Facility continues to be the core strength for the company. The amalgamation of a number of California’s strongest cannabis brands coming into the largest and most efficient facilities in the State is a truly powerful combination.
Updates at a glance:
Final license achieved July 2020
16,000 sq ft Distribution Space open for business in Q4
contracts in place with much larger farms than the Company were able to service out of the smaller facility (16,000sq ft vs. 1,250 sq ft)
Build-out for cultivation has begun
The first harvest from cultivation in Daly expected in Q1
“Phase 1” Daly canopy sq. ft. capable of generating $30M + USD/year in cultivation revenue alone
In combination with increased Distribution capacity on track for 2021 rev target of $60M+ out of this facility
Other Highlights
Smaller Lyfted Farms Facility has outperformed expectations.
Production capacity of Lyfted Farms facility is currently sold-out until March, 2021
Average sales price per gram has increased from $5.70/gram to $8.57/gram, or +66% (increased demand and collaboration/co-branding) & 100% increase in gross margin
Average total harvest weight per room is trending up
Summary
Company performance and development of our team and human capital has been extraordinary. With the current global pandemic and wildfires in California, the Company has experienced many challenges over the past six months. The dedication and commitment by team members have given TransCanna stability and galvanized the opportunity for significant growth in the near term.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed Company building cannabis-focused brands for the California lifestyle through its wholly-owned California subsidiaries.
On behalf of the Board of Directors Bob Blink, CEO 604-349-3011
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs regarding future events of management of the Company. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as “forward-looking statements”, are not historical facts, are made as of the date of this news release and include without limitation estimates and forecasts and statements as to management’s expectations for growth and the commencement of operations of the Company’s Daly facility.
The forward-looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including that operations will commence at the Company’s Daly facility in Modesto, California, as and when expected.
These forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially from any future results, events or developments expressed or implied by such forward-looking statements. Risks and uncertainties associated with the forward-looking information in this news release include, among others, dependence on obtaining and maintaining regulatory approvals, including state, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to complete upgrades to its Daly facility in a timely manner; engaging in activities which currently are illegal under U.S. federal law and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, particularly in California, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth;; reliance on management; and the effect of capital market conditions and other factors (including those related to the COVID-19 pandemic) on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look, except in accordance with applicable securities laws.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
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