Tilray Releases 11 Million Shares From Lock-Up Agreement

CANADA: Tilray, a global pioneer in cannabis production, research, cultivation and distribution, announced that the Board of Directors of Tilray unanimously approved the pro rata release of 11 million shares of Class 2 common stock held by the former equity holders of Privateer Holdings, Inc.

The shares are being released from lock-up agreements entered into in under the Agreement and Plan of Merger and Reorganization, dated September 9, 2019, by and among Tilray, Privateer, Down River Merger Sub, LLC, a Delaware limited liability company and wholly owned subsidiary of Tilray, and Michael Blue, as the Stockholder Representative. The waiver and release will take effect on April 3, 2020, and the released shares may be sold on or after that date, subject to applicable securities law or contractual limitations.

A previously announced agreement between Tilray and Privateer required that each Privateer equity holder who received the shares of Tilray stock or options to purchase Tilray stock in the merger were subject to a lock-up allowing for the sale of such shares only under certain circumstances over a two-year period beginning December 12, 2020. During the first year following the closing of the merger, shares will be released only pursuant to certain offerings or sales arranged by and at the discretion of Tilray. The pro rata release will be treated as a “permitted sale” under the lock-up agreements, waiving the release requirements with respect to such shares included in the lock-up agreement.

“The shares to be released on April 3, 2020 are part of the previously announced release of Tilray stock over a two-year period,” said Michael Kruteck, Tilray’s Chief Financial Officer. “We believe the staggered release of locked-up shares, as well as strategic and marketed offerings, will manage our public float in an orderly fashion.”

The waiver and release announced today will apply on a pro rata basis to each former Privateer equity holder who received shares of or options to purchase Tilray Class 2 common stock in the merger, including certain Tilray officers and directors.

The waiver and release of the 11 million shares represents approximately 14.5% of the locked-up shares (including for purposes of this percentage calculation shares that remain subject to escrow and/or subject to outstanding assumed stock options).

FSD Pharma To Begin Trading On The NASDAQ Capital Market Under Symbol ‘HUGE’ January 9, 2020

FSD Pharma

CANADA: FSD Pharma Inc. today announced that its Class B Subordinate Voting Shares (the “Shares”) have been approved for listing on the NASDAQ Capital Market under the symbol ‘HUGE’. Trading on the NASDAQ is expected to commence at market open on Thursday, January 9, 2020.

The Company’s Shares will continue to be listed on the Canadian Securities Exchange under the symbol ‘HUGE’.

“As we announce this much anticipated and coveted milestone, I want to congratulate the FSD Pharma team, our stakeholders, and, most importantly, our shareholders. I also want to extend my gratitude to the members of the Board of Directors of FSD Pharma, and especially to the founders of the Company, for their vision and for giving me an opportunity to lead the FSD Pharma team to achieve this strategic advantage. It is exciting to realize that once we begin trading on NASDAQ, we will be included in a select group of 12 Canadian-domiciled cannabis companies trading on either the NYSE or NASDAQ, and the first company in the history of the Canadian Securities Exchange to be dual-listed on a major U.S. exchange,” stated Raza Bokhari, MD, Executive Co-Chairman and CEO.

 

How To Begin Investing In Marijuana

With the legalization of marijuana in specific areas of Canada and the United States, you may be interested in investing in this high-growth industry. To understand the best way to do this, you need to know about the different types of marijuana stocks and what you should look for when you’re investing.

Understanding the Different Types of Marijuana Products

Over 30 US states have legalized marijuana for medical use, and in some states, it can be sold recreationally. If a person wants to purchase medical marijuana, they’ll need a prescription from a healthcare provider, which is usually for symptoms such as depression, anxiety and stress.

Medical marijuana is available in different forms that can be smoked, vaped or consumed via beverages or edible products. Cannabidiol (CBD) is a common product that comes from the cannabis plant. It doesn’t contain delta-9 tetrahydrocannabinol (THC), which has psychoactive properties. These products are usually used for health benefits.

Marijuana products that contain THC are typically used by recreational users who want to feel the effects of psychoactive properties. They tend to smoke cannabis flowers, vape concentrates or consume edibles.

Different Types of Marijuana Stocks

When you’re looking for the best marijuana stock to invest in, it’s important to understand the different types available, which include the following:

Cannabis Retailers and Growers: Companies involved in this category are involved in cultivating cannabis, which is usually done in greenhouses or large indoor facilities. They will harvest their crops and distribute end products in the form of concentrates, flowers or edibles. These companies or other independent companies can also choose to operate retail stores, which sell recreational and/or medical cannabis.

Ancillary Services and Products: It takes specific equipment to grow marijuana. The companies in this category supply lighting and hydroponic systems to marijuana growers. Large fertilizer companies can also be included in this niche.

Biotechs Focusing on Cannabis: Some biotech companies focus primarily on creating cannabinoid drugs.

Basics of Cannabis Investing for Beginners

When you invest in marijuana stocks, it’s important to apply the same type of basics that you would for any stock investment. You may want to check out the management team of a company and examine their track record. It’s best to find companies that have a strategy put in place for growth, which might include an organic plan or expansion via acquisitions.

You’ll also want to analyze competition when you’re looking for the best marijuana stock to invest in. Try and find a company that differentiates itself. You can do this by seeing if a company is working with top partners or producing a profit. The marijuana industry is still in its infancy, which means you will probably find companies that aren’t generating profits. This can be a good plan if they are focusing on growing their operations.

It’s also helpful to learn if a company is focused on targeting specific geographic markets. Each geographic market will present a unique opportunity, which can be highly beneficial to a company if they are the leader in that area.

Benefits of Investing in Marijuana

When you’re investing in the stock market, you can choose to purchase stocks and industries that are riskier than others. Marijuana stocks provide this opportunity. They can be more volatile than a lower risk energy stock or stocks related to companies selling consumer products such as household detergents. The benefit of investing in marijuana stocks becomes apparent when you look at the rewards and profits they can create.

Like any investment, you need to look at your risk profile and decide how much you want to invest in your first position. If your risk profile allows you to invest 30 percent in the category of higher-risk stocks, you may want to include one or more marijuana stocks in that part of your portfolio. To do this, it’s usually best to begin with a small position. If you recognize an uptrend in the stock or stocks you’ve invested in, you can always add more shares in the future.

Now that you have learned more about the basics of the marijuana industry and how to find different marijuana stocks, it’s time to do some research and decide on the type of company you’d like to invest in. This will help you pinpoint your decision when you are ready to make a purchase.

CannTrust Discloses Notice Of Licence Suspension

CANADA: CannTrust Holdings has announced that it received late this morning a Notice of Licence Suspension under section 64(1) of the Cannabis Act. The Notice cites the Company’s previous non-compliance with certain requirements of the Cannabis Act and the regulation made thereunder in respect of the matters that the Company has been discussing with Health Canada.

CannTrust logoThe Notice states that Health Canada has suspended CannTrust’s authority to produce cannabis, other than cultivating and harvesting, and to sell cannabis. As such, the Notice constitutes a partial suspension of the Company’s licence for standard cultivation and a full suspension of its licences for standard processing, medical sales, cannabis drugs and research issued under the Cannabis regulations. While the suspension remains in effect, CannTrust will be permitted to cultivate and harvest existing lots or batches previously propagated, as well as conducting ancillary activities to those lots, including drying, trimming and milling. During the suspension, CannTrust may not propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis.

The Notice states that Health Canada will reinstate CannTrust’s licences under section 64(4) of the Cannabis Act if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.  The Notice also states that Health Canada considers that implementation of the following measures could potentially address the public health and safety risks that contributed to Health Canada’s decision to issue the Notice:

  • Measures to ensure that cannabis will be produced and distributed only as authorized, including measures to control the movement of cannabis in and out of CannTrust’s site;

  • Measures to recover cannabis that was not authorized by CannTrust’s licence;

  • Measures to improve key personnel’s knowledge of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust; and,

  • Measures for improving the manner in which records are kept, including a plan to improve the inventory tracking, and any interim measures to ensure that information provided to Health Canada can be reconciled.

The Company’s management and Board of Directors are reviewing the Notice with the Company’s counsel and other advisors.

Over the past two months, the Company has moved swiftly to assess and address Health Canada’s concerns, including areas of operational non-compliance. The Company remains committed to being in full regulatory compliance.

Cresco Labs Announces Increased Profitability In Q2 2019 With Revenue Growth Of 253% Year-Over-Year and 42% Quarter-Over-Quarter

ILLINOIS: Cresco Labs, one of the largest vertically integrated multi-state cannabis operators in the United States, today released its unaudited financial results for the second quarter ended June 30, 2019. All financial information presented in this release is in U.S. dollars, unless otherwise noted.

Cresco-Logo_Blue

Second Quarter 2019 Highlights and Subsequent Events

Revenue

  • Second quarter revenue of $29.9 million, up 253% year-over-year and 42% quarter-over-quarter.
  • Second quarter pro forma revenue1 increased 55% quarter-over-quarter to $52.7 million, which includes the impact of pending acquisitions and investments.

EBITDA

  • Second quarter Adjusted EBITDA2 of $14.5 million, compared to $4.8 million in the prior-year period. Excluding the impact of biological assets, adjusted EBITDA for the second quarter was $2.3 million.
  • Second quarter 2019 financial results included $3.2 million related to share-based incentive compensation, acquisition and other non-recurring costs of $3.2 million and $0.7 million in one-time charges related to the Company’s expansion in California.

Net Income

  • Second quarter net loss of $3.9 million, compared to net income of $1.6 million in the prior-year period.

Balance Sheet

  • As of June 30, 2019, the Company had total assets of $355.0 million, including cash and cash equivalents of $61.1 million and a working capital position of $128.7 million with zero debt on the balance sheet.

Operations

  • The Company is operational in seven U.S. states, with binding transactions pending in New York, Massachusetts and Florida, as well as approved expansion into Michigan.
  • The Company expects its acquisition of Origin House to close during the fourth quarter of 2019, which greatly expands its distribution network in California.
  • Cresco received regulatory approval for its acquisition of Valley Agriceuticals, LLC., providing the Company with one of 10 vertically integrated licenses granted in the State of New York.

Talent

  • Continued hiring top talent including a new Chief Information Officer and a new Chief People Officer, bringing total staff headcount to approximately 1,400 employees at the end of the second quarter of 2019, including pending acquisitions.

Management Commentary

“We delivered an outstanding quarter that reflects the leading positions we have established in some of the most attractive markets in the cannabis industry,” said Charles Bachtell, Co-founder and CEO of Cresco Labs. “We are seeing accelerating revenue growth driven primarily by market share gains and strong trends in registered patients in our established markets of Illinois and Pennsylvania, as well as our expanded presence and distribution in California. As we scale our operations in our established markets, we are seeing the positive impact on gross profit margin that we projected. The higher revenue and margins helped to drive a substantial increase in Adjusted EBITDA compared to the prior quarter.

“While our increasing profitability demonstrates our ability to effectively execute and leverage the attractive model we have developed, we continue to operate with a long-term perspective and make investments to position Cresco Labs to lead the cannabis industry in the years to come. We are transforming the retail cannabis experience with the national rollout of our Sunnyside* dispensaries, expanding into the CBD market with the launch of our WellBeings product line, and expanding our cultivation and retail operations in Illinois to capitalize on adult-use legalization beginning in 2020. As we continue to capitalize on the strong organic growth trends in our current markets and complete our pending acquisitions of Origin House and VidaCann, we expect to deliver continued improvement in revenue and profitability, resulting in further value being created for our shareholders,” said Mr. Bachtell.

Financial Results for the Second Quarter Ended June 30, 2019 (Unaudited)

Revenue for the second quarter of 2019 was $29.9 million, an increase of 253% compared to revenue of $8.5 million for the second quarter of 2018. The increase in revenue was driven by expansion into new markets and continued growth in the states where the Company operates. Second quarter 2019 revenue increased 42% compared to $21.1 million for the first quarter of 2019, primarily driven by higher revenue generated in Pennsylvania, Illinois and California. On a pro forma basis, revenue for the second quarter of 2019 increased 55% from the first quarter of 2019 to $52.7 million, which includes the impact of pending acquisitions and minority investments.

Second quarter 2019 operational gross profit2, before the impact of biological assets accounting, was $14.4 million, or 48.1% of revenues, compared to $9.4 million, or 44.6% of revenues, for the first quarter of 2019. The improvement in operational gross profit margin was driven by greater scale in the Company’s established markets, increasing efficiencies in cultivation, processing and packaging, partially offset by the impact of initial costs associated with expansion into newer markets like California, Ohio and Arizona, where the Company expects to see higher margins as these operations continue to scale.

Total expenses for the second quarter of 2019 were $20.6 million, compared to $3.2 million for the prior year period. Total expenses in the second quarter of 2019 included $3.0 million in expenses related to share-based incentive compensation, $3.2 million in acquisition and other non-recurring costs and $0.9 million of depreciation and amortization. The balance of the increase represents investments made in talent and operational infrastructure to support the Company’s continued revenue growth.

Net loss for the second quarter for 2019 was $3.9 million, compared to net income of $1.6 million for the prior-year period. Current period net income included income tax expense of $5.6 million, primarily driven by discrete tax items related to the legal close of the acquisitions of MedMar Inc. and PDI Medical.

Adjusted EBITDA for the second quarter of 2019 was $14.5 million, compared to $4.8 million for the prior-year period. Excluding the net impact of the fair value of biological assets, Adjusted EBITDA for the second quarter of 2019 was $2.3 million.

Balance Sheet and Liquidity

As of June 30, 2019, the Company had total assets of $355.0 million, including cash and cash equivalents of $61.1 million and a working capital position of $128.7 million with zero debt on the balance sheet. Use of cash in the second quarter of 2019 included significant investments in the expansion of cultivation, processing and retail facilities in the Company’s existing markets, payments for the legal close of the MedMar Inc. and PDI Medical acquisitions, and funding provided to pending acquisitions to drive the continued development of facilities.

Conference Call and Webcast

The Company will hold a conference call and webcast to discuss its business and financial results on Wednesday, August 21, 2019 at 5 p.m. Eastern Time. The conference call may be accessed via Cresco’s investors website at investors.crescolabs.com or by dialing 866-688-4235 (409-216-0711 for international callers) and entering conference ID 3385937. Archived access to the webcast will be available for one year on Cresco’s investors website.

Consolidated Financial Statements 

The financial information reported in this news release is based on unaudited management prepared financial statements for the three and six months ended June 30, 2019. The Company will file its condensed interim consolidated financial statements on SEDAR by August 29th, 2019. Accordingly, such financial information may be subject to change. All financial information contained in this news release is qualified in its entirety with reference to such financial statements. While the Company does not expect there to be any material changes, to the extent that the financial information contained in this news release is inconsistent with the information contained in the Company’s financial statements, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the Company’s audited financial statements for the year ended December 31, 2018, previously filed on SEDAR.

Cresco references certain non-IFRS financial measures throughout this press release, which may not be comparable to similar measures presented by other issuers. Please see the “Non-IFRS Financial Measures” section at the end of this press release for more detailed information.

 

Leafly Hires Kirk Beardsley As Chief Operating Officer

WASHINGTON: Leafly, the world’s leading destination to help people discover, find and buy cannabis, today announced the hiring of Kirk Beardsley, an accomplished Fortune 500 retail executive, to the role of Chief Operating Officer. As COO, Beardsley will lead sales, marketing, and business innovation for Leafly.

“Kirk’s track record of helping some of the world’s leading brands build and scale multi-billion-dollar digital retail and marketplace businesses will help us fulfill our mission of becoming the destination for people interested in finding and buying legal cannabis,” said Leafly CEO Tim Leslie. “The legal cannabis market offers a substantial and growing opportunity, and Kirk has the experience to help us capitalize on our already strong momentum.”

Beardsley brings more than 20 years of experience dedicated to digitally infused commerce, most recently as Executive Vice President of Strategic Growth and Head of Trunkclub at Nordstrom. In his eight years at Nordstrom, he held key transformation roles including EVP of Marketing, EVP of Enterprise Technology and Innovation, and EVP of E-commerce and Online Merchandising. Prior to Nordstrom, he led global e-commerce at Microsoft Store and has held multiple leadership roles at Amazon.

“Over the course of my career I’ve had the privilege of leading all aspects of some of the world’s most influential consumer marketplaces,” Beardsley said. “I look forward to bringing those capabilities to Leafly to help more people get information and access to legal cannabis products that support their lifestyle.”

Leafly’s mission is to help people around the world discover, find and buy the best cannabis products for them. Consumers can use Leafly’s website and mobile app to learn about the right products for their lifestyle and wellness needs, find those products safely and efficiently, and buy them from licensed and regulated dispensaries or retail stores.

With more than 10 million monthly site visitors and more than 1.4 million user-generated strain, product and licensed dispensary reviews, Leafly has one of the largest and most engaged audiences in the cannabis industry.

 

Cannapreneur Partners Appoints Former American Express Senior Manager Doug Lennick To Executive Board

MASSACHUSETTS: Cannapreneur Partners, the Westborough, Mass-based holding company finding the cannabis world’s 1% outlier entrepreneurs and industry investment opportunities currently in the middle of a $150 million fundraise round open to investors, has announced the appointment of Doug Lennick to their Executive Board of Directors. 

Lennick is world-renowned for innovative approaches to developing high performance in individuals and organizations, and is an expert in creating practical applications of human behavior that have yielded great success factors for his clients and partners alike in financial services and other industries.

Lennick is a certified financial planner (CFP) and a behavioral financial advisor (BFA) and served as Executive Vice President for American Express Financial Advisors (now Ameriprise Financial), where he led an organization of 17,000 to tremendous success.  Lennick has been the author or co-author of six books translated across 13 languages and has been referenced in the best sellers Working with Emotional Intelligence and Power of Purpose.

“Michael Scott is one of the world’s best at combining entrepreneurial expertise with the passion to make a difference. I am confident Cannapreneur Partners will make a difference, and that’s why I accepted this Board position,” said Lennick.

Lennick currently serves as CEO and co-founder of think2perform, a 15+ year-old professional coaching, leadership consulting, and business development services firm that improves the decision-making skills and performance of individuals and organizations. In November 2000, Lennick was honored by Columbia University’s Center for Social and Emotional Education, and is a Fellow at the Carlson Executive Development Center, Carlson School of Management, and University of Minnesota. He is also a member of the prestigious Consortium for Research on Emotional Intelligence in Organizations.

Michael Scott, Chairman and co-founder of Cannapreneur Partners, says: “I am truly humbled and excited to have Doug, a long time mentor, not only join as a Board Director but also as a strategic, values and purpose driven advisor to our company. Doug and I both see the tremendous value the medicinal side of cannabis can bring to the world.”

Scott notes the chasm between the potential applications and deeper understanding of cannabis as a medicine and where the legal industry currently is, means the opportunity to infuse smart capital and strategic operational excellence is now.

Says Scott: “I am very confident with Doug joining the team as a thought leader we will make a significant, meaningful impact in the cannabis industry.”

Tilray Reports Second Quarter 2019 Financial Results

 

CANADA: Tilray, a global pioneer in cannabis research, cultivation, production and distribution, today reported financial results for the second quarter ended June 30, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“We are pleased with our second quarter results and strong business momentum,” said Brendan Kennedy, Tilray President and Chief Executive Officer. “Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row. As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value.”

Second Quarter 2019 Financial Highlights

  • Revenue increased 371.1% to $45.9 (C$60.9) million, compared to the second quarter of last year, driven by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in international medical markets, particularly in Europe. Excluding excise tax, revenue was $42.0 (C$55.8) million.
  • Total kilogram equivalents sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior year period.
  • Average net selling price per gram decreased to $4.61 (C$6.12) compared to $6.38 (C$8.36) in the prior year period. The average net selling price excluding excise taxes was $3.92 (C$5.20) per gram for the second quarter of 2019. The decrease was due to a reduced mix of higher priced extract products and a greater mix of adult-use revenue, which are at lower prices per gram compared to other channels.
  • Gross margin increased sequentially to 27% from 23% in the prior quarter. Gross margin in the second quarter of 2018 was 43%. Gross margin continues to be impacted by increased costs incurred with the ramping up of cultivation facilities in Canada and Portugal and acquiring third party supply. Food product margins were also impacted by a $1.4 million non-cash charge related to purchase accounting for the fair value of inventory.  Excluding this purchase accounting charge, gross margin was 30% for the quarter.
  • Net loss for the quarter was $35.1 million or $0.36 per share compared to a loss of $12.8 million or $0.17 per share for the prior year period. The adjusted net loss for the quarter was $31.2 million or $0.32 per share for the second quarter of 2019. The adjustments to the net loss are non-recurring acquisition related charges and a non-recurring non-cash charge related to purchase accounting for the fair value of inventory. Adjusted EBITDA was a loss of $17.9 million compared to a loss of $4.7 million the prior year period. The increased net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, interest expense from our convertible notes, the addition of Manitoba Harvest and Natura businesses, and the expansion of international operations.

Business Highlights   

  • Signed Letter of Intent (LOI) with Privateer Holdings, Inc. to extend lock-up for up to two years and provide for orderly release of the 75 million Tilray shares held by Privateer.
  • Significant capacity expansion:
    • Expanded international export capacity with standard manufacturing license and Good Manufacturing Practices (GMP) certification for EU Campus that allows Tilray Portugal to manufacture and export GMP-certified dried cannabis as an active substance for medicinal products.
    • Increased international export capacity with an additional 20 hectares (50 acres) of outdoor cultivation space in Portugal through a Definitive Agreement with Esporão, one of the largest and most sophisticated agricultural businesses in Portugal. This agreement will expand Tilray’s total production and manufacturing footprint to 3.4 million square feet worldwide.
    • Announced an investment of $32.6 million to increase our Canadian production and manufacturing footprint by 203,000 square feet across three facilities in Nanaimo, British Columbia, Leamington, Ontario, and London, Ontario.
  • Key international market developments:
    • Imported GMP-certified finished medical cannabis oil solutions into Ireland for nationwide distribution under the Medical Cannabis Access Programme.
    • Manitoba Harvest launched a Broad Spectrum Hemp Extract line that is Generally Recognized as Safe (GRAS) in the United States, marking Tilray’s first entry into the U.S. CBD market under this brand.
  • Expanding our brand portfolio: 
    • Acquired Smith & Sinclair, an innovative U.K.-based confectionary company that will introduce CBD-infused consumer products where regulations permit.
  • Clinical research developments: 
    • Announced support of two new clinical studies: a pilot study led by Murdoch Children’s Research Institute (MCRI) in Melbourne, Australia, to evaluate the feasibility and acceptability of a larger randomized placebo-controlled trial of cannabis extract as a form of treatment for reducing Severe Behavioral Problems (SBP) in pediatric patients with Intellectual Disabilities (ID); and a study with McGill University Health Centre’s Division of Infectious Diseases and Chronic Viral Illness in Quebec, Canada to examine the effectiveness of medical cannabis on immune activation in People Living with HIV.
    • Imported an initial shipment of medical cannabinoids into the United States, with approval from the U.S. government, to support two clinical trials led by NYU School of Medicine for patients with Alcohol Use Disorder and Post-Traumatic Stress Disorder with Alcohol Use Disorder.
  • Expanded global senior leadership team:
    • Appointed Kristina Adamski as Executive Vice President of Corporate Affairs, globally overseeing communications, government affairs and corporate social responsibility.
    • Strengthened European leadership team with the appointment of Arne Wilkens as Vice President, Business Expansion, Europe; José Tempero as Medical Affairs Director, Europe; Maike Gerlach as Vice President, Marketing, Europe; Nadja Frenzel as Vice President, Commercial Development, Europe; and Natalie Bucceri as Director, Global Portfolio Expansion.

Conference Call
The Company will host a conference call to discuss these results today at 5:00 p.m. ET. Investors interested in participating in the live call can dial 877-489-6528 from the U.S. and 629-228-0736 internationally. A telephone replay will be available approximately two hours after the call concludes through Tuesday, August 27, 2019, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international locations, and entering confirmation code 1489081.

There will also be a simultaneous, live webcast available on the Investors section of the Company’s website at www.tilray.com. The webcast will be archived for 30 days.

Alternate Health Reports $1.9 Million Of Revenue In Q2 2019

CANADA: Alternate Health Corp., an international leader in CBD extraction, product development and distribution, has announced that the company generated $1.9 million in Q2 revenue.

“Alternate Health’s Q2 results represent just the beginning of our new strategic direction as we focus exclusively on the hemp-derived CBD industry and, especially, product development and distribution,” says Howard Mann, CEO of Alternate Health. “We have built a strong base to rapidly expand our hemp and CBD product lines and capture a larger share of this exciting market.”
 
The Company’s large year-over-year increase in revenue is tied to Alternate Health’s recent acquisition of Blaine Labs Inc. (“Blaine Labs”), a California-based pharmaceutical company. Alternate Health announced the closing of the Blaine Labs acquisition agreement in a press release on June 20, 2019. Since the transaction was closed midway through Q2, the Company’s financial results do not include the full three-month Q2 revenues of Blaine Labs.
 
Alternate Health expects an increase in revenue in Q3, since the quarter will include the full three-month period of Blaine Labs revenue. The Company also anticipates stronger results now that the agreement has closed, and the Company is not distracted with negotiation. Management can focus resources directly on generating revenues and launching new products.
 
“We are hard-at-work finalizing product formulations, negotiating with distributors and securing inventory as we combine the strengths of Blaine Labs and Alternate Health,” says Howard Mann. “We expect to see some movement in revenue for Q3 2019, with the full impact of our efforts taking effect in Q4 2019.”

A significant portion of Alternate Health’s operating expenses include non-cash or non-recurring expenses. Also, as noted above, the Q2 2019 only include approximately 2 months of Blaine Labs revenue. If we account for the extra month, Alternate Health would have been close to break even on cashflow.
 
Alternate Health benefitted from general reductions in professional fees, salaries and management fees as well, while the company streamlined and focused its efforts on securing and expanding revenue-producing assets. Alternate Health intends to continue focusing reaching greater profitability while generating strong revenue growth.

Cresco Labs To Report First Quarter 2019 Financial Results On May 29, 2019

ILLINOIS: Cresco Labs Inc., one of the largest vertically integrated multi-state cannabis operators in the United States, will report its financial results for the first quarter ended March 31, 2019 on Wednesday, May 29, 2019 after the market closes.

Cresco-Logo_BlueThe Company will hold a conference call and webcast to discuss its business and financial results on Wednesday, May 29, 2019 at 6 p.m. Eastern Time (5 p.m. Central Time). The conference call may be accessed via Cresco Labs’ investor relations website at investors.crescolabs.com or by dialing 866-688-4235 (409-216-0711 for international callers) and providing conference ID 5478615.

Archived access to the webcast will be available for one year on the Cresco investor relations website.