Connect with us

Cannabis

GACC Releases Cannabis Industry’s First Model U.S. Federal Legislation

Published

on

Reading Time: 2 minutes

 

The Global Alliance for Cannabis Commerce (GACC) released the U.S. cannabis industry’s first comprehensive model federal legislation to legalize interstate and international medical and adult-use cannabis in the United States.

This first-of-its-kind model bill ends cannabis prohibition, and creates an all-encompassing regulatory framework with an eye towards harmonizing the interests of patients, industry, and the communities most affected by the failure of cannabis prohibition. It overhauls the tangle of federal laws and regulations governing cannabis and replaces the archaic policy of cannabis prohibition with common-sense reforms for treating cannabis as an agricultural, medical, and consumer good where states decide to do so; it also respects state primacy on the decision to legalize cannabis within its borders. The model statute implements what sixty-six percent of American already favor, according to an October 2018 poll by Gallup: legalizing cannabis.

GACC’s model policies create a two-track framework for the Food and Drug Administration (FDA) and Alcohol and Tobacco Tax and Trade Bureau (TTB) to safely control the cultivation, manufacture, and distribution of cannabis products in and between states that have legalized cannabis, without crippling the vibrant markets that already exist.

Economists project that the U.S. cannabis market will be worth over $66 billion by 2025, but without a smart and welcoming trade policy, Americans will not see the benefits of ending prohibition. In states where it has been legalized, it has produced tax revenues in the billions. GACC’s model bill first legalizes the transport of cannabis and cannabis-derivatives across state lines among states that have legalized cannabis, and implements federal regulation for the import and export of cannabis in global trade.

This governing architecture is designed to provide patients with safe access to medicine, while streamlining the many costly and confusing impediments that prevent cannabis businesses from investing in the United States. Furthermore, GACC’s model legislation includes provisions to reinvest in communities harmed by cannabis prohibition, retrain law enforcement for a post-prohibition world, and assist in expungement of criminal records for non-violent cannabis offenders.

GACC Executive Director Randal John Meyer noted that “It is crucial for federal lawmakers to understand the nature of the modern cannabis market as federal prohibition ends. Without sensible policy to regulate cannabis—like that contained in our model legislation—piecemeal fixes are more likely to result in unforeseen regulatory omnishambles that will perpetuate confusion, harm and inefficiencies, undermining or destroying huge parts of the cannabis market. The problems with federal cannabis law span vast areas of concern—from criminal law to pesticide use. Half-measures simply will not do for patients, adult consumers, or the 200,000-plus employees of a multi-billion dollar U.S. industry.”

GACC Vice President Jason Beck added, “In the national conversation around cannabis legalization, it is important for cannabis businesses to have a seat at the table to inform congress of these pressing issues.”

GACC’s Model U.S. Federal Legislation and section-by-section analysis is available on its Policy Center.

 

SOURCE The Global Alliance for Cannabis Commerce

Cannabis

National Access Cannabis Corp. Provides Sales Update for Retail Cannabis Operations Since Federal Legalization

Published

on

Reading Time: 2 minutes

 

National Access Cannabis Corp. (“NAC” or “the Company”) (TSXV: META), Canada’slargest cannabis retailer1, today provided investors with a corporate and retail sales update. The Company is successfully executing on its growth strategy and has achieved over $50 million in retail sales since legalization, with cumulative gross margin in excess of 31%. The Company is targeting to have 40 operating stores by the end of calendar 2019.

“NAC is rapidly growing its store count and revenue,” said Mark Goliger, CEO of NAC. “We have been granted 10 licenses in Alberta since the ending of the moratorium on May 31st, and we expect positive movement with our licence applications in British Columbia. We now have 30 stores open, with another 5 stores licensed and in development.  We expect continued revenue momentum as we roll out improved and streamlined store designs to enhance customer experience. With the recent filing of our final base shelf prospectus to provide us with flexible access to capital, we are confident in our ability to execute on our strategic growth initiatives to continue our leadership position in Canadian cannabis retail.”

The Company’s current portfolio of 35 licensed locations is split as follows:

  • 25 NewLeaf Cannabis™ stores in Alberta
  • 9 Meta Cannabis Supply Co.™ stores in Manitoba
  • 1 Meta Cannabis Supply Co.™ store in Saskatchewan

The newest retail location opened August 20, 2019:
NewLeaf Cannabis – Falconridge
55 Castleridge Blvd NE, Calgary

Previous announcements regarding NAC’s retail store expansion may be found through the following links:

August 8, 2019National Access Cannabis Corp. Continues Growth by Announcing Licence to Open a New Retail Cannabis Store in Alberta for a Total of 35 Licensed Retail Stores Across Canada and New Store Opening Update

July 30, 2019National Access Cannabis Corp. Continues Growth by Announcing Licences to Open Two New Retail Cannabis Stores in Alberta for a Total of 34 Licensed Retail Stores Across Canada

July 25, 2019National Access Cannabis Corp. Continues Growth by Announcing Licences to Open Two New Retail Cannabis Stores in Alberta for a Total of 32 Licensed Retail Stores Across Canada

July 3, 2019National Access Cannabis Corp. Continues Growth by Announcing Licences to Open Two New Retail Cannabis Stores in Alberta for a Total of 30 Licensed Retail Stores Across Canada

May 31, 2019National Access Cannabis Corp. Responds to the AGLC Lifting the Moratorium on Cannabis Retail Stores in Alberta

 

SOURCE National Access Cannabis Corp.

Continue Reading

Cannabis

Flower One’s Second Quarter Highlighted by Industry Leading Cultivation Performance

Published

on

Reading Time: 3 minutes

 

Flower One Holdings Inc. (the “Company”) (CSE: FONE) (OTCQX: FLOOF), a leading cannabis cultivator, producer and innovator in Nevada, today reported its financial and operating results for the second quarter ended June 30, 2019. All amounts are expressed in U.S. dollars unless indicated otherwise.  Now operating in a state of ongoing weekly harvests following the completed conversion of its Nevada greenhouse and its inaugural harvest announced on June 11, 2019, the Company confirmed today that its second quarter financial and operational performance has resulted in a cultivation yield performance of 38.3 grams per square foot, per harvest cycle, at an average cost per gram of $0.45.

In addition, the Company announced that it has completed an initial harvest in all eight of its flower zones and has commenced harvesting of its second cycle of planted cannabis.   The success of its cultivation performance through the second quarter has resulted in a year-to-date tenfold increase of the Company’s biological assets and inventory to $56.1M further strengthening its balance sheet. At the quarter end, the Company held more than 14,000 pounds of dry cannabis inventory. Flower One’s dry cannabis will now transition to the Company’s 55,000 square-foot production facility to generate a wide variety of the most in demand cannabis products and brands from across the United States.

“Achieving a cultivation yield performance of 38.3 grams per square foot and doing so at a cost of $0.45 per gram, firmly establishes us as one of the leading large-scale cannabis cultivators in North America and the world,” said President and CEO, Ken Villazor.

“We are extremely proud of these results and what they signal not only for the future of Flower One, but also for our ever-expanding brand and retail partner portfolio, and valued shareholders. This clearly demonstrates our ability to fulfill our promise of providing the industry’s first seed-to-shelf solution for cannabis brands and retailers,” added Kellen O’Keefe, Chief Strategy Officer.

Other Q2 highlights:

  • Entered eighth brand partnership – plus three more subsequent to the quarter;
  • Obtained debt financing of up to $30 million to accelerate market roll-out;
  • U.S. trading upgraded to OTCQX Best Market from OTCQB in May.

Second quarter financial results

The Company’s operational activities during the quarter largely focused on advancing the conversion of its 455,000 square foot greenhouse and production facility for cultivating high-quality cannabis at scale which was completed during the quarter.

The Company recorded cannabis inventory of $25.4 million and biological assets of $30.6 million as a result of the cultivation activities during the six months ended June 30, 2019.  Additionally, the Company invested $41.0 million in property, plant and equipment primarily for the Nevada greenhouse facility.

Revenue for the quarter was $636 thousand. The Company began recording revenue on November 9, 2018 subsequent to the acquisition of the assets of NLVO. As such, there was no revenue for the comparable period of 2018. All revenue for the quarter was from the NLVO operations. The Company expects to begin earning revenue from the sale of products from its the flagship greenhouse facility starting in the third quarter.

Net income was $19.1 million mainly driven by a fair value gain of $37.3 million on the growth of biological assets, partially offset by cost of goods sold of $844 thousand and $1.8 million in losses related to fair value adjustments on derivative liabilities, $461 thousand in share-based compensation, $3.1 million in finance expenses, $796 thousand in foreign exchange loss related to the convertible debenture, derivative liabilities and the Company’s cash balances held in Canadian dollars, $3.7 million in general and administrative expenses, and tax expense of $7.9 million mainly related to the fair value gain on the growth of biological assets.

As at June 30, 2019, Flower One had working capital of $41.9 million compared to a working capital deficit of $32.9 million at December 31, 2018.

Flower One’s 2019 second quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on August 13, 2019 and will be available on the same day on Flower One’s website at www.flowerone.com/investors/financial-reports.

Notice of conference call

Management of Flower One will host a conference call at 8:30 a.m. ET on Wednesday, August 14, 2019 to review recent and upcoming milestones. You can join the call by dialing 647-427-7450 or 1-888-231-8191. Please dial 647-427-7450 or 1-888-231-8191 approximately 15 minutes prior to the call to secure a line. You will be put on hold until the conference call begins. A replay of the conference call will also be available until Wednesday, August 28, 2019. To access the archived conference call, please dial 1-855-859-2056 and enter the conference code 2435459.

A live audio webcast of the call will be available at http://bit.ly/FONE2019Q2. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

 

SOURCE Flower One Holdings Inc.

Continue Reading

Cannabis

Sunniva Provides Update On California Operations

Published

on

Reading Time: 3 minutes

 

Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services, today provided an operational update and outlook for its U.S. operations.

Sunniva California Campus

The Company has recently been advised by our general contractor that connection of certain utilities to the glasshouse in Cathedral City, California have been delayed for several months. In addition, the longer than expected time to closing of the sale of Sunniva Medical Inc. to CannaPharmaRx, Inc. has limited the amount of cash available for the ongoing funding of the glasshouse which has created additional delays in the current schedule.  The expected date for onboarding of genetic material and plants for phase one of the 325,000 square foot Sunniva California Campus is now anticipated to be early 2020. The developer and Sunniva have been disappointed with the overall progress of the glasshouse. As a result, the parties have reorganized the project management team and have engaged an internationally recognized construction consulting firm to manage the project through the final stages of construction and commissioning of the facility. Both parties believe that these changes will greatly influence the ability to achieve the revised estimated time to completion.

“Today’s announcement of the deferral of our previously planned operational date is disappointing, however, we do not feel that this setback will have an impact on the long term value that may be created from the glasshouse and we remain confident that the cannabis grown in this facility will be of the highest quality in the industry.” said Dr. Anthony Holler, CEO of Sunniva.

Branded Cannabis Product Sales

The Company has been prioritizing available capital towards the completion of the glasshouse and as a result has reduced the amount of cash allocated to the purchase of biomass for use in the Company’s Extraction Facility and to the purchase of third party flower to be used in branded cannabis sales. As a result of this decision, the Company will not achieve its previously announced 2019 revenue estimate of USD$55$60 million from sales of Sunniva branded products.

Preliminary Q2 2019 Revenue

The Company is announcing preliminary revenue of $5.3 million for the three-month period ended June 30, 2019. This represents an 18% increase over the $4.5 million in revenue generated in the comparative three-month period from 2018. At the end of June 30, 2019, the Company had generated approximately $19.5 million in revenue in 2019.  Gross profit margin for the second quarter of 2019 is expected to be a loss of approximately $1 million primarily due to the lower sales of cannabis products in California, while continuing to bear the fixed operational costs of the respective facilities.

“We are pleased with the performance of our operations in the first half of the year. The $19.5 million in revenue is greater than the total revenue generated in all of 2018.” Said Kevin Wilkerson, President of Sunniva, Inc. “We have demonstrated our ability to produce large volumes of cannabis products and combined with our distribution and packaging capabilities, we have been able to successfully deliver that product into the California market.”

Further information regarding the revised timeline for expected completion of the Sunniva California Campus and an updated financial outlook for the remainder of fiscal 2019 will be provided in the Q2 2019 Earnings Release.

Q2 2019 Earnings Release Date

The Company plans to release financial results for the second quarter 2019 and provide a corporate update on its Canadian and U.S. operations, after market close on Thursday August 29, 2019.

The Company’s executive management will discuss the results during a conference call on Thursday, August 29, 2019 at 5:00 pm Eastern Time / 2:00 pm Pacific Time.  To participate in the call please dial 1-800-319-4610, or (604) 638-5340.  An audio replay will be available shortly after the call by dialing 1-855-669-9658 or (604) 674-8052 and entering code 3557.  The replay will be available for two weeks following the call.

For more information please visit: www.sunniva.com.

To be added to the Sunniva email distribution list please register at www.sunniva.com/email-alerts.

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.

 

SOURCE Sunniva Inc.

Continue Reading

Trending Online

Grassnews is a news publishing website which digests / hand picks the latest news about the cannabis industry, and serves them to you daily.

Contact us: pressroom@grassnews.net

© Grassnews.net 2019 - part of PICANTE Media. All rights reserved. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania