Investor Ideas Potcasts #559, Cannabis News and Stocks on the Move; (CSE: XTRX), (TSXV: HITI) (OTCQB: HITIF), (TSX: TGOD) (OTC: TGODF), (TSXV: KO)
Delta, Kelowna, BC - May 4, 2021 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today's podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
Listen to the podcast:
Investor Ideas Potcasts #559, Cannabis News and Stocks on the Move; (CSE: XTRX), (TSXV: HITI) (OTCQB: HITIF), (TSX: TGOD) (OTC: TGODF), (TSXV: KO)
Today's podcast overview/transcript:
Good afternoon and welcome to another episode of Investorideas.com "Potcast" featuring cannabis news, stocks to watch as well as insights from thought leaders and experts.
Today's podcast is sponsored by Phyto Extractions Inc. (CSE:XTRX), an agricultural-scale cannabis extraction, distillation and product manufacturer located in Langley, BC at its co-located Health Canada Licensed Standard Processing (extraction, no cultivation), Sales (extracts, topicals, and edibles) through Adastra Labs Inc. and Analytical Testing Laboratory through Chemia Analytics Inc. Adastra Labs also has a pending Health Canada R&D license amendment.
In today's podcast we look at a few public company announcements.
High Tide Inc. (TSXV: HITI) (OTCQB: HITIF), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, announced that it is taking another step towards solidifying itself as a major player within the U.S. e-commerce marketplace for accessories and hemp-derived CBD products, by entering into a definitive agreement pursuant to which High Tide will acquire 80% of Fab Nutrition, LLC., operating as FABCBD for US$20.64 Million, and will have a three-year option to acquire the remaining 20% of FABCBD at any time.
Founded in 2017 with its headquarters in Milwaukee, Wisconsin, FABCBD has quickly grown to become one of the most popular brands for hemp-derived CBD products across the U.S., including CBD oils, creams, gummies, and dog treats. In 2020 FABCBD had over 1.3 Million online impressions and an average order value of US$91.90. FABCBD's founder and sole shareholder, Josh Delaney, will join the High Tide team, as general manager of FABCBD, and will help with growing High Tide's CBD business globally.
"Investors will recall that just over two months ago we declared our intentions to ramp up acquisition activity at High Tide, and we had disclosed our approach to focus on businesses that were in the U.S., compatible with our ecosystem, and generating meaningful results. In this context, I could not be more thrilled to announce the acquisition of FABCBD," said Raj Grover, President and Chief Executive Officer of High Tide. "We evaluated numerous U.S. CBD opportunities and FABCBD clearly stuck out from the rest. FABCBD has been exceptionally run, having more than doubled revenue and EBITDA in each of 2019 and 2020, including generating terrific gross margins of 74% and EBITDA margins of 40% in 2020 - by far the highest of all CBD companies we evaluated. In addition to the company's financial profile, we were also attracted to FABCBD's corporate social responsibility initiatives and spirit of giving back - which are both ingrained in our DNA as well. With thousands of satisfied U.S. customers, the FABCBD brand is well positioned for international expansion. I am very excited to welcome Josh and the FABCBD team to the High Tide family," added Mr. Grover.
"We've entertained many potential partners over 2020, measuring strategic fit, team dynamics and company mission. When we met Raj and the High Tide team, we instantly felt they had the right organization for us to align with. High Tide has a very complementary culture to FABCBD, with a similar EBITDA-focused approach that we appreciate." said Josh Delaney, CEO of FABCBD. "Our team is very important and couldn't be more excited to work with High Tide. I look forward to being a meaningful shareholder of High Tide and leveraging its resources and reach to continue driving the company's CBD business globally," added Mr. Delaney.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF), a leading producer of premium certified organically grown cannabis, announced the launch of its refined line of premium organic whole flower products available to provincial boards across Canada.
"Our new leadership team started in the Fall of 2020 with the mandate to restore TGOD's positioning as a premium organic cannabis brand. While our 2.0 portfolio is top notch and attracts a certain demographic, whole flower is what defines a truly premium brand in today's market. After soliciting feedback from budtenders and customers, our team overhauled our methods and processes, and that's how CleanCraft™ was created," commented Michel Gagne, TGOD's Chief Operating Officer. "Bold, obsessed with quality and precision, and passionate about cannabis. Those are the words I would use to describe the team we have assembled here at TGOD. I am extremely proud of our improved product portfolio; it is day and night compared to our previous flower. Boasting a THC content of at least 20% and an increased percentage of fragrant terpenes, our whole flower is a total sensory delight. When someone opens a TGOD jar, they get large buds, vibrant colours, and rich aromas. It offers a consistent, clean, best in class consumption experience."
The commitment to quality and consistency includes large, hand-selected top cola buds, greater than 20% THC potency in each lot, and a moisture pack in each jar to maintain optimum humidity levels from the moment it is packed. TGOD is reclaiming its position as the premium organic cannabis provider in Canada. "We are 100% committed to quality, consistency, and transparency, and want to ensure that only top-quality flower is in market. That's the TGOD Promise." added Gagne.
As part of its promise for quality, consistency, and high-THC level, any core TGOD flower skus stocked in provincial warehouses that did not meet the Company's strict quality standards have been pulled out of the market by TGOD and replaced with TGOD's new higher-quality flower. TGOD's new premium whole flower products are available to provincial boards nationally.
TGOD implemented a set of enhanced cultivation and processing methods to deliver on its promise of bringing an organically grown craft quality product to Canadian consumers.
- Certified organically grown
Not all cannabis is organic. TGOD grows beyond the standards set for the industry. All TGOD flower is organically grown and certified by Pro-Cert, an internationally recognized organic accreditation body. Growing organically is how nature intended.
- Grown in Living Soil
TGOD's living soil is a thriving ecosystem full of beneficial microbes, enzymes, and minerals. Its ingredients are sourced from all over Canada, including glacial rock dust, maple syrup, and more, and there's a functional purpose for each of them. These inputs act as a buffet for the plant to select from based on its needs. Whereas many companies grow in an artificial medium and try to manually "feed" the plant, TGOD feeds the soil allowing nature to do what it does best.
- Natural Elements
TGOD's hybrid greenhouse is designed to bring the best of nature indoors. It uses a combination of sun and full-spectrum LED light. For hydration, the Company uses naturally purified, captured rainwater. It also developed a proprietary aeration system that maximizes clean airflow from the bottom upward through the canopy to maintain ideal conditions.
- Hand-selected and Trimmed
The Company's harvesting team selects only the top colas, the largest buds with higher cannabinoid and terpene content, to be sold under the TGOD brand. Each bud is meticulously trimmed to preserve the integrity of its shape and the rich trichomes that cover it.
- Slow-Dried and Cured
TGOD's organic whole flowers dry at a cool temperature to let the cannabinoids continue to develop after being harvested. Each bud is given enough time to develop its full flavour and aroma. In doing so, the oxygen and other compounds react with chlorophyll in the flowers to improve taste, intensify terpene flavours, and offer an overall better consumption experience.
In parallel with the implementation of CleanCraft™, TGOD is improving its packaging. The Company's iconic glass jar will continue to be used, but the labels will now feature additional information to provide further transparency on flower quality and profile. Not only will the percentage of terpenes be indicated, but also the dominant three terpenes in each lot. Complete COAs will continue to be available on TGOD's website for the full terpene profile.
TGOD's portfolio of premium organic whole flowers currently comprises four High-THC strains, with plans to introduce additional innovative strains.
1. Organic Sugar Bush (20-25% THC)
a. Certified organically grown in living soil, this trichome-covered high-THC Sativa gets its Sugar Bush name from the maple tree forests in Quebec - the source of maple syrup that is used to nurture the soil it grows in. The result, a strain that is full of aroma - bringing with it a fruity, sweet scent that is reminiscent of ripe melon and passion fruit.
2. Organic Rockstar Tuna (20-25% THC)
a. Certified organically grown in living soil, this popular Indica strain was originally created through crossing the classic strains Tuna Kush and Rockstar. It has made a name for itself thanks to its intense aroma, gorgeous buds, and unique flavour profile that combines fruity-skunk and spicy herbs.
3. Organic Fire (20-25% THC)
a. Certified organically grown in living soil, this Indica-dominant flower finishes with dark leaves and fire red pistils. Organic Fire comes in chunky dense buds covered in frosty trichomes that glitter against its dark leaves. Pleasant fruity aromas are balanced with an earthy, woody undertone, and brings with it a subtle fruity sour flavour that is made to be savored.
4. Organic LA Con (20-25% THC)
a. Certified organically grown in living soil, TGOD's Organic LA Con is dense, heavy-hitting Indica. This classic strain is a perfect balance of fruity OG flavours and earthy tones.
Kiaro Holdings Corp. (TSXV: KO) announced its fourth quarter and year end financial results for fiscal year 2021 ended January 31, 2021. All amounts, unless specified otherwise, are expressed in Canadian dollars.
"Fiscal year 2021 was a transformational year for Kiaro where we showcased that we are one of the best-in-class cannabis retail operators," stated Daniel Petrov, Chief Executive Officer of Kiaro. "Our significant revenue growth for fiscal year 2021 reflects the rapid scale of our business segments and the execution capabilities of the entire Kiaro team. Looking ahead into Fiscal 2022, we look forward to the continued engagement from cannabis consumers, growing our brand and market presence, and opportunities for accelerated revenue growth."
"I want to thank the entire Kiaro team for their effort, dedication and flexibility in the face of the Covid-19 pandemic," continued Mr. Petrov. "Safety for our staff and customers is our number one priority. Given the changing nature of safety protocols through this difficult time, the Kiaro team has been able to ensure safety while continuing to provide unforgettable customer experiences for all our customers."
Some of the financial highlights included:
- Record revenues of $17.1 million for fiscal year 2021, an increase of 230%, compared to $5.2 million the year prior
- Same store sales increase of 58% year over year
- Gross margin of 38.1% for the retail operations during fiscal year 2021 compared to 35% the prior year
- General and administrative expense for fiscal year 2021 substantially decreased to 12% of revenue compared to 61% in the prior year
- Total HQ salaries decreased to 10% of revenue compared to 46% in the prior year
- Convertible debt and accrued interest of $6.5M converted to equity and settlement of $1.75M in promissory notes in fiscal year 2021, leaving only $895K in total principal debt remaining
- Equity Financings totaling $4M in gross proceeds completed in fiscal year 2021 and subsequent to year end
- Milestone completion of qualifying transaction by reverse-take-over of DC Acquisition Corp, and listing on TSX Venture under the symbol 'KO' in October 2020
- Appointment of Eleanor Lynch as Chief Operating Officer, and Janet Hoffar as Chief Financial Officer, and achieving gender-equality on the executive leadership team
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today reported that it has closed the previously announced acquisition of GuadCo, LLC and KCR Holdings LLC (collectively "KCR") for an implied enterprise value of US$70 million. The transaction adds three retail dispensaries located in Bethlehem, Allentown and Stroudsburg to complement the Company's existing retail footprint in Southeastern Pennsylvania.
As an operator of three well managed dispensaries in the Northeast region, KCR expands TerrAscend's retail footprint, diversifies the Company's customer base and enhances margins through deeper vertical integration of its market leading brands Kind Tree, Ilera, and Prism.
"With the closing of this acquisition, TerrAscend doubles our owned footprint to six dispensaries and further solidifies our leadership position as a branded manufacturer in Pennsylvania, where we distribute our products to 100% of the dispensaries in the Commonwealth," said Jason Wild, Executive Chairman of TerrAscend.
Once again, today's podcast is sponsored by Phyto Extractions Inc. (CSE:XTRX), an agricultural-scale cannabis extraction, distillation and product manufacturer located in Langley, BC at its co-located Health Canada Licensed Standard Processing (extraction, no cultivation), Sales (extracts, topicals, and edibles) through Adastra Labs Inc. and Analytical Testing Laboratory through Chemia Analytics Inc. Adastra Labs also has a pending Health Canada R&D license amendment.
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