It’s time for your Daily Hit of cannabis financial news for April 8, 2020.
On The Site
Charlotte Figi came to fame as the sweet little girl who suffered hundreds of seizures a day from a rare condition called Dravet Syndrome. She was the patient that inspired the Colorado-based Stanley Brothers to create the cannabidiol (CBD) heavy version of cannabis to treat her condition back in 2011. The response was somewhat miraculous.
Unfortunately, Charlotte has passed away from COVID 19 at the age of 13. According to reports, she had tested positive and went to the hospital. She was released on Sunday, but apparently took a turn for the worse and returned. A family friend posted on Facebook “Charlotte is no longer suffering. She is seizure-free forever.” The family has requested privacy.
Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) delivered its financial results for the three and 12 months ending December 31, 2019. Revenue rose 13% and 146% respectively for those time periods and the company reaffirmed its guidance.
Trulieve is one of the few cannabis companies that is reporting net income versus its competitors who have mostly reported huge net losses. The stock was lately selling at $9.85, above its year’s low of $5.74 and below the 52-week high of $16.01.
MassRoots (OTC:MSRT) was once the darling of the cannabis industry. CEO Isaac Dietrich was able to raise millions of dollars as he built the “Facebook” of cannabis. The premise was that cannabis consumers would want a friendly social media site to connect with each other and then the ad dollars would be tremendous. That never happened.
Now, the SEC has posted a filing that it is going after the lead investor group in Massroots for stock price manipulation and organizing coordinated buying and selling movements. Dietrich is not a part of the lawsuit. Instead, the defendants are DOUGLAS LEIGHTON, BASS POINT CAPITAL, LLC, AZURE CAPITAL CORP., MICHAEL SULLIVAN, DAVID HALL, ZACHARY HARVEY, PAUL DUTRA, JASON HARMAN, and JESSICA GERAN.
Former Doyen Elements CEO Geoff Thompson has agreed to a settlement with the Securities and Exchange Commission for an amount over half a million. The settlement was related to stock fraud associated with Accelera Innovations and Synergistic Holdings.
Thompson has agreed to a payment of $350,000, representing profits gained as a result of the conduct alleged in the Complaint, along with prejudgment interest in the amount of $ 74,849.97, for a total of $424,849.97. In addition to that, Thompson has agreed to pay a civil penalty in the amount of $100,000 in the form of four payments of $25,000 each.
He is also barred from serving as an officer of a public company for five years and from participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock.
The price of HEXO Corp. (TSX: HEXO; NYSE: HEXO) plunged another 22% after shareholders learned that the company announced a $40 million offering. The stock was falling from its close of 69 cents to roughly 54 cents, down from its 52-week high of $8.40. The company said it expects to use the net proceeds from the Offering for working capital and other general corporate purposes.
In Other News
KushCo Holdings, Inc. (OTCQX:KSHB) reported financial results for its fiscal second quarter ended February 29, 2020. Net revenue decreased 14% from the prior year period to $30.1 million. On a GAAP basis, net loss was approximately $44.4 million, compared to approximately $8.9 million in the prior year period. Basic loss per share was $0.40 compared to $0.10 in the prior year period. Nick Kovacevich, KushCo’s Co-founder, Chairman and Chief Executive Officer, commented: “Despite a challenging market backdrop, we are pleased with how we executed according to our plan. Net revenue of $30.1 million was down 14% year-over-year and quarter-over-quarter due to a myriad of factors, namely a slower-than-anticipated rebound in demand for our vape hardware products, following the illicit market vape crisis; a slower-than-anticipated start to our hemp trading business; and continued weakness in the California market, which has been exacerbated by the recent COVID-19 pandemic.