Chemistree Technology Inc. (CSE: CHM) (US OTCQB: CHMJF) (the “Company” or “Chemistree”), has been requested by OTC Markets Group to comment on recent promotional activity. The Company first became aware of certain promotional third-party newsletter activities through a notification by OTC Markets on June 11, 2019.
The Company takes its investor relations practices seriously, including its obligations to release material information which might reasonably be expected to have significant effect on the market price or value of its securities.
Until recently, trading volumes for the Company’s common shares on the OTCQB have been relatively minimal and sporadic. The Company notes that trading activity increased in early April 2019 and believes that activity can be attributed to several factors, namely: the successful conclusion of a short-form Prospectus offering and concurrent private placement on March 29, 2019, the subsequent news flow of some material advancements of the Company’s business plan and the initiation of a broad investor awareness campaign undertaken by the Company. In July 2018, Chemistree engaged Contact Financial Corp. of Vancouver, BC (“CFC”) and Adelaide Capital Markets Inc. of Toronto(“Adelaide”) to provide strategic communications advice and investor relations services, respectively. Subsequently, in October 2018, the Company engaged Native Ads Inc. of New York City to provide strategic digital media services, corporate media content consulting, sponsored article development, banner ad creative development, native ad creative development, social ad creative development, marketing, media buying, media placement, ad spend and data analytical services. These services constitute, in part, the promotional activity that is the subject of the OTC Markets Group’s inquiry. In April of 2019 the Company engaged three firms: Investing News Network of Vancouver (“INN”) for a one-year period; Global Financial Network Ltd. of Toronto (“Global”) for a one-month period; and Wizard Media Group BVBA of Aspelare, Belgium (“Wizard”) to assist the Company with an investor awareness campaign with an expected duration of six-months. These firms were the only third parties engaged by the Company to provide investor relations services, public relations services, marketing, or other related services including the promotion of the Company or its securities in the last 12 months.
The Company is not aware of any programs not directly authorized by the Company or by one of the Company’s authorized service providers, including those listed above. In all such approved programs, the Company was directly involved in authorizing the content created by third-party service providers and the service providers were paid to distribute the content through their proprietary distribution channels and their industry relationships. All material information used in these marketing campaigns was already disseminated in the press releases and regulatory filings in accordance with applicable securities laws and no new information was included in the marketing campaigns that was not otherwise available through the Company’s public filings or the website. The Company is not aware of any false or misleading content contained within the content distributed by those listed above.
After due inquiry, the Company confirms that it is not aware of any of its directors and control persons, its officers, directors, any shareholders owning 10% or more of the Company’s securities, or any third-party service providers that may have, directly or indirectly, been involved in any way (including payment of a third-party) with the creation, distribution, or payment of promotional materials related to the Company and its securities, other than that which has been disclosed in this news release.
After due inquiry of management, the directors, control persons, and any third-party service providers, the Company, its officers, directors, any controlling shareholders, or any third-party service providers have sold or purchased the Company’s securities within the past 90 days, except that the Company can confirm that a director and officer purchased 50,000 shares on June 5th through the facilities of the Canadian Securities Exchange (the “CSE”), and that the required regulatory filing for this purchase was made on June 6th. This director has not sold any shares. In addition, CFC has confirmed that it has purchased 98,500 shares and sold 103,500 shares through the facilities of the CSE in the last 90-days.
Other than as disclosed above, the Company has not engaged any third-party providers to provide investor relations services, public relations services, marketing, or other related services including the promotion of the Company or its securities in the last twelve months.
The Company has not issued any convertible instruments allowing conversion to equity securities at prices that constituted a discount to the current market rate at the time of the issuance of such convertible instruments. The Company has also not issued shares at a discount to the market price, except to the extent that such shares are issued pursuant to terms of convertible instruments (where as noted above, the exercise or conversion price was at or above the market price at the time of the issuance of the convertible instruments).
SOURCE Chemistree Technology Inc.
Flower One’s Second Quarter Highlighted by Industry Leading Cultivation Performance
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.
Sunniva Provides Update On California Operations
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.
Namaste Technologies Announces Changes to Board of Directors
Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that Kenneth Ngo, the Company’s Chief Financial Officer, has stepped down from the Board of Directors effective immediately.
“I wish to thank Kenneth for stepping onto the Board of Directors in December 2018 as we reshaped the Company. With the addition of Ken Jones and Andy Wilczynski, who can provide financial expertise to the board, Kenneth has decided to step down as a board member” said Meni Morim, Interim CEO of Namaste Technologies.
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