doomed
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Cannabis MSO Acreage aims to raise $10 million amid ‘deteriorating’ finances
MJBizDaily
June 6, 2024
A day after Canadian cannabis company Canopy Growth Corp. exercised its option to acquire Acreage Holdings, the American multistate operator announced a private placement with institutional investors to raise $10 million.
The offering, priced at $833 per unit, is expected to close by Thursday and subject to customary closing conditions, according to a Wednesday news release.
The proceeds are earmarked for working capital and general corporate purposes as Acreage faces what it called “deteriorating financial” conditions.
Defaulting on loans
Acreage said in the release it has explored numerous funding options the past several months “to continue ongoing operations” and “service its outstanding debt obligations.”
Citing a lack of funding options, unfavorable market conditions and high debt, Acreage said it has defaulted on outstanding debt obligations.
On April 20 and May 10, the company said, it received a default letter notice on loans due in January 2026.
Canopy Growth reached an agreement in April 2019 to acquire New York-based Acreage.
The acquisition is part of Canopy’s expansion into the United States.
The Smiths Fall, Ontario-based company created Canopy USA, a U.S.-domiciled holding company, in 2022 to facilitate its move into the American marijuana market.
‘Sufficient funding’ lacking
Acreage painted a bleak picture if it fails to secure funding immediately.
“The company currently does not have sufficient funding to continue as a going concern, and therefore, if the offering is not completed, and no alternative arrangements are secured, there is significant doubt about the company’s ability to continue,” the release noted.
“If this offering does not proceed, there is significant doubt that management will be successful in securing alternative funding or that management will have sufficient time to implement any alternative transaction.”
As part of the offering, each investor in the private placement will have the right to require Canopy USA to purchase the notes and warrants if:
The acquisition is not completed 15 months from the private placement closing date.
The acquisition is terminated at any time before the maturity date.
The company has an insolvency issue.
When the acquisition closes – likely in the first half of 2025 – Canopy USA will own 100% of the bag issued and outstanding shares of Acreage.
thetinman
2 days ago
another story released by PTOP early this am with not much buying as usual🙄
https://www.abc27.com/business/press-releases/ein-presswire/717009129/mobicard-experienced-832-user-growth-in-two-weeks/
PTOP should join Truth social too!!
Mobicard™ Experienced 832% User Growth in Two Weeks
NEWS PROVIDED BY
EIN Presswire
Jun 04, 2024, 10:30 AM ET
In an episode of Stock Day Media podcast, Joshua Sodaitis, Chairman & CEO of Peer to Peer Network, spoke about Mobicard™, a cutting-edge digital business card.
Peer to Peer Network (NYSE:PTOP)
We're just killing it right now. ... we've seen a staggering 832% user growth rate in our first two weeks putting the app in the app store. We're just seeing a lot of users signing up.”— Joshua SodaitisCAMBRIDGE, MA, UNITED STATES, June 4, 2024 /EINPresswire.com/ -- In a groundbreaking episode of the Stock Day Media financial news podcast, Joshua Sodaitis, Chairman and CEO of Peer to Peer Network, was interviewed by podcast host Andrew Schmertz about Peer to Peer’s innovative Mobicard™, a cutting-edge digital business card that is transforming professional networking.
### Introducing the Mobicard™: A Networking Powerhouse
Joshua Sodaitis shared the inception story of the Mobicard™, a tool that transcends traditional business cards by integrating multimedia capabilities and real-time analytics. This platform is designed to enhance the way professionals connect and understand their networking efforts.
### A Surge in User Adoption
The Mobicard™ 1.5 app experienced an unprecedented 832% growth in user base within the first two weeks post-launch. This surge is attributed to strategic timing, responsive adaptation to user feedback, and strong shareholder support.
### Mobicard™ Stands Out with Two Existing Granted Patents
Unlike its competitors, Mobicard™ differentiates itself by having 2 existing granted patents for its groundbreaking technology. Founder Joshua Sodaitis also announced that Mobicard™ will be filing a third patent very soon, highlighting Mobicard’s™ continued pursuit of innovation.
### The Next Step: Mobicard™ 2.0
Peer to Peer Network is set to release the Mobicard™ 2.0 app, which will cater to businesses with enterprise-level features. The new version aims to redefine corporate networking and client engagement.
### Innovative Monetization and User Incentives
The podcast delved into the Mobicard’s™ revenue strategies, including mobile advertising and premium subscriptions. The reintroduction of the Mobicoin program is anticipated to incentivize user engagement and expand brand advocacy.
## Experience the Networking Revolution
The Mobicard™ app is currently available for download on the Google Play Store and the Apple Store. Join the movement towards a more interconnected and insightful professional landscape.
## About Stock Day Media Podcast
The Stock Day Media Podcast is a leading source for exclusive interviews and insights from the forefront of technology and business. Host Andrew Schmertz brings listeners into conversations with industry innovators and trendsetters, exploring the future of business and technology.
For further details and to stay updated on the latest tech and business trends, tune in to the Stock Day Media Podcast.
Joshua Sodaitis
Peer to Peer Network
+1 617-481-1971
info@freemobicard.com
Visit us on social media:
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awesomesound
2 weeks ago
Stock exchanges not likely to budge under Schedule III
Schedule III won't make cannabis federally legal in the eyes of the stock markets.
While many things likely will change if cannabis is rescheduled from a Schedule I drug to Schedule III under the Controlled Substances Act, the stance of the top stock exchanges in the U.S. probably won’t be one of them.
Speculation has run rampant that rescheduling could open up the New York Stock Exchange and the Nasdaq marketplace to domestic cannabis companies under such a change. But at least one expert says, not so fast.
Why the where matters
Currently, most American-based cannabis companies can only trade on the Over-the-Counter, or OTC, Markets in the U.S. due to cannabis being federally illegal. As a result, they often turn to Canadian exchanges like the Canadian Securities Exchange (CSE) or the Toronto Stock Exchange (TSX).
The drawback to being listed on the OTC Markets is that many institutional investors won’t invest in OTC-listed companies. This limits the market for these stocks. Similarly, the Canadian exchanges are much smaller than the U.S. markets, which limits the financial benefits.
Slow the roll
Ride-or-die cannabis investors have been hoping to get the stocks uplisted to the NYSE or Nasdaq based on rescheduling – but that might be wishful thinking.
Neither the NYSE nor the Nasdaq would comment on whether they would open up to cannabis stocks upon rescheduling. And according to Nasdaq’s published rules and regulations for listings, many cannabis operators in the U.S. would still be tagged with federally illegal operations despite rescheduling, which would keep them ineligible for listing.
“Schedule III, even when final, will not lead the New York Stock Exchange or Nasdaq to list U.S. plant-touching companies. Those companies will continue to be violating the Controlled Substance Act,” Eric Berlin, a partner at the legal firm Dentons told Green Market Report.
“Instead of selling an illegal controlled substance illegally, they will be selling a legal controlled substance illegally. And the problem is that none (of those products) will have the required DEA registrations,” he added. “And the DEA has said that it does not intend to give any registrations or to register any party that is simultaneously violating federal law.”
Berlin noted that the exchanges probably have to power to lean on banks to clear the stocks if it wanted the listings, but the risk outweighs the reward. An updated Cole Memo would also be insufficient to give them comfort. Under former President Donald Trump, Attorney General Jeff Sessions rolled back gains by the Obama administration around cannabis. If Trump is reelected, it could happen again.
Stocks on the rise
Investors, though, seem unbothered by this pesky detail, and the price of cannabis stock shares has popped.
The AdvisorShares Pure US Cannabis ETF was selling at roughly $7.36 before the news of rescheduling broke; it popped to a 52-week high of $11.36 just after. It was lately selling at $9.21, which is still up 25% from the pre-announcement price.
Berlin believes the rising stock valuations are warranted as the tax benefits to cannabis companies will be substantial under Schedule III. However, uplisting is much further in the distance.
“I think that this is an area that they are waiting for greater congressional action,” he said. “And the fact is that I don’t think Schedule III gives them the legal path forward, quite frankly.”
And you are telling me I'm losing Benefit.
2 Oz's of Mids, for $100 no shipping cost me another $10 for a gram of Hash Free shipping not losing one bit. Not from stockmarket weed
awesomesound
3 weeks ago
CGC carries “substantial credit risk” such that default is a real possibility
Canopy Growth’s planned entry into the U.S. marijuana market has hit another hurdle – this time over the cannabis producer’s ties to its largest investor.Fitch Ratings downgraded its credit assessment of the Ontario, Canada-based Canopy to CCC-, one of its lowest ratings.
It’s the second time in six months that Canopy’s credit rating has come under scrutiny from Fitch.
The New York-based ratings company said it believes the strategic link between Canopy’s biggest investor, alcohol giant Constellation Brands (CBI), and the licensed cannabis producer “has materially diminished” after Canopy announced its plan to speed its entry into the U.S. THC market.
“As such, Canopy’s ratings no longer benefit from a one-notch uplift from its standalone credit profile,” Fitch said.
In a statement to MJBizDaily, a Canopy spokesperson said Constellation Brands remains vested in Canopy’s success as a major shareholder “and fully supports this strategy as the best way to position Canopy for near- and long-term success.”
The spokesperson added that Canopy is making the move to take its destiny into its own hands by fast-tracking its entry into the U.S. marijuana market and taking full ownership of its investments there.
Constellation executives touched on their commitment to Canopy and the cannabis industry in a conference call with analysts on Oct. 6.
After being asked how long Constellation is willing to “wait” for U.S. legalization and how he views the alcohol company’s stake in the cannabis producer changing, Constellation CEO William Newlands said, “I wouldn’t expect you to see the size of our investment in that change.”
Newlands admitted he “failed miserably” in predicting the pace of U.S. legalization but also said he’s “hopeful” there will soon be progress.
In its latest update, Fitch said it downgraded the long-term issuer default ratings for Canopy Growth from CCC to CCC-.
Fitch also lowered the credit rating of the senior secured term loan facility from B/RR1 to B-/RR1.
Fitch’s action comes less than a week after Canopy announced a plan to speed its entry into the American market.
Rather than waiting for the United States to legalize at the federal level, Canopy launched Canopy USA, which would purchase the three American marijuana businesses Canopy had agreed to buy after the U.S. ended prohibition, pending various approvals.
Canopy’s proposal calls for Canopy USA, not Canopy Growth, to own the assets, and the Canadian business would hold nonvoting, exchangeable shares in Canopy USA.
“Fitch believes the transaction, as proposed, is subject to material execution risks including regulatory, shareholder and exchange approval,” the credit ratings agency said.
Stock exchange risk
Fitch isn’t the first to raise concerns about the deal.
The New York-based Nasdaq stock exchange objects to Canopy’s plan to eventually consolidate the financial results of Canopy USA.
By contrast, the Toronto Stock Exchange (TSX) suggested that the proposed structure is compatible with the exchange’s rules.
Neither the TSX nor the Nasdaq would answer specific MJBizDaily questions.
“Canopy’s credit agreement contains affirmative covenants to comply with all policies and listing requirements of public securities exchanges,” the Fitch notice acknowledged, adding: “A failure to remain listed on at least one exchange would be a condition for an event of default.”
Fitch noted that Canopy USA would need to maintain funding separate from its parent company.
t’s the second time in six months that Canopy’s credit rating has come under scrutiny from Fitch.
The New York-based ratings company said it believes the strategic link between Canopy’s biggest investor, alcohol giant Constellation Brands (CBI), and the licensed cannabis producer “has materially diminished” after Canopy announced its plan to speed its entry into the U.S. THC market.
“As such, Canopy’s ratings no longer benefit from a one-notch uplift from its standalone credit profile,” Fitch said.
In a statement to MJBizDaily, a Canopy spokesperson said Constellation Brands remains vested in Canopy’s success as a major shareholder “and fully supports this strategy as the best way to position Canopy for near- and long-term success.”
The spokesperson added that Canopy is making the move to take its destiny into its own hands by fast-tracking its entry into the U.S. marijuana market and taking full ownership of its investments there.
Constellation executives touched on their commitment to Canopy and the cannabis industry in a conference call with analysts on Oct. 6.
After being asked how long Constellation is willing to “wait” for U.S. legalization and how he views the alcohol company’s stake in the cannabis producer changing, Constellation CEO William Newlands said, “I wouldn’t expect you to see the size of our investment in that change.”
Newlands admitted he “failed miserably” in predicting the pace of U.S. legalization but also said he’s “hopeful” there will soon be progress.
In its latest update, Fitch said it downgraded the long-term issuer default ratings for Canopy Growth from CCC to CCC-.
Fitch also lowered the credit rating of the senior secured term loan facility from B/RR1 to B-/RR1.
Fitch’s action comes less than a week after Canopy announced a plan to speed its entry into the American market.
Rather than waiting for the United States to legalize at the federal level, Canopy launched Canopy USA, which would purchase the three American marijuana businesses Canopy had agreed to buy after the U.S. ended prohibition, pending various approvals.
Canopy’s proposal calls for Canopy USA, not Canopy Growth, to own the assets, and the Canadian business would hold nonvoting, exchangeable shares in Canopy USA.
“Fitch believes the transaction, as proposed, is subject to material execution risks including regulatory, shareholder and exchange approval,” the credit ratings agency said.
Stock exchange risk
Fitch isn’t the first to raise concerns about the deal.
The New York-based Nasdaq stock exchange objects to Canopy’s plan to eventually consolidate the financial results of Canopy USA.
By contrast, the Toronto Stock Exchange (TSX) suggested that the proposed structure is compatible with the exchange’s rules.
Neither the TSX nor the Nasdaq would answer specific MJBizDaily questions.
“Canopy’s credit agreement contains affirmative covenants to comply with all policies and listing requirements of public securities exchanges,” the Fitch notice acknowledged, adding: “A failure to remain listed on at least one exchange would be a condition for an event of default.”
“Fitch will continue to review Canopy’s corporate structure and exposure to U.S. THC assets that are federally illegal and whether that increases rating concerns,” the ratings company said.
Fitch also noted “significant execution risks” in Canopy’s premiumization strategy and an uncertain path to profitability, highlighting significant lost market share in Canada.
“This has delayed production of a consistent, higher-quality supply at commercial scale and generated weak operating results with an uncertain path to profitability,” according to the Fitch note.
“Canopy hopes to counter these issues with a change in its genetics and cultivation strategy to higher quality cannabis with the right attributes … for the premium and mainstream flower, pre-rolls, edible and vape markets, while using the value segment as an outlet strategy.”
On that point, Constellation’s executives said during the analyst conference call they continue to believe that Canopy’s focus on “premiumizing” its cannabis branded portfolio in Canada “is appropriate,” and they remain supportive of Canopy’s efforts to strengthen their emerging consumer packaged goods brand distribution.
Fitch said further negative rating actions could be taken if the company’s “premiumization” cultivation strategy fails, or if it pursues a repayment of the remaining 2023 notes that Fitch considers a distressed debt exchange, if liquidity appears constrained, such that a default is probable.
Canopy shares trade as WEED on the Toronto Stock Exchange and as CGC on the Nasdaq.
https://mjbizdaily.com/fitch-chops-canopy-rating-citing-cannabis-producers-constellation-link/
awesomesound
1 month ago
Canadian cannabis insolvencies persist in 2023 amid industry woes
Oh I am correct
Financially distressed cannabis companies continued to seek refuge in Canadian insolvency law in 2023, although such insolvency filings under one statute declined from 2022.
This year’s cannabis insolvencies included big names such as retailer Fire & Flower and producer Aleafia Health, highlighting the industrywide struggle to keep operating in the face of low marijuana prices, high taxes and trouble accessing new funding.
In the cannabis sector, a number of CCAA cases have featured a debtor-in-possession loan from a would-be buyer, who puts in a stalking-horse bid to buy the insolvent company or some of its assets.
Notable Canadian cannabis CCAA filings in 2023 included:
Major retail chain Fire & Flower Holdings, which was acquired through insolvency proceedings by privately held retailer Fika Cannabis.
Producer Aleafia Health, which is in the process of being purchased by U.S. multistate cannabis company Red White & Bloom Brands.
Phoena Group, risen from the ashes of predecessor company CannTrust, which faced a major scandal involving growing plants in unlicensed areas of its facility.
Other CCAA filings involving marijuana companies and cannabis-related entities this past year included:
Chalice Brands, a Canadian company with cannabis assets in Oregon.
Investment company Plant-Based Investment Corp., previously known as Cannabis Growth Opportunity Corp.
Capcium, which created softgel capsules for the cannabis industry and other sectors.
Beverage company BioSteel Sports Nutrition, owned by cannabis company Canopy Growth Corp.
https://mjbizdaily.com/canadian-cannabis-insolvencies-persist-in-2023/
awesomesound
1 month ago
So funny, some people (investors) have no idea about cannabis in any way, If you don’t get out of canopy,…you will lose your pants
I dont need too buy anything from your investment money, chronic consumers cant afford too buy over priced, third party markups and taxes on top, this is why the stockmarket weed corporations are bankrupt and in credit protection, they are behind millions in tax debt, isn't that the main reason for government legalization ?
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Bazwar6
19 hours ago
hunterj20
1 month ago
TheFinalCD
1 month ago
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