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Is Bitcoin Back in 2019 A Few Technical Signals To Consider

bitcoin back 2019

Is Bitcoin Back? A Few Technical Signals To Consider

After a brutal 2018 for cryptocurrency investors, bitcoin has bounced back with a vengeance so far in 2019. Bitcoin prices are up 36 percent year-to-date to above $5,000, and a bullish technical signal this week has bitcoin bears on notice.

Golden Cross

Bitcoin generated a bullish golden cross in its chart on Tuesday when the 50-day simple moving average crossed above the 200-day SMA. The golden cross is a bullish technical signal that occurs when shorter term bullish momentum overcomes a more bearish or neutral longer-term trend.

Bitcoin’s golden cross is the first of its kind since 2015.

In addition to the golden cross, bitcoin traders were hoping for some continuation following a huge surge in bitcoin prices back on April 2 that took the cryptocurrency from $4,100 to $4,900 in a 24-hour period. Unfortunately, a sell-off on Thursday suggests consolidation may continue for bitcoin investors despite the golden cross. Some traders has even speculated that the golden cross could have been a catalysts for a short squeeze as bitcoin bears rush to exit their positions. So far, that squeeze hasn’t taken place .

Grayscale Trust

Despite the initial disappointment following the golden cross, bitcoin traders have plenty of reasons to be bullish in the medium-term. The chart of the Grayscale Bitcoin Trust (Btc) GBTC 10.03% below highlights how the early April breakout finally broke the bearish resistance line that had been in place since December 2017.

Since that breakout, $7.50 has been the major resistance. The GBTC fund first struggled with resistance at $7.50 to $8 on the way down back in November and December of 2018. That same level has served as the trust’s 2019 highs after it failed to break above $7.50 twice so far this month.

In addition to the golden cross in the bitcoin chart, the GBTC trust is forming a bullish ascending triangle pattern since its April 2 breakout. The ascending triangle pattern typically results in a bullish breakout to new highs when the rising support line (around $6.40 at time of publication) eventually forces the stock above the resistance line (at $7.50).

Bullish Catalyst?

For cryptocurrency traders wondering why bitcoin has been so strong in recent weeks, eToro analyst Mati Greenspan said Tuesday there’s no clear fundamental reason for the golden cross.

“Sure, there are a load of bullish signs right now… but if you’re asking what caused this morning’s movement, you might be slightly disappointed as there doesn’t seem to be any specific catalyst for this. It seems simply to be a shift in outlook,” Greenspan said.

Despite the bullish medium-term momentum, the price of bitcoin remains down 43.6 percent overall in the past year.

 

Cannabis Execs Pitch Investors In Toronto; iAnthus CFO Says Market Will Grow To Same Magnitude As Alcohol

cannabis conference

Cannabis Execs Pitch Investors In Toronto; iAnthus CFO Says Market Will Grow To Same Magnitude As Alcohol

Investors heard from dozens of top cannabis executives April 17-18 at the Benzinga Cannabis Capital Conference in Toronto.

Lift & Co

Lift & Co Corp plans to leverage his company’s leadership position as a trade marketing platform in Canada to fuel an international expansion, said Matei Olaru, the CEO of the data-driven cannabis media and technology company.

Those plans include a move stateside — likely via a base to be established in California — as the U.S. market moves to eventual federal legalization of cannabis, and bigger players expand to survive and thrive.

“Cannabis is a consumer packaged goods category, and now that the legalized market is opening and there’s a land grab, our market data insights will only increase in value,” Olaru said.

iAnthus Capital Holdings

Julius Kalcevich, CFO of the New York-based multistate operator iAnthus Capital Holdings Inc, outlined the explosive potential for cannabis use in a legalizing U.S. market.

Kalcevich predicts that cannabis use will come to match alcohol consumption levels in the U.S. in 10 years, with the market growing to $200 billion.

“Cannabis use right now in the U.S is around 11 percent [of the population]. What happens if it looks like alcohol usage?”

Valens GroWorks

The cannabis industry is inevitably headed toward a reliance on oil-based products, said Everett Knight, executive vice president of strategy and investments at Valens Groworks Corp, a cannabis company focused on extraction, distillation and quality testing.

That shift puts Valens GroWorks in an industry sweet spot, Knight said.

“No doctor wants you to smoke cannabis. We’ve seen everything is going to oil-based products, and the key is extraction,” he said during his Cannabis Capital Conference presentation.

Valens offers one of the most diversified platforms for extraction, and the company is seeking to expand its Canadian footprint and go global, Knight said.

Gen X BioSciences

Younger cannabis consumers want pesticide- and carcinogen-free weed products, said Shea Alderete, CEO of Gen X Biosciences.

The Los Angeles-based cannatech company uses a proprietary “molecular perfection” extraction process to produce purer cannabis products.

“The problem — though we see it as an opportunity — is a surge in demand for a clean product on the market shelf,” Alderete said.

“So regulated products have become very tight, and the solution is our pure and pesticide-free extraction process that can feed California demand.”

CB2 Insights

CB2 Insights Inc CEO Prad Sakar talked up the value of medically validated cannabis data, a space in which he said CB2 aims to be market leader.

The company’s strategy is to leverage real-world evidence it collects from medical cannabis patients via its proprietary software and clinic partners, Sakar said.

CB2 aims eventually to fully serve pharmaceutical giants, regulatory bodies and government agencies with big data as they increasingly dominate a medical cannabis industry that’s going mainstream, the CEO said.

“CB2 will provide data and real-world evidence to big pharma and drug manufacturers to help bring products to market sooner or verify claims on new drug development,” Sakar said. ” … This data will be super critical to the future of medical cannabis — to get it to the commercialization stage.”

MJ Freeway

The cannabis industry is spending far too little on IT software and solutions to maintain momentum as it expands at a breakneck pace, said Jessica Billingsley, co-founder and CEO of MJ Freeway. The company supplies the cannabis industry with software for corporate and enterprise planning.

“There’s a $300-million market opportunity just for software enterprise and solution products, and as the current leader in that space, we are uniquely poised to take advantage of that opportunity,” the CEO said.

As industry consolidation and growth gathers pace, leading cannabis players will inevitably invest more in software and tech solutions, Billingsley said.

“That’s where we come in,” she said, adding that MJ Freeway intends to take its first-mover position beyond the U.S. market and go global, starting with Latin America and Europe.

“We’re really the only cannabis technology company that’s operating globally, with clients in 12 countries … we’re poised to grow as those markets grow.”

Vireo Health

Kyle Kingsley told the Cannabis Capital Conference that his former work as an emergency medicine physician prepared him well to lead a company in the exploding weed business.

Kingsley is the CEO and founder of Vireo Health International, a science- and health care-grounded cannabis company.

“The cannabis chaos isn’t that big of a deal,” the CEO said.

Vireo’s industrial-scale approach to cannabis production and distribution has enabled the company to develop proprietary marijuana formulations and other ancillary intellectual property to drive growth opportunities from seed to sale, Kingsley said.

“It’s mind-blowing to me how much opportunity there is in IP, from industrial-scale processing to cannabis formulations for the next generation of products.”

Leading Vireo with medical and science expertise helps create and monetize “meaningful IP,” the CEO said.

“And we’re going to maintain that focus on science and medicine, which will drive a lot of these opportunities.”

Trump’s Farm Bill Opens the Door for Hemp Cultivation Stocks

2018 Trump farm bill

Trump’s Farm Bill Opens the Door for Hemp Cultivation Stocks

Last December, Congress voted to legalize hemp cultivation and the production of cannabidiol (CBD) oil in the United States. The bill displayed strong bipartisan support amongst lawmakers and effectively ended an 80-year ban on an overlooked miracle plant that has more than 25,000 recorded uses. Industrial hemp is a commodity that can be used to produce paper, cotton, biofuels, plastics, and many other sustainable consumer items. As a result, these efforts toward re-legalization have ignited massive potential for sales growth in a wide range of industries.

Despite the challenging legal and regulatory environments which were previously in place, the U.S. hemp industry grew by 16% in 2017 (hitting annual sales records of $820 million). Large portions of this growth were driven by demand for hemp-derived CBD products, which is a sales category that didn’t exist just half a decade ago.

These rising trends suggest that initial sales expectations of $1 billion in sales for 2018 should be attainable. But these estimates pale in comparison to the sales figure of $1.9 billion which is projected by industry analysts for 2022. As consumer education spreads and regulatory hurdles are removed, it may be more likely that these estimates err to the downside as they suggest a 5-year (2018-2022) CAGR of only 14.4%. Ultimately, investors with exposure to the sector could be positioned for greater market outperformance in the event U.S. hemp sales are able to match prior annual growth rates from 2017.

Trumps farm bill

Individual segment sales will eventually determine the accuracy of the market’s growth projections, and most of the focus will likely be centered on hemp-derived CBD products. This segment accounted for roughly $190 million in sales in 2017, while personal care products accounted for $181 million and food products accounted for $137 million. Automotive sales led the totals in the industrial products category while sales of snack foods led sales results in the food products category.

These segment trends are expected to expand by 2022, with hemp-derived CBD products expected to generate 34% of all hemp-based product sales in the U.S. Current projections suggest that this segment will be followed by products with industrial applications (28%), personal care products (14%), food products (11%) and consumer textiles (10%).

hemp usage

This type of growth from an emerging industry is exciting for many investors and last year’s Farm Bill legislation has generated plenty of new interest for those looking to capitalize on the market’s long-term projections. But which stocks are most likely to be winners? Until now, mid-cap and large-cap cannabis stocks have dominated the discussion with names like Cronos Group CRON,  Canopy Growth, Aurora Cannabis and Tilray rising in popularity. But there are several reasons why investors might consider small-cap alternatives, given their preferred valuations, a broader track record of attaining profitability and a better likelihood that investors may benefit from a buyout in the future.

hemp sales

As a comparative example, consider the story of Canopy Growth. The stock currently trades at a market cap north of $15 billion despite the fact that the company lost over $300 million during the first nine months of fiscal 2019. Toward the end of last year, share price declines of 53.9% in CGC exposed vulnerabilities in the stock, and those downside moves were exacerbated by acknowledgments of error in its most recent quarterly earnings report.

​California Cannabis Powerhouse, Harborside, is Another Public Launch on the Horizon

harborside-cannabis

​California Cannabis Powerhouse, Harborside, is Another Public Launch on the Horizon

Last month, I mentioned the Pax Labs IPO as probably the biggest moment for the cannabis industry next year. Pax is Juul’s cannabis-focused sister and the stock will be in high demand as it technically does not touch the plant as it is more of a “Keurig for cannabis” type operation.

Another exciting company soon to be going public is Harborside. The company has been doing business as FLRish IP LLC as it has operated a chain of prominent retail cannabis locations. Harborside recently completed a reverse merger with Lineage Grow Company BUDD. Prior to the company going public on the CSE under the symbol HBOR, it will raise C$70 million – it has already raised a majority of that money.

 

A Historic California Cannabis Company

“Few cannabis companies in the U.S. or Canada have the legacy and track record of success that Harborside has achieved over the past 12 years,” Steve DeAngelo, Co-founder of Harborside and Chairman Emeritus. “I founded Harborside with dress wedding in 2006 to provide a gold standard of medical cannabis retailing; serve patients with the most attractive facilities, highest levels of care, and best product knowledge in the industry; and to offer and produce safe, innovative and effective branded products that improve the quality of our customers’ lives. We are happy to have found a partner in Lineage who will help us continue to build on that legacy and spread Harborside’s mission.”

Embedded video

Harborside San Jose@Harborside_SJ

Got a friend who’s never been to ? Bring ’em down today thru Sunday and you’ll both get 15% off your order! Make sure to mention this deal at the register!

See Harborside San Jose’s other Tweets

As Berman alludes to above, Harborside has been a stalwart name in the industry pushing for legalization long before it was considered a reasonable idea. According to the company materials, Harborside has more than 270,000 registered patients and customers and has done more than $300 million in sales. Lineage is more than just a public strategy vehicle, the company has retail assets and farm production.

Harborside is considered to be the largest California operator with over 29 licenses across the state. The company’s farm in Salinas, California has 40,000 square feet for nursery and cultivation, 80,000 square feet for vegetation and canopy, and 35,000 square feet for production and processing. Additionally, Harborside has two open retail locations in California, one in Oakland and one in San Jose. Two additional dispensaries are under construction and slated to open in the first quarter of next year, including one in San Leandro and one in Desert Hot Springs.

As stated above, the stock is one of the premier cannabis companies in a very large market. They are growing at a rapid clip and they should be trading on the CSE by the end of the year, we highly suggest paying attention when they do.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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Watchlist

5 Cannabis Companies Reporting Soon that You Should be Watching

cannabis companies reporting

5 Cannabis Companies Reporting Soon that You Should be Watching

This week and next week, some very important upstarts in the cannabis industry will be reporting. The pending release of revenue numbers is highly anticipated as the nascent cannabis industry’s pricing and multiple is largely constructed on square-footage, pending sales, and just sheer speculation. So, this week is a crucial as it gives analysts more hard data, and here are a few you should be watching out for:

 

1. Charlotte’s Web (CSE:CWEB)(CWBHF) – Today, Thursday afternoon at 4:30pm EST

With a featurette in the New York Times – the company is run by a family of seven brothers – and some lavish parties at Sundance, Charlotte’s Web  already one of the most well-recognized names in CBD. The company is expected to see an increase of $6 million in revenue – going to $23 million from $17 million in the previous quarter. CWEB has been able to build on revenues thanks to their high margin CBD oil that has staked a following with medical patients. As a brand leader, CWBHF’s earning will be a real gauge of the CBD market’s potential.

 

2. Grow Generation (GRWG) – Monday, April 1st at 4:30pm EST

Grow Generation notched $8.4 million in quarterly sales, according to reports updated on March 15th. This puts GRWG just behind Tilray at $10 million and placing it 12th on the list of top revenue generators. Recently, the big news for GrowGeneration was the acquisition of Reno Hydroponics, which sells to both commercial and home cannabis growers, and will eventually buoy the company’s revenues, just don’t expect that to show up for some time. However, the move is a smart one as tiny operators are opening up all across the flats of Nevada and GrowGeneration now has products to sell them from a trusted name in the area.

 

3. iAnthus Capital (CSE:IAN)(ITHUF) – Tuesday, April 2nd at 8:30am EST

Last time iAnthus Capital reported in late September of last year, they netted $939k. But, with the business arrangement with MPX Bioceutical  (MPXEF[OTCQX] – $0.    ) ([] – $0.  (%)   )closed, this is a whole new ITHUF. MPX’s subsidiary GreenMart NLV was awarded four conditional retail licenses in Nevada within Clark, Reno, Henderson and in Las Vegas proper. This move will allow MPX to push GreenMart’s successful “Health for Life” brand in front of bustling Vegas cannabis tourists. For its part iAnthus, which is a holding company that operates a variety of brands, has a steady market presence in Massachusetts, Florida, Vermont and New York. The company has signed 16 leases in Florida and has plans to open 30 stores across the state, which should make it a big contributor to revenue for the company. Something to note, iAnthus did just receive their license to sell flower in Florida, which just became legal in the Sunshine State.

4. Green Thumb Industries (GTII)(GTBIF)- Tuesday, April 9th at 5:00pm EST

Green Thumb Industries  is the 6th highest revenue generator in the cannabis market as of the middle of this month with $17.2 million- just behind Charlotte’s Web. The last time Green Thumb reported it caused quite a stir across the markets. GTBIG announced 344% year-over-year increased in revenue and 26% sequential revenue growth.

The company has recently (January of this year) positioned itself into the Connecticut cannabis market with the purchase of Advanced Grow Labs gaining access to the latter’s manufacturing facility and partially-owned dispensary. Green Thumb has worked similar deals across Nevada and Pennsylvania.

5. Delta 9 (NINE)(VRNDF) – Tuesday, April 23rd at 9:00am EST

Delta 9 has offered some insight into their results for last year (unaudited) and they were impressive. The company estimated anywhere from $5.3 to $6.1 million revenues for the last three months of 2018. The full year-end results will be telling about their retails expansion – Delta 9 is planning to hit 60,000 kgs by 2022- but it will not include how their entry into Saskatchewan will improve their bottom line and accelerate growth.

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of KushCo Holdings, Inc. – KSHB

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of KushCo Holdings, Inc. – KSHB

PR Newswire

NEW YORKApril 23, 2019 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of KushCo Holdings, Inc. (“KushCo” or the “Company”) (OTCMKTS: KSHB).   Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether KushCo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

On April 9, 2019, KushCo issued a press release announcing the Company’s decision to restate prior period financial statements for fiscal years 2017 and 2018 for non-cash items related to acquisitions of CMP Wellness, Summit Innovations and Hybrid Creative.

On this news, KushCo’s stock price fell $0.45 per share, or 7.76%, to close at $5.35 on April 10, 2019.

The Pomerantz Firm, with offices in New YorkChicagoLos Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com

New Pacific Announces the Appointment of New Vice President, Corporate Development, Project Manager, and Grant of Options

New Pacific Announces the Appointment of New Vice President, Corporate Development, Project Manager, and Grant of Options

VANCOUVER, British Columbia , April 23, 2019 (GLOBE NEWSWIRE) — New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is pleased to announce the appointment of Mr. Robert Cinits as  Vice President, Corporate Development of the Company and Mr. David Turner as Project Manager effective April 22, 2019.

Mr. Cinits has over 30 years of experience in the mineral resources industry with an extensive background in corporate development, M&A, exploration, project development, QA/QC, engineering studies, and NI 43-101 reports.  Prior to joining New Pacific, Mr. Cinits held the positions of Chief Operating Officer with Mason Resources Corp. and Vice President, Corporate Development with Entrée Resources Ltd.  Mr. Cinits received his Bachelor of Science degree in Geology from University of Toronto.  Mr. Cinits is also a P.Geo registered with the Association of Professional Engineers and Geoscientists of the Province of British Columbia.

Mr. David Turner has over 25 years experience in the mineral resources industry with a focus on precious metals exploration in Latin America.  After starting his career with BHP, Mr. Turner has gained progressive experience in managing exploration programs and operations, from grassroots to large-scale drilling campaigns in El Salvador, Honduras, Nicaragua and Nevada.  Prior to joining New Pacific, Mr. Turner was Country Manager for Oro Verde Limited in Nicaragua.  Mr. Turner, fluent in both English and Spanish, received his Bachelor of Science degree in Geology from Colorado State University.

Stock Option Grants

The Company’s Board of Directors has authorized and approved a grant of 100,000 incentive stock options (the “Stock Options“) each to Mr. Cinits and Mr. Turner.  The stock options are exercisable at a price of $2.30 per share, being the closing price of the Company’s shares on the TSX Venture Exchange on April 22, 2019, for a period of five years from the date of grant.  The options are subject to the terms of the Stock Option Plan and the approval of the TSX Venture Exchange.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world’s largest primary silver producers, which operates six mines, including the San Vicente mine located in the Potosí Department of Bolivia.

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.newpacificmetals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals.

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

Galaxy Gaming and Caesars Entertainment UK Extend Partnership with Multi-Year Agreement

Galaxy Gaming and Caesars Entertainment UK Extend Partnership with Multi-Year Agreement

LAS VEGAS, April 23, 2019 (GLOBE NEWSWIRE) — Galaxy Gaming, Inc. (OTC:GLXZ) announced today Caesars Entertainment EMEA agreed to a multi-year agreement with the organization. The agreement includes an integrated partnership including product and marketing support for all Galaxy Gaming proprietary table game titles at Caesars Entertainment EMEA properties as well as progressive systems.

“Galaxy Gaming is excited for the opportunity to continue working closely with Caesars EMEA in driving more players to their gaming facilities and contributing to the overall player experience,” said Todd Cravens, Galaxy’s CEO.  “Showcasing our table games at some of the most premier casinos around the country will be an honour.”

“We are delighted to work with Galaxy Gaming to bring new and innovative gaming experiences to our customers.  Customer appetite for new bonuses and variations on classic games is increasing and we pride ourselves on delivering the best gaming environments in the UK.” Peter Turpin, Group Operations Director Caesars Entertainment EMEA.

About Galaxy Gaming
Headquartered in Las Vegas, Nevada, Galaxy Gaming, Inc. (galaxygaming.com) develops, manufactures and distributes innovative proprietary table games, state-of-the-art electronic wagering platforms and enhanced bonusing systems to land-based, riverboat, cruise ships and online casinos worldwide.  Through its iGaming partner Progressive Games Marketing Ltd., Galaxy Gaming licenses its proprietary table games to the online gaming industry.  Galaxy’s games can be played online at FeelTheRush.com.  Connect with Galaxy on FacebookYouTube and Twitter.

Contact:

Media: Robyn Brewington (702) 936-5216
Investors: Harry Hagerty (702) 938-1740

Sunniva Inc. To Announce 2018 Fourth Quarter And Year-End Results On April 29, 2019

Sunniva Inc. To Announce 2018 Fourth Quarter And Year-End Results On April 29, 2019

VANCOUVER, British ColumbiaApril 23, 2019 /PRNewswire/ — Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services plans to release its results for the fourth quarter and fiscal year 2018 and provide a corporate update on its Canadian and US operations, after market close on Monday April 29, 2019.

(PRNewsfoto/Sunniva Inc.)

The Company’s executive management will discuss the results during a conference call on Tuesday, April 30, 2019 at 11:00 am Eastern Time / 8:00 am 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 3178.  The replay will be available for two weeks following the call.

About Sunniva Inc.

Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world’s two largest cannabis markets – California and Canada.  Sunniva is focused on creating sustainable premium cannabis brands supported by our large-scale, purpose-built cGMP designed greenhouse and extraction facilities. We offer a steadfast commitment to safety and quality assurance providing cannabis products free from pesticides, which uniquely positions Sunniva in California as a leading provider of safe, high quality, reproducible products at scale. Through production from Phase One of our strategically positioned 325,000 square foot high technology greenhouse which is nearing completion and our fully operational extraction facility in California, we are launching Sunniva branded products in various product categories and price points including flower, pre-rolls, vape cartridges and premium concentrates.  Sunniva branded products will be showcased within our flagship dispensary located at the greenhouse and our in-house marketing and distribution team will ensure the placement of Sunniva branded products at licensed dispensaries throughout the state. Sunniva’s management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.

This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law, including, but not limited to, statements relating to the completion of Phase One of the greenhouse, the Company’s launch of Sunniva branded products in various product categories and price points including flower, pre-rolls, vape cartridges and premium concentrates, the showcase of Sunniva branded products within the Company’s flagship dispensary located at the Sunniva California Campus and the placement of Sunniva branded products at licensed dispensaries throughout the state of California. Forward looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Company Contacts:

Sunniva Inc.

Dr. Anthony Holler

Chairman and Chief Executive Officer

Phone: (866) 786-6482

Investor Contact:

Media Contact:

Phil Carlson / Erika Kay

Katelyn Tumino / Tony Forde

KCSA Strategic Communications 

KCSA Strategic Communications

Phone: (212) 896-1233

Phone: (212) 896-1252

Email: pcarlson@kcsa.com / ekay@kcsa.com

Email: ktumino@kcsa.com / tforde@kcsa.com

Empire Bancorp Announces First Quarter 2019 Results

Empire Bancorp Announces First Quarter 2019 Results

ISLANDIA, N.Y., April 23, 2019 (GLOBE NEWSWIRE) — Empire Bancorp, Inc. (OTCQX: EMPK), today announced its financial results for the quarter ended March 31, 2019.

Quarterly Highlights

Financial Results

  • Net income, measured on a consolidated basis for the first quarter of 2019 was $742 thousand, compared to net income of $840 thousand for the fourth quarter of 2018, and net income of $508 thousand for the first quarter of 2018.
  • Diluted earnings per common share for the first quarter of 2019 were $0.10, compared to $0.11 for the fourth quarter of 2018, and $0.07 for the first quarter of 2018.
  • Return on average assets and average common stockholders’ equity for the first quarter of 2019 were 0.29% and 4.15%, respectively, compared with 0.34% and 5.09%, respectively, for the fourth quarter of 2018, and 0.21% and 3.11%, respectively, for the first quarter of 2018.

Franchise Development

  • Total assets were $1.05 billion at March 31, 2019, up 10.5% from $947.0 million at March 31, 2018.
  • Loans outstanding totaled $675.3 million at March 31, 2019, up 25.5% from $538.2 million at March 31, 2018.
  • Deposits totaled $937.6 million at March 31, 2019, up 8.9% from $861.0 million at March 31, 2018.

Continued Financial and Credit Strength

  • Solid asset quality with an allowance for loan and lease losses of 0.96% of total loans and a ratio of non-performing loans to total loans of 0.36%.
  • There was no provision for loan losses recorded for the first quarter of 2019, compared to a provision of $230 thousand recorded for December 31, 2018, and a provision of $227 thousand as of March 31, 2018.
  • “Well capitalized” regulatory capital levels at Empire National Bank, as of December 31, 2018:
    º  Tier 1 leverage capital ratio of 8.81%
    º  Common equity tier 1 risk-based capital ratio of 13.16%
    º  Tier 1 risk-based capital ratio of 13.16%
    º  Total risk-based capital ratio of 14.09%

Balance Sheet

Assets totaled $1.05 billion at March 31, 2019, up $58.1 million, or 5.9%, from December 31, 2018, and up $99.4 million, or 10.5%, from March 31, 2018. Total cash and cash equivalents increased $34.0 million, or 323.3%, to $44.5 million from $10.5 million at December 31, 2018, and decreased $33.3 million, or 42.8%, from $77.8 million at March 31, 2018. Investment securities available for sale were $281.3 million, up $12.3 million, or 4.6%, from $269.0 million at December 31, 2018, and down $13.6 million, or 4.6%, from March 31, 2018. Gross loans were $675.3 million at March 31, 2019, an increase of $1.7 million, or 0.26%, from $673.6 million at December 31, 2018, and an increase of $137.1 million, or 25.5%, from $538.2 million at March 31, 2018.

Total deposits were $937.6 million, up $44.7 million, or 5.0%, from $892.9 million at December 31, 2018, and up $76.6 million, or 8.9%, from $861.0 million at March 31, 2018.  Demand deposits were $178.1 million, up $8.8 million, or 5.2%, from $169.3 million at December 31, 2018, and up $18.0 million, or 11.2%, from $160.1 million at March 31, 2018.  Savings, N.O.W. and money market deposits totaled $725.4 million, representing an increase of $36.3 million, or 5.3%, from $689.1 million at December 31, 2018, and an increase of $56.8 million, or 8.5%, from $668.6 million at March 31, 2018. The growth in these deposits year over year was fueled in large part by new and existing municipal banking relationships.  Certificates of deposits of $100,000 or more and other time deposits totaled $34.1 million, down $406 thousand, or 1.2%, from December 31, 2018, and up $1.8 million, or 5.4%, from March 31, 2018.

Stockholders’ equity increased $5.1 million, or 7.1%, to $76.8 million, from December 31, 2018, and increased $10.8 million, or 16.3%, from March 31, 2018. The linked quarter increase was primarily attributable to the positive impact of a decrease in the unrealized losses on securities available for sale, net of taxes of $4.2 million, net income of $742 thousand, and a net increase of $84 thousand associated with stock compensation plans. The increase in stockholders’ equity from March 31, 2018 primarily resulted from a $5.8 million decrease in the unrealized losses on securities available, net of taxes, net income of $3.7 million, and an increase of $1.3 million associated with stock compensation plans as well as the exercise of warrants and stock options.

Net Interest Margin/Net Interest Income

Net interest income for the first quarter of 2019 decreased $172 thousand, or 2.7%, over the fourth quarter of 2018, and increased $116 thousand, or 1.9%, over the first quarter of 2018.  Net interest margin was 2.56% for the three months ended March 31, 2019, down compared to 2.62% for the three months ended December 31, 2018, and down from 2.65% for the three months ended March 31, 2018.

Interest income for the first quarter of 2019 increased $92 thousand, or 1.0%, from the fourth quarter of 2018, and $1.5 million, or 18.6%, from the first quarter of 2018. The linked quarter increase was primarily the result of an increase of $56 thousand in income from deposits with banks and an increase of $32 thousand in income from loans. The yield on interest earning assets increased to 3.91% for the first quarter of 2019, compared to 3.86% for the fourth quarter of 2018, and compared to 3.47% for the first quarter of 2018. The linked quarter increase in the yield on interest earning assets was primarily attributed to an increase in both the average balance and the yield on loans, coupled with an increase of twenty-seven basis points in the yield on average deposits with banks. The increase in the yield on earning assets, as compared to the first quarter of 2018, largely resulted from the greater proportion of our average assets in average loans as well as an increase in the yield of loans.

Interest expense was $3.3 million in the first quarter of 2019, $3.0 million for the fourth quarter of 2018, and $1.9 million for the first quarter of 2018. The cost of interest bearing liabilities was 1.75% for the three months ended March 31, 2019, an increase from 1.60% for the three months ended December 31, 2018, and an increase from 1.07% for the three months ended March 31, 2018. The upward trend of the cost of interest bearing liabilities, especially within the competitive public fund deposit base, is the result of higher overall funding costs driven up by, among other things, increases in market rates.

Noninterest Income and Expense 

The company recognized no security gains or losses on sales of securities for the first quarter of 2019, or the first quarter of 2018, compared to net securities losses of $50 thousand recognized in the fourth quarter of 2018.

Other income was $434 thousand at March 31, 2019, compared to $423 thousand at December 31, 2018, and compared to $412 thousand at March 31, 2018. The linked quarter increase resulted primarily from an increase of $7 thousand, or 5.9%, in customer related fees and service charges, and a $4 thousand, or 1.3%, increase in other operating income. The increase of $22 thousand, or 5.3%, compared to the first quarter of 2018 was driven by $45 thousand, or 17.1%, increase due to a gain on the sale of SBA loans and miscellaneous loan fee income, offset by $23 thousand decrease in customer related fees and service charges.

Other expense was $5.8 million at March 31, 2019, compared to $5.6 million at December 31, 2018, and compared to $5.8 million at March 31, 2018. The $238 thousand, or 4.3%, increase from the linked quarter was primarily attributable to an increase of $131 thousand, or 4.2%, in salaries and employee benefits, and an increase of $67 thousand, or 30.6%, in professional fees. These expenses were offset by a decrease in FDIC insurance of $37 thousand, or 27.8%, and a decrease of $23 thousand, or 3.5%, in occupancy and equipment expenses. Other operating expenses increased by $91 thousand, or 14.1%, over the previous quarter, as a result of increases of $61.8 thousand and $20.8 thousand in professional practice and investor relations expenses, respectively. The increase of $7 thousand, or 0.1%, in other expenses year over year was the result of an increase of $104 thousand, or 26.0%, in software services, and an increase of $52 thousand, or 22.2% in professional fees, offset by lower salaries and employee benefits of $95 thousand, or 2.9%, and lower occupancy and equipment of $54 thousand, or 7.9%.

Income Tax Rate

The effective income tax rate was 19.2% for the three months ended March 31, 2019, compared to 19.0% for the three months ended December 31, 2018, and 9.3% for the three months ended March 31, 2018. The lower tax for the three months ended March 31, 2018, was the result of excess tax benefits recognized during that quarter relative to the exercise of stock options and compensatory warrants, as well as vesting of restricted stock grants.

Solid Asset Quality/Provision for Loan Losses

There was no provision booked for the first quarter of 2019 as total loans were flat as compared to the year end balance. A provision of $230 thousand was recorded for the fourth quarter of 2018, compared to a provision of $227 thousand for the first quarter of 2018. Expressed as a percentage of outstanding loans, the allowance for loan and lease losses was 0.96% at March 31, 2019 and December 31, 2018, compared to 1.13% at March 31, 2018.

Credit quality remained solid at March 31, 2019, as the company continued to apply rigorous underwriting standards. Loans classified as nonaccrual dropped to $2.4 million at March 31, 2019, or 0.36%, of total loans outstanding, compared to $3.8 million, or 0.57%, at December 31, 2018, and compared to $5.8 million, or 1.08%, at March 31, 2018. The quarter over quarter decrease in total nonaccrual loans reflects the company’s experience and ability to work with borrowers, which contributed to the payoff of three nonaccrual loans year over year. There were no charge-offs and recoveries recorded in the first quarter of 2019, compared to no charge-offs and a recovery of $6 thousand recorded for the fourth quarter in 2018, and compared to a charge-off of $11 thousand and no recoveries recorded in the first quarter of 2018.

Consolidated Statements of Condition (unaudited)
(dollars in thousands, except per share data)
March 31,
December 31,
March 31, 
2019 2018 2018
ASSETS
Total cash and cash equivalents $   44,491 $   10,511 $   77,831
Securities available for sale, at fair value   281,284   268,999   294,913
Securities held to maturity   4,750   4,945   4,750
Securities, restricted   3,086   3,170   2,931
Loans   675,319   673,568   538,150
Allowance for loan losses   (6,463 )   (6,463 )   (6,091 )
  Loans, net   668,856   667,105   532,059
Premises and equipment, net   4,544   4,691   5,279
Bank-owned life insurance   21,038   20,886   20,413
Other assets and accrued interest receivable(1)   18,313   7,920   8,826
Total Assets $   1,046,362 $   988,227 $   947,002
LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand Deposits $   178,068 $   169,275 $   160,074
Savings, N.O.W. and money market deposits   725,443   689,050   668,554
Certificates of deposit of $100,000 or more
and other time deposits   34,135   34,541   32,375
Total Deposits   937,646   892,866   861,003
Short-term borrowings   –   2,595   –
Subordinated debentures, net   14,835   14,823   14,789
Other liabilities and accrued expenses(1)   17,107   6,234   5,216
Total Liabilities   969,588   916,518   881,008
Total Stockholders’ Equity   76,774   71,709   65,994
Total Liabilities and Stockholders’ Equity $   1,046,362 $   988,227 $   947,002
Selected Financial Data (unaudited)
Allowance for Loan Losses to Total Loans 0.96 % 0.96 % 1.13 %
Non-performing Loans to Total Loans 0.36 % 0.57 % 1.08 %
Non-performing Assets to Total Assets 0.23 % 0.39 % 0.62 %
Book Value per Share $   9.98 $   9.37 $   8.70
Capital Ratios (unaudited)(2)
Tier 1 Leverage Ratio 8.81 % 8.93 % 8.80 %
Common Equity Tier 1 Risk-Based Capital Ratio 13.16 % 13.20 % 15.42 %
Tier 1 Risk-Based Capital Ratio 13.16 % 13.20 % 15.42 %
Total Risk-Based Capital Ratio 14.09 % 14.15 % 16.52 %
(1)  Q1 2019 increase largely driven by the adoption of ASU 2016-02, “Leases” which resulted in approximately $10.9 million of  lease assets and
  approximately $12.7 million of lease liabilities being added to the balance sheet;
(2)  Regulatory capital ratios presented on bank-only basis.
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
For the three months ended
March 31,
December 31,
March 31,
2019 2018 2018
Interest income $   9,579 $   9,487 $   8,078
Interest expense   3,307   3,043   1,922
Net interest income   6,272   6,444   6,156
Provision for loan losses   –   230   227
Net interest income after
provision for loan losses   6,272   6,214   5,929
Net securities (losses)   –   (50 )   –
Other income(1)    434   423   412
Other expense(1)    5,788   5,550   5,781
Income before income taxes   918   1,037   560
Income tax expense   176   197   52
Net income $   742 $   840 $   508
Basic earnings per share $   0.10 $   0.11 $   0.07
Diluted earnings per share $   0.10 $   0.11 $   0.07
Weighted average common and equivalent
  shares outstanding   7,511,729   7,493,115   7,337,335
Selected Financial Data (unaudited)
Return on Average Assets 0.29 % 0.34 % 0.21 %
Return on Average Equity 4.15 % 5.09 % 3.11 %
Net Interest Margin 2.56 % 2.62 % 2.65 %
Efficiency Ratio 86.31 % 80.82 % 88.02 %
(1)  Certain reclassifications have been made to prior periods to conform  to the current year presentation.

About Empire Bancorp, Inc.

Empire Bancorp, Inc. is a bank holding company for Empire National Bank, a Long Island-based independent bank that specializes in serving the financial needs of small and medium sized businesses, professionals, nonprofit organizations, municipalities, real estate investors, and consumers.  The bank has four full-service banking offices located in Islandia, Shirley, Port Jefferson Station, Mineola and a loan production office in Manhattan.  Our bankers take pride in understanding the needs of each customer so the bank can deliver the highest quality service with a sense of urgency.

Empire Bancorp Inc. (OTCQX: EMPK) is traded on OTCQX® Best Market which is the top tier of OTC Markets Group Inc.

This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements.  Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue,” or comparable terminology, are intended to identify forward-looking statements.  These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within the control of the Company.  The forward-looking statements included in this press release are made only as of the date of this press release.  The Company has no intention, and does not assume any obligation, to update these forward-looking statements.

Contact:
William Franz – SVP, Director of Marketing & Investor Relations
(631) 348-444