DENVER, Sept. 14, 2020 (GLOBE NEWSWIRE) — General Cannabis Corp (OTCQB: CANN) announced today it has named Diane Jones as Chief Financial Officer. Jones… Shares of Oracle soared around 7% before the New York opening bell as investors cheered its deal with video-sharing app TikTok. Suppose a company finds it and has a successful vaccine in its hands; how does it strike the right balance between satisfying its shareholders and serving humanity? There’s a silver lining if the bubble bursts. The second drop in a “W” formation brings back the doubts and fears of the first drop
DENVER, Sept. 14, 2020 (GLOBE NEWSWIRE) — General Cannabis Corp (OTCQB: CANN) announced today it has named Diane Jones as Chief Financial Officer. Jones brings deep experience in accounting and financial planning and has held key executive positions at publicly-held companies. She becomes a member of the Company’s senior management team as it expands its operations within Colorado and maintains a continued focus on creating and driving shareholder value across its business.
Prior to joining General Cannabis Corp, Ms. Jones served as Corporate Controller for the Americas at Cardino. Before that, she was Worldwide Controller and Senior Director of Shared Financial Services at Arrow Electronics and earlier served as Assistant Corporate Controller at Ball Corporation. She began her career as a CPA with Ernst & Young. Ms. Jones has taught accounting as an adjunct professor at the Daniels College of Business at the University of Denver and received a BBA from Texas A&M and and MBA from the University of Houston.
Steve Gutterman, CEO of General Cannabis Corp and a member of its Board of Directors said: “We’re fortunate to add a CFO of Diane’s deep functional expertise, skills, and technical knowledge in all aspects of corporate finance and accounting. She’s worked across multiple industries, within public companies, and in all sized environments, which will be critical for us as we continue to grow our business, pursue M&A targets and add additional strategic capital needed to fund our growth objectives. As we do so, we will be diligent in our commitment to ensuring that our controls and accounting meet or exceed best practices. Diane will be central to those efforts.”
General Cannabis Corp also announced today a change in the composition of its Board of Directors, as its three independent Directors—Peter Boockvar, Mark Green and Seth Oster—have decided to step down after nearly a decade of collective service on the Board. Said Adam Hershey, Board member and shareholder: “We are appreciative of the many contributions Peter, Mark and Seth have made. They have been invaluable to the growth and development of General Cannabis, helping guide the company through challenging periods and working to protect shareholder interests. We are grateful to them.”
The Board has elected Carl Williams, Richard Travia and Barker Dalton to replace Boockvar, Green and Oster. Williams, who will become Chairman of the Board and an independent director, has extensive company building experience, having lead private and public companies for over 30 years. Travia, who will join as an inpedendent director, brings an extensive background in finance and investment management within private and public companies. Dalton, who will join as a director, has built an expansive reputation within the cannabis industry as Founder and Managing Director of SevenFive Farm, Boulder County’s first purpose-built cannabis greenhouse facility, which General Cannabis Corp acquired in May 2020 in an equity deal that established Dalton as one of the company’s largest shareholders.
Said Gutterman, “Our new Board members are well-suited to support management, oversee corporate governance, and add shareholder value. Carl is a seasoned operator and leader who will provide significant mentorship in his role as Chairman of the Board. Richard’s knowledge about the cannabis capital markets will help us grow; and Barker has been a fantastic partner ever since we acquired SevenFive, and his knowledge about the Colorado cannabis market is extensive. We are fortunate to have them helping lead us forward.”
Over the past several months, General Cannabis Corp has continued to establish itself as a leader among Colorado cannabis businesses. It has refined its business strategy to focus on acquiring and operating licensed cannabis facilities throughout the state—transitioning out of unprofitable business lines and investing resources in support of an M&A strategy that led to its successful acquisition this past May of SevenFive Farm. The Company continues to enjoy strong performance from its Next Big Crop cultivation consulting business. In May, General Cannabis Corp became one of the only publicly-held cannabis companies to receive regulatory approval from the State of Colorado, authorizing it to acquire licensed cannabis facilities. And the Company received a significant capital infusion from Hershey Strategic Capital and Shore Ventures III totaling $3 million in equity capital to grow the business and enhance enterprise value.
Additional background on the new members of General Cannabis Corp’s Board of Directors:
Mr. Williams’ career in financial services includes several high profile industry positions. He was the Chairman and CEO of Planet Payment (Nasdaq: PLPM), a company that processes merchant payments internationally. Williams led the sale of Planet Payment to the Fintrax Group, a leader in payment processing. Previously he was President of World Wide Payment Processing for Global Payments (NYSE: GPN). He also served as President of the Merchant Services Division of National Processing Company, a processor of credit card, debit and check transactions. He holds a BA from La Salle University in Philadelphia.
Mr. Travia is an experienced cannabis investor and company builder who founded Wildcat Advisory Group and Wildcat Investment Management. Wildcat Advisory Group is a diversified business and investment consultant that advises small and medium size public and private companies, institutional investors such as family offices, private equity funds and hedge funds, and institutional-quality service providers. Wildcat Investment Management provides investment management services. Prior to launching Wildcat, Richard co-founded Tradex Global Advisors and Tradex Global Advisory Services. While at Tradex, Richard served as the COO and Compliance Officer of the firm, Director of Research for the fund of hedge funds business and Head of Risk Management for the single hedge fund business Richard graduated from Villanova University with a Bachelor’s Degree in Economics.
Mr. Dalton is the Founder and Managing Director at SevenFive Farm, Boulder County’s first purpose-built cannabis greenhouse facility. He has over a decade of experience in the cannabis industry. Mr. Dalton built SevenFive Farm from the ground up, overseeing all elements of the business from construction to cultivation to sales. Under his stewardship, SevenFive Farm has become a leading supplier of wholesale cannabis products, known for quality and consistency. Mr Dalton created SevenFive after living for five years in Costa Rica, working in sustainable development. His focus was on site study, master design and material sourcing. Prior to working in Costa Rica, Mr Dalton gained significant retail experience as the co-owner of Robb’s Music.
About General Cannabis Corp
General Cannabis Corp offers a comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. The Company is a trusted partner to the cultivation, production and retail sides of the cannabis business. The Company’s website address is www.generalcann.com.
This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements are not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances. Although General Cannabis Corp believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, caution must be exercised in relying on forward-looking statements because General Cannabis Corp can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking statements. Such risks and uncertainties include, but are not limited to, current and future market conditions; the impact of the COVID-19 pandemic on General Cannabis Corp, risks related to federal, state, local and foreign government laws, rules and regulations, including changes in the regulation of medical and recreational cannabis use; as well as those risks and uncertainties discussed from time to time in General Cannabis Corp’s most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q under the heading “Risk Factors” and in subsequent filings with the Securities and Exchange Commission. The statements in this press release are made as of the date of this release. General Cannabis Corp undertakes no duty to update any forward-looking statements made herein.
Denver, Colorado, UNITED STATES
Author: General Cannabis Corp
U.S. Stock Futures Point to Gains on Wall Street
U.S. stock futures rose Monday, signaling stocks may start the week on a firm footing after a bout of volatility driven by swings in technology shares.
Futures tied to the S&P 500 climbed 1.2%, while contracts linked to the technology-laden Nasdaq Composite gained 1.4%. The Nasdaq last week suffered its biggest one-week decline since the market crisis of March.
Monday’s advance would extend a spell of outsize moves in both directions for global markets. Stocks have been buffeted by uncertainty about the U.S. presidential election, a slowing recovery in the world economy from the shock of Covid-19, and gyrations in tech shares that had driven markets higher since the spring.
“We’re shifting into an environment of lower returns and higher volatility and this is not inconsistent with that,” said James McCormick, global head of desk strategy at NatWest Markets.
“This isn’t a message that we’re going back to February, March markets,” Mr. McCormick added, referring to the historic declines that took place when countries locked down to control Covid-19. “But I think the upside is going be a bit capped here until we get through some of these events and risks.”
Author: Joe Wallace
Stewardship Asia Centre BrandVoice: From Casino To Cultivator – Stewardship In The Investment Chain
Drug companies are in the spotlight because of the coronavirus crisis. Around the world, teams are working on a vaccine. Suppose a company finds it and has a successful vaccine in its hands; how does it strike the right balance between satisfying its shareholders and serving humanity? Companies that show contempt for basic human values will end up destroying shareholder value. In contrast, the companies that endure to deliver lasting value to their shareholders are those that apply the principles of stewardship. This means that shareholders have an interest in being vigilant stewards of the companies in which they have invested.
Investment happens in a long chain. Individuals put money into their pensions or pay insurance premiums. The money that is collected is then invested in companies by asset managers. The dividends from those companies then, hopefully, flow back to the savers.
There are two ways of looking at this chain. At one extreme, one can view it like a fruit machine in a casino. There is nothing to see except a series of transactions. Money goes in at one end. If the right bets have been placed, the original stake is retained or returned and there are winnings on top.
At the other extreme, the investor can be seen as a farmer cultivating land. The farmer can only earn a reasonable living by being close to the land, being aware of the growing conditions, and nurturing the soil. Overworking the assets leads to diminishing returns – for the farmer and those who depend on the output. Taking care of the soil and the surrounding environment means that there is more wealth to pass on to the next generation.
If savers are to get the right outcomes, they and those who serve them need to move away from the casino view and towards the cultivator’s view. That means turning the investment chain into a stewardship value chain.
There are two key words to guide the actions of asset owners (pension funds, insurance companies and family offices) and asset managers. One is value and the other is mandate.
Individuals are more than mere financial beings. The patients who need access to a vital drug could also be the pension members who expect a dividend from the company that produces the drugs. Shareholders saving for their future also have children and grandchildren for whose future they are saving. They have a broader view of value. Responding to a recent UK survey, a majority of people (52%) said that they would be motivated to save more if they knew their savings and investments made a positive difference in the world. 57% of respondents said that they were interested in learning about what impact their pension has on the world, and 56% said that they would opt for a fully or partially sustainable pension, if given the choice. Meanwhile, 47% of people would want their pension switched if they found out that it was invested in a way that went against their values.1
Which brings us to the mandate. It is asset owners, acting in the interests of the savers and individual investors, that have the power and the right to specify what kind of impact they will or will not accept. In 2019, Japan’s $1.5tn Global Pension Investment Fund withdrew a large mandate from BlackRock over its lack of action on environmental, governance and social issues.2 In 2020, BlackRock CEO Larry Fink responded, by committing BlackRock to be more active in demanding that companies act on climate issues.3
As stewardship permeates the value chain, the focus of mandates will increasingly be on corporate character and the securing of value for the longer term. Investor stewardship is good for shareholders – and it is good for humanity. It is about applying the common sense that comes naturally to every successful cultivator.
Here is the stewardship agenda for action of asset owners, asset managers and their clients4:
Clients of financial services
Pension fund trustees, family offices and other asset owners
Companies and their boards
Author: Mark Goyder
A Stock Market Bubble Burst Could Present a Tax-Saving Opportunity
With the market rallying in recent months — even as coronavirus cases continue spiking and lawmakers keep failing to provide more COVID-19 stimulus money — there’s ample reason to believe stocks are in a bubble right now. And that’s a problem, because bubbles burst.
For long-term investors, a potential market crash is nothing to fear — especially if you’ve done your research and built a diversified portfolio full of shares of rock-solid companies. But even the best investors could find themselves with some losers, which are likely to perform especially poorly during a market downturn.
The good news is, there is one silver lining if the bubble bursts and the market plummets: It could help you save on taxes.
Image source: Getty Images.
So, how could a stock market bubble burst help you reduce the amount you send to Uncle Sam? It’s simple: It presents an opportunity for tax loss harvesting.
Tax loss harvesting involves selling losing investments and claiming those losses on your taxes. They can be used to offset capital gains taxes, if you owe them on successful investments. They can also reduce other taxable income. However, while there is no limit on the value of capital losses you can deduct from capital gains, your losses can only reduce other taxable income by $3,000 per year. The good news is that the losses can carry over. That means if the market crashes and you sell a stock you lost $5,000 on, you could reduce any capital gains you’re claiming by up to the full amount of that $5,000. Or, if you have no capital gains this year, you could deduct $3,000 from your other taxable income, and carry over the remaining $2,000 and deduct it next year.
Of course, you don’t have to wait for a market crash to sell investments at a loss and benefit from tax loss harvesting — you can sell them any time. And, in fact, if you have a poorly performing investment you don’t believe will recover, you may not want to wait for a crash to sell, as falling share prices after a bubble burst could mean even bigger losses. While that would increase the tax savings from tax loss harvesting, it makes little sense to absorb a larger loss than you need just to reduce your IRS bill.
You also don’t want to panic sell solid investments during a market crash, even if the share price falls temporarily, as recoveries inevitably follow downturns. You don’t want to make those losses permanent if you still feel confident the investment is a good one and you’re content to hold it long-term through the crash. And while you can sell at a loss and buy the stock back if you still want to own the asset, the “wash sale rule” requires you to wait at least 30 days before repurchasing or you can’t harvest the loss.
However, if a crash exposes weaknesses in your portfolio and you suffer losses on stock shares for companies you no longer believe in because economic conditions or business fundamentals have changed, tax loss harvesting is the bright spot in a bad situation. And if you have losing investments you feel will perform especially poorly when the market bubble bursts, you can always sell them at a loss at the start of the downturn, score your tax savings, and buy back in after 30 days have passed — when, hopefully, the crash has sent the share price plummeting to even lower depths and you can rebuy your shares at a bargain.
Author: Christy Bieber
Stock Market And Economy – Disheartening ‘W’ Pattern Is Forming
A stock market’s fall midway in a “W” pattern feels like the Hyperion’s drop in Zator, Poland. … [+] (Photo by Omar Marques/Anadolu Agency/Getty Images)
The stock market was in a happy “V” pattern, as Wall Street gained confidence that an economy “V” pattern was coming. Sure enough, employment, consumer spending and growth forecasts began improving, aided by the various government stimulus programs.
Then, as the stock market continued to rise with technology stocks outperforming, the shift from index fund investing to speculative stock buying began. However, as with most stock market’s popular trends, this one became stretched and is now in a reversal period. The question is: Where will stocks go from here?
Disclosure: Author is 100% invested in cash reserves
Nasdaq Composite shows initial 10% leg down
Bubble? Then expect more burst to happen
This weekend’s Barron’s cover article is well-timed: “Yes, It’s a Stock Market Bubble. That Doesn’t Mean Trouble for Investors Just Yet.” The write-up describes the rationale behind the market rise, and technology stocks’ outperformance.
However, the article’s conclusion that the bubble doesn’t have to burst yet presumes that the rationale is still effective. Unfortunately, though, strong uptrends that are based on seemingly powerful and long-lasting fundamentals can peter out “unexpectedly.” Therefore, instead of accepting Barron’s conclusion, view it as a contrarian sign that it is the selloff that is not yet over.
But there is more to this selloff than seeking a return to normality for tech stocks. There also is a growing concern that company and economy fundamentals are about to lose some of their recent shine. Here is how that view is shaping up…
To begin with, remember why stocks rose in the first place
It was the anticipated economy improvements. Well, those have happened. So, the question now is not whether tech stocks will resume their uptrends from this correction. It’s whether the economy improvements can continue and the conditions will still favor tech stocks.
Now to the problems…
Problem #1 – Employment improvements are slowing, even as unemployment remains high
Time marches on (it’s now six months after the mid-March shutdowns), but the unemployment level remains much higher than during the Great Recession. Moreover, as we have been reading, new hiring is slowing down.
Total unemployment claims are about 14 million as of September 5, 2020
Then, there is this unemployment dynamic: Barron’s – “Temporary Layoffs Are Starting to Look Permanent. That’s Bad for the Recovery.”
Problem #2 – The once anticipated second stimulus program looks like a non-starter
Early expectations were for another $trillion or two flowing to unemployed and underemployed consumers, struggling and still-closed organizations, and local and state governments. Now little is expected, meaning the economy will have no “growth boost.” That absence raises the specter of a stagnant or weakened economy. In turn, if such a development does occur, we can expect the March/April fear of an extended recession to return.
Problem #3 – The somewhat fragile financial system
Without stimulus and with reduced economy improvement, the time limits on financial deferments (credit cards, loans and mortgages) will begin to expire and cause problems. Ditto for the temporary halts on renter evictions and homeowner foreclosures.
Besides the bad effects on adversely affected debtors, lenders will need to revisit their worst-case models. That could mean the need to expense more bad debt reserves. (This action would be the reverse of what some analysts were hoping for – less bad debt than expected producing added income as lenders reversed excess reserves.)
Then, there are the other areas that are already feeling ill effects: municipal bonds, lower credit bonds, emerging market bonds, etc.
But what about the new, high levels of auto/truck and new housing purchases?
There are two drivers at work with these:
First pent-up demand – The combination of normal and delayed purchases from those earlier, weak months
Low interest rate incentives – The Federal Reserve’s near-zero interest rate setting allows auto/truck manufacturers and home builders to maintain profitability (prices) while consumers feel they are getting a deal – if they act now
Likely, neither driver will be long-lasting, particularly if employment worries kick up again.
The bottom line – The tech bubble likely will not re-inflate
There has been clear “improvement” in the economy since nonessential closedowns occurred in March. However, most of this improvement came from simply reopening (in one form or another) with the positive impact from the stimulus payments.
Therefore, even as reopening broadens, added costs and restricted revenues will prevent a return to pre-coronavirus income levels. Moreover, with government benefits petering out and hiring slowing down, expectations of growth should be tempered.
All the above means that technology stocks and the stock market in general are likely to continue their downward adjustment period (i.e., extending the second downtrend in a “W” pattern).
The good news is that we then get to look forward to that second “W” uptrend.
This is my fifth article discussing this selloff. Here are my previous four articles…
Author: John S. Tobey