Staff, Author at Green Market Report - Page 20 of 153

StaffAugust 17, 2021
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5min9000

Field Trip Health Ltd. (Nasdaq: FTRP) reported its fiscal first-quarter 2022 results for the three months ended June 30, 2021. Field Trip said it earned patient services revenues of $867,400 from its Toronto, New York, Santa Monica, Chicago, Atlanta, and Houston clinics, a 65% increase over the fourth fiscal quarter patient services revenues of $526,435. The net loss for the first fiscal quarter of 2022 of $12,530,395 was primarily due to total operating costs of $12,310,930, of which $1,599,451 related to non-cash share-based compensation and depreciation and amortization excluding leaseholds.

The Houston clinic was open for about half the quarter. By comparison, revenue in fiscal first-quarter 2021 (for the three months ended June 30, 2020) was $23,599 with only one facility – Toronto – in operation. The company said it expects to scale revenue as the clinics continue to ramp up. The company has $99 million in cash and cash equivalents.

Joseph del Moral, Field Trip’s CEO, said, “Our differentiated strategy provides us with a path to drug development and commercializationleveraging the synergies between our drug development and clinics businesses to collect data and insights that can be used to ensure our approach is targeted and effective, with an optimal go-to-market strategy. We continue to successfully execute this strategy, advancing on FT-104 development work, opening Field Trip Health sites as well as advancing other research work to add to our drug development pipeline. Additionally, we are very pleased that our work with FT-104 continues to progress. These pre-clinical studies, which are necessary before we can move on to Phase 1 development, are expected to be completed by year end 2021. Commencing Phase 1 trials will be a key milestone for us, and the rollout of Field Trip Health centers give us a head start on executing on our research goals and gaining insights and data to potentially de-risk the path to approval for FT-104. Further, by interfacing with patients, providers and payers and building the infrastructure and technology to scale access to psychedelic therapies these sites also help to derisk the successful commercialization of FT-104 and other future pipeline drugs.”

Field Trip also announced that it has entered into leases and has started, or will soon start construction to build Field Trip Health centers in San Diego, CA, San Carlos, CA, Seattle, WA, Washington DC and Fredericton, NB. During the current fiscal quarter, the company also leased locations in Austin, TX, Stamford, CT, and Vancouver, BC.

Dr. Ryan Yermus, Field Trip’s Chief Clinical Officer added: “Our Health Sites are a key strategic asset for us as they enable us to gather large amounts of patient data on clinical outcomes which further enhances our research studies. On the patient side we are providing a vital service for those who were unable to get the desired results with other drugs and/or therapies protocols. During the quarter, we opened a Health Site in Houston, our sixth location, with Amsterdam opening subsequent to the quarter end. To date, our Psychedelic Assisted Psychotherapy treatments are primarily ketamine-assisted psychotherapies (KAP), with the Amsterdam site being our first Field Trip Health site focused on the therapeutic use of psychedelics using legal psilocybin truffles. We plan to leverage the data we collect from our Health Sites to create new treatment programs and innovate new patient offerings. Our preliminary results suggest that the benefits of KAP may last longer than ketamine infusions alone for treatment of depression and anxiety — often reporting an improvement from severe levels at intake to minimal upon program completion.”


StaffAugust 17, 2021
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4min9240

After the market closed on Monday, Glass House Brands Inc. (OTC: GLASF) (OTC: GHBWF)reported financial results for its second quarter ending June 30, 2021. Glass House‘s revenue increased 62% for the quarter to $18.7 million from last year’s $11.6 million. Glass House said the increase in revenue was primarily due to an increase in cannabis production from its second greenhouse cultivation facility, which began operations in the first quarter of 2020. The net loss increased to $4.7 million from last year’s $3.6 million.

“We have continued to build on the substantial forward momentum we developed coming out of our qualifying transaction by executing on our expansion strategies and scaling our operations,” said Kyle Kazan, Glass House Chairman, and CEO. “While our results are strong and show consistent growth for both the top and bottom lines, we did face a few challenges at our Padaro farm coupled with a softer California wholesale flower market that have negatively impacted some of our yields and our COGS. “With our strong balance sheet, a team of proven operators, and significant growth projects ahead of us, we remain confident that we are exceptionally well-positioned to take on the significant opportunities ahead of us in the world’s largest cannabis market. We are on track to close the acquisition of our 5.5 million square foot cultivation facility later this month and are looking forward to accelerating the rollout of our retail network upon closing a number of these transactions under the merger and exchange agreement later this year.”

Glass House noted that the expansion of the cultivation facility had increased from 113,000 square feet during 2020 to over 390,000 square feet by the end of 2020. In the second quarter, wholesale and wholesale CPG revenue increased by $4.3 million or 54% compared to last year. The company’s cannabis retail dispensaries also contributed consistent revenue growth, increasing $2.8 million, or 77%.

Total operating expenses rose 56% to $9.6 million versus last year’s total expenses of $6.2 million. The company said that general and administrative expenses for Q2 2021 and Q2 2020 were $5.9 million and $4.6 million, respectively, an increase of $1.3 million, or 28%. The increase in general and administrative expenses is primarily attributed to the Company’s initiatives of operational expansion and used to support corporate, cultivation, and retail operations. Professional fees Q2 2021 and Q2 2020 were $1.9 million and $0.5 million, respectively, an increase of $1.4 million, or 288% related to the RTO transaction and other initiatives that occurred during the second quarter of 2021.

Glass House is sitting comfortably with cash and cash equivalents of $134.3 million as of June 30, 2021 versus just $4.5 million as of June 30, 2020. During the quarter, Glass House said it eliminated $38.3 million of debt through the completion of a Preferred Stock offering exchanging both principal and interest accrued to participating investors and issued both companies Preferred Stock and warrants, which triggered the equity conversion of all of the company’s outstanding Convertible Promissory Notes.


StaffAugust 16, 2021
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9min8440

It’s time for your Daily Hit of cannabis financial news for August 16, 2021.

On The Site

MariMed, Inc. (OTCQX: MRMD) reported its financial and operating results for the quarter ending June 30, 2021, as revenue increased 239% to $32.6 million versus last year and jumped  32% sequentially. MariMed also delivered a net income of $7.6 million in the second quarter of 2021 versus a net loss of $1.1 million in the second quarter of 2020, and net income of $4.3 million versus the first quarter of 2021. The company also increased its revenue guidance in 2021 to $118 million.

Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) is buying Colorado-based CBD-platform Balanced Health Botanicals (BHB) in a deal valued at $75 million. Balanced Health owns and operates one of the largest brands in the hemp-derived cannabidiol (CBD) market in the United States, providing Village Farms with immediate entry into the US CBD market in a consumer products category adjacent to the high-THC cannabis market, as well as the broader consumer packaged goods (CPG) wellness arena. Balanced Health is a profitable business and the acquisition is expected to be immediately accretive to net income.

Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) released its financial results for the three ending June 30, 2021, with total revenue of $29.5 million versus last year’s $8.3 million. Auxly’s total net revenues from the sale of adult-use cannabis in Canada were $20.9 million for the quarter, more than double the same period in 2020. The net loss from continuing operations was $3.6 million versus last year’s $30 million. The adjusted EBITDA improved to a negative $3.3 million versus last year’s negative $10.4 million.

Ayr Wellness Inc. (OTC: AYRWF) is buying cannabis beverage company Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers in a deal valued at potentially $40 million. The acquisition is expected to close by the end of 2021. Levia Cannabis-Infused Seltzers is currently available in Massachusetts. The products allow for rapid onset of the effects of THC, typically 15-20 minutes, allowing for a more consistent consumption experience than many edible products. Stifel Research recently completed a survey among cannabis consumers and learned that many new customers were trying edibles and beverages as a discreet way to try the product. Female consumers were 11% more likely to purchase a cannabis beverage said another recent study.

Though it may not feel true with record high temperatures scorching the country from West Coast to East, fall is waiting right around the corner, and with it Black CannaBusiness Magazine’s second annual Black CannaConference & Expo. The event will take place on November 18-20th at the Ernest M. Morial Convention Center in New Orleans, where hundreds of BIPOC Cannabis founders, professionals, and consumers will be coming together to network, educate, and be educated by some of the most high-profile professionals in today’s market.

 

In Other News

 

TPCO Holding Corp. (NEO: GRAM.U) (OTCQX: GRAMF) announced that it has appointed Troy Datcher to serve as the company’s new Chief Executive Officer, effective Sept 8th. The company also delivered its earnings results with net sales for Q2 2021 at $54.2 million, comprised of $11.9 million in direct-to-consumer revenue and $42.3 million in wholesale revenue. This was driven by 7.2% growth in the Company’s Direct to Consumer Business and 22.6% growth in Wholesale revenue. Q2 2021 DTC and wholesale revenues were $11.9 million and $42.3 million, respectively. Adjusting for a full year of sales beginning January 1, 2021, H1 2021 net sales would have been approximately $99.8 million. Gross profit for Q2 2021 was $8.1 million, or 15% of net sales. Adjusted EBITDA loss for Q2 2021 was $10.4 million. Adjusted EBITDA removes the effects of changes in the fair value of financial instruments, impairment charges, and other non-cash items.

Stem Holdings, Inc. d/b/a Driven by Stem (OTCQX: STMH) (CSE: STEM) reported results for the third fiscal quarter ended June 30, 2021. Stem reported third-quarter record gross sales of $12.4 million and net sales of $10.6 million, a 104% increase and 103% increase, respectively, over the prior year’s $6.1 million gross sales and $5.2 million net sales. Gross margin improved 7.6% to 41.8%, reflecting improvements in productivity, mix, and synergies from the Company’s acquisition of Driven Deliveries, Inc.

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) reported financial results for the second quarter ended June 30, 2021. Revenue increased 25% to over $1.2 million for Q2 2021 compared to $983,496 in Q1 2021 and increased 84% compared to $670,728 in Q2 2020. The net losses increased to $6.5 million. 

Origin Therapeutics Holdings Inc. (CSE: ORIG Proposed), an actively managed investment issuer focused on making equity investments in psychedelics-related companies, is pleased to announce that it has completed a non-brokered private placement resulting in gross proceeds of $6,550,000 through the sale of 26,200,000 special warrants priced at $0.25 per warrant. The net proceeds of the Offering will be used by Origin Therapeutics for investments in private, early-stage companies in the growing psychedelics sector.


StaffAugust 16, 2021
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3min8380

Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) released its financial results for the three ending June 30, 2021, with total revenue of $29.5 million versus last year’s $8.3 million. Auxly’s total net revenues from the sale of adult-use cannabis in Canada were $20.9 million for the quarter, more than double the same period in 2020. The net loss from continuing operations was $3.6 million versus last year’s $30 million. The adjusted EBITDA improved to a negative $3.3 million versus last year’s negative $10.4 million.

Hugo Alves, CEO of Auxly, commented: “We are thrilled to report a record quarter for Auxly where we saw significant growth in our net revenue, adjusted EBITDA and our share of the recreational cannabis market. We continued to hold the #1 spot in Cannabis 2.0 Product sales nationally, through our leadership in the vapour segment and consumer-driven innovations in new product categories such as concentrates. Our strong momentum in retail sales and the increasing prevalence of our brands within the segments that they compete, are the result of our focused strategy and the investments we’ve made in the human resources, assets and capabilities that we believe are needed to win in the consumer market and which differentiate Auxly from its competitors. We look forward to launching new and exciting products for consumers to enjoy as we continue to execute against our objectives in 2021.”

Auxly said that net revenues improved during the second quarter of 2021 by $14.0 million over the same period of 2020 and by $11.7 million over the first quarter of 2021 primarily due to its increased retail cannabis sales nationally and improvements in the company’s provincial customers’ inventory purchases following the prior quarter pullback. Consistent with prior periods, as the company does not participate in the Quebec market, approximately 85% of cannabis sales during the second quarter of 2021 originated from sales to British Columbia, Alberta, and Ontario.

Net income was $8.7 million for the quarter which represented a net income of $0.01 per share on a basic and diluted basis. Auxly said that the improvement in net income and loss positions was a result of net income of $12.3 million related to the sale of KGK, recognition of a gain from the Imperial Brands Debenture Amendments, improvements in continuing operating gross profits and income tax recoveries, partially offset by an impairment charge related to the Curative sale.

Auxly managed to cut the company’s expenses. Selling, general and administrative expenses were $12.1 million during the second quarter and $21.3 million years to date 2021, a decrease of $1.5 million and $5.1 million as compared to the same periods in 2020.


StaffAugust 16, 2021
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3min10800

Ayr Wellness Inc. (OTC: AYRWF) is buying cannabis beverage company Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers in a deal valued at potentially $40 million. The acquisition is expected to close by the end of 2021.

Levia Cannabis-Infused Seltzers is currently available in Massachusetts. The products allow for rapid onset of the effects of THC, typically 15-20 minutes, allowing for a more consistent consumption experience than many edible products. Stifel Research recently completed a survey among cannabis consumers and learned that many new customers were trying edibles and beverages as a discreet way to try the product. Female consumers were 11% more likely to purchase a cannabis beverage said another recent study.

“Ayr wants something exciting to offer every cannabis consumer of today and the future cannabis customer of tomorrow. Infused beverages, done right, will be game-changing to the mainstreaming of cannabis in the U.S., providing an approachable and sessionable form factor to new and existing customers. The acquisition of Levia brings Ayr into this rapidly growing segment with delicious, market-leading infused seltzer. We are excited to have Levia join Kynd premium flower and Origyn extracts in Ayr’s suite of premier national brands,” said Jonathan Sandelman, CEO of Ayr Wellness.

Levia is currently available in Massachusetts in three experiences and flavors

  • “Achieve” Raspberry Lime (Sativa)
  • “Celebrate” Lemon Lime (Hybrid)
  • “Dream” Jam Berry (Indica)

“With a formula that provides consistently great flavor and zero calories in an infused beverage experience, we believe Levia has enormous potential as an alcohol alternative. In just six months since its initial launch in Massachusetts, Levia has become the top selling THC beverage. As we finalize our updated national brand portfolio to address all segments and form factors, Levia will play a marquee role in each market where we operate,” Mr. Sandelman concluded.

Terms of the Deal

The terms of the transaction include $20 million in upfront consideration, made up of up to $10 million in cash with the remainder in stock. An earn-out payment of up to an additional $40 million will be paid in shares based on the achievement of revenue targets in 2022 and 2023.

 


StaffAugust 16, 2021
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6min21700

Ray Thompson is the Chief Operations Officer at Akerna. He has 15+ years of corporate management experience including operations, sales, and talent management. From 2008 to 2016, Ray served as the Senior Vice President of VisionLink, a multiagency humanitarian software platform. From 2016-2018, Ray was Head of Customer and Sales Operations at Gloo, a people development platform. With 20+ years experience in software systems, Ray specializes in meeting the unique needs of high growth technology companies and helping them scale. Ray has an MBA from University of Denver.

GMR Executive Spotlight Interview Q&A:

Title:

Chief Operating Officer (COO)

Company:

Akerna 

Years at current company:

3

Most successful professional accomplishment before cannabis:

Before Ray’s work in cannabis, he was part of the team that launched e-commerce for large brands like Vitamins.com and Whole Foods Market. During this time, Ray and his team pioneered many e-commerce features, including 1-click ordering, auto-refills and subscribe & saves, setting the standard when the industry was still nascent and paving the path for the e-commerce giants of today.

Company Mission: 

We are passionate about solving problems that better our world. Akerna provides data-driven cannabis solutions worldwide across the entire cannabis supply chain. Our technology empowers the cannabis industry to prove outcomes that positively change lives every day. 

Company’s most successful achievement: 

Our CEO, Jessica Billingsley, co-founded the company that invented seed-to-sale tracking in 2010. This was done upon identifying the need for organic material tracking and compliance SaaS solutions in the nascent cannabis industry. We recognized that due to the unique complexities and needs of the industry, cannabis needed technology built for it specifically, not just adapted from other industries. We believed visibility across the entire supply chain from seed-to-sale would be a requirement for the industry’s sustained growth. Today, this type of tracking is a requirement of most states that regulate legal cannabis.  

In 2017, we launched MJ Platform, the cannabis industry’s first ERP in response to the maturing of the cannabis market to multi-state enterprise businesses. We also led international expansion in the cannabis technology sector very early on in 2012 in Canada then into Spain. Today, our total footprint spans 23 states and 15 countries. Innovation and seeing what opportunities are next on the horizon – and then being ready for them first – has been a hallmark of Akerna since the inception of our flagship product MJ Freeway.   

In 2019, Akerna became the first cannabis software business to be traded on a major U.S. exchange, Nasdaq (ticker KERN). This listing was an unprecedented milestone for the cannabis industry and signified a shift in beliefs and generated ripples of opportunity for the future of the industry.    

Since then, we have grown the Akerna family to include many leading cannabis and alcohol technology solutions: Ample Organics, Last Call Analytics, Leaf Data Systems, MJ Freeway/MJ Platform, solo sciences, Trellis, and Viridian Sciences.  

Today, Akerna is the cannabis industry’s only scaled technology provider, enabling compliance, regulation, and taxation. We provide the single most comprehensive product ecosystem for cannabis operators that have businesses across any part of the supply chain, from seed-to-sale. This provides transparency and accountability along virtually every piece of the supply chain.   

Over the past decade, we have seen much change in the political and social environments surrounding cannabis. As we prepare for a post-legalization landscape and the industry continues to consolidate and mature, we firmly believe the enterprise capabilities we offer, including comprehensive compliance solutions and financial reporting integrations, will become increasingly crucial to the future leaders of the cannabis industry.    

Has the company raised any capital (yes or no):  

Yes 

If so, how much? 

Since going public Akerna has raised $22,000,000 

Any plans on raising capital in the future? 

 We feel we are well capitalized today and continue to have institutional support and access to the markets should the need arise.  We are always carefully evaluating the needs of the business to maximize long-term shareholder value.  

Most important company 5 year goal: 

To be the dominant provider of technology to the cannabis, hemp, and CBD industries, while also serving additional verticals by providing complete accountability and transparency to what consumers are putting in and on their bodies. 

 


StaffAugust 13, 2021
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8min13341

Charlotte’s Web (OTC: CWBHF) CEO Deanie Elsner addressed the company’s recent rejection letter by the FDA in the company’s earnings call on Thursday. Since the passage of the 2018 Farm Bill that legalized hemp, the issue of CBD products has remained in a grey area. The FDA has had several public meetings and accepted public comments on the subject, but it still hasn’t made any specific decisions.

Charlotte’s Web was specifically focused on a regulatory pathway for full spectrum hemp extract with naturally occurring CBD. CBD products remain unregulated as the industry has grown to become a $3 billion to $4 billion industry.

FDA Punts To Congress

“After 2.5 years, it has become increasingly more apparent that in the FDA’s own words, potential legislation might be appropriate to enable a framework for under which the FDA can regulate full spectrum hemp extracts as dietary supplements,” said Elsner. “During the second quarter of 2021, we put this thesis to test by formally submitting a new dietary ingredient notification to the FDA for our full spectrum hemp extract as they have been recommending. The FDA responded with an objection letter to our NDI notification. Their response substantially based on their drug preclusion provision reveals that legislation is required to enable the FDA to establish a regulatory oversight for full spectrum hemp extracts as dietary supplements. Both the House and the Senate have introduced bills that would recognize hemp CBD as a dietary supplement and we are encouraged by this progress.”

When asked about the specifics of the letter, Elsner went on to say, “I will start with we were disappointed and strongly disagreed with not just the conclusion that they advanced, but the reasoning for their conclusions, because their letter back to us contained a significant amount of factual inaccuracies. And so the first thing I would tell you to do is on our website in the IR section, we have posted our response to the FDA. And we laid out an excruciating detail why we think they need to create the record in terms of what we submitted and what they concluded.

Now, that said, they drew a conclusion based on two examples. One was, they can’t move forward with an NDI as a dietary supplement because CBD is precluded, because it’s already a drug. And as you know, six months prior to the hemp bill being signed into law in December 2018, a drug was approved that’s CBD isolate. The second reason why they objected to our NDI was that they expressed safety concerns. And I think that’s the part that we are looking for a correction on, because regarding safety, the conclusions drawn just don’t appear to be based on the data we provided in our NDI. So, that’s we are trying to get focused on. In terms of what does it mean, I think what you are getting to is, it is the industry has been caught in a little bit of a catch-22, because the FDA has not been clear about the process by which they want companies to go through to gain regulatory clarity. And Congress has been pointing to the FDA to take responsibility for this.

And so our decision was full transparency, to force the issue to see who has the next decision. And with the FDA objecting to our NDI, it becomes very clear that the regulatory process to get established has to start with Congress, legislative and the FDA to regulate the dietary supplement for CBD, and then FDA can regulate within. And so I am confident there is a way to do this. Over the last 18 months, we have met with the FDA, about eight to ten different times and our meetings were very constructive. I have got a great deal of respect for the FDA. But I think they are in a bit of a catch-22, because they have approved the drug. And they can’t seem to move away from that precedent. And so Congress has to act. And I think once Congress acts, the FDA can be very clear about the process. The process is scientific. It’s intense. There is a ton of data that we have got to do to submit for it. And I feel really good having gone through this knowing what they are looking for. But now we need Congress to act. And when that happens, I think the category will be able to submit NDIs and the whole thing will begin to open up.”

THC Challenge

Elsner was asked whether relying on Congress would be any better and she answered, “This is not just a CBD hemp industry challenge. This is a THC sector challenge, because we are going through with hemp extracts with naturally occurring CBD is exactly what the cannabis industry is going to have to do following us. And so this is not Congress, maybe or maybe not engaging on the hemp CBD industry. This is Congress looking at a category today, that is roughly $17 billion to $20 billion in total in the US across 11 states where cannabis is legal and CBD participates. And so some kind of resolution has to be landed for how both of these categories are regulated. And the FDA has to have clarity and perspective about how they want companies to produce safe products for consumers in a way that is holding manufacturers to a very high level of standard. And so we are doing this for ourselves, but doing this for our category. We are doing this in support of our consumers. But it’s the whole sector that is going to put the pressure for Congress to act and push the FDA to move forward. And we will continue to push both fronts.”


StaffAugust 13, 2021
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5min7340

Goodness Growth Holdings, Inc.  (OTCQX: GDNSF) reported financial results for its second quarter ended June 30, 2021, as revenue jumped 16.5% to $14.2 million over last year. The net loss for the quarter was $5.5 million, down from last year’s net loss of $16.1 million for the same time period. Goodness Growth said the improvement was driven by the increase in gross profit margin and lower operating and other expenses, partially offset by increased income tax expense.

Goodness Growth stated that excluding results from its former subsidiaries in Pennsylvania, revenue increased 44.5 % versus the 2020 second quarter.

The company said that retail revenue excluding Pennsylvania increased 35.7 % to $11.3 million in the quarter and reflected growth in each of its retail markets. Wholesale revenue, excluding Pennsylvania and Ohio, increased by 92.1% to $2.9 million, driven by strong growth in Arizona and New York.

“Our second quarter performance was in line with our expectations, and we were pleased to see increased scale and efficiency of operations contribute to record gross margin performance during the quarter,” said Chairman and Chief Executive Officer, Kyle Kingsley, M.D. “As we discussed on last quarter’s call, our wholesale performance in Maryland was temporarily impacted by the move to our recently completed state-of-the-art manufacturing facility, and we expect to see that facility reach normalized production levels during the third quarter of this year. Additionally, our expansion projects in New Mexico and Arizona will help strengthen revenue and profitability in the second half of this year, especially in the fourth quarter when the expansion projects are operating at full capacity.”

The company was able to reduce the total operating expenses in the second quarter to $10.2 million, a drop of $5.5 million as compared to $15.6 million in the second quarter of 2020. The decrease in total expenses was attributable to a decrease in stock- based compensation expenses, partially offset by increased general and administrative expenses which was driven by operational buildouts in Arizona and Maryland, where the Company is in the process of completing large cultivation and manufacturing expansion projects.

Dr. Kingsley continued, “Our operating teams are focused on flower production, strain variety and quality in all of our markets, and we’re continuing to make progress on our expansion plans in New York and we will share updates on these plans throughout the year. As a reminder, the recent passage of adult-use legislation in New York and New Mexico and the inclusion of flower to Minnesota’s medical program have substantially improved our long-term outlook in each of these markets.”

The company said it expects to open an additional 6-10 Green Goods retail dispensaries, and a majority of the Company’s markets are expected to begin to generate more substantial revenue growth as pending changes to regulatory regimes take effect.

Goodness Growth also appointed Josh Rosen to its Board of Directors, expanding its number of board seats to seven. Josh Rosen is Managing Partner at Bengal Capital, and former Chief Executive Officer and Chairman of 4Front Ventures, a multi-state U.S. cannabis operator.


StaffAugust 12, 2021
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9min9530

It’s time for your Daily Hit of cannabis financial news for August 12, 2021.

On the Site

 Columbia Care Inc.  (CSE: CCHW) (OTCQX: CCHWF)  reported financial and operating results for the second quarter ending June 30, 2021, as revenue grew 232% to $109.7 million. This was a sequential increase of 19% and in line with the average analyst estimate from Yahoo Finance for revenue of $109 million. Columbia Care noted that the second quarter 2021 results included contributions from Green Leaf Medical as of the date of acquisition, June 10, 2021. With the close of the Ohio acquisition in July, all financial reporting will be consolidated under Reported Results going forward.

WM Technology, Inc.  (Nasdaq: MAPS) announced its financial results for the second quarter ending June 30, 2021. Revenue increased to $46.9 million, up 21% from the second quarter of 2020 or 55% when adjusting the prior second quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from Weedmaps marketplace. WeedMaps reported a net income of $16.8 million versus $9.4 million from the prior-year period. Adjusted EBITDA was $8.5 million as compared to $10.4 million from the prior year period. 

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported financial results for the second quarter ending June 30, 2021 with consolidated revenue increasing 11.4% year-over-year to $24.2 million. This missed the Yahoo Finance average analyst estimate for revenues of $28 million. Charlotte’s Web said that increased retail volumes have resulted in ongoing incremental quarterly gains in retail market share. Charlotte’s Web grew its number one market share across its core retail channels, including total US Food/Drug/Mass retail, total US natural specialty retail. Net losses were trimmed to $5.3 million from last year’s $14.4 million. The earnings per share were ($0.04) which fell from last year’s ($0.13). It also beat the estimates for ($0.05).

Serial hydroponic acquirer GrowGeneration Corp. (NASDAQ: GRWG) reported record second-quarter 2021 revenues of $125.9 million, versus $43.5 million in the same period last year. This beat the average analyst estimate from Yahoo Finance for revenues of $111 million.  GrowGen also reported second-quarter 2021 GAAP pre-tax net income of approximately $9.6 million versus pre-tax net income of $2.7 million in the same period last year. The company also raised its 2021 revenue guidance to $455 to $475 million. Diluted earnings per share, inclusive of tax expense, were $0.11 versus last year’s $0.06. This slightly missed the estimate for earnings of $0.12. Investors weren’t pleased and sent the stock tumbling over 9% to lately sell at $39. The average price target for the stock is $59.

Neptune Wellness Solutions Inc.(NASDAQ: NEPT) (TSX: NEPT) delivered its financial and operating results for the first-quarter ending on June 30, 2021 as revenues rose slightly to $12.4 million versus $11.2 million in the fiscal year 2021. Neptune said it exceeded its pre-announced revenue range of $10 to $12 million. First-quarter revenues of $12.4 million increased 83% versus revenues of $6.8 million in the fourth quarter of the fiscal year 2021. Still, Neptune delivered a net loss of $23 million versus last year’s net loss of $11.4 million for the same time period. Despite the company’s ability to bring in revenue, the executive management team said it had asked the Board of Directors to form a Strategic Review Committee to evaluate the company’s business plan, capital deployment, and long-term strategy to identify alternatives to enhance shareholder value.

 

Aleafia Health Inc. (OTCQX: ALEAF) delivered its financial results for the quarter ending June 30th, 2021 with revenue of $10.6 million. The net loss for the quarter was $36,000 versus a net loss of $4.0 million over the prior year’s quarter. Aleafia said the improvement in net loss over the prior year’s quarter was primarily due to improved gross profit, a $12.1 million gain on the sale of certain clinic assets in the transaction with Myconic, partially offset by bad debt expense of $7.2 million.

In Other News

Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) announced financial results for its second quarter ended June 30, 2021. Net sales increased 46.7% to $133.8 million compared to $91.2 million. Gross profit increased 65.5% to $29.6 million, or 22.1% of net sales, compared to $17.9 million, or 19.6% of net sales. Net income attributable to common stockholders was $2.3 million or $0.05 per diluted share compared to a $1.9 million or $0.08(1) per diluted share. Pro forma adjusted net income(2) was $12.5 million or $0.30 per pro forma diluted share compared to $4.0 million or $0.12 per pro forma diluted share. Adjusted EBITDA(2) increased 127.5% to $16.2 million compared to $7.1 million.

Agrify Corporation (NasdaqCM:AGFY) announced financial results for the period ended June 30, 2021. Revenue increased 203% to $11.8 million for Q2 2021 compared to $3.9 million for Q2 2020 and increased 69% sequentially from $7 million in Q1 2021. Net losses increased to $5.6 million. New bookings were $30.7 million for Q2 2021, which is the highest quarterly bookings total for the Company to date. Total backlog increased to $101.1 million from $82.2 million at the end of Q1 2021.

cbdMD, Inc. ( NYSE American: YCBD, YCBDpA) announced its financial results and its business highlights for its third quarter ended June 30, 2021. Net sales of $10.6 million for the third quarter of fiscal 2021 remained steady year-over-year resulting in record trailing twelve-month net sales of over $46.4 million.  E-commerce direct-to-consumer net sales were $7.8 million, a decrease of 4.9% from the prior year’s third fiscal quarter. Loss from operations increased to $6.7 million for the third quarter of fiscal 2021 compared to $1.4 million from the prior year’s third fiscal quarter. Net income attributable to common shareholders for the third quarter of fiscal 2021 was approximately $977,000, or $0.02 per share, as compared to net loss of approximately $9.1 million, or $(0.18) per share from the prior year’s third fiscal quarter. The net income attributable to common shareholders was principally attributable to a decrease of approximately $6.9 million in the non-cash contingent liability which is associated with earnout shares which may be issued under the terms of the December 2018 acquisition of Cure Based Development (which owned the cbdMD brand).


StaffAugust 12, 2021
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WM Technology, Inc.  (Nasdaq: MAPS) announced its financial results for the second quarter ending June 30, 2021. Revenue increased to $46.9 million, up 21% from the second quarter of 2020 or 55% when adjusting the prior second quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from Weedmaps marketplace.

WeedMaps reported a net income of $16.8 million versus $9.4 million from the prior-year period. Adjusted EBITDA was $8.5 million as compared to $10.4 million from the prior year period. Basic net income per share was $0.07 based on 63.7 million of Class A Common Stock weighted average shares outstanding. Diluted net loss per share was $(0.17) based on 71.3 million Class A Common Stock weighted average diluted shares outstanding. Cash totaled $91.7 million as of June 30, 2021.

“Our second-quarter results and momentum are evidence of the opportunities we have across our end-markets. We saw strong growth in both users accessing the Weedmaps marketplace, and clients leveraging our WM Business software offering within our U.S. end-markets. The growth in client monetization we are driving versus a year ago is evidence of WM Technology’s value proposition to our clients as they seek to grow their businesses compliantly and access hard-to-reach users. We have also seen positive developments with the pace of license issuance within our existing end-markets and the pace of new states passing regulations for adult-use,” said Chris Beals, CEO, and Chairman of WM Technology. “While we are proud of these results, we remain focused on executing against our plans to establish the Weedmaps marketplace as the center of commerce for cannabis consumers and WM Business as the software solution of choice for cannabis businesses.”

Users Increase

Weedmaps said that monthly active users (“MAUs”) increased to 12.3 million at the end of June or 75% compared to the prior-year period (or 56% when adjusting the current period to exclude the MAUs attributed to the Learn section of weedmaps.com that we were not able to track during the prior period). Average monthly revenue per paying client increased to $3,706 or 24% compared to the prior-year period (or 21% when excluding revenue from Canada-based retail operators who failed to provide valid license information from the prior-year period). Average monthly paying clients decreased to 4,221 or (2)% compared to the prior-year period (or increased 28% when excluding Canada-based retail operators who failed to provide valid license information from the prior-year period).

Arden Lee, WM Technology’s CFO, added, “Our $47 million in second quarter revenue represents a 55% increase over the second quarter of last year, when adjusting the second quarter of last year to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were removed from the Weedmaps marketplace during the second half of 2020. Our results reflect double-digit year-over-year increases in both Average Monthly Revenue per Paying Client and Average Monthly Paying Clients using WM Business within our U.S. end-markets. We are investing heavily on multiple product-driven growth opportunities and new market openings for 2022 and beyond, while capitalizing on solid operating momentum across our existing end-markets. We continue to expect total revenue and adjusted EBITDA of $205 million and $50 million for 2021, consistent with our prior guidance.”


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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