It’ time for your Daily Hit of cannabis financial news for December 10, 2018.
On The Site
Cresco Labs, Inc. (CSE: CL), a multi-state cannabis operator, today announced its financial results and operational highlights for the third quarter, which ended on September 30, 2018.
Revenue for the quarter increased to $12.2 million, representing a quarter-over-quarter increase of 51% and a year-over-year increase of 335%. Cresco’s net income nearly doubled from $2.0 million in the previous quarter to $3.9 million.
Gross profits, before gains from biological assets, increased to $5.4 million, compared to $3.5 million in the previous quarter. Adjusted EBITDA for the quarter rose from $2.1 million in the previous quarter to $5.9 million.
Dixie Brands Inc. (CSE: DIXI.U) announced its financial results for the three-month and year-to-date periods ending September 30, 2018. Revenue was $2,435,000 in the third quarter of 2018, an increase of 110% over last year’s $1,162,000 for the same time period. However, Dixie delivered a net loss of $2,404,000 for the quarter versus $630,000 for the third quarter of 2017.
Dixie completed a reverse takeover in order to go public during the third quarter and this set back the company’s ability to record net income. Year-to-date, the company suffered a net loss of $4,696,000 in 2018.
The 2018 Farm Bill was expected to be voted on this Monday, December 10, but that didn’t happen. It’s possible it will still come to a vote this week. It is expected to pass with language legalizing hemp farming. It seems a compromise has been reached between the politicians on issues that had been stalling the legislation.
Hemp farmers and CBD-related companies will benefit the most from the passage of the Farm Bill. CBD or cannabidiol is derived from the cannabis plant but has none of the psychotropic effects of THC. In The Farm Bill, there is language that amends the Controlled Substances Act and legalizes CBD.
In Other News
CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) announced that Cannabis Royalties and Holdings Corp. has entered into a share purchase agreement with Green Relief Inc. to sell its equity stake in Bodhi Research & Development Inc.
Green Relief will first purchase from CRHC and other vendors, 51% of all outstanding common stock of Bodhi Research for $20 million in shares of Green Relief. Under the agreement, there is also the potential for the future sale of the remaining 49% of the outstanding common stock of Bodhi Research for an additional $20 million, to be paid in Green Relief common shares.
Aurora Cannabis (NYSE: ACB) has acquired Farmacias Magistrales. Farmacias has been granted Mexico’s first and only license to date to import raw materials containing > 1% THC, a process which took over four years to successfully complete.
Farmacias owns and operates a high-quality 12,000 sq. ft. facility in Mexico City for the production of pharmaceuticals. The facility is licensed for the import of raw pharmaceutical ingredients, including cannabinoids (THC and CBD).
Grown Rogue announced a formal partnership with Jeff Shepherd, voted one of North America’s Top 10 Chocolatiers by Pastry Arts and Design to create a line of dark chocolate cannabis edibles. The partnership between Shepherd and Grown Rogue features THC and CBD infused chocolate products under the GRAM and Grown Rogue brands – both wholly owned by Grown Rogue International.