Public Archives - Green Market Report

StaffMay 19, 2022
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4min3020

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) now fully owns the Seaside, California store also known as Urbn Leaf. Harborside had initially purchased a 50% ownership in the dispensary, but with the new transaction, it will own all of the issued and outstanding securities of 680 Broadway Master, LLC which owns the Seaside Store, bringing the company’s interest in the Seaside Store to 100%.

“A leading retail footprint is fundamental to our objective of becoming one of California’s leading, fully-integrated cannabis companies,” said Ed Schmults, Chief Executive Officer of Harborside. “We’re excited to acquire full ownership of the Seaside Store, a great location on Monterey Bay that caters to both area residents and tourists. We look forward to further expanding our retail footprint in Northern California.”

The deal was the result of a legal settlement with the company’s former partner in the Seaside Store. As a result, the total cost of the acquisition was only $440,000, with $100,000 to be paid upfront and the balance payable over seven years, with $50,000 being paid on the first to sixth anniversaries of the First Installment, and $40,000 being paid on the seventh anniversary of the First Installment.

The Seaside Store, which is branded under the Urbn Leaf banner, has an unexpected origin, having transformed from a thrift store back in June 2019 into its current contemporary retail cannabis location. The Seaside Store is conveniently located in the heart of Seaside (on Monterey Bay), just off Broadway Avenue. Monterey Aquarium, Fisherman’s Wharf, Ribera Beach, Lovers Point Park and other attractions are located nearby.

Expansion

Last week, Harborside announced it opened two new retail stores in California, bringing its total retail store count to 13. It has opened a new Harborside-branded store in San Francisco, and a new Urbn Leaf-branded store in La Mesa, located in San Diego County.

“Expanding our retail footprint in both northern and southern California with these attractive new stores in excellent locations is an important step forward,” said Schmults. “It is particularly notable that these stores have significantly less square footage compared to many cannabis dispensaries in the state. This smaller footprint reflects a much more sustainable approach to cannabis retail in an evolving market. We believe that both stores are well positioned for long-term success.”

Excluding bulk sales, which Harborside has discontinued since completing the Acquisitions, management estimates that the company’s pro forma 2021 sales would have totaled approximately $190 million.

 

 


Debra BorchardtMay 18, 2022
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4min4410

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  released its financial results for the three months ended March 31, 2022, as revenue fell from the fourth quarter’s $217 million to the first quarter’s $214 million. Cresco Labs did note that the revenue increased 20% over last year’s $178 million for the same time period. This also beat the Yahoo Finance average analyst estimate for sales of $213 million.

Net losses for the quarter grew to $23 million over the fourth quarter’s net loss of $11 million. It was down slightly from last year’s net loss of $24 million for the same time period.

“Q1 was a solid quarter for the Cresco Labs team in a challenging environment for all consumer product categories. While our 10-state footprint saw a cumulative sequential contraction of 4.5%, we held or took market share in most of our states and outperformed the markets with our 2% decline. We understand that an emerging industry’s growth trajectory is rarely linear, especially a highly regulated industry with a fragmented state-by-state structure, conflicting federal and state laws, and the addition of general macro pressures. Notwithstanding, we continue to execute with a clear and focused strategy to obtain market leadership with a portfolio of cannabis brands consumers love and a plan to get them on as many shelves as possible. The strategy remains constant, and the Columbia Care acquisition announced in the quarter simply fits these stated priorities hand-in-glove. We are pairing the best consumer brands with a broad, deep and strategic footprint,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs.

Revenue Breakdown

Cresco noted that it had wholesale revenue of $95 million and maintains that it has a position as the #1 seller of branded cannabis products in U.S. with leading share in the flower, concentrates, and vape categories. Retail revenue increased 44% year-over-year, to $119 million, or $2.5 million per average store open in the quarter and same-store sales increased 9% year-over-year.

Cash Burn

The company is certainly sitting on a comfortable level of cash with $179 million on hand at the end of the quarter. However, the company burned through $44 million in cash in the quarter, a big jump from the cash used in the fourth quarter of $28 million.

“The first quarter showed the resilience and strength of the business we have built over the past few years. We remain focused on playing the long game and building a business that will be a lasting leader in the cannabis industry under any regulatory outcome. The compliance-focused foundation of both Cresco Labs and Columbia Care is helping ensure a smooth progression towards deal approval through a reasonable and manageable regulatory process. We recently crossed our first milestone by passing the federal HSR review process on May 16 and we do not expect state regulatory approvals to be an issue for our closing timeline,” Mr. Bachtell concluded.

On March 23, 2022, the company announced a definitive arrangement agreement whereby Cresco will acquire Columbia Care in an all-stock transaction.

 

 


Debra BorchardtMay 17, 2022
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5min5690

After several lackluster quarters, cannabis software company Akerna (Nasdaq: KERN) announced that it has hired JMP Securities to assist in evaluating strategic alternatives as the company and the board seeks to maximize stakeholder value. Akerna also reported that CFO John Fowle is leaving to pursue other interests, effective May 17. The Board has appointed Dean Ditto as Akerna’s interim CFO

“Our goal is to ensure we are taking every possible step to maximize value for our stakeholders,” said Jessica Billingsley, CEO and Board Chair of Akerna. “We are actively involved in strategic discussions and are happy to have JMP assist us in evaluating our opportunities, given their deep experience in the technology sector. We are confident in our ability to capitalize on the strength of our business, and we remain intensely committed to our clients, our team members and all other stakeholders.”

Fowle recently said on the company’s earnings call, “The ability of the company to continue as a going concern is dependent on our ability to secure other sources of financing, reduce debt, and attain profitable operation. Our corporate liquidity requirements primarily include payroll costs, corporate overhead expense, and debt service costs and our current sources of liquidity include cash on hand, as well as proceeds we anticipate from the access to our ATM programs. The board is addressing the working capital deficiency and considering all options available to the company in the best interest of our shareholders.”

The company’s recent filing spelled out the news more starkly saying, “If we cannot timely raise additional funds, we may also be unable to meet the financial covenants of the Senior Convertible Notes, which could result in an event of default under those instruments which could negatively impact the Company.”

Akerna President and COO Ray Thompson will become a Special Advisor to CEO. In this role, Ray will continue to oversee the legacy business, assist the CEO with special projects and advise on various aspects of corporate strategy.

“It’s been a privilege to serve as President & COO for Akerna, and I look forward to continuing to advise the organization on its business strategies in my new role as Special Advisor to the CEO,” said Ray Thompson.

Akerna’s Losses

Last week, Akerna reported that its software revenue was $6.5 million in the first quarter, up 71% year-over-year and total revenue was $7.0 million, up 73% year-over-year. However, the loss from operations was $20.6 million, up $17.1 million year-over-year and the net loss was $22.0 million, up $15.5 million year-over-year.

Akerna recently reported its 2021 earnings with total revenue of $20.7 million, up 49% year-over-year. The loss from operations though were $33.4 million, up $6.6 million year over year and the net loss was $33.6 million, up $6.7 million year-over-year.

Going Concern

In the company’s latest filing it noted, “Since our inception, we have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing operations. During the three months ended March 31, 2022, and March 31, 2021, we incurred a loss from operations of $20.6 million and $3.5 million, respectively, and used cash in operations of $3.6 million and $1.4 million, respectively. As of March 31, 2022, a working capital deficit of $15.1 million with $9.7 million in cash available to fund future operations. We will require additional financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior Convertible Notes.”

 


StaffMay 17, 2022
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6min4630

Halo Collective Inc.  (NEO: HALO) (OTCQB: HCANF) announced its financial results for the first quarter ending March 31, 2022, as revenue declined 23% to $7.6 million versus revenue of $9.9 million for the same time period in 2021. Halo said that sales were impacted by a significant downturn in both the California and Oregon markets. The company also said that the flower category, which is a leading indicator, sharply declined, with sales falling by 23% in California and 26% in Oregon year over year. Halo also reported a net loss of $13 million in the quarter, which increased over last year’s net loss of $9 million.

“Marked to market the company’s estimated unrealized gain before taxes at March 31, 2021, on Halo’s investment in Akanda was approximately $74.6 million,” said Kiran Sidhu, CEO, and Director. “We expect that if the intended acquisition and subsequent spin out of PhytoCann SA is completed, it will also create substantial value by delivering meaningful revenue and operating profit contribution.”

Oregon Issues

The company noted the numerous issues within the Oregon market and is attempting to address them while the state tries to rectify the situation. Halo said it decreased distribution of its products to Oregon dispensaries from 478 on December 31, 2021, to 464 on March 31st, 2022. the company also noted that bad debts have been reduced, and accounts receivable days have decreased. It plans on further reductions planned of production overheads and “right-sizing” of the business for current revenue and future projections. It has also reduced outdoor cultivation operations both in scope and cost for the 2022 growing season to decrease working capital expenditure and improve cash flow.

Halo said in a statement that in March 2022, the Oregon legislature signed HB4016, a moratorium that inactivates all marijuana license applications received after January 1, 2022, until March 31, 2024. Additionally, it allows the Oregon Liquor and Cannabis Commission to refuse to issue any new marijuana licenses until further notice. Halo anticipates this favorable policy change will decrease saturation and lead to rising wholesale cannabis prices over time. The net effect of this bill is expected to result in an increase in product profitability in the State of Oregon.

California

As of April 2022, Halo discontinued operations at Coastal Harvest and consolidated with Outer Galactic Chocolates/Mendocino Distribution and Transportation LLC, which will reduce overheads and increase profitability in the second quarter 2022. The company anticipates Governor Newsom’s tax proposal- which would eliminate cultivation tax starting July 2022– if passed, would further increase profitability and growth of the California business segment.

“Halo’s California wholesale business segment is EBITDA positive and scaling. We expect to re-achieve positive EBITDA contribution from the Oregon wholesale business segment in the latter half of 2022,” added Joshua Haddox, Chief Operating Officer.

“The Company’s California dispensary business segment officially opened in Q1 and is growing quickly. After a six-month ramp-up period per dispensary, we expect the Los Angeles dispensaries in North HollywoodWestwood, and Hollywood to contribute positive EBITDA,” commented Beau McKeon, Senior Vice President of Retail Operations.

Looking Ahead

“In 2022, we intend to develop, grow, and ultimately monetize assets by incubating promising cannabis related businesses while remaining laser-focused on optimizing West coast cannabis operations. The planned spinout of Halo Tek Inc. is expected to result in a distribution to all Halo shareholders. The intended acquisition of Phytocann is expected to add significant revenue and EBITDA to the Company in late 2022,” said Katie Field, President, and Director. The company remains a going concern according to its filing.


StaffMay 13, 2022
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4min4870

After the market closed on Thursday, IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC)reported financial results for the first quarter ending March 31, 2022 as revenues increased 169% year-over-year to $23.6 million. IMCC said that total dried flower sold in the quarter was 3,035kg at an average selling price of $6.23 per gram, compared to 1,185kg for the same period in 2021 at an average selling price of $4.94 per gram, derived mainly from the higher average selling price per gram the company recognized through its acquired pharmacies in Israel.

IMCC also delivered a net loss of $10.7 million in the quarter versus net income of $4.7 million for the same time period in 2021. Basic and diluted loss per share in Q1 2022 of $0.14 and $0.17, respectively, compared to basic and diluted income (loss) per share in Q1 2021 of $0.11 and ($0.06), respectively.

“We continue to progress well on our path to profitability and achieved another quarter of record revenues, which grew 169% year-over-year in the first quarter,” said Oren Shuster, Chief Executive Officer of IMC. “We execute key initiatives that drive margin expansion within each of our market segments and across our operating footprint, which reflect the benefits of integrating our global model. In Israel, we work to consolidate four of the country’s leading pharmacies and centralize our distribution and customer support to potentially create significant cost savings while strengthening our brand presence. We also increasingly leverage yield from our Canadian cultivation facilities for our products imported to and sold in Israel, which exhibit a gross margin profile that is nearly double that of products sourced from suppliers.”

While the company didn’t give a numerical forecast for the second quarter it did say that it continues to experience meaningful growth across its global platform, primarily in Israel and Canada, reflecting the continued execution of the company’s strategy, its accelerating international brand presence, its focus on cultivating premium flower, and its global distribution and supply chain model. On a preliminary, unaudited basis, IMC said it expects second quarter revenue and gross margin to increase sequentially.

“In Canada, our WAGNERS and Highland Grow brands have achieved market share leadership due to our relentless focus on delivering upon consumer expectations, with each brand holding a top three ranking in Ontario within their price segments. As we increase internal cultivation toward full capacity, we also focus on key operational initiatives to improve yield and reduce volume-based costs. These initiatives will help us reach positive Adjusted EBITDA, which we expect to achieve on a run rate basis in the second quarter of 2022, positioning us to be cash flow positive on a run rate basis in the following quarter.”


StaffMay 12, 2022
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5min5280

TerrAscend Corp.  (CSE: TER) (OTCQX: TRSSF) reported its financial results for the first quarter ending March 31, 2022. Net sales for the first quarter of 2022 totaled $49.7 million, up 1% sequentially and down 7% year over year. TerrAscend attributed the decline to the vape recall on the Pennsylvania business, combined with the continued intentional accumulation of inventory in New Jersey, versus selling wholesale, in preparation for adult-use sales. The company’s Canadian business also experienced a soft quarter both sequentially and year over year. The declines were partially offset by three weeks of revenue from the Gage acquisition, which closed on March 10th.

The net loss for the quarter was $16.0 million, mainly driven by the operating loss, accrued income taxes of $3.7 million, and finance and other expenses of $6.9 million, partially offset by a net gain on fair value of warrant liability of $5.7 million.

“While revenue and margins during the first quarter were impacted by the industry-wide vape recall in Pennsylvania and front-loaded operating costs in New Jersey ahead of adult use, we expect revenue and margin to increase materially in the second quarter and beyond,” said CEO Jason Wild. “The strategic decisions and investments we have made over the last three years position us well for substantial growth in each of our four key markets – New JerseyPennsylvaniaMichigan, and Maryland.”

New Jersey Gets Busy

The company got very busy after the quarter ended with its business in New Jersey. It celebrated the grand opening of adult-use sales on April 21st in Maplewood and Phillipsburg, New Jersey, two of only twelve dispensaries currently opened in the state. TerrAscend was approved for hydrocarbon extraction in New Jersey with the first products recently launched. It signed a lease on a new facility in New Jersey, which will provide expanded capacity up to the 150,000 canopy square foot limit. Plus, the company received a home delivery license for medical patients in New Jersey.

Mr. Wild continued, “New Jersey adult use sales began on April 21st, a significant milestone for TerrAscend and the entire industry. Demand has been strong for our brands and our elevated retail experience. We recently introduced the first concentrates in the state and expect additional ‘first-in-state’ product introductions in the near future. In Pennsylvania, we continue to cultivate the highest quality flower in our history and have introduced new genetics, to which patients have reacted positively. In Michigan, Gage has positioned us as a leader in one of the largest cannabis markets in the U.S. Lastly, subsequent to the quarter end, we announced the acquisition of a medical dispensary in Maryland and 5 dispensaries in Michigan. These acquisitions exemplify our strategy of ‘going deep’ in the markets in which we operate. While remaining focused on organic growth, the dislocation in public and private company valuations should provide attractive M&A opportunities to accelerate growth in a financially disciplined way.”


StaffMay 12, 2022
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5min4500

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) announced its financial results for the third quarter of fiscal 2022 ended March 31, 2022, as total cannabis net revenue fell 17% sequentially to $50.4 million. Aurora recorded a number of one-time non-cash charges in the quarter of $741.7 million, asset-specific impairments of $176.1 million, and an inventory provision charge of $63.6 million.

Aurora has previously identified annualized cash savings of $60 million to $80 million and now expects to surpass the high end of this range with an additional $70 million to $90 million in savings by the end of H1 fiscal 2023, split evenly between costs of goods sold (“COGS”) and SG&A, for a total of up to $170 million in cash savings under this transformation program. Projected COGS savings now include the closure of the Aurora Sky facility in Edmonton (previously announced to be operating at approximately 25% capacity), in keeping with our diversified business portfolio, prudent approach to capital allocation, and our strategy in the Canadian adult-use market to focus on higher margin premium categories. These cash savings will be reflected in our P&L either as they occur within SG&A savings, or as inventory is drawn down for production-related savings.

“We continue to steer our differentiated global cannabis business towards long term shareholder value creation. This is being accomplished through a sole focus on the most profitable growth opportunities, rationalization of our Canadian cost structure and disciplined use of capital. Our plan is working and we remain firmly on track to achieving a positive Adjusted EBITDA run rate by the first half of fiscal 2023. Today, we are announcing further cost savings which will enable us to increase our range of savings under our business transformation plan from $60 to $80 million to $150 to $170 million. Our balance sheet also remains among the strongest in the industry, enabling the repurchase of $141.4 million in convertible debt early, while also providing meaningful working capital to support organic growth and pursue strategic M&A, such as our recent acquisition of Thrive Cannabis,” stated Miguel Martin, Chief Executive Officer of Aurora.

On March 31, 2022, Aurora had $480.6 million of cash, including $50.7 million in restricted cash, no secured term debt, and access to US$887.6 million of capital under its shelf prospectus, including an at-the-market (ATM) facility, of which currently US$187.6 million remains under the program.

“During Q3, we continued focusing on our global medical cannabis business because it is both defensive and stable, with cash gross margins that exceed 60%. We were pleased to have experienced considerable top-line growth in this segment year over year, and with new international markets poised to open, our track record and ability to navigate complex regulatory environments position us ideally for a significant revenue opportunity globally. In terms of the Canadian adult-use market, we continue to adjust to current conditions, are excited for future contributions from the Thrive team, and are committed to a continuous stream of innovation, including advancing our premiumization strategy,” he concluded.


Debra BorchardtMay 12, 2022
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6min5580

Glass House Brands Inc. (OTCQX: GLASF) (OTCQX: GHBWF) has announced it will buy three retail assets: two operating retail dispensaries and one retail dispensary slated to open in the third quarter of 2022. Glass House also said that with these acquisitions and its other moves, it could do over $200 million in revenue in the next year.

The retail dispensaries currently operate under the name Natural Healing Center (NHC), one of the pre-eminent retail dispensary chains in California, located in the Central Coast area.

“This acquisition will advance us further in our goal of becoming one of the largest retailers in the state; provide incremental outlets for flower sales as the SoCal facility comes online; and add further support to our CPG business, including PLUS, our recently acquired and leading cannabis edibles company based in California. It also represents an immediate opportunity to drive significant expansion in our gross margin profile. Glass House-branded products currently represent approximately 5% of NHC revenue, versus an average of about 25% in Glass House-owned or -operated stores,” said Kyle Kazan, Glass House Chairman and CEO.

“In addition, we anticipate that the soon-to-open Turlock dispensary, which is located just off Exit 215 of the heavily trafficked Highway 99, and near the entrance to a Costco, will be one of NHC’s highest-grossing locations. Notably, Turlock is also the home of California State University, Stanislaus. We do not believe the city governments in these three NHC locations will issue more licenses any time soon.”

Glass House said in a statement that the two operating retail dispensaries had revenue of $15.3 million from April 2021 through March 2022 with EBITDA margins above 20%. Glass House is acquiring the two operating retail dispensaries in Lemoore and Morro Bay for approximately $22.6 million, through a combination of approximately $5.7 million in cash and the remainder in Glass House equity shares.

The third retail dispensary, currently under construction and located in Turlock, California, is expected to open in Q3 2022. The company said it expects to complete the acquisition of the Turlock store upon its opening, with Glass House Brands owning 100% of the equity interests. Based on the current performance of NHC’s operating dispensaries and the market fundamentals in Turlock, Glass House believes the Turlock store can eventually achieve ‘steady state’ annual revenues of approximately $10 million with an EBITDA margin of roughly 20%.

Improved Outlook

Kazan said, “Glass House had $21.7 million in retail revenues from its three wholly-owned dispensaries in 2021. With the addition of NHC’s 3 dispensaries to our portfolio, plus The Pottery and our new Farmacy dispensaries in Isla VistaSanta Ynez and Eureka that are all slated to open in late Q3, we will have the potential to nearly triple our annual retail dispensary revenues to more than $60 million. The increased retail footprint will also provide a significant revenue opportunity for our CPG business including PLUS. Furthermore, we expect incremental Wholesale Biomass revenues from Phase I of the SoCal Facility to reach an annualized $50-75 million by early 2023. With our recent addition of PLUS’ $14m in annual revenues on top of that, Glass House now has the potential to reach an annual revenue run rate in excess of $200 million within the next 12 months, versus the company’s 2021 revenue of $69 million. This transaction is expected to be immediately accretive to Glass House on both a sales and EBITDA basis, with all of NHC’s open locations currently generating positive EBITDA.”


Debra BorchardtMay 12, 2022
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5min8490

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced its results for the first quarter ending March 31, 2022, with revenue increasing 64% year over year to $318.3 million from $193.8 million and 4% sequentially. This beat the Yahoo Finance average analyst estimates for revenues of $307 million. It was also a nice increase sequentially from the fourth quarter’s revenue of $305 million, especially at a time when many cannabis companies have seen sales in the first quarter of 2022 struggle to top the fourth.

Trulieve also delivered a net loss of $32 million, a sequential improvement of 55%, however, it was a big change from last year’s net income of $30 million for the same time period. The earnings per share were ($0.17) versus last year’s $0.24. This missed the average analyst estimates for earnings of $0.03.

The company also noted that it had an adjusted net income of $1.7 million, which excludes $17.2 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, $13.8 million in asset impairments associated with the closing of redundant cultivation facilities and a loss of $2.7 million due to the divestiture of a duplicative, non-operating location.

“Thanks to the efforts of all of our Trulieve employees, we’re off to a great start in 2022, with strong first-quarter results underpinned by topline growth and cash flow,” said Kim Rivers, Trulieve CEO. “We delivered another record quarter while making substantive progress on our plan to optimize assets while preparing for future growth and catalysts. In 2022 we expect our strong balance sheet, access to capital and financial discipline will uniquely position us to capitalize on market opportunities created by the macroeconomic factors impacting our industry.”

Operating expenses did shoot up 138% to $149 million

Financial Guidance

Trulieve is reiterating its 2022 guidance with expected revenue in the range of $1.3 billion to $1.4 billion and adjusted EBITDA in the range of $450 million to $500 million. Based on the company’s current forecasts, it expects to realize improved performance in the second half of 2022 relative to the first half of 2022.

The company is also sitting comfortably on a mountain of cash at the quarter end of $267 million, bolstered by $45.1 million in cash flow from operations and the closing of $75 million senior secured notes at 8% due October 2026.

Trulieve currently operates 165 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States.


Debra BorchardtMay 11, 2022
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4min4210

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its financial results for the first quarter ending March 31, 2022. Total revenue of $101.2 million decreased 0.8% quarter-over-quarter and increased 33.4% year-over-year. Ascend stock jumped over 5% in trading to close at $3.20.

Ascend also reported that it had a net loss of $27.8 million or a loss of $0.16 per basic and diluted common share during the quarter, compared to a net loss of $16.5 million in the fourth quarter of 2021. Ascend attributed the loss to operating costs and a one-time settlement charge related to the settlement of a stockholder dispute regarding one of the company’s convertible note purchase agreements.

“Q1 2022 was a transitionary quarter for Ascend as we made investments to launch the next phase of our growth story,” said Abner Kurtin CEO and Co-Founder. “While preparing for adult-use sales in New Jersey, we significantly increased our total canopy capacity and recently entered into the Pennsylvania market. The early days of adult-use sales in New Jersey indicate that the state will be a key growth driver for the remainder of 2022.”

In addition to reporting earnings, Ascend was also able to tell the market it had settled its lawsuit with MedMen over the purchase of its New York assets. The settlement is expected to close within 30 days.

Breaking down the revenue results, total retail revenue was $63.3 million for the first quarter of 2022, representing a 2.4% decline as compared to the prior quarter. Gross wholesale revenue increased to $37.9 million, a 2.1% sequential increase, driven by growth in intercompany wholesale sales. Net wholesale revenue decreased 7.8% sequentially to $21.8 million, primarily driven by pricing pressure in Illinois and Massachusetts.

After The Quarter Ended

After the quarter ended, Ascend completed an equity transaction to roll up all of the other existing members of Story of PA CR, LLC. The company said it will use the remainder of the year to build a cultivation facility and six dispensaries, with plans to commence operations in Pennsylvania in 2023.

Also after the quarter, Ascend was one of the first in the state of New Jersey to launch adult-use sales at its dispensary in Rochelle Park, marking the start of the highly anticipated adult-use market in the state. On the first day of recreational sales, the company had approximately 1,500 customers and average basket sizes of $135, further substantiating the promising market.


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