Daily Hit Archives - Green Market Report

StaffDecember 2, 2021
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7min3030

This is your Daily Hit of cannabis financial news for the week ending December 2, 2021.

On The Site

Delta-8

Despite the controversy over Delta-8, sales are beating some popular CBD companies. Hemp Benchmarks has been following the price of Delta-8 within the hemp industry and recently highlighted the company LFTD Partners (OTC: LSFP), whose sales rival many established CBD companies. Two weeks ago, the company reported its third-quarter revenue had risen 32% to $8.8 million and net income grew by 40% to $2.2 million. Savage reported that it had revenues of $20 million in the third quarter, but doesn’t look to have Delta-8 products in its portfolio. Still, the pro-forma of the combined companies puts it near a $30 million quarter. This year, a well-respected brand Plus Products essentially went bankrupt. While Charlotte’s Web (OTC: CWBHF) reported revenues of $23 million in the most recent third-quarter earnings report, this was down from 2020’s third-quarter revenue of $25 million. 

Green Wednesday

The numbers are in and it’s official—Green Wednesday 2021 was a big one for the cannabis industry, while Black Friday fizzled in comparison. Green Wednesday saw cannabis sales increase across the U.S. Black Friday did not have the sales growth seen in previous years, though some data (Flowhub) showed larger order values and bigger discounts than Green Wednesday. Data from market analytics and cannabis companies like Headset, LeafLink, Lantern, Glass House Brands, and others show common trends regarding most popular products and year-over-year sales numbers. Using this data, companies extrapolate some possible variables affecting this year’s numbers, including a decreased emphasis on Black Friday door-buster deals targeted towards packing stores with bargain-hungry shoppers, focusing instead on online sales spread out over the holiday season (Springbig).

Gift Guide

Green Wednesday, Black Friday, and Cyber Monday deals are over, but plenty of people are still shopping for the holidays. Jushi Holdings (OTC: JUSHF) just recently conducted a holiday poll surveying 1,000 cannabis consumers in legal states and confirmed what end-of-year revenue knows to be true: people love cannabis during the holidays. For different reasons, too. Some people use cannabis to unwind during stressful holiday times, others bring enough to share with the family. Medical consumers might bring cannabis along to make eating holiday food a little easier. The poll said 9/10 consumers plan on incorporating cannabis into their holiday and almost 76% of respondents said they plan to give cannabis-related gifts this year. If you’re in that almost-76%, we’ve compiled a list of some great cannabis gadgets, glass, and accessories to gift yourself or a friend this year, including a few great promotions. 

In Other News

Sunstream IVXX Investment Corp., an affiliate of SunStream Bancorp Inc., a joint venture sponsored by Sundial Growers Inc. (NASDAQ: SNDL), today announced that it has submitted a draft registration statement on a confidential basis to the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock. Sunstream IVXX will be a specialty finance company that operates as a closed-end, non-diversified management investment company that anticipates electing to be regulated as a business development company under the Investment Company Act of 1940. The number of shares of common stock to be sold and the price range for the proposed offering have not yet been determined. The purpose of the offering is to use the net proceeds therefrom to invest primarily in the debt of U.S. cannabis companies across the cannabis industry. Sunstream IVXX intends to commence the public offering in the first quarter of 2022.

Akerna (Nasdaq: KERN) shows that Green Wednesday (11/24) and Black Friday (11/26) were the second and third highest sales days for legal cannabis in the US this year, with Green Wednesday bringing in $98.2 million in sales and Black Friday bringing in another $99 million. The largest day for cannabis sales this year was 4/20, the unofficial cannabis consumption holiday.


StaffNovember 30, 2021
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10min4270

It’s time for your Daily Hit of cannabis financial news for November 30, 2021.

On The Site

Harborside

After the market closed on Monday, Harborside Inc.  (CSE: HBOR), (OTCQX: HBORF) announced it was buying California retailer UL Holdings Inc. also known as Urbn Leaf, and  LPF JV Corporation, better known as Loudpack. Loudpack is a manufacturer, cultivator and distributor of award-winning cannabis brands in California.  The newly combined company will be renamed StateHouse Holdings. The company said that it expects to trade the new company on the Canadian Securities Exchange under a new symbol (CSE: STHZ) and the deal is expected to close in the first half of 2022. Ed Schmults, the current CEO of Urbn Leaf, is expected to be appointed as CEO of StateHouse upon completion of the Urbn Leaf Transaction and will be joining the Board of Directors of StateHouse. 

In addition to announcing the big transaction, Harborside also delivered some sobering news to investors. The company said it was withdrawing its previous revenue guidance for 2021 and said it would revisit the forecast after the deal closes. A variety of reasons were given including a decline in wholesale pricing for bulk products in the California market and a decline in retail revenue which was primarily due to a decrease in retail store foot traffic.  

Harborside reported that total gross revenues were $17.9 million, 10.4% higher sequentially than the previous quarter. However, both retail and wholesale revenues fell sequentially and the difference was only made up through manufacturing revenues, which didn’t exist in the second quarter. The manufacturing revenues came as a result of the Sublime acquisition.

Red White & Bloom

Red White & Bloom Brands Inc. (OTCQX: RWBYF) delivered its third-quarter 2021 earnings with revenue increasing 93% to C$11.8 million versus last year’s C$6.1 million. The company reported a net loss of C$5.5 million down from last year’s net loss of C$9.5 million. RWB said that the change in net loss was primarily a result of the revaluation of its Call/Put options, as well as rightsizing compensation and achieving economies of scale. RWB though is still facing a huge debt problem that it warned investors about last quarter. The company said this time that it is in advanced discussions with a number of funds to restructure the current debt of $115 million due in 2022 into a more advantageous long-term debt solution. 

REIT

Chicago Atlantic Real Estate Finance, Inc. is a newly formed commercial real estate finance company or REIT. The current portfolio is mostly first mortgage loans to state-licensed operators in the cannabis industry. The company expects the IPO to be priced between $16.00 and $18.00 per share and could raise as much as $129 million. It has applied to list the common stock on the Nasdaq Global Market under the symbol “REFI”.

Horizons

This week, Horizons – Perspectives On Psychedelics the largest and longest-running psychedelic conference will take place in New York City. It is a five-day conference that includes credit coursework for professionals as well as sessions on medical research. The event has grown from its original one-day conference with the addition of classes and business talks. The initial three days are held at the prestigious New York Academy of Medicine.

In Other News

Cansortium

Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) announced financial results for the third quarter ended September 30, 2021. Revenue increased 9% to $15.6 million compared to $14.3 million. Florida revenue increased 4.3% to $13.1 million compared to $12.6 million. Adjusted gross profit1 increased to $9.8 million or 62.7% of revenue, compared to $9.5 million or 66.6% of revenue. Adjusted EBITDA increased 34% to $4.9 million or 31.4% of revenue, compared to $3.6 million or 25.5% of revenue. The company is revising its 2021 outlook for revenue and now expects it to range between $63-$66 million. The Company continues to expect adjusted EBITDA to range between $18-$26 million and anticipates achieving the lower end of the range. This compares to approximately $52 million of revenue and $10 million of adjusted EBITDA in 2020.

Headset

Headset, the leading provider of data and analytics to the cannabis industry, announced today that it has raised $3M of new capital led by Althea, a private equity investment firm. Other participating investors are Poseidon Investment Management, a leading investor in the legal cannabis and hemp industries and WGD Capital, L.P., a cannabis focused venture fund. As part of this financing, Headset also converted $5.6M of bridge notes previously issued in August 2020 and April 2021

TPCO

TPCO Holding Corp. announced its appointments of Tiffany McBride as Managing Director of Social Equity Ventures and Kerry Arnold as Chief People Officer. The two positions further The Parent Company’s mission to elevate diversity, equity and inclusion efforts within the cannabis sector.

Halo Collective

Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) announced that the Company’s stock symbol has reverted back to “HCANF” following the temporary 20-day post-consolidation trading period associated with the previously announced share consolidation. The Financial Industry Regulatory Authority Inc. (FINRA) temporarily appends the letter “D” to the root symbol of all OTC equity securities subject to a reverse split with a CUSIP change to alert investors that the security was recently subject to such a corporation action. The CUSIP number for Halo’s common stock is 40638K507.


StaffNovember 29, 2021
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7min4180

It’s time for your Daily Hit of cannabis financial news for November 29, 2021.

On The Site

Pre-rolls

A new report from Headset has found that Americans aren’t as into pre-rolls as Canadian consumers. Between August 2020 and August 2021, the market share of pre-rolls in Canada averaged 18.6%, while in the US, the market share of pre-rolls only averaged 9.5%. The only exception it seems is the Massachusetts market. Apparently, they really like pre-rolls in that state. When Americans want to buy pre-rolls, they typically choose the connoisseur/infused segment, which makes up 32.4% of sales. Canadians aren’t as picky and this same segment makes up only 0.1% of sales. Pricing is a possible reason for the large difference in Connoisseur/Infused market share between the two countries. In Canada, they are priced 57% higher than the average item price of the other segments, while in the US they are priced only 18% higher than the other segments.

Gage

Gage Growth Corp.  (CSE: GAGE) (OTCQX: GAEGF) reported its financial results for the third quarter ending September 30, 2021, with revenue rising to $27.2 million versus $26.4 million in the second quarter of 2021, a 3.2% increase. The net loss for the quarter was $3.7 million. Gage reported that the gross margin, before the impact of biological asset adjustments, was 36.5% in the third quarter versus 34.2% in the second quarter. The company said that the 230 basis point improvement quarter over quarter in gross margin to 36.5% was due to a greater mix of higher-margin sales from retail locations and cultivation capacity expansion via Gage-operated cultivation assets, contract growing partners, and lower input costs from dedicated wholesale partners.

Flora Growth

Flora Growth Corp. (NASDAQ: FLGC) has signed a licensing agreement with Tonino Lamborghini to produce and distribute Tonino Lamborghini branded CBD (cannabidiol) beverages across North America and Colombia under the company’s renowned luxury lifestyle brand. Mr. Tonino Lamborghini has been taking inspiration from his family heritage and his vast experience in mechanics and engineering to develop his homonymous lifestyle experience brand dedicated to luxury design products and real estate projects. The company said in a statement that the Tonino Lamborghini product line will be produced through Flora’s division and contain CBD and other premium cannabinoids such as cannabigerol (CBG). Under the licensing deal, Flora will retain the right of first refusal to produce and distribute any CBD or CBG products globally under the Tonino Lamborghini brand. The products will be produced in Florida initially for sale in US states where CBD ingestible are legal. Flora will be responsible for production and distribution and will target both ecommerce and brick-and-mortar channels.

In Other News

Novamind

 Novamind Inc. (CSE:NM)(OTCQB:NVMDF)reported its fiscal first-quarter results for the three months ended September 30, 2021, with total revenue of $1,857,750, +113% when compared to the same period last year. A debt-free balance sheet with $5,969,673 in cash and $2,018,971 in marketable securities and total working capital of $6,834,011 to fund operations. 

Red Light

Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) reported its financial results for the three months ended September 30, 2021 with revenues of $485,738 for the quarter resulting in a gross profit of $156,970, an increase of $61,240 (or 64.0%) over the previously reported quarter. The company has balance sheet strength including cash in the amount of $29.1 million. Hans Derix, Red Light Holland President said, “We have increased the number of stores that sell our iMicrodose psychedelic products from 25 to 39 (a 56% increase) in the Netherlands. This is a significant increase in market presence that was completed under the backdrop of retail pressure attributed to the continuing global pandemic. We have also developed and launched a newly branded Maka line of products. As a result of these efforts, we expect increased revenue related to psychedelic products and functional mushroom products in the coming quarters.”

Fire & Flower

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced that, in connection with the potential additional listing of the common shares on the Nasdaq, it has filed articles of amendment implementing a consolidation of the Shares on the basis of ten (10) pre-consolidation Shares for every one (1) post-consolidation shares. The Consolidation was previously approved by the Company’s shareholders at its annual and special meeting of shareholders held on June 9, 2021.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced the publication of its first Environmental, Social, and Governance (ESG) Report. The Report contains standard disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards, The Sustainability Accounting Standards Board (SASB) as well as the United Nations Sustainable Development Goals. The Report highlights ESG achievements to date and serves as a foundation for demonstrating how the Company’s ESG approach, strategies, and commitments are embedded within its core business.


Debra BorchardtNovember 24, 2021
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8min6100

It’s time for your Daily Hit of cannabis financial news for November 24, 2021.

On The Site

Slang

SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) released financial results for the third quarter ending September 30, 2021, with revenue rising to $10.1 million versus last year’s $7.9 million for the same time period. Slang said that the acquisition of High-Fidelity, Inc. resulted in approximately $1.1 million in revenue during the quarter. the net loss was trimmed slightly to $5.6 million versus last year’s net loss of $5.9 million. Slang’s new interim CEO Drew McManigle said, “With the significant support from our respected strategic and investor partners, I look forward to utilizing my extensive experience in repositioning corporate operations to assist in the transformation of the SLANG operating platform. This transformation will be based on a refined strategy to appropriately position the Company to achieve future sustainable revenue growth.” McManigle was handed the reins in a major shift of executive management at the company just a few weeks ago. The move saw the exodus of CEO Chris Driessen and numerous board members.

Seelos

Seelos Therapeutics, Inc. (Nasdaq: SEEL) is buying the worldwide license (excluding China, Taiwan, Macau and Hong Kong) from iX Biopharma Ltd (iX Biopharma) for Wafermine, a sublingual racemic ketamine wafer, and a worldwide license for other sublingual ketamine wafers, delivered using a proprietary fast-dissolving wafer-based drug delivery platform technology known as WaferiX. Seelos said it is paying roughly $9 million in cash and stocks. Seelos said it plans to evaluate the sublingual ketamine, now named SLS-003, in pain indications such as chronic neuropathic pain and Complex Regional Pain Syndrome (CRPS) and in additional psychiatric disorders, including post-traumatic stress disorder (PTSD). The company also said in a statement that the Food and Drug Administration (FDA) has granted Wafermine Orphan Drug designation for the treatment of CRPS.

2022

As we put 2021 in the rearview mirror, Green Market Report is looking ahead to a bright new year. We asked leaders in the industry for their predictions for the cannabis industry in 2022. Emily Paxhia, co-founder and managing director of Poseidon Investment Management said, “2022 is going to be the start of the longest bull market this industry will have seen to date. This industry has gone through multiple phases, as an emerging industry. The business case for cannabis is now being proven to be strong growth + EBITDA and there is a lot of upsides to unlock with new markets opening on the east coast.” She also believes 2022 is going to be the year that cannabis tech finally gets the attention it deserves. She thinks the market will see more capital invested into tech platforms. Paxhia added, “Further, we are excited to see more innovation in technology around the cultivation, processing, distribution, and retailing of cannabis, not to mention the technology around human capital, as this industry will continue to be a growing and large employer in the US. The cannabis market is finally getting the TAM (Total Addressable Market) recognition it deserves from outside investors.”

Thanksgiving

Cannabis has finally earned a seat at the table in America. According to a new survey, one in two Green Wednesday shoppers intend to gift cannabis products to a friend or family member this year, while 77% will consume cannabis with others on Thanksgiving. In fact, data suggests American cannabis consumers have become increasingly open about their cannabis habits, with 40% planning on consuming openly with family and friends this season, and 37% planning to incorporate cannabis into their annual Thanksgiving meal. One thing is clear: this Thanksgiving, cannabis is a family affair.

Green Wednesday

Green Wednesday continues to be one of the strongest retail days for cannabis dispensaries. In 2020, Springbig reported that Green Wednesday sales across 1,500 retailers, were up 79.43% from 2019. There are several theories as to why so many people flock to dispensaries before Thanksgiving to stock up. Here are a few:

  • Family gatherings can sometimes be very stressful and cannabis can help keep you calm. Uncle Joe insists on talking politics? No problem, just slip an edible in your mouth and you’re good to go. Aunt Sophie wants to know about your love life? Do divorced parents want to complain about each other? Are cousins bragging about their success? You name it – there can be many stressful moments and cannabis is there to help.
  • You’re headed back to your hometown and expect to see old friends. How awesome is it to roll into town and be the one to hand out mini prerolls, so COVID safe and still social? You may not want to go get drunk at a bar, but you can relieve the good times again as you party with your friends.
  • Have you ever had to go to two Thanksgiving meals in one day? The early eaters at one family and the late eaters at another? How do you stuff all that food into your mouth and be polite? You can’t say no to Grandma’s pies or she’ll be insulted. Ahhhh, this is when the munchies shine. This is their day! Bring on the munchies. You won’t even notice you’re miserably stuffed.

In Other News

Stem Holdings, Inc. d/b/a Driven by Stem (OTCQX: STMH) (CSE: STEM) announced that Salvatore Villanueva, III will depart as President of the Company effective December 19, 2021. The Company does not intend to replace Mr. Villanueva at this time


StaffNovember 23, 2021
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7min8310

It’s time for your Daily Hit of cannabis financial news for November 23, 2021.

On The Site

MedMen

MedMen Enterprises Inc.  (CSE: MMEN) (OTCQX: MMNFF) has won its case that was brought by former CFO James Parker. In 2019, Parker filed a lawsuit against MedMen, alleging wrongful termination, breach of contract, and retaliation, seeking in excess of $20 million in damages. The case was notable for its scandalous accusations including the creation of a toxic workplace and suggestions that the company paid a third party to buy the stock and push up share prices.

Organigram

Organigram Holdings Inc. (NASDAQ: OGI) reported its results for the fiscal fourth-quarter ending August 31, 2021, with revenue increasing 22% to $24.9 million, from $20.4 million in the same time period for 2020. Organigram said the increase was primarily due to an increase in adult-use recreational revenue, partly offset by the decrease in international revenue, medical revenue, wholesale revenue to other Licensed Producers, and a lower average net selling price. The stock was jumping over 10% in early trading on the results and was lately selling at $2.06. The company also reported a net loss of $26.0 million, which was an improvement over last year’s net loss of $38.6 million. the company said this was largely due to the higher gross margin in the quarter which was partially offset by the impairment charges during the current quarter. The quarter also reported that the negative adjusted EBITDA decreased 48% from $9.2 million in the third fiscal quarter to $4.8 million. This improvement was primarily attributed to the increase in revenues and the improved adjusted gross margin.

Audacious

Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) also known as Audacious, has delivered its financials and management discussion and analysis for its fiscal second quarter of fiscal 2022 (the year ending March 31, 2022), the period ending September 30, 2021. Australis reported total revenues increased 2,068% year over year to $2.3 million and increased 31% from $1.73 million in the first fiscal quarter of 2021. The company reported a net loss of $(4.32) million, or $(0.02) per share, compared to a net loss of $(5.82) million, or $(0.03) per share, in the second quarter of 2021, and a net loss of $(9.67) million, or $(0.04) per share in the first quarter of 2022. The prior year’s net loss was higher due to settlement costs and the net loss for the first fiscal quarter of 2022 was higher due to a decline in investment values.

Cybin

Psychedelic therapy company Cybin Inc. (NEO:CYBN) (NYSE: CYBN) has been awarded a grant for the first psychedelic treatment clinic at Lenox Hill Hospital, part of Northwell Health, to serve marginalized and underserved communities on the Upper East Side of Manhattan, New York.  The program has hopes to become one of the first hospital-based clinical sites to offer psychedelic medicine in the United States.

In Other News

Planet 13

Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) announced its financial results for the quarter ending September 30, 2021. Revenues were $33.0 million as compared to $22.8 million, an increase of 45%. The net loss before taxes of $4.6 million as compared to a net profit of $3.4 million. Larry Scheffler, Co-CEO of Planet 13 said,  “Along with our dispensary operations, our product brands are performing well with Trendi vapes seeing 110% dollar sales growth year over year according to Headset. It now makes up about ~5% of Vape sales and 7% of Concentrate sales and HaHa edibles was ~14% of edibles sales in the State.”

“Along with stellar performance from our Nevada operations, this was a massive quarter towards securing the future growth of Planet 13. We opened our California store, and while initial sales growth has been slower due to headwinds from COVID and untimely road construction around the SuperStore, customer reviews have been outstanding. We expect growth as those headwinds abate,” commented Bob Groesbeck, Co-CEO of Planet 13. “We also won a dispensary license for the Chicago area giving us a clear path for our next SuperStore, and acquired a Florida license that will allow us to vertically integrate and open multiple neighborhood and SuperStores in the state.”


StaffNovember 22, 2021
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6min5680

It’s time for your Daily Hit of cannabis financial news for November 22, 2021. 

On The Site

Ayr Wellness

Ayr Wellness Inc. (OTCQX: AYRWF) is reporting financial results for the third quarter ending September 30, 2021 with revenue rising 111% to $96.2 million, which was a sequential increase of 5%. Ayr Wellness also reported a net loss of $3.3 million, which was a bit higher than last year’s net income of $620,373. The earnings per share were ($0.06), which beat the Yahoo Finance Average Analyst estimate for earnings of ($0.15). Ayr Wellness delivered a US GAAP operating loss of $8.9 million which included non-cash, one-time expenses, and non-operating adjustments totaling $34.9 million.

Ayr Wellness is also revising its 2022 adjusted EBITDA guidance to a range of $250-300 million, which the company said reflected delays in capital projects. The company is also feeling the pain of a volatile wholesale market and said that if these issues continue into 2022, it could also impact planned guidance.  The company is reiterating its target for 2022 revenue of $800 million. 

Khiron

Khiron Life Sciences Corp. (OTCQX: KHRNF) reported its financial results for the quarter ending September 30, 2021 with total revenue of C$3.5 million growing over last year’s revenue of C$1.9 million for the same time period. Khiron also delivered a 50% year-over-year reduction in a net loss of –$3.3 million versus –$6.7 million for the same quarter in 2020.

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) has appointed Michael Serruya as Chairman and Interim CEO, effective immediately. Serruya succeeds outgoing Chairman and CEO Tom Lynch, who held the position since 2020 and oversaw the company’s operational turnaround. Lynch was only just recently named as a permanent CEO in July.

High Tide

High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) announced it was buying 80% of NuLeaf Naturals, LLC for $31.24 million and will have a three-year option to acquire the remaining 20% of NuLeaf at any time. The total company is valued at $39 million. High Tide said that NuLeaf would be highly accretive noting that NuLeaf generated gross margins of 71% and Adjusted EBITDA1 margins of 25% during the 12 months ended September 30, 2021.

In Other News

Gage

Gage Growth Corp. announced it has closed on a senior secured term loan for aggregate gross proceeds of $55 million. Gage intends to use the proceeds (i) to finance the Company’s retail acquisition strategy in Michigan, (ii) to support the Company’s future growth, and (iii) for general working capital purposes. All retail acquisitions are expected to be accretive to Gage and TerrAscend Corp. upon and subject to the completion of its proposed acquisition of Gage.

Numimus

Numinus Wellness Inc. (TSXV: NUMI), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies announced that its ticker symbol on the OTC Pink market in the United States will change to “NUMIF” (previously “LKYSF”) when the market opens on Monday, November 22, 2021.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced the launch of Bhang edibles in Florida. Bhang’s globally-recognized, award-winning gourmet chocolates are now available exclusively at Trulieve’s 108 Florida dispensaries. “Since launching in Massachusetts in October, Bhang sales and orders through Trulieve have far exceeded our expectations, and we are excited to keep the momentum going in Florida, where we know the demand for our products is already high,” says Jamie L. Pearson, President and CEO of Bhang. “We are currently working on rolling out new SKUs with the Trulieve team in 2022 and look forward to bringing Bhang’s amazing cannabis-infused products to Trulieve customers throughout the U.S.”


StaffNovember 18, 2021
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6min4910

It’s time for your Daily Hit of cannabis financial news for November 18, 2021.

On The Site

Riv Capital

RIV Capital Inc. (TSX: RIV) (OTC: CNPOF) released its unaudited condensed interim consolidated financial statements for the quarter ending September 30, 2021, with a business update that mostly focused on The Hawthorne Collective. In August, a newly-formed cannabis-focused subsidiary of Scotts Miracle-Gro (NYSE: SMG), invested $150 million in RIV Capital through an unsecured convertible note.

With regards to actual financials, Riv Capital reported an operating loss of $1.7 million for the quarter, net of a provision for expected credit losses of $2.1 million. The loss per share was ($0.01). This primarily consisted of royalty and interest income (before provisions for expected credit losses) generated from the Company’s royalty and debenture agreements with Agripharm Corp., 10831425 Canada Ltd. d/b/a/ Greenhouse Juice Company, and NOYA Cannabis Inc., offset by a provision for expected credit losses on the company’s royalty receivables.

MedMen

It looks as if the MedMen Enterprises Inc. (OTC: MMNFF)  trial is coming to a close. According to Law360, the lawyers for the company’s former Chief Financial Officer James Parker attorney gave his closing arguments on Tuesday. Parker claims he is owed up to $24.89 million due to his employment contract, while MedMen believes the contract isn’t enforceable because Parker negotiated it himself.

Law360 reported that Michael J. Kump of Kinsella Weitzman Iser Kump Holley LLP, who represents Parker suggested the amount could be even higher if the jury decides to award him damages for emotional distress, damage to reputation, and punitive damages on claims that include promissory fraud, retaliation and wrongful discharge in violation of public policy. However, it was noted that the amount could fall down to $16.4 million if the jury chooses a blended average of the stock price in May and June 2018.

In Other News

Delic Holdings Corp  (CSE: DELC) (OTCQB: DELCF) introduced its Family Support & Education program at Ketamine Wellness Centers (KWC), the largest chain of wellness centers providing ketamine treatments in the U.S. KWC was recently acquired by Delic and operates 10 ketamine infusion treatment clinics across eight states that have delivered more than 60,000 treatments to date across Arizona, Colorado, Florida, Illinois, Minnesota, Nevada, Texas and Washington.

Pelorus Equity Group announced the appointment of Lee Scholtz as the director — head of Asset Management of the Pelorus Fund, a privately held mortgage real estate investment trust (“mREIT”) for cannabis-related properties. In his new role, Scholtz will work directly with Dan Leimel, CEO of Pelorus Equity Group and managing director of Pelorus Fund, and be responsible for managing the Pelorus Fund’s assets according to the Company’s investment goals and objectives.


StaffNovember 17, 2021
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7min6110

It’s time for your Daily Hit of cannabis financial news for November 17, 2021.

On The Site

Jushi

Jushi Holdings Inc.  (CSE: JUSH) (OTCQX: JUSHF) announced its financial results for the third quarter ending September 30, 2021 with total revenue rising 13.1 sequentially to $54.0 million, and an increase of 116.7% over last year. Yahoo Finance’s average analyst estimate was for revenues of $57 million causing Jushi to miss the estimates. The company also revised its guidance downward. Jushi reported a net income of $38.2 million, an increase of $33.5 million sequentially, and $68.2 million year-over-year.  The earnings were $0.22 per basic share and a net loss of $0.08 per diluted share, compared to net income of $4.8 million, or $0.03 per basic share and a net loss of $0.08 per diluted share in the second quarter.  The estimate was for earnings of $(0.02). The adjusted EBITDA of $6.4 million was an increase of 38.5% sequentially and 124.9% year-over-year.

4Front

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) announced its financial results for the third quarter ended September 30, 2021 with total revenues of $25.9 million, topping last year’s $12 million for the same time period for a gain of 70%. However, the company experienced a 4% sequential drop in sales from the second quarter. The company blamed the decline in sales to permitting delays during the local review process for both the Commerce, CA facility and Brookline, MA dispensary. The revenue was also short of the Yahoo Finance average analyst estimate for revenue of $27 million. The net loss for the quarter was $4.5 million, which was slightly higher than last year’s $4 million. 

Mycotopia

Mycotopia Therapies Inc. (OTC Pink: TPIA) has entered into an agreement to form a 50/50 joint venture with Agile Pharmaceutical Solutions to develop novel oral dosage forms of psilocybin in the form of a psychedelic sublingual tablet. Mycotopia said that the two companies plan to get a Health Canada License for psychedelics to obtain and test psychedelic raw material, for the purpose of creating the psilocybin-based, sublingual tablet to take to market.

MedMen

The ongoing trial of MedMen (OTC: MMNFF)  ex-CFO James Parker is beginning to hear the other side of the story. So far the trial has delivered Parker’s version of events. He claims that the founders were spending corporate money as if it was their own and creating a toxic work environment. He also alleges that MedMen paid outsiders to buy the company’s stock in an effort to move the share prices higher. This week former president and co-founder Andrew Modlin took the stand. MedMen’spostion has always been that Parker breached his employment contract, not that he had been unfairly terminated. According to Law360, Modlin testified that although he was increasingly concerned about the performance of then-CFO James Parker in the months after the company debuted on the Canadian Securities Exchange in 2018, he neither fired nor demoted him. Parker claims that the MedMen executives were preparing to fire him because he believed an executive search firm had been hired behind his back.

In Other News

Novamind Inc. (CSE:NM)(OTCQB:NVMDF) announced that it has signed a Letter of Intent to acquire Foundations for Change, an Arizona-based company with two outpatient mental health clinics specialized in ketamine-assisted psychotherapy. The Arizona Acquisition represents Novamind’s first clinics outside the state of Utah, and the first announcement from a pipeline of accretive transactions that will expand the Company’s network of clinics in the U.S. and globally.

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced the pending release of the last contractual trading restrictions remaining on 35% of the shares it issued in its reverse takeover transaction completed on February 11, 2021. As a result, none of the company’s shares issued in the RTO will be subject to these trading restrictions, and all of the Company’s subordinate voting shares issued in the RTO will be eligible to trade on the Canadian Securities Exchange and the OTCQX market, subject to applicable securities laws and stock exchange rules.


StaffNovember 16, 2021
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6min5730

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

On The Site

Verano

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its results for the third quarter ended September 30, 2021, with revenues of $207 million, which increased over the second quarter’s revenue of $199 million. Unfortunately, this missed the average analyst estimates by Yahoo Finance for revenue of $299 million. Still, this was almost double over last year’s $101 million for the same time period. The revenues are calculated on a pro forma, consolidated basis accounting for the AltMed acquisition as if completed on January 1, 2021. The average estimate for earnings was $0.24, which Verano easily beat by reporting earnings of $0.33 per share.

TerrAscend

TerrAscend Corp.  (CSE: TER) (OTCQX: TRSSF) reported its financial results for the third quarter ending September 30, 2021, with revenues dropping by 16% sequentially to $49.1 million from the second quarter’s $58.7 million. However, it was better than 2020’s third-quarter revenue of $38.1 million. TerrAscend blamed the drop in revenue on temporary yield declines in Pennsylvania related to ongoing construction and expansion efforts. On a positive note, the net income for the third quarter was $62 million versus the second quarter’s net loss of $23 million. This was largely impacted by a non-cash gain on the fair value of warrants of $69 million. The earnings per share on a diluted basis were $0.28 and on a basic basis were $0.33, easily beating the Yahoo Finance average analyst estimate for ($0.01).

Slang

SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) announced the departure of several top executives and a new financing deal with Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) along with two existing significant shareholders, Pura Vida Investments and Seventh Avenue Investments for $17.3 million. Slang’s CEO Chris Driessen has resigned and Drew McManigle has been appointed interim CEO and Chairman. McManigle also succeeds Peter Miller as Chairman of the Board and while Miller remains a director of the Company. In addition to those changes, Driessen, Chris Donnelly, Kelly Ehler, Keith Stein, and Robert Verdun have all resigned from the Board, effective immediate. Slang also decided to reduce its Oregon operations and will consolidate production to its Colorado facility. Thus, Slang is pivoting its strategic agenda and focusing on its core markets of Colorado and Vermont.

WeedMaps

This week Weedmaps (NASDAQ: MAPS) releases “Cannabis in America”, a first-of-its-kind data and insights report on the cannabis marketplace, industry trends, and cultural revelations. This report represents a major step forward in Weedmaps’ intention to become an essential resource of direct-from-consumer data for policy makers, business owners, and investors. The report highlights topics such as the impacts of the Coronavirus pandemic and social justice movement on the cannabis industry as well as a strong trend of cannabis category experimentation, among other topics. The report also highlights the continuing trend of legalization across the country and a corresponding market growth that shows no signs of slowing down. 

In Other News

 

Schwazze, (OTCQX: SHWZ) announced that it has signed definitive documents to acquire MCG, LLC. Emerald Fields owns and operates two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colorado. This acquisition is part of the Company’s continuing retail expansion plan in Colorado bringing the total number of dispensaries including announced acquisitions to 22. Total consideration for the acquisition will be $29 million and will be paid as 60% cash and 40% Schwazze common stock upon closing.


Kaitlin DomangueNovember 15, 2021
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8min8000

It’s time for your Daily Hit of cannabis financial news for November 15th, 2021.

On the Site 

Trulieve Delivers Strong Quarter, Admits Accounting Weakness

Trulieve Cannabis Corp.  (CSE: TRUL) (OTCQX: TCNNF) announced its results for the quarter ended September 30, 2021, as revenue increased 64% year-over-year to $224.1 million, beating estimates by $2 million.

Trulieve also disclosed in its 10Q that the management team identified errors in the accounting for leases and asset acquisitions, “identifying the root cause due to the control environment component of internal control as the company did not maintain a sufficient complement of personnel with the appropriate level of knowledge, experience, and training in certain areas important to financial reporting.”

 

Auxly Reports Rising Revenue, Trims Losses

Auxly Cannabis Group Inc. (OTCQX: CBWTF) released its financial results for the third quarter ending September 30, 2021 with revenues increasing 95% to C$24.5 million for the three months ended September 30, 2021. This was a 17% increase for Auxly over the second quarter. Still, the company reported a net loss of C$13 million in the quarter.

 

MediPharm Labs Reports Revenue, New CEO 

MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) announced its financial results for the quarter ending September 30, 2021 and said it has a new CEO as the company focuses on international business. Bryan Howcroft is the new CEO for MediPharm who plans to drive international and pharmaceutical sales growth.

 

CV Sciences Reports Drop in Revenues

CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the quarter ended September 30, 2021, with revenue falling 8% to $5.1 million for the third quarter of 2021 versus $5.6 million for the third quarter of 2020. CV Sciences said that sales were hurt by increased market competition, which was largely due to the uncertain regulatory environment for CBD.

 

Industry Heavyweights Weigh in On SRA

Cannabis industry leaders, including Kim Rivers of Trulieve and Joe Bayern of Curaleaf, have given their thoughts on the States Reform Act. The bill would formally legalize and tax cannabis at the federal level. 

 

Mike Tyson Says Psychedelics Have Made Him a Changed Man 

Green Market Report recently attended the Wonderland Psychedelic Business Conference in Miami Florida, where we had the opportunity to talk to former professional boxer Mike Tyson. Tyson says psychedelics have turned him into a different person and he’s a changed man – for the better. Tyson is currently the Chief Brand Officer at Tyson 2.0, his expanded cannabis company that was born out of Tyson Ranch.

 

The Parent Company Takes $570 Million Charge As Sales Fall

TPCO Holding Corp. also known as The Parent Company (NEO: GRAM.U) (OTCQX: GRAMF) announced its financial numbers for the third quarter ending September 30, 2021, with an eye-popping charge of $570 million. The Parent Company’s revenue for the quarter was $39.7 million and the adjusted EBITDA loss for Q3 2021 was $16.2 million.

 

Tilt’s Revenue Rises, Reaffirmed Guidance of $205-$210 Million For 2021

TILT Holdings Inc. (NEO:TILT) (OTCQX: TLLTF) reported its financial results for the three months ending September 30, 2021 with revenue increasing 37% to $53.4 million driven by growth in both cannabis and inhalation and accessory revenue. 

 

Greenlane’s Turnaround Gains Steam As Revenues Rise

Greenlane Holdings, Inc. (Nasdaq:GNLN) reported financial results for the third quarter ended September 30, 2021, as total revenue increased 16% to $41.3 million versus last year’s $35.8 million. Net losses at Greenlane increased 108% to $$28.7 million versus last year’s net loss of $13.7 million.

In Other News

Village Farms International Buys a Majority Stake in ROSE LifeScience 

Canada-based cannabis company, Village Farms, purchased 70% ownership of ROSE LifeScience, a Quebec-based cannabis producer and distributor. The total transaction price was up to $46.7 million Canadian dollars. 

“We have long admired the success of Village Farms and Pure Sunfarms in the Canadian cannabis industry. We are proud to join forces with them to accelerate our successes, and seize this opportunity to further evolve the industry in our home province of Québec,” said Davide Zaffino, co-founder and President and Chief Executive Officer, ROSE. “We cherish our Québec roots, and deeply believe in our province’s culture and values. As always, we remain committed to ensuring that Québec benefits from the responsible production, sale and consumption of cannabis. As part of the outstanding family of cannabis businesses within Village Farms, we are even better positioned to continue playing this leading role in the Québec landscape.”

 

Republicans File States Reform Act

Republican lawmakers filed a bill today that would federally legalize and tax cannabis, the States Reform Act. Rep. Nancy Mae (R-SC) is sponsoring the bill. “This bill supports veterans, law enforcement, farmers, businesses, those with serious illnesses, and it is good for criminal justice reform. The States Reform Act takes special care to keep Americans and their children safe while ending federal interference with state cannabis laws,” said Mace. 

The Green Market Report highlighted industry leader’s thoughts on the States Reform Act here


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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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