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.