Daily Hit Archives - Page 2 of 57 - Green Market Report

StaffMay 24, 2021
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5min5670

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

On The Site

4Front

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) released its financial results for the first quarter ended March 31, 2021 with total revenues coming in at $22.9 million versus last year’s $12.6 million for the same time period. Net losses increased from $7.7 million in 2020 to $11 million for the first quarter of 2021. 4Front also reiterated its fiscal year guidance for Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million.

The company noted that pro forma revenue increased 26% to $31.4 million in the first quarter versus $25.0 million in the fourth quarter. 4Front said that retail sales and product adoption exceeded internal expectations. This increase was attributed to higher sales from the two Massachusetts dispensaries following the start of adult-use sales in the second half of 2020, and a very strong launch from the Calumet City dispensary that opened in December 2020.

Enveric

Patient-first biotech company Enveric Biosciences (NASDAQ: ENVB) is buying MagicMed Industries Inc., a privately-held biotechnology company focused on creating a library of novel derivative psychedelic molecules such as psilocybin, N,N-dimethyltryptamine (DMT) and other molecular derivatives with applications across multiple indications, in an all-stock transaction. The deal has an approximate value of $30 million. 

Shareholders of MagicMed will receive 9,946,969 shares of common stock of Enveric, which recently closed at $2.72. Plus, warrants, options, and restricted stock units to acquire an additional 9,039,882 shares of common stock of Enveric. The current Enveric shareholders will own approximately 63.4% of the combined company’s common stock. Additionally, Enveric will receive approximately C$4 million in cash from the MagicMed Treasury. Dr. Joseph Tucker will be appointed Chief Executive Officer and David Johnson, the current Chief Executive Officer, and Chairman will be appointed Executive Chairman.

In Other News

Aurora

Aurora Cannabis Inc. (NASDAQ: ACB)announced that it has completed the transfer of its stock exchange listing to The Nasdaq Global Select Market from the New York Stock Exchange after the market close today. The company’s common stock will begin trading as a Nasdaq-listed security at market open on May 25, 2021 and will continue to be listed under the ticker symbol “ACB.” This transition does not impact the Company’s primary listing on the Toronto Stock Exchange (TSX: ACB). Aurora shareholders DO NOT need to take any further action.

TILT

TILT Holdings (TLLTF) announces the expansion of its partnership with Airo Brands, Airo is one of Jupiter Research’s earliest customers, licensing exclusive Jupiter products since 2016 and collaborating on proprietary inhalation technologies.Through this broader partnership with TILT and its subsidiary Standard Farms PA, Airo will look to enter the Pennsylvania market by early summer.Jupiter will continue to provide its proprietary hardware for Airo’s AiroPro and AiroX devices, as well as AiroPod cartridges, while Standard Farms will produce and fill high-quality cannabis oil for Airo’s AiroPod cartridges to be sold at retailers across Pennsylvania, pending regulatory product approval.The partnership will help meet the state’s demand for quality vape products, which is the second-largest product category in the state with 35% market share.


StaffMay 19, 2021
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5min7270

It’s time for your Daily Hit of cannabis financial news for May 19, 2021.

On The Site

TerrAscend

TerrAscend Corp.  (CSE: TER) (OTCQX: TRSSF) reported financial results for its first quarter ending March 31, 2021 with sales increasing 106% year-over-year to $53.4 million versus last years $25.9 million for the same time period. TerrAscend attributed the increase to cultivation capacity expansions in Pennsylvania, New Jersey, and California as well as five new dispensaries opened during 2020. Sales jumped 8% sequentially as a result of capacity expansion in Pennsylvania and the initial ramp-up of the operations in New Jersey. This slightly missed consensus estimates according to Seeking Alpha which was $54.4 million.

Net losses were cut significantly in the first quarter to $12.7 million from last year’s net loss of $87 million or the same time period. The company said that the net losses were largely impacted by a loss on the fair value of warrants of $5 million and an unrealized foreign exchange loss of $3 million, along with income tax expense of $10 million, financing, and other expenses of $7 million, share-based compensation of $4 million and depreciation and amortization, inclusive of depreciation and amortization in cost of goods sold, of $4 million. The net loss per share increased to ($0.08) from last year’s ($0.07).

In Other News

Golden Leaf

Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) operating as Chalice Brands announced the signing of a definitive agreement and concurrent closing of the purchase of 100% ownership in SMS Ventures, LLC, dba Homegrown Oregon, a chain of five retail dispensaries located in Portland, Salem, and Albany, Oregon, for total consideration of approximately $9.75 million or 0.9 times Homegrown’s first quarter 2021 annualized revenue2. The added fact that Homegrown is profitable makes this a highly accretive acquisition for Golden Leaf earnings per share.

High Tide

High Tide Inc. (TSXV: HITI) (OTCQB: HITIF) has entered into an amended agreement with ATB Capital Markets Inc. (“ATB”) and Echelon Wealth Partners Inc., on behalf of a syndicate of underwriters, to increase the size of the previously announced bought deal public offering. The Underwriters have agreed to purchase, on a bought deal basis, pursuant to the filing of a prospectus supplement to the Company’s short form base shelf prospectus dated April 22, 2021 an aggregate of 2,100,000 units at a price of $9.60 per Unit for aggregate gross proceeds to the Company of $20,160,000

IIPR
Innovative Industrial Properties, Inc. (NYSE: IIPR) announced today that its operating partnership, IIP Operating Partnership, LP priced a private offering of $300 million aggregate principal amount of 5.50% Senior Notes due 2026. The notes mature on May 25, 2026. Interest on the notes is payable semiannually on May 15 and November 15 of each year, with the first payment on November 15, 2021. The offering is expected to close on May 25, 2021

Union

Workers at three local cannabis dispensaries have voted to unionize, the first time that has happened at any cannabis business in the region. Labor union leaders and the owners of the affected dispensaries said the contracts ratified Wednesday will set a precedent for future cannabis union contracts across the region. Local 135 of the United Food and Commercial Workers spent two years trying to organize the workers and get a contract approved. More than 140 workers spread across the three dispensaries approved the new contract at a rate of almost 90 percent. The contract, which guarantees wages of at least $17 an hour, includes profit-sharing and a $30,000 annual contribution from March and Ash to cover workers’ childcare and education. March and Ash employees had already been eligible for health care through the company.

 


StaffMay 17, 2021
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7min5220

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

On The Site

Col-Care

Columbia Care Inc.  (OTCQX: CCHWF) reported financial and operating results for the first quarter ended March 31, 2021, with revenue increasing 220% to $92.5 million year-over-year and growing by 13% over the previous quarter. Columbia Care missed the Yahoo Finance average analyst estimate for revenue of $94.1 million.

The net losses were trimmed to $15.3 million from last year’s $20.6 million for the same time period. The earnings per share also improved to ($0.05) from last year’s ($0.09.), however, it wasn’t enough to meet the average analyst estimate for ($0.04) per share. Analysts give the stock a price target of $11.65 on average. Shares have been in an overall uptrend over the past six months and were lately selling at $6.17.

Curaleaf

Curaleaf Holdings, Inc. (OTCQX: CURLF) is buying the largest outdoor grow in Colorado known as Los Sueños Farms in a deal valued at $67 million. The transaction is a mix of cash and stock. Curaleaf said this will significantly expand its Colorado presence, vertically integrating within the state. The proposed acquisition includes three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity, including land, equipment, and licensed operating entities, 1,800 plant indoor grow and two retail cannabis dispensary locations serving adult-use customers. An additional contingent consideration of up to $8 million in stock will be paid based upon operating cash flow-based targets for 2022.

Hexo

HEXO Corp. (NYSE: HEXO) announced it is buying 48North Cannabis Corp  (TSX-V: NRTH) in an all-stock deal valued at approximately $50 million on an enterprise value basis. 48North is a brand-led, consumer-centric licensed cannabis producer with an expansive portfolio of high-quality, accessibly-priced products available across the country. The company brands include Trail Mix, an accessibly priced brand formulated with taste and aroma-first flavor profiles and Latitude, a next-generation lifestyle platform and premium, natural cannabis collection focused on wellness, beauty, and beyond. 48North operates two indoor-licensed cannabis production sites in Ontario.

In Other News

MediPharm

MediPharm Labs Corp. (OTCQX: MEDIF) announced its financial results for the three months ended March 31, 2021. In total, revenue was $5.5 million, a 9% decrease from Q4 2020, but with a stronger mix of revenue international which offset a decrease to Canadian domestic revenue.  Net loss of $0.07 per share also compares favorably with the past two quarters (Q4 2020 net loss of $0.21 per share, Q3 2020 net loss $0.11 per share) reflecting the absence of inventory adjustments, fixed asset impairments and restructuring expense, as well as tighter expense controls.

IIPR

Innovative Industrial Properties (NYSE: IIPR) has announced that its operating partnership, IIP Operating Partnership, has commenced a private placement of $200M aggregate principal amount of senior notes due 2026. The Operating Partnership also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $30M aggregate principal amount of the notes. Net proceeds will be used to invest in specialized industrial real estate assets that support the regulated cannabis industry that are consistent with its investment strategy, and for general corporate purposes. 

IIPR also closed on the acquisition of a property in Warren, Michigan, comprising approximately 85,000 square feet of industrial space. The purchase price for the property was approximately $10.3 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at the property with a subsidiary of Sozo Companies, Inc. (Sozo) for continued use as regulated cannabis cultivation, processing and retail facility. 

MedMen

MedMen Enterprises (MMNFF) closed the sale of $10M of units at $0.32/unit; each unit consists of one Class B subordinate voting share and one share purchase warrant. Warrant holder to purchase one share for three years from the issuance date at an exercise price of $0.352/share. “As we accelerate construction for new store openings in our Fenway and two San Francisco locations we are repositioning our narrative from one of turnaround to one of growth,” chairman & CEO Tom Lynch commented. Fenway location is expected to open in late summer or early fall 2021 and its two San Francisco, CA locations in fall 2021.

Mercer Park

Mercer Park Brand Acquisition Corp. (OTCQX: MRCQF), a Special Purpose Acquisition Company  which has entered into a definitive agreement to merge with GH Group, Inc. , California’s leading fully-integrated cannabis business, announced today that it has upsized its previously announced equity private placement to include a US$50 million proposed investment commitment from TPCO Holdings Corp. Including The Parent Company investment, Mercer Park has raised $135 million of private placement capital in connection with the transaction. The commitment is subject to customary approvals and conditions and is expected to close contemporaneously with the closing of the Glass House Group Transaction.


StaffMay 12, 2021
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5min7330

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

On The Site

GTI

Green Thumb Industries Inc.  (OTCQX: GTBIF) continues to show its strength as an industry leader after reporting solid financial results for the first quarter ended March 31, 2021. GTI delivered total revenue of $194.4 million, up 9.7% sequentially and up 89.5% from $102.6 million in the prior-year period. this beat the Yahoo Finance average analyst estimate for revenue of $187 million. The company also delivered a net income of $10.4 million or $0.05 per basic and diluted share, compared to a net loss of $4.2 million, or a loss of $0.02 per basic and diluted share in the prior year. This was lower than the Yahoo Finance analyst estimates for $0.08 per share.

GrowGen

GrowGeneration Corp. (NASDAQ: GRWG) reported record first-quarter 2021 revenues rose 173% to $90 million, versus $33 million in the same period last year. This beat the analyst estimate for revenues of $87 million. GrowGen said same-store sales at 22 locations open for the same period in 2020 and 2021 were $43.0 million in first-quarter 2021 versus $28.5 million for first quarter 2020, a 51% increase year over year. Net income was $6.1 million, or $0.10 per share based on a fully diluted weighted average share count of 60.3 million. This beat the Yahoo Finance analyst estimate for $0.07.

Zynerba

Zynerba Pharmaceuticals, Inc. (Nasdaq: ZYNE) reported financial results for the first quarter ended March 31, 2021. As an emerging biotech company, Zynerba does not have revenue at this time as it develops drugs. Research and development expenses were $4.6 million for the first quarter of 2021, including stock-based compensation of $0.6 million. General and administrative expenses were $3.3 million in the first quarter of 2021, including stock-based compensation expense of $0.6 million. The net loss for the first quarter of 2021 was $8.0 million with a basic and diluted loss per share of $(0.20). Zynerba beat the Estimize EPS Consensus by $0.01 by reporting a net loss per share of ($0.20).

Col-Care

Columbia Care Inc. (OTCQX: CCHWF) launched its new retail brand, Cannabist. The company said that Cannabist will serve as the intersection for medical and recreational cannabis users to provide a higher experience built on one of the largest customer data repositories, passion, technology innovation, community commitment and product standards.

In Other News

cbdMD, Inc. (NYSE: YCBD) announced its financial results and its business highlights for its second quarter and six months ended March 31, 2021. Net sales of $11.8 million for the second quarter of fiscal 2021 increased by 26% year-over-year from $9.4 million in the second quarter of fiscal 2020 for a record high for the March quarter. Net loss attributable to common shareholders for the second quarter of fiscal 2021 was approximately $13.1 million, or ($0.24) per share, as compared to net income of approximately $14.8 million, or $0.41 per share from the prior year’s second fiscal quarter. Our net loss attributable to common shareholders was principally attributable to an increase of approximately $8.9 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).


StaffMay 11, 2021
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7min10260

It’s time for your Daily Hit of cannabis financial news for May 11, 2021.

On The Site

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) reported financial results for the first quarter ended March 31, 2021, as revenue increased 9.1% to $23.4 million. This missed the average analyst estimate for $27 million from Yahoo Finance. Charlotte’s Web said DTC eCommerce net sales increased 14.5% reflecting increased marketing, targeted promotions as well as incremental demand for the company’s new topical and THC-free ingestible products. The net losses increased to $13.9 million over last year’s $11.5 million for the same time period. The net loss per share was $0.10, which was also higher than the average analyst estimate for an net loss per share of ($0.05).

MedMen

MedMen Enterprises Inc. (OTCQX: MMNFF) reported its consolidated financial results for the third-quarter fiscal 2021 ending March 27, 2021. Net revenue across MedMen’s operations was $32 million, which dropped from last year’s $44.1 million. This also missed the average analyst estimates by Yahoo Finance for revenue of $37.3 million. The earnings per share for the quarter were ($0.04), which beat the estimate for ($0.05). The company said the revenues increased 3.8% from the previous quarter adjusting for removal of MedMen NY Inc. from continuing operations. Net losses were trimmed to $13.7 million from last year’s $24.9 million for the same time period.

Aleafia

Aleafia Health Inc. (OTCQX: ALEAF) reported its financial results for the three months ended March 31, 2021. Revenue fell 55% from last year’s $13.7 million to this year’s $6.2 million. most of the decline was due to an 84% drop in bulk wholesale cannabis sales. Aleafia also reported that its net losses increased from last year’s $6.1 million to this year’s $11.2 million.

Verano

Verano Holdings Corp. (OTCQX: VRNOF) amended its credit agreement for its senior secured term loan of $130 million. The Restated Credit Agreement which has a maturity date of May 30, 2023, now provides for additional, non-dilutive funding of $100 million, with an annual interest rate of 9.75% for the incremental amount.

Flora

Flora Growth Corp. (NASDAQ: FLGC) priced its initial public offering of 3,333,333 shares of its common stock, at the high end of the proposed price range of $5.00 per share to the public for a total of US$16,666,665 of gross proceeds to the company. The common stock is expected to begin trading on the Nasdaq Capital Market today under the symbol “FLGC.” 

True Leaf

True Leaf Brands Inc.  (OTC Pink: TRLFF) (FSE: TLAA) has launched both a traditional private placement and an equity crowdfunding offering. The company plans to use the proceeds from both offerings to execute its strategic plan to become the industry’s leading provider of seed-to-shelf solutions for micro-cultivators. 

Holistic

Privately-owned Holistic Industries raised $55 million in the form of a convertible note. The company said that the proceeds from the oversubscribed offering, would be used to drive expansion into newly licensed markets, including Missouri and West Virginia, expansion into additional markets, M&A activity the company is currently pursuing, as well as launches of new brands and product innovations.

In Other News

Hexo

HEXO Corp. (TSX: HEXO; NYSE: HEXO) is pleased to announce that it has established an at-the-market equity program that allows the Company to issue and sell up to C$150,000,000 of common shares in the capital of the Company from the treasury to the public, from time to time, at the Company’s discretion. 

urban-gro

urban-gro, Inc. (Nasdaq: UGRO) a horticulture company that engineers and designs commercial Controlled Environment Agriculture (“CEA”) facilities and integrates complex environmental equipment systems, today reported its revenue of $12.0 million compared to $4.2 million in 2020, an increase of $7.8 million, or 182%.for its first quarter ended March 31, 2021


StaffMay 10, 2021
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6min7010

It’s time for your Daily Hit of cannabis financial news for May 10, 2021.

On The Site

Trulieve

Trulieve Cannabis Corp.  (OTC: TCNNF) is buying  Harvest Health & Recreation Inc.  (OTCQX: HRVSF) in a deal valued at approximately $2.1 billion based on the closing price of the Trulieve Shares on May 7, 2021. The combined businesses will have operations in 11 states, comprised of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets.

Harvest Health

Harvest Health & Recreation Inc.  (OTCQX: HRVSF)  reported its financial and operating results for the first quarter of 2021 with revenue rising 101% to $88.8 million from $44.2 million in the first quarter of 2020. Revenue also rose sequentially by 27% from $69.9 million in the fourth quarter of 2020. This beat the average analyst estimate from Yahoo Finance for revenue of $87 million in the quarter. However, the company missed the estimate for the earnings loss which came in at ($0.06) per share while the estimate was for ($0.01.) per share. The net loss before non-controlling interest was $23.0 million for the first quarter, compared to $7.4 million in the fourth quarter of 2020. The adjusted EBITDA in the first quarter was $26.9 million, compared to $9.1 million in the fourth quarter of 2020.

Curaleaf

Curaleaf Holdings, Inc. (OTCQX: CURLF) reported its financial and operating results for the first quarter ended March 31, 2021. Total revenue increased by 170% to $260 million during the first quarter of 2021, compared to $96 million in the first quarter of 2020. Despite the enormous revenues, Curaleaf still delivered a net loss in the quarter of $17 million, versus a net loss of $15 million in the first quarter of 2020.

The company attributed the loss to an income tax provision of $31 million and ultimately blamed it on Section 280E of the Internal Revenue Code and, to a lesser degree, by an increase in the interest expense related to lease liabilities due to the expanded number of retail sites. The net loss for the quarter also included approximately $6 million in one-time charges which mostly include expenses associated with the equity offering and debt raise. 

Flower One

Flower One Holdings Inc. (OTCQX: FLOOF) announced unaudited preliminary first-quarter revenue guidance of $13.5 million. Flower One said that it expects to announce the date for its filing of the fiscal 2020 year and first quarter 2021 in the coming weeks. The company hasn’t reported results since the third quarter ending in September 2020 when revenues were $11.9 million.

In Other News

Akerna

Akerna (Nasdaq: KERN) reported its unaudited financial results for the quarter ended March 31, 2021. Total revenue was $4.0 million, up 31% year over year. Net loss was $6.3 million compared to a net loss of $4.8 million in the same period last year. “Our first quarter was a strong start to 2021, with increasing demand for our platform driving 62% year over year software growth,” said Jessica Billingsley, CEO of Akerna.  

Wesana

Wesana Health Holdings Inc.  (CSE: WESA), formerly Debut Diamonds Inc.,  shares began trading on the Canadian Securities Exchange (“CSE”) today, Monday, May 10, 2021, under the ticker symbol “WESA.”

“Following the completion of our go public transaction, we’re thrilled to embark on this journey as a public company listing on the CSE. As a CSE listed company, we will be able to increase engagement with our shareholders and the investment community as we continue to execute on our mission to develop alternative treatment solutions for traumatic brain injury,” said Daniel Carcillo, CEO of Wesana Health.


StaffMay 6, 2021
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6min5760

It’s time for your Daily Hit of cannabis financial news for April 6, 2021.

On the Site

IIP

After the market closed on Wednesday, Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) delivered another quarter of solid results. The real estate investment trust (REIT) reported that its total revenues increased 103% to $42.9 million for the first quarter ending March 31, 2021. This beat the yahoo Finance average analyst estimate for revenues of $42.88 for the quarter.

IIP also recorded net income of approximately $25.6 million for the quarter, or $1.05 per diluted share, and adjusted funds from operations (“AFFO”) of approximately $38.4 million, or $1.47 per diluted share (Note: AFFO per diluted share for the period includes the dilutive impact of the assumed full exchange of IIP’s $143.75 million of exchangeable senior notes for shares of common stock). This also beat the analyst estimate for $0.96. In addition, IIP paid a quarterly dividend of $1.32 per share on April 15, 2021, to common stockholders of record as of March 31, 2021, representing a 32% increase over the first quarter of 2020’s dividend and an approximately 6% increase over the fourth quarter 2020 dividend. 

Cannadips

While millions of Americans are getting ready to enjoy the summer for the first time in over a year, the cannabis industry is already gearing up for the upcoming fall harvest. Taking place between October and early November, the period is called Croptober, and it is a time when roughly 80%-85% of the cannabis industry’s outdoor cannabis is harvested. 

The reason why the industry harvests the majority of outdoor cannabis during this specific period has to do with the plant itself. Cannabis is an annual plant, which means it lives out its entire life cycle in a single growing season. 

In Other News

Alabama

The Alabama House of Representatives voted in favor (68-34-1) of the Compassion Act (SB 46), a bill that would allow registered patients with qualifying conditions to safely access and use medical cannabis. This marks the first time the Alabama House has considered a medical cannabis bill. A full summary of SB 46 is available here.

While SB 46 was previously passed by the full Senate, the bill was amended in the House. The bill will need to return to the Senate for final consideration before it can be sent to the governor’s desk. 

Karen O’Keefe, director of state policies at the Marijuana Policy Project said, “Passing the Compassion Act will allow seriously ill patients to finally get the relief they deserve. Alabama is one of only 14 states in the country that continues to criminalize the medical use of cannabis, and while this bill is more restrictive than is ideal, it is a dramatic improvement from the status quo and would improve the lives of thousands of Alabamians. We urge the Senate to swiftly concur with the modified bill, and Gov. Ivey to sign it into law.”

Trulieve

Trulieve Cannabis (TCNNF -3.9%) has completed the previously announced acquisition of Mountaineer Holding, expanding the Florida-based company’s presence in West Virginia. The total consideration of the deal at $6M consisted of $3M in cash and the issuance of ~60.3K of Trulieve shares.Commenting on the transaction, Trulieve CEO Kim Rivers said: “The addition of Mountaineer achieves a significant presence for us in West Virginia.” The Mountaineer owns a cultivation permit, and two dispensary permits in the state.“We look forward to serving West Virginia patients, and expect to be operational before the end of 2021,” she added.Trulieve more than doubled its revenue in 2020 to $521.5M, yet like other U.S.-based cannabis stocks are weighed down by federal illegality of marijuana, noted a recent cover story in Barron’s.


StaffMay 5, 2021
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7min5220

It’s time for your Daily Hit of cannabis financial news for April 5, 2021.

On The Site

Scotts

The Scotts Miracle-Gro Company (NYSE: SMG)  announced company-wide sales increased 32% in its fiscal second quarter to $1.83 billion versus $1.38 billion a year earlier. This beat the analyst estimates on Yahoo Finance which were $1.73 billion. Sales for the hydroponic segment known as Hawthorne increased 66% to $363.8 million. Scotts said that due to its fiscal calendar, the second quarter of 2021 ended six days later than the second quarter of fiscal 2020. The shift had a sales impact of approximately $122.5 million within the lawn and garden business, impacting the U.S. Consumer and Other segments.

The company beat analyst estimates which were $5.42 according to Yahoo Finance by delivering GAAP earnings from continuing operations of $5.44 per share. This also was much higher than last year’s $4.43 per share. Non-GAAP adjusted earnings, which exclude impairment, restructuring, and other non-recurring items, and are the basis of the company’s financial guidance, were $5.64 per share compared with $4.50 a year ago.

Jazz

Jazz Pharmaceuticals plc (Nasdaq: JAZZ) closed on its acquisition of GW Pharmaceuticals and announced financial results for the first quarter of 2021 and affirmed financial guidance for 2021. On February 3, 2021, the company said it planned to buy GW Pharmaceuticals for $220.00 per American Depositary Share for a total value of approximately $7.2 billion, or $6.7 billion net of GW cash.

Total revenues increased 14% in the first quarter of 2021 to $607 million compared to the same period in 2020 which was $534 million. This was on target the average analyst estimates according to Yahoo Finance but missed the Zacks Consensus Estimate of $613.0 million. GAAP net income for the first quarter of 2021 was $121.8 million, or $2.09 per diluted share, compared to a GAAP net loss of $157.8 million, or $2.82 per diluted share, for the first quarter of 2020. Non-GAAP adjusted net income for the first quarter of 2021 was $228.8 million, or $3.92 per diluted share, compared to $25.8 million, or $0.45 per diluted share, for the first quarter of 2020.

MDMA

The Multidisciplinary Association of Psychedelic Studies (MAPS) has worked for the last 35 years to shift the perception around psychedelics as a treatment tool for mental health issues. Now, with the release of data from its Phase III trial with the FDA for the use of MDMA (ecstasy) to treat PTSD, MAPS’ work has coalesced into findings that could change the mental health treatment landscape as we know it. 

MDMA is on the cusp of FDA approval to treat PTSD, not just for military veterans, but for an array of people who have suffered from abuse and other trauma-inducing events. In 2017, the FDA granted MDMA “breakthrough therapy status” in anticipation of approving it as a medication for mental health, and the release of MAPS’ latest statistically significant findings constitutes a huge leap towards legalization. 

Sundial Growers Inc. (NASDAQ: SNDL)  is buying Inner Spirit Holdings Ltd. (CSE: ISH) (OTCQB: INSHF) in a deal valued at approximately $131 million. Inner Spirit is better known as the retailer and franchisor of Spiritleaf recreational cannabis stores across Canada. The Spiritleaf network includes 86 franchised and corporate-owned locations, all operated with an entrepreneurial spirit and with the goal of creating deep and lasting ties within local communities. The deal is expected to close in the third quarter of 2021.

In Other News

Innovative Industrial Properties, Inc.  (NYSE: IIPR) announced results for the first quarter ended March 31, 2021.

First Quarter 2021 and Year-to-Date Highlights

Financial Results

  • Generated total revenues of approximately $42.9 million in the quarter, representing a 103% increase from the prior year’s first quarter.
  • Recorded net income attributable to common stockholders of approximately $25.6 million for the quarter, or $1.05 per diluted share, and adjusted funds from operations (“AFFO”) of approximately $38.4 million, or $1.47 per diluted share (Note: AFFO per diluted share for the period includes the dilutive impact of the assumed full exchange of IIP’s $143.75 million of exchangeable senior notes for shares of common stock).
  • Paid a quarterly dividend of $1.32 per share on April 15, 2021 to common stockholders of record as of March 31, 2021, representing a 32% increase over the first quarter 2020’s dividend and an approximately 6% increase over the fourth quarter 2020 dividend.

StaffMay 4, 2021
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7min8860

It’s time for your Daily Hit of cannabis financial news for April 4, 2021.

On the Site

Cansortium

Following the close of the markets on Monday, Cansortium Inc. (OTCQB: CNTMF) released its fourth-quarter and full-year results for 2020. Revenue increased 54% to $14.7 million in the quarter versus $9.5 million for the same time period in 2019. Cansortium also delivered a net loss of $8.4 million in the quarter, an improvement over last year’s net loss of $32.8 million for the same time period.

For the full year of 2020, Cansortium reported its revenue increased 84% to $52.4 million versus last year’s revenue of $28.5 million. This was lower than the company’s forecast of $55 million. Cansortium attributed the difference to the sale of the 2020 Michigan crop that was initially included in its 2020 projection but was delayed to 2021, causing the variance between actual and forecasted. Excluding Michigan operations, revenue was $52 million, which exceeded the company’s projection of $49 million from operations in Florida and Pennsylvania.

Psychedelic

Psychedelic clinic companies have been expanding quickly as more patients are seeking alternatives to traditional prescription drug treatments. Both Field Trip Health and Novamind announced news of their expanding clinics across the country.

Field Trip

Field Trip Health Ltd. (OTCQX: FTRPF)  opened its fifth location in the United States in the city of Houston, TX. Located in the River Oaks District, the Houston location is the second Field Trip Health center to open this year. Field Trip also announced that it has entered into leases and has commenced, or will soon commence, construction to build Field Trip Health centers in San Diego, CA, San Carlos, CA, Seattle, WA, Washington DC, and Fredericton, NB.

Novamind

Novamind Inc. (OTC PINK:NVMDF) reported it would open four new Cedar Psychiatry clinics, doubling its network to eight total locations. The expanded capacity from the New Clinics is forecasted to increase Novamind’s patient volume from 20,000 client visits recorded in 2020 to approximately 65,000 client visits anticipated in 2021.

In Other News

Ascend

Ascend Wellness Holdings, Inc. closed its previously announced initial public offering of 10,000,000 shares of its Class A common stock at a public offering price per share of $8.00, for total gross proceeds of US$80,000,000. The shares will commence trading today on the Canadian Securities Exchange, under the ticker symbol “AAWH.U”. The company expects its shares to become quoted on the OTCQX® Best Market operated by OTC Markets Group, Inc. (the “OTCQX”) in the days shortly following the closing of the Offering if approved by OTCQX.

Sundial

Sundial Growers (SNDL) has upped its stake in The Valens Company (VLNCF) to more than 10%, the company said in a statement. Previously, Sundial has owned ~15.5M shares representing ~9.7% of the issued and outstanding common stock on a non-diluted basis as of April 14. Yesterday, the company has spent a total consideration of ~$2.0M to acquire another 538.4K common shares of Valens for $3.663 per share increasing its stake to ~10.1%. The company indicated $2.67 apiece as its average cost base of the common stock at Valens including the new acquisition. Based in Canada, 

Jushi

 Jushi Holdings Inc.  (OTCMKTS: JUSHF ) has closed on its previously announced acquisition of 100% of the equity of Organic Solutions of the Desert, an operating dispensary located in Palm Springs, California, and approximately 78% of the equity of a retail license holder located in Grover Beach, California with the option to acquire the remaining equity in the future. Jushi will be implementing its best-in-class, customer-focused retail approach that includes the introduction of its online reservation ordering platform and express pick-up options at the Palm Springs dispensary. The Company expects to complete the build out of the BEYOND / HELLO™ Grover Beach location in Q3 2021. The two new locations expand Jushi’s footprint beyond its first California dispensary, BEYOND / HELLO™ Santa Barbara, which opened in October 2020. Jushi also plans to add an additional California location in Culver City, which is expected to open by Q2 2022, subject to state and regulatory approvals.

TerrAscend
TerrAscend Corp. (OTCQX: TRSSF), completed its previously announced acquisition of HMS Health, LLC and HMS Processing, LLC, from Curaleaf Holdings, Inc (OTCQX: CURLF) for a total consideration of $27.5 million, comprised of $25.0 million in cash prior to net adjustments and a $2.5 million note which bears 5.0% annual interest, due October 2022. The acquisition is expected to be immediately accretive to TerrAscend on an EBITDA basis.


StaffApril 29, 2021
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6min7420

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

On The Site

Hydrofarm

Hydroponic company Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) has had a busy week including reporting its quarterly earnings and announcing a huge offering that intends to raise $269 million. First things first, the earnings for the quarter ending March 31, 2021. Hydrofarm said it expects to deliver net sales in the range of $109 million to $111 million versus $66.9 million for the same time period in 2020. The company attributed the 65% in growth to higher net sales across multiple geographies, product categories, and its brand segments (its proprietary, preferred, and distributed brands).

Gage

Michigan-based Gage Growth Corp.  (CSE: GAGE) reported its financial results for the three and twelve months ended December 31, 2020. Gage said revenue increased 615% to $10.5 million in the fourth quarter over last year. Gage also reported that its revenue increased 1,972% for the full year to $39.9 million versus $1.9 million in fiscal year 2019. The company also trimmed its net losses to $29.8 million from 2019’s net loss of $75 million. the company had a stellar 420 holiday and logged revenue of over $505,000 in a single day with average basket size of $171 and 2,956 total transactions.

Sol Global

SOL Global Investments Corp.  (OTCPK: SOLCF) provided its investors with unaudited financials for the first quarter ended February 28, 2021, and a general operational update concerning its assets and investments. Sol Global recorded a positive net income of $208 million versus quarter-end February 29, 2020, of $2.9 million. The increase was due to the company selling Bluma Wellness to Cresco Labs Inc. in an all-stock transaction valued at $213 million. As of February 28, 2021, the company had $18 million in cash.

In Other News

Tryp

Tryp Therapeutics Inc. (CSE: TRYP) announced its interim financial results for the three and six-month periods ended February 28, 2021. The Company’s total assets as of February 28, 2021 were $7.5 million, including $6.7 million in cash. Net and comprehensive losses for the three and six months ended February 28, 2021 were both $2.4 million. The net loss for the period was partially due to a $956,360 write down to intangible assets, a non-cash expense resulting from a deliberate restructuring of the Company’s intellectual property portfolio. Tryp is prioritizing its intellectual property prosecution activities on a provisional patent filed in March 2021 that describes novel methods for the formulation, delivery, and dosing of psychedelics resulting in a potential reduction in the time spent by patients in the dissociative state. The Company expects to submit additional provisional patents in 2021 related to the manufacturing and formulating of psilocybin, among other innovations.

TGOD

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) provided a corporate update on its operations and progress on its strategic business plan. TGOD initiated the process of monetizing underutilized assets, especially at its cultivation and processing facility in Valleyfield, Quebec. In doing so, the Company hopes to increase its financial flexibility in order to reduce its debt and capitalize on future opportunities. The Company continues to review other strategic initiatives to maximize shareholder value. This includes the potential sale or spin-off for an Initial Public Offering of HemPoland, its wholly owned subsidiary, for which TGOD has retained Canaccord Genuity as an advisor, and the potential for mergers and acquisitions in the Canadian cannabis LP sector.

AFC

AFC Gamma, Inc. (NASDAQ:AFCG) announced it has provided a credit facility of $13 million to a Missouri medical cannabis operator (the “Borrower”). The credit facility is designed to provide capital to allow the Borrower to build out its cultivation and dispensary operations in the state of Missouri.


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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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