Marijuana Money Archives - Green Market Report

Video StaffSeptember 30, 2022

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We’ve gone by the name Marijuana Money for the last 5 years, but we’re changing the name to match our newsletter that goes out weekly – the Weekly Stash. It’s free – subscribe now.

This week cannabis giant Canopy Growth (Nasdaq: CGC) said it was getting out of the retail store business. The company is selling off its Tokyo Smoke and Tweed stores. Canopy said it was focused on becoming profitable and that meant it would pivot to just becoming a consumer packaged goods company. 

Green Market Report also posted a story this week looking at the cannabis company strategy of deferring tax payments. Many companies are seeing their tax bills grow every year while hoping that some form of legislation will get passed that could ease their tax burdens. 

The Northern Lights SPAC was completed this week. Safe Harbor Financial is finally trading on the NASDAQ even though the company got a little less money than planned. However, investors are making sure Safe Harbor has enough money in the pipeline to keep it secure for several months. 

Ascend Wellness announced that its CEO Adner Kurtin would step down after news surfaced of a domestic dispute. The company said it would have two interim co-CEO’s as it begins a search for a permanent replacement. 

London-based British American Tobacco (BAT) acquired a minority stake in German marijuana company Sanity Group, and led the company to what it claims is the largest capital raise in European cannabis history. The BAT Group led the $37.6 million Series B capital raise for Sanity Group, which the release claimed was “Europe’s largest cannabis investment round to date.” The money will be used by Sanity Group to further expand its existing footprint and to prepare for further expansion once cannabis is fully legalized in Germany.

And finally, Vermont looks like it may be on track to begin adult-use sales on October 1. The state looked like it might get off to a slow start as some licensees said they didn’t have enough time to have a harvest ready by that date. But Slang with its Ceres Collaborative group announced its medical operation in Burlington would open on the planned start date as an adult use dispensary.


Video StaffSeptember 23, 2022

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Canadian cannabis company Aurora Cannabis (Nasdaq: ACB) reported that its fourth-quarter net revenue for medical cannabis increased 4% year-over-year to $36.6 million, while adult-use cannabis revenue fell 35% year-over-year to $12.6 million. Sequentially, sales of adult-use cannabis increased 22% from the third quarter, primarily due to sales from its “profitable acquisition” of Thrive Cannabis. 

C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) posted results that showed slimming revenue in a state that has seen less tourist and local spending as wallets get tighter. The company posted revenue of $7.2 million – down 4% sequentially, “narrowly outperforming Nevada market sales which saw an overall decline of 5% in total sales over the same period. C21 said it was pivoting away from tourists and focusing more on locals. 

Medical marijuana company Vireo Health, a subsidiary of Goodness Growth Holdings (OTC: GDNSF) is fighting back against a recent loophole for edibles in the state of Minnesota. The conflict stems from a recent amendment to Minnesota laws that now allows anyone to sell edible products with up to 5 milligrams of THC derived from hemp and a THC concentration of up to 0.3% to anyone over the age of 21. The complaint against the state says that the hemp-derived edibles are chemically identical to medical cannabis-derived edibles sold by Vireo that have the same type, quantity, and concentration of THC.

Northern Lights Acquisition Corp. revealed that it will need a few extra weeks to deliver the $70 million that it owes Safe Harbor Financial under the terms of a deal signed back in February, with the cash now due on Sept. 28 instead of Aug. 31. But the delay is only due to both parties waiting on approval from the Nasdaq, which is relatively common and doesn’t mean the deal is in danger, 

The New York Cannabis Control Board awarded conditional business licenses to 19 cultivators and 10 processors, which brings the total number of licensed growers to 261 and the total number of processors to 25. 


Video StaffAugust 26, 2022

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SNDL Inc. formerly known as Sundial (Nasdaq: SNDL) is buying The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) in a deal valued at C$138 million. The acquisition will make SNDL one of the largest adult-use cannabis manufacturers and retailers. The combined company will have 555,500 square feet of cultivation and manufacturing space and 185 cannabis stores under the Spiritleaf and Value Buds banners.

Since recreational cannabis launched in April, New Jersey reported approximately $200 million in legal sales.Monthly sales growth in the state outpaced other adult-use markets tracked by the firm despite having one of the lowest per capita retail counts in the pool. BDSA estimated a compounded monthly growth rate of roughly 10% through July versus Illinois’ rate of 3% in its first three full months of adult-use sales.

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) completed its acquisition of Michigan dispensary chain Pinnacle Emporium from KISA Holdings, LLC, for $28.5 million. The acquisition includes six dispensary licenses, five of which are currently operational and located in the cities.

In a fairly depressing letter to shareholders, Oregon-based Chalice Brands (OTC: CHALF) dropped a truth bomb about the industry’s woes. The letter starts out nice enough.The letter hit on the macroeconomic trends of inflation, higher interest rates, the skyrocketing cost of housing, and the effect of consumers spending less. Digging further the letter says Oregon’s cannabis operators have been beset with repetitive theft, increased overhead, and excessive competition.

The Greenrose Holding Company Inc. (OTC: GNRS, GNRSW) posted increasing losses for the consecutive quarter as its cultivators navigate demand headwinds. Greenrose reported approximately $9.2 million in rising revenue during the period, the company’s second-quarter net losses totaled $10.3 million, down 132% sequentially;

The Pennsylvania Department of Health withdrew its appeal to the Supreme Court of Pennsylvania to recall various vaporized medical cannabis products after a half-year pushback from the advocacy network Medical Marijuana Access and Patient Safety.

The retraction on Aug. 17 came months after the department issued a recall and ban of hundreds of medical cannabis vape products.


Video StaffAugust 19, 2022

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I’m Debra Borchardt and this is your marijuana money minute. We took a bit of a break from our video schedule, but we are back. Green Market will be  hosting its first Tech Summit in San Francisco on September 8. You can buy tickets and register on the website under the Summits tab.

This was another big week for earnings.

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its revenue rose 12% to $224 million. The company also trimmed its net losses to $10 million from last year’s net loss of $30 million. 

Cresco Labs reported approximately $218 million in revenue during the period. The company also reported that it has maintained its position as the number one cannabis wholesaler in the country.

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its revenue rose 16.2% quarter-over-quarter and increasing 20.7% year-over-year, to $117.7 million. Ascend said its net loss dropped to $21.2 million during the quarter. The company said it helped being in the New Jersey market.

Ayr Wellness reported $110 million in revenue during the period, up 20.6% versus the same period last year. The company said it expected its revenue to grow by 10% for the rest of the year.

Not doing so well is Greenlane who delivered $39.9 million in total revenue during the quarter, falling from $46.5 million in the previous quarter. The company also said it was looking to decouple from its cannabis packaging company KushCo, which it merged with not long ago. Conspicuously absent from the company’s earnings statement was CEO Nick Kovacevich who had been the CEO at KushCo before taking on the role at Greenlane. 

Also turning in a disappointing number was Jay-Z cannabis company The Parent Co. who reported approximately $27.4 million in revenue, a 27% drop from last year. The Parent Co. also reported a second-quarter net loss of $30 million versus a $33.5 million loss sequentially. 

Don’t forget to register for the Tech Summit as we head to the west coast in September. 

 


Video StaffJune 3, 2022

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We are reporting from the CWCB Expo in New York City today. 

 

It was a shorter trading week since markets were closed on Monday for the Memorial Day holiday and it’s been a fairly quiet start to summer for business news.

 

On Monday, Canadian cannabis company Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) reported total first quarter revenue of $15.8 million, up 17% sequentially over the fourth quarter of 2021. The reported loss was trimmed to $8.7 million.

 

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) announced  first quarter revenues increased 65% to $4.6 million and a 28% sequential increase from the fourth quarter. The company’s net loss was essentially flat at $4.5 million.

 

HYTN Innovations Inc.  (CSE: HYTN) reported revenues of $255,461 for the second quarter and  the company has a cash position of over $2.2 million and no debt as of March 31, 2022. However, it is also listed as a going concern at this time.

 

The Allman Brothers band became the latest music group to release a cannabis brand. Most of the members of the band are dead at this point, but that doesn’t seem to matter. 

 

And finally, we published our followup story to the NASDAQ traded concept cannabis company Bright Green. We were able to track down the lawsuit from the former CEO and the allegations are stunning to say the least. Make sure you read that one. 


Video StaffMay 20, 2022

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Bright Green is a cannabis company with no revenue that just began trading on the NASDAQ, despite the exchange’s insistence that it won’t list U.S. cannabis companies due to the product being federally illegal. Bright Green plans to produce cannabis for research purposes with the Drug Enforcement Agency‘s (DEA) blessing, which seems to be the reason why the NASDAQ has allowed the company to trade. It would be considered federally legal cannabis. But the DEA wouldn’t confirm the agreement. The stock was trading at $26 and moved beyond $30 a share.

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) is buying Lemurian, Inc. better known as Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, contingent upon federal permissibility of THC in the U.S. or earlier at Canopy Growth’s election, up to 100% of the outstanding capital stock of Jetty.

Cresco Labs Inc. ( (OTCQX: CRLBF)  reported revenue fell from the fourth quarter’s $217 million to the first quarter’s $214 million. Cresco Labs did note that the revenue increased 20% over last year’s $178 million for the same time period. This also beat the Yahoo Finance average analyst estimate for sales of $213 million.

After several lackluster quarters, cannabis software company Akerna (Nasdaq: KERN) announced that it is evaluating strategic alternatives as the company. Akerna also reported that CFO John Fowle is leaving to pursue other interests and the Board has appointed Dean Ditto as Akerna’s interim CFO. Fowle recently said on the company’s earnings call, “The ability of the company to continue as a going concern is dependent on our ability to secure other sources of financing, reduce debt, and attain profitable operation.

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) announced its financial results for the three-month period ended March 31, 2022, with revenues rising 8% to $25.7 million from last year’s $23.8 million. However, Planet 13’s revenue fell sequentially from the fourth quarter’s $29 million.

Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF)  reported revenue fell sequentially by 11% to $123 million from $139 million in the fourth quarter. It was a 43% increase over last year’s revenue of $86 million for the same time period.

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF) reported net revenues rose 147% to $22.6 million versus $9.2 million during the same period in 2021. Revenues fell sequentially from the fourth quarter’s revenue of $29 million. Auxly admitted it had lower winter yields at Auxly Leamington and hardware and packaging shortages due to supply chain disruptions.

Next week, we’ll be reporting from Davos covering the psychedelic space.


Video StaffMay 13, 2022

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Earnings season is in full swing as companies begin to deliver the first quarter earnings. Across the board it was tough for hydroponic companies, while many of the cannabis producers seem to start the year strong. Some even teased that next quarter would begin the inclusion of New Jersey sales. 

One story we’ve been following for months got resolved. MedMen agreed to surrender its New York assets to Ascend Wellness. After a months-long nasty court battle, MedMen agreed to let go and while MedMen said it got $15 million more, Ascend’s purchase went from 86% of the property to 99% – so it didn’t really seem like they squeezed much more out of the deal. The interim MedMed CEO Michael Serruya is now the Chair and the company named Edward Record as the new CEO.

There were so many companies delivering numbers, that we’ll just high the high points here. 

Trulieve announced its first quarter revenue increased to $318.3 million from $193.8 million last year and 4% sequentially. The company also said it expects to report over a billion in cannabis sales in 2022. 
Both Curaleaf and Acreage Holdings reported that their sales declined sequentially from the fourth quarter. However both companies were able to begin adult-use sales in New Jersey in April and that is likely to turn things around quickly.

On the hydroponics side, Urban-gro, Hydrofarm and Agrify all reported earnings this week. Sales were either flat or just barely above last year for each company. However, they are all reiterating previous guidance and believe their market will recover by the end of the year.

On a positive note, Green Thumb Industries showed how it had navigated headwinds of falling prices and increasing costs. This company continues to deliver solid quarters and this was another. Revenue rose 25% year-over-year to $243 million.

Next week is the MJ Unpacked conference in New York. 

 


Video StaffApril 15, 2022

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The big news this week was that the first licenses for adult use cannabis were awarded by the state of New Jersey. 13 licenses were handed out to existing medical marijuana operators. Some of the companies that got the green light included Curaleaf, GTI, Acreage Holdings and Terrascend. Sales could begin in just a few short weeks. More licenses are expected in the near future. 

 

Tilray Brands Inc. (NASDAQ: TLRY) is leaning into its Hexo Corp. debt buying with the announcement that it would buy Hexo’s remaining $193 million senior secured convertible note. Tilray had originally announced in March that it was buying $211 million of the troubled company’s debt.

 

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) delivered its results for the second fiscal quarter ended February 28, 2022. Organigram reported that its net revenue increased 117% to $31.8 million, from $14.6 million for the same time period in 2021. The company attributed the increase to growth in adult-use recreational revenue and international revenue, partly offset by a lower average net selling price due to product mix and a decrease in medical revenue.

 

The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) reported that net revenue increased 26.1% sequentially to $23.2 million in the first quarter from $18.4 million in the fourth quarter. However, the company also reported a net loss of $25 million and is working to reduce its cash burn.

 

New York State Governor Kathy Hochul released the 2023 budget that predicts adult-use sales of legal cannabis will generate $40 million in license fees and $16 million in partial receipts from the state’s retail taxes. Mor eimportant is that the governor is willing to give the cannabis companies a tax break by casically allowing 280e deductions at the state level. 

 

Finally, markets are closed on Friday for the Good Friday holiday. Happy easter everyone.


Video StaffApril 8, 2022

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In just a few weeks Green Market report is hosting its first event of 2022. The Women’s Summit is on April 28, but all genders are welcome. Go the website under the Summits tab to register.

 

New Mexico is now the 18th state to legalize the sale of adult-use cannabis and those sales began last Friday. The state reportedly sold $5 million worth of product by the end of the first weekend.

 

Tilray Brands, Inc. (Nasdaq: TLRY) reported third fiscal quarter revenue increased 23% to $152 million but this fell from the second quarter’s revenue of $155 million and slightly missed the revenue estimates. The company also reported a net income of $52 million.. However, this net income improvement was almost entirely from a $76M non-cash adjustment to the company’s warrant liability and the future value of convertible debentures(which occurs due to the share price falling). 

 

The disgruntled investor lawsuit against Parallel cannabis initially hit the public records as a heavily redacted document. The Judge in the case apparently denied the redaction request and Green Market Report got a look at the complaint in all its glory or gory detail. Essentially Former CEO Beau Wrigley increased the company debt to $300 million while Parallel reduced its revenue projections by 40% in a matter of months. Parallel was also in default on its debts but did not tell potential investors. This story has lots more detail so head to the site to read it.

 

Israeli-based cannabis company InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) also known as Canndoc reported its fiscal year 2021 revenue of $89 million.

 

 The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF) reported that in 2021, TGOD’s revenue rose 146% to $39 million. The net loss for the year was $43.5 million. Most troubling was the company’s auditors saying that the accumulated deficit was $487 million and the company remained a going concern.

 


Video StaffMarch 25, 2022

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We got more earnings this week, but the really big news was the acquisition of Columbia Care by Cresco Labs. The $2 billion deal will make it the largest marijuana company in the U.S. The combined companies would be larger than Curaleaf, which had $1.2 billion in revenue. Cresco has 50 dispensaries and 21 cultivation facilities in 10 states. Columbia Care has 99 dispensaries and 32 cultivation facilities in 18 states. The combined companies have about 6,100 employees.

Both reported earnings this week as well. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million and revenue rose 73% in 2021 to $822 million. Of concern is that the company’s debt is growing along with huge interest payments. Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported revenue in the fourth quarter of 2021 rose 70% over last year to $139 million and the full-year 2021  revenue rose 156% to $460 million.

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its total revenue rose 104% to $65.9 million in the fourth quarter over last year. For the full year, total revenue of $209.3 million increased approximately 159% year-over-year. 

Nova Cannabis Inc. (TSX: NOVC) reported its fourth-quarter sales increased 175.9% to $47.6 million. Sales for 2021 were $134.4 million, a 112.2% increase from $63.3 million in 2020. 

Charlotte’s Web (TSX: CWEB) (OTCQX: CWBHF) reported that fourth-quarter revenue fell 7.8 % to $24.8 million from $26.9 million for the same time period in 2020. For the full year of 2021, net revenue grew 1.0%, to $96.1 million and the net loss for the year was $137 million. 

Other bigs news involved, a complaint filed in the New York County Supreme Court and the Southern District of Florida by some investors of privately-owned Surterra Wellness, now known as Parallel. they are pretty angry about what happened to their investment dollars. While the documents were heavily redacted, the cases suggest that Wrigley loaded up Parallel with excessive debt and misrepresented the health of the cannabis company. The complaint alleges that his goal was to get the company taken public through the Ceres Acquisition Corp SPAC and then exiting with a profit. The Ceres deal failed once the investors saw what they were buying.

 


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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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