Marijuana Money Archives - Green Market Report

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.

 


Video StaffMarch 11, 2022

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Greenlane Holdings, Inc. (NASDAQ: GNLN) is selling its headquarters, announced layoffs, and leadership changes in order for the company to become profitable. The company also said it expects net sales to be between $55.5 million and $56.5 million for the fourth quarter and between approximately $165.5 million and $166.5 million for the full year.

 

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported that its fourth quarter revenue decreased 6.2% sequentially to $88.5 million. The sequential revenue decline was driven by lower prices in the wholesale market. However, it rose 63% over last year. For the full year revenue rose 133% to $332 million. 

 

The Scotts Miracle-Gro Company (NYSE: SMG) lowered its full-year sales guidance for its hydroponic Hawthorne division. In addition, Scotts said the reduction would likely lead to adjusted earnings per share that are lower than previously expected. Scott expects Hawthorne sales to decline 15% to 25%, including acquisitions.

 

The MedMen and Ascend battle over the New York assets continues to heat up. This week, MedMen dialed back its accusation of influence peddling. While the company said it may have the details wrong, it still believes there was some greasing of the political wheels. Ascend said on its earnings call that it still believes MedMen will have to stick to its agreement to sell the assets and accused the company of trying to shop the properties for a better price.

 

And finally this week, New York regulators are set to approve a rule making it so people with prior marijuana convictions will get the first round of adult-use marijuana retailer licenses—ahead of existing medical cannabis businesses. The proposal to create the conditional licenses will be taken up by the New York State Cannabis Control Board. OCM director Chris Alexander told the New York times that he expects upwards of 200 “justice involved” applicants to receive the priority licenses under the proposal and sales could begin by the end of the year.

 

Next week we’re headed to SXSW, so no marijuana money video. 


Video StaffMarch 4, 2022

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It was a huge week for cannabis company earnings, so we’re just going to hit the big ones. Head over to the website for more in-depth information.

Green Thumb Industries Inc.  (CSE: GTII) (OTCQX: GTBIF) reported total revenue in the fourth quarter of 2021 was $243.6 million, up 37.4%. Net income was $22.8 million. For the full year 2021, total revenue was $893.6 million.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported that in the fourth quarter it had net revenue of $25.8 million but once again the company recorded an eye-popping net loss of $133 million.  For the full year, the net revenue was $74.4 million but the operating loss for the full year was a staggering $560 million, while the net loss was $389 million. 

Village Farms (NASDAQ: VFF) reported sales for the fourth quarter increased 55% to $72.8 million. Sales for the full year were $268 million. 

The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) reported revenue of $23 million for the fourth quarter, which fell sequentially. The total sales for the full year were $90 million. Valens gave revenue guidance for 2023 of at least $225 million.

Both hydroponic companies GrowGen and Hydrofarms had mixed results. GrowGen’s same-store sales dropped and Hydrofarm’s sales increases were only due to acquisitions.

Curaleaf, which is under the microscope for its Russian connections reported its numbers.

Tilray Brands, Inc.  (Nasdaq: TLRY) is striking up a partnership with Hexo Corp. (Nasdaq: HEXO) by buying $211 million of its debt. In December, Hexo warned that the company was in trouble and said it would have trouble paying its debts. 

And finally, it’s women’s history month and Green Market Report announced its women’s summit to be held on April 28 in NYC. Registration is open and you can find the link on the website.


Video StaffFebruary 25, 2022

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 Earnings season got off to a strong start this week. WM Technology better known as Weedmaps (Nasdaq: MAPS) announced its total revenue for the fourth quarter increased to $54.2 million, up 22%. This beat the Yahoo Finance average estimate for sales of $51 million and was higher than the third quarter’s sales of $50 million. The outlook for 2022, is for full year revenue to be between $255 million and $265 million, which represents 32-37% growth.

Innovative Industrial Properties, Inc.  (NYSE: IIPR) announced total revenues of $58.9 million for the fourth quarter. This beat the Yahoo Finance average analyst estimate of $57 million. IIP generated total revenues of approximately $204.6 million for 2021.

Turning Point Brands, Inc. (NYSE: TPB) reported its fourth-quarter sales were essentially flat at $105 million. For the full year 2021, sales increased 10 % to $445.5 million.

The big disappointment in earnings this week was Cronos Group.  Cronos Group (NASDAQ: CRON) reported that its 2021 third quarter jumped by 80%  over last year to $20.4 million. However, the strong increase in earnings was overshadowed by the company’s restatement of earnings from the second quarter and a whopping charge of $235 million. In addition to that, Cronos said it was restructuring the company to cut costs. The company had an operating loss of $55 million. 

In brighter news for cannabis, Leafly’s (NASDAQ: LFLY) sixth annual Cannabis Jobs Report (developed in partnership with Whitney Economics) reveals that the legal cannabis industry added 107,059 new jobs in 2021 and is poised to hold on to its distinction in 2022 as the most prolific job creator in America.  


Video StaffFebruary 18, 2022

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Ascend Wellness (OTC: AAWH) has pulled off the gloves in its latest complaint against MedMen (OTC: MMNFF) calling the company, broken and mismanaged and saying that it has repeatedly reneged on its promises to its employees, suppliers, shareholders, medical marijuana patients, regulators. MedMen had agreed to sell its New York assets to Ascend, but the deal was contingent upon New York State giving approval to the deal. MedMen has since refused to close the deal saying the state hadn’t really given final approval and accusing the state and Ascend of influence peddling. Ascend went on to say that MedMen just had buyer’s remorse and wants more money. The complaint also calls MedMen a pariah in the cannabis industry. 

More big SPAC news this week.

Cannabis blank check company Relativity Acquisition has raised $125 million and could raise another $18.75 million. Relativity Acquisition’s common stock is set to trade on the Nasdaq under the symbol “RACY”.

Banking company Safe Harbor Financial will go public through the SPAC Northern Lights Acquisition Corp.  (NASDAQ: NLIT). Safe Harbor is a subsidiary of Partner Colorado Credit Union, a Colorado-chartered credit union based in Arvada, Colorado. 

Infused beverage company and celebrity favorite Cann announced a $27 million Series A funding round coming from fresh institutional capital as well as existing investors like  Imaginary Ventures who added to its original investment. Cann was launched in 2019 and raised $5 million in a seed round in 2020.

Aleafia Health Inc. (OTCQX: ALEAF) reported its net revenue was $36 million for  2021 which was lower than its $44 in 2020. For the fourth quarter, net revenue fell to $8.8 million from $15 last year.

Despite numerous other cannabis companies managing to complete their bookkeeping during the pandemic, Icanic Brands (OTC: ICNAF) is now blaming Covid as the reason its financial filings are late. The delay has resulted in a cease trade order in Canada. Strangely enough the company was able to file its financials in the early part of the pandemic. 


Video StaffFebruary 4, 2022

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This week Green Market Report launched its Psychedelics industry newsletter called Psychedealia. We’re really excited to expand our newsletter offerings and allow you to Choose your News. 

This week’s earnings season kicked off with a big name. The Scotts Miracle-Gro Company (NYSE: SMG) reported that company-wide sales in the quarter dropped 24% to $566 million. The company also announced plans to restructure its hydroponic subsidiary Hawthorne after sales dropped. Scotts said it would take a restructuring charge of up to $5 million in the second quarter as a result of its restructuring. 

Verano (OTC: VRNOF) made a big move into the coveted New York market with a large acquisition. Chicago-based Verano is buying Goodness Growth Holdings in an all-stock deal valued at $413 million. Goodness Growth has a presence in New York through the Vireo Health subsidiary. New York is in the process of creating its program for adult-use sales which are expected to begin in 2023. 

Like a broken record, High Times has seen another CEO depart and has extended its Reg-A offering yet again. Peter Horvath resigned from his position as CEO and Director. Paul Henderson was named the newest CEO making that 4 CEOs in as many years. Henderson is also the interim CFO.

Columbia Care raised $185 million in an offering of senior notes this week

While HEXO Corp received notification from the NASDAQ marketplace that it is not in compliance with the minimum bid price of $1 per share. The company will have a limited amount of time to get its share price back up to that mark

And iAnthus finally closed on its acquisition of MPX New Jersey. The deal was originally announced in 2018 but got mired in numerous lawsuits. 


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