Verano Holdings, LLC is buying and merging with Alternative Medical Enterprises, LLC, Plants of Ruskin, LLC, called AltMed to create the largest privately-owned cannabis company. The value of the transaction was not disclosed. Earlier this year Harvest health killed its plan to buy Verano in a deal valued at $850 million.
It was a huge week for earnings with numbers coming from some of the biggest players. We’ll break it down into a winners, losers amd meh category.
The winners are
Green Thumb Industries or GTI had another tremendous quarter with revenue increasing 131% to $157.1 million. Revenue growth was driven primarily by the increased scale in the company’s Consumer Packaged Goods and Retail businesses.
Canopy Growth Corporation (NYSE: CGC) reported net revenue of $135.3 million for the second fiscal 2021 quarter causing the stock to jump. This was a 77% increase over last year’s fiscal second-quarter revenue of $76.6 million. Still, Canopy delivered a net loss of $96.6 million versus last year’s net income of $242 million for the same time period.
Grow Generation is a specialty garden center with 31 locations across 11 US states. The company recently released their third quarter earnings, and reports that, “Revenues rose 153% to $55.0 million, for third-quarter 2020, versus $21.8 million for the same period last year.”
Harvest Health & Recreation Inc. (OTCQX: HRVSF) reported revenue rising 86% in the third quarter to $61.6 million. This was a sequential increase of 11%
Acreage Holdings, (OTC: ACRHF, ACRDF) reported their third-quarter revenue of $31.7 million, a 42% increase compared to the same period in 2019. It also was a 17% increase compared to the second quarter.
In the so so category:
Aurora reported a slight increase in total and net revenue in Q1, with numbers reaching $67.8 million, but then the company announced a $125 million offering and that was not well-received by shareholders because of the company’s elevated cash burn
Tilray, Inc. (Nasdaq: TLRY) reported that its total revenue for the third quarter was flat at $51.4 million and up 2.0% sequentially. Net losses fell to $(2.3) million
Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported that its revenue was rising to $25.2 million only a tiny bit better than the $25.1 million in 2019. The net loss was $6.6 million which was higher than last year’s net loss of $1.3 million.
Not so great earnings included
Canopy Rivers Inc. (OTC: CNPOF) which acknowledged taking a $112 million hit for its PharmHouse investment. The total comprehensive loss for the quarter was $87.0 million.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI),shares plunged this week on an underwritten public offering of units for C$60 million.
In psychedelic news, Cybin began trading this week and Compass reported that it has enough cash to last it through 2023.