It’s time for your Daily Hit of cannabis financial news for November 16, 2021.
On The Site
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its results for the third quarter ended September 30, 2021, with revenues of $207 million, which increased over the second quarter’s revenue of $199 million. Unfortunately, this missed the average analyst estimates by Yahoo Finance for revenue of $299 million. Still, this was almost double over last year’s $101 million for the same time period. The revenues are calculated on a pro forma, consolidated basis accounting for the AltMed acquisition as if completed on January 1, 2021. The average estimate for earnings was $0.24, which Verano easily beat by reporting earnings of $0.33 per share.
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its financial results for the third quarter ending September 30, 2021, with revenues dropping by 16% sequentially to $49.1 million from the second quarter’s $58.7 million. However, it was better than 2020’s third-quarter revenue of $38.1 million. TerrAscend blamed the drop in revenue on temporary yield declines in Pennsylvania related to ongoing construction and expansion efforts. On a positive note, the net income for the third quarter was $62 million versus the second quarter’s net loss of $23 million. This was largely impacted by a non-cash gain on the fair value of warrants of $69 million. The earnings per share on a diluted basis were $0.28 and on a basic basis were $0.33, easily beating the Yahoo Finance average analyst estimate for ($0.01).
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) announced the departure of several top executives and a new financing deal with Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) along with two existing significant shareholders, Pura Vida Investments and Seventh Avenue Investments for $17.3 million. Slang’s CEO Chris Driessen has resigned and Drew McManigle has been appointed interim CEO and Chairman. McManigle also succeeds Peter Miller as Chairman of the Board and while Miller remains a director of the Company. In addition to those changes, Driessen, Chris Donnelly, Kelly Ehler, Keith Stein, and Robert Verdun have all resigned from the Board, effective immediate. Slang also decided to reduce its Oregon operations and will consolidate production to its Colorado facility. Thus, Slang is pivoting its strategic agenda and focusing on its core markets of Colorado and Vermont.
This week Weedmaps (NASDAQ: MAPS) releases “Cannabis in America”, a first-of-its-kind data and insights report on the cannabis marketplace, industry trends, and cultural revelations. This report represents a major step forward in Weedmaps’ intention to become an essential resource of direct-from-consumer data for policy makers, business owners, and investors. The report highlights topics such as the impacts of the Coronavirus pandemic and social justice movement on the cannabis industry as well as a strong trend of cannabis category experimentation, among other topics. The report also highlights the continuing trend of legalization across the country and a corresponding market growth that shows no signs of slowing down.
In Other News
Schwazze, (OTCQX: SHWZ) announced that it has signed definitive documents to acquire MCG, LLC. Emerald Fields owns and operates two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colorado. This acquisition is part of the Company’s continuing retail expansion plan in Colorado bringing the total number of dispensaries including announced acquisitions to 22. Total consideration for the acquisition will be $29 million and will be paid as 60% cash and 40% Schwazze common stock upon closing.