It’s time for your Daily Hit of cannabis financial news for November 17, 2021.
On The Site
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its financial results for the third quarter ending September 30, 2021 with total revenue rising 13.1 sequentially to $54.0 million, and an increase of 116.7% over last year. Yahoo Finance’s average analyst estimate was for revenues of $57 million causing Jushi to miss the estimates. The company also revised its guidance downward. Jushi reported a net income of $38.2 million, an increase of $33.5 million sequentially, and $68.2 million year-over-year. The earnings were $0.22 per basic share and a net loss of $0.08 per diluted share, compared to net income of $4.8 million, or $0.03 per basic share and a net loss of $0.08 per diluted share in the second quarter. The estimate was for earnings of $(0.02). The adjusted EBITDA of $6.4 million was an increase of 38.5% sequentially and 124.9% year-over-year.
4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) announced its financial results for the third quarter ended September 30, 2021 with total revenues of $25.9 million, topping last year’s $12 million for the same time period for a gain of 70%. However, the company experienced a 4% sequential drop in sales from the second quarter. The company blamed the decline in sales to permitting delays during the local review process for both the Commerce, CA facility and Brookline, MA dispensary. The revenue was also short of the Yahoo Finance average analyst estimate for revenue of $27 million. The net loss for the quarter was $4.5 million, which was slightly higher than last year’s $4 million.
Mycotopia Therapies Inc. (OTC Pink: TPIA) has entered into an agreement to form a 50/50 joint venture with Agile Pharmaceutical Solutions to develop novel oral dosage forms of psilocybin in the form of a psychedelic sublingual tablet. Mycotopia said that the two companies plan to get a Health Canada License for psychedelics to obtain and test psychedelic raw material, for the purpose of creating the psilocybin-based, sublingual tablet to take to market.
The ongoing trial of MedMen (OTC: MMNFF) ex-CFO James Parker is beginning to hear the other side of the story. So far the trial has delivered Parker’s version of events. He claims that the founders were spending corporate money as if it was their own and creating a toxic work environment. He also alleges that MedMen paid outsiders to buy the company’s stock in an effort to move the share prices higher. This week former president and co-founder Andrew Modlin took the stand. MedMen’spostion has always been that Parker breached his employment contract, not that he had been unfairly terminated. According to Law360, Modlin testified that although he was increasingly concerned about the performance of then-CFO James Parker in the months after the company debuted on the Canadian Securities Exchange in 2018, he neither fired nor demoted him. Parker claims that the MedMen executives were preparing to fire him because he believed an executive search firm had been hired behind his back.
In Other News
Novamind Inc. (CSE:NM)(OTCQB:NVMDF) announced that it has signed a Letter of Intent to acquire Foundations for Change, an Arizona-based company with two outpatient mental health clinics specialized in ketamine-assisted psychotherapy. The Arizona Acquisition represents Novamind’s first clinics outside the state of Utah, and the first announcement from a pipeline of accretive transactions that will expand the Company’s network of clinics in the U.S. and globally.
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced the pending release of the last contractual trading restrictions remaining on 35% of the shares it issued in its reverse takeover transaction completed on February 11, 2021. As a result, none of the company’s shares issued in the RTO will be subject to these trading restrictions, and all of the Company’s subordinate voting shares issued in the RTO will be eligible to trade on the Canadian Securities Exchange and the OTCQX market, subject to applicable securities laws and stock exchange rules.