It’s time for your Daily Hit of cannabis financial news for November 22, 2021.
On The Site
Ayr Wellness Inc. (OTCQX: AYRWF) is reporting financial results for the third quarter ending September 30, 2021 with revenue rising 111% to $96.2 million, which was a sequential increase of 5%. Ayr Wellness also reported a net loss of $3.3 million, which was a bit higher than last year’s net income of $620,373. The earnings per share were ($0.06), which beat the Yahoo Finance Average Analyst estimate for earnings of ($0.15). Ayr Wellness delivered a US GAAP operating loss of $8.9 million which included non-cash, one-time expenses, and non-operating adjustments totaling $34.9 million.
Ayr Wellness is also revising its 2022 adjusted EBITDA guidance to a range of $250-300 million, which the company said reflected delays in capital projects. The company is also feeling the pain of a volatile wholesale market and said that if these issues continue into 2022, it could also impact planned guidance. The company is reiterating its target for 2022 revenue of $800 million.
Khiron Life Sciences Corp. (OTCQX: KHRNF) reported its financial results for the quarter ending September 30, 2021 with total revenue of C$3.5 million growing over last year’s revenue of C$1.9 million for the same time period. Khiron also delivered a 50% year-over-year reduction in a net loss of –$3.3 million versus –$6.7 million for the same quarter in 2020.
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) has appointed Michael Serruya as Chairman and Interim CEO, effective immediately. Serruya succeeds outgoing Chairman and CEO Tom Lynch, who held the position since 2020 and oversaw the company’s operational turnaround. Lynch was only just recently named as a permanent CEO in July.
High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) announced it was buying 80% of NuLeaf Naturals, LLC for $31.24 million and will have a three-year option to acquire the remaining 20% of NuLeaf at any time. The total company is valued at $39 million. High Tide said that NuLeaf would be highly accretive noting that NuLeaf generated gross margins of 71% and Adjusted EBITDA1 margins of 25% during the 12 months ended September 30, 2021.
In Other News
Gage Growth Corp. announced it has closed on a senior secured term loan for aggregate gross proceeds of $55 million. Gage intends to use the proceeds (i) to finance the Company’s retail acquisition strategy in Michigan, (ii) to support the Company’s future growth, and (iii) for general working capital purposes. All retail acquisitions are expected to be accretive to Gage and TerrAscend Corp. upon and subject to the completion of its proposed acquisition of Gage.
Numinus Wellness Inc. (TSXV: NUMI), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies announced that its ticker symbol on the OTC Pink market in the United States will change to “NUMIF” (previously “LKYSF”) when the market opens on Monday, November 22, 2021.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced the launch of Bhang edibles in Florida. Bhang’s globally-recognized, award-winning gourmet chocolates are now available exclusively at Trulieve’s 108 Florida dispensaries. “Since launching in Massachusetts in October, Bhang sales and orders through Trulieve have far exceeded our expectations, and we are excited to keep the momentum going in Florida, where we know the demand for our products is already high,” says Jamie L. Pearson, President and CEO of Bhang. “We are currently working on rolling out new SKUs with the Trulieve team in 2022 and look forward to bringing Bhang’s amazing cannabis-infused products to Trulieve customers throughout the U.S.”