It’s time for your Daily Hit of cannabis financial news for November 23, 2021.
On The Site
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) has won its case that was brought by former CFO James Parker. In 2019, Parker filed a lawsuit against MedMen, alleging wrongful termination, breach of contract, and retaliation, seeking in excess of $20 million in damages. The case was notable for its scandalous accusations including the creation of a toxic workplace and suggestions that the company paid a third party to buy the stock and push up share prices.
Organigram Holdings Inc. (NASDAQ: OGI) reported its results for the fiscal fourth-quarter ending August 31, 2021, with revenue increasing 22% to $24.9 million, from $20.4 million in the same time period for 2020. Organigram said the increase was primarily due to an increase in adult-use recreational revenue, partly offset by the decrease in international revenue, medical revenue, wholesale revenue to other Licensed Producers, and a lower average net selling price. The stock was jumping over 10% in early trading on the results and was lately selling at $2.06. The company also reported a net loss of $26.0 million, which was an improvement over last year’s net loss of $38.6 million. the company said this was largely due to the higher gross margin in the quarter which was partially offset by the impairment charges during the current quarter. The quarter also reported that the negative adjusted EBITDA decreased 48% from $9.2 million in the third fiscal quarter to $4.8 million. This improvement was primarily attributed to the increase in revenues and the improved adjusted gross margin.
Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) also known as Audacious, has delivered its financials and management discussion and analysis for its fiscal second quarter of fiscal 2022 (the year ending March 31, 2022), the period ending September 30, 2021. Australis reported total revenues increased 2,068% year over year to $2.3 million and increased 31% from $1.73 million in the first fiscal quarter of 2021. The company reported a net loss of $(4.32) million, or $(0.02) per share, compared to a net loss of $(5.82) million, or $(0.03) per share, in the second quarter of 2021, and a net loss of $(9.67) million, or $(0.04) per share in the first quarter of 2022. The prior year’s net loss was higher due to settlement costs and the net loss for the first fiscal quarter of 2022 was higher due to a decline in investment values.
Psychedelic therapy company Cybin Inc. (NEO:CYBN) (NYSE: CYBN) has been awarded a grant for the first psychedelic treatment clinic at Lenox Hill Hospital, part of Northwell Health, to serve marginalized and underserved communities on the Upper East Side of Manhattan, New York. The program has hopes to become one of the first hospital-based clinical sites to offer psychedelic medicine in the United States.
In Other News
Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) announced its financial results for the quarter ending September 30, 2021. Revenues were $33.0 million as compared to $22.8 million, an increase of 45%. The net loss before taxes of $4.6 million as compared to a net profit of $3.4 million. Larry Scheffler, Co-CEO of Planet 13 said, “Along with our dispensary operations, our product brands are performing well with Trendi vapes seeing 110% dollar sales growth year over year according to Headset. It now makes up about ~5% of Vape sales and 7% of Concentrate sales and HaHa edibles was ~14% of edibles sales in the State.”
“Along with stellar performance from our Nevada operations, this was a massive quarter towards securing the future growth of Planet 13. We opened our California store, and while initial sales growth has been slower due to headwinds from COVID and untimely road construction around the SuperStore, customer reviews have been outstanding. We expect growth as those headwinds abate,” commented Bob Groesbeck, Co-CEO of Planet 13. “We also won a dispensary license for the Chicago area giving us a clear path for our next SuperStore, and acquired a Florida license that will allow us to vertically integrate and open multiple neighborhood and SuperStores in the state.”