It’s time for your Daily Hit of cannabis financial news for November 24, 2021.
On The Site
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) released financial results for the third quarter ending September 30, 2021, with revenue rising to $10.1 million versus last year’s $7.9 million for the same time period. Slang said that the acquisition of High-Fidelity, Inc. resulted in approximately $1.1 million in revenue during the quarter. the net loss was trimmed slightly to $5.6 million versus last year’s net loss of $5.9 million. Slang’s new interim CEO Drew McManigle said, “With the significant support from our respected strategic and investor partners, I look forward to utilizing my extensive experience in repositioning corporate operations to assist in the transformation of the SLANG operating platform. This transformation will be based on a refined strategy to appropriately position the Company to achieve future sustainable revenue growth.” McManigle was handed the reins in a major shift of executive management at the company just a few weeks ago. The move saw the exodus of CEO Chris Driessen and numerous board members.
Seelos Therapeutics, Inc. (Nasdaq: SEEL) is buying the worldwide license (excluding China, Taiwan, Macau and Hong Kong) from iX Biopharma Ltd (iX Biopharma) for Wafermine, a sublingual racemic ketamine wafer, and a worldwide license for other sublingual ketamine wafers, delivered using a proprietary fast-dissolving wafer-based drug delivery platform technology known as WaferiX. Seelos said it is paying roughly $9 million in cash and stocks. Seelos said it plans to evaluate the sublingual ketamine, now named SLS-003, in pain indications such as chronic neuropathic pain and Complex Regional Pain Syndrome (CRPS) and in additional psychiatric disorders, including post-traumatic stress disorder (PTSD). The company also said in a statement that the Food and Drug Administration (FDA) has granted Wafermine Orphan Drug designation for the treatment of CRPS.
As we put 2021 in the rearview mirror, Green Market Report is looking ahead to a bright new year. We asked leaders in the industry for their predictions for the cannabis industry in 2022. Emily Paxhia, co-founder and managing director of Poseidon Investment Management said, “2022 is going to be the start of the longest bull market this industry will have seen to date. This industry has gone through multiple phases, as an emerging industry. The business case for cannabis is now being proven to be strong growth + EBITDA and there is a lot of upsides to unlock with new markets opening on the east coast.” She also believes 2022 is going to be the year that cannabis tech finally gets the attention it deserves. She thinks the market will see more capital invested into tech platforms. Paxhia added, “Further, we are excited to see more innovation in technology around the cultivation, processing, distribution, and retailing of cannabis, not to mention the technology around human capital, as this industry will continue to be a growing and large employer in the US. The cannabis market is finally getting the TAM (Total Addressable Market) recognition it deserves from outside investors.”
Cannabis has finally earned a seat at the table in America. According to a new survey, one in two Green Wednesday shoppers intend to gift cannabis products to a friend or family member this year, while 77% will consume cannabis with others on Thanksgiving. In fact, data suggests American cannabis consumers have become increasingly open about their cannabis habits, with 40% planning on consuming openly with family and friends this season, and 37% planning to incorporate cannabis into their annual Thanksgiving meal. One thing is clear: this Thanksgiving, cannabis is a family affair.
Green Wednesday continues to be one of the strongest retail days for cannabis dispensaries. In 2020, Springbig reported that Green Wednesday sales across 1,500 retailers, were up 79.43% from 2019. There are several theories as to why so many people flock to dispensaries before Thanksgiving to stock up. Here are a few:
- Family gatherings can sometimes be very stressful and cannabis can help keep you calm. Uncle Joe insists on talking politics? No problem, just slip an edible in your mouth and you’re good to go. Aunt Sophie wants to know about your love life? Do divorced parents want to complain about each other? Are cousins bragging about their success? You name it – there can be many stressful moments and cannabis is there to help.
- You’re headed back to your hometown and expect to see old friends. How awesome is it to roll into town and be the one to hand out mini prerolls, so COVID safe and still social? You may not want to go get drunk at a bar, but you can relieve the good times again as you party with your friends.
- Have you ever had to go to two Thanksgiving meals in one day? The early eaters at one family and the late eaters at another? How do you stuff all that food into your mouth and be polite? You can’t say no to Grandma’s pies or she’ll be insulted. Ahhhh, this is when the munchies shine. This is their day! Bring on the munchies. You won’t even notice you’re miserably stuffed.
In Other News
Stem Holdings, Inc. d/b/a Driven by Stem (OTCQX: STMH) (CSE: STEM) announced that Salvatore Villanueva, III will depart as President of the Company effective December 19, 2021. The Company does not intend to replace Mr. Villanueva at this time