It’s time for your Daily Hit of cannabis financial news for September 14, 2021.
On the Site
High Tide Inc. (NASDAQ: HITI) reported its financial results for the third fiscal quarter of 2021 ending July 31, 2021, as revenue increased by 99% to $48.1 million versus $24.1 million in the same quarter last year. High Tide noted that the financial results included the acquisition of META Growth Corp., Smoke Cartel, Fab Nutrition, and DHC Supply LLC. The net loss for the quarter was $1.7 million versus last year’s net income of $3.8 million for the same time period. Geographically, $38.4 million of revenue was earned in Canada and $9.6 million in the United States. Revenue from the U. S. increased to $9.6 million, versus $5.7 million for the second quarter of 2021, representing a 69% increase sequentially.
Fire & Flower
Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced its financial results for the fiscal second-quarter ending July 31, 2021, as revenue rose 51.4% to $43.3 million over last year’s $28.6 million. Fire & Flower delivered a net income of $19 million versus last year’s net loss of $29 million. Digging into the company’s earnings, retail revenue rose by 36.3% year-over-year to $31.8 million. However, in troubling news, the company noted that same-store sales decreased 14% for forty-eight (48) stores in operation during the comparable period in Q2 2021 due to a surge in newly licensed retail cannabis stores in Ontario, from 665 on May 1, 2021, to 981 at July 31, 2021. Fire & Flower contributed to the surge by opening seven new stores in Canada, bringing total stores to 91. In early June 2021, the Ontario cannabis market opened up from lockdown due to COVID-19, allowing for foot traffic into all Fire & Flower retail stores.
It’s a sign of how difficult it is to be a CBD-only company. This week Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) filed for the Canadian version of bankruptcy. According to Plus’ filing, it has secured court protection from its creditors under the Companies Creditors Arrangement Act or “CCAA”, in order to restructure its business and financial affairs. Plus Products has canceled its Annual General Meeting previously scheduled for September 14, 2021.
WM Technology, Inc., better known as Weedmaps (Nasdaq: MAPS) is buying Sprout, a leading, cloud-based CRM & marketing platform for the cannabis industry. Weedmaps did not disclose the valuation of the deal. Sprout is a cannabis CRM and marketing software platform used by dispensaries and cannabis brands across the United States, Canada, and Puerto Rico. Sprout’s cannabis CRM platform includes an entire suite of omnichannel marketing solutions including customer relationship management, text & email marketing, loyalty, mobile wallets, QR codes, mobile surveys, mobile coupons, advanced customer segmenting, and analytics.
In Other News
The global consortium Gateway Proven Strategies (GPS.Global) announces the acquisition of the Global Cannabis Network Collective (GCNC), an elite network for cannabis executives building and transforming the international cannabis trade. The agreement brings Chris Day and Jillian Reddish, co-founders of GCNC, into ownership and executive positions at GPS. The duo continues to operate the GCNC day-to-day.
“This is a true merging of the minds. We have great respect for GCNC’s achievements joining global companies to expand the international supply chain. This acquisition is a natural fit initiating the next phase for GPS. It accelerates our goal of being the most trusted firm focused on helping companies navigate global markets and supporting ethically-minded entities in expanding the cannabis marketplace,” said GPS Founder and Chairman, Bob Hoban.