It’s time for your Daily Hit of cannabis financial news for September 30, 2021.
On The Site
High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) just hit a milestone when the Canadian cannabis retailer announced that it has opened over 100 stores. High Tide said that its total number of branded retail locations across Canada numbered 101, and the company has 30 stores in Ontario. In addition to those stats, High Tide also noted that it has launched eight organically-built stores in the month of September alone. While this is a laudable event, could Ontario be reaching dispensary saturation and is that a bad thing for cannabis companies? The Canadian market is beginning to see the effects of market saturation in some areas. Both Fire & Flower (OTC: FFLWF) and High Tide recently mentioned in their earnings announcements that sales were affected by this. Fire & Flower said that its same-store sales decreased 14% for forty-eight (48) stores in operation during the second quarter of 2021 due to a surge in newly licensed retail cannabis stores in Ontario. According to the company, in just three months the number of licenses went from 665 at May 1, 2021 to 981 at July 31, 2021. The company’s sales also dropped despite the reopening of stores to foot traffic due to the pandemic. Fire & Flower also pointed out that competitors had engaged in deep discount pricing.
You may have heard of “functional fitness” (which trains the body for activities performed in daily life) and “functional nutrition” (a philosophy that promotes the use of food as medicine to prevent and alleviate diet and lifestyle-related diseases), but have you heard of “functional mushrooms”? If you’ve been down the aisle of a Whole Foods in the last few years, you undoubtedly have, but in case you haven’t, functional mushrooms include strains like Lion’s Mane, Cordyceps, and Chaga that aren’t only a food source but have beneficial properties that can positively impact health. These multitasking mushrooms have been showing up everywhere from coffee to candy bars, and while initially, they were giving cannabis a run for its money as the latest wellness trend, many companies are now blending THC or CBD and medicinal mushrooms to create “super” supplements, edibles, and other products to tempt the health-conscious consumer.
In Other News
The Marijuana Opportunity Reinvestment & Expungement (MORE) Act was passed by the House Judiciary Committee, the first vote since the bill was reintroduced in May. The MORE Act was originally approved in a full House vote in December 2020, becoming the first bill to end federal prohibition to pass in either chamber. A companion bill was introduced in the Senate by now-Vice President Kamala Harris, but did not receive a hearing before the end of the session. The bill was approved 26-15, with 24 Democrats joined by two Republicans voting yes and 15 Republicans voting no. It will still need to get a full vote in the House before moving to the Senate where it is unlikely to receive a vote.
Zelira Therapeutics Ltd (OTCQB: ZLDAF) is expanding its global footprint with its entry into Germany, one of the world’s largest and fastest-growing markets for cannabinoid-based medicines. The company just announced a five-year exclusive distribution agreement with IM Cannabis Corp. (IMC)’s German-based subsidiary Adjupharm, an EU GMP-certified medical cannabis distributor. IMC (CSE: IMCC)(NASDAQ: IMCC) is a multi-country operator (MCO) in the medical and adult-use recreational cannabis sector with operations in Canada, Israel and Germany.
Glass House Brands Inc.(OTCQX: GLASF and GHBWF) announced that Mark Vendetti has been appointed Chief Financial Officer of Glass House. Mr. Vendetti will commence his new role with the company on October 1, 2021. Mr. Vendetti will be replacing Derrek Higgins, whose last day with Glass House will be September 30, 2021.