It’s time for your Daily Hit of cannabis financial news for January 11, 2021.
On The Site
Governor Andrew Cuomo confidently stated that New York will legalize adult-use marijuana in his state of the state address on Monday.
“We will legalize adult-use recreational cannabis, joining 15 other states who’ve already done so,” Cuomo said in the speech. “This will raise revenue and will end the over-criminalization of this product that has left so many communities of color over-policed and over-incarcerated.”
Ahead of the 38th Annual J.P. Morgan Healthcare Conference on Tuesday, GW Pharmaceuticals plc (Nasdaq: GWPH)released preliminary, unaudited net product sales for the fourth quarter and full-year 2020 and key priorities for 2021.
GW Pharma said it expects total net product sales to be approximately $148 million for the fourth quarter and approximately $526 million for the year ended December 31, 2020. The company said that total net product sales of Epidiolex are expected to be approximately $144 million for the fourth quarter, comprising $129 million in the US and $15 million ex-US. The company reported that Epidiolex’s net product sales were $137 million in the third quarter of 2020.
Ahead of the Virtual ICR Conference 2021, being held from Monday, January 11, hydroponic chain GrowGeneration Corp. (NASDAQ: GRWG) released preliminary record full-year 2020 revenue of $192 million, versus $80 million for 2019, an increase of 140%. The company also said that its fourth-quarter 2020 revenue rose 142% to $61.5 million, versus $25.4 million for the fourth quarter of 2019.
In addition to that, GrowGen reported that same-store sales were up 63% for full-year 2020 versus full-year 2019. Same-store sales were up 58% for the fourth quarter of 2020 versus the fourth quarter of 2019. A total of 14 new and acquired store locations in 2020, increasing locations nationwide to 39.
In Other News
KushCo Holdings, Inc. (OTCQX:KSHB) reported financial results for its fiscal first quarter ended November 30, 2020. Net revenue decreased 23% from the prior year period to $26.8 million, primarily as a result of the Company eliminating the hemp trading division, as well as the Company implementing a comprehensive strategic plan (the “2020 Plan”) to align with the leading multi-state-operators (“MSOs”) and licensed producers (“LPs”) and to right-size the business, which has resulted in tighter credit terms being extended to smaller and less creditworthy customers.
On a GAAP basis, net loss was approximately $4.5 million, compared to approximately $12.5 million in the prior year period. Basic loss per share was $0.03 compared to $0.12 in the prior year period. On a Non-GAAP basis, excluding the impact of certain non-recurring charges and gains, net loss for the quarter was $1.9 million, or $0.01 per share, compared to a net loss of $9.2 million, or $0.09 per basic share, in the prior year period.
Cash was approximately $5.7 million as of November 30, 2020, compared to approximately $10.5 million as of August 31, 2020 and $14.7 million as of November 30, 2019. The sequential decrease in cash was driven by an increase in inventory purchases leading up to the Chinese New Year and to minimize COVID-19 and holiday shipping-related delays.
Nick Kovacevich, KushCo’s Co-founder, Chairman and Chief Executive Officer, commented: “Fiscal Q1 2021 built on the strong momentum we achieved in the previous quarter with modest revenue growth and positive adjusted EBITDA for the second quarter in a row. We were expecting more significant growth during the quarter, but like many other importers of goods, we were faced with temporary, yet unexpected and uncontrollable, shipping delays due to record-breaking shipments to U.S. ports around the holiday season, which were exacerbated by new COVID-19 restrictions. As a result, some of the revenue that we were expecting to realize in Q1 was pushed into Q2, especially in the month of December where we had one of our strongest months in company history with $14.7 million in revenue.
Champignon Brands Inc. (CSE: SHRM) (OTCQB: SHRMF), Chairman and CEO Roger McIntyre today announced the Company’s appointment of Stephen R. Brooks as its new Chief Financial Officer and Peter Rizakos as the firm’s new General Counsel.
Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF) an emerging biopharma and life sciences company committed to the research, development, and acceptance of alternative nature-sourced medicine for mainstream use, announced that it has appointed veteran corporate finance and capital markets professional, Gordon Neal to the Board of Directors. Additionally, Dean Ditto has joined the Company as Chief Financial Officer.