This week, Massachusetts said that recreational sales could begin on May 25th or Memorial Day. Sales can only be curbside and customers won’t be allowed in the stores. Great news for the Massachusetts cannabis companies.
Green Growth Brands filed for insolvency this week. The company was already forced to close its chain of CBDstores called Seventh Sense in March. Then the company faced huge debt payments and defaulted on its debentures this month. Now it has essentially had to throw in the towel. It’s one dispensary asset The+Source in Nevada remains open.
We have a few big earnings to hit upon this week,
Trulieve Cannabis Corp. (OTCQX: TCNNF) reported that its revenue increased 21% sequentially to $96 million in its first quarter of 2020 ending March 31, 2020, versus $79 million in the fourth quarter. This beat the Yahoo! Finance average estimate for revenue of $90 million for the quarter. Revenue increased 116% over last year’s first-quarter revenue of $44 million. Trulieve also delivered a net income of $14 million in the first quarter.
Curaleaf reported revenue increased by 174% to $96.5 million for the first quarter while the net loss for the first quarter was $15.5 million, The net losses declined from the fourth quarter which was $26 million.
Harvest Health & Recreation Inc reported total revenue in the first quarter of $45.0 million, an increase of 134% from $19.2 million in the first quarter of 2019 The net loss was $20.0 million
Acreage Holdings said it expects to record a pre-tax, non-cash charge of $80 to $100 million in the quarter ending March 31, 2020. Its also selling Acreage North Dakota, where it operated one medical marijuana dispensary and selling undeveloped real estate on the island of Nantucket in Massachusetts.
HEXO stock plunged this week after the company announced a $50 million offering. The units were priced at 90 cents a share, but they quickly sold off to 73 cents a share in Canadian dollars.
Aurora Cannabis Inc. (NYSE: ACB) is buying U.S. CBD company Reliva, LLC for approximately US$40 million of Aurora common shares.