Cyber Monday may have become the biggest shopping day for traditional retail, but bricks continue to rule the day for the cannabis industry. Cannabis software company Baker tallied up its sales results for the past holiday weekend and Black Friday was the big winner. Sales did rise for Cyber Monday, but it came in third place when compared to Wednesday and Friday.
In politics, as our lawmakers look to pass a tax bill there are 2 amendments that affect the cannabis industry regarding the 280e tax exemption for businesses. If these go through, it will be a huge boost to the cannabis companies that currently can’t take these exemptions.
Maricann Group Inc. (MRRCF) reported its earnings and yet it didn’t say anything in the press release about the revenues from the quarter and instead said that “results were consistent with expectations” and revenue was expected to increase in 2018. Sure enough, revenue fell for the three months ending September 30 to C$721,035 from C$892,081. Gross profits also tumbled to C$225,207 from C$477,490. Net losses soared to C$5,379,931 from last year’s C$1,119,537. Outstanding shares ballooned as well to 68 million from last year’s 36 million.
California-based Kush Bottles, Inc. (KSHB), reported its financial results for its fiscal year ended August 31, 2017 with revenues climbing 129% year over year to $18.8 million. Net income came in at $69,000 down from 2016’s $72,000. Gross profits were $6.2 million, a nice jump over last year’s $2.6 million. CEO Nick Kovacevich noted that the company’s strong fourth quarter results were driven by the company’s acquisition of CMP Wellness that occurred in May of 2017. This enabled the company to take advantage of the explosive vape market.
Toronto-based Cronos Group Inc. (PRMCF) reported financial results for the third quarter ended September 30, 2017. The company delivered $1.3 million in revenue for an increase of 104% quarter-over-quarter and an increase of 962% over last year’s $123,647. Net income was reported at $1.0 million, which was a nice jump over last year’s loss of $227,607. The diluted earnings per share were one cent, which was also higher than last year’s zero earnings per share.
Toronto-based Golden Leaf Holdings Ltd. (GLDFF) delivered its earnings for the third quarter ending September 30 with revenues rising, but losses rising as well. Net revenue was $3.1 million versus last year’s $2.4 million for the same time period. The quarter included $240,000 in non-recurring royalty revenue. The jump in revenue was largely attributed to the acquisition of Chalice Farms this past July, which offset supply problems with other key products.
Emblem Corp. (EMMBF) delivered its third quarter results with revenues increased to $592,943 versus last year’s $29,250. The company sold 50.8 kilograms and realized revenue per gram of $8.63. Gross profit for the third quarter of 2017 was $49,879 compared to a gross profit of $40,306 for the same period in 2016. The company said profits were limited as costs rose to ramp up production in advance of the completion of three grow rooms.
ABCann (ABCCF) also reported third quarter results with reported revenues of C$177K dropping from last years C$188k, and a net loss of C$3.7 million, which was much higher than last year’s loss of C$1.1 million. . As at September 30, 2017, the Company had $43.4 million in cash, cash equivalents, and marketable securities.
Other Financial News
Canadian-based Organigram Holdings Inc. (OGRMF) announced a C$50 million deal with Eight Capital.
Canadian-based Cannabis Growth Opportunity Corporation filed a prospectus for an initial public offering the companies it may (IPO) valued at C$75 million . The shares will be priced at $2.50.