Word came out of Albany late Wednesday afternoon that legislators had reached an agreement on the language of legislation regarding the legalization of adult-use cannabis. There are two competing bills for the law – the Cannabis Regulation and Taxation Act (CRTA) and the Marijuana Regulation and Taxation Act (MRTA). The word is that the bill that was agreed upon included the contentious home grow issue, delivery, social consumption, and the removal of the license auction. However, there is no confirmation on the actual language that was included which could receive a vote next week. It is expected that it will take at least one year before sales can take place.
Earnings season is underway as some of the biggest industry reported fourth quarter and full year numbers.
Trulieve Cannabis Corp. (OTCQX: TCNNF) announced its revenue grew 111% to $168.4 million for the fourth quarter which beat the average analyst estimate for $162 million. For the full year, Trulieve delivered revenue of $521.5 million.
Cresco Labs Inc. (OTCQX: CRLBF) delivered Revenue for the fourth quarter of $162.3 million and reported a net loss for the fourth quarter of $23 million. The company beat the Yahoo Finance analyst estimate for revenue of $161 million. For the full year, Cresco delivered revenue of $476.3 million a 271% increase over 2019’s revenue of $128 million.
TerrAscend Corp. (OTCQX: TRSSF) reported Net sales increased 152% to $65 million in the fourth quarter of 2020 The net loss for the fourth quarter of 2020 was $109 million, largely impacted by a derivative liability of $124 million. For the full year of 2020, the company reported net sales of $198.3 million.
Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) looks like it has been able to regain some ground after the pandemic caused the company a lot of disruption as retailers were closed for some time. The company reported revenue increased 17.9% to $26.9 million in the fourth quarter of 2020. For the full year, total net revenue increased to $95.2 million vs. $94.6 million in 2019.
Aleafia Health Inc. (OTC: ALEAF) reported net revenue of $15.4 million in the fourth quarter versus $6 million for the same time period in 2019. The net loss though was a whopping $217.3 million versus last year’s net loss of $9.8 million. Aleafia wrote-down $176.0 million of goodwill associated with the acquisition of Emblem Corp., and $1.4 million of goodwill associated with the acquisition of Canabo Medical Corp.
And finally, it was reported that a Manhattan jury found two businessmen guilty of assisting in an elaborate plan to let California weed company Eaze process transactions without getting flagged by banks. Last year, the businessmen Hamid Akhavan, 42, and Ruben Weigand, 38, were each charged by the Manhattan U.S. attorney’s office for conspiring to defraud merchant banks of property rights by tricking them into processing more than $150 million of transactions on behalf of San Francisco-based Eaze. The former CEO of Eaze pleaded guilty prior to the trial, leading many to believe he cooperated with authorities.