Cannabis technology company Akerna (Nasdaq: KERN) reported that cannabis sales over the Labor Day weekend exceeded a quarter billion dollars, however, the increase was lower than previous years. The lack of big holiday sales could be attributed to bigger sales in August meaning consumers aren’t waiting for the holiday to make purchases.
We have a few earnings to review this week.
Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) reported that revenue fell from $25 million in the 2019 second quarter to $21.6 million for the 2020 second quarter. The company missed the average estimate for revenues, which was $25.9 million according to Yahoo Finance. The company also missed the earnings estimate of -$0.04 with reported earnings of -$0.13. The company also delivered a net loss of $14 million for the quarter versus last year’s net income of $2.2 million.
Fire & Flower Holdings Corp. (OTCQX: FFLWF) delivered second quarter revenue of $28.6 million. Still, the company reported a net comprehensive loss of $29.1 million, or net loss per share, and on a fully diluted basis of $0.18.
High Tide Inc. (OTCQB: HITIF) reported revenue for its third quarter of fiscal 2020 of $23.20 million an increase of 180% from $8.29 million for the same quarter last year. High Tide also delivered income from operations of $2.11 million versus a loss from operations of $4.04 million for the same period of 2019.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) is buying Pennsylvania’s PurePenn and Pioneer Leasing & Consulting as well as dispensary operator Keystone Relief Centers which is doing business as Solevo Wellness. Trulieve has agreed to acquire PurePenn for an upfront payment of $46 million.
Arizona-based Fibonacci Brands is buying the cannabis company Darwin Brands from Harvest Health and Recreation (OTC:HRVSF) for an undisclosed amount. Darwin is part of the Arizona Natural Selections. In February 2020, Harvest acquired AZ Natural Selections in a deal valued at approximately $30 million
PharmHouse is costing Canopy Rivers Inc. (OTC: CNPOF) millions as it works to keep it afloat after the company missed its cash flow goals. The problems have led to a deterioration among the partners causing counterclaims of bad behavior. Canopy Rivers said it will act as a debtor-in-possession lender for PharmHouse and will provide up to $7.2 million in DIP financing. This will allow PharmHouse to continue its day-to-day operations throughout the anticipated restructuring. Canopy Rivers owns 49% in the joint venture of PharmHouse, which was formed in May 2018.
And finally, MedMen was able to borrow another $20 million, but the company is paying 18% interest. And you thought your credit card balance was bad.