Akerna Archives - Green Market Report

StaffJanuary 23, 2023
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4min5930

The Daily Hit is a recap of the top financial news stories for January 20, 2023.

On the Site

Dutchie Sues Akerna Over Access to Pennsylvania Market

Dutchie claims that Akerna, which won the Pennsylvania state contract for its seed-to-sale marijuana inventory tracking program, deliberately erected systemic barriers for competitors like Dutchie so that medical marijuana companies in the state are more likely to use Akerna’s software. Read more here.

Lawsuits Clog the Pipes in Michigan Cannabis Program

For many marijuana operations seeking to open locations in communities across Southeast Michigan, plans are dying on the vine. Dozens of companies remain at loggerheads with city councils over the licensing selection process, and the disputes have been playing out in Michigan’s court system for years. Read more here.

Incoming: Next States to Join the Cannabis Industry?

The U.S. cannabis legalization movement – and thus the industry to which it gave birth – will continue to grow this year and next, almost certainly via a combination of state markets opening, ballot measures forcing cannabis legalization into state law, and state legislatures that decide it’s time to allow medical or recreational marijuana. Read more here.

Agrify to Recalibrate for Positive Cash Flow This Year

Agrify Corp. (Nasdaq: AGFY) said it is trying to “align its resources and growth plan with the current operating environment.” The company said that the measures will help the balance sheet go cash positive by year’s end. Read more here.

Delaware Lawmakers Introduce Longshot Cannabis Legalization Bills

Democratic lawmakers in Delaware have again introduced a pair of bills that would legalize adult-use cannabis. At first blush, the attempt appears likely doomed, primarily because Gov. John Carney has remained steadfastly opposed to legalization. Read more here.

In Other News

Clever Leaves Holdings Inc.

Clever Leaves Holdings Inc. (Nasdaq: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, is winding down all its operations in Portugal as part of its ongoing restructuring initiatives. Under this restructuring plan, the company expects its Portuguese flower cultivation, post-harvest processes, and manufacturing activities to cease in full by the end of the first quarter of 2023. Read more here.

StoneCastle Cannabis Growth Fund

Spartan Fund Management Inc. intends to terminate its StoneCastle Cannabis Growth Fund, effective on or about March 24. Effective today, units of the fund will no longer be available for purchase by new or existing unitholders. Read more here.

Massachusetts

Despite falling prices and increasing competition, marijuana business officials across the state, and particularly in Central Massachusetts, still see the cannabis market as primed for opportunity, with operators having to be smarter about the way they operate their marijuana businesses. Read more here.


StaffJanuary 12, 2023
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7min7890

The Daily Hit is a recap of the top financial news stories for January 12, 2023.

On The Site

Organigram Earnings Beat

Share prices for Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) were up nearly 8% in early Thursday trading after results illustrated the company’s financial discipline, as it trimmed losses and posted revenues that beat expectations for the first quarter ending November 30, 2022. The Canadian cannabis company reported net revenue of $43.3 million, up 43% from $30.4 million in the same time period last year. Read more here.

Cannabis Sentences Drop

A new report issued by the U.S. Sentencing Commission found that the number of federal cannabis possession sentencings dropped substantially in recent years, from 2,172 in the fiscal year 2014 to only 145 offenders in the fiscal year 2021. For the 70.1% of cannabis possession offenders who received a sentence of imprisonment in the last five fiscal years, the average prison sentence imposed was five months. Unfortunately, the report also noted that prior cannabis possession sentences added to an incarcerated person’s criminal history points resulting in longer sentences. Read more here.

Marijuana M&A Moves

There have been a lot of expectations for consolidation in the cannabis industry, so it seems 2023 is already off to a busy start. Today there are three deals to mention from Akerna, LEEF Brands, and Wee-Cig. Read more here.

Cobb Launches Sunburn

Earlier this month, Brady Cobb rolled out some of the first of 11 dispensaries his company Green Sentry Holdings bought from MedMen (OTC: MMNFF) for $63 million in August. All of the stores will be rebranded as Sunburn Cannabis by the end of the first fiscal quarter.   Green Market Report spoke with Cobb at the launch party for the Orlando storefront. Read more here.

In Other News

Lowell Farms Inc. (OTCQX:LOWLF) has retained Canaccord Genuity Corp. to assist in its ongoing review of strategic alternatives. The Board of Directors has formed a strategic alternatives special committee of independent directors to explore, review and evaluate strategic alternatives that may be available to the Company to maximize shareholder value. The Special Committee will evaluate a full range of strategic and financial alternatives, including, but not limited to, one or more of the following: sale, divestiture, acquisition, or merger that may involve all or part of our business or assets, restructuring, recapitalization or any other strategic transaction that may be identified during our strategic review. Other than as described in this news release, the Company has not made any decisions related to strategic alternatives at this time. The Company cautions that there are no assurances that the evaluation of strategic alternatives will result in the approval or completion of any specific transaction or outcome. The Company does not intend to comment further unless and until the Board of Directors approves a specific transaction, concludes its review of strategic alternatives or determines that further disclosure is appropriate or required.

Cannara Biotech Inc. (OTCQB: LOVFF) announced details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. The Company does not intend to undergo a name change in conjunction with the proposed consolidation. Read more here.

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the opening of its Palm Beach Gardens dispensary as well as the expansion of BlueKudu infused chocolate flavors available on Florida retail menus. Beginning on Friday, January 13Florida patients will have access to two new flavors of BlueKudu artisanal infused chocolates: espresso dark chocolate and caramel milk chocolate. Both flavors will be available for preorder online, in-store, and via statewide delivery. Read more here.

 


Debra BorchardtJanuary 12, 2023

7min14930

There have been a lot of expectations for consolidation in the cannabis industry and so it seems 2023 is already off to a busy start. Today there are three deals to mention.

Akerna

Akerna (Nasdaq: KERN) announced it was selling 365 Cannabis also known as The NAV People to 365 Holdco LLC as of an agreement signed on January 11, 2023. Under the terms of the SPA, Akerna received a cash payment of $500,000 and the parties agreed to terminate an earn-out payment due and payable to the principals of 365 Holdco LLC with a deemed value of $2,283,806. According to a company statement, $100,000 of the cash payment is being held back by 365 Holdco in accordance with the terms of the SPA for post-closing accounts payable adjustments and certain indemnification claims through April 30, 2023.

Akerna acquired 365 Cannabis in a deal valued at $17 million in October 2021. At the time Akerna CEO Jessica Billingsley said, “The 365 Cannabis acquisition represents the final piece of the puzzle for connecting cannabis compliance with mainstream ERP offerings to give our clients a choice between all of the most popular financial and operational systems.” The acquisition of 365 Cannabis by Akerna was meant to accelerate the deployment of a financial solution strategy with the addition of Microsoft capabilities, further establishing Akerna as the most robust cannabis-compliant ERP system offering a complete portfolio of mainstream tax and financials.

Despite selling the asset for much less than it cost, Akerna shares were up almost 41% in pre-market trading to lately sell at $1.37. Akerna has been working to improve its balance sheet over the past year. The company said in November that it continues to explore strategic and financial alternatives to strengthen its balance sheet. It also announced in November that shareholders voted in favor of a 20-for-1 reverse stock split which was effectuated immediately thereafter in order to maintain compliance with Nasdaq listing standards.

LEEF Brands

LEEF Brands, Inc. (OTCQB: ICNAF) has completed the acquisition of The Leaf at 73740 LLC in an all-stock transaction as of January 11, 2023. The transaction was previously announced on September 19, 2022. The Leaf is a premium California retailer located in the heart of Palm Desert, California at 73740 El Paseo.

“We are extremely excited to welcome The Leaf into the LEEF Brands family and to commence our corporate strategy of acquiring top performing and best in class retail dispensaries in locations that will serve to augment LEEF product offerings in select markets. The Leaf has built a trusted retail platform in the heart of Palm Desert and we look forward to garnering invaluable customer insights through The Leaf’s platform and begin to integrate those insights throughout our organization to build a lasting relationship with the cannabis consumer. We also look forward to building upon The Leaf’s trusted retail platform and continuing the legacy of R.D Hubbard, in building a best-in-class cannabis retail experience,” said Micah Anderson, CEO of LEEF Brands. “Our acquisition strategy is two-fold: gain operational efficiencies and significantly grow revenue. We will accomplish this by consolidating operating expenses and building the presence of our in-house brands in-store.”

Wee-Cig International

Wee-Cig International Corporation (OTCMarkets: WCIG) signed a Letter of Intent (LOI) to acquire The Jamaican Brew House. The Jamaican Brew House is a producer of an exclusive neutral liquid base made from cannabis that can be used in a range of food and beverage applications. The naturally soluble liquid eliminates the need for emulsification or nanoencapsulation, resulting in a finished product that has consistent CBD/THC content and is free of the taste of cannabis terpenes. JBH is the first company to utilize a botanical process to naturally create a neutral cannabis base and is further differentiated by its innovative products, unique flavor profiles, and customer-first experience, making cannabis products more enjoyable for consumers. The team at JBH includes sales and marketing leaders from the beverages industry, cannabis and food processing, and a corporate advisory team, all of whom will bring their industry knowledge to the company’s operations.

“I am extremely excited to announce we have entered into a Letter of Intent,” comments Efraim Babayov, CFO of Wee-Cig International Corporation. “The expansion of operations of The Jamaican Brew House is expected to be the focus of our company in 2023 and will bring a new and existing operating segment. I believe this acquisition once concluded will provide tremendous value to our company and shareholders.”

Russell Korus, CEO, President, and director of the company, has resigned all positions. Mr. Efraim Babayov has agreed to assume the role of interim CEO and President.

This acquisition will bring a patent-pending technology to Wee-Cig International Corporation, which the company intends to immediately commence marketing. The company said it expects to enter into a definitive agreement with JBH no later than thirty (30) days from entry into this LOI, with closing during the first quarter of fiscal 2023.


StaffNovember 3, 2022
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3min7070

The Daily Hit is a recap of cannabis business news for Nov. 3, 2022.

ON THE SITE

Report: New York State Cannabis Fund Managers Have Conflicts of Interest

New York’s vaunted $200 million fund to support social equity cannabis companies with real estate has an apparent ethics problem: The two individuals appointed to lead the fund are already in business with California-based marijuana company Cookies. Read more here.

Jones Soda Plans Further Expansion Into Cannabis

Following on the success of its limited cannabis product launch, craft soda maker Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) said it plans to continue expanding that product line to “further establish our standing in the cannabis space.” Read more here.

Swedish Attorney to Sue Social, News Media for JuicyFields Scam

Swedish attorney Lars Olofsson said he will file a class action lawsuit against several social and news media platforms that he said helped facilitate the massive Ponzi scheme run by cannabis investment platform JuicyFields. “All of them have allowed JuicyFields to expose themselves on their platforms or magazines, and not just normal accounts but paid ads.” Read more here.

TREES to Acquire Green Man Cannabis for $6.7 Million

Denver-based TREES Corp. (OTCQB: CANN) agreed to acquire GMC LLC, which operates as Green Man Cannabis Dispensary, also located in Denver, for $6.7 million in cash and stock. The purchase brings TREES’ dispensary footprint to eight stores in two states. Read more here.

IN OTHER NEWS

Delaware

The founders of a California cannabis business startup sued an investor group in Delaware Chancery Court on Wednesday, accusing the investors of misrepresenting their experience in developing cannabis production facilities and intentionally withholding cash as a way to seize control. Read more here.

Halloween sales

Software provider Akerna (Nasdaq: KERN) announced that U.S. cannabis shoppers spent a total of $249.6 million on adult-use and medical cannabis products during this year’s Halloween weekend, reflecting year-over-year growth in excess of 6%. Read more here.


StaffOctober 3, 2022
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7min10600

The Daily Hit is a recap of cannabis business news for October 3, 2022.

ON THE SITE

SEC Charges Eight In Cannabis Stock Promotion Scheme

Elegance Brands, Emerald Health Pharmaceutical, and High Times are accused of a stock promotion scheme – The Securities and Exchange Commission announced on September 30 that it had charged eight in a stock promotion scheme that included Emerald Health Pharmaceuticals and High Times Holdings. The SEC says investors purchased $80 million of securities following the promotions. The individuals received payments based on the number of securities sold. Read more here.

Cannabis Banking Bill Passage After Election Season ‘Likely,” Analyst Says

The cannabis industry may not have to remain in regulatory limbo for much longer, but it may take some last-minute horse-trading between aisles, according to Cantor Fitzgerald analyst Pablo Zuanic. After a Sept. 26 trip to D.C. to meet with lawmakers, the Cantor analyst believes that Congressional leaders are poised to pass banking legislation for the cannabis industry in the lame-duck session. Read more here.

Michigan Wants Marijuana Moratorium

Michigan’s largest marijuana operations are plotting an offensive to stop competitors from entering the market in an attempt to buoy falling weed prices in the state. At the request of a lobbyist for some of the state’s largest recreational and medical cannabis growers, the Legislative Service Bureau has drawn up new legislation to prohibit the Michigan Cannabis Regulatory Agency from approving new grower licenses, according to draft legislation obtained by Crain’s. Read more here.

IN OTHER NEWS

Akerna Corp.

Akerna Corp. (Nasdaq: KERN), an enterprise software company and developer of comprehensive technology infrastructures, ecosystems, and compliance engines for the global cannabis industry, today announced that it has entered into a securities purchase agreement with certain institutional investors to purchase 400,000 shares of Series A convertible redeemable preferred stock and 100,000 shares of Series B convertible redeemable preferred stock. Each share of Series A and Series B preferred stock has a purchase price of $9.50, representing an original issue discount of 5% of the $10.00 stated value of each share. Read more here.

Akanda Corp.

International medical cannabis platform company Akanda Corp. (NASDAQ: AKAN) today announced that the company has received a written notification on September 27, 2022, from the Listing Qualifications Department of the Nasdaq Stock Market LLC, notifying the company that it is not in compliance with the minimum bid price requirement set forth under Nasdaq Listing Rule 5550(a)(2). It resulted from the fact that the closing bid price of the company’s common shares, no par value, was below $1.00 per share for a period of 30 consecutive business days. Read more here.

New Leaf Ventures Inc., High Profile Holdings Corp.

New Leaf Ventures Inc. (CSE: NLV) (OTC: NLVVD), announced that it has entered into a non-binding letter of intent to acquire High Profile Holdings Corp., a retail-focused private British Columbia cannabis company. Read more here.

Nabis, StateHouse Holdings

Nabis, a licensed cannabis wholesale platform, today announced an exclusive distribution partnership with California’s StateHouse Holdings. The agreement, which involves StateHouse winding down its distribution arm while pivoting its logistics to Nabis’ technology-centered platform, is an example of the industry’s latest consolidation trend, where self-distributed brands are outsourcing to simplify their business structures, increase efficiencies and prepare for scaling ahead. Read more here.

Heritage Cannabis Holdings Corp., Como Health LLC

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF), is announced that it is commencing operations in the state of Missouri after Como Health LLC, doing business as 3Fifteen Primo Cannabis, recently received an approval to operate from the Missouri Section for Medical Marijuana Regulation. Initial production on vape products, concentrates, and pre-rolls has already commenced in the state. Read more here.

Silo Pharma, Inc.

Silo Pharma, Inc. (Nasdaq: SILO), a developmental stage biopharmaceutical company focused on merging traditional therapeutics with psychedelic research, today announced that it is working with Premier Consulting as its regulatory partner to assist with the preparation of a pre-investigational new drug (IND) package and meeting request with the United States Food and Drug Administration (FDA) for a novel topical formulation of ketamine, designated as SPC-26, for the treatment of fibromyalgia. Read more here.

Tryp Therapeutics, Inc.

Tryp Therapeutics, Inc. (CSE: TRYP) (OTCQB: TRYPF), a clinical-stage biotechnology company focused on developing psilocybin-based compounds for diseases with unmet medical needs, today announced that the World Intellectual Property Organization (WIPO) published their international patent application (PCT/IB2022/052347) covering the intravenous administration of psilocybin and psilocin. The PCT application, titled “Improved Methods For The Use of Psychedelics” expands and strengthens the IP related to the Company’s development of TRP-8803, an IV formulation of psilocin, which will be administered in conjunction with psychotherapy. Read more here.


StaffAugust 11, 2022
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9min2030

The Daily Hit is a recap of cannabis business news for August 11, 2022.

ON THE SITE

Cannabis Consumption on Track to Beat Alcohol

As talks revolving around the federal legalization of cannabis splinter in Congress, the question of whether cannabis can eat beverage alcohol’s margins remains a growing one. In a report, titled, “Is Cannabis a Threat to Alcohol Sales?” BDSA Consumer Insights contends that while the crop is as popular as ever, any real breakthrough of consumer participation in adult-use and medical markets remains stymied in D.C. – casualties of political animosity and procedural acrobatics aimed at slowing progress. Read more here.

Akerna Misses on Revenue, Bookings Down

Akerna Corp. (Nasdaq: KERN) posted less than positive results as it missed expectations — showing that mixed demand and weaker sales are rippling through the sector. The cannabis tech firm released its second-quarter financial report card ending June 30, 2022. Read more here.

Aleafia Watches Revenues Rise in Canada, Looks Across the Pond

Aleafia Health Inc. (OTCQX: ALEAF) delivered positive results on Thursday as it continues to cut costs and find more profit in the Canadian legal market and overseas. The Canadian cannabis company reported its financial results for the three months ending June 30, 2021. Aleafia Health releases its financial report card on a 15-month fiscal year with five quarters versus a standard 12-month year with four quarters. Read more here.

Goodness Growth Beats on Revenue, Sees Sales in Emerging States

Goodness Growth Holdings, Inc. (CSE: GDNS) (OTCQX: GDNSF) posted positive results on Thursday — driven by new retail store sales and new regulatory changes in nascent state markets. The multi-state cannabis company reported financial results for its second quarter ended June 30, 2022. Read more here.

Why Psychedelic Cannabis is a Thing Now

The idea of a cannabis product creating a sort of psychedelic experience is not a new one. There was a prevailing, fictional description back in the early part of the last century—encouraged by the 1936 film “Reefer Madness”—where people feared that was what all cannabis did. It freaked you out. Caused you to do unspeakable things. Run amok. Destroy property. Read more here.

IN OTHER NEWS

Leafly Holdings, Inc.

Leafly Holdings, Inc. (NASDAQ: LFLY), an online cannabis discovery marketplace and resource for cannabis consumers, today announced financial results for its second quarter ended June 30, 2022. “Revenue in the quarter was $12.1 million, up 13.8% over Q2 last year, and up 5.5% over Q1 as we continue to build on the investments we’ve made in the first half of this year.” Read more here.

Clever Leaves Holdings Inc.

Clever Leaves Holdings Inc. (Nasdaq: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, is reporting financial and operating results for the second quarter ended June 30, 2022. All financial information is provided in US dollars unless otherwise indicated. Read more here.

Forian Inc.

Forian Inc. (Nasdaq: FORA), a provider of technology, analytics and data science driven solutions for the healthcare and cannabis industries, today announced results for the quarter ended June 30, 2022. Read more here.

Schwazze

Schwazze, (OTCQX: SHWZ) (NEO: SHWZ), today announced financial results for the second quarter ended June 30, 2022. Revenues of $44.3 million increased 44% compared to $30.7 million in second quarter ended June 30, 2021. Read more here.

CEA Industries Inc.

CEA Industries Inc. (NASDAQ: CEAD, CEADW) a company in controlled environment agriculture (CEA) systems engineering and technologies, is reporting results for the three months ended June 30, 2022. Read more here.

Agra Ventures Ltd.

Agra Ventures Ltd. (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF), a growth-oriented and diversified company focused on the international cannabis industry, announced that its Board of Directors has approved the Company’s issuance of 240,420 common shares at a deemed price of approximately $0.12 per Share as payment of the portion of the quarterly amount of interest due in Shares on a loan entered into in December of 2020. Read more here.

Ayr Wellness Inc.

Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), a vertically integrated U.S. multi-state cannabis operator, announced that the Massachusetts Cannabis Control Commission (CCC) has granted a final license for adult-use cannabis at its Sira Naturals dispensary in Somerville. The company also received approval to open the first phase of its cultivation expansion in Milford, Massachusetts. The CCC voted to approve both measures during its meeting on August 11, 2022. Read more here.

Cookies

Cookies today announced its in Florida’s medical cannabis market with the opening of Cookies Miami, the brand’s 52nd dispensary, in a location convenient to the airport and downtown. The new 3,100 square-foot location will host a unique menu featuring Cookies’ highly sought-after genetics and custom Cookies SF local reserve merchandise. Read more here.

Christina Lake Cannabis Corp.

Christina Lake Cannabis Corp. (CSE: CLC) recapped its second quarter financial results for the six-month period ended May 31, 2022. All amounts are expressed in Canadian dollars unless otherwise noted. Read more here.

Allied Corp.

Allied Corp. (OTCQB: ALID), as a part of the previously announced export approval of 7100kgs of Colombia-grown cannabis, Allied has today shipped 1728kgs to Switzerland. This will be followed by 1500kgs weekly until the 7100kg threshold is met. Read more here.

Pyxus International, Inc.

Pyxus International, Inc. (OTC Pink: PYYX), a global value-added agricultural company, today announced results for its fiscal quarter ended June 30, 2022. Read more here.

Reunion Neuroscience Inc.

Reunion Neuroscience Inc., (formerly, Field Trip Health Ltd.) (TSX: FTRP, Nasdaq: FTRP) and Field Trip Health & Wellness Ltd. announced the closing of the plan of arrangement spinout transaction, including the corporate reorganization effected thereby, effective August 11, 2022. Pursuant to the arrangement, holders of common shares of the company exchanged their company shares for one new common share of the company and received 0.85983356 of a Field Trip H&W common share. Read more here.


Adam JacksonAugust 11, 2022
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3min11210

Akerna Corp. (Nasdaq: KERN) posted less than positive results as it missed expectations — showing that mixed demand and weaker sales are rippling through the sector. The cannabis tech firm released its second-quarter financial report card ending June 30, 2022.

Akerna missed expectations with total revenues of approximately $6.1 million during the period, a 24% gain from $4.9 million for the same quarter last year — missing Yahoo Finance Average analyst estimate for revenues of $7.1 million.

“We have continued to take important steps to grow revenue, reduce costs, and position ourselves for growth in the future,” said CEO Jessica Billingsley. “While client demand has been mixed thus far in 2022, and with softer sales and bookings in particular during the second quarter throughout the sector, we believe we are on pace for a year of solid growth in 2022, compared with last year.”

Software revenue was $5.9 million, up 33% from $4.5 million in the same time last year — with $600,000 worth of software bookings this quarter.

The company saw a gross profit of $4.2 million, or 69.8% of total revenues — up 42% versus $3.0 million in the prior year.

The company also reported a second-quarter 2022 GAAP net loss of $29.6 million — including a $24.1 million impairment of certain long-lived assets — versus a net loss of $22 million sequentially and a loss of $6.1 million last year. However, the company noted that reductions announced in June are expected to generate material cost savings in the second half of 2022.

Diluted loss per share in the fourth quarter was $0.83 cents versus diluted earnings per share of $0.12 cents in the same period last year.

“On the cost side, we’re pleased with our gross margin improvement over last year at 69%, and the expense reduction program across the board that we announced in Q2 should enable more material improvements going forward, beginning with our Q3 results,” Billingsley said.

Despite taking cost-reduction steps, the company said average new business deals decreased by 9% year-over-year.

Adjusted EBITDA was a loss of $2.1 million in the second quarter — down 22% from a loss of $2.3 in the previous quarter — versus a loss of $1.6 in the same period last year.

The company said it had $14.1 million in cash and restricted cash as of July 5, 2022 — following the closing of a $10 million financing via S-1 filed/effective on June 29, 2022. It said it would continue to “pursue strategic alternatives to optimize the capital structure and strengthen the balance sheet.”


Joanne CachaperoJuly 7, 2022
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8min2370

Canna-tech companies were busy over the long 4th of July weekend, analyzing sales data from their various platforms for what was expected to be one of the biggest weeks of the year for cannabis retailers. In Canada, the national holiday Canada Day is celebrated on July 1, with vendors hoping for a holiday spike in sales.

Last week canna-tech company Surfside predicted that the Thursday before the 4th of July, 2022, might be the busiest day of the summer in the U.S. Their analysis also indicated that Fridays in the summer have a magic of their own and consistently saw increased sales compared to other days of the week and Fridays during other times of the year.

Pregaming the 4th

According to data analyzed by canna-tech companies Akerna Corp. and Flowhub, the Friday before the 4th of July turned out to be the big day for retail sales in the U.S. 

Akerna (NASDAQ: KERN) said that according to their data, Friday, July 1,  became the second highest-grossing sales day for 2022, with USD $106.7 million in sales. Data from Akerna’s MJ Analytics platform indicated that compared to $89.6 million in sales on the same day in 2021, this year showed a 19.1 percent sales increase. Monday, July 4th, had lower sales, which was attributed to stores being closed for the holiday. 

Data from Flowhub’s platforms said sales on Friday, July 1, were up 15 percent compared to a regular Friday. The Saturday and Sunday before 4th of July saw a five percent increase each day, while the 4th of July saw a scant two percent increase. Flowhub added that 33 percent of sales on their platforms for the holiday weekend included a discount. 

Delivery and distribution company Lantern said sales were strong before and throughout the weekend, with customers purchasing “flower, then edibles, and then vapes, (with) more customers than usual who bought drinks and pre-rolls.”

SpringBig, a company that develops customer loyalty program technology for cannabis vendors, said their platform saw a slight increase in overall sales, with $16.9 million this year, compared to $16.8 million for the same weekend last year. “The sales and loyalty redemptions numbers are almost identical between last year and this year,” they said.

Canadian Declines

Data company Headset saw declines in sales this year, specifically on Canada Day and July 4th.  

In Canada, on July 1, Headset noted an average decline in sales of 23 percent across all provinces, with Ontario experiencing the biggest drop at 29 percent. Across product categories on Canada Day, there was a decline in sales for typically popular items including “vapor pens (-27%), flower (-25%), oil (-22%), and concentrates (-19%).” The company did not have comment on what may have triggered sales to trend lower or if sales prior to Canada Day were elevated.

In the U.S., July 4th saw a 6.6 percent drop in sales, compared to the four previous Mondays. Across product categories, Headset data indicated, “Not all products fared the same with Pre-Rolls  actually seeing an increase in sales of +6% on July 4th while Topicals and Capsules (traditionally consumed in a more health and wellness setting) saw declines of -17% and -28% respectively.”

Dab Day Outlook

With medical and adult-use cannabis vendors now looking forward to July 10 – aka 7/10 or cannabis concentrate event Dab Day – it remains to be seen if the little-known cannabis holiday will grow in popularity. With looming global recession, worsening inflation and market mayhem in effect, consumers may be looking for bargains or more conservative with spending, though July typically sees higher overall sales than other months of the year.

In comparison, Headset shared insights for Dab Day 2021 with Green Market Report after last year’s holiday. Their data indicated that U.S. sales increased slightly, while 7/10 sales in Canada remained flat:

  • Total Sales Growth: On Dab Day 2021 (7/10/21) total US cannabis sales slightly increased by 3.3% over an average of the previous four Saturdays. Canadian cannabis markets experienced more or less flat sales over the same time frame with a decrease in daily sales of -0.7%.
  • Category Sales Growth: US cannabis customers showed up for ‘Dab Day’ 2021. Concentrate sales increased by 67.4%, and was the category with by far the highest sales growth on that day.  Vapor pens, which we’ve seen also get a little lift from ‘Dab Day’ in the past, increased in sales by 7.1%.  Unlike the US, ‘Dab Day’ was not as successful in Canada; concentrate sales increased by only 5.5%. 
  • Concentrate Segment Growth: In the US on Dab Day 2021, Rosin products had the strongest growth, increasing in sales by 213% over the previous four Saturdays. HTE (+153.4%) was the next most successful segment. 
  • Dab Day Discounts: Dab Day was a fantastic day for American concentrate fans to stock up on products this year. In the US the average discount on concentrates grew by a whopping 60%, rising from 16.0% during the previous four weeks to 25.6% on 7/10/2021.

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