Aphria Archives - Green Market Report

Debra BorchardtDebra BorchardtJuly 29, 2020
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5min3200

Aphria Inc. (NASDAQ: APHA) stock was falling almost 10% in early trading after the company reported its financial results for the fourth quarter and fiscal year ended May 31, 2020, in Canadian dollars. Aphria delivered net revenue of $152.2 million in the fourth quarter, an increase of 18% from the prior-year quarter, and an increase of 5% from the prior quarter. This number also beat the analyst estimate of $149 million.

However, the stock was getting beaten up after the company also reported a $98.8 million net loss for the fourth quarter, which was much worse than last year’s net income of $15.7 million. The losses were attributed to a non-cash impairment of $64.0 million in the quarter, which was due to “measures taken with respect to certain of the Company’s international businesses in response to the COVID-19 pandemic.”

For the full year, Aphria reported net revenue of $543 million, with a net loss of $84 million. The 2020 revenue increased by 129% from $237.1 million in 2019.

“Our strong finish to fiscal year 2020 demonstrates that this was a transformative year for Aphria, as our net revenue increased 129% from fiscal year 2019,” said Irwin D. Simon, Chairman, and Chief Executive Officer.  “We continue to focus on capturing strong market share in Canada by executing upon our strategic plan and positioning Aphria as a leader in category innovation. With exciting new product categories and line extensions launching in the very near future, we believe our award-winning adult-use portfolio remains unmatched in the industry.”

COVID Costs

Aphria said that it paused its previously announced extraction and processing expansions, including the on-going work completing the extraction center, up to and including its licensing as a result of the pandemic. The company said that it maintains sufficient extraction capacity to meet its current and near-term demand in Canada and abroad.

The company also noted that it sourced biological controls, product packaging, and vape componentry from outside of North America, but then stated that the equipment was readily available. It also stated that’s didn’t anticipate any difficulty in getting product packaging or equipment. The company also found alternative supply sources for essential supplies.

Still, the impairment losses that didn’t really seem related to COVID were as follows (in thousands):

• $4,800 on CannInvest Africa Ltd. and Verve Dynamics Incorporated (Pty) Ltd., the Company used a discount rate of 38.5%;
• $5,000 on ABP, S.A., the Company used a discount rate of 23.3%;
• $19,171 on Marigold Projects Jamaica Limited (“Marigold”), the Company used a discount rate of 38.5%; and
• $35,000 on ColCanna S.A.S., the Company used a discount rate of 40.0%

Medical Prices Rise, Adult Prices Fall

Aphria reported that the average retail selling price of medical cannabis (exclusive of wholesale), before excise tax, increased to $6.63 per gram in the quarter, compared to $6.41 in the prior quarter. The average selling price of adult-use cannabis, before excise tax, decreased to $5.23 per gram in the quarter, compared to $5.47 per gram in the prior quarter, primarily as a result of a change in sales mix and price reductions in key markets to solidify market share. Gross revenue for adult-use cannabis of $150.4 million in all of 2020.

The adjusted cannabis gross profit for the fourth quarter was $28.1 million, with an adjusted cannabis gross margin of 52.9%, compared to $23.7 million and 42.7% in the prior quarter. The increase in adjusted cannabis gross margin was primarily due to the increase in the higher-margin adult-use sales to wholesale transaction ratio in the current quarter, and higher usage of the lower-cost cannabis produced by Aphria versus purchased cannabis.

Adjusted distribution gross profit for the fourth quarter was $11.9 million, with an adjusted distribution gross margin of 12.1%, compared to $11.4 million and 12.9% in the prior quarter. The decrease in adjusted distribution gross margin was primarily related to the impacts of COVID-19 on sales mix.


Debra BorchardtDebra BorchardtJune 25, 2020
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4min3690

Aleafia Health Inc. (OTC: ALEAF) and its subsidiary Emblem Cannabis Corporation and Aphria Inc. (NASDAQ:APHA)have said that the parties entered into a settlement agreement on June 25, 2020, to resolve their outstanding dispute in respect of the termination of the parties’ wholesale cannabis supply agreement.

Under the terms of the Settlement Agreement Emblem will get C$29.1 million which will consist of a C$15.5 million cash payment, the issuance of common shares of Aphria with an aggregate market value of C$10 million that will be freely tradeable and transferable in Canada and waiver of claimed receivables. The parties have also agreed to a mutual release of all existing and potential claims relating to the Supply Agreement, and to the dismissal of the arbitration proceedings that had previously been commenced.

“The settlement agreement is fair and satisfactory to both parties and allows Aleafia Health to move forward with a significantly strengthened balance sheet. With a substantial injection of value into our business, we can focus on our continued growth,” said Aleafia Health CEO Geoff Benic.

This settlement ends any and all potential claims and litigation against and between Aphria, Emblem, and Aleafia Health relating to the Supply Agreement.

A Busted Deal

The original problem stemmed from a deal that was agreed to on September 11, 2018, which said that Aphria would provide up to 175,000 kg equivalents of cannabis products over an initial five-year term, commencing May 1, 2019. Aleafia terminated its deal to buy cannabis from Aphria saying the company failed to meet its supply obligations.

“Following Aphria’s failure to meet its supply obligations under the Supply Agreement, Emblem has exercised its contractual right to terminate the Supply Agreement in accordance with its terms. The termination of the Supply Agreement by Emblem was made without prejudice to its rights accrued to the date of termination (including its rights to be refunded the unused balance of its deposit) and its rights to seek damages as a result of Aphria’s default and termination thereunder.”

At the time, Aphria released a statement saying, “We are disappointed that Aleafia has chosen to terminate its Agreement with Aphria Inc. The Company had every intention of fulfilling its obligations under the Agreement. As a large shareholder of Aleafia, Aphria made good faith efforts to ensure the continuation of the Agreement understanding it was in the best interest of all parties involved. However, the termination of this legacy Agreement frees up significant supply allowing the Company to service its brands that are in high-demand across the country.”


Debra BorchardtDebra BorchardtMay 26, 2020
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3min7192

Aphria Inc. NYSE: APHA has decided to throw in the towel on its listing at the New York Stock Exchange and is moving to NASDAQ effective Friday, June 5, 2020, after the market close. Aphria said that shareholders  can expect the common stock will begin trading as a Nasdaq-listed security at market open on Monday, June 8, 2020 and will continue to be listed under the ticker symbol “APHA.” This transition will not impact the company’s primary listing on the Toronto Stock Exchange (TSX: APHA).

It is cheaper for companies to list at NASDAQ than it is to list at the NYSE. The amenities offered to companies that list at NYSE don’t apply to cannabis companies. For example, a cannabis company can list at NYSE, but is not allowed to ring the opening or closing bells. Cannabis companies are treated like second class citizens at the NYSE, but their exchange listing money seems to be considered of equal value.

“We are excited to have Nasdaq as our new exchange partner. This move is a reflection of our ongoing commitment to find cost-effective ways of operating so we can continue to deliver long-term value to shareholders,” said Irwin D. Simon, Chief Executive Officer. “Additionally, as a purpose-driven company, we believe Nasdaq will be a good fit for Aphria, particularly given our focus on, and the progress we have made, integrating ESG practices across our business.”

ESG stands for environmental, social and governance and is typically considered to be a measurement of the sustainability and societal impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk).

“With over 76% of Nasdaq-listed companies reporting on at least one ESG metric, we welcome Aphria to the Nasdaq family as they strive to integrate ESG best practices across their business and add strategic value to all of their stakeholders,” said Bob McCooey, Global Head of Capital Markets, Nasdaq.

The NASDAQ has been a bit more welcoming of cannabis companies, although only slightly. For example, the Green Market Report is often declined on-site interview requests because it is a cannabis-only news outlet despite having a long-standing relationship with the NASDAQ.


Debra BorchardtDebra BorchardtApril 15, 2020
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5min6100

It was late in the evening when Aphria Inc. (NYSE: AHPA) decided to drop its earnings for the fiscal third quarter ending February 2020. Normally, companies will report in the off hours when the numbers are especially dismal, but that wasn’t necessarily the case for Aphria.

The company reported net cannabis revenue of $55.6 million in the third quarter, an increase of 65% from the prior quarter. The total net revenue was $144.4 million in the third quarter, a 96% increase over the same time period in 2019 and a 20% increase sequentially. The revenue beat estimates by $13 million. The net income came in at $5.7 million, or $0.02 per share, which beat analyst estimate by eight cents. The adjusted EBITDA was $5.7 million in the third quarter.  The company ended the quarter with $515.1 million of cash and cash equivalents.

“We are proud of our sustained growth in Canada and continued expansion of our international capabilities,” stated Irwin D. Simon, Chairman, and Chief Executive Officer. “During this unprecedented time, the well-being of our employees, patients, consumers, partners and the communities we operate in is our primary focus. Our facilities, offices and patient care teams remain open and operational to continue to provide our patients and consumers with what we believe is best-in-class care and service with appropriate measures in place to protect the health and safety of employees. As we face uncertain times, I am proud of how the Aphria team has come together to navigate these uncharted waters. Going forward, we believe Aphria continues to be differentiated in the cannabis industry through our brands, cultivation expertise, high-quality standards, cash position, and balance sheet.”

Pulls Guidance

Despite the solid quarter, Aphria said it was suspending its previously announced guidance for revenue, of $575 million to $625 million, and adjusted EBITDA, of $35 million to $42 million, for fiscal 2020. The company said it plans to re-instate its annual guidance once the pandemic stabilizes, which may not be until a point in the company’s fiscal 2021 year.

Prices Fall For Medical

The average retail selling price of medical cannabis (exclusive of wholesale), before excise tax, decreased to $6.41 per gram in the quarter, compared to $8.16 in the prior quarter, primarily related to the implementation of compassionate pricing policy in the quarter. The average selling price of adult-use cannabis, before excise tax, increased to $5.47 per gram in the quarter, compared to $5.22 per gram in the prior quarter, primarily as a result of a change in sales mix.

Customer demand exceeded Ahpria’s supply capabilities in the quarter as a result of the timing of Aphria Diamond’s license receipt and, as a short-term measure, the company purchased wholesale product from other Licensed Producers to supplement its near-term supply capabilities. Wholesale product purchases resulted in a higher cost and less margin opportunity for those sales. During the quarter, sales of purchased cannabis accounted for $20.2 million, with gross profit of $5.1 million and a gross margin of 25.2%.  If the company had been able to utilize cannabis it had grown, at the “all-in” cost of sales of dried cannabis per gram reported this quarter, the Company would have reported an additional $7.6 million of gross margin and adjusted EBITDA.


Debra BorchardtDebra BorchardtJanuary 14, 2020
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8min6930

Aphria Inc.  (TSX: APHA and NYSE: APHA) reported its results in Canadian dollars for the second quarter ending November 30, 2019, with revenue for adult-use cannabis increasing 46% sequentially to $29 million. Total net revenue decreased sequentially by 4% to $120.6 million but jumped 457% over last year’s second quarter.

The drop from the first quarter for Aphria was attributed to a decrease in distribution revenue from $95.3 million to $86.4 million associated with the change in the German government’s medical reimbursement model and seasonality in CC Pharma. However, the company said that this was partially offset by an increase in net cannabis revenue of $33.7 million from $30.8 million.

Aphria delivered a net loss of $7.9 million, but a positive EBITDA of $1.9 million in the quarter. Last year the company reported a net income of $54 million for the same time period. The company blamed the decrease in net income on provisions associated with its Tier 3 passive investment portfolio.

“We are very pleased with our strong growth and execution in Canada demonstrated by our increase in adult-use cannabis revenue and positive adjusted EBITDA as a result of our compelling brands and market positioning,” stated Irwin D. Simon, Chairman, and Chief Executive Officer. “We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets. We are confident in our market position and our ability to generate sustainable profit growth. I am honoured to continue to work closely with our tremendous team around the world to fuel growth and value for all of our stakeholders.”

The company also announced that Simon will officially remove “interim” from his title and become the official CEO. He has been serving as the interim CEO since February. He is also Chairman of the Board.

Cannabis Retail Prices Rise

Aphria reported that the average retail selling price of medical cannabis (exclusive of wholesale), before excise tax, increased to $8.16 per gram in the quarter, compared to $7.56 in the prior quarter, primarily related to a higher percentage of total medical sales coming from Broken Coast in the prior quarter. The average selling price of adult-use cannabis, before excise tax, decreased to $5.22 per gram in the quarter, compared to $6.02 per gram in the prior quarter, primarily as a result of a change in sales mix.

The company noted that customer demand exceeded its supply capabilities in the second quarter as a result of the timing of Aphria Diamond’s license receipt and as a short-term measure the company purchased wholesale products from other Licensed Producers to supplement its near-term supply capabilities. “Wholesale product purchases resulted in a higher cost and less margin opportunity for those sales.”

The net revenue figures included over 5,567 kilogram equivalents sold for the adult-use market and 1,237 kilogram equivalents for medical cannabis sales. The company ended the quarter with a strong balance sheet and liquidity, including $497.7 million of cash and cash equivalents, to fund planned Canadian and International growth.

Looking Ahead

Aphria is forecasting that for fiscal 2020 it expects to deliver net revenue of $575 million to $625 million and EBITDA of roughly $35 million to $42 million. However, it did note that there is a slower than expected rollout in Ontario with more than 40 store openings still pending. Plus, Alberta is still banning vape products and there is a slowing in CC Pharma’s growth arising from recent changes in the German government’s medical reimbursement model.

Carl Merton, Aphria’s Chief Financial Officer said, “We are updating our annual outlook with a little over four months left in our fiscal year to reflect certain market dynamics that have evolved relative to our initial expectations.  We look forward to generating an acceleration in our revenue and profit growth in the second half of the fiscal year and continue to believe the Canadian and international cannabis industry outlook remains robust. Aphria is well-positioned for long-term sustainable growth as we continue to manage the controllable aspects of our business.”

 

 

 


Debra BorchardtDebra BorchardtOctober 15, 2019
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7min10210

Aphria Inc. (TSX: APHA)(NYSE: APHA) stock jumped over 16% to trade at approximately $5.10 in early trading after the company reported that its revenue increased 849% to $126.1 million for the first quarter ending August 31, 2019, however sales declined 2% from the previous quarter. Adult-use cannabis accounted for $20 million in revenue for the first quarter, an 8% sequential increase.

The company delivered net income of $16.4 million in the first quarter. It also stated that it ended the quarter with a strong balance sheet and liquidity, including $464.3 million of cash, cash equivalents, and liquid marketable securities, to fund planned Canadian and International growth.

“We are pleased to report a second consecutive quarter of profitable growth with a strong contribution from our Canadian cannabis operations. Our success was also driven by our international business and the strength and growth of our brands, particularly Broken Coast, despite a small fire at our British Columbia facility at the end of the quarter. This solid start to the year keeps us on track to achieve our fiscal year 2020 financial outlook,” stated Irwin D. Simon. “Going forward, we remain focused on our highest-return priorities both in Canada and internationally as our team furthers the development of our medical and adult-use cannabis brands to drive growth through innovation and return value to shareholders.”

The good news from Aphria lifted the sector, which has been in a bear market for months. Several big names like Canopy Growth (CGC), Tilray (TLRY) and Aurora Cannabis (ACB) were moving higher in early trading by 2-3%. Aphria was also stung by news last week that Aleafia would no longer buy its cannabis saying the company couldn’t meet its supply agreements. So, this was a welcome relief for shareholders.

Revenue Mix

The sequential drop in revenue was attributed to “a decrease in distribution revenue from $99.2 million to $95.3 million associated with a change in business strategy at CC Pharma to maximize profitability after recent changes in the German government’s medical reimbursement model. The decrease in distribution revenue was partially offset by an increase in net cannabis revenue of $30.8 million from $28.6 million.” Aphria said it sold over 3,317-kilogram equivalents in the adult-use market and 1,354-kilogram equivalents for medical cannabis sales. The company also stated that the estimates for the impact on revenue from the small fire at Broken Coast would be approximately $1.5 million in the quarter; however, the majority of the lost quarterly revenue would be reported in the company’s second quarter.

The average retail selling price of medical cannabis fell to $7.56 per gram in the quarter versus $7.66 in the prior quarter, primarily related to a higher percentage of total medical sales coming from Aphria. The average selling price of adult-use cannabis, before excise tax, increased to $6.02 per gram in the quarter, compared to $5.73 per gram in the prior quarter.

Looking Ahead

Aphria is reaffirmed its guidance for fiscal year 2020 with net revenue of approximately $650 million to $700 million, with distribution revenue representing slightly more than half of the total net revenue. The company also forecasted adjusted EBITDA of approximately $88 million to $95 million.


StaffStaffOctober 8, 2019
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7min6780

It’s time for your Daily Hit of cannabis financial news for October 8, 2019.

On The Site

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) and PharmaCann, LLC made a big deal back in December of 2018 that MedMen would buy PharmaCann in an all-stock transaction. That deal, once valued at $684 million, is now off. MedMen is now saying that it will focus on leveraging its retail brand, its leadership position in California and its digital platform to grow the business will create greater shareholder value than the completion of the transaction.

The company also took this moment to announce that Zeeshan Hyder has been appointed Chief Financial Officer at MedMen. Mr. Hyder, currently MedMen’s Chief Corporate Development Officer, has been an integral part of the leadership team at MedMen since 2017, overseeing corporate development, investor relations and other financial growth initiatives. To date, Mr. Hyder has led over $300M in M&A deals executed, partnered with the CEO to take the company public and raised $500M in capital for direct investment into the business.

Hyder succeeds Michael Kramer, who apparently was terminated as of October 7, 2019. Kramer was only just hired in December of 2018 and he followed the previous CFO James Parker who only lasted a year and half and is currently suing Medmen for breach of contract.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) has terminated its deal to buy cannabis from Aphria Inc. (TSX: APHA)(NYSE: APHA) saying Aphria failed to meet its supply obligations. The deal that was agreed to on September 11, 2018 said that Aphria would provide up to 175,000 kg equivalents of cannabis products over an initial five-year term, commencing May 1, 2019. Aleafia said the termination should not affect the company. A few weeks ago, Aleafia told the market on Tuesday that it will achieve positive net income for the quarter ending September 30, 2019. The company also stated that it had $51 million in cash on hand.

Aphria released a statement saying, “We are disappointed that Aleafia has chosen to terminate its Agreement with Aphria Inc. The Company had every intention of fulfilling its obligations under the Agreement. As a large shareholder of Aleafia, Aphria made good faith efforts to ensure the continuation of the Agreement understanding it was in the best interest of all parties involved. However, the termination of this legacy Agreement frees up significant supply allowing the Company to service its brands that are in high-demand across the country.”

In Other News

Target Group Inc (OTCQB: CBDY) announced that its wholly-owned subsidiary, Canary RX Inc (“Canary”), has been granted licenses to cultivate, process and sell cannabis pursuant to the Cannabis Act (Bill C-45). Strategically located just outside of Toronto, ON, Canary RX will begin cultivating cannabis in its 44,000 square foot facility, producing 3600 kilograms annually.

The Supreme Cannabis Company, Inc.  (TSX: FIRE) (OTCQX: SPRWF) announced that Blissco Cannabis Corp., Supreme Cannabis’ premium wellness brand and a multi-licensed processor and distributor, has received licensing approval from Health Canada for the sale of cannabis oils from its facility in Langley, British Columbia.

 

 


Debra BorchardtDebra BorchardtOctober 8, 2019
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3min26390

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) has terminated its deal to buy cannabis from Aphria Inc. (TSX: APHA)(NYSE: APHA) saying Aphria failed to meet its supply obligations. The deal that was agreed to on September 11, 2018 said that Aphria would provide up to 175,000 kg equivalents of cannabis products over an initial five-year term, commencing May 1, 2019.

“Following Aphria’s failure to meet its supply obligations under the Supply Agreement, Emblem has exercised its contractual right to terminate the Supply Agreement in accordance with its terms. The termination of the Supply Agreement by Emblem was made without prejudice to its rights accrued to the date of termination (including its rights to be refunded the unused balance of its deposit) and its rights to seek damages as a result of Aphria’s default and termination thereunder.”

Aleafia said the termination should not affect the company. A few weeks ago, Aleafia told the market on Tuesday that it will achieve positive net income for the quarter ending September 30, 2019. The company also stated that it had $51 million in cash on hand.

With regards to production, the company also stated a few weeks ago that harvesting is expected to begin in two weeks at the Port Perry facility, whose expansion phase is expected to be finished this November. The Niagara Greenhouse Phase I remains in a grow-ready state pending receipt of a Health Canada Cultivation Licence. Remaining retrofitting is limited to two final growing rooms in the facility’s Phase II portion, which are expected to be completed in October 2019. All other non-cultivation infrastructures including trimming & drying room, shipping, and disposal areas are entirely complete.

Aphria Comments

Aphria released a statement saying, “We are disappointed that Aleafia has chosen to terminate its Agreement with Aphria Inc. The Company had every intention of fulfilling its obligations under the Agreement. As a large shareholder of Aleafia, Aphria made good faith efforts to ensure continuation of the Agreement understanding it was in the best interest of all parties involved. However, the termination of this legacy Agreement frees up significant supply allowing the Company to service its brands that are in high-demand across the country.”

Aphria stock is falling over 5% to $5.11, while Aleafia is down over 2% to 63 cents.


Debra BorchardtDebra BorchardtAugust 5, 2019
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4min10280

Canadian cannabis company Aphria Inc. (NYSE: APHA) saw its stock jump over 40% in trading on Friday after the company delivered profits that pleased traders and gave a rosy outlook for 2020. The company reported net income of C$15.8 million or $11.9 million versus last year’s loss of C$5 million for the same time period. Sales jumped to C$128 million over the previous year’s C$12 million.

The move helped polish what was starting to be another dismal quarter for cannabis stocks. Most cannabis indices got a sympathetic lift on the rise in Aphria stock on Friday. The second quarter saw most cannabis indices down by 15-20%. The third quarter also started with continued selling, but this may have put the brakes on some sell tickets.

“It’s a new day at Aphria. Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter,” stated CEO Irwin D. Simon. “Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term.”

The company stated that the higher revenue in the quarter was driven by $99.2 million of distribution revenue from CC Pharma and other distribution companies and $33.5 million of revenue from cannabis produced. Net revenue includes over 3,228-kilogram equivalents sold for the adult-use market and 1,417-kilogram equivalents for medical cannabis sales.

It is worth mentioning that the company received $50 million cash from the failed Green Growth Brands takeover attempt and that it will get another $39 million in November. The company also ended the quarter with a strong balance sheet including $571 million of cash, cash equivalents and liquid marketable securities, which Aphria said it plans on using to fund Canadian and International growth.

While some on Twitter pointed to an unrealized gain on convertible debentures creating a non-operating income of $40 million, that pales in comparison to the revenue from CC Pharma, which was acquired in 2018. CC Pharma is a leading distributor of pharmaceutical products to pharmacies in Germany as well as throughout Europe. European sales were double North American sales for the company.

Looking Forward

Aphria said it is forecasting fiscal 2020 revenue net of excise taxes to be C$650 million to C$700 million. The company has also projected an adjusted EBITDA of approximately $88 million to $95 million. Jefferies analyst Ryan Tomkins rates the company as a Buy and wrote, “In the context of poor sector sentiment, profitability becoming an increasing focus, and guidance scarce, this print is very reassuring and supports our conviction in the name.”

The company is also said to be considering buying some of the assets of CannTrust (NYSE: CTST) as the company is currently in a death spiral following reports of illegal growing.  Bloomberg News reported that Irwin said his company was eyeing parts of the company.


William SumnerWilliam SumnerAugust 1, 2019
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5min8190

It’s time for your Daily Hit of cannabis financial news for August 1, 2019.

On the Site

Executive Spotlight: Jamie Warm, CEO and Co-Founder of Henry’s Original

Jamie Warm is the CEO and Co-Founder of Henry’s Original. Despite the young age of the legal industry, Jamie has only had one career: growing cannabis. At Henry’s Original,  his responsibilities include setting the overall strategic vision of the company, driving retail penetration and nurturing the financial health of the company.

Tribune Publishing Enters Agreement With The Fresh Toast For Cannabis News

The medical and recreational marijuana industry just received a major boost with consumers.   Like Walmart, Kroger, CVS, Amazon, and other retailers embrace CBD, now mainstream media is working to give consumers the knowledge on how to use and where to shop.   Tribune Publishing Co. (NASDAQ: TPCO), the owner of the Chicago Tribune, NY Daily News, Orlando Sentinel, South Florida’s Sun-Sentinel, Hartford Courant and more along with syndicating content to over 500 United States newspapers, has entered a partnership with The Fresh Toast, one of the largest cannabis media companies in the industry.

Nielsen Predicts Legal Cannabis Sales In The U.S. To Reach $41 Billion By 2025

Cannabis was featured in Nielsen Company’s Total Consumer Report 2019, with the data and information company predicting the sales of cannabis consumer packaged goods to rise 5x that 2018’s sales. They forecast that the sales of all legalized cannabis products in the U.S. could reach $41 billion by 2025.

In Other News

Aphria

Today, Aphria Inc. (TSX: APHA) (NYSE: APHA) announced their financial results for the fourth quarter, ending on May 31, 2019. Net revenue was C$128.6 million, up 75% from the previous quarter. Revenue from adult-use cannabis was C$18.5 million. Adjusted EBITDA from cannabis operations was C$1.9 million. The net loss was C$15.76 million.  “It’s a new day at Aphria. Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter,” stated Irwin D. Simon. “Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term.”

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) today preannounced its unaudited revenue for the second quarter. Revenue is estimated to be between $26-$27 million, and between $75-$77 million when counting pending acquisitions of Falcon, Verano, CannaPharmacy and Devine Holdings and the closed acquisitions of Leaf Life and Urban Greenhouse. The company will release its full financial results on August 15, 2019.

Cadiz Inc.

Cadiz Inc. (NASDAQ: CDZI) announced that it has entered a joint venture partnership with Glass House Farms, which is a division of California Cannabis Enterprises. Operating under the name SoCal Hemp Co., up to 9,600 acres of hemp will be cultivated at Cadiz Ranch in San Bernardino County, California. “The sun-drenched, isolated natural environment at the Cadiz Ranch is ideal for the commercial production of organically sun-grown hemp and natural hemp-derived products, including CBD, which are presently driving market growth,” said Glass House Farms President Graham Farrar. “With plants already in the ground at the largest agricultural operation in San Bernardino County, we are working closely with the team at Cadiz to leverage our collective strengths. We look forward to bringing our full operation online and being a long-term, trusted partner and resource to the local community, our customers and clients.”



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