Canopy Growth Archives - Green Market Report

StaffJuly 28, 2021
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Seth Rogen’s cannabis company Houseplant and Canopy Growth Corporation (NASDAQ: CGC) have decided to end their relationship after three years. It won’t affect the company’s U.S. business and the product is expected to remain on some shelves through September 2021. The relationship between Houseplant and Canopy started in 2018, well ahead of Canadian legalization. The Canadian cannabis market has evolved substantially since those days, and the parties believe the time is right for the Houseplant brand to develop independently while Canopy advances its focus on wholly-owned brands for the Canadian market.

“The recent launch of Houseplant in the United States has given us a clear benchmark for what Houseplant stands for, and how we plan to bring the brand to life globally,” says Michael Mohr, Co-Founder and CEO, Houseplant. “While our collaboration with the Canopy team has been fruitful and we continue to hold similar views on the opportunities ahead, we believe the time is right for us to focus on Houseplant independently.”

During these three years, Houseplant has become a popular consumer brand in Canada and is currently a top 10 brand in the premium cannabis market in Ontario. Beverages are a highlight of the brand’s success, with Houseplant Grapefruit notably attaining the top-selling cannabis beverage spot in Canada (measured by units sold) in its launch year. More than one million cans of Houseplant beverages were sold in Canada within the last year.  Houseplant launched a line of premium homewares and cannabis products in the United States in March 2021 and has quickly become a cultural and industry leader.

Canada is where it all started – for us as people, and for the brand,” says Houseplant Co-Founder Seth Rogen. “This is not an exit from the Canadian market, but a chance for us to evolve the brand.” Houseplant plans to relaunch in the Canadian market in the future with products more consistent with its US offerings.

“We’re proud of our collaboration with Houseplant. Together, we’ve delivered high quality and innovative products to Canadian consumers and played a critical role in defining the premium cannabis category in Canada,” said Rade Kovacevic, President and Chief Product Officer, Canopy Growth. “As we move forward, Canopy will advance our focus on our wholly-owned brands for the Canadian market and we wish the Houseplant team the best in their future endeavors.”

 

 

 


Debra BorchardtJune 23, 2021
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Canopy Growth Corporation  (TSX: WEED) (NASDAQ: CGC) has completed its acquisition of The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF), a deal that was valued at $435 million. Supreme Cannabis’s portfolio of brands includes 7ACRES7ACRES Craft CollectiveBlisscosugarleaf, and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand. As a result of the deal, Supreme has become a wholly-owned subsidiary of Canopy. Supreme shares are expected to be de-listed from the Toronto Stock Exchange on or about June 23, 2021.

“Through the addition of Supreme, we’re strengthening our leadership position by offering Canadian consumers a differentiated brand portfolio – including the addition of 7ACRES, which further bolsters our premium product segment,” said David Klein, Chief Executive Officer of Canopy. “Supreme has demonstrated the ability to cultivate premium quality flower at low cost and we’re excited to leverage these capabilities to further our leadership in the Canadian market as we scale these newly added brands and accelerate revenue growth.”

Canopy noted in a statement that the addition of 7ACRES and the 7ACRES Craft Collective enhances its leading market share position and supplements its production capacity through the acquisition of Supreme’s low-cost, scalable cultivation facility in Kincardine, Ontario. That facility has a proven capability for producing high-quality flower from sought-after strains that have earned Supreme’s brands their loyal consumer followings. Canopy also said that the acquisition of Supreme further strengthens its overall leadership position within the Canadian recreational market and creates a pro forma Q4 FY 2021 market share of 18.1%.

The company previously said that the combined pro forma market share was estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia. However, Canopy Growth noted that cost synergies will not be felt for another two years and those are expected to be in the $30 million range. 

“We believe the acquisition of Supreme by Canopy represents the best path forward for Supreme’s shareholders to generate long-term value,” said Beena Goldenberg, Chief Executive Officer of Supreme. “We are proud to have built an attractive company with high-quality, sought-after premium products and brands. We feel joining with Canopy – a leader in the Canadian recreational market – is aligned with our ultimate goal of becoming a premier cannabis CPG company.”

Supreme felt the challenges of Covid in 2020 causing the company to focus on cost-cutting measures and strengthening the balance sheet. Canopy also spent a year addressing huge net losses while also looking to shore up its finances.


Debra BorchardtJune 4, 2021
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Canopy Growth (NASDAQ: CGC) has been following a pretty strident strategy of restructuring the company as it keeps cutting assets and unwinding deals made by former CEO Bruce Linton. The latest casualty this week was a deal with Aubrey “Drake” Graham to launch More Life Growth company. Drake originally made the deal in November 2019 with Linton. Under the agreement, Canopy sold 100% of its shares in a subsidiary to More Life in exchange for just 40% of the company. Drake held the remaining 60%.

Canopy said in its filing that the subsidiary didn’t meet the “definition of an operation” and thus no goodwill was allocated. Canopy unrecognized assets and liabilities associated with More Life to the tune of C$33.7 million and took a C$10.3 million ($8.6 million) impairment charge on the joint venture in the fiscal fourth quarter.

In the filing, Canopy said it controlled the facility and inventory grown at the facility planned for More Life and had recorded those items as assets for Canopy Growth since the deal had been agreed in 2019.

“We have indeed divested from More Life,” Jennifer White, director of communications at Canopy Growth, has told BNN Bloomberg. “The facility in Scarborough which had been intended to be part of that agreement is now Canopy Growth’s R&D facility, where we will work on plant science and science development projects,” she added.

At the time of the agreement, it was seen as a way to skirt cannabis advertising rules. Drake would be able to talk about More Life as an owner and thus it wouldn’t be considered promotional. At the time of the announcement of the Drake deal, Canopy Growth stock had been on a freefall, dropping from roughly $50 in April 2019 to $18 in November 2019. The news of the Drake deal lifted the stock back into the low $20’s.

Martha Remains

Drake may be gone, but the relationship with product celebrity Marth Stewart remains strong. That arrangement was made in February 2019 for Stewart to lend her name to a line of animal CBD products. The products were launched in 2020 and the company expanded the line in 2021. It is rumored that Martha’s pet treats are bringing in a million dollars a month in sales, although this can’t be confirmed as Canopy doesn’t release these sales figures. In May 2021, Stewart was named a Strategic Advisor to Canopy Growth further cementing her position in the company.


Debra BorchardtJune 1, 2021
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Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC)  announced its financial results for the fourth quarter and fiscal year 2021 ending March 31, 2021. Canopy Growth’s revenue increased 38% to $148 million. The net losses for the quarter were $617 million, an improvement over 2020’s net losses of $710 million. The company blamed the bloated net losses on non-cash fair value changes of $292 million and impairment and restructuring charges of $75 million primarily related to changes to its Canadian operations that were announced on December 9, 2020.

For the full year, net revenue increased 37% to $546 million over the prior year driven by double-digit growth across Canadian cannabis, international cannabis and other consumer products businesses. Total net cannabis revenue of $379 million in the fiscal year 2021, represented an increase of 28% over the prior year.

The reported fiscal year 2021 net loss of $1.7 billion, a $283 million wider loss than fiscal year 2020, was driven primarily by the year-over-year change in other income (expense), net, the reduction in the income tax recovery, and expected credit losses on financial assets and related charges, and partially offset by the year-over-year improvement in gross margin and reductions in selling, general and administrative expenses, share-based compensation expense, and asset impairment and restructuring charges.

“During Fiscal 2021, Canopy Growth transformed into a CPG-modelled organization, reinforcing a foundation for sustained growth and long-term success. By leveraging consumer insights and innovation to deliver best-in-class products, Canopy Growth is positioned to achieve our goal of unleashing the power of cannabis to improve lives,” said David Klein, CEO, Canopy Growth. “We are starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in Fiscal 2022.”

“We made tremendous progress improving our supply chain and right-sizing our manufacturing footprint, bringing supply and demand into balance,” added Mike Lee, CFO. “Our cost savings program is on track to deliver $150 – $200 million of savings within the next 18 months, and we remain committed to our path to profitability by the end of Fiscal 2022 while continuing to invest in an organization that is focused on insights, innovation and gaining momentum in the U.S. market.”

Cash Position

While the losses are staggering, the cash and short-term investments of $2.3 billion on March 31, 2021 give the company a cushion. This was an increase of $0.3 billion from $1.98 billion on March 31, 2020, and reflects net proceeds from a $930 million US$750 million ) senior secured term loan announced on March 18, 2021, partially offset by EBITDA losses and capital investments.

Outlook

Canopy said in a statement that the implementation of supply chain optimization was well underway with network optimization and complexity reduction initiatives expected to realize its previously stated cost savings of $150 million to $200 million by the end of the first half of FY 2023. It also said that the tight-sizing of our Canadian production footprint has improved cannabis supply and demand with the equivalent kilograms of cannabis sold in Q4 2021 exceeding kilograms harvested by over 40%. Overall Inventory levels declined sequentially in Q4 2021 even as finished inventory increased in support of various new product launches.


Debra BorchardtApril 8, 2021
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Canopy Growth Corporation (NASDAQ: CGC) is buying The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) in a deal valued at approximately $435 million on a fully diluted basis. Supreme Cannabis shareholders will receive 0.01165872 of a Canopy common share and $0.0001 in cash in exchange for each Supreme Cannabis Share held. There is a $12.5 million termination fee. Supreme Cannabis’s portfolio of brands includes 7ACRES7ACRES Craft CollectiveBlisscosugarleaf, and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand.

“As we continue to expand our leading brand portfolio, we’re excited to reach more consumers through Supreme’s premium brands and high-quality products, further solidifying Canopy’s market leadership,” said David Klein, Chief Executive Officer of Canopy. “Supreme’s deep commitment to superior genetics, top-tier cultivation, and strict quality control, paired with Canopy’s leading consumer insights, advanced R&D, and innovation capabilities, is expected to create a powerful combination that aligns with our strategic focus to generate growth with premium quality products across key categories.”

The combination of market leader Canopy Growth with Supreme Cannabis’ top position in Canada will lead to a pro forma Canadian recreational market share of 13.6% according to a company statement based on Headset data. This includes 7ACRES which is Canada’s number one premium flower brand, number one in PAX vapes, and Top-5 in pre-rolled joints. The company said that the combined pro forma market share is estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia. However, Canopy Growth noted that cost synergies will not be felt for another two years and those are expected to be in the $30 million range. 

“This transaction is a testament to the value created by all the teams at Supreme and will be beneficial to all of our stakeholders,” added Beena Goldenberg, President, and CEO of Supreme Cannabis. “We have been successful at delivering great products that achieved strong customer loyalty and operating at levels of efficiency that are industry-leading. We have also built a highly sought-after premium brand in 7ACRES. Combining Supreme Cannabis with Canopy – a Canadian market leader with exposure to the United States – presents a significant value creation opportunity for both companies. We look forward to working with Canopy to complete this transaction.”

The deal is said to provide Supreme Cannabis shareholders with a premium per share of approximately 66% based on the closing prices of the Supreme Cannabis Shares and Canopy common shares on the TSX as of April 7, 2021.

Supreme felt the challenges of Covid in 2020 causing the company to focus on cost-cutting measures and strengthening the balance sheet. Canopy also spent a year addressing huge net losses while also looking to shore up its finances.

 


Debra BorchardtMarch 18, 2021
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Canopy Growth Corporation (NASDAQ: CGC) announced that it has entered into a credit agreement with Funds advised by King Street Capital Management, L.P. Under the Credit Agreement, the company has raised a $750 million in a senior secured term loan. Canopy also said it has the ability to obtain up to an additional $500 million of incremental senior secured debt pursuant to the Credit Agreement.

“We are delighted to welcome King Street as our anchor debt investor and look forward to building value for both our credit and equity investors over time,” said Mike Lee, EVP, and CFO of Canopy Growth. “This transaction further strengthens Canopy’s balance sheet, provides additional capital to invest in high-return growth opportunities, and marks a key milestone for us as we work towards achieving a more efficient capital structure”.

In February, Canaccord Genuity downgraded Canopy Growth to a Sell rating. Cormark Securities also downgraded the stock from Market Perform to Reduce. Benchmark also downgraded the stock from Buy to Hold. The stock was lately trading at $34. down from the company’s 52-week high of $56.

“We have been impressed with the growth of Canopy as a leader in the Canadian market and look forward to providing this strategic capital as Canopy further expands its business,” said Noah Charney, Managing Director at King Street.

Last month, Canopy recorded an eye-popping net loss of $829 million. Canopy said that this was a $720 million wider loss than the previous quarter and blamed the loss on impairment and restructuring charges and other related charges of $416 million. $382 million of those related charges were as a result of the announcement on December 9, 2020. Canopy shocked investors at the time when it announced it would cease operations at several sites, plus its outdoor cannabis grow operations in Saskatchewan. The company said those decisions were the partial outcome of an ongoing end-to-end review designed to improve its margins. At the time, Canopy said it expected to record estimated total pre-tax charges of approximately $350 -400 million in the third and fourth quarters of Fiscal 2021.

Loan Terms

The Term Loan Facility has no amortization payments and matures on March 18, 2026. The gross proceeds, net of fees and expenses, will be used by Canopy Growth for working capital and general corporate purposes, including without limitation, growth investments, acquisitions, capital expenditures, and strategic initiatives. The Term Loan Facility has a coupon of LIBOR plus 8.50% and is subject to a LIBOR floor of 1.00%. Giving effect to the net proceeds from the Term Loan Facility, the company’s estimated pro forma cash, cash equivalents, and short-term investments position as of December 31, 2020, would have been approximately CAD$2.5 billion.


Kaitlin DomangueMarch 2, 2021
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It’s time for your Daily Hit of cannabis financial news for March 2nd, 2021. 

On the Site

Collecting and Storing Cannabis Pollen

Most growers these days are only interested in female plants, but if you want to cross different strains and breed new combinations, you’ll need the pollen. And in fact, few companies sell pollen so it’s actually much more practical to just collect your own. For indoor growers, collecting it is the only option, since nature’s elements are not present to spread the pollen for them.

Pro tip: If you are storing seeds for later pollen collection, best to occasionally pull one out and give it a germination test to make sure the little babies are still active and viable.

 

The Massachusetts Cannabis Industry is a Billion Dollar Marketplace

Cannabis business consulting firm Nucleus One recently released the findings of their February 2021 Massachusetts Adult-Use Marijuana Market Report. Nucleus-One tracks and analyzes data from the Cannabis Control Commission of Massachusetts. February’s report heralded good news for the Commonwealth’s cannabis industry after a short-lived decline in sales in 2020. Since the decline, December and January 2021 saw unprecedented sales, with over 98 active retailers in the state. This growth is due to higher sales in product categories other than flower shares, which hit an all-time low in December. 

 

CBN Market Targets Sleep

The demand for sleep aids and medications has seen a similar surge, and with it the debut of products containing Cannabinol (CBN), a minor cannabinoid with what some claim is a uniquely sedative effect.

Unlike CBD, CBN is not present in significant quantities in fresh marijuana, but when unheated marijuana ages or is exposed to air and light, the THC in it turns to CBN.

 

Circle K Ramps Up Cannabis Ownership

Alimentation Couche-Tard Inc. or ACT, the owners of Circle K have increased its equity stake in Canadian cannabis company Fire & Flower Holdings Corp.  (OTCQX: FFLWF). ACT announced that it plans to convert all of its approximately $28.5 million outstanding principal amount of 8.0% secured convertible debentures issued in April 2020 as well as the conversion of approximately $23.6 million principal amount of 8.0% unsecured convertible debentures issued to 2707031 Ontario Inc. Following the conversion, ACT will have converted a total of approximately $52 million principal amount of debt to equity and ACT will hold 19.9% of the issued and outstanding shares of Fire & Flower.

 

High Tide Crushes Fourth Quarter, 166% Increase in Revenue

Canadian cannabis retailer, High Tide Inc., (TSXV: HITI) (OTCQB: HITIF), announced their Q4 earnings yesterday for 2020. Despite the curveballs 2020 threw, High Tide landed on top, and reported a 118% increase in revenue bringing the total to $24.9 million for the fourth quarter. The revenue increase accounted for a 166% year-over-year growth, and brought the year’s total earnings to $83.3 million. 

In Other News

NeonMind Biosciences Inc. Files for Four Additional Provisional Patents

NeonMind Biosciences Inc. (CSE: NEON) (OTC:NMBDF) (FRA: 6UF) announced that they have filed four additional provisional patents on psilocybin preclinical data. NeonMind has a consumer products division focusing on medicinal mushroom infused products, as well as a pharmaceutical division focused on drug development of psychedelic compounds. 

The provisional patent features data derived from the company’s initial preclinical trial that began in November 2020. This trial examined the potential use of psilocybin as a treatment for weight loss. NeonMind’s proprietary preclinical data shows promise that both low and high dose psilocybin may reduce weight gain and that the reduction in weight gain can occur in a short period of time. 

“We are encouraged with the preliminary results obtained from our preclinical trial,” says NeonMind President & CEO Robert Tessarolo. “Through an expanded portfolio of patent applications, NeonMind is uniquely positioned to pursue exciting drug development opportunities in the enormously underserved weight management market. There have been so many solutions developed in the past that have disappointed; a new approach is desperately needed. We are actively building out our capabilities to execute the critical phases of drug development needed to support new drug applications to the FDA.” 

 

TILT Holdings Inc. Approved for Cultivation Expansion at Massachusetts Facility 

TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF), announced its approval for expanding cultivation at their Massachusetts cultivation and manufacturing facility. The request was approved by Massachusetts Cannabis Control Commission and set for eight additional grow rooms at its subsidiary, Commonwealth Alternative Care, Inc. The new operations are set to begin later this month. 

“We are pleased to announce the regulatory approval of the second phase of the planned expansion of our 117,000 sq ft cultivation and manufacturing facility in Taunton, Massachusetts,” said Gary Santo, president of TILT. “We now have more than 56,000 sq. ft. of cultivation space with the ability to add a second grow tier to each of the eight new rooms, pending regulatory approval. Once planted, these additional rooms will fortify the supply of premium flower for our Taunton dispensary, and together with our award-winning kitchen and state-of-the art extraction and processing lab, will support the production and distribution of high-quality, consistent products for our brand partners. As we continue to solidify CAC’s presence in the state, we remain committed to working with the CCC to achieve final state licenses permitting medical dispensary operations at our Brockton and Cambridge locations, as well as adult-use operations at both our Brockton and Taunton locations.”

 

Canopy Growth Launches CBD Beverage Brand

Canopy Growth Corporation has launched a CBD beverage brand. The drink is already a top seller in the category after a successful Canadian launch. The brand is called Quatreau, and it contains 20 milligrams of U.S. grown hemp-derived CBD. Quaetreau comes in four refreshing flavors:

  • Quatreau CBD-infused Sparkling Water in Cucumber + Mint
  • Quatreau CBD-infused Sparkling Water in Passionfruit + Guava
  • Quatreau CBD-infused Sparkling Water in Ginger + Lime
  • Quatreau CBD-infused Sparkling Water in Blueberry + Acai

“We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic. “Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option.”


Debra BorchardtFebruary 9, 2021
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Canopy Growth Corporation (NASDAQ: CGC) announced its financial results for the third quarter fiscal 2021 ending December 31, 2020, with net revenue of $153 million in Q3 2021, an increase of 23% versus Q3 2020. Canopy Growth said that $99 million of that revenue was driven by an increase in Canadian recreational and International medical cannabis revenue. Despite the increase in revenue, the company also recorded an eye-popping net loss of $829 million.

Canopy said that this was a $720 million wider loss than the previous quarter and blamed the loss on impairment and restructuring charges and other related charges of $416 million. $382 million of those related charges were as a result of the announcement on December 9, 2020. Canopy shocked investors at the time when it announced it would cease operations at several sites, plus its outdoor cannabis grow operations in Saskatchewan. The company said those decisions were the partial outcome of an ongoing end-to-end review designed to improve its margins. At the time, Canopy said it expected to record estimated total pre-tax charges of approximately $350 -400 million in the third and fourth quarters of Fiscal 2021.

“We delivered another quarter of record net revenue, with growth across all our businesses, led by improved commercial and supply chain execution,” said David Klein , CEO. “We are building a track record of winning in our core markets, while also accelerating our U.S. growth strategy with the momentum building behind the promising cannabis reform in the U.S.”

“We are executing against our cost savings program, with several initiatives already completed and more underway to build a leaner and more agile business,” added Mike Lee , CFO. “These cost savings, along with our top-line growth and continued cost discipline, puts Canopy firmly on a path to achieve profitability during Fiscal 2022, with further improvement anticipated beyond.” The company divested its shares in Canopy Rivers and increased its ownership in TerrAscend.

Of the total impairment and restructuring charges recorded during the third quarter, approximately 15% was a cash charge. Canopy said other expenses totaled $291 million during the quarter stemming from non-cash fair value changes, mostly driven by the company’s higher stock price.

While the losses are staggering,  Canopy is resting comfortably on cash and short-term investments that amounted to $1.59 billion on December 31, 2020. Still, this represented a decrease of $0.39 billion from $1.98 billion on March 31, 2020, reflecting the EBITDA loss and capital investments. The adjusted EBITDA loss was $68 million in the 2021 third quarter versus a loss of $97 million in the 2020 third quarter driven by net revenue growth and a decline in operating expenses.

Lowered Expenses

Canopy reported that total SG&A expenses declined by 15% versus the 2020 third quarter, driven by year-over-year reductions in Sales & Marketing, General & Administrative and Research and Development expenses. Sales & Marketing expenses declined by 15% reflecting lower advertising and marketing expenses versus last year’s spending attributable to product marketing and brand awareness campaigns in support of its Cannabis 2.0 products, partially offset by higher sponsorship fees for BioSteel and increased brand spending in support of the U.S. CBD business. G&A expenses declined by 23% and were due primarily to a reduction in costs attributable to corporate restructuring actions taken earlier in the year. R&D expenses decreased by 33% also driven by lower compensation expenses resulting from corporate restructuring actions taken earlier in the year.  Share-based compensation expenses decreased 68% over last year’s third quarter.

Positive Events

While the pain of making these huge changes has sucked the oxygen out of the room, the company has actually managed to make progress on other fronts. The Canadian recreational market share increased to 15.7% during the third quarter. “Our market share grew by 60 bps in Alberta and 120 bps in British Columbia, while it declined by 80 bps in Ontario in Q3 2021 vs Q2 2021. Our market share in Ontario improved by 150 bps during the latest 4-weeks ended January 17, 2021, vs Q3 2021,” said the company in its statement. Canopy said that its market share in the flower category grew by 180 bps sequentially and that it continued to drive market share gains in the growing value flower segment.

Beverages captured 34% market share in the quarter, even as new beverage brands have entered the marketplace. Canopy beverages retained the top 3 brands and our beverage brands are commanding higher velocity versus competitive set on a per SKU basis.

Martha Stewart’s health and wellness CBD products are seeing strong consumer demand, with the brand already outselling over 94% of all CBD brands in the U.S. in just 4 months since launch. Canopy has secured distribution of Martha Stewart CBD collection in 580+ Vitamin Shoppe and Super Supplements retail locations nationwide. Subsequent to quarter-end, Canopy launched CBD pet products under the Martha Stewart CBD and SurityPro CBD brands.

Outlook

The company said that as a result of its organizational changes and cost savings plan it is now projecting a net revenue CAGR of 40%-50% from FY 2022 to FY 2024. The company said it expects positive adjusted EBITDA during the second half of FY 2022 and 20% Adjusted EBITDA margin for the full year FY 2024 and positive operating cash flow for the full year FY 2023 and positive free cash flow for the full year FY 2024.

 

 


Debra BorchardtJanuary 26, 2021
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The doyen of lifestyle branding Martha Stewart has launched her line of hemp CBD products for dogs. Martha Stewart CBD for Pet was created in collaboration with Canopy Animal Health, a division of Canopy Growth Corporation (NASDAQ: CGC) which is focused on improving pet health through evidence-based CBD therapies.
“My dogs are not only my companions, but they are part of my family, and I prioritize their emotional and physical well-being as I do my own,” said Martha Stewart. “Just as CBD can support human wellness, it’s been shown to improve the quality of life for pets as well. With the help of the scientists and veterinarians at Canopy Animal Health, I’ve created CBD oil drops and savory soft-baked chews designed to support the health of dogs of all ages, sizes, and breeds in delicious gourmet flavors that your canines won’t be able to resist.”
Stewart had initially begun using CBD for personal use and launched her CBD gummy line in September 2020. This is her entry into the pet side of the business. She partnered with the veterinarians and researchers at Canopy Animal Health to formulate an irresistible, easy to administer product to support dogs’ emotional and physical wellbeing. These premium gourmet-flavored CBD wellness solutions for dogs were developed by Stewart and inspired by her beloved Chow Chows and French Bulldogs.
The portfolio of wellness supplements is specially formulated to deliver functional products with carefully controlled CBD content for customized daily use in dogs of all sizes and ages. All Martha Stewart CBD for Pet products carries the NASC quality seal, denoting strict adherence to manufacturing, labeling, testing, and marketing guidelines – ensuring the best quality product for your pet. All products are corn, soy and wheat-free, and contain no artificial flavors, colors or preservatives.
Launching online today, Martha Stewart CBD for Pet features savory soft-baked chews for Wellness, Calm, and Mobility and gourmet oil drops in canine-approved flavors such as chicken, blueberry, and cranberry, tailored for both large and small breeds and accessibly priced from $19.99 to $39.99.
  • Soft-Baked Chews for Wellness (Chicken, Blueberry + Anise flavor, 30 ct)
  • Small dogs (5-35 lbs), 7 mg/chew for $19.99
  • Large dogs (36-110 lbs), 19 mg/chew for $22.99
  • Soft-Baked Chews for Calm (Chicken + Cranberry flavor, 30 ct)
  • Small dogs (5-35 lbs), 9 mg/chew for $22.99
  • Large dogs (36-110 lbs), 26 mg/chew for $24.99
  • Soft-Baked Chews for Mobility (Chicken + Blueberry flavor, 30 ct)
  • Small dogs (5-35 lbs), 11 mg/chew for $22.99
  • Large dogs (36-110 lbs), 32 mg/chew for $24.99
  • Wellness Drops (Chicken flavor, 600 mg CBD/bottle) for $39.99

“Canopy Growth is committed to upholding only the highest standards for animal health, with products backed by a wealth of comprehensive CBD research, and the confidence of our dedicated team of cannabidiol scientists and researchers,” said Dr. Bob Menardi, DVM, Director of Veterinary Technical and Educational Services at Canopy Animal Health. “Martha Stewart CBD for Pet is the happy marriage of Canopy’s science-first approach to animal well-being and Martha Stewart’s passion for providing animal lovers with the tools to enrich their pets’ lives. Together, we’re bringing consumers an accessible and effective way to live better.”

Martha’s Cannabis History

Stewart is known for her home show and lifestyle empire that includes a magazine, television shows and numerous products. One of her shows was a cooking program with cannabis king Snoop Dogg called “Martha and Snoop’s Potluck Dinner Party.” While Snoop frequently brought up cannabis in the show and episodes featured cannabis-friendly guests like Whiz Kalifa and Seth Rogen, Stewart always remained coy on the subject. Although she has said that the second-hand smoke on the set probably led to a contact high for her. Conversely, Snoop is not much of an alcohol drinker, but Stewart would often get him to share a drink with her on the set.

All products from the Martha Stewart CBD for Pet collection are available beginning January 26, 2021, on Canopy Growth’s one-stop e-commerce destination, www.shopcanopy.com,www.marthastewartcbd.com, www.directcbdonline.com and www.vitaminshoppe.com.

Debra BorchardtDecember 21, 2020
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Canopy Rivers Inc. (TSX: RIV) (OTC: CNPOF) has entered into an agreement with Canopy Growth Corporation (NASDAQ: CGC) in which Rivers will transfer three portfolio assets to Canopy Growth in exchange for $115 million in cash and 3,750,000 common shares of Canopy Growth and the cancellation of all 36,468,318 Multiple Voting Shares and the 15,223,938 Subordinate Voting Shares of Rivers held by Canopy Growth.

“This is a transformative transaction for our Company that we believe provides substantial value to our shareholders through an enhanced cash position and strategic flexibility, and the collapse of our dual-class share structure,” said Narbé Alexandrian, President, and CEO, Rivers. “Following the closing of the Transaction, we intend to shift our focus to pursuing other opportunities in the global cannabis market, where we believe that our new strategic focus and substantial balance sheet will allow us to successfully execute our revamped strategic plan.”

In doing so, Rivers will receive significant additional cash resources, which the company said would enable it to pursue opportunities in the global cannabis market, including the United States. With this money added to its coffers, Canopy Rivers will have $243 million on hand. The company said it believes that its significant cash position and single-class share structure will make it an attractive transaction partner for cannabis operators, including those in the U.S., looking for access to capital and a path to liquidity.

Transaction Details

The company outlined the following details of the deal in a statement:

  • Rivers will terminate the royalty agreement between its wholly-owned subsidiary Canopy Rivers Corporation (“CRC”) and The Tweed Tree Lot Inc., and will sell the following assets, all owned by CRC, to Canopy Growth (collectively, the “Transferred Assets”):
    • 19,445,285 exchangeable shares in the capital of TerrAscend Corp. (“TerrAscend”);
    • a loan in the principal amount of approximately $13.2 million owed by TerrAscend Canada Inc. (“TerrAscend Canada”) to CRC;
    • warrants to purchase 2,225,714 common shares in the capital of TerrAscend at an exercise price of $5.95 per share, exercisable upon the federal legalization of cannabis in the U.S.;
    • warrants to purchase 333,723 common shares in the capital of TerrAscend at an exercise price of $6.49 per share, exercisable upon the federal legalization of cannabis in the U.S.;
    • its 26% common share interest in Les Serres Vert Cannabis Inc. (“Vert Mirabel”), subject to certain rights of first refusal; and
    • its 15,000,000 Class A preference shares in the capital of Vert Mirabel.
  • The consideration to be received by Rivers in connection with the Transaction will be satisfied by:
    • payment by Canopy Growth of $115 million in cash;
    • issuance of 3,750,000 common shares of Canopy Growth, which will be freely tradeable on the TSX and Nasdaq as of the closing of the Transaction; and
    • cancellation of all of the 36,468,318 MVS and 15,223,938 SVS held by Canopy Growth.
  • Rivers and Canopy Growth will also terminate the agreements that govern their relationship, including the Investor Rights Agreement, Memorandum of Understanding, and Trademark License Agreement.
  • Rivers and CRC will also change their corporate names to reflect the new direction of the Company.

“As a long-time shareholder of Rivers, I am pleased to support this transaction”, said Jason Wild, chairman of JW Asset Management which, on closing, will own 23.9% of the common equity of the Company. “As an active investor in the U.S. cannabis market, JW Asset Management recognizes the generational opportunity for value creation in the world’s largest and most attractive cannabis market. With a significant infusion of cash and liquid securities, and a new strategic focus, we believe that Rivers will be well-positioned to further explore and potentially capitalize on this vast opportunity.”

“The financial and strategic merits of the Transaction to the Company and our minority shareholders are clear,” said Joseph Mimran, Chair of the special committee of independent directors that Rivers’ board of directors established in connection with the Transaction. “On behalf of the Board, we look forward to writing the next chapter in Rivers’ history.”


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