The Daily Hit is a recap of cannabis business news for Jan. 9, 2023.
ON THE SITE
Tilray May Pivot to Fruit, Beer Sales if Cannabis Remains Slow
Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) may expand its alcohol industry footprint or begin growing fruits and vegetables to make up for a shortfall in the marijuana trade if cannabis sales remain in a slump, according CEO Irwin Simon. Because Congress has let cannabis remain federally illegal, Tilray’s U.S. distribution network is going largely unused. Read more here.
Tilray’s Revenue Falls As Net Losses Grow
Tilray Brands reported financial results for the second fiscal quarter that ended Nov. 30, 2022, as revenue fell 7% from last year’s $155 million to 2022’s net revenue of $144 million. Revenue also fell sequentially from the previous quarter’s $153 million. On a positive note, the company did record $29.2 million in operating cash flow and $25.4 million in free cash flow in the quarter. Read more here.
Illinois Cannabis Sales Topped $1.5 Billion in 2022 Amid Slowing Growth
Recreational marijuana sales in Illinois finished 2022 with more than $1.5 billion, up 13% from 2021. Total sales in December were the highest of any month at $143.9 million, following a seasonal pattern seen in previous years. But the rate of sales growth, 4% over December 2021, was the slowest this year, reflecting continued pressure on discretionary consumer spending from inflation. Read more here.
Columbia Care Announces Layoffs at Pennsylvania Facility
New York-based multistate operator Columbia Care (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) announced it will lay off 73 workers at one of its Pennsylvania cannabis production facilities, effective Feb. 28, in order to “meet the appropriate supply and demand levels of the market.” The facility in question is run by Green Leaf Medical LLC, a subsidiary of Columbia Care, in Saxton, Pennsylvania. Read more here.
Connecticut Tells Medical Marijuana Patients to Stock up Before Rec Sales Begin
A news release from the Connecticut Department of Consumer Protection urged Connecticut MMJ patients to “avoid lines, traffic” on Tuesday, Jan. 10, when recreational cannabis sales launch. That’s because the retail locations will all be hybrid dispensaries that will sell both medical and recreational marijuana, though some retailers will remain medical-only. Read more here.
IN OTHER NEWS
RIV Capital Inc.
RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), a cannabis packaged goods company, scheduled a special meeting of its shareholders for June 6 at 10 a.m. EDT in response to the previously announced shareholder requisition from funds that are controlled or directed by JW Asset Management LLC. JWAM has requisitioned the Special Meeting to, among other things, elect five new directors to the board of directors of the company. Read more here.
Delta 9 Cannabis Inc.
As a part of its 2023 strategic plan, Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: DLTNF) plans to streamline its cultivation operations and right-size capacity at its Winnipeg-based facilities, as well as various other cost cutting measures including reducing public company and investor relations costs. Cultivation capacity will be cut by roughly 40% at the facility, which will result in the temporary layoff of about 40 staff. Read more here.
AmeriCann Inc. (OTCQB: ACAN) released financial and operational results for its fiscal year and quarter ending Sept. 2022. Revenue from operations increased approximately 44% for the year ended September 2022 relative to the year ended September 2021, an increase of $899,268. Read more here.