earnings Archives - Green Market Report

Debra BorchardtDebra BorchardtMay 17, 2019
money4-2.jpg

3min1120

Origin House, formerly known as CannaRoyalty (CSE: OH) (OTCQX: ORHOF)  announced preliminary unaudited revenue of approximately C$11 million for the first quarter ending March 31, 2019. No profit or loss numbers were revealed.

The company also noted that April was off to a good start with approximately C$6.5 million in unaudited revenue. The wholly-owned distribution division, Continuum contributed approximately $4.8 million of that amount in April.

“As we outlined on our Q4 call less than a month ago, momentum is building in the California market for all legal players and for Origin House specifically. Q1 and the month of April were record revenue periods for the Company, and also record periods for the number of top California cannabis brands that our team successfully onboarded,” said Marc Lustig, Chairman and CEO of Origin House. “If 2018 was a year of building for Origin House, 2019 is rapidly progressing toward an inflection point where the platform we have built begins to demonstrate its true financial power, with brands signed early in the year, rolling-out through our network and a robust pipeline of brand opportunities ahead of us.”

The approximate gross margin for the first quarter was 15% and the company said it expects gross margin to continue to trend upwards from the first quarter to the second.

The company announced on May 3, that it had obtained an interim order from the Ontario Superior Court of Justice in which Cresco Labs Inc. will acquire all of the issued and outstanding shares of Origin House. Receipt of the interim order authorizes Origin House to hold its special meeting of shareholders on June 11, 2019.

Lustig added, “I very much look forward to working alongside the team at Cresco Labs Inc. to leverage our complementary footprints and management skillsets to build a dominant North American cannabis consumer brands company.”

Both Cresco Labs and Origin House will release their earnings on May 29.


William SumnerWilliam SumnerMay 15, 2019
TGOD3.jpg

3min2480

After the markets closed yesterday, The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCMKTS: TGODF) reported their first quarter financial results for the period ending on March 31, 2019.

Quarter-over-quarter revenue rose by 28% to $2.4 million. Much of that revenue was generated from the recently acquired HemPoland. The company experienced a net loss of $14.1 million, down $4 million from the previous quarter. Management attributes these losses to continued preparation for commercial cannabis production and its preparations to enter the adult-use market next year.

Quarterly Highlights

The company is on schedule with the construction of production facilities in Hamilton, Ontario and Valleyfield, Quebec. Approximately $46.9 million in investment is dedicated to the sites’ construction.

Close to the end of the quarter, TGOD launched Growers Circle, which sells medical cannabis directly to patients in Canada. The company did not record any revenue from the venture in the first quarter as the bulk of orders were shipped in April. However, revenues should appear on the financial results for the second quarter.

As of March 31, 2019, the company has a balance sheet of $224.4 million of cash and restricted cash, which will be used to fund the expansion of production facilities, operating costs, and international growth.

On May 15, 2019, TGOD management held a conference call to go over in detail the company’s financial results, and playback of the call can be listened to here for up to one week.

“Q1 results are continued proof that we are delivering on our business plan with executional excellence,” said Brian Athaide, CEO of TGOD. “The Company is now bringing to market high quality, premium certified organic cannabis flower and hemp-derived CBD oils. With the construction of the Hamilton facility nearing completion and our flagship Valleyfield facility on track, TGOD will soon be able to sell at scale in Canada and rapidly grow the organic segment that is currently being significantly under-served by the market.”


Debra BorchardtDebra BorchardtMay 14, 2019
brody-tilray-pack1-1280x675.jpg

3min890

Tilray, Inc. (Nasdaq: TLRY) reported that its net loss for the quarter was $30.3 million or $0.32 per share compared to a loss of $5.2 million or $0.07 per share for the prior year period. Even though the revenue increased by 195.1% to $23.0 (C$31.0) million, versus last year’s $7.8 million – it was less than the net loss. The non-GAAP adjusted net loss for the quarter was $25.2 million or $0.27 per share for the first quarter of 2019.

The company attributed the increase in revenue to the legalization of Canadian adult-use in 2018 and the addition of hemp food sales from the Manitoba Harvest acquisition. Tilray attributed the rise in net losses to non-recurring acquisition-related charges. The company reported that the adjusted EBITDA grew to a loss of $14.6 million versus last year’s loss of $3.2 million for the same time period. period.

Tilray said that the increased “net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, the addition of Manitoba Harvest, and the expansion of international teams.”

“We are pleased with our first quarter results and the ongoing, substantial progress our team has made to position Tilray as a global leader in the cannabis industry,” said Brendan Kennedy, Tilray President and CEO. “We have made significant progress integrating our recent acquisitions of Manitoba Harvest and Natura Naturals, accelerating our entry into the United States hemp and CBD markets, and increasing our production and manufacturing capacity in North America and Europe. As we expand our operations around the world, we remain focused on making disciplined investments to maximize the multiple paths to value creation we are aggressively pursuing for our visionary investors.”

Prices Fall

While the company sold more kilograms, the prices fell for what it sold. Total kilogram equivalents sold increased over two-fold to 3,012 kilograms from 1,299 kilograms in the prior year period. Unfortunately for the company, the average net selling price per gram decreased to $5.60 (C$7.54) compared to $5.94 (C$8.00) in the prior year period. The average net selling price excluding excise taxes was $5.28 (C$7.02) per gram for the first quarter of 2019.

The company continues to increase production. Tilray is making an investment of $32.6 million to increase its Canadian production and manufacturing footprint by 203,000 square feet across three facilities in Nanaimo, British Columbia, Leamington, Ontario, and London, Ontario. The investment will expand Tilray’s total production and manufacturing footprint from 1.1 million to 1.3 million square feet worldwide.


StaffStaffMay 14, 2019
hempplant-1.jpg

2min920

Columbia Care Inc. (NEO: CCHW) reported revenue of $12.9 million for the first-quarter of 2019, an increase of 45% over last year’s $8.8 million. The net loss of $25.1 million increased over last year’s loss of $9.7 million for the same time period. The company attributed the increase to its investment in its growth initiatives.

“Our strong year over year growth in 2018 has continued into 2019 with the launch of our state-of-the-art dispensary in Brooklyn as well as our entry into two of the largest medical cannabis markets in the United States, California, and Florida,” said Nicholas Vita, Chief Executive Officer of Columbia Care. “Access to the public capital markets will allow us to accelerate growth as we expand operations in 12 of our 14 existing jurisdictions and enables us to expedite the commercialization of our hemp-based CBD brands into traditional consumer retail channels. By leveraging our extensive patient data and institutional experience, we are committed to delivering products, services, and brands designed to meet the needs of consumers in markets where we believe we can have the largest impact.”

The adjusted EBITDA of ($10.4) million compared to ($2.3) million for the prior year period, reflected the company’s new market expansion, pre-opening facility expenses, organizational growth and expenses related to Columbia Care’s becoming a publicly traded company. Luckily the company is sitting pretty on pro-forma cash of $169.6 million including proceeds from the closing of the company’s go-public transaction on April 26, 2019 with zero debt.

Post Quarter News

Subsequent to the end of the first quarter 2019, Columbia Care has launched a new line of industrial hemp-based CBD products in conjunction with the opening of its newest dispensaries in Brooklyn, NY and San Diego, CA. Additionally, since the beginning of the year, Columbia Care has entered into lease agreements for dispensaries in Delaware, the District of Columbia and 13 new facilities in targeted markets in Florida.


StaffStaffMay 14, 2019
shutterstock_68191825.jpg

3min1400

Surna

Surna Inc. (OTCQB: SRNA) reported revenue of $1,771,000 for the first quarter versus $2,055,000 for Q1 2018, a decrease of $284,000, or 14%. The company also noted that its fourth-quarter 2018 revenue was $2,195,000, representing a quarter-over-quarter decrease of $424,000, or 19%.

In addition to the drop in revenue, Surna delivered a first-quarter net loss of $900,000 versus last year’s net loss of $1,884,000 for the same time period. This was a decrease of $984,000, or 52%. The company said that its 2018 fourth-quarter net loss was $816,000, representing a quarter-over-quarter increase of $84,000, or 10%.

“In late 2018, we announced and subsequently launched a re-set for Surna, with a focus on cost reductions and a revised organic growth plan,” said CEO Tony McDonald. “We believe this plan is being reflected in our modest quarter-over-quarter revenue declines and our cost savings, which reduced our operating cash burn by nearly $300,000 over the prior quarter. We also had net bookings of $4.8 million in Q1 2019, surpassing our previous quarterly high set in Q1 2018. More importantly, since year-end, we are recording new orders/bookings for retrofit and expansion projects. These projects have a more accelerated, predictable completion cycle and revenue stream and should provide revenue momentum over the next couple of quarters as the projects are completed and revenue is recognized.”

On a positive note, the company said it had cash and cash equivalents of $465,000, compared to cash and cash equivalents of $253,000 as of December 31, 2018, an increase of $212,000, or 84%.

GrowLife 

GrowLife, Inc. (OTC: PHOT) reported a 216% increase in revenue for the second quarter to $2,244,279 from $708,936. Still, the company reported a net loss of $2.3 million, an improvement over last year’s loss of $4.2 million for the same time period.

“I could not be more excited to share the tremendous growth that GrowLife delivered in this first quarter of 2019 as shown by the increase in revenues, paired with our over 34% gross margins, compared to last year’s 8-10%,” said GrowLife CEO Marco Hegyi. “As the cannabis and hemp industries continue to experience explosive growth across the globe, GrowLife is keeping pace with this growth, which is a positive sign for our company and our future potential. This quarter’s $2,244,279 in revenue represents nearly half of the sales generated in 2018.”

 


StaffStaffMay 14, 2019
stocks.jpg

7min3380

 CannTrust

CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.

“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CannTrust CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million, we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year.”

CannTrust report that it sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram. The company said that cost of sales per gram sold and cash cost per gram sold were $3.03 and $2.77, respectively, compared to $3.08 and $2.94, respectively, in the fourth quarter of 2018. The total active patient count reached 68,000 on March 31, 2019, a 70% increase over the first quarter of 2018

Looking Ahead

The company acquired 81 acres of land in British Columbia for outdoor cultivation with a potential yield of 75,000kg of production in 2019, subject to regulatory approval. CannTrust obtained all necessary permits from the Town of Pelham for the construction of the 390,000 square foot Phase 3 expansion.

The company is developing innovative products for the expected legalization of new product formats in Canada later in 2019. These products include vape pens, beverages, confectionaries, and healthcare products. CannTrust said it is also making strategic investments into its operational capacity to prepare for expected increases in demand for its products.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.

“Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.

The company said that across Canada, sales revenue from recreational markets increased 63% between FYQ22019 and FYQ32019. Over the quarter, Supreme said it worked with MediPharm Labs Inc. (TSXV: LABS), a leading cannabis extractor, to produce its premium oil products line. As announced in November 2018, under MediPharm and Supreme Cannabis’ three-year contract, 7ACRES will supply a minimum of approximately 1,000 kg of high-quality cannabis trim per year as input to MediPharm for the extraction and production of premium, high-terpene cannabis oil products.

Halo Labs

Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.

The revenue increased 302% over the year with first-time contributions from Coastal Harvest and HLO Ventures the California and Nevada operations, respectively. There was also a 32.8% increase in revenues at the Oregon operation known as ANM, Inc. ANM revenues were $2,879,769 in the quarter versus $2,168,976 during the same period in 2018. Coastal Harvest commenced its first year with revenues of $5,324,369, while HLO posted inaugural revenues of $514,365.

 


StaffStaffMay 13, 2019
MariMed2.jpg

3min1460

MariMed Inc. (OTCQB: MRMD) reported that in the first quarter ending March 31, 2019, revenues grew 69% to $3.5 million versus last year’s $2.1 million for the same time period. The company trimmed its net losses for the quarter to $23,211, a 99% improvement over the $1.9 million loss for the first quarter of 2018.

MariMed delivered a breakeven quarter on a per share basis versus the $.01 per share loss for the same period in 2018. Gross profits grew 90% to $2.2 million vs. $1.2 million for the first quarter of 2018 compared to the same period in 2018.

“We continue to see dynamic growth in our cannabis operations, even as we have become a significant early mover in the burgeoning CBD health and wellness market,” said MariMed CEO Bob Fireman. “We are encouraged by our continued strong operating performance, and look forward to realizing the benefits of investments and initiatives undertaken over the last two quarters, which include the ongoing consolidation of cannabis operations, the opening of additional cannabis facilities in several states, expanding the licensing of our brands and products into additional licensed states, and our multi-pronged entry into the CBD market.”

MariMed Inc. outlined the strategic steps it took in the hemp-based CBD market to complement its existing seed-to-sale cannabis operations. As per the company statement, MariMed said it established MariMed Hemp Inc., a wholly owned subsidiary of MariMed, Inc. to leverage significant opportunities in the hemp-based CBD market for health and wellness products. The company said it is developing new and innovative CBD brands and products that will be distributed to retailers and through representatives to health and medical businesses. It converted debentures in GenCanna Global Inc. into a significant equity position in GenCanna, an industry leader in vertically integrated hemp cultivation and one of the nation’s largest producers of GMP compliant CBD products.

Contributing to the improvement in the first quarter of 2019 compared to the first quarter of 2018, was the company’s share of net earnings in GenCanna of $2.0 million, as that organization benefits from the growing demand for CBD products globally.


Debra BorchardtDebra BorchardtMay 9, 2019
Cronos4.jpg

3min2100

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported financial results in Canadian dollars for the first quarter ending March 31, 2019, with net revenue rising 129% to $6.5 million from $2.9 million for the same time period in 2018. The rise in revenue was due to the addition of adult use sales in Canada. Net revenue increased 15% sequentially from $5.6 million in the fourth quarter of 2018.

The company reported net revenue of $6.4 million. The net income was $427,693 on operating expenses of $13.8 million. The earnings per share on a diluted basis were 48 cents.

“In the first quarter of 2019, the business performed in line with our expectations. We continue to stay laser-focused on our strategy of building our supply chain, distribution, intellectual property and brand portfolios,” said Mike Gorenstein, CEO of Cronos Group. “We’re delighted to have officially closed our transaction with Altria and to kick off a relationship we expect to lead to significant growth and value creation. Altria’s investment and the services that Altria will provide to Cronos Group will enhance our financial resources and allow us to expand our product development and commercialization capabilities.”

CBD Oil Sales

Cronos Group said that benefited from increased sales in CBD oil, which carried no excise tax reduction and increased sales of dry flower.  The company reported that 1,111 kilograms were sold in first quarter 2019, representing a 122% increase from 501 kilograms sold in first quarter 2018, primarily driven by increased cannabis production and the launch of the adult-use market in Canada. Kilograms sold increased 7% quarter-over-quarter from 1,040 kilograms sold in fourth quarter 2018, primarily driven by increased cannabis production.

Cronos said that the cost of sales before fair value adjustments per gram sold was $2.69 in first quarter 2019, representing a 14% decrease from $3.13 in first quarter 2018, and an 11% decrease from $3.02 in fourth quarter 2018. The decrease in year-over-year and quarter-over-quarter was driven by increased productivity in its cultivation operations.
Gorenstein added, “Additionally, the launch of Cronos Device Labs announced earlier this week is an exciting next step on our journey to become a leader in cannabinoid innovation. Vaporizers have become one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to bring the next-generation of vaporizer products designed specifically for cannabinoids.”

Altria Update

In March 2019, Altria Group completed its investment of $2.4 billion in Cronos Group. The Altria Investment represents a 45% economic and voting interest in Cronos Group and a warrant, which is exercisable over the next four years, to acquire an additional 10% equity stake if exercised in full

 


StaffStaffMay 2, 2019
plus-gum-jake-haimark-1-1280x960.jpg

6min1960

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) reported its results for the fourth quarter and calendar year ending December 31, 2018. The quarter’s revenues were $3.3 million and the company delivered a net loss of $2.9 million. This was an increase in sales of 770% over 2017 for the same time period and a 31% sequential increase.

The 2018 full-year revenues increased by 681% to $8.4 million versus the 2017 revenues of $1.1 million. Expenses grew to $7.9 million last year versus $2.5 million in 2017.

The company said that the revenue growth was attributed to sales of Plus Products’ concentrated brand portfolio of four full-time SKUs and one rotating seasonal. In addition, the company said it continued to increase its production capacity, which allowed its distributor to build up inventory to better service over 300 dispensary customers throughout California.

“We remain proud that PLUS had significant growth in both revenue and market share in a year where the greater legal California cannabis market shrank and underperformed expectations due to unclear regulations and an increase in underground market sales,” said Jake Heimark, co-founder & CEO of PLUS Products. “We look forward to greater regulation and increased enforcement in 2019 that will allow the legal industry to continue to prosper and help us continue on our mission of making cannabis safe and approachable for everyone.”

chart

Plus Products said in its statement that according to retail analytics firm Headset, the PLUS Uplift Sour Watermelon gummy was the top-selling branded product of the more than 20,000 products sold across all cannabis categories in California in 2018. Also, according to BDS AnalyticsPLUS “Uplift” and PLUS “Restore” remained the #1 and #2 best-selling edible products in California. Although PLUS had strong growth in 2018, BDS Analytics also found that in 2018 there were 17% less legal sales in California cannabis sales than in 2017 as the California market struggled with licensing challenges, regulatory changes, taxes, and new testing, labeling and packaging requirements.

watermelon

Financial Highlights

Plus Products noted the following financial highlights in its statement:

  • The company’s unaudited cash balance climbed to $22.4 million at the end of 2018, up from $0.2 million at the end of 2017 and $11.1 million as of September 30, 2018, prior to the initial public offering in October.
  • Net working capital was $22.4 million at December 31, 2018 compared to a deficit of $0.1 million the previous year-end. Liabilities at year-end 2018 were only $2.2 million.
  • The company raised $29.7 million in capital, net of capital raising costs, during 2018, including the initial public offering in October.
  •  The loss per adjusted uncompressed weighted average share climbed to $0.07 per share in the 4th quarter 2018, up from $0.05 per share in the 3rdquarter, totaling $0.23 per adjusted uncompressed weighted average share for 2018. The loss for 2018 was $2.9 million for the 4th quarter and $6.8 million for 2018.

Debra BorchardtDebra BorchardtMay 1, 2019
Emerald-Health-Takes-Cannabis-Industry-by-Storm-400x225.jpg

4min1330

Emerald Health Therapeutics, Inc.  (TSXV: EMH) (OTCQX: EMHTF) delivered fourth quarter and 2018 results along with an update of its first-quarter sales. The revenue in the fourth quarter was $1.1 million versus last year’s $279 thousand for the same time period. The net loss in the fourth quarter was $13.9 million, higher than the third quarter’s losses of $6.4 million.

2018

The company reported total sales of $2.1 million for the full year 2018 and total net losses of $30.9 million. Emerald has had losses of $52 million since inception.

“In the past year, we have worked closely with our 50/50 venture partner to bring into full production one of the single largest cannabis growing assets in the world. Pure Sunfarms’ 1.1 million square foot facility is now rapidly increasing production and sales. By leveraging our own technical expertise and infrastructure with strong partners in 2018, we solidified key building blocks with respect to production/supply, distribution, processing in the form of large-scale extraction, softgel encapsulation, and product innovation,” said Avtar Dhillon, MD, President and Executive Chairman of Emerald.

Pure Sunfarms

The company said that its first-quarter sales were $2.6 million. With regards to its BC-based Pure Sunfarms joint venture, Emerald noted that the fourth quarter 2018 sales were $4.9 million and the first quarter sales were expected to exceed $14 million. The company was able to records $1.4 million in the fourth quarter as a share of income from Pure Sunfarms. Emerald entered into supply agreements with Pure Sunfarms to purchase 40% of production in 2018 and 2019 as well as 25% of total production in 2020 through 2022.

Verdalite Sciences Acquisition

Emerald Health also stated that Verdélite Sciences and Verdélite Property Holdings agreed to take $7.5 million of the $22.5 million they were to receive as the final payment for their shares of Verdélite in shares of Emerald in a five-day weighted average price less 10%.  Emerald is to pay the remaining $15 million of the purchase price to the Verdelite on or before May 30, 2019.

On May 2, 2018, Emerald acquired 100% of  Verdélite and the shareholder loans payable by Verdélite, for a total consideration of $90 million, payable 50% in cash and 50% in shares. The company paid $22.5 million in cash upon closing and $45 million was satisfied by the issuance of 9,911,894 common shares of which 4,955,947 Common Shares will be held in escrow until May 1, 2019 pursuant to an escrow agreement.

“By further building upon our intellectual property and strategic partnerships, as well as our own internal expertise, we are working hard to increase market penetration through the development of new and differentiated ingestible and non-combustible products if, as expected, they become allowable before the end of 2019. This will coincide with the ongoing and substantial expansion of the adult-use retail system – creating significant opportunity for the Company in 2019 and what we anticipate to be a year of extraordinary sales growth for Emerald.”

On March 13, Emerald filed a final short form base shelf prospectus for the issuance and secondary sale of up to $150,000,000 of common shares.

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 8 hours

Thanks for taking the time to support media

@GreenMarketRpt – 8 hours

RT : Busy afternoon and thoughtful discussions in NYC – next up with Debra Borchardt () with the Green Market Repor…

Back to Top

You have Successfully Subscribed!