earnings Archives - Green Market Report

Debra BorchardtDebra BorchardtMarch 20, 2019
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5min750

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) reported its financial and operating results for the fourth quarter and full year ended December 31, 2018 after the market close on Wednesday. The fourth quarter total revenue of $32 million increased 49% sequentially and 408% over the 2017 fourth quarter. Curaleaf delivered a net loss of $16.5 million, a steep drop from the previous quarter’s loss of $33 million, but the company reported a gain of $600k in the fourth quarter of 2017. 

“2018 was a landmark year for Curaleaf. We successfully completed the largest ever U.S. cannabis RTO, experienced substantial growth, and have firmly set the foundation to capitalize on the shift in public sentiment toward cannabis in the U.S. and capture key expansion opportunities in 2019,” said Joseph Lusardi, Chief Executive Officer of Curaleaf. Lusardi continued, “Curaleaf has become the most accessible national cannabis brand with the largest operational branded dispensary footprint in the country and the recent launch of our CBD line under Curaleaf Hemp. We’ve done this through our strategic presence in highly populated, limited license states, which has served as an important foundation for our aggressive expansion plan across the country.”

Curaleaf opened seven new dispensaries during the quarter in key markets such as Florida and Arizona. 

2018

The total revenue for the full year 2018 increased 298% to $77.1 million versus $19.3 million in the year ending 2017. Retail and wholesale revenue increased 514% to $57.5 million, compared to $9.4 million. 

Full-year 2018 managed revenue was $87.8 million, compared with $28.4 million in managed revenues for the full year 2017. The increase was primarily derived from organic growth in Florida, the opening of three dispensaries in New York and the acquisitions in Massachusetts in March and Arizona in April.

Gross profit before the impact of biological assets for the full year 2018 was $45.9 million, compared to $11.5 million for 2017, resulting in a gross margin of 60%. The significant increase was due to improved operating capacity of the Company’s cannabis business as acquisitions were integrated and new dispensaries opened. Gross profit on cannabis sales were $26.4 million for the full year 2018, resulting in a 46% margin, compared to $1.5 million in the full year 2017.

Financial Highlights

The company raised $400 million in a private placement offering and debuted as a public company on the Canadian Securities Exchange on October 29, 2018

Neil Davidson, Chief Financial Officer of Curaleaf, added, “Curaleaf’s rapidly growing footprint is a direct result of our strong capital position, scaled operations and ability to strategically acquire assets that augment our existing platform.”

Looking Ahead

Curaleaf reaffirmed its full-year 2019 outlook for managed revenue of $400 million and free cash flow of $100 million.  The company said it plans to continue to grow its operations via expansion in three dimensions: acquiring licenses in limited license markets, increasing presence in current markets, and increasing exposure in mass markets. The company expects acquisition-related costs, marketing and selling expenses, and capital expenditures to increase as it expands its presence in current markets and expands into new markets.

 

 

 


Debra BorchardtDebra BorchardtMarch 18, 2019
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4min1360

Tilray Inc. (TLRY) delivered its full year and fourth quarter results on Monday after the closing bell. The stock initially dipped, but then reversed course to move higher by 3% to lately trade at $74.50.

Fourth Quarter

Revenue increased to $15.5(C$20.9) million, up 203.8% compared to the fourth quarter of last year and beating the Yahoo! Finance analyst average estimate for $14.15 million. The company said that revenue was driven by bulk sales, inaugural sales in the Canadian adult-use market and accelerated wholesale distribution in export markets.

Estimates were all over the map with lows at $12 million and highs at $18 million. The company was facing criticism over inventory issues for the fourth quarter as demand for adult use cannabis surprised most cannabis companies in Canada. Tellingly, the company sent out a tweet right before the earnings were released saying that its inventory levels were all stocked up.

“2018 was a very successful year for Tilray with many corporate milestones. Our team made significant progress on our long-term initiatives including increasing production capacity, expanding and strengthening strategic partnerships, and acquiring complementary businesses to accelerate our future growth and leadership position in medical and adult-use cannabis,” commented Brendan Kennedy, President and Chief Executive Officer of Tilray.

Net loss for the quarter was $31.0 million or $0.33 per share compared to $3.0 million or $0.04 per share for the prior year period. Net loss includes non-cash stock-based compensation charges of $4.1 million compared to $34 thousand in the prior year period. Adjusted EBITDA was a loss of $17.8 million compared to a loss of $2.1 million the prior year period. The increased net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, expansion of international teams and costs related to financings and M&A activities.

Total kilogram equivalents sold increased almost three-fold to 2,053 kilograms from 694 kilograms in the prior year period.  The average net selling price per gram increased to $7.52(C$10.05) compared to $7.13(C$9.12) in the prior year period.

Full Year Results

The company’s revenue for 2018 increased to $43.1(C$56.4) million, up 110.0% compared to last year. The increase in revenue was driven by bulk sales, the inaugural sales for the Canadian adult-use market (which began on Oct. 17) and accelerated wholesale distribution in export markets.

The net loss for the year was $67.7 million, or $0.82 per share, compared to $7.8 million, or $0.10 per share, for 2017. Net loss includes non-cash stock-based compensation charges of $21.0 million compared to a $0.1 million charge in the prior year.

Adjusted EBITDA was a loss of $33.1 million compared to a loss of $5.5 million the prior year. The increased net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to continued growth, expansion of international teams, and costs related to financings and the initial public offering (“IPO”).

Total kilogram equivalents sold increased over two-fold to 6,478 kilograms from 3,024 kilograms in the prior year. Average net selling price per gram increased to $6.61(C$8.59) compared to $6.52(C$8.42) in the prior year. In 2018, there was significant revenue growth for extract products compared to dried flower, where extracts represented 49% of the sales mix in 2018 compared to 20% in 2017.

 


Debra BorchardtDebra BorchardtMarch 15, 2019
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4min10130

Terra Tech Corp. (OTCQX: TRTC) reported that its revenues for the year ending in December dropped to approximately $31.33 million versus last year’s approximately $35.80 million. The company blamed the drop on “the significant level of taxes that the State of California placed on cannabis sales which depressed the overall legal cannabis market.” Terra Tech did not break out its fourth-quarter earnings in the press release.

The company also delivered a 2018 net loss of approximately $39.8 million or $0.56 per share compared to a loss of approximately $32.7 million or $0.71 per share for 2017. Expenses also rose as SG&A for 2018 was approximately $43.30 million versus 2017’s $30.80 million.

“We faced several headwinds in 2018 that slowed our progress and impacted top-line results,” commented Derek Peterson, Chief Executive Officer of Terra Tech. “These challenges included navigating the changing regulations in the State of California, which affected sales from our retail businesses in the state, Blüm Oakland and Blüm Santa Ana. Our capacity to generate wholesale revenues in California was also impacted by the regulations which required us to relocate and upgrade our IVXX™ cannabis production to a new facility, effectively halting production in some months.”

“While these factors created challenges for us in 2018, they also drove us to make investments in cultivation and manufacturing infrastructure that will enable us to scale production and achieve greater IVXX™ distribution in California in 2019. The upgraded facility in Oakland, California is nearly complete and will support a ramp in production starting in Q2 2019. Other initiatives to drive revenue growth in the state include the anticipated launch of a branded delivery system in California, and our plans to establish a pop-up retail experience,” continued Mr. Peterson.

“In conjunction with these growth initiatives, we are also implementing strategies to improve fiscal responsibility and improve our bottom line in 2019. This includes streamlining our operations and headcount to mitigate operational burn and completing an assessment of all our assets to explore opportunities to sell certain lower performing assets and redirect resources into accretive opportunities. This strategy will also allow us to avoid accessing the capital markets for funding in the second half of 2019.

The company had $7.19 million in cash as of December 31, 2018, compared with $5.45 million as of December 31, 2017. The company said it had no short-term debt as of December 31, 2018, and that its long term debt was $18.3 million as of December 31, 2018, compared with $6.6 million as of December 31, 2017.

Following the end of the year, Terra Tech agreed to acquire the remainder of the interest in the Blüm Reno dispensary and the building where the facility is located from Forever Green NV and Forever Young Investments, LLC, affiliates of Heidi Loeb Hegerich. The transfer of those interests is subject to the approval of the Nevada Department of Taxation, which the Company expects to receive in approximately 60-90 days. The company also entered into a settlement agreement with Forever Green, Forever Young Investments and Ms. Hegerich to settle the lawsuit between them and the company.


Debra BorchardtDebra BorchardtMarch 14, 2019
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3min2500
HEXO Corp (TSX: HEXONYSE: HEXO) delivered its financial results for the second quarter of the 2019 fiscal year with gross revenue of $16.2 million an increase of 1,269% versus the same time period for last year. Revenues increased by 114% sequentially.
The company reported a net loss for the quarter of $4.3 million, which was a big improvement over last year’s net loss of $8.9 million for the same time period. Sequentially, the net loss decreased 66% quarter over quarter as a result of the increased sales and 16% reduced total operating expenses in the period.
“This quarter not only saw an exponential increase in gross revenue and production, but also saw us continue to execute on our promises including reaching a construction and licensing milestone on our 1,000,000 sq. ft. greenhouse expansion and listing on the NYSE-A,” said HEXO Corp CEO and co-founder, Sebastien St-Louis. “Just yesterday, we announced an agreement to acquire Newstrike Brands Limited. HEXO’s future is very promising, I am looking forward to continually driving shareholder value and achieving milestones with our team.”
Adult Use

The company reported that it produced 4,938 kg of dried cannabis, an increase of 39% over the first quarter of fiscal 2019. It sold 2,689 kg of gram and gram equivalents, an increase of 142% quarter over quarter. The revenue from gross adult-use cannabis in the three months ended January 31, 2019, exceeded total revenues fiscal 2018 by $9,858 or 200%. Oils sales represented 23% of the adult-use revenues. Adult-use sold grams and gram equivalents increased 166% to 2,537 kg from the previous quarter as the company continues to scale up and deliver on its existing supply agreements. Adult-use revenues per gram and gram equivalents increased $0.38 to $5.83 form the first quarter of fiscal 2019.

Medical

Medical revenue per gram and gram equivalent sold increased $0.03 to $9.15 during the quarter, with 152 kg sold.

 

 


StaffStaffMarch 13, 2019
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3min2570

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2018. IIPR generated rental revenues of approximately $4.7 million in the quarter, representing a 111% increase from the prior year’s quarter and in line with the Yahoo! Finance analyst estimate.

IIPR recorded net income attributable to common stockholders of approximately $2.3 million for the quarter, or $0.24 per diluted share, and adjusted funds from operations (AFFO) of approximately $3.6 million, or $0.38 per diluted share. AFFO represented an increase of 344% from the prior year’s quarter.

The company paid its seventh consecutive quarterly dividend of $0.35 per share on January 15, 2019, to stockholders representing a 40% increase from the prior year’s quarter. IIPR also declared its eighth consecutive quarterly dividend of $0.45 per share, which is expected to be paid on April 15, 2019, to stockholders of record as of March 29.

In October 2018, IIP completed an underwritten public offering of 2,990,000 shares of common stock, including the exercise in full of the underwriters’ option to purchase an additional 390,000 shares, resulting in net proceeds of approximately $113.9 million.

After the quarter ended, IIPR’s operating partnership subsidiary completed a private of offering in February 2019 of $143.75 million aggregate principal amount of 3.75% exchangeable senior notes due 2024, which includes the exercise in full of the initial purchasers’ option to purchase additional Notes, resulting in estimated net proceeds of approximately $138.4 million.

The company gave the following update about its portfolio in a statement. As of March 13, 2019, IIP owned 13 properties that were 100% leased to state-licensed medical-use cannabis operators and comprising an aggregate of approximately 1,128,000 rentable square feet (including approximately 159,000 rentable square feet under development/redevelopment) in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio and Pennsylvania, with a weighted-average remaining lease term of approximately 14.3 years.

IIPR had invested $161.2 million in the aggregate (excluding transaction costs) and had committed an additional $37.7 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties.  IIPR’s average current yield on invested capital was approximately 15.1% for these 13 properties, calculated as the sum of the initial base rents, supplemental rent (with respect to the lease with PharmaCann LLC at one of IIPR’s New York properties) and property management fees (after the expiration of applicable base rent abatement periods), divided by IIPR’s aggregate investment in these properties (excluding transaction costs and including the aggregate potential tenant reimbursements of $37.7 million).

 


Debra BorchardtDebra BorchardtMarch 13, 2019
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4min7730

Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) delivered fourth-quarter revenue of $10.5 million for an increase of 380% over the previous year’s $2.1 million. Acreage reported a whopping fourth-quarter net loss of $217.6 million. The pro forma revenue* for the fourth quarter was $22.9 million and the pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items, for the fourth quarter was $10.8 million.

Fiscal 2018

The full year fiscal 2018 revenue of $21.1 million increased 173% over last year’s $7.7 million. The pro forma revenue*  was $77.2 million for the full year fiscal 2018. The full year fiscal 2018 net loss of $219.7 million was primarily driven by non-cash charges and non-recurring items. The pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items was $30.3 million for the full year fiscal 2018.

Growth

The company has been on a tear with its expansion During the fourth quarter of 2018, Acreage opened two dispensaries under its The Botanist brand in Buffalo, NY and Worcester, MA, and acquired one dispensary in Thames Valley, CT, ending the year with 19 dispensaries (as of today, Acreage has 24 operational dispensaries).

Growth doesn’t come cheaply. During 2018,  Acreage spent over $200 million of capital in various strategic transactions and invested approximately $37 million to build out our operations. $46 million alone was spent in the fourth quarter of  2018. $22 million was invested in its subsidiaries and $15 million advanced to our managed entities to facilitate build-outs outs in the year.

 

Balance Sheet

According to the company’s presentation,  Acreage has $105 million in cash and cash equivalents and $149 million of highly liquid short-term investments on hand as of Q4’18, compared to $16M of cash as of Q4’17. The company raised $314M from pre-RTO private placement; completed RTO and listed on the Canadian Securities Exchange. Acreage President George Allen said at this time the company doesn’t anticipate raising more money.

Kanna Acquisition

Acreage also announced it was acquiring Kanna, Inc. which holds a license to operate a cannabis dispensary in Oakland, CA. as the company enters the California market. It’s an all-stock deal valued at $11.5 million that is expected to close in the second quarter of 2019. That’s a bargain when one considers that a nearby dispensary is doing $40 million a year.

Acreage said it will issue up to 460,000 Subordinate Voting Shares at a deemed value of $25 per share. Shares are currently trading in the mid-teens, but Allen pointed out that when the company did go public it was at $25 a share. “It’s a message to our shareholders, that we’re not willing to dilute ad nauseum shareholder value,” said Allen.

“I could not be more excited about our first dispensary operation in California, especially one in a limited competitive market. While this is our first, it is nowhere near our last, as we expect to significantly expand our dispensary footprint in the state over the coming months,” said Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage Holdings, Inc. According to the statement, Oakland allows just 16 adult use dispensaries to serve a population of more than 400,000.

The dispensary is located at 2019 MacArthur Blvd., in Oakland, but it will open in the second quarter of 2019, under Acreage’s dispensary brand The Botanist.

 

 


Debra BorchardtDebra BorchardtMarch 12, 2019
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3min2370

Synthetic cannabis pharmaceutical company Corbus Pharmaceuticals Holdings Inc. (CRBP) reported earnings for the fourth quarter and the full year ending in December. For the quarter, Corbus delivered a net loss of approximately $17,306,000 or a net loss per diluted share of $0.30, compared to a net loss of approximately $10,694,000, or a net loss per diluted share of $0.20, for the same time period last year.

Revenue from awards for the quarter was $1.9 million. For the full year, revenue from awards increased by approximately $2.4 million to $4.8 million due to revenue recognized from the up to $25 million Development Award Agreement with the Cystic Fibrosis Foundation.

For the year Corbus delivered a net loss of approximately $55,672,000 or a net loss per diluted share of $0.98, compared to a net loss of approximately $32,422,000, or a net loss per diluted share of $0.65 in 2017.

The company entered into a strategic collaboration with Kaken Pharmaceutical Co., Ltd. for the development and commercialization of lenabasum in Japan. This deal included a $27 million upfront payment and up to $173 million of additional potential milestone payments and double-digit royalties.

“We made meaningful advancements in the clinical development of lenabasum, and we also completed two transformational commercial transactions, which expanded our clinical pipeline and broadened our global commercial opportunity. We believe the acquisition of more than 600 ECS-targeting drug candidates will fuel sustained growth of our platform and cement our leadership position in the field. The most advanced candidate, CRB-4001, is expected to enter Phase 1 clinical study later this year and to be followed by a Phase 2 study in patients with NASH. Our strategic collaboration with Kaken Pharmaceutical in Japan is our first step towards commercializing lenabasum in key markets outside of the United States,” commented CEO Yuval Cohen.
Lenabasum
Cohen said he is hoping for FDA approval of lenabasum in 2021. According to the company, lenabasum is a rationally-designed, oral, small molecule that selectively binds as an agonist to the cannabinoid receptor type 2 (CB2). Data from animal models and human clinical studies suggest that lenabasum can reduce expression of genes and proteins involved in inflammation and fibrosis. Lenabasum has also demonstrated promising activity in animal models of skin and lung inflammation and fibrosis in systemic sclerosis (SSc). Lenabasum has been active in animal models of lung infection and inflammation in cystic fibrosis and joint inflammation and scarring in rheumatoid arthritis.

Debra BorchardtDebra BorchardtMarch 1, 2019

3min2390

MedMen Enterprises Inc.  (CSE: MMEN) (OTCQX: MMNFF) reported its second quarter of fiscal 2019 with revenue of $29.9 million. This represents a 39.1% quarter-over-quarter increase over the first quarter of fiscal 2019 ending September 30, 2018.

California is the main driver of sales. MedMen’s eight retail locations primarily in Southern California reported a combined $23.7 million in revenue. The company said that if the revenue included pending acquisitions it would have been $49.5 million for the quarter.

Unfortunately, the company is continuing to post losses. MedMen delivered a total net loss of $64.6 million compared to a net loss of $66.5 million for the first quarter. So, the losses have been trimmed somewhat. The net loss per share in the second quarter was $0.25 versus a net loss of $0.27 for the first quarter.

Gross profits before biological asset adjustment, were $13.3 million, as compared to $0.5 million in the second fiscal quarter of last year. The gross profit margin after biological asset adjustment was 53%, compared to 45% in the previous quarter.

“Our strong second quarter results support MedMen’s commitment to drive strong retail and sales performance, while efficiently scaling the Company and executing on our growth strategy,” said Adam Bierman, MedMen chief executive officer, and co-founder. “As we emphasized last quarter, we are in a new phase of growth, one focused on continuing to operationalize our industry-leading retail footprint and increasing our profitability. We are confident in the team we’ve built to drive our success.”

The company said that “In an effort to increase transparency, provide a better understanding of MedMen’s business, and ensure sales comparability between years, it is basing accounting on the 4-5-4 calendar structure. Additionally, the Company is now breaking out performance in the MD&A by retail, cultivation and manufacturing, corporate SG&A and pre-opening expenses.”

The company has been criticized for its high expenses. MedMen noted that “Of the total $40.9 million corporate SG&A expenses, $14.4 million was corporate payroll, which included the buildout of several teams within the company including finance and accounting, digital, business intelligence and marketing. SG&A expenses also included $8.6 million in marketing and branding as compared to $4.8 million in the first quarter of 2019.”

 


Debra BorchardtDebra BorchardtFebruary 25, 2019
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5min1510

48North Cannabis Corp.

48North Cannabis Corp. (TSXV: NRTH) released its financial and operating results for the three and six months ended December 31, 2018, with revenue for fiscal second-quarter of C$2.4 million. This was an 88% sequential increase over the first quarter. The company reported a net loss of C$872,628, down from the first quarter loss of $1 million.

48North successfully achieved all of the milestones it targeted in Q2. These included: sustained revenue growth; closing both the Good & Green acquisition and the $10,000,000 private placement,” said Alison Gordon, co-CEO of 48North.

The company repaid $2,300,000 in mortgage debt for the Morton Avenue Good & Green facility and closed a $7,045,000 non-brokered private placement bringing a total of $10 million in new equity to the Compan

“Our strong business performance throughout the quarter drove positive EBITAO and a significant increase in revenue growth quarter over quarter,” Ms. Gordon continued. “Subsequent to the end of the quarter, 48North completed the operational build-out and license application for the Company’s 100-acre outdoor cannabis farm in Brant County, Ont. In addition, the Company signed a supply agreement for organic sun-grown cannabis with the SQDC — the first agreement of its kind in Canada — a significant milestone that demonstrates 48North’s position as the industry leader with respect to the expected development and distribution of next-generation cannabis products, including topicals, cosmetics, vape pens, edibles and beverages.”

James E. Wagner Cultivation Corp.

 James E. Wagner Cultivation Corporation (TSX VENTURE: JWCA) reported its unaudited financial and operational results, for the first quarter of fiscal 2019 ending December 31, 2018. The company reported $549,000 in operating revenue, but a net loss of $2.3 million.

“The first quarter of 2019 saw marked improvements in several operational capacities at JWC,” said Nathan Woodworth, President, and Chief Executive Officer. “Additional staff were added to ensure training is completed before the move to JWC 2. The pilot facility was in full production for the quarter, following the upgrade of the HVAC system to a new highly advanced more customized solution. This allowed for a rapid increase in yields. For the quarter JWC produced a variety of strains at an average yield per plant of 210 grams. Very low crop loss numbers were recorded, at less than 1% of flowering plants. A new product was introduced to our online store front to overwhelmingly positive reviews, and 4 new products were prepared for active production in the following quarter. JWC is excited about the coming months as we take these advancements and begin to scale up in to our second facility, JWC 2.”

James Wagner said that it finished the quarter with approximately 172 kg of dried cannabis and 14 liters of formulated cannabis oil in its storage vault. During Q1 2019, JWC focused on preparing to move into its second, large-scale facility, while beginning to ramp up sales both direct to patient and through the Canopy Growth Corporation’s (CGC)  CraftGrow store.

Work continues at the Manitou Drive facility. Construction has continued on phase 2, and phase 1 is ready to begin cultivation activities as soon as a license is granted by Health Canada. JWC continues to work with Health Canada and has received a Confirmation of Readiness for JWC 2, one of the last hurdles before receiving a license to cultivate. Phase 2 is expected to be completed and ready for cultivation during Q3. Once the second phase comes online, JWC will have the capacity to increase production by more than 400% from the end of calendar 2018.


Debra BorchardtDebra BorchardtFebruary 15, 2019
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4min1990

Canopy Growth Corporation (WEED.TO) (CGC) released its financial results for the third quarter fiscal 2019 ending December 31, 2018. Net income for the quarter was $74.9 million compared to a net income of $11.0 million for the same time period during last year. Net revenue increased 282% to $83 million over last year’s $21.7 million for the same time period. Total gross revenue increased 350% to $97.7 million.

The company reported that the adjusted EBITDA in the third quarter fiscal 2019 amounted to a loss of $75.1 million compared to a loss of $5.7 million in the same period last year. The net loss per diluted share was $0.38. Cannabis shipments totaled 10,102 kilograms and kilogram equivalents.

“Our successful first full quarter with recreational sales in Canada reinforces our long-held strategy of making meaningful investments early in order to secure market share,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “With a strong cash position, we added strategic assets and IP through acquisitions to accelerate the sophistication of our inputs with ebbu, and our consumer-facing outputs with Storz and Bickel.”

Oils, including the company’s softgel capsules, accounted for 33% of product revenue during the quarter, up from 23% of product revenue in the same period last year.  During the third quarter of fiscal 2019, approximately 30% and 42% of recreational and medical sales, respectively, were comprised of oils, including softgel capsules.

The company said that during the transition from a “medical marijuana” business to a business producing clinically proven cannabinoid therapies, Canopy experienced a decline in its Canadian medical market demand in the quarter. The decline may be attributed to the initial adjustment to the available legal recreational market which patients can also access.

Adult Use Sales

Linton added, “The Canadian recreational cannabis market will be dominated in the long term by businesses delivering excellent products and consumer experiences. Sales from the first wave of products and retail environments launched in the third quarter demonstrate that we are capturing consumers’ attention.”

Canopy said that it placed a significant focus on shipping core products, backed by deep inventory levels, into physical retail store networks across the country. At the end of the quarter, Canopy said that it began shipping its softgel capsules and pre-rolled joint products in recreational channels across the country. Canopy Growth finalized its acquisition of HIKU during the second quarter, adding the Tokyo Smoke retail channel to complement its Tweed banner stores.

 

 



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