earnings Archives - Green Market Report

Debra BorchardtDebra BorchardtJanuary 15, 2020
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5min1880

Canadian-based cannabis company Organigram Holdings Inc. (NASDAQ:OGI) reported that its first-quarter 2020 revenue rose by 102% over last year to $25.15 million, which beat analyst estimates by $10.24 million. Last year the company reported $12.4 million for the first quarter of 2019. The earnings per share reported by Organigram were flat, but that also beat the estimates by two cents.

Organigram delivered a net loss of $0.9 million compared to net income from continuing operations of $29.5 million last year for the same time period saying it was “largely due to non-cash fair value changes to biological assets and inventories in the prior-year quarter.”

“Despite ongoing industry challenges, we are pleased with solid Q1 2020 results and our return to positive adjusted EBITDA during the quarter,” said Greg Engel, CEO. “Our team was also successful in shipping the first of our Rec 2.0 products as planned and on schedule in December of 2019. We also look forward to the launch of the remainder of our vape pen portfolio followed soon after by our premium cannabis-infused chocolate products. In addition to an exciting line-up of 2.0 products, we are rolling out a couple of new core strains, such as our high THC Edison Limelight, across the country following their success as limited-time-offers in smaller markets.”

The company also noted that it had $1.1 million in a provision for product returns and price adjustments. This compared to the fourth quarter 2019’s  $3.7 million in a provision for product returns and pricing adjustments. “The majority of the Q1 2020 provision was related to THC oils which have seen less than anticipated demand in the adult-use recreational market. The majority of the Q4 2019 provision was related to two slower selling stock-keeping units sold to the Ontario Cannabis Store, comprised of a bespoke order of lower THC dried flower intended to fulfill a supply gap in the market earlier in calendar 2019 and THC oils.”

Putting On The Brakes

The company also stated that it had a total target production capacity of 89,000 kilos per year, it was going forward at a more slow pace. Engel said on the company’s conference call, “We believe consumer demand in Canada continues to be suppressed by the lack of retail stores, particularly in the most populous provinces of Ontario and Quebec. We can more effectively manage cash allocation and put some of the capital to better use elsewhere. And the decision to delay completion as originally designed allows us to preserve flexibility to use portions of the 4C space for other strategic purposes. We will continue to monitor market conditions and believe we can finish foreseeing a relative short time frame should consumer demand warrant.”

Canada 2.0 Rollout

Engel also said on the call that the company’s Rec 2.0 rollout plans include three SKUs of its Trailblazer vape cartridges, and they were pleased with the response to date. “We expect to make our first shipment of our three SKUs of our Feather Edison pens as early as next week. And our PAX Edison cartridge, we expect to have out in calendar Q2. Our chocolate Edison truffle bites are expected to be in market soon as well followed by Trailblazer bars and Edison bars. And rounding out our portfolio of 2.0 products is our dissolvable powder product. Our R&D team has developed a proprietary nano-emulsification technology that is anticipated to provide an initial absorption of cannabinoids within 10 to 15 minutes.”

Capital

The company said that it has $34 million in cash and short-term investments and still has $30 million in available capacity on a term loan, which remains undrawn. CFO Paolo De Luca said, “Given our cash and short-term investments of $34 million, our $30 million of untapped committed credit facility, up to $25 million available under the revolver and a potential uncommitted $35 million under the credit facility plus the $22 million raised under the ATM, we believe we have created the necessary capital and liquidity cushion to write out any volatility in the capital markets.”


Debra BorchardtDebra BorchardtJanuary 14, 2020
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8min1930

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

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

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

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

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

Cannabis Retail Prices Rise

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

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

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

Looking Ahead

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

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

 

 

 


Debra BorchardtDebra BorchardtJanuary 13, 2020
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3min3120

GW Pharmaceuticals plc (GWPH) reported preliminary, unaudited net product sales for the fourth quarter and full-year 2019 and key priorities for 2020. The cannabis-based biotech firm said that it expects total net product sales to be approximately $108 million for the fourth quarter and approximately $309 million for the year ending December 31, 2019.

The bulk of the fourth quarter sales for GW Pharmaceuticals comes from the epileptic drug Epidiolex, which are expected to be roughly $104 million for the fourth quarter and approximately $296 million for the full year. The company said that official results were expected to be posted on February 25th. Cash and cash equivalents on December 31, 2019, were approximately $536 million.

“Our fourth quarter and full year results for 2019 reflect an exceptional launch year for Epidiolex. We are proud of the positive impact this medicine has already had on thousands of patients and believe that this past year provides a compelling foundation for continued success in 2020,” said Justin Gover, GW’s Chief Executive Officer. “Our goal in 2020 is not only to continue to drive Epidiolex growth but also to leverage our world leadership in cannabinoid science to advance our pipeline. In particular, we see significant market opportunity for nabiximols in several indications in the US and will be progressing multiple late stage clinical programs in 2020.”

Looking Ahead

GW Pharmaceuticals said that looking ahead it would work towards broadening the prescriber base for Epidiolex and work with insurance companies to reduce restrictions to the drug.

Build on positive experiences from existing physicians to increase prescribing to appropriate patients. It will also submit and try to obtain approval of the Tuberous Sclerosis Complex indication in both the U.S. and Europe, which would significantly expand the target population. Launches are also planned for five major European countries (Germany, France, UK, Spain, and Italy).

Pipeline

The company also outlined the following items planned for the year:

  • Commence Phase 2b study of a cannabidiol formulation for the treatment of schizophrenia
  • Continue to explore CBDV in autism through a combination of open-label and investigator-led placebo controlled clinical trials with data from one or more of these programs in 2020
  • Execute NHIE clinical program utilizing an intravenous formulation of cannabidiol

 


Debra BorchardtDebra BorchardtDecember 31, 2019
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4min2930

1933 Industries Inc.  (CSE: TGIF) (OTCQX: TGIFF) announced its first-quarter 2020 financial results for the period ended October 31, 2019. Total revenues for the quarter for 1933 were $3.9 million, down 26% from its previous quarter, mainly due to the decline in market share for vape and distillate sales in the recreational market in Nevada. The company said that vaping accounts for 25% of cannabis sales in Nevada while the nationwide decline was 15% during the first week of September, at the state level, Nevada saw a drop of 32% in vape sales.

The net loss for the quarter was $3.8 million, which was lower than the fourth-quarter net loss of $5.6 million. 1933 said in a statement that the decrease in the net loss was due to company-wide cost-cutting measures in order to cut expenses. “All non-essential consulting services were cut as the company remains committed to achieving profitability and increasing shareholder value. Adjusted EBITDA loss was $1.8 million for Q1 2020 compared to $1.0 million for Q1 2019. Expenses were $5.9 million for Q1 2020 and $4.7 million for the same period in 2019.”

“Company revenues for Q1 2020 were impacted by lower than expected sales from vape products, largely attributed to the rampant use of vitamin E acetate in black market products,” said 1933 CEO Chris Rebentisch. “Despite weakness in this segment, we anticipate a recovery in vape sales across both our AMA and Infused subsidiaries as well as the demand in the supply chain for distillate normalizing in Nevada in early 2020. With over 100+ SKUs across 5 product lines as intellectual property and 8 licensing partners, we believe that our diversified product portfolio and product mix will aid us in sustaining our future growth.”

He went on to add, “Cannabis sales continue to remain strong in Nevada, reaching $639 million in its fiscal year ended June 30, while 80% of sales occur in Clark County, according to the Nevada Department of Taxation figures. Over the last two years of operations, we have built AMA and Canna Hemp into valuable and respected brands, we have attracted the top brand names in the industry as our partners in Nevada, and we are expanding our physical footprint to build a sustainable foundation for growth. Our current cash position allows us to continue our operations, service debenture interest obligations and fund our capital needs. We are confident that we will achieve significant growth in 2020, driven by our expanded cannabis production in Nevada, our near-term entry into the California market, increased distribution into new markets for our Canna Hemp line and the development of products in support of our licensing agreements.”

December Moves

It was a busy month for 1933 even after the quarter ended. The company announced the execution of a two-year licensing agreement AMA and The Pantry Company Inc. in which the company will begin the buildout of a GMP-approved commercial kitchen, to be located in its extraction facility in Las Vegas, Nevada. Then 1933  announced a second licensing agreement with OG DNA Genetics. The agreement will grant 1933 Industries license to the DNA brand for the production and sale of hemp-derived CBD products.


Debra BorchardtDebra BorchardtDecember 30, 2019
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5min3590

C21 Investments Inc. (CSE: CXXI)(OTCQB: CXXIF) delivered unaudited financial results for the third quarter of fiscal 2020 ending October 31, 2019 with revenue of $10.58 million, a sequential increase of 7.5% over the second quarter and a big jump over last year’s $305,011 for the same time period. The net loss for C21 was $5.1 million for the third quarter.

“We delivered impressive third-quarter results reflective of the significant progress we made toward our strategic objectives. We rationalized our operations, achieved improved efficiencies, and have sharpened our focus on leveraging the strong brand awareness of our product portfolio. The positive changes we are making better position C21 for success over the long-term,” said Sonny Newman, President, and CEO, C21 Investments.

The company has seen success in its Nevada operations, while Oregon has had to restructure. Oregon reported a net loss of $6.5 million, while Nevada delivered a net profit of $5.6 million.

Nevada

The company reported 172,694 customer transactions in the third quarter at Silver State Relief dispensaries, an 8% increase over Q2, and a 24% increase from Q1. Year-to-date customer transactions now exceed 580,000. C21’s Q3 market share now represents 5% of the total State of Nevada cannabis sales.

C21 said that it continues to leverage the vertical integration of its businesses by bringing our strong Oregon brands online in Nevada, which now include Phantom Farms CBD line of products, pre-rolls, with Phantom flower awaiting state approval of packaging.

Oregon

C21 Investments undertook an appraisal of the Oregon leaseholds and real estate assets, which resulted in a write-down of $4.2 million in the quarter. This one-time charge reduced the quarter’s earnings per share by 5 cents to ($0.06).

“Strategically we set a course to become an efficient and profitable business with strong fundamentals. This has resulted in significant growth in adjusted EBITDA and operating cash flow results for the quarter, positioning the company to become profitable in the near term,” said Michael Kidd, Chief Financial Officer, C21 Investments.

Lawsuits

The company noted it is involved in two different lawsuits.

A complaint was filed in the Oregon State Circuit Court for Clackamas County, on April 29, 2019, by two
current owners of Proudest Monkey Holdings, LLC (the former sole member of EFF), alleging
contract, employment, and statutory claims with an amount in controversy of $1,837,500 against the
Company, its wholly-owned subsidiaries 320204 US Holdings Corp, EFF, Swell Companies Limited, and
Phantom Brands LLC, in addition to three directors, two officers, and one former employee. The Company
and the other defendants wholly deny the allegations and claims made in the lawsuit and is defending and may
counterclaim through the lawsuit. As a procedural update, the Company has filed an Oregon Rule of Civil
Procedure (ORCP) 21 motion to dismiss all of the Plaintiffs’ claims against it, its wholly-owned subsidiaries,
and other defendants; the Rule 21 motions are pending before the court. Further, the Company’s recent
internal investigation, findings and self-reporting of actions and alleged malfeasance by the Plaintiffs at the
EFF facility (discussed more fully below under Oregon Compliance) should serve to bolster the Company’s
defense and potential counterclaims in the litigation. Given that this legal proceeding is in a premature stage
and the Company wholly denies the claims, no provision was recorded

On or about May 30, 2019, Wallace Hill filed a civil claim in the Supreme Court of British Columbia alleging
breach of contract and entitlement to 1,800,000 common shares of the Company, fully vested by March 1,
2019, and damages due to the lost opportunity to sell those shares after such date for a profit. On June 23,
2019, the Company circulated a letter to Wallace Hill terminating the agreement and accepting Wallace Hill’s
repudiation of the agreement based on Wallace Hill’s previously published defamatory comments and
termination of the agreement. Also, on June 23, 2019, the Company filed its response to the civil claim
denying all claims and filed counterclaims alleging breach of contract, a declaratory judgment of termination
of the agreement, defamation and an injunction from further defamatory comments. The civil action is
pending, and it is too early to predict its resolution.


StaffStaffDecember 24, 2019
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2min3870

Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) reported the first-quarter 2020 revenue of $1.44 million, which represented its Nevada operations only. The net loss for the quarter was $896,797 which ended October 31, 2019. The basic and diluted loss per share of $0.01.

“We continue to expand BaM’s geographic footprint developing new, fully-funded facilities comprising retail, production, and cultivation,” stated Michael Mills, President and Interim CEO of Body and Mind. “Our deep cannabis and development experience has been decisive in our success advancing production and cultivation capacity in Nevada, co-developing a new dispensary in Arkansas and developing the ShowGrow San Diego dispensary. The Company continues to execute on its growth strategy, including submitting new state license applications, upgrading and expanding existing assets, and evaluating attractive acquisition opportunities. We look forward to updating you on our continued progress throughout fiscal 2020.”

The company said that the quarter’s income from Ohio would be treated as equity pickup. Ohio is now fully operational and but is currently only 30% indirectly owned by BaM. Body & Mind said it expects it will consolidate revenue from ShowGrow Long Beach when local and state licenses to conduct medical and adult-use commercial cannabis retail operations are issued to NMG Long Beach.

The company is set to expand into Arkansas with in-state partner, Comprehensive Care Group LLC, for a dispensary and fifty plant cultivation facility. The construction of the fully-funded medical marijuana dispensary in West Memphis, Arkansas, and all pre-construction activities have been completed. Work in progress includes final HVAC, drywall.

On October 31, 2019, BaM had $6.89 million in cash and $8.29 million in working capital surplus.


Debra BorchardtDebra BorchardtDecember 17, 2019
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3min2610

Fire & Flower Holdings Corp.  (TSX: FAF) announced that its third-quarter 2019 revenue increased 443% to $13.7 million for the quarter ending November 2 over last year’s $2.5 million for the same time period. It was also higher sequentially over the 2019 second-quarter total revenue of $11.1 million.

The company also delivered a net income of $10.2 million over last year’s net loss of $22.5 million for the same time period. Fire & Flower also noted that the net income per share of $0.08 or $0.07 on a fully diluted basis for the quarter was attributed to accounting gains recorded in other income on the revaluation of the derivative liabilities associated with the convertible debentures.

“With the emerging Canadian cannabis industry facing headwinds, Fire & Flower continues to deliver a track record of growth and meeting our objectives” shared Trevor Fencott, Fire & Flower’s, Chief Executive Officer. “We anticipate meeting our goal of 45 open and operating stores by the end of our fiscal year. Our industry-leading Spark Perks members program ensures that our customers are engaged with the Fire & Flower brand as their cannabis retailer of choice.”

Post Quarter

Since the quarter closed in November, Fire & Flower has received nine additional cannabis retail store licenses and began operating three additional cannabis retail stores in the province of Alberta. The company said it is also preparing to start operations at the remaining six licensed cannabis retail stores prior to the company’s fiscal year-end. In addition to that, Fire & Flower has entered into the final stages of the application process for cannabis retail store licensing in the province of British Columbia.

Convenience Stores

It was just a note, but one of the most important items in the company’s announcement was that it closed the strategic investment with Alimentation Couche-Tard Inc. including an initial investment of $25.9 million (through its subsidiary). The company said that the strategic investment would result in Couche-Tard obtaining a controlling interest in Fire & Flower if all securities issued in connection with the strategic investment are converted/exercised in full. This would mean that a major convenience store chain would own a cannabis company.


StaffStaffDecember 16, 2019
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3min2230

Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF)  gave revenue guidance for the fourth quarter of 2019 in the range of $27 million to $30 million. This is a big jump sequentially for the company as it delivered revenue of $16.5 million in the third quarter of 2019.

“I couldn’t be more thrilled to share revenue guidance for Valens’ fourth quarter, which I believe is only starting to show the power of our platform,” says Tyler Robson, CEO of Valens. “The reason we have built five different types of extraction in house is so that we can facilitate being a one-stop for our customers by having the means to produce a large variety of next-generation white label products. This quarter shows the flexibility of our operations and represents an inflection point in our acceleration into “Cannabis 2.0″ oil-based products. Through the incredible demand we are seeing, we expect white label sales to continue to ramp up as we increase the number of white label contracts and volume of the contracts themselves.”

Valens also said that it expects to report that it has extracted over 24,400 kilograms of cannabis and hemp biomass in the fourth quarter of 2019. “This is roughly in-line with the amount of biomass processed in Q3 2019 and reflects the anticipated shift in focus to white label manufacturing and the demand from our customers to launch a breadth of “Cannabis 2.0″ products into the market. This breadth of products translated into smaller lot sizes and resulted in a temporary pause from the volume ramp seen in previous quarters but also resulted in a significant increase in our revenue per gram of input performance.”

NCIB

In addition to giving a heads up on the increasing revenue, Valens said it is planning to launch a Normal Course Issue Bid or NCIB for the purchase and cancellation of up to 6,275,204 shares, representing approximately 5.0% of the issued and outstanding Shares, calculated on a non-diluted basis.  The NCIB is expected to run for a period of one year from when it is formally commenced.

The company said it believes that the NCIB is a prudent and appropriate approach to maximize shareholder value. Having an NCIB in place will provide the company with the flexibility to purchase shares, from time to time, at the company’s discretion, as part of its capital management strategy, subject to applicable black-out periods and trading restrictions. The NCIB will be funded with cash on hand and the company’s current positive cash flow from operations.

 

 


Debra BorchardtDebra BorchardtDecember 16, 2019
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4min3140

HEXO Corp. (TSX: HEXO)(NYSE: HEXO)  reported its financial results for the first quarter fiscal 2020 ended October 31, 2019, in Canadian dollars. The company reported that the net revenue in the first quarter decreased sequentially to $14.5 million versus $15.4 million in the fourth quarter of 2019. The revenue increased over $5.7 million reported in the first quarter of 2019.

The net loss for the quarter was an eye-popping $62.4 million. The company attributed the increase in loss to “The larger magnitude of the company’s operations, the expanding scale production and sales in the period, and an impairment loss.” Operating expenses increased from $22 million in the first quarter of 2019 to $35.1 million for the first quarter of 2020.

The stock was falling over 8% on the news of the losses and was lately trading at $2.08, down from its 52-week high of $8.40.

“We have done some pretty heavy lifting on our operations, as we work towards profitability in 2020. The choices that we have made and implemented have already led to a 25% reduction in our operating expenses,” said Sebastien St-Louis, CEO, and co-founder of HEXO Corp. “Cost control combined with our multi-brand approach, an updated strain mix, as well as the introduction of new products, will help us increase our market share and total revenue, leading us towards great results in 2020. I am more confident than ever in our ability to continue down this path and to pivot with more speed and assertiveness should market conditions evolve again.”

The company noted that adult-use sales volume during the quarter increased 5% to 4,196 kg from 4,009 kg equivalents sold in the prior quarter. Gross adult-use revenue per gram equivalent decreased to $4.35 in Q1’20 from $4.74 in Q4’19, reflective of the provision for sales returns and price adjustments recorded in the quarter. “The provision is reflective of a general best estimate provision for returns and price adjustments based on the Company’s assessment of sell-through and slow-moving inventory. This was partially countered by the addition of the premium brand Up cannabis, which commands revenue of $7.03 per gram on dried flower during the quarter. The adult-use net revenue per gram equivalent decreased to $3.24 in Q1’20 from $3.51 in Q4’19, reflecting the impact of the provision above.”

Block B Issues

Hexo disclosed on November 15, 2019, that there was a licensing issue in Block B of its Niagara facility, inventory from Block B was quarantined and held back from sales. The inventory was kept on the books and although destruction was a possible outcome, Hexo has said it has reassessed any risks related to such inventory and concluded that it is cleared for sale and will not be subject to destruction. Block B is now fully Licensed by Health Canada.

 


Debra BorchardtDebra BorchardtDecember 3, 2019
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4min6760

Cresco Labs Inc.  (CSE:CL) (OTCQX: CRLBF) said that it has entered into an equity distribution agreement with Canaccord Genuity Corp. in which the company may sell up to C$55 million of subordinate voting shares. Cresco Labs said that it will use the money “for general corporate purposes (including funding ongoing operations and/or working capital requirements), to repay indebtedness outstanding from time to time, discretionary capital programs and potential future acquisitions.”

The deal is called at “At The Market” since the shares will be distributed at trading prices at the time of the sale, prices may vary between purchasers and during the period of distribution. The company said that the volume and timing of sales, if any, will be determined at the sole discretion of the company’s management and in accordance with the terms of the Equity Distribution Agreement.

While such a deal could bring in additional capital, it will also dilute existing shareholders.

Earnings

Cresco recently released its earnings as the company reported on November 26 that its third-quarter revenues were $36.2 million, up 184% year-over-year and 21% quarter-over-quarter. Still, the company delivered a third-quarter net loss of $8.6 million, compared to net income of $1.2 million in the prior-year period.

With regards to the balance sheet, Cresco said it had total assets of $416.5 million, including cash and cash equivalents of $73.7 million and a working capital position of $144.6 million with zero debt on the balance sheet. The company also announced a sale-and-leaseback agreement for its Marshall, Michigan and Yellow Springs, Ohio facilities for $38 million which is expected to close within 30 days.

“In Q3, our team delivered another quarter of positive adjusted EBITDA while growing top-line revenue 21% over Q2 on an identical asset base, demonstrating the value of our long-term strategy of going deep, in the most populous states, and capturing significant market share through wholesale,” said Charles Bachtell, Co-founder and CEO of Cresco Labs. “Subsequent to the end of Q3, we closed the acquisition of Valley Agriceuticals, giving us four dispensaries in New York, one of the most significant hubs of consumer influence in the world. In California, the other market that has an outsized influence on U.S. and global consumer behavior, our wholesale revenue more than doubled in the quarter. We are making meaningful progress on our objective of creating the first national cannabis brand.”

Illinois

With Illinois poised to begin recreational sales in 30 days, the company is ready to seize on its market advantage in the state. Bachtell added, ” One of the best short-term opportunities is in Cresco’s backyard, as Illinois transitions to adult-use legalization in January of 2020. We are well-positioned in the state and will continue to rapidly expand our cultivation and processing footprint, to ensure Cresco will have a strong first-mover advantage. Our brand portfolio has already proven to be popular in Illinois, capturing the largest share of the market, and we are well-positioned to maintain our market share and grow it through the adult-use transition and beyond. Illinois is a perfect example of the success of our strategy to get into prospective markets, go deep, build strong brands and capture disproportionate market share. As we move into 2020, we are set to repeat this model across our platform.”



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