Adam JacksonFebruary 2, 2023
The company reported that it is more $137 million in debt, with $15 million cash and equivalents on the books.
earnings Archives - Page 2 of 43 - Green Market Report
Adam JacksonFebruary 2, 2023Adam JacksonOctober 13, 2022
Shares for The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) ticked up this morning as the company has managed to cut its losses, which had been far outpacing revenue over the past year.
The company, which announced an acquisition deal with SNDL, Inc. (Nasdaq: SNDL) in August, released its third quarter financial report card for the period ending August 31.
Net revenue slumped further to $20.3 million in the third quarter, down 15.4% versus revenues of $24.0 million in the second quarter — as double-digit growth in provincial sales was more than offset by declines in Green Roads and B2B bulk sales, the company said.
Net loss for the third quarter was $27.5 million, a 83% improvement versus the massive $160.8 million loss in the previous quarter, according to company filings. The company reported a loss of 34 cents per share.
“Our third quarter results clearly show that we are executing on the most important initiative in this environment which is cash flow,” said Tyler Robson, Chief Executive Officer of The Valens Company.
Filings show that $(7.6) million cash flow from operations for the third quarter improved by $12.2 million or 61.7% quarter-over-quarter, beating previous guidance of $(9) million to $(12.5) million.
Robson added that the company could have performed even better, “but our momentum was muted by the cybersecurity attacks on the Ontario Cannabis Store and the labour strike impacting the British Columbia market.”
Adjusted gross profit increased by $900,000 in the third quarter to $5.1 million versus $4.1 million in the second quarter.
The company saw $32.2 million worth of cash, restricted cash, and marketable securities at the close of the third quarter.
Valens withdrew all previously given financial guidance due to the proposed acquisition of the company by Sundial.
“During the quarter Valens entered into an arrangement agreement to be acquired by SNDL to create a leading vertically integrated cannabis platform in Canada,” said Robson. “With the current market economic headwinds, we believe the pro forma company will be well positioned to capture market share while also providing our investors with exposure to one of the strongest balance sheets in the industry.
“Moreover, the pro forma entity will be the largest revenue generating cannabis company in Canada with a near term opportunity to become one of the most profitable cannabis companies in Canada.”
Adam JacksonSeptember 15, 2022
Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) posted positive results as revenue rose along with patients — showing the growing demand for psychedelics-centered therapy to treat addictions. The Canadian biotechnology company released its financial report card for the second quarter ending July 31.
Awakn posted revenues of C$339,872 via Awakn’s clinics for the second quarter, versus no revenue in the prior year. The second quarter revenue is up C$86,718, or 34% over the quarter.
The company said that revenue “during the seasonally quietest period of the year for our services” was primarily driven by the provision of ketamine-assisted therapies at the London, Bristol and Oslo Awakn clinics. These clinics were not open during the equivalent period last year.
“Today’s results and revenue growth demonstrate the continued momentum building in our business and the successful execution of our business plan in both pillars of the business: R&D and Commercialization,” CEO Anthony Tennyson said.
Over the quarter, Awakn received approval for its Phase III clinical trial for ketamine-assisted therapy for the treatment of Alcohol Use Disorder. This is the first time a government agency has funded a Phase III trial in psychedelics.
The company received C$2.5 million from U.K.’s National Institute for Heal and Care Research to cover 66% of the costs of the trial. The company will bankroll the rest.
“We have also made excellent progress in strengthening the IP moats for our ketamine and MDMA programs,” Tennyson said, referring to the competitive advantage of its intellectual property.
The company had C$481,830 in cash. It also announced the closing of a private placement – issued 1,880,454 units at a price of C$0.55 per unit raising gross proceeds of C$1,034,250.
“We have also successfully launched our licensing partnership business into the U.S. and Canada, putting us in the unique position of being a biotech with commercial operations in four territories, the U.K., the U.S., Canada and Norway, in only our second full financial year,” Tennyson said
Through the rest of the fiscal year, Awakn said it anticipates receiving regulatory and ethics approval for its Phase III clinical trial for ketamine-assisted therapy, as well as completing its behavioral study of ketamine in gambling addiction.
The company will also look to further its therapeutics commercialization through acquiring more licensing partners utilizing the company’s intellectual property moat ketamine-assisted therapy for treatment of Alcohol Use Disorder in the U.S. and Canada.
Adam JacksonSeptember 14, 2022
CEO: High Tide now sits within striking distance of having the highest revenue of any cannabis company reporting in Canadian dollars.
Adam JacksonSeptember 7, 2022
The company also announced the appointment of a new CEO, Micah Anderson, in conjunction with the resignation of Brandon Kou.
Adam JacksonSeptember 1, 2022
The move comes as overall debt in Canada is declining sharply.
Adam JacksonAugust 31, 2022
Sales of new medical cannabis products in Israel helped drive revenue in the quarter.
Adam JacksonAugust 31, 2022
Emerald Health continues its efforts to peace out on cannabis.
Adam JacksonAugust 30, 2022
Braxia Health clinics continued to see steady growth through the quarter, and the company expanded its research trials.
Adam JacksonAugust 30, 2022
It was near midnight on Monday when Flower One Holdings Inc. (CSE: FONE) (OTCQB: FLOOF) posted results that missed expectations as the company reels from consecutive periods of revenue drop amid financing concerns. The Nevada-based cannabis cultivator and producer released its financial report card for the second quarter ending June 30, 2022.
The company reported revenue of $7.9 million in the second quarter — below the Yahoo Finance Average analyst estimate for revenues of $9.6 million.
The company lent its woes to some of the same issues stated in the previous quarter, citing the pandemic’s effects on Nevada’s cannabis market in addition to a “thriving” illicit market, which has resulted in price compression and decreased statewide cannabis sales. Tourist activity in the state has continued to slowly rebound to pre-pandemic levels, it said, though still remains far below company expectations amid the reductions in conferences, corporate and international travel.
The company posted a net loss of $5.4 million for the quarter, versus a net loss of $1 million for the same period last year. The earnings were a loss of one cent per share, in line with Yahoo estimates.
“Despite best efforts from our team to continue to produce the best quality cannabis we can at the lowest possible price, we face significant market pressures and with our current cash burn rate we must continue to explore all avenues to source working capital, and there is no guarantee that the company will receive this funding,” said CEO Kellen O’Keefe.
Cost of sales for the second quarter was $6.9 million, versus $11 million from the same period last year. The company said that the drop in gross margin is a direct result of wholesale price compression driven by top-line market softening and increased supply.
Second quarter 2022 gross profit before fair value adjustments was $1 million, versus $7.2 million from the same quarter last year. The company said that the drop in gross profit is directly attributable to wholesale price compression, “as well as an increase in consumer incentives, such as pricing discounts and other promotions, in order to maintain market position for both in-house and brand partner products.”
Going Concern
In Flower One’s filing, the company said that it needs “adequate capital resources” to support its ongoing operations and development, adding that assessing its viability as a company “requires judgments about the company’s ability to execute its strategy by funding future working capital requirements.”
The company had cash and cash equivalents of $3.6 million, versus $2.2 million in the same period last year. The company’s overall liability balance has increased by $11.9 million since the end of last year. The company’s total liabilities are $138 million.
“While still navigating through a challenging global economic environment, we continue to strengthen and refine our ability to decrease and control our costs,” said CFO Araxie Grant. “In the second quarter we significantly reduced our operating expenses, and continue to practice the financial discipline required to give the company the chance to achieve positive cash flow.”
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