Entourage health Archives - Green Market Report

StaffAugust 30, 2023


The Daily Hit is a recap of the top financial news stories for Aug. 30, 2023.

On the Site

Biden Administration Calls on DEA to Move Marijuana to Schedule 3

Marijuana rescheduling just got real. On Monday, the U.S. Department of Health and Human Services under the Joe Biden administration formally recommended to its peers at the Department of Justice that marijuana be moved lower on the list of federally controlled substances, from Schedule 1 to Schedule 3. Read more here.

StateHouse Shows Resilience Despite Revenue Dip in Q2

The California-based company’s net revenues for the period were $25.3 million, down versus the $34.6 million in the same period last year. However, gross margins improved to 49.9% in the second quarter from 46.6% in the prior year’s period. Read more here.

Entourage Health’s Revenue Slips in Second Quarter

Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced its financial results for the second quarter ending June 30, 2023. Entourage reported total revenue increased 1% to $13.37 million over last year’s revenue of $13.18 million. However, revenue fell sequentially from the first quarter’s $15 million. Read more here.

Simply Better Brands Q2 Revenue Soars 40% Despite Net Loss

Simply Better Brands Corp. (TSX: SBBC) (OTCQB: PKANF) reported its second quarter financials ending June 30, showing a 40% increase in revenue, reaching $23.6 million, as the company tries to invests in growing its brands and expanding its reach. Read more here.

RIV Capital Details New York Adult-Use Strategy – and it’s Not Retail

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), one of the few “registered organizations” in New York licensed to sell medical marijuana through its Etain subsidiary, made clear that its approach to the Empire State’s recreational cannabis market is to compete on wholesaling and brand-building, not retail. Read more here.

In Other News

California Cannabis Administrative Prosecutor Program

The California Department of Justice has launched a cooperative program to help cities combat the prolific illicit market in the state. Through the program, the state plans to provide resources and education to build localized enforcement programs. Fresno is the first city in the state to participate. Read more here.

Delta Extraction

A Missouri judge denied on Wednesday Delta Extraction’s effort to stop the recall of 62,000 products containing the company’s THC concentrate that the state deemed a “potential threat to health and safety.” Read more here.

Pelorus Capital Group

Pelorus Capital Group entered into a managed service agreement with StateHouse Holdings Inc. to construct and manage operations at Pelorus’ cannabis cultivation asset located in Humboldt County, California. Read more here.

Debra BorchardtAugust 30, 2023


Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced its financial results for the second quarter ending June 30, 2023. Entourage reported total revenue increased 1% to $13.37 million over last year’s revenue of $13.18 million. However, revenue fell sequentially from the first quarter’s $15 million.  The company also reported a loss of $9.5 million.

“Through the transition to a streamlined model and our strategic collaboration with our trusted supply partner, we’ve achieved strong results that are driving us toward a leaner and more operationally efficient framework. We’re optimizing the value of every revenue dollar, magnifying our profit margins, and bolstering our cash performance. These strides enhance our financial resilience and position us to capitalize on the surging demand for our products, charting a promising path for our business growth,” said George Scorsis, CEO and Executive Chair.

Going Concern

Despite the company’s best efforts, Entourage is reporting its financials as a going concern. In the company’s filings, it stated that as of June 30, 2023, it had a working capital of $(120,287,938) (December 31, 2022 – $(101,793,647) and an accumulated deficit of $(338,455,409) (December 31, 2022– $(319,368,021).

Entourage said it thinks it has enough cash on hand to service its liabilities and fund operating costs for the immediate future with the additional sources of funding actually received in February 2023, as well as additional funding expected during 2023. However, there is uncertainty as to how long these funds will last. The company reported that it has total current liabilities of $151 million (December 31, 2022: $141,878,963) with cash on hand of $9.4 million.

In April 2023, the company reached an agreement to sell its Strathroy facility which netted $8.5 million that was used to repay the Bank of Montreal debt. With regard to the credit facility, Entourage said it was in breach to comply with its financial covenant to maintain a certain minimum quarterly EBITDA target as of June 30, 2023, but the company was seeking a waiver.


On a positive note, the company has been cutting costs with selling, general, and administrative (SG&A) expenses declining 13% to $6.85 million. It was primarily driven by layoffs, predominantly linked to the exit of cultivation activities in March 2023.

In June, the company fulfilled its first international order—an impressive 100kg of bulk medicinal cannabis dispatched to Australia through a partnership with Lyphe Australia Pty Ltd., a fully-owned subsidiary of Lyphe Group Ltd. In the company’s statement, it said that four of the company’s premium strains will now be available to medicinal cannabis patients through Lyphe, cementing our global market presence and accelerating our strategic growth agenda.

“In Q2, we maintained a strong commitment to enhancing operational efficiency throughout our business,” highlighted Vaani Maharaj, CFO of Entourage. “Our efforts translated into tangible results: they have effectively trimmed our expense base, balancing cost reduction while maintaining product quality. This marks a transition from the previous quarter, significantly strengthening our company as we continue to stay resolute amid the ebbs and flows of the industry, underscoring our commitment to generating substantial shareholder value.”

Finally, the board opted to take its compensation in stock versus cash.

StaffMay 30, 2023


The Daily Hit is a recap of the top financial news stories for May 30, 2023.

On The Site

Two Dozen Publicly Traded U.S. Cannabis Companies Lost $4 Billion Last Year

Two dozen of the top plant-touching publicly traded marijuana companies in the United States posted a cumulative financial loss of more than $4 billion in 2022 against nearly $9 billion in revenue, according to analysis of filings by Green Market Report. Read more here.

New York Cannabis Regulators Propose Settlement for Lawsuit Hindering Retail Licensing

New York marijuana industry regulators on Tuesday gave initial approval to a settlement deal that is intended to end a legal fight that has stalled retail cannabis permits in the Finger Lakes Region. Read more here.

Numinus Wellness Shares Soar as Landmark Clinical Study of Psilocybin Therapy Begins

Numinus Wellness Inc. (TSX: NUMI) announced on Tuesday that its subsidiary, Cedar Clinical Research, has begun studying a potential new therapy for treatment-resistant depression (TRD) using COMP360 psilocybin. As a result, shares of NUMI jumped more than 30% to lately sell at 19 cents on the news as of the Phase 3 trial was released on Tuesday morning. Read more here.

Entourage Health Revenue Rises on Pre-Rolls, Medical Marijuana

Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced Tuesday a 24% sequential increase in revenue for the first quarter of 2023 ending March 31, with a significant contribution from its medical cannabis stream and adult-use pre-roll sales. Read more here.

YourWay Cannabis Can’t Find An Auditor For Filings

YourWay Cannabis Brands Inc. (CSE: YOUR)(OTC: YOURF) has been delayed in issuing its financial reports because it can’t find an auditor. The company said that since the resignation of its previous auditor Macias Gini & O’Connell LLP in December 2022, it hasn’t been able to find a replacement. Read more here.

In Other News


Surrounded by dozens of cheering people in green clothes, Minnesota Democratic Gov. Tim Walz signed a bill Tuesday to legalize recreational marijuana for people over the age of 21, making Minnesota the 23rd state to legalize the substance for adults. Read more here.


Ohioans 21 and older would be able to cultivate, purchase and possess marijuana if a bipartisan bill passes in the Ohio Statehouse, possibly circumventing a ballot measure campaign to force legalization through. Read more here.

North Carolina

A North Carolina state House of Representatives committee has taken up a medical marijuana legalization bill already approved by the state Senate, and activists are hopeful this year the state may embrace MMJ. Read more here.

StaffMay 2, 2023


The Daily Hit is a recap of the top financial news stories for May 2, 2023.

On the Site

Michigan Turning to State Testing Labs

The Michigan Cannabis Regulatory Agency hopes a new state-run marijuana testing lab can build trust in an industry in turmoil and ultimately root out potential corruption. The Legislature is expected to approve the state budget in the coming weeks, which includes a $4.4 million earmark for the CRA to establish, build and staff its own reference testing lab. Read more here.

Colorado Marijuana Company Cancels New York Entrance, Cites ‘Painful Delays’

Colorado cannabis company Terrapin Care Station decided to reverse course on a previously announced production facility in the town of Auburn, New York, which a company spokesman said was due to delays in getting the broader market operational. Read more here.

‘Dozens’ Line Up for Two First Georgia Dispensary Openings

Despite the restrictive nature of Georgia’s medical cannabis program – and the fact that there are only two dispensaries yet in the entire state – the debut of retail sales was met with jubilation on Friday and “dozens” of patients that swarmed the two shops when they opened for sales. Read more here.

Entourage Health’s Revenue Slips as Losses Mount

Late after the markets closed on Monday, Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced its financial results in Canadian dollars for the fiscal year ended Dec. 31, 2022. Revenue in the fourth quarter fell sequentially to $12 million from the third quarter revenue of $13 million. Read more here.

In Other News


At a hearing of the Wisconsin Legislature’s Joint Finance Committee on Tuesday, members voted 12-4 to eliminate numerous provisions of Gov. Tony Evers’s (D) budget request, including measures on legalizing, taxing, and regulating cannabis in the state. Read more here.

Green Thumb Industries

A blind trust overseeing Gov. Wes Moore’s investment holdings will have to divest a large portion of the Democrat’s holdings in the state’s growing cannabis industry. Topping the list of assets in Moore’s trust is nearly $1.2 million in stock in Green Thumb Industries (OTC: GTBIF) (CSE: GTII). Read more here.


GABY Inc. reported 2022 sales of $21.8 million, down 16% from sales in 2021. California-focused cannabis retailer recorded a net loss for the year of $29.3 million. The company also announced the departure of its CEO, Margot Micallef, who is temporarily resigning for personal reasons. Simon Lileikis, the company’s president, will fill the CEO role on an interim basis. Read more here.

StaffMay 31, 2022


On Monday Canadian cannabis company Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced its financial results for the first quarter ending March 31, 2022. Entourage reported total revenue of $15.8 million, up 17% sequentially over the fourth quarter of 2021. The reported loss was trimmed to $8.7 million.

“Our first quarter results reflect our strongest operating performance to date – mainly from fulfilling some of the largest purchase orders in our Company’s history with exemplary delivery rates while consistently producing higher-grade cannabis at higher efficiencies. All of this contributed to notable increases in our adult-use and medical sales – up over 35% from last year,” said George Scorsis, CEO and Executive Chair, Entourage. “Since implementing our strategic transformation initiatives, we have achieved sequential revenue growth and cost improvements. These initiatives continue to produce tangible benefits, including a 22% gross margin expansion during the quarter. With our improved liquidity position and financial flexibility thanks to our expanded credit facilities and lenders’ support, we have the resources to continue creating long-term value for all our stakeholders.”

The company did note that the weighted average cost per gram from clone to harvest of plants on hand was $0.52 in the first quarter compared to $0.63 in the fourth quarter. The weighted average cost per gram of inventory on hand decreased to $0.51 in the first quarter of 2022 compared to $0.66 in the fourth quarter of 2021 mainly due to the reduced cost of operations.

Balance Sheet Moves

The company announced in March 2022 that it secured an extension of the maturity date of its credit facilities from March 28, 2022, to May 31, 2022, and a deferral of certain of its financial covenants to May 31, 2022. On April 29, 2022, Entourage and LiUNA Pension Fund announced the further upsizing of its existing credit facility with an additional $15 million in funding availability. The non-dilutive funding will be used for general working purposes to drive further commercial growth. Also in May 2022, the Company entered into voting support agreements with certain holders of its 8.5% unsecured convertible debentures, and it announced proposed amendments to the same, to be voted on at a meeting of debenture holders scheduled for June 20, 2022.

“Our focus on driving sales for top-performing products while rigorously adhering to our enhanced financial discipline will support our future growth even as we continue to strengthen our balance sheet,” said Vaani Maharaj, CFO, Entourage. “Revenue from all our sales channels is consistently growing, driven by expanded product availability across retail outlets, broader distribution channels, consistent flow-through of higher-margin products and customer-patient acquisition initiatives. By continuing to improve our operating efficiencies in 2022, we fully expect to see expanded margins while we continue to propel revenue growth through increased sales and market share gains.”

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