Adam JacksonOctober 2, 2023
The company plans to launch official product sales in New York this month.
Heritage Cannabis Archives - Green Market Report
Adam JacksonOctober 2, 2023Adam JacksonOctober 11, 2022
Multistate operators control a majority of the licenses in the state.
Debra BorchardtSeptember 29, 2022
Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) reported its financial results for the third quarter ended July 31, 2022. Heritage delivered revenue of $10 million, an increase of 111% over last year’s $5.1 million. Heritage said the growth was attributed to a continued increase in its vape and concentrate offerings as well as the launch of the flower vertical.
The company also reported a net loss of $2.7 million, which was an improvement over last year’s loss of $6.6 million for the same time period. Heritage said the losses were trimmed due to the gross margin gains and the cost management in general and administrative expenses combined with a $416,000 unrealized decrease in loss on contingent payables.
The increase over the prior year was also due to an increasing our provincial listings and the continued advancement of the company’s inclusion on third party medical platforms. However, Heritage also noted that the positive impact was partially offset in the quarter due to The British Columbia General Employees’ Union (BCGEU) labor strike given sales to the province were 39% lower than the average of the previous two quarters.
“What we have accomplished in the third quarter is a tremendous achievement by the entire team at Heritage. Given the sector headwinds and after normalizing for isolated events in the quarter, we are proud to state that we have marked our second consecutive quarter of positive EBITDA. It is also our sixth consecutive quarter of increasing revenue which has been driven by the team focusing on growing revenue through the addition of sales channels and the further expansion of our already successful portfolio of products,” said David Schwede, CEO of Heritage. “Our platform approach has protected us from significant challenges across the industry and we will continue to execute on our business strategy, focusing on cost management and driving revenue which was up over 165% from the same time a year ago. Our team is driven to innovate and propel growth, and the delivery of positive financials this past quarter represents an important milestone for the Company and what is ahead for us. Through multiple new brand and product launches on the near-term horizon, as well as the imminent launch of product sales in the U.S. contributing to revenue, Heritage is on a clear path for success.”
Heritage is known for its portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.
StaffSeptember 30, 2020
Heritage Cannabis Holdings Corp. (OTCQX: HERTF) announced its financial results for the third-quarter ending July 31, 2020. All figures are in Canadian dollars unless otherwise noted. The company delivered a gross revenue of $2.4 million in the quarter versus zero for the same time period last year. The net loss of $0.015 million or $0.00 per common share in the quarter improved over last year’s net loss of $4.2 million or $0.01 per common share.
“Our third-quarter revenue continued to show sequential growth however the quarter remained a transitional period for the business as we focused on ramping up our own product sales under the Purefarma and Pura Vida brands that we launched in BC and Manitoba in September”, stated Clint Sharples, Chief Executive Officer of Heritage. “This combined with new contract manufacturing agreements, the launch of our products in additional Canadian provinces, our edibles product launch, and the acquisition of Opticann to expand our U.S. presence will contribute to revenue growth going forward.”
After adjusting for the impact of excise taxes, the company reported net revenue of $2.3 million in Q3 2020 compared to $nil in Q3 2019. Gross margin percentage loss on sales net of excise taxes for Q3 2020 of 42%. Gross margin in Q3 2020 was negatively impacted as a result of the Company recognizing the uncertain settlement of a potential liability that had previously been adjusted given the expected outcome. Excluding the adjustment, the gross margin percentage in Q3 2020 was 48%. While the gross margins prior to the adjustment improved over the prior quarter, the progression of the COVID-19 outbreak had a negative impact on the Company’s revenue, maintaining efficient production and operating metrics.
For the nine-month period ending July 31, 2020, the Company recorded a net loss of $3.8 million or $0.01 loss per share compared to a net loss of $13.2 or $0.03 loss per share for the nine-month period ended July 31, 2019.
As at the end of the quarter, Heritage had cash and cash equivalents of $10.2 million, and working capital of $10.2 million compared to $11.5 million in cash and cash equivalents and working capital of $11.7 million at the end of the fiscal year 2019.
Sharples added, “This combined with new contract manufacturing agreements, the launch of our products in additional Canadian provinces, our edibles product launch, and the acquisition of Opticann to expand our U.S. presence will contribute to revenue growth going forward.”
William SumnerMay 8, 2019
It’s time for your Daily Hit of cannabis financial news for May 7, 2019.
On the Site
Investors Are Bullish On Cannabis, According to KCSA Survey
Investors are feeling bullish about the cannabis industry, according to a new survey released by KCSA Strategic Communications. Titled the Cannabis Investor Survey, KCSA polled over 250 retail cannabis investors about their investments and outlook on the legal cannabis industry in the United States.
Illinois Releases Plan For Full Legalization
This past Saturday, Illinois Governor J.B. Pritzker released the plan for full cannabis legalization which is set to begin on January 1, 2020. Companies that currently had medical cannabis licenses would get a jump on other companies with regards to applying for licenses. According to the plan, new licenses for dispensaries would begin on May 1 and processors, craft growers and transporters would begin licensing on July 1. It wouldn’t be until late 2021, that the next round of businesses would receive licenses.
Long-awaited German Tenders Handed to Specialist Trio
White smoke emanating from Germany’s medical agency signals the wait is over to find out which firms have been awarded medicinal cannabis tenders for Europe’s top market. Two Canadian firms, Aphria, and Aurora Cannabis and Germany’s Demecan have won out, it has emerged. The three companies will split a four-year tender to grow 10,400kg between them. Aphria won five of the 13 lots, with Aurora Cannabis and Demecan handed five and three lots respectively.
In Other News
MJardin
MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) today released their fourth quarter and full year financial results for 2018. Revenue for the year was $27.5 million. Adjusted net loss from operations was $27.4 million and adjusted EBITDA was $12.2 million. “2018 was a year of significant change in the company as we expanded in to another US state, entered the Canadian market via acquisition, and became a publicly traded company on both the CSE and OTC,” remarked Adrian Montgomery, MJardin Chairman of the Board and Interim CEO. “In addition, we have restructured our corporate size and organization to better integrate and align with our core business goals in both countries.”
Heritage Cannabis
Heritage Cannabis Holdings Corp. (CSE: CANN) announced that it has closed a $17.3 million bought deal offering, selling approximately 32.6 million units of the company at a price of $0.53 per unit. Each unit consisted of one common share and one-half of one common shar purchase warrant. Proceeds from the offering will be used to increase extraction capacity and follow-on investments in existing portfolio companies, new domestic and international opportunities, working capital and general corporate purposes.
TerrAscend
TerrAscend Corp. (CSE: TER) announced that it has completed the book-build for its previously announced upsized private placement. The gross proceeds from the offering totaled $52 million. The company is issuing common shares in the private placement at the previously announced price of C$7.64, which is a 5% discount from Monday’s closing price.
Cronos Group
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) announced that is has opened a cannabinoid device R&D facility in Israel. Dubbed Cronos Device Labs, the facility will feature a 23-member team and is comprised of product designers, mechanical, electrical and software engineers, and analytical and formulation scientists. “The launch of Cronos Device Labs is an exciting next step on our journey to become a leader in cannabinoid innovation,” said Cronos Group Chairman, President and Chief Executive Officer Mike Gorenstein. “Vapor is already one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to introduce the next-generation of vaporizer products designed specifically for cannabinoid formulations.”
Canopy Growth
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of Spectrum Therapeutics, a new global brand that will encompass all of the company’s ongoing commercial medical and clinical research operations including Spectrum Cannabis, Canopy Health Innovations , and Bionorica SE-founded C3 Cannabinoid Compound Company. Spectrum will be involved with the production and distribution of full-spectrum and single cannabinoid medical cannabis products; education, resources and support for patients and healthcare practitioners; as well as pre-clinical and clinical research and the development of cannabinoid-based medicines.
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