Humble & Fume Archives - Green Market Report

StaffNovember 30, 2022


The Daily Hit is a recap of cannabis business news for Nov. 30, 2022.


International Cannabis Reform Ramps Up in Europe, South America

Global cannabis reform is gaining momentum. What started as a ripple in three countries has become a global policy movement. While many countries, primarily in Africa and Asia, continue to ban cannabis, a hotbed of reform activity is transpiring everywhere else. Read more here.

Cannabis Company Finds Novel Solution to Real Estate Woes

After struggling to find a downtown office landlord willing or able to house its headquarters, one of Chicago’s publicly traded marijuana companies has found a different solution: moving to a massive apartment complex. Verano Holdings (OTC: VRNOF) (CSE: VRNO) signed a 12-year lease for roughly 25,000 square feet in the office portion of Three Old Town Park. Read more here.

Eleventh-Hour Lobbying Push for SAFE Banking Under Way

The clock is ticking on the current Congressional session, with the 535-member body set to adjourn for the two-year cycle on Jan. 3. With that, the fate of the SAFE Banking Act is still very much up in the air, with no solid intel about exactly what will happen to the measure. Read more here.

SpringBig to Cut Nearly One-Quarter of Staff

SpringBig Holdings Inc. (Nasdaq: SBIG) will cut 23% of its staff in an effort to “right-size its expense structure,” the company announced Wednesday. The staff cuts, which total 37 positions, will be undertaken through layoffs and attrition. Read more here.

Latest cannabis earnings:


Icanic Brands Co.

Icanic Brands Co. (CSE: ICAN) (OTCQB: ICNAF), a multistate operator of premium cannabis brands in California, reported sales of $7 million for the quarter ended Sept. 30, a year-over-year increase of 180%. The company reported a net income for the period of $10.6 million. Read more here.

TerrAscend Corp.

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a North American cannabis operator, announced that its subsidiary, WDB Holding MI Inc. (DE), and all subsidiaries of TerrAscend refinanced an existing senior secured term loan of $55 million. The amendment provides for a senior secured term loan with a principal amount of $25 million, plus incremental term loans of $30 million at the option of TerrAscend. Read more here.

Franchise Global Health

Franchise Global Health Inc. (TSXV: FGH) (FRA: WV4A) reported revenue of $11.9 million for the third quarter of 2022, a year-over-year increase of $11.7 million. The company noted that during the quarter, it entered into an agreement to acquire Flora Growth Corp. (Nasdaq: FLGC).

Adam JacksonOctober 14, 2022


After the markets closed on Thursday, Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) posted earnings results that saw falling revenue and rising losses, despite the company touting its quarterly savings and high long-term upside. The distributor of cannabis and cannabis accessories reported its financial results for the fourth quarter and year ending June 30, 2022.

Revenue for the fourth quarter totaled $15 million versus $19 million in the same time period last year. The company has previously said that dips in revenue could be lent to its departure from “low-margin, slow-moving accessories” for products with higher yields.

Net losses came out to $7.7 million for the quarter, versus $2.5 million in the previous period. The company said that the rise in losses was driven by a one-time asset impairment expense of $3.2 million related to the closure of a concentrate processing facility. The organization incurred rising costs of $2.8 million to launch the distributing business.

Earnings were a loss of seven cents per share.

“As our business fundamentals are improving, we can prioritize the market expansion of the Cannabis business that will generate positive gross margins,” said Joel Toguri, Chief Executive Officer of Humble.

Full-year revenues totaled $66 million versus $74 million in fiscal 2021. Net losses rose year-over-year, ending 2022 with a loss of $16.1 million versus $12 million in 2021.

Since Humble received an $8 million investment from Green Acre Distribution last November, the California cannabis distribution business says is fully operational with statewide sales coverage, trade marketing, and physical distribution capabilities. It posits that the business can deliver products to 95% of California dispensaries within a twenty-four turnaround. The company owns two warehouses and 15 delivery vehicles.

Humble also said that cannabis now represents 17% of gross margin dollars in the fourth quarter versus 10% in the prior quarter.

In April, the company formed HC Solutions Holdings Inc. — a joint venture with their investor Green Acre Distribution to further the cannabis distribution business throughout the United States, initially focused on accelerating the company’s expansion into cannabis distribution operations in California.

Since then, Green Acre Distribution has injected around US$8 million into the venture, granting it 45% ownership. Green Acre Capital funded its investment through an option agreement with Johnson Brothers, a leading wine, spirits, and beer distributor in the United States.

Also last month, Humble entered an exclusive sales and distribution agreement with leading cannabis brand Cookies. Humble said that it would distribute all products marketed and sold under the Cookies brand name in California. Sales and marketing support will include multi-channel advertising, promotional activities, and the stewardship of a focused brand ambassador team.

“As we look ahead, we are focused on accelerating our Cannabis expansion efforts in the U.S., building stronger relationships with our brand and retail partners throughout North America, and seeking out the most sought-after cannabis brands,” Toguri said. “We are committed to becoming the industry-leading distributor of cannabis and accessories, generating a sustainable profit and positive cash flow to deliver long-term shareholder value.”

StaffSeptember 13, 2022


The Daily Hit is a recap of cannabis business news for Sept. 13, 2022.


Intra-Industry Ballot Measure Fight Brewing In Several L.A. County Cities

A political fight is building to a possible November crescendo in at least three beach towns in Los Angeles County, in which state-licensed marijuana companies are both supporting and opposing multiple ballot questions that are, on their face, pro-cannabis.

At issue are local ballot measures in Hermosa BeachManhattan Beach and Redondo Beach that would  force the cities to issue new cannabis business permits. But not everyone is happy with how the measures achieve that. Read more here.

PharmaCann Buys The Clinic For Undisclosed Amount

PharmaCann, one of the nation’s largest privately held, vertically integrated cannabis companies, is buying all four locations of The Clinic, a group of boutique Colorado marijuana dispensaries. The amount paid was not disclosed.

The planned acquisition will likely see all The Clinic locations rebranded to the popular LivWell brand.  Upon completion of the acquisition, LivWell, the state’s leading cannabis brand, will enjoy the largest presence in Colorado with 26 dispensaries in the Centennial State. Read more here.

Leading Testing Lab Could Soon Detect Same-Day Cannabis Use

Quest Diagnostics (NYSE: DGX) struck a deal with Hound Labs to become the sole provider of test results for a breathalyzer that can identify cannabis use within a few hours of testing. The partnership will give employers the ability to figure out whether an employee ingested or inhaled cannabis products immediately before or during the workday. Read more here. 

Fire & Flower Revenues Tick Down, Tech Services Improves

Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWD) posted mixed results as it faced industry-wide headwinds during the second quarter ended July 30. The company found some buoyancy during the period with its tech services, such as its delivery and member program.

Same-store sales were down year-over-year but increased sequentially on strength from the Spark Perks Member Pricing program. Read more here.

Green Market Report’s Cannabis Tech Awards Profile: CannaBiz Media, Best Platform Design

Sales and marketing are critical aspects of growing a business, but Cannabiz Media’s License Database goes further than any other customer relationship management platform to meet these goals for cannabis businesses. This is why Green Market Report honored Cannabis Media at the first ever  Green Market Report Tech Awards in San Francisco. Read more about Cannabiz Media’s innovative platform here.


Green Acre Capital Distribution Corp. Increases Stake In US Distribution Joint Venture With Humble & Fume

Green Acre Capital Distribution Corp. invested $6 million into HC Solutions Holdings, its joint venture with cannabis distributor Humble & Fume (CSE: HMBL) (OTCQX: HUMBF), increasing its ownership interest to 45%. Green Acre funded its investment through an option agreement with Johnson Brothers, a wine, spirits and beer distributor in the United States. Read more here.

StaffMay 26, 2022


Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) reported its third-quarter fiscal 2022 financial results for the fiscal third-quarter ending March 31, 2022. Revenue fell to $16 million in the quarter versus last year’s revenue of $18 million for the same time period. Humble & Fume said that the revenue decreased as a result of management’s focus on selling higher-margin products and moving away from lower-margin sales channels.

The net losses decreased to $2.5 million from last year’s $5.8 million. The decrease in net losses was primarily driven by the decrease in accretion expense on the convertible debentures issued in May 2019 and exercised on June 14, 2021, resulting in the conversion of the debt to share capital.

Joel Toguri, Chief Executive Officer of Humble, said, “We are laser-focused on cost-cutting, optimizing the business, improving on our end-to-end customer experience, and aggressively pursuing expansion opportunities in the US. Our commitment to right-sizing the business has resulted in faster turnaround times, improved accuracy in our fulfillment, and a meaningful reduction in our inventory. We have made significant improvements to our cost base while stabilizing revenue and improving gross margins.”

The operating loss for the quarter decreased to ($2) million from ($3) million compared to the same period in the prior year. The decrease in operating loss was driven primarily by increased gross margin.

Toguri added, “Our expansion into cannabis distribution in the US is ahead of schedule. In Q3, the build-out of our cannabis operations in California resulted in the on-boarding of multiple partners, including California’s preeminent flower brand Canndescent and industry-leading brands such as Leune, Proof, Highsman, and Humboldt Farms. We are very proud to be associated with these brands who share our vision for the future growth of the cannabis industry. They have chosen us as partners because we are dedicated to helping them grow their businesses, and we are committed to moving with pace.”

The company said that expansion into cannabis distribution in California is ahead of schedule and operational, with multiple tier-one brand partners onboarded in the first three months with an anticipated annualized revenue contribution of $25-35 million which is slated to start in Q4 (April – June 2022).

StaffNovember 26, 2021


After the markets closed on the Wednesday before Thanksgiving, Humble & Fume Inc. (CSE: HMBL)  reported its first-quarter fiscal 2022 financials for the three months ended September 30, 2021 with revenue falling to $18.1 million versus $19.4 million for the same time period in 2021. The company blamed the drop in revenue on a decline in sales as management in the U.S. continued to focus on selling high-margin products with competitive pricing and discounting tactics. Humble said that the Canadian operations saw revenue climb to $8.6 million, a 27% increase year-over-year as a result of the expansion of sales agency partnerships, along with higher margin sales from its core accessories business.

Humble delivered a net loss of $1.7 million, or $0.02 per diluted share, compared to a net loss of $4 million, or $0.07 per share, for last year’s first quarter. The company attributed the improvement in net losses year-over-year to the settlement of the convertible debenture on June 14, 2021, resulting in nil accretion and fair value adjustment.

“As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers,” said CEO Joel Toguri. “We are encouraged by the strong revenue growth we saw this quarter from our Canadian operations, which was driven by our expanding cannabis brands partnerships and higher margin sales from our accessory portfolio. We have made huge strides towards our expansion into cannabis distribution in the United States. Last week’s announcement of Johnson Brothers investment, through Green Acre, is transformative for the legal cannabis distribution market in North America. Together with our acquisition of Cabo Connection, Humble is executing upon our business strategy and readying for its launch in California.”

Closing Florida

On November 24, the company said it would close its Florida warehouse facility on November 30. Humble said it has made the decision to focus resources on the  Texas and Nevada warehouse locations, which are able to adapt and scale with the growing business.

Mr. Toguri added, “This past quarter was transitional for us following our public listing on the Canadian Securities Exchange. While we saw an increase in Canadian revenue, the U.S. operations saw a decrease as a result of our decision to focus the business on healthier margin sales, reducing the mix of high volume, low margin products. Aligned with our strategy to expand into cannabis distribution in the U.S., we implemented a new operating structure in October, which included headcount reductions. Our new structure reprioritizes our customers, identified redundancies and redirects resources to this opportunity. As part of these changes, in October we began the closure of our Florida warehouse, which will result in cost structure savings while consolidating shipping from our two remaining warehouses and improving customer experience. We are aggressively focused on becoming the leading cannabis distributor in North America, which we believe will ultimately deliver revenue growth and profitability.”


Debra BorchardtOctober 7, 2021


After the market closed on Tuesday, Humble & Fume Inc.(CSE: HMBL) reported its financial results for the fiscal 2021 fourth quarter and year ending June 30, 2021. For the quarter, Humble delivered revenue of $19.4 million an increase of 33% from last year’s $14.5 million. The company attributed the increase in revenue to strong sales in the U.S. and Canadian accessories wholesale market. Humble’s accessory lines include some of the highest-rated products like Puffco, Storz & Bickel and Ryot.

The company reported that the net loss for the quarter was $88,904, or $0.00 per diluted share, a 99.7% decrease from last year’s net loss of $4.1 million, or $0.08 per share. The company said that the net losses were primarily driven by growth in overall headcount levels primarily to support increased U.S. and Canada sales, higher sales and marketing expense to support brand partnerships and the launch of FUME, and higher freight costs included in the company’s cost of goods sold selling expenses, and higher share-based compensation expense compared to the year-ago period.

“Humble bridges the gap between cannabis brands, accessory producers and the growing retail market in North America to drive increased sales and maximize financial performance for our partners. Throughout fiscal 2021, we significantly increased our new retailer accounts, which helped drive record fiscal year revenue of $74 million. Revenue increased 71% while gross margin increased by 143% year-over-year. We achieved this strong organic growth and margin enhancement while continuing to identify new opportunities to grow profitably,” said Joel Toguri, Chief Executive Officer of Humble. Togiru was recently named the company’s CEO  and was the former Chief Revenue Officer at The Supreme Cannabis Company Inc.

Full Year Results

Humble reported that the revenue for fiscal year 2021 was $74.1 million, an increase of 71% from last year’s $43.4 million. The company attributed the increase in revenue to stronger sales in the U.S. and Canadian markets for the company’s accessories line, an increase in sales from Fume Labs, and increased service fees for Humble Cannabis Solutions. The operating loss declined by 14% as operating expenses as a percentage of revenue improved year-over-year by 50%. The net loss for the fiscal year 2021 was $13.0 million, or $0.20 per diluted share, compared to $15.7 million, or $0.26 per share, for the fiscal year 2020. The change in net losses year-over-year were driven by higher gross margins and sales in 2021 from the company’s core distribution business, as well as one-time charges related to its RTO transaction and the fair value adjustment of the derivative liability for the convertible debenture.

Mr. Toguri added, “As we look ahead to the next few quarters, we are focused on rationalization of the business further to drive profitable growth. In addition to maintaining our rapid growth, we are laser-focused on further improving margins and cash flow by managing expenses, finding efficiencies and streamlining our product procurement and inventory management systems. We believe that we have the vision and capital resources to continue executing during our rapid growth phase and as we move to generate sustainable profit and positive cash flow to deliver long-term shareholder value.”

“Fiscal 2021 resulted in significant milestones for Humble, most notably the successful closing of our go-public transaction, commencing trading on the CSE, and the introduction of new leadership, with Joel Toguri as Chief Executive Officer. As a proven leader, with strong experience in the cannabis industry, the Board is extremely pleased to have Joel at the helm as we streamline operations and continue to focus on retail distribution and sales growth over the coming year,” said Shawn Dym, Executive Chairman of the Board of Humbl

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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