Marijuana Money Archives - Page 2 of 21 - Green Market Report

We got more earnings this week, but the really big news was the acquisition of Columbia Care by Cresco Labs. The $2 billion deal will make it the largest marijuana company in the U.S. The combined companies would be larger than Curaleaf, which had $1.2 billion in revenue. Cresco has 50 dispensaries and 21 cultivation facilities in 10 states. Columbia Care has 99 dispensaries and 32 cultivation facilities in 18 states. The combined companies have about 6,100 employees.

Both reported earnings this week as well. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million and revenue rose 73% in 2021 to $822 million. Of concern is that the company’s debt is growing along with huge interest payments. Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported revenue in the fourth quarter of 2021 rose 70% over last year to $139 million and the full-year 2021  revenue rose 156% to $460 million.

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its total revenue rose 104% to $65.9 million in the fourth quarter over last year. For the full year, total revenue of $209.3 million increased approximately 159% year-over-year. 

Nova Cannabis Inc. (TSX: NOVC) reported its fourth-quarter sales increased 175.9% to $47.6 million. Sales for 2021 were $134.4 million, a 112.2% increase from $63.3 million in 2020. 

Charlotte’s Web (TSX: CWEB) (OTCQX: CWBHF) reported that fourth-quarter revenue fell 7.8 % to $24.8 million from $26.9 million for the same time period in 2020. For the full year of 2021, net revenue grew 1.0%, to $96.1 million and the net loss for the year was $137 million. 

Other bigs news involved, a complaint filed in the New York County Supreme Court and the Southern District of Florida by some investors of privately-owned Surterra Wellness, now known as Parallel. they are pretty angry about what happened to their investment dollars. While the documents were heavily redacted, the cases suggest that Wrigley loaded up Parallel with excessive debt and misrepresented the health of the cannabis company. The complaint alleges that his goal was to get the company taken public through the Ceres Acquisition Corp SPAC and then exiting with a profit. The Ceres deal failed once the investors saw what they were buying.

Greenlane Holdings, Inc. (NASDAQ: GNLN) is selling its headquarters, announced layoffs, and leadership changes in order for the company to become profitable. The company also said it expects net sales to be between $55.5 million and $56.5 million for the fourth quarter and between approximately $165.5 million and $166.5 million for the full year.

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported that its fourth quarter revenue decreased 6.2% sequentially to $88.5 million. The sequential revenue decline was driven by lower prices in the wholesale market. However, it rose 63% over last year. For the full year revenue rose 133% to $332 million. 

The Scotts Miracle-Gro Company (NYSE: SMG) lowered its full-year sales guidance for its hydroponic Hawthorne division. In addition, Scotts said the reduction would likely lead to adjusted earnings per share that are lower than previously expected. Scott expects Hawthorne sales to decline 15% to 25%, including acquisitions.

The MedMen and Ascend battle over the New York assets continues to heat up. This week, MedMen dialed back its accusation of influence peddling. While the company said it may have the details wrong, it still believes there was some greasing of the political wheels. Ascend said on its earnings call that it still believes MedMen will have to stick to its agreement to sell the assets and accused the company of trying to shop the properties for a better price.

And finally this week, New York regulators are set to approve a rule making it so people with prior marijuana convictions will get the first round of adult-use marijuana retailer licenses—ahead of existing medical cannabis businesses. The proposal to create the conditional licenses will be taken up by the New York State Cannabis Control Board. OCM director Chris Alexander told the New York times that he expects upwards of 200 “justice involved” applicants to receive the priority licenses under the proposal and sales could begin by the end of the year.

Next week we’re headed to SXSW, so no marijuana money video. 

It was a huge week for cannabis company earnings, so we’re just going to hit the big ones. Head over to the website for more in-depth information.

Green Thumb Industries Inc.  (CSE: GTII) (OTCQX: GTBIF) reported total revenue in the fourth quarter of 2021 was $243.6 million, up 37.4%. Net income was $22.8 million. For the full year 2021, total revenue was $893.6 million.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported that in the fourth quarter it had net revenue of $25.8 million but once again the company recorded an eye-popping net loss of $133 million.  For the full year, the net revenue was $74.4 million but the operating loss for the full year was a staggering $560 million, while the net loss was $389 million. 

Village Farms (NASDAQ: VFF) reported sales for the fourth quarter increased 55% to $72.8 million. Sales for the full year were $268 million. 

The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) reported revenue of $23 million for the fourth quarter, which fell sequentially. The total sales for the full year were $90 million. Valens gave revenue guidance for 2023 of at least $225 million.

Both hydroponic companies GrowGen and Hydrofarms had mixed results. GrowGen’s same-store sales dropped and Hydrofarm’s sales increases were only due to acquisitions.

Curaleaf, which is under the microscope for its Russian connections reported its numbers.

Tilray Brands, Inc.  (Nasdaq: TLRY) is striking up a partnership with Hexo Corp. (Nasdaq: HEXO) by buying $211 million of its debt. In December, Hexo warned that the company was in trouble and said it would have trouble paying its debts. 

And finally, it’s women’s history month and Green Market Report announced its women’s summit to be held on April 28 in NYC. Registration is open and you can find the link on the website.

 Earnings season got off to a strong start this week. WM Technology better known as Weedmaps (Nasdaq: MAPS) announced its total revenue for the fourth quarter increased to $54.2 million, up 22%. This beat the Yahoo Finance average estimate for sales of $51 million and was higher than the third quarter’s sales of $50 million. The outlook for 2022, is for full year revenue to be between $255 million and $265 million, which represents 32-37% growth.

Innovative Industrial Properties, Inc.  (NYSE: IIPR) announced total revenues of $58.9 million for the fourth quarter. This beat the Yahoo Finance average analyst estimate of $57 million. IIP generated total revenues of approximately $204.6 million for 2021.

Turning Point Brands, Inc. (NYSE: TPB) reported its fourth-quarter sales were essentially flat at $105 million. For the full year 2021, sales increased 10 % to $445.5 million.

The big disappointment in earnings this week was Cronos Group.  Cronos Group (NASDAQ: CRON) reported that its 2021 third quarter jumped by 80%  over last year to $20.4 million. However, the strong increase in earnings was overshadowed by the company’s restatement of earnings from the second quarter and a whopping charge of $235 million. In addition to that, Cronos said it was restructuring the company to cut costs. The company had an operating loss of $55 million. 

In brighter news for cannabis, Leafly’s (NASDAQ: LFLY) sixth annual Cannabis Jobs Report (developed in partnership with Whitney Economics) reveals that the legal cannabis industry added 107,059 new jobs in 2021 and is poised to hold on to its distinction in 2022 as the most prolific job creator in America.  

Ascend Wellness (OTC: AAWH) has pulled off the gloves in its latest complaint against MedMen (OTC: MMNFF) calling the company, broken and mismanaged and saying that it has repeatedly reneged on its promises to its employees, suppliers, shareholders, medical marijuana patients, regulators. MedMen had agreed to sell its New York assets to Ascend, but the deal was contingent upon New York State giving approval to the deal. MedMen has since refused to close the deal saying the state hadn’t really given final approval and accusing the state and Ascend of influence peddling. Ascend went on to say that MedMen just had buyer’s remorse and wants more money. The complaint also calls MedMen a pariah in the cannabis industry. 

More big SPAC news this week.

Cannabis blank check company Relativity Acquisition has raised $125 million and could raise another $18.75 million. Relativity Acquisition’s common stock is set to trade on the Nasdaq under the symbol “RACY”.

Banking company Safe Harbor Financial will go public through the SPAC Northern Lights Acquisition Corp.  (NASDAQ: NLIT). Safe Harbor is a subsidiary of Partner Colorado Credit Union, a Colorado-chartered credit union based in Arvada, Colorado. 

Infused beverage company and celebrity favorite Cann announced a $27 million Series A funding round coming from fresh institutional capital as well as existing investors like  Imaginary Ventures who added to its original investment. Cann was launched in 2019 and raised $5 million in a seed round in 2020.

Aleafia Health Inc. (OTCQX: ALEAF) reported its net revenue was $36 million for  2021 which was lower than its $44 in 2020. For the fourth quarter, net revenue fell to $8.8 million from $15 last year.

Despite numerous other cannabis companies managing to complete their bookkeeping during the pandemic, Icanic Brands (OTC: ICNAF) is now blaming Covid as the reason its financial filings are late. The delay has resulted in a cease trade order in Canada. Strangely enough the company was able to file its financials in the early part of the pandemic. 

This week Green Market Report launched its Psychedelics industry newsletter called Psychedealia. We’re really excited to expand our newsletter offerings and allow you to Choose your News. 

This week’s earnings season kicked off with a big name. The Scotts Miracle-Gro Company (NYSE: SMG) reported that company-wide sales in the quarter dropped 24% to $566 million. The company also announced plans to restructure its hydroponic subsidiary Hawthorne after sales dropped. Scotts said it would take a restructuring charge of up to $5 million in the second quarter as a result of its restructuring. 

Verano (OTC: VRNOF) made a big move into the coveted New York market with a large acquisition. Chicago-based Verano is buying Goodness Growth Holdings in an all-stock deal valued at $413 million. Goodness Growth has a presence in New York through the Vireo Health subsidiary. New York is in the process of creating its program for adult-use sales which are expected to begin in 2023. 

Like a broken record, High Times has seen another CEO depart and has extended its Reg-A offering yet again. Peter Horvath resigned from his position as CEO and Director. Paul Henderson was named the newest CEO making that 4 CEOs in as many years. Henderson is also the interim CFO.

Columbia Care raised $185 million in an offering of senior notes this week

While HEXO Corp received notification from the NASDAQ marketplace that it is not in compliance with the minimum bid price of $1 per share. The company will have a limited amount of time to get its share price back up to that mark

And iAnthus finally closed on its acquisition of MPX New Jersey. The deal was originally announced in 2018 but got mired in numerous lawsuits. 

It was a shortened trading week with markets closed on Monday for the Martin Luther King holiday. It was also a fairly quiet week for news in the industry. 

Agrify Corporation (Nasdaq: AGFY) reported that its fourth-quarter 2021 new bookings exceeded $250 million and the company reaffirmed its fourth-quarter 2021 revenue guidance of $26 million to $28 million. The company recently faced a short seller attack that accused the company of working with unlicensed producers, but Agrify says it is servicing early-stage cultivators. 

 MariMed, Inc. (OTCQX: MRMD) signed a definitive agreement to acquire Green Growth Group, Inc. holder of a provisional Cannabis Craft License in Illinois. MariMed gets a building to develop up to 14,000 square feet of canopy for cultivation, build an extraction lab to produce concentrates, and build a production kitchen for the manufacture of edibles and other derivative products. The price wasn’t disclosed. 

Cresco Labs (CSE:CL) (OTCQX:CRLBF) announced the termination of the previously announced definitive agreement to acquire 100% of the outstanding equity interest in Blair Wellness, LLC, a Baltimore Maryland medical cannabis dispensary. “We have terminated the purchase agreement with Blair Wellness due to the failure of certain closing conditions to be met prior to our specified termination date,” said Charlie Bachtell, Cresco Labs’ CEO & Co-founder.

Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF) announced the completion of its previously announced acquisition of Bloom Dispensaries, a vertically integrated, single state cannabis operator in Arizona. With the close of the Transaction, Curaleaf’s retail footprint has reached 13 dispensaries in Arizona and 121 nationwide.

National supplements retailer GNC is going to start selling Charlotte’s Web Holdings (OTC: CWBHF), Inc. full spectrum hemp extract products. Initial shipments of six varieties of Charlotte’s Web Gummies will be available for purchase at GNC retail locations across 24 states, with the intent to expand into additional states.

And finally, the Green Market Report released its fourth-quarter Cannabis Company Index recap this week. You can find the report on our website under the reports tab.

Tilray, Inc.  (Nasdaq: TLRY) stock jumped this week when the company turned in a solid earnings report for the second fiscal quarter with revenue increasing approximately 20% to $155 million versus last year’s $129 million. 

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) delivered its results for the first fiscal quarter with revenue increasing 57% to $30.4 million, from $19.3 million for last year. Organigram also trimmed its net loss to $1.3 million, versus last year’s net loss of $34.3 million. 

Hydroponic chain GrowGeneration Corp. (NASDAQ: GRWG) announced revised full-year 2021 revenue expectations of $420 million to $422 million, versus $193 million for 2020, an increase of 118%.  The important news though was that same stores sales are expected to decline in the fourth quarter by 12.3%. This follows other hydroponic companies like Hydrofarm and Scotts Miracle-Gro that also warned of slowing sales.

Leafly Holdings Inc. and cannabis SPAC Merida Merger Corp. I (NASDAQ: MCMJ)  announced that it has entered into a $30 million convertible note agreement, but more importantly, Merida has postponed the member vote on the SPAC which had originally planned to close at the end of December.  

Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) announced that it is expanding into the functional beverage market with an acquisition of H2C Beverages in a deal valued at $30 million. It brings to Halo the Halo’s H2C and Hushrooms branded products. 

Private companies were all over the news this week with several announcing fund raising rounds. 

Cannabis industry hiring platform Vangst has completed a $19 million Series B financing. Vangst said it plans to use the money to expand its platform into new markets to support the influx of jobs. Vangst also said it will use this infusion of capital to launch products that support both cannabis businesses and employees, including training and employee payment solutions. 

Michigan-based Viola Brands announced the closing of a $13 million equity funding round. The company said this latest round of funding will allow it to expand into several key new markets, including Pennsylvania, Illinois, New Jersey, and Maryland,

Female-owned Garden Society has raised more than $7 million in Series A funding. The funding was led by RJ Primo LLC and the proceeds will be used to scale product offerings, modernize manufacturing, and further expand its team to meet the growing demand throughout California, as well as to expand into other states in 2022.

Happy New Year everyone. We took a small break as the news cycle died down at the end of 2021, but we are back and ready to crush 2022.

This week Emerald Holding (NYSE:EEX) said it is buying MJBiz in a deal valued at $120 million. In 2021, MJBiz’s revenues were approximately $27 million and its EBITDA was $13.7 million. MJBizCon is a top trade show in the cannabis industry having featured more than 1,200 exhibiting companies. While the company boasted over 18,000 paid registrations, at the October 2021 event, it was a big drop from the company’s last pre-pandemic event. 

The Scotts Miracle-Gro Company (NYSE: SMG) announced two acquisitions, but at the same time warned that sales in its hydroponic division Hawthorne were expected to drop by 40% for the fiscal first quarter that ends at the end of January. Scotts said the decline in sales was caused by a slowdown in the cannabis market as well as supply chain disruptions that have delayed the sale of certain product lines. 

MedMen (OTCQX: MMNFF) is still refusing to close its agreed-upon deal with Ascend Wellness (CSE: AAWH.U) (OTCQX: AAWH) for the properties in New York. The investment, which was agreed upon in March 2021, was dependent upon New York State’s approval, which the Office of Cannabis Management of the Cannabis Control Board of the State of New York gave on December 16, 2021. MedMen is trying to kill the deal saying it didn’t get NY’s approval in time, but Ascend is saying that isn’t the case. Ascend is also accusing MedMen of not remaining compliant with NY state’s cannabis regulations.   

Headset is predicting in a new report that the total annual U. S. cannabis market has the potential to reach $45.8 billion by 2025. Despite its current challenges, California is expected to remain the number one market. Headset is projecting that the state’s market will reach $7.7 billion in just three years. Even though New York is a medical-only state at this time, adult-use sales could begin in 2023. Headset is forecasting the market to become the third-largest in the country with sales of $2.86 billion. 

And finally, now that the holiday season has wrapped up, various data companies have finally had a chance to measure the results. Headset said that its data showed that Canada saw a rise in sales of more than 26% while the US saw an increase of 17% during the holiday month. Springbig reported that starting from a week before Christmas and going into New Year’s Day, it saw (excluding Christmas day) $276 million in total sales with a daily average gross of $20.82mm. This year the data providers said that sales were spread out over the month versus just right at the specific holiday date. 

It was a rough week for some cannabis companies. News that Visa (NYSE: V) could begin cracking down on the way many cannabis customers use their debit cards to make a purchase and the change could have a devastating effect on the cannabis industry. The company sent out a memo warning that cashless ATM transactions were prohibited. 

Cannabis leaders had a tough week as well. 

Charlotte’s Web made sweeping changes in its C-suite. CEO Deanie Elsner was out of a job and a former Bacardi executive Jacques Tortoroli was named the new CEO. Jared Stanley, Charlotte’s Web Co-founder and Chief Cultivation Officer, will assume an expanded role as Chief Cultivation and Innovation Office and the CFO has seen his duties expanded. 

Turning Point Brands also named a new CEO Yavor Efremov replacing the Company’s current CEO, Larry Wexler. 

Hexo Corp. (TSX: HEXO; NASDAQ: HEXO)  reported its revenue rising 29% sequentially to $50.2 million. Hexo also reported a total net loss of $116 million and warned that it was a going concern saying that “existing funds on hand, when combined with operational cash flow, would not be sufficient to fund the potential Senior Secured Convertible Note redemption payments.

Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWD) announced its revenue rising 37% to $45.4 million. One cautionary note was that Fire & Flower reported that same-store sales decreased 27% for fifty-four (54) stores in operation during the quarter due to increased competition as the surge in newly licensed retail cannabis stores continues across Canada. 

Also this week, companies seemed to wrap up some debt issues. Glass House Brands was approved for a $100 million debt deal and Curaleaf  received commitments for a private placement of 8.0% Senior Secured Notes due 2026 for aggregate gross proceeds of $425 million.  It’s the largest single debt financing of any publicly-traded US cannabis company in history and at a rate that is also one of the lowest seen within the industry. 

And that’s it for this week. This will be the last marijuana moment video for 2021. Have a happy holiday everyone and we’ll see you in 2022.