Trulieve Cannabis Corp. Archives - Green Market Report

StaffOctober 27, 2022
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5min9540

The Daily Hit is a recap of cannabis business news for Oct. 27, 2022.

ON THE SITE

Trulieve Worker Death Could Spur Changes in Massachusetts Cannabis Industry

The death of a Trulieve employee at a Massachusetts product manufacturing facility in January may lead to significant shifts within the state’s cannabis industry. That could include additional industry oversight, momentum for unionization efforts, and perhaps more yet-unforeseen shifts such as the founding of a state-run testing lab to act as a check on privately owned marijuana labs, sources told Green Market Report. That doesn’t include the still-unclear blowback for Trulieve (OTC: TCNNF) (CSE: TRUL) itself. Read more here.

Florida Chills Plan to Sell Cannabis at Circle K Gas Stations

Investors and others bullish on the news that Green Thumb Industries (OTCQX: GTBIF) would start selling medical marijuana out of stores attached to Florida Circle K gas stations next year may have to curb their enthusiasm. The state’s Department of Health told Green Market Report that the project “has not been approved by the state.” Read more here.

Verano Refinances Debt Extending Maturity Dates

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) has entered into a credit agreement to refinance its existing $350 million credit facility, extending the maturity date to Oct. 30, 2026. Refinancing comes amid the company’s new legal battles with its spurned acquisition of Goodness Growth. Read more here.

Dozens of Michigan Cities to Vote on Fate of Cannabis Businesses

Marijuana is on the ballot next month in at least 32 communities across Michigan. The vast majority are asking voters whether the community should allow marijuana retailers and growers to operate. The state’s marijuana industry has suffered a massive blow in recent months due to oversupply of product, collapsing prices more than 45% in the last year. Read more here.

IN OTHER NEWS

Nevada

A Clark County District Court judge has ruled in favor of local cannabis advocates and declared that ​​the Nevada State Board of Pharmacy is no longer authorized to govern cannabis and must remove marijuana, cannabis, and cannabis derivatives from the controlled substances list. Read more here.

Bloomios

Bloomios Inc. (OTCQB: BLMS), a white-label and private-label manufacturer and wholesaler of hemp-derived nutraceutical, cosmetics, and pet products, has acquired Infusionz, a wholly owned subsidiary of Upexi (NASDAQ: UPXI).  Moving forward, Bloomios will manufacture products retained by Upexi, and Upexi has provided significant financing to enable this transaction. The acquisition includes Infusionz’s portfolio of CBD gummy brands and customers, along with its associated order flow, product formulations, manufacturing operations, equipment, and sales team. Read more here.

Chemistree Technology Inc.

Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) has negotiated the conditional sale of its Washington state subsidiary. The company executed a Share Purchase Agreement with an arms-length party, whereby the company under certain circumstances would sell 100% of its Washington Assets via the sale of subsidiary, Chemistree Washington, to the other party in exchange for consideration of $500,000. Read more here.


Adam JacksonJuly 20, 2022
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9min2841

Freelance cannabis research firm Pink Market Capital Research published Trulieve Cannabis Corp. – A Titan in the Making, which examined how Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) has managed to rake in more revenue during the past year than its competitors and is increasingly penetrating key emerging states despite falling margins in the U.S. cannabis sector.

“The report on Trulieve is our first published report here at Pink Horse Capital Research, where we aim to publish our findings on small & mid-cap equities, the companies that most research firms don’t cover,” the report said. “Though we aim to be unbiased, please note that we do have a position in the company.”

 The report released on Sunday explored the company’s business model and growth strategies, its key financial metrics as well as the risks posed to both the company and the cannabis sector as a whole – subsequently assigning a fair value range for Trulieve of $79.30 – $96.92 per share. That’s a fairly lofty valuation as Trulieve shares were lately selling at approximately $12.70. 

Pink Market Capital gets to this number with a couple of big market assumptions. First, the analyst believes Trulieve’s home state of Florida could add adult-use sales in mid-2025, boosting revenue. They also think the company’s key state of Pennsylvania could go that route as well by 2025.  The report said, “This assumes a Nov ballot initiative in 2024 that would provide the framework for Trulieve to sell to adults over 21 in the state.” Then the report suggests that the company’s free cash flow would turn positive at a 10% yield to revenue beginning in 2025. The report went on to surmise that if Trulieve maintains a significant market share in its cornerstone hubs in 2026, that would lead to a 9.18% U.S. market share by 2030.

Thrive or Survive

Despite the slow crawl toward federal legalization, the global legal cannabis market size is expected to reach $134.4 billion by 2030, with a CAGR of 25.3% between this year and then, according to a new report by Grand View Research, Inc. The report partly credited the growth to the rising geriatric population and increasing demand for cannabis for various medical purposes, such as management of chronic pain, mental disorders, chemotherapy-induced nausea and neurological disorders.

 And while Florida’s medical marijuana market has been notoriously tough to enter for entrepreneurs, Trulieve performing well in the tax-friendly Sunshine State demonstrates opportunities for considerable growth. Those gaining sizable footprints in Florida’s emerging legal market more neatly position themselves for the implementation of recreational marijuana legalization.

 For Trulieve, this means focusing on growing within current markets – rather than land-grabbing throughout the country – and building upon their “Hub” model approach, which emphasizes establishing cost-effective scale in regional markets near “pillar” states tucked into the corners of the country such as Philadelphia, Florida, and Arizona. CEO Kim Rivers has hinted at the possibility of five hubs – setting the stage for effective interstate travel if approved by the federal government. Pink Market Capital Research expects Trulieve to enter more developed markets through M&A “when the company finds more attractive opportunities.” And until federal legislation is passed and implemented, navigating the patchwork of nascent markets will remain a challenge for even the largest players – especially as inflation and rising interest rates cool down activity. 

At the same time, the legal industry will continue to languish behind an expansive illicit market that has always been able to offer more competitive pricing and bypass state taxes, rules and regulations that have burdened smaller operators struggling to penetrate the world’s oldest legal marijuana market. California’s Democratic Gov. Gavin Newsom signed into law last month solutions meant to remedy the tax burden for many businesses in the state – eliminating a weight-based tax for cannabis growers but leaving the 15% tax on retail sales. The bill also allows the state to eventually raise retail taxes to make up for the lost cultivation revenue. Decelerating consumer growth in Western states such as California and Colorado “suggests that the most established markets are nearing saturation of consumer participation, which stands in sharp contrast to the rapid growth happening in new and emerging markets,” according to a report by Colorado-based cannabis data firm BDSA Analytics.

 “One market that deserves recognition is the massive Florida market, which saw its consumer participation rate jump from 24% in Spring 2020 to 49% in Spring 2022,” BSDA said.

 Maintain a Win Formula

 The report showed that Trulieve possesses a healthy balance sheet, “and there is minimal risk for the company to default on its debt or not pay its current obligations,” it said. “There is also ample cash to make opportunistic investments should the right circumstance arise.”

Risks that could limit potential growth for the company remain, it added. With nearly a couple hundred dispensaries, the retail-heavy company could more greatly feel the impact of federal legislation that restricts cannabis companies from being vertically integrated.

 And whether Trulieve can repeat its success in Florida across other states is yet to be seen. The decision to sit out on emerging Northeast markets such as New Jersey and New York may or may not mature in the company’s favor. New York has recently had issues trying to crack down on budding off-the-books pot shops in lieu of state legalization.

 “Time will tell if sitting out will hurt or help Trulieve in the long run,” the report said.


StaffJuly 7, 2022
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6min1400

The Daily Hit is a recap of the top cannabis business stories for July 7, 2022.

ON THE SITE

Senators Ask Biden To Do More For Legalization

U.S. Senators Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.) led Senators Kirsten Gillibrand (D-N.Y.), Ed Markey (D-Mass.), Cory Booker (D-N.J.), and Ron Wyden (D-Ore.)  banded together to send a letter to President Biden, Attorney General Merrick Garland, and Health and Human Services (HHS) Secretary Xavier Becerra, following up on previous requests that the administration use its authority to deschedule cannabis and pardon non-violent cannabis-related offenders. The letter was issued on July 6. Read more here.

More Tip Jar News

The dispensary tip jar continues to grab the headlines with the latest news of a settlement between Massachusetts cannabis company Bud’s Goods and Provisions and the state’s Fair Labor Division of the Attorney general’s office. The popular cannabis dispensary agreed to repay numerous current and former employees as part of a $33,000 settlement with the Massachusetts Attorney General following a complaint from an employee that the company kept tips from its budtenders. 68 employees who worked between March 1, 2021, and the end of 2021 will receive between $20 and $1,500. Read more here.

July Holiday Sales Slightly Higher Going Into Dab Day

Canna-tech companies were busy over the long 4th of July weekend, analyzing sales data from their various platforms for what was expected to be one of the biggest weeks of the year for cannabis retailers. In Canada, the national holiday Canada Day is celebrated on July 1, with vendors hoping for a holiday spike in sales. Read more here.

Psychedelics Clinical Trials Challenged By Size

There are more and more clinical trials for various psychedelic substances cropping up all the time. Some have completed phase III trials, others are closing in on phase III, the final step before FDA approval leading up to an approved drug that can be brought to market. But the scientific community is saying “not so fast.” Read more here.

IN OTHER NEWS

Trulieve Cannabis Corp.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a cannabis company in the U.S., today announced that it publicly filed an automatically effective registration statement on Form S-3 with the United States Securities and Exchange Commission on July 7, 2022 to register a base shelf prospectus and to register for resale select Subordinate Voting Shares of the Company. Read more here.

High Tide Inc., Choom Holdings Inc.

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced that it is further expanding its bricks-and-mortar retail cannabis operations and entering the British Columbia market, through a binding agreement pursuant to which High Tide will acquire two operating retail cannabis stores in British Columbia, six operating retail cannabis stores in Alberta, and one operating retail cannabis store in Ontario from Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) and its subsidiaries, for CAD$5.1 million, pending court approval on July 7, 2022. Read more here.

Surfside Solutions Inc.

Surfside Solutions Inc., an end-to-end marketing technology that aggregates first-party data across all customer touchpoints, today announced the general availability of the Surfside Platform to Canadian dispensaries and brands. By combining the power of a customer data platform and a demand side platform, Surfside provides an all-in-one solution for cannabis businesses looking to activate customer data by advertising to new and existing customers across websites and mobile apps. Read more here.

CannTrust Holdings Inc.

CannTrust Holdings Inc. (unlisted), today announced that the Ontario Superior Court of Justice granted an order extending the time for CannTrust to call the next annual meeting of its shareholders to a date no later than November 30, 2022. Read more here.

Avicanna Inc., Bio-Gate AG

Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products announced that the company has completed its first commercial export of its evidence-based derma-cosmetic line Pura H&W into the European market as a part of its supply and distribution agreement with Bio-Gate AG. Read more here.

Pure Extracts Technologies Corp.

Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ), a plant-based extraction company focused on cannabis, hemp and the rapidly emerging psychedelic sector, provided a brief summary of recent activities. Read more here.


StaffMay 19, 2022
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The Daily Hit is a recap of the top cannabis business stories for May 19, 2022.

ON THE SITE

Harborside Owns Urbn Leaf Seaside Store

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) now fully owns the Seaside, California store also known as Urbn Leaf. Harborside had initially purchased a 50% ownership in the dispensary, but with the new transaction, it will own all of the issued and outstanding securities of 680 Broadway Master, LLC which owns the Seaside Store, bringing the company’s interest in the Seaside Store to 100%. Read more here.

Psychedelics and Institutional Investors

When looking at the data coming out of psychedelics research, there is tantalizing evidence that the promise of psychedelics is becoming more of a reality every day. Companies and organizations such as Compass Pathways NASDAQ: (CMPS) the Multidisciplinary Association for Psychedelic Studies (MAPS) and Awakn Life Sciences are either planning or working on phase 3 clinical trials, one of the last steps before U.S. Food and Drug Administration (FDA) approval. Read more here.

IN OTHER NEWS

Medical Marijuana, Inc.

Medical Marijuana, Inc. (OTC: MJNA), a publicly traded cannabis company in the United States, announced today its financial results for the quarter ending March 31, 2022, and provided an overview of recent operational highlights. Generated $7.8 million in net revenue in the first quarter of 2022, a 24% increase when compared to the previous quarter. Read more here.

New Frontier Partners with Treez

New Frontier Data, a data, analytics and technology firm specializing in the global cannabis industry, announces a broad, sophisticated data partnership with Treez,  an enterprise cloud commerce platform that streamlines retail and supply chain operations within the cannabis market. The partnership provides new solutions designed to bring speed, accuracy and transparency to cannabis retail, brand and product performance. Read more here.

ADC Partners with Alt Magic

ADC, a cannabis distribution company, announced a partnership with Alt Magic to present the first ever WebXR cannabis store. The store allows users to talk with like-minded people in the Metaverse using their VR headset even if they don’t have a VR headset they can use their smartphone, tablet or computer to enjoy the WebXR experience. It’s the first time that people on all major devices will be able to enter a cannabis store, pick up products, review ingredients and make purchases from the Metaverse. Read more here.

Trulieve Cannabis Corp.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a cannabis company in the United States, today announced the grand opening of its third and fourth medical dispensaries in West Virginia. Located at 4701 MacCorkle Ave. SW in South Charleston and 152 Park Shopping Center in Parkersburg, both dispensaries will open at 10 a.m. on Saturday, May 21, 2022. Read more here.

Isracann Biosciences

Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF) a multi-faceted organization with a natural health medicine division in Canada and holdings in Israel, is pleased to announce that its wholly owned subsidiary Praesidio Health has completed the natural product number (NPN) submissions to Health Canada for its first formulations. Read more here.

Indiva Limited

Indiva Limited (TSXV: NDVA) (OTCQX: NDVAF), a Canadian producer of cannabis edibles and other cannabis products, announced its financial and operating results for the first fiscal quarter ended March 31, 2022. “We are pleased to report very strong year-over-year revenue growth in the first quarter of 2022, and continued gross margin improvement compared to fiscal 2021. According to data from Hifyre Inc., Indiva continues as the dominant national market share leader in edibles,” said Niel Marotta, President and Chief Executive Officer of Indiva. Read more here.


StaffMay 12, 2022
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9min1570

The Daily Hit is a recap of the top cannabis business stories for May 12, 2022.

ON THE SITE

Trulieve Cannabis Corp. on Track to do a Billion

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced its results for the first quarter ending March 31, 2022, with revenue increasing 64% year over year to $318.3 million from $193.8 million and 4% sequentially. This beat the Yahoo Finance average analyst estimates for revenues of $307 million. It was also a nice increase sequentially from the fourth quarter’s revenue of $305 million, especially at a time when many cannabis companies have seen sales in the first quarter of 2022 struggle to top the fourth. Read more here.

Talladega, Parallel Lawsuit

Talladega wants out of the Parallel cannabis lawsuit. This is the lawsuit that disgruntled Surterra Wellness (now known as Parallel) investors filed against the company’s leader beau Wrigley and Surterra Holdings, along with a family office and Talladega LP and Talladega Inc. The company filed a motion earlier this week to dismiss its involvement and outlined why it should not be a part of the lawsuit. Talladega was not initially named in the case, instead, it was Canadian hedge fund SAF Group, but they were replaced by Talladega. Read more here.

Glass House Brands, Inc. Expands Retail

Glass House Brands Inc. (OTCQX: GLASF) (OTCQX: GHBWF) has announced it will buy three retail assets: two operating retail dispensaries and one retail dispensary slated to open in the third quarter of 2022. Glass House also said that with these acquisitions and its other moves, it could do over $200 million in revenue in the next year. Read more here.

GMR Women’s Leadership Awards: Chanda Macias

Chanda Macias, PhD, is a true cannabis pioneer: having spent years in biomedical research and developing her knowledge of medical marijuana, in 2015 she became the country’s first Black woman medical cannabis operator as CEO of National Holistic™ Healing Center (NHHC), the leading medical marijuana dispensary in Washington DC. Read more here.

Keeping it Legal (VIDEO)

On April, 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This panel was titled “Keeping It Legal” and featured a stellar lineup of successful women including Kristin Jordan Co-founder of Park-Jordan, Rochelle Boas of LeafLink, Nichole West of LB Atlantis and moderated by Longview Strategies Founder Ellie Seigel. More here.

IN OTHER NEWS

Eden Empire Inc., WeCannCA

Eden Empire Inc. (CSE: EDEN) announced signing a strategic consulting agreement partnership with WeCannCA located out of California. WeCannCA is a full-service cannabis consulting firm committed to resourcing, supporting and advancing the cannabis industry in California and other blooming states. WeCannCA strives to provide a solution to the burgeoning and complex cannabis industry by providing services and solving all its major hurdles regarding licensure under one roof. Read more here.

Skye Bioscience, Inc., Emerald Health Therapeutics, Inc.

Skye Bioscience, Inc. (OTCQB: SKYE) and Emerald Health Therapeutics, Inc. (CSE: EMH; OTCQB: EMHTF) announced today that the companies have entered into a definitive agreement with respect to a transaction to be completed by way of a Plan of Arrangement whereby Skye would acquire all of the issued and outstanding shares of Emerald in a share-for-share-transaction. Skye is a San Diego-based pharmaceutical company developing proprietary, synthetic cannabinoid derivatives to treat glaucoma and other diseases with significant unmet needs. Emerald possesses cash and non-cash assets that Skye would acquire. Read more here.

Ketamine Wellness Centers, Veterans Administration

Ketamine Wellness Centers (KWC), the largest ketamine therapy provider in the U.S. and a subsidiary of Delic Holdings Corp (CSE: DELC) (OTCQB: DELCF) (FRA: 6X0), today announced a new partnership with the Veterans Administration (VA) in Arizona. Veterans suffering from treatment-resistant depression, PTSD and anxiety will have access to ketamine therapy at the KWC Arizona clinics in Phoenix, Tucson and Mesa-Gilbert at no out-of-pocket cost with prior authorization from the VA. This new VA partnership is in addition to the one established with the KWC located in Burnsville, Minnesota. Read more here.

Green Goddess Supply

Today, Green Goddess Supply announced the launch of their SEC-approved Regulation Crowdfunding raise on the StartEngine.com platform. The Massachusetts-based business empowers anyone to grow their own legal herbs at home. “We are incredibly excited to launch this initiative,” said founder and CEO, Eric Robichaud. “What’s impressive to me is management’s ability to build, ship and deliver almost 600 systems during the global pandemic that has been riddled with supply chain obstacles and seemingly never ending “red tape” including, but not limited to, price gouging for ocean freight, new hidden costs such as ‘port congestion,’ scarce and expensive domestic LTL shipping, supply chain and materials delays, and more.” Read more here.

Segra International Corp., Node Labs, LLC, Compound Genetics

Segra International Corp., an agriculture technology company is pleased to announce a new partnership with the renowned cannabis brand Compound Genetics. Under the agreement Segra will partner with San Francisco-based Node Labs LLC to introduce a variety of forward-thinking cultivars from Compound Genetics, and other top genetics brands, to Canadian and International growers via Segra’s plant tissue culture production nursery. Cultivar menu development is underway with releases anticipated in early 2023. Read more here.

Chicago Atlantic Real Estate Finance, Inc.

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI), a commercial real estate finance company, today announced its results for the first quarter ended March 31, 2022. John Mazarakis, Executive Chairman of Chicago Atlantic, noted, “The cannabis industry is one of the few sectors today that presents returns more correlated to regulatory milestones than the overall economic or interest rate environment. With a pipeline of $911 million in potential fundings, we continue to benefit from cannabis operators in our targeted limited-license states that are seeking debt capital to invest in accretive expansion plans to meet accelerating demand.” Read more here.

Aleafia Health Inc.

Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) announced that it has reached an agreement in principle with the convertible debenture holder-nominated steering committee to amend certain key commercial terms of its unsecured convertible debentures (TSX: AH.DB), set to mature on June 27, 2022. The company has also entered into subscription agreements for units, comprising common shares and warrants, representing aggregate gross proceeds of $5.6 million on a private placement basis. Read more here.


Debra BorchardtJuly 14, 2021
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5min890

While Florida-based cannabis company Trulieve (OTC: TCNNF) is not involved in the trial of businessman John “J.T.” Burnette, the company can’t help but get mentioned in the trial. Burnette is the husband of Trulieve CEO Kim Rivers and she has been attending the hearings as noted with court drawings. The Tallahassee Democrat has been covering the case and reported that on Monday, “Federal prosecutors laid out their case against businessman John “J.T.” Burnette during the first day of his public corruption trial, telling jurors that he and former Tallahassee City Commissioner Scott Maddox conspired together out of greed.”

According to the case, Burnette and Tallahassee City Commissioner Scott Maddox flew to Vegas in December 2016, where they met up with undercover agents posing as Mike Miller, owner of Southern Pines Development, an FBI front company; Mike Sweets, a medical marijuana entrepreneur, and Brian Butler, a “green energy” businessman.  Burnette is being charged with racketeering, extortion, fraud and making false statements. He is also accused of arranging $40,000 in payments to a consulting firm owned by Maddox friend Paige Carter-Smith but alleged to be secretly controlled by Maddox from an out-of-town vendor called Southern Pines Development. The company, which was eyeing potential development projects in town and wanted Maddox’s official help, turned out to be an FBI front. Burnette had wanted advice from Sweets for Rivers.

The Tallahassee Democrat reported that Maddox and Carter-Smith, former head of the Downtown Improvement Authority, pleaded guilty to bribery charges in 2019 and that both will testify against Burnette.

Trulieve Connection

To be clear, Trulieve is not connected to the case. Burnette though was involved in the construction of many Trulieve facilities. In 2018 his construction company received payments of
$8.7million and in the first three quarters of 2019 the construction company was paid almost $28 million. Trulieve has said in a statement, “JT Burnette is a minority owner in the construction business. Trulieve has retained the services of Burnette Construction company, as well as other construction companies over time. These service providers are chosen
because they are knowledgeable, experienced, and provide high-quality services at favorable terms. These business relationships are completely separate from the indictment case against J.T. Burnette. All transactions have been approved by independent board members and the value is provided in our public disclosure documents. They are arms-length and below market in cost to Trulieve.”

Burnette’s lead attorney, Tim Jansen told jurors this week, “He’s trying to help his wife out with Trulieve. So he contacted Mike Sweets for marijuana advice.” The Tallahassee Democrat reported, “The advice turned out to be helpful, Jansen said, adding that jurors will hear more about that.” Some shareholders have faulted Trulieve for not disclosing more information about the case, while others believe the company has adequately addressed it. The trial is expected to last several weeks.

Grizzly Report

In December 2019, stock short-seller Grizzly Reports issued a scathing report on Trulieve and highlighted the accusations that prompted the current trial. In January 2020, Trulieve filed a lawsuit in Florida state court against GRIZZLY RESEARCH LLC alleging, among other claims, defamation for publicly disseminating false and libelous statements about Trulieve to manipulate the stock price and further its own financial interests. The case has supposedly stalled due to the pandemic.

 


Debra BorchardtMay 20, 2020
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4min1010

Trulieve Cannabis Corp. (OTCQX: TCNNF) reported that its revenue increased 21% sequentially to $96 million in its first quarter of 2020 ending  March 31, 2020, versus $79 million in the fourth quarter. This beat the Yahoo! Finance average estimate for revenue of $90 million for the quarter.

Revenue increased 116% over last year’s first-quarter revenue of $44 million. Trulieve also delivered a net income of $14 million in the first quarter.  The company has a strong cash position of $100.8 million at March 31, 2020.

The company delivered adjusted EBITDA of $49.4 million, or 51%, for the first quarter of 2020 and reported earnings per share (EPS) of $0.12. This beat the Yahoo! Finance average estimate of $0.11 but was down from last year’s earnings of $0.13 for the first quarter of 2019. The achieved GAAP adjusted margin was 77%.

“Trulieve posted exceptional operational results for the quarter, continuing to grow our market share in Florida as we saw our dedicated team along with our scale and supply chain efficiencies successfully meet the increased demand for our products,” said Kim Rivers, Trulieve CEO.  “Trulieve’s execution of key fundamentals and financial discipline coupled with market share growth this quarter contributed to positive free cash flow, further strengthening our balance sheet and validating our financial stewardship. Our financial position continues to differentiate us in the market by providing flexibility to support both organic and external growth initiatives which is increasingly important during these times.”

Trulieve stock has risen 122% over the past 60 days as investors are flocking to one of the few cannabis companies that isn’t reporting massive net losses.

Strong Outlook

Trulieve was also flexing when it came to jobs. The company has hired more than 500 employees since mid-March, and currently has nearly 300 positions that need filling. Trulieve expanded its delivery fleet by 200 vehicles during March in order to address COVID demands.

Trulieve also reiterated its guidance for revenue between $380 million and $400 million for the year. The adjusted EBITDA guidance is for $140-$160 million.

Canaccord Genuity analyst Derek Dley said, “While we do not anticipate Trulieve experiencing any material slowdowns in servicing it patient base due to CVID-19, we believe the strong balance sheet does afford the company the luxury of patience and could potentially allow it to capitalize on acquisition opportunities in the near term.”

Quarter Highlights

The company noted that it launched new products including TruPowder, TruTincture drops, and our ground flower product offering during the quarter. Plus, it opened three new stores in Florida, ending the first quarter with 47 stores nationwide.


William SumnerAugust 15, 2019
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It’s time for your Daily Hit of cannabis financial news for August 15, 2019.

On the Site

Trulieve

Yesterday, Trulieve Cannabis Corp. (OTCMKTS: TCNNF) (CNSX: TRUL) announced the release of its second quarter financial results. Year-over-year, Trulieve’s increased 149% from $23.3 million to $57.9 million. Keeping pace with revenue, operating expenses also rose from $6 million to 14.8 million, representing a 146% increase. Gross profit was $37.6 million, and the gross profit margin was 65%. Adjusted EBITDA was $31.6 million.

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) has reported its financial results for the second quarter, ending on June 30, 2019. Revenue rose from $19.2 million in the previous quarter to $26.6 million, representing an increase of 39%. If one were to include Harvest Health’s completed and pending acquisitions, quarterly revenue would be $78 million.

Money Moves From Aurora Cannabis, Green Growth Brands

Aurora Cannabis Inc.  (NYSE | TSX: ACB) said that it has secured commitments from an expanded syndicate of lenders led by the Bank of Montreal to amend and upsize its existing C$200 million secured credit facility.

Green Growth Brands Inc. (CSE:GGB) (OTCQB:GGBXF) said that it has entered into backstop commitment letters with each of All Js Greenspace LLC, Park Lane Capital Limited, and Chiron Ventures Inc. in which they have committed to subscribe for and purchase up to C$102,796,241 in the aggregate or roughly $77 million of convertible debentures to support the Company’s operations and capital needs.

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) stock dropped over 10% after the company announced its financial results for the first quarter ending June 30, 2019. The worst of the news in the release was that the company’s fiscal first-quarter net losses of C$1.28 billion, or C$3.70 a share, dwarfed last year’s losses of C$91 million, or 40 cents a share. The loss was attributed to a non-cash charge of $1.2 billion in Canopy’s extinguishing warrants related to the Constellation Brands Inc. (NYSE: STZ) investment.

In Other News

Vireo Health

Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) announced that its affiliate, Ohio Medical Solutions (OMS), has been granted a Certificate of Operation by the Ohio Department of Commerce. OMS, which was previously granted a provisional processing license, will begin operations immediately. The license will allow OMS to purchase plant material from cultivators and manufacture Vireo-branded medical cannabis products.  “We are delighted that Ohio Medical Solutions will begin manufacturing Vireo products for the benefit of Ohio patients,” said Vireo CEO, Kyle Kingsley, M.D. “The City of Akron has been great to us and as our business grows, we look forward to continuing to create new jobs and make a positive impact on the local economy.”

Front Range Biosciences

Front Range Biosciences (FRB) announced that it has entered a collaborative licensing agreement with Steep Hill, and that it will acquire Steep Hill’s Genomics Research & Development team. The agreement will help accelerate FRB’s marker-assisted breeding program and develop new traits and varieties of hemp and cannabis. “The Steep Hill R&D team is among the top three cannabis genomics groups in the world, and we are very excited to welcome them to FRB,” said Dr. Jonathan Vaught, CEO and Co-Founder of FRB. “This acquisition is a major value inflection point for FRB…”

Medical Marijuana Inc.

Medical Marijuana Inc. has filed its financial results for the second quarter. Revenue rose 30.8% to $20.7 million. Gross profit was $15.4 million and adjusted EBITDA was $1.5 million. General and administrative expenses decreased from 21% of sales in Q2 2018 to 16% of sales revenue. “We are excited to continue our tremendous sequential success with the second quarter of 2019 proving to be the largest sales revenue quarter in the history of our Company,” said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. “As the world continues to become more receptive to learning about the benefits of hemp-derived CBD, we are enthusiastic about being at the forefront of the global cannabis industry which, according to Arcview Market Research, could be worth $57 billion by 2027.”


William SumnerApril 11, 2019
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4min590

It’s time for your Daily Hit of cannabis financial news for April 11, 2019

On The Site

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) received approval from the Illinois Department of Financial and Professional Regulation (IDFPR) for Cresco’s previously announced acquisitions of licensed medical cannabis dispensaries MedMar Rockford and MedMar Lakeview, located in the popular Wrigleyville neighborhood of Chicago.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) reported its fourth quarter and 2018 full-year results with revenue rising 172% to $35.9 million from last year’s $28.3 million for the same time period. The company’s net income grew a whopping 3,467% in the fourth quarter to $10.7 million from last year’s $0.3 million for the same time period.

In Other News

KushCo Holdings

KushCo Holdings (OTCQB: KSHB) announced the release of their financial results for the second fiscal quarter of 2019, which ended on February 28, 2019. Quarter-over-quarter, the company’s revenue rose by 39% to $35.2 million. The net loss for the quarter was $8.9 million. Adjusted EBITDA was $5.2 million. As of February 28, the company had $17.9 million in cash. “Our focus remains the build out of a scalable, sustainable business, as we cement our presence as the primary supply chain partner to the cannabis, CBD and related industries,” said KushCo CEO Nick Kovacevich. “As a result of a strong first half of the year, including the signing of a number of long-term supply arrangements-in-principle with several new large, well-known customers, we are raising our revenue guidance from between $­110 million and $120 million for fiscal year 2019 to between $140 million and $150 million.”

White Label Liquid

White Label Liquid, Inc. (OTC: WLAB) today released their financial results for the 2018 fiscal year. Revenue for the year was $7,006,110. The company experienced a net loss of $149, 285. “We had a great year, but it’s only just the beginning,” said White Label Liquid CEO Yaron Elkayam in a statement. “These numbers reflect not just the hard work of our partners all along our supply chain; they are also a reflection of the growing strength of the CBD industry.”

Eve & Co Incorporated

Eve & Co Incorporated (TSX-V: EVE) has entered into an engagement letter with Haywood Securities Inc. Haywood Securities has agreed to purchase 20 million special warrants of the company, at a price of $0.50 per warrant, for a total of $10 million. The offering is expected to close on or around May 10, 2019.


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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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