It’s time for your Daily Hit of cannabis financial news for April 22, 2020.
On The Site
High Tide Inc. (OTCQB:HITIF) reported announced approximately $789,000 in systemwide gross revenues from April 18-20, 2020 (“4/20 Weekend”), which is a 79% increase over the $441,000 recorded from April 19-21, 2019, despite the COVID-19 pandemic limiting the Company’s scope of bricks-and-mortar operations. This is certainly positive news as the company closed its stores due to COVID-19 for two weeks at the end of March and in early April.
As a share of total sales, High Tide’s 31 branded retail cannabis stores across Canada contributed 68%, while e-commerce accessory sales primarily generated on Grasscity.com comprised the remaining 32%. An approximate blended gross margin of 39% was generated over the 4/20 Weekend by the business-to-consumer aspects of the Company’s assets.
The Campaign to Decriminalize Nature DC (DNDC) released the results of a new poll on April 21 that showed support for mushroom decriminalization in Washington DC. The “Initiative 81, the “Entheogenic Plant and Fungus Policy Act of 2020,” has enough support to pass in the District of Columbia according to a survey completed by Fairbank, Maslin, Maullin, Metz & Associates (FM3).
The poll sponsored by the New Approach PAC demonstrated that a majority of DC voters support Initiative 81, a measure that would make enforcement of existing restrictions on plant medicines or entheogens among the Metropolitan Police Department’s lowest law enforcement priorities. Of those polled, 51% support the initiative based on the text of the measure alone. When presented with a plain-language explanation, that support grows to 60% and continues to increase and solidify as voters learn more.
Tetra Bio-Pharma Inc. (OTCQB:TBPMF) announced its Orphan Drug development strategy and provided a management update. The company said it is focusing on generating intellectual property including use, manufacturing, and innovative molecule protection. Tetra said it received a U.S. Food and Drug Administration (FDA) Orphan Drug Designation for secondary cannabidiol (CBD) formulation of its cannabinoid topical drug PPP004 in the treatment of epidermolysis bullosa.
“Each ODD application is driven by scientific data generated by Tetra’s research and development department and in line with a commercialization strategy. Tetra is positioning itself as a world leader in cannabinoid drug development and increasing its ODD portfolio provides opportunities that will allow us to generate value for shareholders. Over the coming weeks, Tetra shall expand on its commercial ophthalmic and topical drug programs,” said Dr. Chamberland CEO & CRO, Tetra Bio-Pharma Inc.
The COVID-19 pandemic has hit all corners of the country and globe. From a case and death count that is still growing to a devastated economy, to all of us overusing the term “social distancing,” no one has been left unaffected. But there’s an unspoken cost to the pandemic as well. Due to the unprecedented economic and unemployment tailspin, many non-profit organizations need our resources more than ever.
The California Cannabis Industry Association is taking steps to address this urgent need by launching the 420 Cannabis Cares Fundraiser. In light of this unprecedented public health crisis, CCIA and the cannabis community is meeting this moment by raising contributions to aid in combating COVID-19 and keeping communities safe.
In Other News
Organigram Holdings Inc. (NASDAQ:OGI) has established an at-the-market equity program that allows the Corporation to issue up to C$49,000,000 of common shares from treasury to the public from time to time, at the Corporation’s discretion. Any Common Shares sold in the ATM Program will be sold through the Toronto Stock Exchange, the NASDAQ Global Select Market or any other marketplace on which the Common Shares are listed, quoted or otherwise traded, at the prevailing market price at the time of sale.
Innovative Industrial Properties, Inc. (IIPR) closed on the acquisition of a property in Michigan, which comprises approximately 115,000 square feet of industrial space in the aggregate. The purchase price for the property was $5.0 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement for the property with a wholly-owned subsidiary of Cresco Labs Inc. (Cresco), which intends to operate the property as regulated cannabis cultivation and processing facility upon completion of redevelopment. Cresco is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to $11.0 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be $16.0 million.
Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF), a global cannabis CPG brand company with an award-winning portfolio of products, announced today that its cannabis-infused chocolate products have shipped in a new, refreshed packaging design in California. The new packaging will be rolled out by its licensees across the Company’s multi-state platform in the coming months.