The Daily Hit is a recap of the top cannabis business stories for April 27, 2022.
ON THE SITE
TURNING POINT BRANDS, INC.
Turning Point Brands, Inc. (NYSE: TPB) announced financial results for the first quarter ended March 31, 2022. Turning Point reported that net sales decreased 6.3% to $100.9 million, while net sales for Zig-Zag and Stoker’s Products increased 10.1%. Net income decreased 6.7% to $11.0 million. The adjusted EBITDA dropped 9.8% to $25.3 million and the diluted EPS of $0.55 and Adjusted Diluted EPS of $0.71 as compared to $0.57 and $0.80 in the same period one year ago, respectively. Read more here.
CANOPY GROWTH CUTS COSTS
After the market closed on Tuesday, Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced that it was undertaking a series of initiatives to reduce costs and drive efficiency in order to accelerate its path to profitability. Canopy Growth management said it expects to generate a cost of goods sold COGS savings of $30 – $50 million and reduce SG&A expenses by $70 – $100 million within 12 – 18 months. Read more here.
VERANO HOLDINGS CORP.
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its 2021 financial results with fourth-quarter 2021 revenue of $211 million and a net income of $27 million, or 19% of revenue. this was also Verano‘s first quarter to implement U.S. accounting standards called GAAP and audited in accordance with U.S. PCAOB. Read more here.
PSYCHEDELICS AND CRIME
When discussing the many social issues facing the U.S., one stands out—the war on drugs, which still haunts the law enforcement system today as it continues to incarcerate non-violent minor drug crime offenders even in states where a Schedule 1 drug (cannabis) is legal. Reform is coming on this issue. In the November 3rd, 2020 election, drug policy reforms were approved by voters in every state in which they were on the ballot, according to the National Association of Criminal Defense Lawyers. Read more here.
IN OTHER NEWS
Harvest Direct Enterprises, a biotech company pioneering lossless cannabis processing, announced today that industry titans and activists, Steve DeAngelo and Andrew DeAngelo, are joining the company’s advisory board. Steve and Andrew DeAngelo will leverage their experience to assist Harvest Direct in engaging with researchers for clinical trials, while also engaging with national and international licensing partners interested in Harvest Direct’s patented LACY technology. Read more here.
Fluresh LLC, a vertically integrated cannabis operators in Michigan, announced today the closing of a senior secured note with a federally regulated commercial bank headquartered in southeast Michigan. The secured Bank Note closed on December 28, 2021, and is for aggregate gross proceeds of $25 million. The Bank Note has a variable interest rate and, at the time of closing, bore an interest rate of 5.75% per annum with 50% of the aggregate proceeds capped at 7.0%. Read more here.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States, today announced the closing of the acquisition of Greenhouse Wellness West Virginia Dispensaries LLC, holder of a West Virginia dispensary permit. Trulieve paid an immaterial amount of cash consideration for the transaction. Greenhouse was awarded the dispensary permit in Martinsburg, West Virginia, in January 2021. Read more here.
HIGH TIDE 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 the company has completed its acquisition of three operating cannabis stores in Ontario, operating under the name Crossroads Cannabis for CAD $1.9 million. The stores are located in Stratford, Hanover, and Markdale. Read more here.
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative products with two facilities based in Québec, today announced its fiscal second quarter 2022 financial and operating results for the three and six-month periods ended February 28, 2022. The company recorded $7.4 million in quarterly revenues. Read more here.
Endexx Corporation (OTC: EDXC), a provider of hemp-derived wellness and nutritional products, today announced its Form 10Q, first quarter ending December 31, 2021. Endexx continues to rebound and grow following two years of pandemic and economic challenges. Ongoing supply chain issues impacted packaging and individual ingredient availability and may continue to delay some production runs in key product sets during 2022/2023. Read more here.
Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, announced today that its affiliate in Germany, Clever Leaves Germany GmbH, has received all of the required regulatory licenses, permits and certifications by the German authorities to be able to distribute medical cannabis to wholesalers and around 20,000 pharmacies located in Germany. Read more here.