It’s time for your Daily Hit of cannabis financial news for April 5, 2021.
On The Site
Florida-based Trulieve Cannabis Corp. (OTCQX: TCNNF) is making a big move in Pennsylvania with the acquisition of Keystone Shops from Anna Holdings LLC in a deal valued at $60 million. Keystone has locations in Philadelphia, Devon, and King of Prussia. The deal consists of $40 million in Trulieve stock and $20 million in cash.
The acquisition will add three fully operational dispensaries in the Philadelphia area to Trulieve’s retail footprint of 83 dispensaries nationally. It will also expand Trulieve’s footprint in Pennsylvania, the fifth most populated and limited-license state, adding to Trulieve’s existing operations in Pennsylvania. At this time, the state is only legal for medical marijuana, while the neighboring state of New Jersey will begin selling adult-use cannabis as early as this year. It is anticipated that once New Jersey begins these sales, it could steall sales from Pennsylvania residents.
International cannabis company IM Cannabis Corp. (NASDAQ: IMCC) entered into a deal to buy MYM Nutraceuticals Inc. and its licensed producer subsidiary Highland Grow Inc. in a deal that is said to be immediately accretive. The acquisition reinforces IMC’s strategy as a leading global premium cannabis producer and purveyor. Following completion of the Transaction, expected to occur before the end of the second half of 2021, IMC will continue to operate under the IM Cannabis Corp. name with its common shares trading on the NASDAQ Capital Market and Canadian Securities Exchange under the ticker symbol “IMCC“.
Cannabis tourism is a part of the ever-growing cannabis industry. Many cannabis consumers are looking for ways to enjoy their buds while traveling across the country or internationally. Cannabis tourism allows for travelers to get accommodated in a way that meets their needs, as well as the opportunity to enjoy their marijuana in different, fun ways. Despite the great benefits of cannabis tourism, many cannabis companies have hit their sales due to low tourism in their respective cities.
In Other News
Planet 13 Holdings Inc. (OTCQB:PLNHF) announced its financial results for the three-month and twelve-month period ended December 31, 2020.
Revenues were $20.1 million for the fourth quarter versus $16.5 million, an increase of 21.8%. Operating expenses in the quarter, excluding non-cash compensation expense and depreciation and amortization, were $8.0 million versus $7.1 million, an increase of 13.1%. Net loss before taxes of $1.2 million as compared to a net loss of $0.9 million, while the net loss of $2.9 million as compared to a net loss of $2.6 million.
For the full year, revenues were $70.5 million as compared to $63.6 million, an increase of 10.8%. Operating expenses for the year, excluding non-cash compensation expense, were $28.0 million as compared to $26.8 million, an increase of 4.3%. The net loss for 2020 before taxes were $0.8 million as compared to a net profit of $0.5 million. The net loss for the year was $7.9 million as compared to a net loss of $6.7 million.
“Based on our performance in March 2021, it is clear that Las Vegas is back.” Said Larry Scheffler, Co-CEO of Planet 13. “We dwarfed our single month record with $9.7 million in revenue in March, and we believe that as more people get vaccinated and Las Vegas continues to open, revenue will continue to increase. Looking back on 2020, we weathered the perfect storm of COVID-19 and the resulting 55% decrease in tourism and still increased revenue year over year, generating over $70 million while maintaining our share of the Nevada market.”
Vangst has announced that they are now offering a new Executive Talent Service, headed by Jennifer Bedford, their new VP of Executive Talent. The new service will utilize Jennifer’s expertise in order to secure top skilled talent as cannabis companies increase their ranks and states continue to legalize. In her role at Vangst, Jennifer will support the emerging cannabis market with strategic executive searches to recruit rapid-growth leadership teams.