It’s time for your Daily Hit of cannabis financial news for April 6, 2021.
On the Site
After the market closed on Wednesday, Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) delivered another quarter of solid results. The real estate investment trust (REIT) reported that its total revenues increased 103% to $42.9 million for the first quarter ending March 31, 2021. This beat the yahoo Finance average analyst estimate for revenues of $42.88 for the quarter.
IIP also recorded net income of approximately $25.6 million for the quarter, or $1.05 per diluted share, and adjusted funds from operations (“AFFO”) of approximately $38.4 million, or $1.47 per diluted share (Note: AFFO per diluted share for the period includes the dilutive impact of the assumed full exchange of IIP’s $143.75 million of exchangeable senior notes for shares of common stock). This also beat the analyst estimate for $0.96. In addition, IIP paid a quarterly dividend of $1.32 per share on April 15, 2021, to common stockholders of record as of March 31, 2021, representing a 32% increase over the first quarter of 2020’s dividend and an approximately 6% increase over the fourth quarter 2020 dividend.
While millions of Americans are getting ready to enjoy the summer for the first time in over a year, the cannabis industry is already gearing up for the upcoming fall harvest. Taking place between October and early November, the period is called Croptober, and it is a time when roughly 80%-85% of the cannabis industry’s outdoor cannabis is harvested.
The reason why the industry harvests the majority of outdoor cannabis during this specific period has to do with the plant itself. Cannabis is an annual plant, which means it lives out its entire life cycle in a single growing season.
In Other News
The Alabama House of Representatives voted in favor (68-34-1) of the Compassion Act (SB 46), a bill that would allow registered patients with qualifying conditions to safely access and use medical cannabis. This marks the first time the Alabama House has considered a medical cannabis bill. A full summary of SB 46 is available here.
While SB 46 was previously passed by the full Senate, the bill was amended in the House. The bill will need to return to the Senate for final consideration before it can be sent to the governor’s desk.
Karen O’Keefe, director of state policies at the Marijuana Policy Project said, “Passing the Compassion Act will allow seriously ill patients to finally get the relief they deserve. Alabama is one of only 14 states in the country that continues to criminalize the medical use of cannabis, and while this bill is more restrictive than is ideal, it is a dramatic improvement from the status quo and would improve the lives of thousands of Alabamians. We urge the Senate to swiftly concur with the modified bill, and Gov. Ivey to sign it into law.”
Trulieve Cannabis (TCNNF -3.9%) has completed the previously announced acquisition of Mountaineer Holding, expanding the Florida-based company’s presence in West Virginia. The total consideration of the deal at $6M consisted of $3M in cash and the issuance of ~60.3K of Trulieve shares.Commenting on the transaction, Trulieve CEO Kim Rivers said: “The addition of Mountaineer achieves a significant presence for us in West Virginia.” The Mountaineer owns a cultivation permit, and two dispensary permits in the state.“We look forward to serving West Virginia patients, and expect to be operational before the end of 2021,” she added.Trulieve more than doubled its revenue in 2020 to $521.5M, yet like other U.S.-based cannabis stocks are weighed down by federal illegality of marijuana, noted a recent cover story in Barron’s.