The Daily Hit: August 12, 2021

It’s time for your Daily Hit of cannabis financial news for August 12, 2021.

On the Site

 Columbia Care Inc.  (CSE: CCHW) (OTCQX: CCHWF)  reported financial and operating results for the second quarter ending June 30, 2021, as revenue grew 232% to $109.7 million. This was a sequential increase of 19% and in line with the average analyst estimate from Yahoo Finance for revenue of $109 million. Columbia Care noted that the second quarter 2021 results included contributions from Green Leaf Medical as of the date of acquisition, June 10, 2021. With the close of the Ohio acquisition in July, all financial reporting will be consolidated under Reported Results going forward.

WM Technology, Inc.  (Nasdaq: MAPS) announced its financial results for the second quarter ending June 30, 2021. Revenue increased to $46.9 million, up 21% from the second quarter of 2020 or 55% when adjusting the prior second quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from Weedmaps marketplace. WeedMaps reported a net income of $16.8 million versus $9.4 million from the prior-year period. Adjusted EBITDA was $8.5 million as compared to $10.4 million from the prior year period. 

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported financial results for the second quarter ending June 30, 2021 with consolidated revenue increasing 11.4% year-over-year to $24.2 million. This missed the Yahoo Finance average analyst estimate for revenues of $28 million. Charlotte’s Web said that increased retail volumes have resulted in ongoing incremental quarterly gains in retail market share. Charlotte’s Web grew its number one market share across its core retail channels, including total US Food/Drug/Mass retail, total US natural specialty retail. Net losses were trimmed to $5.3 million from last year’s $14.4 million. The earnings per share were ($0.04) which fell from last year’s ($0.13). It also beat the estimates for ($0.05).

Serial hydroponic acquirer GrowGeneration Corp. (NASDAQ: GRWG) reported record second-quarter 2021 revenues of $125.9 million, versus $43.5 million in the same period last year. This beat the average analyst estimate from Yahoo Finance for revenues of $111 million.  GrowGen also reported second-quarter 2021 GAAP pre-tax net income of approximately $9.6 million versus pre-tax net income of $2.7 million in the same period last year. The company also raised its 2021 revenue guidance to $455 to $475 million. Diluted earnings per share, inclusive of tax expense, were $0.11 versus last year’s $0.06. This slightly missed the estimate for earnings of $0.12. Investors weren’t pleased and sent the stock tumbling over 9% to lately sell at $39. The average price target for the stock is $59.

Neptune Wellness Solutions Inc.(NASDAQ: NEPT) (TSX: NEPT) delivered its financial and operating results for the first-quarter ending on June 30, 2021 as revenues rose slightly to $12.4 million versus $11.2 million in the fiscal year 2021. Neptune said it exceeded its pre-announced revenue range of $10 to $12 million. First-quarter revenues of $12.4 million increased 83% versus revenues of $6.8 million in the fourth quarter of the fiscal year 2021. Still, Neptune delivered a net loss of $23 million versus last year’s net loss of $11.4 million for the same time period. Despite the company’s ability to bring in revenue, the executive management team said it had asked the Board of Directors to form a Strategic Review Committee to evaluate the company’s business plan, capital deployment, and long-term strategy to identify alternatives to enhance shareholder value.

 

Aleafia Health Inc. (OTCQX: ALEAF) delivered its financial results for the quarter ending June 30th, 2021 with revenue of $10.6 million. The net loss for the quarter was $36,000 versus a net loss of $4.0 million over the prior year’s quarter. Aleafia said the improvement in net loss over the prior year’s quarter was primarily due to improved gross profit, a $12.1 million gain on the sale of certain clinic assets in the transaction with Myconic, partially offset by bad debt expense of $7.2 million.

In Other News

Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) announced financial results for its second quarter ended June 30, 2021. Net sales increased 46.7% to $133.8 million compared to $91.2 million. Gross profit increased 65.5% to $29.6 million, or 22.1% of net sales, compared to $17.9 million, or 19.6% of net sales. Net income attributable to common stockholders was $2.3 million or $0.05 per diluted share compared to a $1.9 million or $0.08(1) per diluted share. Pro forma adjusted net income(2) was $12.5 million or $0.30 per pro forma diluted share compared to $4.0 million or $0.12 per pro forma diluted share. Adjusted EBITDA(2) increased 127.5% to $16.2 million compared to $7.1 million.

Agrify Corporation (NasdaqCM:AGFY) announced financial results for the period ended June 30, 2021. Revenue increased 203% to $11.8 million for Q2 2021 compared to $3.9 million for Q2 2020 and increased 69% sequentially from $7 million in Q1 2021. Net losses increased to $5.6 million. New bookings were $30.7 million for Q2 2021, which is the highest quarterly bookings total for the Company to date. Total backlog increased to $101.1 million from $82.2 million at the end of Q1 2021.

cbdMD, Inc. ( NYSE American: YCBD, YCBDpA) announced its financial results and its business highlights for its third quarter ended June 30, 2021. Net sales of $10.6 million for the third quarter of fiscal 2021 remained steady year-over-year resulting in record trailing twelve-month net sales of over $46.4 million.  E-commerce direct-to-consumer net sales were $7.8 million, a decrease of 4.9% from the prior year’s third fiscal quarter. Loss from operations increased to $6.7 million for the third quarter of fiscal 2021 compared to $1.4 million from the prior year’s third fiscal quarter. Net income attributable to common shareholders for the third quarter of fiscal 2021 was approximately $977,000, or $0.02 per share, as compared to net loss of approximately $9.1 million, or $(0.18) per share from the prior year’s third fiscal quarter. The net income attributable to common shareholders was principally attributable to a decrease of approximately $6.9 million in the non-cash contingent liability which is associated with earnout shares which may be issued under the terms of the December 2018 acquisition of Cure Based Development (which owned the cbdMD brand).

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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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