It’s time for your Daily Hit of cannabis financial news for August 16, 2021.
On The Site
MariMed, Inc. (OTCQX: MRMD) reported its financial and operating results for the quarter ending June 30, 2021, as revenue increased 239% to $32.6 million versus last year and jumped 32% sequentially. MariMed also delivered a net income of $7.6 million in the second quarter of 2021 versus a net loss of $1.1 million in the second quarter of 2020, and net income of $4.3 million versus the first quarter of 2021. The company also increased its revenue guidance in 2021 to $118 million.
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) is buying Colorado-based CBD-platform Balanced Health Botanicals (BHB) in a deal valued at $75 million. Balanced Health owns and operates one of the largest brands in the hemp-derived cannabidiol (CBD) market in the United States, providing Village Farms with immediate entry into the US CBD market in a consumer products category adjacent to the high-THC cannabis market, as well as the broader consumer packaged goods (CPG) wellness arena. Balanced Health is a profitable business and the acquisition is expected to be immediately accretive to net income.
Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) released its financial results for the three ending June 30, 2021, with total revenue of $29.5 million versus last year’s $8.3 million. Auxly’s total net revenues from the sale of adult-use cannabis in Canada were $20.9 million for the quarter, more than double the same period in 2020. The net loss from continuing operations was $3.6 million versus last year’s $30 million. The adjusted EBITDA improved to a negative $3.3 million versus last year’s negative $10.4 million.
Ayr Wellness Inc. (OTC: AYRWF) is buying cannabis beverage company Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers in a deal valued at potentially $40 million. The acquisition is expected to close by the end of 2021. Levia Cannabis-Infused Seltzers is currently available in Massachusetts. The products allow for rapid onset of the effects of THC, typically 15-20 minutes, allowing for a more consistent consumption experience than many edible products. Stifel Research recently completed a survey among cannabis consumers and learned that many new customers were trying edibles and beverages as a discreet way to try the product. Female consumers were 11% more likely to purchase a cannabis beverage said another recent study.
Though it may not feel true with record high temperatures scorching the country from West Coast to East, fall is waiting right around the corner, and with it Black CannaBusiness Magazine’s second annual Black CannaConference & Expo. The event will take place on November 18-20th at the Ernest M. Morial Convention Center in New Orleans, where hundreds of BIPOC Cannabis founders, professionals, and consumers will be coming together to network, educate, and be educated by some of the most high-profile professionals in today’s market.
In Other News
TPCO Holding Corp. (NEO: GRAM.U) (OTCQX: GRAMF) announced that it has appointed Troy Datcher to serve as the company’s new Chief Executive Officer, effective Sept 8th. The company also delivered its earnings results with net sales for Q2 2021 at $54.2 million, comprised of $11.9 million in direct-to-consumer revenue and $42.3 million in wholesale revenue. This was driven by 7.2% growth in the Company’s Direct to Consumer Business and 22.6% growth in Wholesale revenue. Q2 2021 DTC and wholesale revenues were $11.9 million and $42.3 million, respectively. Adjusting for a full year of sales beginning January 1, 2021, H1 2021 net sales would have been approximately $99.8 million. Gross profit for Q2 2021 was $8.1 million, or 15% of net sales. Adjusted EBITDA loss for Q2 2021 was $10.4 million. Adjusted EBITDA removes the effects of changes in the fair value of financial instruments, impairment charges, and other non-cash items.
Stem Holdings, Inc. d/b/a Driven by Stem (OTCQX: STMH) (CSE: STEM) reported results for the third fiscal quarter ended June 30, 2021. Stem reported third-quarter record gross sales of $12.4 million and net sales of $10.6 million, a 104% increase and 103% increase, respectively, over the prior year’s $6.1 million gross sales and $5.2 million net sales. Gross margin improved 7.6% to 41.8%, reflecting improvements in productivity, mix, and synergies from the Company’s acquisition of Driven Deliveries, Inc.
HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) reported financial results for the second quarter ended June 30, 2021. Revenue increased 25% to over $1.2 million for Q2 2021 compared to $983,496 in Q1 2021 and increased 84% compared to $670,728 in Q2 2020. The net losses increased to $6.5 million.
Origin Therapeutics Holdings Inc. (CSE: ORIG Proposed), an actively managed investment issuer focused on making equity investments in psychedelics-related companies, is pleased to announce that it has completed a non-brokered private placement resulting in gross proceeds of $6,550,000 through the sale of 26,200,000 special warrants priced at $0.25 per warrant. The net proceeds of the Offering will be used by Origin Therapeutics for investments in private, early-stage companies in the growing psychedelics sector.