It’s time for your Daily Hit of cannabis financial news for August 17, 2020.
On The Site
Maine’s Office of Marijuana Policy announced that retail sales of adult-use marijuana to consumers 21 years of age or older will be permitted starting on Friday, October 9, 2020. The office, which is a part of the Maine Department of Administrative and Financial Services, intends to issue the first active licenses to recreational cannabis businesses on Tuesday, September 8, 2020.
THE STATE OF COLORADO: CANNABIS PURCHASING TRENDS SUGGEST A SWITCH FROM “CONSUMER” TO “PATIENT”
AS DISPOSABLE INCOME LEVELS LESSEN DURING COVID-19 PANDEMIC
The state of Colorado released its marijuana tax revenues for July which implies total monthly sales of $206.7M (+ 7% MoM; 20% YoY) with medical marijuana revenues at $42.4M (+4% MoM; 42% YoY) and recreational use ~$164.2M (+8% MoM; 16%YoY). We estimate that the average cardholder spends in the month ticked up to ~$510 from ~$490 in June ($338 July ’19). The number of cardholders at month-end remained flat from June at ~83K but up from ~80K since the pandemic hit. (NOTE: Not every registered cardholder will make purchases in any given month, in fact, some states have revealed active patients at ~70-75% thus the estimated average cardholder spend per month could be understated given that the denominator in our calculation is likely lower.)
Nutritional High International Inc. (CSE: EAT) said that it has completed the previously announced acquisition of Psychedelic Science Corp. In June, The company announced it was buying Kruzo LLC, a company focused on developing products and conducting research on the psychoactive cacti Peyote. Kruzo also develops other plant-based medicinal products derived from Asian herbal medicine as well as cannabis.
The company didn’t say the value of the deal, but it did plan to raise $1.5 million prior to the acquisition. The company though announced in July that it closed the offering with gross proceeds of only $1.0 million.
In Other News
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial and operating results for the second quarter ended June 30, 2020.
- Record managed revenue of $121.4 million, which grew 120% year-over-year and 16% sequentially, despite an estimated $25.6 million revenue related impact from COVID-19 largely in Nevada and Massachusetts
- Record total revenue of $117.5 million, which grew 142% year-over-year and 22% sequentially
- Record Adjusted EBITDA of $28.0 million, which grew more than five times 2019 levels and 40% sequentially
- Generated cash flow from operations of $23.4 million
- Select launched into 2 new states
- Completed acquisition of Arrow in Connecticut
- Completed acquisition of Maine Remedy assets that were previously managed