The Daily Hit: August 17 2020

It’s time for your Daily Hit of cannabis financial news for August 17, 2020.

On The Site

Maine

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.

Colorado

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

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

 

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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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