It’s time for your Daily Hit of cannabis financial news for August 24th, 2020.
On the Site
Hollister Revenue Grows From Arizona Market
Hollister Biosciences Inc. (CSE: HOLL), (OTC: HSTRF) reported that its revenue for the second quarter ending June 30th, 2020 was $8.47 million versus $0.2 million for the same time period last year. the company attributed the revenue growth to the sale of concentrates, pre-rolls, and contract manufacturing services. The company also delivered net income for $0.3 million compared to a net loss of $2.1 million in the first quarter of 2020.
The bulk of the company’s revenue comes from Arizona’s total revenue over the last six months of $8.7 million. The state is also turning in positive results with net income for the last six months of $709,239. California generated revenue of $651,862 for the last six months but had a net loss of $856,087.
Inner Spirit Reports 575% Increase in Revenue
Canadian-based Inner Spirit Holdings Ltd. (CSE: ISH) (OTC:INSHF)known for its national network of Spiritleaf retail cannabis stores reported system-wide retail sales of $20.5 million in the second quarter of 2020, an increase of 343% compared with $4.6 million in the second quarter of 2019. This was a 19% increase sequentially from the first quarter’s $17.1 million. Total revenue increased 575% to $5.4 million in the second quarter versus $0.8 million in the second quarter of 2019. This increased 31% sequentially from $4.1 million in the first quarter of 2020.
Inner Spirit delivered a total net loss of $1.2 million in the second quarter of 2020, or $0.01 per share, compared with $2.8 million, or $0.02 per share, in the second quarter of 2019.
Executive Spotlight: Camille Roistacher
Green Market Report highlighted Camille Roistacher, the CEO and co-founder of Voyage Distribution and Wyllow, both brands in the cannabis space. Voyage Distribution is a data-driven cannabis supply chain company and Wyllow is an inclusive cannabis flower brand that is launching in select dispensaries throughout California.
Camille is a woman of color disrupting the cannabis space. She holds a Bachelor’s Degree in Business Administration with a focus on finance from UC Riverside. She said, “In the next five years, we plan to expand our footprint throughout additional states with a focus on emerging markets that need more representation from female cannabis executives.”
In Other News
Charlotte’s Web Holdings Inc. to File Business Acquisition Report for Abacus Health Products
The hemp-industry leader said in a press release on March 23rd, 2020 that they intend to acquire topical pain relief company, Abacus Health Products. The company announced that they will be relying on a 45-day extension to the filing deadline granted by the Ontario Securities Commission, due to COVID-19’s impact. This extension is pursuant to Ontario Instrument 51-505, which allows for temporary extensions from certain corporate finance requirements with deadlines. Charlotte’s Web expects to file their business acquisition report in September.
The original press release from Charlotte’s Web back in March reads, “This acquisition combines Charlotte’s Web, the market leader in hemp-derived CBD wellness products, with Abacus, the market leader in OTC topical products combining active pharmaceutical ingredients with hemp extract, to create the world’s largest vertically integrated hemp-derived CBD company. For Charlotte’s Web the combination benefits from the current U.S. regulatory environment which favors topical- CBD products within the food/drug/mass (“F/D/M”) channel. For Abacus, the acquisition provides the advantages of joining an established and industry leading platform and benefiting from leading CPG management and brand equity with a low-cost vertical supply chain producing “the world’s most trusted hemp extract™”. The combined entity is anticipated to represent approximately 34.7%3 of U.S. CBD sales within the F/D/M channel.”
The company also announced plans to release its second quarter results on September 14th, 2020.