This is your Daily Hit of cannabis financial news for the week ending December 2, 2021.
On The Site
Despite the controversy over Delta-8, sales are beating some popular CBD companies. Hemp Benchmarks has been following the price of Delta-8 within the hemp industry and recently highlighted the company LFTD Partners (OTC: LSFP), whose sales rival many established CBD companies. Two weeks ago, the company reported its third-quarter revenue had risen 32% to $8.8 million and net income grew by 40% to $2.2 million. Savage reported that it had revenues of $20 million in the third quarter, but doesn’t look to have Delta-8 products in its portfolio. Still, the pro-forma of the combined companies puts it near a $30 million quarter. This year, a well-respected brand Plus Products essentially went bankrupt. While Charlotte’s Web (OTC: CWBHF) reported revenues of $23 million in the most recent third-quarter earnings report, this was down from 2020’s third-quarter revenue of $25 million.
The numbers are in and it’s official—Green Wednesday 2021 was a big one for the cannabis industry, while Black Friday fizzled in comparison. Green Wednesday saw cannabis sales increase across the U.S. Black Friday did not have the sales growth seen in previous years, though some data (Flowhub) showed larger order values and bigger discounts than Green Wednesday. Data from market analytics and cannabis companies like Headset, LeafLink, Lantern, Glass House Brands, and others show common trends regarding most popular products and year-over-year sales numbers. Using this data, companies extrapolate some possible variables affecting this year’s numbers, including a decreased emphasis on Black Friday door-buster deals targeted towards packing stores with bargain-hungry shoppers, focusing instead on online sales spread out over the holiday season (Springbig).
Green Wednesday, Black Friday, and Cyber Monday deals are over, but plenty of people are still shopping for the holidays. Jushi Holdings (OTC: JUSHF) just recently conducted a holiday poll surveying 1,000 cannabis consumers in legal states and confirmed what end-of-year revenue knows to be true: people love cannabis during the holidays. For different reasons, too. Some people use cannabis to unwind during stressful holiday times, others bring enough to share with the family. Medical consumers might bring cannabis along to make eating holiday food a little easier. The poll said 9/10 consumers plan on incorporating cannabis into their holiday and almost 76% of respondents said they plan to give cannabis-related gifts this year. If you’re in that almost-76%, we’ve compiled a list of some great cannabis gadgets, glass, and accessories to gift yourself or a friend this year, including a few great promotions.
In Other News
Sunstream IVXX Investment Corp., an affiliate of SunStream Bancorp Inc., a joint venture sponsored by Sundial Growers Inc. (NASDAQ: SNDL), today announced that it has submitted a draft registration statement on a confidential basis to the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock. Sunstream IVXX will be a specialty finance company that operates as a closed-end, non-diversified management investment company that anticipates electing to be regulated as a business development company under the Investment Company Act of 1940. The number of shares of common stock to be sold and the price range for the proposed offering have not yet been determined. The purpose of the offering is to use the net proceeds therefrom to invest primarily in the debt of U.S. cannabis companies across the cannabis industry. Sunstream IVXX intends to commence the public offering in the first quarter of 2022.
Akerna (Nasdaq: KERN) shows that Green Wednesday (11/24) and Black Friday (11/26) were the second and third highest sales days for legal cannabis in the US this year, with Green Wednesday bringing in $98.2 million in sales and Black Friday bringing in another $99 million. The largest day for cannabis sales this year was 4/20, the unofficial cannabis consumption holiday.