Its time for your Daily Hit of cannabis financial news for December 16th, 2019.
On the Site
Valens GroWork Says Revenue Almost Doubles From Last Quarter
Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) gave revenue guidance for the fourth quarter of 2019 in the range of $27 million to $30 million. This is a big jump sequentially for the company as it delivered revenue of $16.5 million in the third quarter of 2019. Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) gave revenue guidance for the fourth quarter of 2019 in the range of $27 million to $30 million. This is a big jump sequentially for the company as it delivered revenue of $16.5 million in the third quarter of 2019. In addition to giving a heads up on the increasing revenue, Valens said it is planning to launch a Normal Course Issue Bid or NCIB for the purchase and cancellation of up to 6,275,204 shares, representing approximately 5.0% of the issued and outstanding Shares, calculated on a non-diluted basis.
HEXO Reports Decline In Revenue, Rising Expenses
HEXO Corp. (TSX: HEXO)(NYSE: HEXO) reported its financial results for the first quarter fiscal 2020 ended October 31, 2019, in Canadian dollars. The company reported that the net revenue in the first quarter decreased sequentially to $14.5 million versus $15.4 million in the fourth quarter of 2019. The revenue increased over $5.7 million reported in the first quarter of 2019.
The net loss for the quarter was an eye-popping $62.4 million. The company attributed the increase in loss to “The larger magnitude of the company’s operations, the expanding scale production and sales in the period, and an impairment loss.” Operating expenses increased from $22 million in the first quarter of 2019 to $35.1 million for the first quarter of 2020.
In Other News
Jerry Jones, Dallas Cowboys Owner, Speaks on Cannabis Use
The owner of the NFL’s Dallas Cowboys told CBS Sports that the issue of cannabis use is one that the NFL is evaluating. He says, “It’s also an issue contemporarily we’re excited about being in step with the social and legal scene as it goes forward. And, so, we not only have the interest of competitiveness in mind when it comes to any type of substance, we have the issue of the law and we have the issue of the society focus on it.” While he did not confirm any upcoming changes in the league, his comments are a step forward. Other athletes and prominent figures in sports have shown their support for policy changes regarding cannabis in the NFL and other national sports leagues.
FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) announced that Nasdaq has approved its application to have its Class B Subordinate Voting Shares listed on the Nasdaq Capital Market. FSD Pharma expects the Shares to commence trading on Nasdaq in the near future.