It’s time for your Daily Hit of cannabis financial news for December 2, 2019.
On The Site
The cannabis industry continues to see a crossover of rap artists entering the space. The latest is Lil Wayne who announced on Monday the launch of GKUA Ultra Premium. The GKUA Ultra Premium will offer a line of high-potency cannabis products designed to provide consumers with ‘the best high of their lives.’
“I used to just want to get high, now I smoke to get inspired,” said Lil Wayne. “With GKUA, I’m sharing a feeling that I love.”
SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) delivered its second-quarter results in Canadian dollars with a net loss of $51.3 million loss and no revenues only a loss of $57 million versus last year’s loss of $17 million for the same time period. The second quarter of 2018 also experienced a net income of $179 million due to the gain on the sale of a subsidiary.
Currently, there is a bit of confusion regarding the legalization of hemp as an industry in the States. This confusion leads the local government to ban new farmers from attending to their hemp gardens for fear of being penalized under the new law.
The next few paragraphs will hopefully clear all the confusion away and allow new farmers to work on their land without much hesitation and limitation.
Last week was Thanksgiving and many cannabis companies and dispensaries ran holiday promotions. However, some cannabis companies though treat every day like its Thanksgiving as they make giving back to the community part of the company mission. These are some of the cannabis companies who give back every day and not just at the holiday.
In Other News
Indus Holdings, Inc. (CSE:INDS)(OTCQX: INDXF), a leading, vertically-integrated cannabis company, announced its financial results for the fiscal third quarter ending September 30, 2019. All figures stated are in US Dollars. Revenue generated for the three-month period ending September 30, 2019, was $10.1 million; 94% year-over-year growth. Revenue for the nine-month period ending September 30, 2019, was $26.2 million; 140% year-over-year growth.
EBITDA for the three-month period ending September 30, 2019, was ($16.8 million), EBITDA for the nine-month period ending September 30, 2019, was ($22.9 million). EBITDA included ($5.4 million) in write-offs of certain inventory in net loss, foregoing any future remediation, labor, and sales costs required. The inventory adjustments included revaluation and write-offs driven by the company’s decision to discontinue certain emending processes as a result of enhancing internal quality metrics, changes in materials requirements, inconsistent laboratory testing in California, and the overall economics of re-blending and reprocessing.
Chief Executive Officer, Robert Weakley, stated, “The Company achieved a new revenue record – $10.1 million in Q3. While that represents a 94 percent year-over-year increase, we did expect more. Our projections were impacted by a cultivation contract that was not fulfilled in Q3 – we had contracted for 2,000 pounds of flower in the quarter, which did not pass our lab tests and pricing agreement, resulting in more than a $3 million negative revenue impact. At the same time, our own harvest, which we planned to have two weeks of sales in Q3, got pushed to the beginning of Q4.”
4Front Ventures announced the company’s Q3 2019 earnings. As previously reported, Systemwide Pro Forma Revenue, a non-IFRS measure, of $16,902,029, an increase of more than 20% over the previous quarter’s $14,058,442. As previously reported, IFRS Revenue of $7,517,621. The company also reported a net loss of $7 million.
True Leaf Brands Inc. (CSE: MJ) (OTCQX: TRLFF) announced its operating and financial results for the fiscal 2020 second quarter ended September 30, 2019. True Leaf Pet division reported revenues from global sales totaling $706,752 (CAD), a 70% increase over the first quarter of fiscal 2020 and a 24% increase year over year. The company also reported a loss of $1.8 million.
Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) reached a definitive Cannabis Material Purchase Agreement on November 29, 2019, with a Canadian Licensed Producer. Under the terms of the Agreement, Aleafia Health will sell 2,840 kg of dried cannabis flower at a price per gram of $2.50, generating $7.1 million in revenue. The transaction will include up to three shipments, all of which will be completed before January 31, 2020.
The dried flower was cultivated at Aleafia Health’s Port Perry Outdoor Grow facility, which yielded 10,300 kg in 2019. The yield figure is limited to dried flower only, and excludes stems or other parts of the cannabis plant.
Aurora Cannabis Inc. (NYSE: ACB), the Canadian company defining the future of cannabis worldwide, today announced that one of the Company’s oil products has now been approved for use under Ireland’s new Medical Cannabis Access Programme (MCAP). Aurora’s High CBD Oil Drops received approval from the Irish authorities and have now been added to a regulatory schedule by the Irish Minister of Health enabling importation, prescribing and supply under the scheme and is to date, one of only two products to gain such authorization.
Aphria Inc. (TSX: APHA)(NYSE: APHA) announced that its subsidiary Aphria Diamond secured a credit facility, on November 29 2019, with a major Canadian chartered bank as sole arranger, sole book runner and administrative agent on behalf of a group of lenders for a committed senior secured credit facility of $80 million.