This is the Daily Hit – a recap of the top business stories in the cannabis industry for February 23, 2022.
WM Technology, Inc. (Nasdaq: MAPS) announced its financial results for the fourth quarter ending December 31, 2021. Total revenue increased to $54.2 million, up 22% from the fourth quarter of 2020 or 39% in the U.S. (when adjusting the prior fourth quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from the Weedmaps marketplace). This beat the Yahoo Finance average estimate for sales of $51 million and was higher than the third quarter’s sales of $50 million. The net income was $78.4 million versus $10.1 million from the prior-year period. However, the total operating expenses were $59 million so the quarter was still operating at a loss. The company benefited from a change in the fair value of a warrant liability to the tune of $82 million. Read more here.
Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2021. IIP generated total revenues of approximately $58.9 million for the three months ended December 31, 2021, versus approximately $37.1 million for the same period in 2020, an increase of 59%. This beat the Yahoo Finance average analyst estimate of $57 million. Recorded net income attributable to common stockholders of approximately $28.3 million for the quarter, or $1.14 per diluted share, and AFFO of approximately $48.6 million, or $1.85 per diluted share (including the dilutive impact of the assumed full exchange of the Exchangeable Senior Notes). The earnings estimate was for $1.24.
IIP generated total revenues of approximately $204.6 million for the year ended December 31, 2021, compared to approximately $116.9 million for 2020, an increase of 75%. The increase in both periods was driven primarily by the acquisition and leasing of new properties, additional improvement allowances and construction funding at existing properties resulting in adjustments to base rent, and contractual rental escalations at certain properties. The company recorded $4.55 of net income attributable to common stockholders per diluted share and $6.66 of AFFO per diluted share (Note: AFFO per diluted share for 2021 includes the dilutive impact of the assumed full exchange of IIP’s exchangeable senior notes (the Exchangeable Senior Notes) for shares of common stock). Read more here.
The latest twist to the ongoing battle between Ascend Wellness (OTC: AAWH) and MedMen Enterprises Inc. (OTC: MMNFF) is that MedMen is now going to take back some of its recent influence-peddling accusations. The conflict is over MedMen’s agreement to sell its New York assets to Ascend, which MedMen is now trying to terminate. Back in January, MedMen alleged that Ascend’s CEO Abner Kurtin used political influence with New York Governor Kathy Hochul and was shortly thereafter able to obtain an email saying the license transfer from MedMen to Ascend was approved. Read more here.
The U.S. economy gained 467,000 jobs in January 2022 according to the US Bureau of Labor Statistics, which is down by 2.9 million since February 2020. In brighter news for cannabis, Leafly’s (NASDAQ: LFLY) sixth annual Cannabis Jobs Report (developed in partnership with Whitney Economics) reveals that the legal cannabis industry added 107,059 new jobs in 2021 and is poised to hold on to its distinction in 2022 as the most prolific job creator in America. According to the report, as of January 2022 there are now 428,059 full-time equivalent jobs supported by the legal cannabis industry in the United States. This figure does not include employment in hemp, unregulated products made with hemp cannabinoids like delta-8 THC or “induced jobs”, aka jobs created by the wages paid to cannabis workers. Read more here.
HYTN Innovations Inc. (CSE: HYTN) has had a big week for announcements. The company began trading yesterday on the Canadian Securities Exchange under the symbol “HYTN” following its reverse takeover transaction with HYTN Beverage Corp. and amalgamation between its wholly-owned subsidiary MMO Merger Holdings Inc. and 1306562 B.C. Ltd. Read more here.
Americans For Safe Access released its 2021 State of the State report and the results were pretty disappointing. Only two states received a rating in the B category, with no states getting an A. The two states scoring B’s were Illinois and Maine. Early medical marijuana states like California and Colorado only managed to get C+ grades. The group noted that its grade for each state’s medical cannabis program is based on how well it meets the needs of patients in six categories, plus a seventh category to deduct points based on issues that can harm patients. Read more here.
In Other News
Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) provided a corporate update and reported financial results for the fourth quarter and full year ended December 31, 2021. In December announced that Pfizer Inc. and Arena entered into a definitive agreement under which Pfizer has agreed to acquire Arena. Net loss for the fourth quarter was $155.6 million compared to a net loss of $122.2 million for the same period in 2020. Basic and diluted net loss per share for the fourth quarter was $2.54 compared to basic and diluted net loss per share of $2.10 for the same period in 2020. Read more here.