It’s time for your Daily Hit of cannabis financial news for February 25, 2020.
On The Site
GW Pharmaceuticals plc (GWPH) announced financial results for the fourth quarter and full-year ended December 31, 2019, with total net product sales of Epidiolex of $104.5 million for the fourth quarter and $296.4 million for the full year. Total revenues were $109 million and the S&P Capital IQ estimate was for revenue of $80 million and so the company beat on that metric.
In addition to the strong sales, the company also trimmed its net losses to $24.9 million versus the net loss of $71.9 million for the quarter ending December 31, 2018. The company did report a loss of $0.07 per share which missed the S&P Capital IQ estimate for a loss of $0.03 per share.
The stock fell over six percent in post-market trading to roughly $109, which could be due to the miss on the loss per share. CEO Justin Glover did say on the company’s earnings conference call that first-quarter sales should be consistent with the fourth quarter, which could be interpreted as not growing. That could also be the reason for the selling. The company is sitting pretty with cash and cash equivalents at $536.9 million.
Financially challenged cannabis delivery company Eaze said it has raised $35 million in a Series D round and could raise an additional $20 million. The company closed on a $20 million investment led by Founders JT LLC, which joins a $15 million bridge round led by Eaze key stakeholders, Rose Capital, and DCM. Eaze also said it had secured the ability to raise up to an additional $20 million to fund the company’s pivot into plant-touching businesses. verticalization and brand strategy to expand access to safe, legal, and affordable cannabis products.
Eaze Chief Executive Officer Ro Choy said, “Verticalization is Eaze’s second act. Until now, we’ve invested in proving our market fit, building an enormous and loyal customer base, and becoming California’s biggest marketplace for legal cannabis delivery. Now, we’re proving we can make this business work in a more sustainable and profitable way, while continuing to grow Eaze’s existing services.”
Marijuana consumption is still a taboo, but it seems like the millennial generation is working hard to change this fact. They are the pioneers of recreational weed usage and the major reason why nine states decided to legalize marijuana since 2012.
Contrary to baby boomers, Millennials prove to be open to new experiences and hence turn into genuine drivers of social changes. And it’s not only about changing the social climate – Millennials are also contributing to the growth of a brand new industry. The global cannabis market size was $10.6 billion in 2018 and it was projected to reach almost $100 billion by 2026.
While other cannabis companies are restructuring, saddled with mountains of debt and lower than expected revenues, Valens GroWorks (TSXV: VLNS) (OTCQX: VLNCF) delivered a solid fourth quarter and fiscal year earnings report. Valens reported after the market closed on Monday that its revenue increased to $58.1 million for the fiscal year 2019. For the fourth quarter of 2019 revenue increased to $30.6 million, an 86.0% increase over the third quarter and above the high-end of the guidance range announced on December 16, 2019.
In Other News
Acreage Holdings (OTC: ACRGF) announced on Tuesday it has opened The Botanist by Compassionate Care Foundation, the New Jersey municipality’s first retail cannabis store. The dispensary actually opened for business on Saturday in a ceremony that was attended by local dignitaries. As per New Jersey law, it can only sell medical marijuana to qualified patients; recreational cannabis is still outlawed in the state.
iAnthus announced it would be opening one of its new rebranded stores called Be. The opening date for the first Northeast store, located on Staten Island is March 11.