It’s time for your Daily Hit of cannabis financial news for July 13, 2021.
On The Site
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) released its results for the third quarter ending May 31, 2021, with revenue growing 31% over last year to $29.1 million. This was an increase of 51% from the second quarter. The net loss fell 96% to just $4 million from last year’s $89 million. The stock was trading higher by 6% in early trading and was lately selling at $2.83. Organigram attributed the increase in revenue to higher adult-use recreational net revenue and higher wholesale revenue (from other licensed producers) in the quarter. Last year’s third quarter adult-use recreational net revenue was reduced by a provision for product returns and pricing adjustments of $3.0 million (net of excise) of which the majority was largely due to slow-moving oil and certain flower products.
Wesana Health Holdings Inc. (CSE: WESA) (OTC: DBDIF) is buying Psychedelitech Inc., also known as PsyTech Inc., for a price of approximately C$21 million an all-stock deal. PsyTech uses data-driven tools that allow physicians insight into patient well-being and clinical best practices. PsyTech is mainstreaming the adoption of psychedelic-assisted therapies through the promotion and delivery of safe and effective therapy, combating stigma, and accelerating innovation.
High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) is buying a dispensary chain with six stores owned by 102105699 Saskatchewan Ltd. for C$2,900,000. High Tide will acquire a portfolio of six retail cannabis locations in Regina, Saskatchewan, out of which one is operational and five are in various stages of construction and development and are all expected to be operational by the end of 2021.
Sacha Baron Cohen, the creator of the character “Borat” has sued privately-owned Massachusetts cannabis company Solar Therapeutics Inc. and the company’s President Edward Dow III for $9 million. Cohen is angry that his likeness as the character Borat was used without his permission on a billboard that was placed on a busy highway. The lawsuit claims that by using Cohen’s image it looks as if he is endorsing cannabis products.
In Other News
Senate Majority Leader Chuck Schumer (D-N.Y.) will introduce a draft of legislation tomorrow that would legalize marijuana on the federal level, according to Marijuana Moment. The bill, the Cannabis Administration and Opportunity Act, will be unveiled Wednesday at a press conference. While details of the proposed legislation are not yet available, the purpose of tomorrow’s release is to spur discussion for a formal introduction of the bill later on.
Ad Age introduced the Hottest Brands of 2021, 20 of the buzziest brands in business. The list includes newcomers in niche categories, like health care uniform maker Figs and hair care brand Pattern as well as Dolly Parton, a celebrity who is so beloved she bridges America’s divisions—and sells out of ice cream in the process. Also making the list this year is Cookies.
“A ton of pot retailers are hitting the market, but few are having as much fun as Cookies, a chain of cannabis stores founded by Billboard-topping rapper Berner. The brand, founded in 2012, is named because its first strain tasted like Thin Mint Girl Scout cookies. The fun-loving company sells 150 cannabis varieties under names including Berry Pie and Honey Bun, CBD items and medicinal mushroom caps. As cannabis gets legalized in more states, the brand is gaining notoriety with high-profile partnerships with Snoop Dogg, Rick Ross and Gary Payton. Cookies has expanded its footprint to 33 stores in seven states and three countries with 20 more planned to open by the end of 2021. The brand has also launched Cookies U, a partnership with the WebberWild Foundation, to bring business education to communities impacted by the war on drugs.”