The Daily Hit is a recap of the top cannabis business stories for July 27, 2022.
ON THE SITE
Halo Kills PhytoCann Deal, Gives Back High Tide Stores
Halo Collective Inc. (NEO: HALO) (OTCQX: HCANF) has decided to not buy PhytoCann Holdings SA and cited market conditions as the driving factor for not pursuing the proposed acquisition. In addition to killing the PhytoCann deal, Halo also said it essentially gave back the stores it had planned to buy from High Tide. Read more here.
Cannara’s Rising Profits Show Canadian Demand Remains Strong
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) posted positive third-quarter results – showing the resilience of the Québec mega-producer amid waning profits for many throughout the sector. The company announced its third-quarter financial and operating results for the three and nine-month periods ending May 31, 2022. Read more here.
Turning Point Misses Estimates, Lowers Outlook
Turning Point Brands, Inc. (NYSE: TPB) announced disappointing financial results for the second quarter ending June 30, 2022, as net sales dropped by 16.1% to $102.9 million. This missed the yahoo Finance average analyst estimate for revenue of $105 million, but it was higher than the first quarter’s net income of $100 million. Turning Point reported that combined net sales for Zig-Zag and Stoker’s Products only declined by 0.9% for the quarter. NewGen net sales, which is the vape category, declined by 45.1% and dropped 2.1% sequentially. Read more here.
Horizon Consolidates Cannabis ETFs, Bearish On Outlook
Canadian-based Horizons ETFs Management Inc. is beefing up its cannabis index funds for investors, with consolidation moves set to kick in a week from now. The news comes as marijuana companies continue to post declining profits amid a tightening economic landscape that finds most asset classes and equity indices in the negative. Read more here.
IN OTHER NEWS
Verano Holdings Corp.
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a multi-state cannabis company, today announced as a result of internal compensation and tax reviews, certain accounting errors were uncovered and it will be required to restate each of the previously issued financial statements set forth below, all of which, together with all related disclosures, previously furnished or filed reports, earnings releases, investor presentations or similar communications, should therefore no longer be relied upon. Read more here.
HEXO Corp. (TSX: HEXO; NASDAQ: HEXO), announced today it received an extension of 180 calendar days from the Nasdaq Stock Market LLC to regain compliance with the Nasdaq’s minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market, following the expiration of the initial 180 calendar days period to regain compliance on July 25, 2022. Read more here.
Willow Industries Inc.
Willow Industries Inc., a company in cannabis kill-step and decontamination technology, is pleased to announce the appointment of Scott Daly as Chief Commercial Officer. In this role, Scott will oversee the development and execution of the go to market commercial strategy to accelerate Willow’s exponential growth across new and existing markets. Read more here.
The Flowr Corporation
The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) herein announces the closing of the previously announced sale of the Kelowna Research Station R&D Facility to Hawthorne Canada Limited for an aggregate purchase price of $15.9 million. The Company is using the proceeds from the sale of this non-core asset to reduce the outstanding principal debt under its ATB led credit facility to $1 million. Read more here.