It’s time for your Daily Hit of cannabis financial news for June 3, 2019.
Harvest Health & Recreation
Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) announced the release of their financial results for the first quarter of 2019. Year-over-year, revenue rose from $8.3 million to $19.2 million. Net loss for the period was $20 million, which the company attributes to planned investments in infrastructure and personnel. Adjusted EBITDA was $4.7 million. “By adhering to our four core initiatives: building a world class team, aggressively expanding our retail and wholesale footprint across the U.S., building, acquiring and expanding brands and distributing them across our footprint, and continuing on a path of profitable growth, we believe that we can fulfill our objective of becoming the most valuable cannabis company in the world,” commented Harvest Health CEO Steve White.
TILT Holdings Inc.
TILT Holdings Inc. (CSE: TILT) (OTCQB: SVVTF) released its financial results for the first quarter of 2019. Reported revenue for the quarter was $34.4 million, and pro forma revenue was $39.6 million. Adjusted EBITDA was $8.0 million, and the net loss was $77.89 million. “We are pleased to report our first quarter as a consolidated company, reflecting the strength of the business combination that has established TILT as one of the largest revenue producing companies in the cannabis industry,” said Mark Scatter Day, TILT’s interim CEO. “We have only begun to realize the synergies of our business combination, which we expect to drive incremental revenue growth and improved margins as we execute our business development and integration strategies.”
Vireo Health International
Vireo Health International, Inc. (CSE: VREO) announced the released of their financial results for the first quarter of 2019. Year-over-year revenue rose by 57% from $3.7 million to $5.8 million. Much of the revenue increase was driven by retail sales wholesale revenue generation in the states of Maryland and Pennsylvania. Gross profit before fair value adjustments was $2.1 million. The net loss was $3.4 million, and adjusted EBITDA was $3.8 million. “We continued to experience strong revenue growth during the first quarter, with increasing patient counts in Minnesota and New York and contributions from wholesale revenue streams in Maryland and Pennsylvania during the quarter,” said Vireo Founder & CEO, Kyle Kingsley.
Organigram Holdings Inc. (NASDAQ: OGI) (TSXV: OGI) announced that it had closed a previously announced credit facility with Bank of Montreal as lead agent. The facility consists of a $115 million term loan and a $25 million revolving credit facility, which matures in May 2022. The facility includes an option to increase it in increments of $35 million, up to $175 million. The proceeds of the facility will go towards the funding of Phase 4 and 5 expansions of its Moncton campus and refinance its existing long-term debt with Farm Credit Canada. “The closing of this credit facility reflects BMO’s and the syndicate lenders’ vote of confidence in our management team, ability to deliver financial results, and investment in our world-class Moncton campus,” said Organigram CEO Greg Engel. “Our current expansion plans are fully funded as we continue to remain on track for completion of Phases 4 and 5 of our campus.”