The Daily Hit is a recap of the top business stories in the cannabis industry for March 24, 2022.
On The Site
Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported revenue in the fourth quarter of 2021 rose 70% over last year to $139 million and increased 5% sequentially from the third quarter’s revenue of $132 million. Columbia Care said that whole revenue accounted for 19% of the fourth-quarter sales. The full-year 2021 revenue rose 156% to $460 million from 2020’s revenue of $179 million. The net losses increased in 2021 to $146 million from 2020’s net loss of $119 million. Read more here.
Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported that fourth-quarter revenue fell 7.8 % to $24.8 million from $26.9 million for the same time period in 2020. This missed the Yahoo Finance average analyst estimate for revenues of $27 million. The company blamed the drop on sales and channel mixes and competitive DTC pricing. The net loss for the quarter was an eye-popping $118 million or ($0.86) per share. This missed the analyst estimates for a loss of ($0.05) per share. Charlotte’s Web said it recognized impairments of $76 million related to goodwill and $22 million related to customer relationships, trade names, and other long-lived assets. The impairments were primarily triggered as a result of the decrease in the company’s market capitalization in the fourth quarter of 2021. This resulted in impairment charges of $98 million which were factored into the net losses. Read more here.
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its financial results for the fourth quarter of 2021 and the full year ended December 31, 2021. Jushi said its total revenue rose 104% to $65.9 million over last year and increased 22% sequentially. The company attributed the sequential growth in revenue to the acquisition of Nature’s Remedy in Massachusetts, strong revenue growth at the company’s BEYOND / HELLO stores in Virginia and Illinois, and increased wholesale activity at the Company’s grower-processor facilities in Pennsylvania and Virginia. The net income was $9.1 million, or $0.05 per basic share with net loss per diluted share of $(0.14). Read more here.
Hempacco applied to list its common stock on the Nasdaq Capital Market, under the symbol “HPCO.” In its filing, the company said it is focused on Disrupting Tobacco by manufacturing and selling nicotine-free and tobacco-free alternatives to traditional cigarettes. The company says it is using a proprietary, patented spraying technology for terpene infusion and patent-pending flavored filter infusion technology to manufacture hemp and herb-based smokable alternatives. Read more here.
Medicinal mushrooms have major potential health benefits and are big business for makers of supplements, beauty products, confections and more. These medicinal fungi are finding their way into many of today’s cannabis product line-ups, such as CBD Tea’s CBD Mushroom Defense and the CBDFx line of CBD and mushroom tinctures that boast a supercharged synergy between CBD and mushrooms. The integration of medicinal mushrooms and cannabis has been seamless overall, without many of regulatory snafus that would plague a product made with “magic mushrooms”, aka fungi with the naturally-occurring hallucinogenic compound psilocybin. But that doesn’t mean such products aren’t finding their way into consumers’ hands at a steadily increasing rate. Read more here.
In Other News
Clever Leaves Holdings Inc. (Nasdaq: CLVR, CLVRW) reported financial and operating results for the fourth quarter and full-year ended December 31, 2021. Revenue increased 27% to $15.4 million compared to $12.1 million. Cannabinoid revenue increased 29% to $3.2 million compared to $2.5 million, and non-cannabinoid revenue increased 26% to $12.1 million compared to $9.6 million. Read more here.
Simplifya announced it launched a suite of cannabis compliance solutions for businesses in Connecticut, expanding the reach of the Company’s footprint to 25 states. The suite of services includes Simplifya Standard Operating Procedures (SOPs), Simplifya Smart Cabinet and Simplifya Self Audit, which have been specifically designed to help cannabis businesses stay up to date and remain compliant under Connecticut’s laws, as well as manage risks in a cost-effective way. Read more here.