This is your Daily Hit of cannabis financial news for March 25, 2021.
On The Site
Word came out of Albany late Wednesday afternoon that legislators had reached an agreement on the language of legislation regarding the legalization of adult-use cannabis. There are two competing bills for the law – the Cannabis Regulation and Taxation Act (CRTA) and the Marijuana Regulation and Taxation Act (MRTA). The word is that the bill that was agreed upon included the contentious home grow issue, delivery, social consumption, and the removal of the license auction. However, there is no confirmation on the actual language that was included which could receive a vote next week. It is expected that it will take at least one year before sales can take place.
Cresco Labs Inc. (OTCQX: CRLBF) released its financial results for the year ended December 31, 2020. Revenue for the fourth quarter of 2020 was $162.3 million, an increase of $9.0 million or a 6% increase over the third quarter of 2020. Cresco Labs reported a net loss for the fourth quarter of $23 million versus last year’s net loss of $45 million. The company beat the Yahoo Finance analyst estimate for revenue of $161 million in the quarter.
For the full year, Cresco delivered revenue of $476.3 million, an increase of $347.7 million or a 271% increase over 2019’s revenue of $128 million. The company said that growth was driven by cultivation expansion in Illinois and Pennsylvania as well as strong sequential same-store growth. Cresco trimmed the net loss from $65 million in 2019 to $36 million in 2020.
Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) looks like it has been able to regain some ground after the pandemic caused the company a lot of disruption as retailers were closed for some time. Charlotte’s Web reported revenue increased 17.9% to $26.9 million in the fourth quarter of 2020 versus $22.8 million for the same time period in 2019. The company said DTC (direct-to-consumer) sales increased 21.2% year-over-year, contributing $17.4 million or 64.8% of the fourth-quarter revenue. While it was a positive turn of events, the company missed revenue estimates of $27.5 million according to Yahoo Finance.
Aleafia Health Inc. (OTC: ALEAF) reported net revenue of $15.4 million in the fourth quarter versus $6 million for the same time period in 2019. The net loss though was a whopping $217.3 million versus last year’s net loss of $9.8 million. Aleafia wrote-down $176.0 million of goodwill associated with the acquisition of Emblem Corp., and $1.4 million of goodwill associated with the acquisition of Canabo Medical Corp.
For the full year, Aleafia Health reported net revenue of $44.5 million versus $16.3 million in 2019. Due to the losses in the fourth quarter, the full-year net loss clocked in at $247 million versus 2019’s $39.6 million.
In Other News
Neptune Wellness Solutions Inc.(NASDAQ: NEPT) announced the filing of a preliminary short form base shelf prospectus. The offering will raise up to an aggregate initial offering price of $250 million at any time during the 25-month period that the Prospectus remains effective.