The Daily Hit is a recap of the top cannabis business stories for March 3, 2022.
On The Site
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial and operating results for the fourth quarter and year ended December 31, 2021. Total revenue was $320 million for the fourth quarter of 2021, an increase of only 1% from $317 million in the third quarter of 2021 and 39% from $230 million in the fourth quarter of 2020. Curaleaf said that the revenue growth was due to new retail store openings, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities. The net loss for the quarter was $28 million versus the third quarter’s net loss of $55 million and last year’s $37 million in the fourth quarter of 2020. Curaleaf said that the year-over-year improvement in net loss was primarily driven by an approximately $20 million increase in operating income and $2 million of lower income tax expense, partially offset by $15 million of higher other expenses, net. The earnings per share were ($0.04), which missed the Yahoo Finance analyst estimate for earnings of ($0.03). Read more here.
A New Jersey cannabis license applicant is suing the state and claiming that some license winners were using certain women as props to get special female-owned business license. Curio Holdings LLC, a subsidiary of privately-owned Curio Wellness based out of Maryland, filed a lawsuit in the Superior Court of NJ, Appellate Division (#A-000947-21), against New Jersey Cannabis Regulatory Commission (NJCRC) for a stay of Alternative Treatment Center license awards in the Central Region, alleging application fraud from several of the awardees of the coveted licenses. Read more here.
Tilray Brands, Inc. (Nasdaq: TLRY) is striking up a partnership with Hexo Corp. (Nasdaq: HEXO) by buying $211 million of its debt. The move will bring together Canada’s top two cannabis market share leaders, strengthening their respective positions and setting the stage for increased production efficiencies amid competitive market dynamics. Tilray’s stock was slipping slightly in early trading on the news. Read more here.
High Tide Inc. (Nasdaq: HITI) is buying four operating retail cannabis stores in Ontario under the name Crossroads Cannabis, for C$2.5 million in an all-stock deal. In the latest quarter, Crossroads generated annualized revenue of C$7.6 Million and annualized Adjusted EBITDA of C$0.7 Million. The purchase price represents 3.5x annualized Adjusted EBITDA for the three months ended December 31, 2021. Read more here.
In Other News
Greenwave Technology Solutions, Inc. (OTC: MSRTD) is pleased to announce that it will begin trading under the ticker “GWAV” on March 28, 2022. Greenwave is currently trading with a “D” added to its ticker symbol for 20 business days following the effectiveness of a share consolidation on February 28, 2022. The company expects to formally submit its application to uplist to a national exchange in the coming weeks, with its subsidiary, Empire Services, Inc., generating approximately $27.5 million in revenue in the fiscal year 2021.
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF)announced the appointment of Kara DioGuardi to its Board of Directors. A Grammy nominated songwriter, producer, record executive, music publisher, Broadway actress and former American Idol judge, Ms. DioGuardi’s credits include 320 songs released by major labels, 11 of which have earned Grammy nominations, 23 BMI Awards and more than 50 charting singles, cumulatively surpassing one billion streams.