It’s time for your Daily Hit of cannabis financial news for March 30, 2020.
On The Site
Good luck making sense of Cronos Group Inc. (CRON.TO) (CRON.TO) 2019 fourth quarter and full-year business results. The company said it will restate its unaudited interim financial statements for the first, second and third quarters of 2019. The icing on the earnings cake was that it will also reduce revenue for the three months ending March 31, 2019, by C$2.5 million and the three months ended September 30, 2019, by C$5.1 million.
HEXO Corp. (NYSE: HEXO) reported a staggering net loss of C$289 million for fiscal 2020 second-quarter ending January 31, 2020. The net revenue for Hexo increased by 17% to $17 million from $14.5 million in the first quarter. The earnings are reported in Canadian dollars.
The loss from operations for the quarter was $289.4 million, compared with a loss of $60.6M in the prior period. The company said that excluding non-cash write-downs and impairment charges in the quarter, the adjusted net loss was ($23.2M) compared with ($34.0M) in Q1’20. This was basically one of those kitchen sink quarters. The company just tossed everything but the kitchen sink into the loss column and just ripped the bandaid off.
Medicinal mushroom company Champignon Brands Inc. (CSE: SHRM) has entered into a definitive agreement to acquire Tassili Life Sciences Corp. in an all-stock deal. Tassili will receive 16 million shares, which is roughly C$7.3 million.
The acquisition will expand Champignon’s preclinical trial pipeline, as well as its aggregation of broad intellectual property related to the development of novel psychedelics therapeutics and their delivery systems, targeting multiple pathological psychological diseases.
Tassili working to develop effective psilocybin-based therapeutics for the treatment of mild traumatic brain injuries (mTBI) and/or post-traumatic stress disorder (PTSD). The company is doing this in partnership with a multidisciplinary team of scientists and physicians at the University of Miami.
According to Vividata’s National Cannabis Consumer Study, 70% of consumers are not sure they know the difference between THC and CBD. Moreover, quality remains the top criterion in selecting a cannabis product for purchase. How are companies setting the standards for quality and how are we researching consumers to understand their experiences with cannabis products accurately and ethically? This post explores the manufacturing and research standards to consider when conducting research studies with cannabis.
In Other News
TerrAscend announced it will open its award-winning Apothecarium branded dispensaries in 2 PA locations – Lancaster and Plymouth Meeting – in order to serve Pennsylvania medical marijuana patients. The Plymouth Meeting location will even have PA’s first drive-through pick up to allow patients to access their medicine while maintaining social distancing. TerrAscend currently supplies its products to 65 of the 76 dispensaries in the state. To service increased demand for its wholesale business, TerrAscend has recently tripled its cultivation footprint and has hired 30 new positions at its 140,000 square foot facility. The Company continues to actively recruit employees for cultivation and manufacturing, as well as the new Apothecarium retail outlets.
Elixinol has launched a worldwide rebrand and an innovative new line of wellness products designed to build upon its existing consumer trust and knowledge about CBD. “We know that this is an unprecedented time. The novel coronavirus (COVID-19) has been declared a global pandemic and it is impacting many people, and while this rebrand has been in the works for some time, we believe our products are more important than ever now as we continue to serve consumers around the globe and focus on people’s health and wellness,” said Stratos Karousos, CEO of Elixinol Global.
Grenco Science (G Pen), the leader in advanced technology cannabis vaporization, announced a brand partnership with B Real, the critically acclaimed artist, Cypress Hill frontman and cannabis entrepreneur behind Dr. Greenthumb’s Dispensaries. The historic partnership represents a revolution in cannabis retail and product development as the two pioneers in music and cannabis collaborate on the global line of G Pen advanced technology vaporizers, introducing iconic co-branded product offerings and fully integrating the G Pen line into Dr. Greenthumb’s Dispensaries with custom build-outs in California. I would love to talk to you further about G Pen and the exciting partnership with B Real!