It’s time for your Daily Hit of cannabis financial news for Match 30, 2021.
On The Site
Namaste Technologies Inc. (OTCMKTS: NXTTF) reported its financial results for the year ended November 30, 2020. Gross revenue for the fourth quarter ended November 30, 2020, was $8.0 million versus $4.0 million in the same period last year. Namaste trimmed its net losses in the fourth quarter to $6.4 million versus a net loss of $29.7 million for the fourth quarter in 2019. The company attributed the $3.3 million improvements in net revenue for the fourth quarter to the increased revenues from the sale of cannabis products.
Mind Medicine (MindMed) Inc. (OTCQB: MMEDF) announced its annual 2020 financial results for the year ended December 31, 2020. At this time the company had no revenue to report. The net and comprehensive losses were $35.1 million for the year ending December 31, 2020.
Its total assets as of December 31, 2020, were $85.6 million, including $80.1 million in cash. MindMed said its net cash used in operating activities or its total cash burn was $24.2 million for the year ended December 31, 2020. The company’s current cash balance is $161 million or C$203 million. MindMed plans on using the funds to advance its portfolio and build out its technology division.
The cannabis industry has seen some players make big bets on beverages, but so far it hasn’t paid off. The market is definitely growing, just not at the rate many had hoped for. Plus, the slow growth of this form factor is not an indication that it won’t continue to increase and eventually gain even more market share. Cannabis tracking firm Headset recently released a report on the cannabis beverage industry and found that in the US, “The beverage category’s market share has held fairly steady between 0.85% and 1.1% over the last several years. In fact, market share to the category was slowly decreasing through late 2019 and early 2020 before maintaining just below 0.9% during the beginning of the COVID-19 pandemic.”
In Other News
Harvest Health & Recreation Inc. (OTCQX: HRVSF) reported its financial and operating results for the fourth quarter and year ended 2020. Total revenue in the fourth quarter was $69.9 million, an increase of 85% from $37.8 million in the fourth quarter of 2019, and up 13% compared to $61.6 million in the third quarter of 2020. Full-year revenue increased 98% to $231.5 million in 2020 compared to $116.8 million in 2019.
Net loss before non-controlling interest was $7.4 million for the fourth quarter, compared to $85.2 million in the fourth quarter of 2019. Net loss before non-controlling interest for the full year was $59.6 million compared to $168.8 million in 2019.
Harvest is introducing the full year 2021 revenue target of $380 million, including at least $87 million in revenue expected during the first quarter. We remain focused on improving the profitability of our business and we expect our gross margins will continue to trend upwards overall, with some fluctuations from quarter to quarter.