The Daily Hit: May 10, 2021

It’s time for your Daily Hit of cannabis financial news for May 10, 2021.

On The Site

Trulieve

Trulieve Cannabis Corp.  (OTC: TCNNF) is buying  Harvest Health & Recreation Inc.  (OTCQX: HRVSF) in a deal valued at approximately $2.1 billion based on the closing price of the Trulieve Shares on May 7, 2021. The combined businesses will have operations in 11 states, comprised of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets.

Harvest Health

Harvest Health & Recreation Inc.  (OTCQX: HRVSF)  reported its financial and operating results for the first quarter of 2021 with revenue rising 101% to $88.8 million from $44.2 million in the first quarter of 2020. Revenue also rose sequentially by 27% from $69.9 million in the fourth quarter of 2020. This beat the average analyst estimate from Yahoo Finance for revenue of $87 million in the quarter. However, the company missed the estimate for the earnings loss which came in at ($0.06) per share while the estimate was for ($0.01.) per share. The net loss before non-controlling interest was $23.0 million for the first quarter, compared to $7.4 million in the fourth quarter of 2020. The adjusted EBITDA in the first quarter was $26.9 million, compared to $9.1 million in the fourth quarter of 2020.

Curaleaf

Curaleaf Holdings, Inc. (OTCQX: CURLF) reported its financial and operating results for the first quarter ended March 31, 2021. Total revenue increased by 170% to $260 million during the first quarter of 2021, compared to $96 million in the first quarter of 2020. Despite the enormous revenues, Curaleaf still delivered a net loss in the quarter of $17 million, versus a net loss of $15 million in the first quarter of 2020.

The company attributed the loss to an income tax provision of $31 million and ultimately blamed it on Section 280E of the Internal Revenue Code and, to a lesser degree, by an increase in the interest expense related to lease liabilities due to the expanded number of retail sites. The net loss for the quarter also included approximately $6 million in one-time charges which mostly include expenses associated with the equity offering and debt raise. 

Flower One

Flower One Holdings Inc. (OTCQX: FLOOF) announced unaudited preliminary first-quarter revenue guidance of $13.5 million. Flower One said that it expects to announce the date for its filing of the fiscal 2020 year and first quarter 2021 in the coming weeks. The company hasn’t reported results since the third quarter ending in September 2020 when revenues were $11.9 million.

In Other News

Akerna

Akerna (Nasdaq: KERN) reported its unaudited financial results for the quarter ended March 31, 2021. Total revenue was $4.0 million, up 31% year over year. Net loss was $6.3 million compared to a net loss of $4.8 million in the same period last year. “Our first quarter was a strong start to 2021, with increasing demand for our platform driving 62% year over year software growth,” said Jessica Billingsley, CEO of Akerna.  

Wesana

Wesana Health Holdings Inc.  (CSE: WESA), formerly Debut Diamonds Inc.,  shares began trading on the Canadian Securities Exchange (“CSE”) today, Monday, May 10, 2021, under the ticker symbol “WESA.”

“Following the completion of our go public transaction, we’re thrilled to embark on this journey as a public company listing on the CSE. As a CSE listed company, we will be able to increase engagement with our shareholders and the investment community as we continue to execute on our mission to develop alternative treatment solutions for traumatic brain injury,” said Daniel Carcillo, CEO of Wesana Health.

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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