The Daily Hit: May 11, 2020

It’s time for your Daily Hit of cannabis financial news for May 11, 2020.

On The Site

GW Pharmaceuticals plc (Nasdaq: GWPH) delivered total revenue of $120.6 million for the first quarter ending March 31, 2020, versus last year’s $39.2 million for the same time period. The net loss for the quarter was $8 million versus last year’s net loss of $50.1 million for the same time period.

“In the first quarter of 2020, we have seen continued strength of the Epidiolex brand in both the U.S. and Europe and remain confident about prospects for growth in the remainder of the year. Having been granted priority review by the FDA for our proposed label expansion to include TSC, our US commercial team is actively preparing for the launch of this indication in August,” stated Justin Gover, GW’s CEO. “In this current environment caused by COVID-19, we have been able to support the epilepsy community remotely and maintain production of Epidiolex, while taking necessary steps to maintain the wellbeing of our employees.”

Tilray

Tilray, Inc.  (Nasdaq: TLRY) delivered it financial results for the first quarter ending March 31, 2020, as revenue increased 126.2% to $52.1 million. The revenue beat analyst estimates by $2.45 million. The losses of $1.73 per share missed  estimates by $1.21

The company said that the growth was driven by cannabis sales, which experienced meaningful increases across all channels with the exception of bulk, and the inclusion of the Manitoba Harvest acquisition for a full quarter in 2020 compared to a partial quarter in the prior year.

Still, the net loss was a staggering $184.1 million, versus last year’s net loss of $29.4 million. While it looked bad, Tilray pointed out that it wasn’t as bad as the fourth quarter’s net loss of $219.1 million, or $2.14 per share, in the fourth quarter of 2019 was largely due to improvements in gross margin in the first quarter of 2020 and the significant impairments recorded in the fourth quarter of 2019.

Zynerba

Zynerba Pharmaceuticals, Inc. (ZYNE) reported its earnings for the first quarter ending March 31, 2020, with no revenue and a net loss of $12.3 million and a net loss per share of $(0.53). Despite COVID-19 disruptions, the company said that it expects timelines for delivery of top-line results from all of its ongoing trials will not be impacted.

“The past few months have been historic due to the outbreak of COVID-19, and we applaud everyone on the front line of this global pandemic, including healthcare workers, first responders, humanitarians, and our industry colleagues who are dedicated to the rapid development of treatments and vaccines,” said Armando Anido, Chairman and Chief Executive Officer of Zynerba. “In response to the pandemic, Zynerba implemented important initiatives that we believe protect the safety of patients, clinical investigators and their staff, and our Zynerba employees and should allow us to conclude all three of our ongoing clinical trials and report top-line results within our stated timelines.”

In Other News

Aleafia

Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF)   entered into an agreement with Eight Capital as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters to which the Underwriters have agreed to purchase 20,000,000 units of the Company on a “bought deal” basis pursuant to a short form prospectus offering, subject to all required regulatory approvals, at a price per Unit of $0.65 for gross proceeds of $13,000,000.

Schwazze

Schwazze, formerly operating as Medicine Man Technologies Inc. (OTCQX: SHWZ) today provided a company update and announced financial results for its first quarter ended March 31, 2020. Revenues were $3,203,134 during the three months ended March 31, 2020, representing an increase of 59.9% as compared to $2,003,476 during the three months ended March 31, 2019. Product sales and consulting and licensing fees increased 63.8% and 46.8%, respectively. The increase in product sales can largely be attributed to consumer stockpiling due to the COVID-19 pandemic.

Net loss was $1,379,310 for the three months ended March 31, 2020, or a loss of approximately $0.03 per share on a basic weighted average, as compared to net loss of $2,911,818, or a loss of approximately $0.10 per share on a basic weighted average, for the three months ended March 31, 2019.

Aurora Cannabis

Aurora Cannabis Inc. stock carried out a reverse stock split on Monday after shares plunged so much that the New York Stock Exchange threatened to drop the stock from its listings. Aurora said that it would grant shareholders one share for every 12 currently outstanding, reducing the number of shares from more than 1.3 billion to roughly 110 million, but also issue even more stock, diluting shares more than 30%, according to an analyst estimate.

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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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