It’s time for your Daily Hit of cannabis financial news for May 11, 2021.
On The Site
Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) reported financial results for the first quarter ended March 31, 2021, as revenue increased 9.1% to $23.4 million. This missed the average analyst estimate for $27 million from Yahoo Finance. Charlotte’s Web said DTC eCommerce net sales increased 14.5% reflecting increased marketing, targeted promotions as well as incremental demand for the company’s new topical and THC-free ingestible products. The net losses increased to $13.9 million over last year’s $11.5 million for the same time period. The net loss per share was $0.10, which was also higher than the average analyst estimate for an net loss per share of ($0.05).
MedMen Enterprises Inc. (OTCQX: MMNFF) reported its consolidated financial results for the third-quarter fiscal 2021 ending March 27, 2021. Net revenue across MedMen’s operations was $32 million, which dropped from last year’s $44.1 million. This also missed the average analyst estimates by Yahoo Finance for revenue of $37.3 million. The earnings per share for the quarter were ($0.04), which beat the estimate for ($0.05). The company said the revenues increased 3.8% from the previous quarter adjusting for removal of MedMen NY Inc. from continuing operations. Net losses were trimmed to $13.7 million from last year’s $24.9 million for the same time period.
Aleafia Health Inc. (OTCQX: ALEAF) reported its financial results for the three months ended March 31, 2021. Revenue fell 55% from last year’s $13.7 million to this year’s $6.2 million. most of the decline was due to an 84% drop in bulk wholesale cannabis sales. Aleafia also reported that its net losses increased from last year’s $6.1 million to this year’s $11.2 million.
Verano Holdings Corp. (OTCQX: VRNOF) amended its credit agreement for its senior secured term loan of $130 million. The Restated Credit Agreement which has a maturity date of May 30, 2023, now provides for additional, non-dilutive funding of $100 million, with an annual interest rate of 9.75% for the incremental amount.
Flora Growth Corp. (NASDAQ: FLGC) priced its initial public offering of 3,333,333 shares of its common stock, at the high end of the proposed price range of $5.00 per share to the public for a total of US$16,666,665 of gross proceeds to the company. The common stock is expected to begin trading on the Nasdaq Capital Market today under the symbol “FLGC.”
True Leaf Brands Inc. (OTC Pink: TRLFF) (FSE: TLAA) has launched both a traditional private placement and an equity crowdfunding offering. The company plans to use the proceeds from both offerings to execute its strategic plan to become the industry’s leading provider of seed-to-shelf solutions for micro-cultivators.
Privately-owned Holistic Industries raised $55 million in the form of a convertible note. The company said that the proceeds from the oversubscribed offering, would be used to drive expansion into newly licensed markets, including Missouri and West Virginia, expansion into additional markets, M&A activity the company is currently pursuing, as well as launches of new brands and product innovations.
In Other News
HEXO Corp. (TSX: HEXO; NYSE: HEXO) is pleased to announce that it has established an at-the-market equity program that allows the Company to issue and sell up to C$150,000,000 of common shares in the capital of the Company from the treasury to the public, from time to time, at the Company’s discretion.
urban-gro, Inc. (Nasdaq: UGRO) a horticulture company that engineers and designs commercial Controlled Environment Agriculture (“CEA”) facilities and integrates complex environmental equipment systems, today reported its revenue of $12.0 million compared to $4.2 million in 2020, an increase of $7.8 million, or 182%.for its first quarter ended March 31, 2021