The Daily Hit is a recap of the top cannabis business stories on May 16, 2022.
On The Site
Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported financial results for the first quarter ending March 31, 2022 as net revenue fell 17% to $19.4 million versus $23.4 million for the same time period in 2021. Sales also fell sequentially from the fourth quarter’s revenues of $24.8 million and greatly missed the estimates from Yahoo Finance for sales of $27 million. Charlotte’s Web said the decrease was partly due to a temporary closure of its production and shipping terminal in January after a local wildfire in Boulder County. Read more here.
TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) reported its financial and operating results for the three months ended March 31, 2022. Tilt’s revenue was $42.4 million compared to $46.8 million in the year-ago period. However, revenue fell dramatically from the fourth quarter which was $54 million. Tilt said the decrease was primarily driven by lower sales volume in its inhalation business related to the timing of purchases by certain large customers, as well as price compression for the company’s bulk and house-branded wholesale cannabis products. Read more here.
Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) announced its financial results for the three-month period ended March 31, 2022, with revenues rising 8% to $25.7 million from last year’s $23.8 million. However, Planet 13’s revenue fell sequentially from the fourth quarter’s $29 million. According to Yahoo Finance, three analysts cover the company and the average estimate for revenues was $46 million, so the company missed that by a mile. Read more here.
Arcview Capital today announced the launch of its equity crowdfunding platform which is expected to go live by the end of the second quarter. The platform is currently accepting applications and will focus on cannabis and other adaptogenic plant-based businesses like psychedelic plant medicines. Read more here.
Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF) released its financial results for the three months ended March 31, 2022. Auxly reported net revenues rose 147% to $22.6 million versus $9.2 million during the same period in 2021. Revenues fell sequentially from the fourth quarter’s revenue of $29 million. Auxly admitted it had lower winter yields at Auxly Leamington and hardware and packaging shortages due to supply chain disruptions. The company said believes that those challenges are largely behind it, and is very encouraged by yield and overall product quality improvements that it has seen at Auxly Leamington, which it believes will better equip Auxly to meet the demand for its flower and pre-roll products. Read more here.
Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) reported financial results for the first quarter ended March 31, 2022. Revenue for Columbia Care fell sequentially by 11% to $123 million from $139 million in the fourth quarter. It was a 43% increase over last year’s revenue of $86 million for the same time period. It missed the Yahoo Finance average analyst estimates for revenue of $138 million. Read more here.
In the cannabis market, Flower continues to reign supreme as the dominant category in every market, though according to a recent Headset report, market share is declining in both the US and Canada. Be that as it may, cannabis flower is likely to hold its top spot as the consumer favorite for some time to come as the least processed and most versatile (albeit also the most susceptible to commoditization and price compression) of all categories. Headset’s report looks at changes in market share over time, segments, pricing, demographics, and other metrics of performance in the Flower category. Data was collected from real-time sales reporting by participating cannabis retailers via their point-of-sale systems. Read more here.
In Other News
The Parent Company
TPCO Holding Corp. (NEO: GRAM.U) (OTCQX: GRAMF) announced its financial results for the quarter ended March 31, 2022. Net sales fell 17% to $33.2 million and the net loss and comprehensive loss were $33.5 million. Sales also fell from the fourth quarter’s $39 million. The company said it would cut costs by 20% over the year. Conference call in the morning. Read more here.
Sundial Growers Inc. (NASDAQ: SNDL) reported its financial and operational results for the first quarter ended March 31, 2022. Net revenue for the first quarter of 2022 of $17.6 million, including one day of revenue on the acquisition of Alcanna, an increase of 78% over the first quarter of 2021. Net loss was improved to $38.0 million for the first quarter of 2022 compared to a $134.4 million net loss in the first quarter of 2021, an improvement of 72%. Read more here.
CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the quarter ended March 31, 2022. Revenue of $4.4 million for the first quarter of 2022, compared to $4.8 million for the first quarter of 2021. Read more here.