It’s time for your Daily Hit of cannabis financial news for May 18, 2020.
On The Site
Curaleaf Holdings, Inc. (OTCQX: CURLF) reported increased revenue for the first quarter ended March 31, 2020. Total revenue for Curaleaf in the first quarter of 2020 increased by 174% to $96.5 million versus $35.3 million in the first quarter of 2019. Total revenue for the first quarter of 2020 increased 28% sequentially.
The net loss for the first quarter was $15.5 million, compared to a net loss of $10.8 million in the first quarter of 2019. The net losses declined from the fourth quarter which was $26 million.
Retail revenue increased by 197% to $56.6 million during the quarter, compared to $19.0 million in the first quarter of 2019. Growth in retail revenue was primarily due to organic growth and new store openings in Florida, Massachusetts, and New York, along with the acquisitions of three dispensaries in Arizona, two dispensaries in Nevada, and from Maryland due to the addition of the HMS/MI businesses and Elevate Takoma.
Wholesale revenue increased by 134% to $20.4 million during the quarter, compared to $8.7 million in the first quarter of 2019. Growth in wholesale revenue was due primarily to the addition of Select and as a result of the increased number of adult-use dispensaries in Massachusetts.
Acreage Holdings Inc. (OTCQX:ACRGF) was once leading the pack of cannabis companies planting its flags in as many states as possible. That strategy has proven to be expensive and hasn’t paid off as quickly as many hoped. Now Acreage, like the others, is pulling back and taking a more targeted approach as it divests assets and takes a big charge.
Acreage said it expects to record a pre-tax, non-cash charge of $80 to $100 million in the quarter ending March 31, 2020. Its first steps to scaling back properties include selling Acreage North Dakota, where it operated one medical marijuana dispensary and selling undeveloped real estate on the island of Nantucket in Massachusetts. In 2019, Acreage reported a net loss of $195 million, so it seems 2020 may be off to a rough start as well.
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In Other News
Last Friday, Hightimes Holding Corp. extended its REG A offering once again to June 30,2020. The company also postponed its 11 for 1 stock split and terminated by mutual agreement with Humboldt Heritage, Inc.. a California corporation, its March 27, 2020 letter of intent to acquire the Humboldt Sun Growers Guild and Grateful Eight LLC, subsidiaries of Humboldt.
HEXO Corp. (NYSE: HEXO) announced that it will be filing a preliminary prospectus supplement to its amended and restated short form base shelf prospectus dated December 14, 2018 relating to a proposed overnight marketed public offering of units of the Company.