It’s time for your Daily Hit of cannabis financial news for May 25, 2021.
On The Site
TILT Holdings Inc. ( CSE: TILT ) ( OTCQX: TLLTF ) reported its financial and operating results for the three months ended March 31, 2021. Revenue increased 15% to $46.8 million compared to $40.6 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 45% to $11.7 million and inhalation and accessory revenue increased 8% to $35.1 million. Net losses dropped sequentially from $45 million in the fourth quarter to $1.5 million in the first quarter.
HempFusion Wellness Inc. (TSX:CBD.U) (OTC:CBDHF) is buying Sagely Enterprises, Inc., a leader in premium CBD products with mass distribution in more than 14,000 retailers nationwide. The deal is valued at $25 million and consists of $2 million in cash and $23 million in common shares of HempFusion at a price per share of roughly $1.021. In addition, the sellers may be entitled to receive an earnout payment of up to $5 million subject to Sagely hitting certain revenue targets within a year.
Chalice Brands Ltd., formerly Golden Leaf Holdings Ltd. (CSE:CHAL) (OTCQB:GLDFF) reported its financial and operating results for the first quarter of 2021 with total revenue of $5.5 million versus $4.7 million for the same period in 2020. The 18% year-over-year increase was attributed to the overall improvements in the Oregon retail and wholesale businesses. Net losses increased from last year’s $2.4 million to $4.3 million in the first quarter. The company noted that had it included revenue from its Homegrown acquisition, the first quarter 2021 revenues would have been $8.2 million.
GrowGeneration Corp . (NASDAQ: GRWG) is buying The Harvest Company, a northern California -based hydroponic supply center and cultivation design innovator with stores in Redding and Trinity County. The Harvest Company serves growers in Northern California’s Emerald Triangle, which is the largest cannabis-producing region in the country. GrowGen will now own 20 stores in the state of California – its largest footprint.
Investors continue to show their desire to invest in edible brands within the cannabis industry. The latest to have no problems raising money is Hervé. Well-known as the maker of those stunningly beautiful infused macarons, Herve closed on its oversubscribed $3 million Series A round of funding. Hervé said the funds will support its growth and fund new opportunities.
In Other News
Keef Brands, founded in 2010 as one of the original cannabis-infused beverage companies and now ranked by BDS Analytics as the country’s number one cannabis beverage brand, is proud to announce Travis Tharp as the company’s new Chief Executive Officer. Tharp first joined Keef Brands in 2017 as Chief Operating Officer, was named President in 2019, and in 2020 oversaw the company’s largest year over year growth of beverage market share (by dollars sold). The transition of Tharp moving into the CEO role is the result a long-planned succession. Co-Founder and former CEO Erik Knutson, who will remain on the Board of Directors, worked with Tharp and the Board to position the company for this move and expansion. The appointment comes at a pivotal time, as Keef Brands is poised to release cutting-edge new product formulations and introduce their revolutionary wave of social consumption into more recently legalized markets across the country.