It’s time for your Daily Hit of cannabis financial news for May 5, 2020.
On The Site
Halo Labs Inc. (OTCQX: AGEEF) delivered an operational update in the context of the COVID-19 pandemic as the company continues to grow dispensary sales revenues. These are unaudited preliminary figures.
“We continue to see strong operational performance in Oregon, as reflected by our results. Additionally, the sales velocity of Halo’s branded products indicates that California may be poised to really take off in the coming months. We are preparing for this growth by re-opening Cathedral City operations, staffing up in Ukiah, and growing our California sales force,” comments Andreas Met, Chief Operating Officer and Director of Halo Labs.
While numerous small businesses across the country struggle during an unforeseen lockdown, MassRoots (OTC:MSRT) the poorly run cannabis tech company managed to snag $50,000 in the Payroll Protection Program. This despite one of the company’s main shareholders being sued for stock fraud by the SEC.
“I’m pleased to report MassRoots has raised significant capital to fund our operations and, later this month, launch our rewards program – MassRoots Rewards – aimed at driving cannabis demand from our community to client dispensaries,” stated Isaac Dietrich, MassRoots’ Chief Executive Officer. “We’ve slashed our monthly expenses to less than $75,000 per month, negotiated far better rates and terms with our vendors, and built a rewards model we believe can gain widespread adoption while generating positive cash-flows.”
The PPP loan matures in May 2022 and bears an interest rate of 1.0% per annum. Payments of principal and interest of any unforgiven balance commence in December 2020.
Gift-giving can be a stressful exercise, particularly when you want your gift to make a statement and even more so when that statement is along the lines of “Thank you for giving me life, keeping me alive, and making my life better.” It’s a tall order, but one that is possible to fill, especially if your search includes cannabis-related products.
Cannabis data intelligence company Headset rounded up some figures on buying behavior related to Mother’s Day, to the benefit CBD companies looking for a sales figure boost and shoppers eager to commemorate the mothers in their lives with the perfect gift. According to Headset data, there were noticeable spikes in specific categories, including topicals, tincture, and sublingual products. Sales in both the “Bath Salts, Soaks, and Scrubs” and “Transdermal Products” categories rose 32%, while lotions, creams, gels, oils, and lubes saw smaller but still significant increases.
In Other News
Ayr Strategies Inc. (OTCQX: AYRSF) is providing an update on the evolving regulatory response to COVID-19. Unless otherwise noted, all results are presented in U.S. dollars.
“As the regulatory response to COVID-19 continues to evolve, we are pleased to have positive developments to share regarding our business in Nevada,” said Ayr CEO Jon Sandelman. “The introduction of curbside pick-up on May 1st has enabled daily revenue run rates that allow us to reach our pre-COVID adjusted EBITDA levels. This is a huge milestone, and adds to the already strong cash position on our balance sheet.
“In the first four days of curbside pick-up, our Nevada dispensaries fulfilled over 5,700 curbside orders. Since curbside commenced on Friday, May 1st, the pace of weekly revenue growth has increased to 45% from the 40% we experienced in April. Our flexible technology has allowed for seamless deployment, with average daily sales increasing to more than $200k with 2,000 daily transactions between delivery and pick-up.
Ethos Cannabis, with operations and investment interests in Pennsylvania, Massachusetts, Florida, and Arizona, has, through certain affiliated companies, signed definitive agreements to acquire the rights to the Pennsylvania and Maryland medical cannabis dispensaries of 4Front Ventures Corp. (“4Front”); which are currently operated under the Mission brand. Ethos is focused on developing a leading cannabis company with a strong presence in the Mid-Atlantic, East Coast, and Midwest markets of the U.S. The acquisitions of 4Front’s dispensaries in Pennsylvania and Maryland accelerate this strategic plan for Ethos.
“The acquisitions of the Mission dispensaries in Pennsylvania and Maryland represents a highly strategic step forward in the growth of Ethos in both existing and new markets. Developing a mainstream oriented, vertically integrated platform with a core focus on retail and the expansion of the health and wellness market through relationships with academic medical institutions like Jefferson are at the core of our strategic objectives at Ethos. These acquisitions follow our pursuit of growth in key target markets for our company, including a vertically integrated application submitted in the Southern Region of New Jersey and submissions for dispensary and craft cultivations licenses in which Ethos has partnered closely with social equity applicants,” said Teddy Scott, Chief Executive Officer of Ethos and the founder and former Chief Executive Officer of PharmaCann.