It’s time for your Daily Hit on May 8, 2018
On The Site
GW Pharmaceuticals (NASDAQ: GWPH) reported mixed second-quarter results on Tuesday after the market close, as revenue came in ahead of consensus but earnings expectations missed the mark by a wide margin. U.K.-based GW Pharmaceuticals said it lost $3.12 a share on $3.35 million in sales, though the company mentioned the positive outcome of the Epidioled FDA Advisory Committee meeting during the quarter as one of the highlights. GW’s CEO Justin Gover said that the company’s clinical data demonstrate a bright future for the company.
Aurora Cannabis reported its earnings for the third quarter. Revenue for the quarter was $16.1 million, representing a 37.6% increase compared to the previous quarter. Sales from cannabis rose by 11% to $10.8 million, with the majority of the coming from the Canadian market ($6.3 million). As of March 31, 2018, the company has approximately $338.5 million in working capital, compared to $170.1 million on June 30, 2017. Despite the increase in revenue, losses for the company were quite high. The company reported a net loss of $20.8 million.
Insys Therapeutics Inc.
Beleaguered biotech company Insys Therapeutics Inc. (INSY) reported a loss of $20.4 million in the first quarter for a loss of $0.28 cents per share. Adjusted those losses ended up being $0.19 cents per share, meeting analyst expectations.
The pharmaceutical company is known for its kickback scheme on painkillers still managed to post revenue of $23.9 million, which missed the estimates for revenues of $24.7 million. Gross revenue was $38.5 million, a decrease of 26% versus last year. The drop was attributed to the decline in sales of Subsys.
Zynerba Pharmaceuticals Inc.
Zynerba Pharmaceuticals (ZYNE) also reported its first-quarter earnings on Tuesday with a loss of $12.3 for a loss of $0.91 cents per share versus last year’s loss of $7 million for the same time period or $0.60 cents per share. Analysts have estimated the company would report a loss of $0.64 cents per share.
Research and development expenses for the quarter were $8.9 million versus last year’s $5.4 million. The company has cash and cash equivalents of $52.1 million, which Zynerba says is enough to fund operations through 2019.
Toronto-based cannabis data and analytics company Strainprint closed a $3 Million (Cdn.$3.8 Million) Series A private placement deal. The round was led by strategic industry investor, Cesare Fazari, Chairman of Molecular Science Corp and seed investor of leading cannabis companies, Ample Organics, and Hydropothecary.
The round also includes a significant follow-on investment from NY-based, Core Strain Ltd., as well as participation from a number of Toronto-based capital funds. The company will use the proceeds for talent acquisition and to rapidly expand sales and marketing of its web platform across North America and into key international markets like Australia and Germany.
In Other News
Emblem Corp. announced the appointment of e.vestor Communications Inc. as the company’s capital markets and investor relations advisor through EVC’s principal, Cory Pala. The appointment of EVC remains subject to the approval of the TSX Venture Exchange. According to a company statement, EVC’s mandate will focus on providing capital markets guidance and support for Emblem through coordinated efforts to navigate the capital markets and support the Corporation’s continued listing on the Exchange. EVC will provide the Corporation with additional capital markets access, investor relations advisory services and broaden awareness of Emblem generally among the investment community.
Bahamas Development Corporation
Bahamas Development Corporation (BDCI) subsidiary company Global Consortium, Inc. DBA Cannabis Consortium reached an agreement to purchase an operating cannabis distillate and brand manufactured and marketed in California. According to a company statement, the cannabis distillate has been servicing the cannabis market for the past 2 years and has quickly become a household name. The acquisition allows Cannabis’s Partners to begin servicing the cannabis distillate market immediately and manufacture a steady supply of premium oil to infuse its’ edibles with.
Green Spirit Industries Inc.
Green Spirit Industries Inc. (GSRX) announced that it has completed construction on another of its five previously announced medicinal cannabis dispensary locations in Puerto Rico. Located in the Hato Rey district of San Juan, this dispensary will commence operations upon receipt of the requisite establishment license from the DHPR. The new location is in a heavily trafficked area that is in close proximity to a large concentration of medical facilities, most notably Clinica las Americas Medical Center and El Maestro Hospital.