The Daily Hit is a recap of the top cannabis business stories for May 9, 2022.
On the Site
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial results for the first quarter ended March 31, 2022, with total revenue increasing by 20% to $313 million versus $260 million in the first quarter of 2021. Curaleaf said that the revenue growth primarily reflected continued organic growth driven by new retail store openings, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities. Revenue fell sequentially by 2% from the fourth quarter’s $320 million and missed the Yahoo Finance average analyst estimate for revenue of $319 million.
Curaleaf also reported a net loss of $20 million, which was higher than last year’s net loss of $15 million in the first quarter of 2021. The company said that the net result was primarily impacted by approximately $12 million of higher income tax expense and $2 million of higher other expenses, net, partially offset by an $8 million increase in operating income. The earnings were for a loss of three cents per share, which beat the estimates for a loss of four cents per share. Read more here.
Last week, the Food & Drug Administration (FDA) sent out warning letters to five cannabidiol (CBD) companies for Unapproved New Drugs/Misbranded/Cannabidiol (CBD) Products. The companies receiving the letters were Kingdom Harvest, Delta 8 Hemp, ATLRx Inc., BioMD Plus and M Six Labs Inc. Read more here.
NY Chair Tremaine Wright
On April, 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. The Summit was especially grateful that the Chair of the New York Cannabis Control Board, Tremain Wright was able to speak to the audience. Thank you for watching the Green Market Report! Be sure to subscribe to our channel and our newsletters. Video available here.
In Other News
Akerna (Nasdaq: KERN) reported its unaudited financial results for the quarter ended March 31, 2022. Total revenue was $7.0 million, up 73% year-over-year. The net loss was $22.0 million, up $15.5 million year-over-year. Loss from operations was $20.6 million, up $17.1 million year-over-year. Transaction volume up 16% year-over-year. Average new business deal size up 40% year-over-year. Retail order spend up 6% year-over-year. Read more here.
XS Financial Inc. (CSE:XSF)(OTCQB:XSHLF), a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, announced today that it has upsized its lease facility with Ayr Wellness (CSE: AYR.A)(OTCQX: AYRWF) up to $37.4 Million including an immediate drawdown of $12 Million, bringing the total usage to over $33.1 million. All amounts are in U.S. dollars. Read more here.