It’s time for your Daily Hit of cannabis financial news for November 11, 2019.
On The Site
November 11 is Veterans Day. Bond markets are closed for trading (stock markets are open) and it is a National holiday to honor military veterans.
Some cannabis companies are reaching out to veterans with various offers. According to recent studies, there are nearly 18 million U.S. military veterans that experience some form of mental illness, whether that be depression, anxiety, insomnia or PTSD, or physical issue. The VA is currently exploring how CBD affects symptoms of anxiety and PTSD in veterans.
Hydroponic and organic garden center chain GrowGeneration Corp. (OTCQX: GRWG) reported that its net revenue increased 159% to $21.8 million for the third quarter ending September 30, 2019, versus last year’s $8.4 million for the same time period. GrowGeneration also delivered a net income of $1,049,699 for Q3 2019 compared to a net loss of $(784,573) for Q3 2018, which was an increase of $1.8 million.
The company attributed the increase in revenues to the addition of 10 new stores opened or acquired after October 1, 2018, which delivered sales of $3.9 million in Q3 2019. Sales also increased as a result of the acquisition of a new store in mid-July 2018 that had sales of $2.3 million in the quarter and the new e-commerce site acquired in mid-September 2018 which had revenues of $1.4 million in the quarter.
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) stock fell over 6% to $3.32 after the company reported a decrease in sales. Neptune reported total revenues for the second quarter ending September 30, 2019, amounted to $6.5 million, representing an increase of 49% over the first quarter but a decrease of 8% versus last year’s $7 million for the same time period. The decrease in revenues was attributed to the timing of orders in the nutrition business.
Medicine Man Technologies, Inc. (OTCQX: MDCL) delivered total revenue in the third quarter of $5,338,868, an increase of approximately 14% compared to revenues of $4,672,519 in the quarter ended September 30, 2018. Strong product sales and litigation revenue in the most recent quarter offset a one-time licensing sale in the same quarter of 2018. Unfortunately, Medicine Man reported net losses of $1,827,978 or five cents per share, versus last year’s net income of $4,950,601, or $0.18 per share.
Cannabis Europa swept into New York City with some dazzle as the conference was held at a swanky members-only club that prefers not to be mentioned. Stephen Murphy, Co-Founder of Cannabis Europa said that the reason for choosing such a high location was to showcase the legitimacy of the industry.
In Other News
Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) reported that Aleafia Farms Inc., its wholly-owned subsidiary, produced an inaugural Port Perry Outdoor Grow harvest yielding approximately 10,300 kg of dried flower. The yield figure is limited to dried flower, and excludes stems or other parts of the cannabis plant.