Its time for your Daily Hit of cannabis financial news for November 14th, 2019.
On the Site
Prices are Declining as Cannabis Market Struggles
The blooming weed industry promised massive revenues, a nascent agrarian industry, a booming supply chain, and soaring local taxes. While it has delivered all of those things in a limited fashion, analysts and investors are worried that we may be seeing an early floor or at least normalization of the industry’s earning potential as prices settle and operational costs become reality. Tilray reported a third-quarter net loss of almost $36 million, or 36 cents per share. Last year it reported losses of $19 million of 20 cents per share. That said, revenue rose $51.1 million from $10.1 million.
Canopy Rivers Stock Falls As Income Drops
Canadian-based venture capital firm Canopy Rivers Inc. (TSX: RIV)(OTC: CNPOF) reported that it generated operating income of $930 thousand in Canadian dollars versus last year’s $23 million for the same time period. The company also delivered a net loss of $4.4 million versus last year’s net income of $10.9 million. The stock dropped over 6% to lately trade at USD$1.
Canopy Growth Stock Falls On Earnings Miss, Restructuring Charges
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) fell over 9% on news that the company’s second-quarter earnings missed analysts’ estimates. The Canadian-based cannabis company reported (in Canadian dollars) gross revenue of $118 million, a 6% increase sequentially and a 408% increase over last year’s $23 million for the same time period ending in September. The net revenue of $76 million fell 15% sequentially and missed estimates by $29 million.
In Other News
Canopy Growth Gets Go-Ahead to Begin a Lawsuit against CA Hemp Farm
Canopy says that Research and Development Farming (RDF) in Central Valley, California misused a $1.69 million deposit and killed hemp plants. Per an agreement, Canopy was supposed to give RDF 55,000 hemp seedlings to grow and harvest on a contract basis. However, RDF claimed that Canopy didn’t abide by contract terms and interfered with the project. A federal judge recently ruled the case can proceed after an attempt to have it tossed.
Zenabis Stock Gains Despite Declining Revenue in Q3
Zenabis stock is gaining today despite the company’s third-quarter results that show revenue more than halved to $12 million CAD.
Ademi & O’Reilly, LLP Investigates Possible Securities Fraud of Canopy Growth Corporation
Ademi & O’Reilly, LLP is investigating securities fraud claims against Canopy Growth Corporation, accusing the company of making inaccurate statements regarding its business practices, financial statements, and prospects.
Kikoko raises $8M in Series A Funding to Secure Lead in Cannabis Wellness for Women
A leader in the cannabis wellness space for women, Kikoko, has announced its close of an $8 million round of Series A funding led by Bengal Capital. FlowKana, Kikoko’s distributor and supply chain partner, also participated in the round, which brings Kikoko’s total funding to $14 million to date.
Growth Raises $5 Million in Funding and Launches Global Conference for Cannabis Industry
Jonathan Weiner, founder of some of the largest global conferences including Money20/20 (fintech) and HLTH (healthcare) joined forces with Jake Skinner, a fintech entrepreneur, to launch “Growth”, the most influential cannabis event in the world. They raised an initial $5 million in funding from a network of private investors.