Its time for your Daily Hit of cannabis financial news for November 20th, 2019.
On the Site
House Judiciary Committee Approves MORE Act
In a 24-10 vote, the House Judiciary Committee approved the MORE Act that would effectively end marijuana prohibition on Wednesday. This is the first time that a congressional committee has approved a bill to make cannabis legal.
The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act was sponsored by House Judiciary Committee Chairman Jerry Nadler (D-NY) and would federally decriminalize and deschedule cannabis. In addition to that, the MORE Act contains strong social equity provisions with an emphasis on restorative justice for communities most impacted by cannabis prohibition.
TerrAscend Delivers Rising Revenue, Rising Expenses
TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) reported that its third-quarter for 2019 increased 53% sequentially to $26.8 million from $17.6 million in the second quarter. It was a large increase over the $1.8 million delivered in the third quarter of 2018. All figures are reported in Canadian dollars. The company attributed the increase to higher overall sales in Canada as well as strong sales in the U.S. Late in the third quarter, TerrAscend acquired Ilera Healthcare, the owner of one of five fully vertically integrated licenses in the State of Pennsylvania.
Harvest Health Reports Earnings, New Financing, Changes CannaPharmacy Deal
Harvest Health & Recreation Inc. (CSE: HARV)(OTCQX: HRVSF) reported total revenue for the third quarter of 2019 of $33.2 million, an increase of 197% from $11.2 million in the third quarter of 2018. This was an increase of 25% sequentially. The net loss was $39.1 million for the quarter, which the company attributed to the cost of investments to support its growth initiatives, disclosed acquisitions and planned expansion. It was also announced that Harvest and CannaPharmacy, Inc. agreed to revise their pending transaction. “Under a new binding agreement, Harvest and CannaPharmacy have agreed to terminate their current agreement whereby Harvest would have acquired CannaPharmacy’s right to own or operate cannabis licenses in Pennsylvania, Delaware, New Jersey, and Maryland.”
In Other News
Green Thumb Industries Reports Increased Third Quarter Revenue
GTI increased its 2019 third-quarter revenue increased 296% year-to-year to $68 million. The company’s EBITDA and adjusted operating EBITDA was $1.6 million and $14.1 million, respectively. Green Thumb Industries had a reported net loss of $17.1 million, as compared to the net loss of $22.2 million in 2019’s second quarter. Their current assets totaled $123.8 million and included cash and cash equivalents of $66.1 million, while total outstanding debt was $96.9 million.
TILT Holdings Reports Earnings
TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) reported revenue of $46.1M in the third quarter of 2019, an 18% increase from the second quarter of 2019. The company also posted its first-ever positive adjusted EBITDA quarter, $2.7M, up from negative ($4.0M) in the second quarter of 2019. Third-quarter net income was $26.1M, compared to a net loss of ($48.9M) in the second quarter of 2019. When compared to the second quarter of 2019, the net income improvement reflects revenue growth, improved margins, and SG&A reduction to cost initiatives as well as a reduction in non-cash stock compensation expense due to forfeiture of legacy stock options.
iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) reported revenues of $22.3 million, up 16% from the prior quarter. The company recorded a third-quarter net loss of $15.3 million, compared to a loss of $9.3 million in the prior quarter. The company maintained expense discipline in the quarter, and began to see the results of planned procurement and expense control initiatives; adjusted EBITDA loss net of biological assets was $3.6 million, compared to a loss of $6.9 million in the prior quarter.
Canopy Growth Sued Again by Rosen Law Firm
Rosen Law firm filed a class-action lawsuit against Canopy Growth. The lawsuit seeks to recover damages for Canopy investors under the federal securities laws. According to the lawsuit, Canopy made false claims or failed to disclose that the company was experiencing a low-supply issue with its soft gel and oil products.