It’s time for your Daily Hit of cannabis financial news for November 25, 2020.
On The Site
Predictions for Green Wednesday 2020
Headset forecasts an even larger than usual uptick in recreational cannabis sales on Green Wednesday this year for several reasons:
– In all adult use cannabis states tracked by Headset, the total market has grown by at least 20% in total revenue over last year (when comparing October 2019 to October 2020).
“On average, Thanksgiving tends to be one of the Top 5 sales holidays of the year, and we expect that trend to continue this year,” said James Ahrendt, Business Intelligence Architect, Akerna (NASDAQ: KERN). “In the past, we’ve seen huge spikes in sales on Wednesday and Friday since most dispensaries are closed on Thursdays.”
Akerna anticipates that the average order total will be around $82.30 for adult-use customers and $128.46 for medical consumers, representing an increase of approximately $13 compared to the average order total on any other given day of the year.
Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) reported that revenues rose 36.5% to $$22.8 million for the third-quarter ending September 30, 2020, versus last year’s $16.7 million. The company also delivered a net income of $0.2 million as compared to a net loss of $1.7 million in 2019. The net income before taxes was $3.4 million as compared to a net income of $0.3 million last year for the same time period. The operating expenses, excluding non-cash compensation expense and depreciation and amortization, was $7.2 million in the quarter versus $6.7 million in 2019, an increase of 7.9%. The third-quarter 2020 adjusted EBITDA of $6.2 million was higher than the 2019 Adjusted EBITDA of $3.4 million.
Vireo Health International, Inc. (OTCQX: VREOF) reported that its revenue rose 67% to $11.9 million for its third quarter ended September 30, 2020 versus $7.1 million for the same time period in 2019. Net income in the third quarter was $122,252 versus a net loss of $14.6 million in the 2019 third quarter. Vireo said the favorable improvement in net income was primarily driven by the one-time gain of $16.4 million on the divestiture of the company’s former PAMS subsidiary.
In Other News
Driven Deliveries, Inc. (OTCQB: DRVD), one of California’s fastest-growing online cannabis retailers and direct-to-consumer logistics companies, today announced its financial results for the three months ended September 30, 2020.
- Gross Revenue for the third quarter ended September 30, 2020 totaled record sales of $7.2 million.
- Net Revenue for the same period was $6.0 million, +393% Y/Y.
- Gross Revenue Fiscal YTD totaled record sales of $16.6 million, +1,193% Y/Y.
- Net Revenue Fiscal YTD was $13.8 million, +998% YTD Y/Y.
- The company announced its pending acquisition by Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) is expected to close in CY20/Q4.