It’s time for your daily hit of cannabis financial news for November 27, 2018.
On The Site
Cannabis multi-state operator Green Thumb Industries Inc. or GTI (GTII.CN) (GTBIF) reported that its third-quarter 2018 ending in September revenues increased 344% year-over-year to $17.2 million. Sequentially revenues increased 26%. The company attributed the rise in revenue to increased distribution of branded products, new store openings, and the start of adult use cannabis sales in Nevada.
The company statement said that GTI has operating revenue in five of its eight markets: Nevada, Illinois, Pennsylvania, Massachusetts, and Maryland and has increased capital investments related to the buildout of new markets in Florida, Ohio and New York in preparation for revenue generation in the first half of 2019.
On Monday, the New Jersey Legislature advanced a proposal to legalize and regulate marijuana for adults 21 and older. The Senate Budget and Appropriations Committee approved S2703, sponsored by Senator Nicholas Scutari, (7-2-4), and the Assembly Appropriations Committee approved A4497, sponsored by Assemblywoman Annette Quijano, (6-1-2).
The next step is to send the legislation to the full chambers for a vote. The state’s Governor Phil Murphy has been a big supporter of legalizing and regulating adult use cannabis. Readers can follow the latest in legislative moves on the Green Market Reports Legislation section.
Canopy Rivers (RIV.V) reported net income of C$10.9 million for the quarter ending in September versus last year’s net loss of C$2.1 million. The company has cash on hand of C$105 million versus last year’s C$46 million. Canopy Rivers is the investment arm of Canopy Growth (CGC). Canopy Rivers reported earnings per diluted share of seven cents.
During the quarter, the company completed an oversubscribed private placement of subscription receipts at C$3.50 for gross proceeds of approximately C$101 million, co-led by CIBC Capital Markets, GMP Securities L.P., and Eight Capital, and then followed on with a non-brokered private placement of subscription receipts for gross proceeds of approximately C$3.4 million.
Altitude Investment Management
Altitude Investment Management is closing its Fund I on November 30, 2018, with $30 million raised. Altitude is led by John Brecker, Jon Trauben, Michael Goldberg, and Roderick Stephan. Fund I opened on March 1, 2018, and the company said that it has invested in 16 companies from early-stage to growth companies. The company plans to launch Fund II at the beginning of 2019 and hopes to raise $100 million.
In Other News
GW Pharmaceuticals PLC (GWPH) stock dropped over 3% in post-market trading after the company missed revenue expectations in the fiscal fourth quarter. Revenue declined to $2.4 million from $2.5 million last year. Analysts had estimated the company would report revenue of $2.9 million.
The biotech company delivered a fiscal fourth-quarter net loss of $79.9 million, or 23 cents a share versus $53.9 million, or 18 cents a share in the same time period last year. On Monday, the company announced positive results from a Phase 3 trial study.
Sunniva, a North American provider of cannabis products and services, has announced that the Company has acquired LTYR Logistics, a California-based cannabis distribution company headquartered in San Diego, for state-wide dissemination of Sunniva branded cannabis products. LTYR will become Sunniva’s logistics and technology distribution platform to drive sales from Sunniva’s large-scale cannabis production facilities, in preparation for Sunniva’s branded product launches in Q1 2019.