It’s time for your Daily Hit of cannabis financial news for November 5, 2019.
On The Site
Cannabis biotech company GW Pharmaceuticals plc (NASDAQ: GWPH) saw its share tumble in aftermarket trading despite delivering solid earnings. The company reported third-quarter net sales of $86 million and $188 million in net sales in the first three quarters of 2019. So far over 15,000 patients have received Epidiolex prescriptions since launch. The stock was falling over 11% to roughly $118 in post-market trading.
Revenue for the quarter ending September 30, 2019, was $91.0 million versus last year’s $2.4 million for the same time period. This easily beat the estimate of $85.91 million. The net loss was $13.8 million compared to a net loss of $79.9 million for the third quarter in 2018. The company also reported the loss as $0.04 cents per share which was much improved over last year’s loss of $2.76 per share and handily beat the estimate for a loss of $0.85 cents per share.
Cannabis extraction company MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) said it has filed an application to list its common shares on the NASDAQ Stock Market (NDAQ). The company said it will continue to maintain the listing of its common shares on the Toronto Stock Exchange under the symbol “LABS”.
“We are thrilled to be entering the next phase of growth at MediPharm Labs including cross-listing on the NASDAQ, one of the world’s foremost exchanges for emerging markets and technology, such as the burgeoning cannabis sector,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “Listing alongside our peers on the NASDAQ will enhance our visibility and access to a larger base of institutional and retail shareholders in the U.S. and globally.”
In Other News
Merida Prices IPO
Merida Merger Corp. I (Nasdaq: MCMJU)(NEO: MMK.UN) priced its initial public offering of 12,000,000 units at USD$10.00 per unit. The units will commence trading November 5, 2019 on Nasdaq under the symbol “MCMJU” and are expected to commence trading on the Neo Exchange Inc. on or about November 8, subject to satisfying certain listing conditions, under the symbol “MMK.UN”. Each unit consists of one share of common stock of the Company, and one-half of one redeemable warrant (“Warrant”) with each whole Warrant entitling the holder to purchase one share of Common Stock at a price of USD$11.50 per share. Once the securities comprising the units begin separate trading, the Common Stock and Warrants are expected to be traded on Nasdaq under the symbols “MCMJ”, and “MCMJW” and on the NEO under the symbols “MMK.U” and “MMK.WT.U”, respectively.
CV Sciences (OTCQB:CVSI) reported revenue of $12.6M (-7.4% Y/Y) which missed estimates by $6.01M. Third quarter sales were impacted by increased market competition in the natural product category, and the continued impacts on retail customers as a result of the uncertain regulatory environment for CBD. The third quarter Non-GAAP EPS of -$0.01 missed by $0.02 and the GAAP EPS of -$0.02 missed by $0.03. The decline in operating income is primarily related to reduced sales and additional investment in sales, marketing and R&D activities.
For fiscal year 2019, the company expects revenue to be in the range of $55 million to $57 million.
Choom (CSE: CHOO) (OTCQB: CHOOF) has secured a Development Permit for a retail location in Kitsilano, one of Vancouver’s premier neighborhoods located in Vancouver, Canada. The location has received a development permit and the required Board of Variance approval from the City of Vancouver to operate a recreational retail cannabis store. Choom has submitted its application for a recreational retail cannabis store license to the Liquor & Cannabis Regulation Branch of the Province of British Columbia.