The Daily Hit is a recap of the top financial news stories for Nov. 9, 2023.
On the Site
Village Farms Leans on Brand Diversification to Navigate Cannabis Glut
Village Farms International (Nasdaq: VFF), an agriculture veteran turned cannabis grower, is weathering a competitive cannabis market by betting on brand variety and operational efficiency, executives said during the company’s third-quarter earnings call. Read more here.
Aurora Cannabis’ Diversification Strategy Pays off in Q2
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) is experiencing its “strongest fiscal year to date,” according to its chief executive officer. Total net revenue for the quarter was C$63.4 million, a year-over-year increase of 30.5%, mainly attributable to Aurora’s global medical cannabis business and its plant propagation business. Read more here.
Texas Receives 132 Applications for Low-THC Medical Marijuana Dispensaries
Despite Texas’ nearly symbolic “low-THC” medical marijuana law, which legalizes cannabis products that contain no more than 1% THC, the state received 132 applications for dispensary business permits. Read more here.
Rhode Island Marijuana Grower Fined $625k for Unregistered Products
A Rhode Island cannabis grower has agreed to pay a $625,000 fine and to yank a lawsuit it filed against the state, in exchange for permission to keep its business permit. Regulators found that Fire Ganja had 1,473 marijuana plants, 1,507 ounces of flower, 2,038 ounces of hash, and 276 ounces of concentrates, all without proper tracking tags affixed. Read more here.
Canopy Growth Could Be Writing a Turnaround Tale with Q2 Results
Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) reported some improvement in its financials for the second quarter of the fiscal year 2024, hinting at a shift toward hope for the struggling operator. The company posted a net revenue of C$70 million with a gross margin of 34% for the quarter ended Sept. 30. Read more here.
In Other News
MICHIGAN PRODUCT RECALL: Armada Cannabis Co.
A single batch of Armada Cannabis Co.’s Cannabis Apple Cider is being recalled because the products were not compliantly produced and don’t have the necessary ingredient to ensure shelf stability, the Michigan Cannabis Regulatory Agency said. The cans were sold between Oct. 11 and Nov. 1 with an expiration date of Jan. 1, 2024. Read more here.
Canada Greenhouse Capacity
One after another, many of Canada’s largest cannabis greenhouses and indoor grow operations have been sold or mothballed as the industry continues to search for a supply-demand equilibrium after years of overproduction. The facilities, each costing anywhere from 100 million Canadian dollars ($73 million) to more than CA$500 million, are being closed for various reasons. Read more here.
Clever Leaves Holdings
Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) reported revenue in the third quarter of 2023 increased 33% to $3.8 million compared to $2.9 million for the same period in 2022. Net loss was $5.1 million compared to a net loss of $20.2 million in the prior year period. Read more here.
Hydrofarm Holdings Group
Hydrofarm Holdings Group Inc. (Nasdaq: HYFM) saw its net sales decrease 27% to $54.2 million in its third quarter ended Sept. 30. Net loss was $19.9 million compared to a year-ago net loss of $23.5 million. Read more here.
Urban-gro Inc. (Nasdaq: UGRO) reported third-quarter revenue of $20.9 million, up 69% over the same period a year ago. Net loss was $3.4 million, or $0.29 loss per share, as compared to a net loss of $8.7 million, or $0.81 loss per share, a year ago. Read more here.