It’s time for your Daily Hit of cannabis financial news for October 14, 2020.
On The Site
Green Market Report, the center for trustworthy business, financial and economic news in the cannabis industry, and its Co-founder and Chief Executive Officer Debra Borchardt have been named the winners of the 17th annual Stevie Awards for Women in Business.
The Stevie Awards for Women in Business honor women executives, entrepreneurs, employees, and the companies they run– worldwide. The Stevie Awards have been hailed as the world’s premier business awards. More than 1,500 entries were submitted this year for consideration in more than 100 categories as Green Market received the following awards:
Gold Stevie – Website of the Year: Green Market Report
Silver Stevie – Female Executive of the Year – Business Services: Debra Borchardt
“The Green Market Report website is an impressive website that does a great job of providing information about the cannabis industry including financial news, reports, and information about upcoming summits,” commented one of the judges. “Debra has built a successful media company reporting on a growing niche industry.”
cbdMD, Inc. (NYSE: YCBD) reported preliminary financial results for the fourth quarter of fiscal 2020, and the year ended September 30, 2020. The company said that net sales revenue for fiscal 2020 is expected to range between $41.7 and $41.8 compared to $23.7 million in fiscal 2019. cbdMD’s stock was rising over 2% on the news and shares were lately selling at $2.33.
cbdMD also stated that its net sales revenue for the fourth quarter of fiscal 2020 are expected to range between $11.5 and $11.7 million compared to $9.54 million in the fourth quarter of fiscal 2019. the company did not report any profit or loss numbers.
Michigan-based privately-owned cannabis company Gage Cannabis Co. has launched a Regulation A, Tier 2, equity financing. The company’s Executive Chairman is industry leader Bruce Linton. Gage said it is offering up to 28,571,400 shares of Subordinate Voting Shares for $1.75 per Share. The shares are being offered pursuant to Regulation A of Section 3(b) of the Securities, as amended, for Tier 2 offerings, by management on a “best-efforts” basis directly to purchasers who satisfy the requirements set forth in Regulation A.
In Other News
The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) reported its third-quarter financial results for the period ended August 31, 2020. The company said that net revenue for the third quarter of 2020 was $18.1 million, a 10% increase from $16.5 million in the third quarter of 2019. The company delivered a net loss of $3 million.
Product sales for the third quarter of 2020 made up 83% of net revenue at $15.1 million, a 52% increase from $9.9 million in the second quarter of 2020. Gross profit was $7.3 million, or 39.5% of revenue, for the three months ended August 31, 2020, compared to $12.8 million, or 77.8% of revenue, in the same period in fiscal 2019. The reduction in gross profit can be attributed to the continued pullback in toll extraction volumes, as the Company shifts its focus toward driving greater white label and custom manufacturing product volumes and sales.
Adjusted EBITDA (2) was $1.4 million, or 7.8% of revenue, for the third quarter of 2020, compared to $9.8 million , or 59.4% of revenue, in the third quarter of 2019. Adjusted EBITDA was impacted by the reduction in gross profit discussed above and an increase in operating expenses as the Company continues to scale its operations and build out its manufacturing platform.