It’s time for your Daily Hit of cannabis financial news for October 27, 2020.
On the Site
California-based cannabis company Hollister Biosciences Inc.(OTC: HSTRF) gave an update on its third-quarter 2020 performance sales figures. The company said that for the quarter ending September 30, 2020, it generated record quarterly revenue of C$ 12.5 million and C$ 1.265 million in EBITDA from its product line of pre-rolls, concentrates, distillates, solvent-free bubble hash, pre-packaged flower, tinctures, and vape products. Hollister was clear that the revenue and EBITDA figures had not yet been audited and are based on reports prepared by management.
“We are very pleased with our ability to deliver record quarterly revenue in such a challenging market environment. We attribute our revenue growth to further penetration of the California and Arizona dispensary networks and successful new product launches with our joint venture partners. We hope to continue this positive momentum into year-end” stated Carl Saling, CEO.
The company did not state whether there was any net loss or profits for the third quarter. These figures would be a sequential increase over the revenue from the second quarter ending June 30th, 2020, which was $8.47 million.
Canadian cannabis company Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced it has completed the previously filed At-The-Market program. In addition to that, it has filed a new preliminary short form base shelf prospectus with securities regulators in each of the provinces of Canada, except Quebec, and a corresponding shelf registration statement on Form F–10 with the United States Securities and Exchange Commission. This filing will allow Aurora to make offerings of up to $500 million of common shares, preferred shares, warrants, subscription receipts, and debt securities, or any combination thereof during the 25-month period that the base shelf prospectus remains effective.
Aurora cannabis already had over 120 million shares outstanding and 19% of those shares are shorted – meaning those traders are betting the price per share will fall. Shares were lately selling at $4.37 in early trading, but the price to sales according to Yahoo Finance is $2.14. This is a tremendous drop from the company’s year high of $47 and not far from the 52-week low of $3.93.
With the completion of the previously filed ATM program, Aurora said it currently has available cash resources of approximately $272 million, in addition to an undrawn revolver capacity of approximately $11 million.
In Other News
cbdMD, Inc. (NYSE American: YCBD) announced today that its CBD pet products brand, Paw CBD, has experienced another record quarter of net sales. Paw CBD’s September 30, 2020, estimated preliminary quarterly net sales are expected to range between $1.6 million and $1.65 million, or a sequential quarterly growth of between 30% and 34% from the $1.23 million in net sales in the prior quarter ended June 30, 2020.
“We are seeing an incredible growth trajectory in our Paw CBD brand. We now project total net sales of the Paw CBD brand to reach approximately $6 million for calendar 2020. Based on an article published on October 12, 2020, by Hemp Industry Daily, which used data provided by market analytics firm Nielsen Global Connect, estimated the hemp-derived CBD market for pets will total $40 million to $60 million in 2020. Therefore, based on these estimates, we expect Paw CBD will represent an approximate 10% to 15% market share in the pet U.S. CBD market in calendar 2020. This is an incredible achievement considering Paw CBD was launched less than one year ago,” said Martin A. Sumichrast, Chairman and Co-CEO of cbdMD, Inc.
Real Brands Inc. (OTCPK: RLBD) has completed a reverse merger to acquire Canadian American Standard Hemp Inc., (CASH) effective immediately. Real Brands’ name and trading symbol will be maintained, with CASH shareholders acquiring majority control of Real Brands. CASH will continue to operate as a wholly-owned subsidiary of Real Brands. Thomas Kidrin, CEO of CASH, has been named Chief Executive Officer (CEO) of Real Brands, replacing former Real Brands CEO Jerry Pearring. Real Brands’ new headquarters will be the newly renovated/constructed CASH headquarters and hemp processing facility at 12 Humbert St., in North Providence, RI.
Cultivera, cannabis-specific business management and track-and-trace software solution, just passed $1 billion in total sales orders since their launch in 2017. Cultivera launched in Washington and has expanded to eight states, with the ability to serve companies across the entire supply chain, in any state with a legal recreational or medical market, including those with Metrc as the tracking system. The Cultivera platform provides compliance, traceability, and other valuable, time-saving features that allow cannabis businesses to spend more time focusing on growth, processing, and sales while carrying the peace of mind that they are abiding by legal requirements.