It’s time for your Daily Hit of cannabis financial news for October 29th, 2019.
On the Site
Yield Growth Increases Revenue, Trims Losses
The Yield Growth Corp. (CSE: BOSS) (OTC: BOSQF) released financial and operational results for the third quarter ended August 31, 2019, as revenue increased by 61% to $1.9 million a sequential jump over the second quarter’s $1.2 million. It increased by 355% over last year’s $0.4 million at the same time period. Net losses decreased by 55% to $1.9 million in Q3 2019 compared to $4.1 million in Q2 2019 and decreased by 50% compared to $3.7 million in Q3 2018.
Cowen & Co Questions MedMen’s Cost Cutting Goals
On Tuesday, Cowen & Co. senior analyst Vivien Azer issued new comments on MedMen MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) following the company’s earnings announcement after the close of trading on Monday.
She wrote, “In FY4Q19, MMEN continued on its cost-cutting pathway, having reduced corporate SG&A spend by 14.6% or $5.6 mm relative to the company’s December spend (FY2Q19). Importantly, however, the company reiterated its cost-cutting target relative to the guidance offered in May 2019 (where they called for a 20% reduction from 2Q to 2Q). This, unfortunately, ignores the company’s most recent guidance from August, where the company: 1) expanded the cost-cutting target to a 30% SG&A reduction, and 2) targeted achieving this bigger reduction by the September quarter (one quarter earlier).”
MedMen Loses Board Control As Gotham Green Makes Changes
Following its earnings announcement on Monday after the close, MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) said that it was making certain amendments to its $250 million senior secured convertible credit facility arranged by Gotham Green Partners including changes to the company’s board.
HEXO Stock Slides On Lowered Guidance, Net Loss Increases 440%
HEXO Corp. (TSX: HEXO; NYSE: HEXO) stock was dropping over 6% in early trading after the company gave guidance, despite beating earnings estimates during the company release of its financial report. The company delivered a net loss increase of over 400% coming in at $56 million for the quarter versus last year’s net loss of $10 million for the same time period.
In Other News
Greenery Map Opens Platform to Thousands of CBD Retailers Across the United States
Greenery Map, the world’s first and only cannabis search engine to allow users to search for cannabis products based on their desired mood, medicinal use, and method of consumption, has added thousands of CBD retailers and products to their online system, now opening membership to all licensed CBD retailers across the United States. With this update, CBD retailers with both online and brick and mortar outlets are encouraged to claim their account, add product inventory, pricing, and create an online shopping cart to drive sales directly through the Greenery Map platform.