It’s time for your Daily Hit of cannabis financial news for October 29, 2020.
On The Site
KushCo Holdings, Inc. (OTCQX:KSHB) reported financial results for its fiscal fourth quarter and full-year ended August 31, 2020. The company reported that its net revenue decreased 44% from the prior-year period to $26.5 million, primarily as a result of the company implementing its 2020 Plan, which has resulted in tighter credit terms being extended to smaller and less creditworthy customers. KushCo beat the Yahoo Finance estimates for revenues, which was $25.7 million.
On a sequential basis, KushCo‘s net revenue increased 19%, driven by an increase in sales to the company’s top customers, which includes leading MSOs, licensed producers, and brands. On a GAAP basis, the net loss was approximately $7.3 million, compared to approximately $11.5 million in the prior-year period. Basic loss per share was $0.06 compared to $0.13 in the prior-year period. The estimate from Yahoo Finance was for a loss of four cents, so KushCo missed this by two cents.
Field Trip Health Ltd. (CSE: FTRP) (OTC: FTRPF) provided an update on its in-vivo and in-vitro studies on FT-104, its lead drug candidate. FT-104 is a novel, synthetic psychedelic molecule developed by Field Trip. The company confirmed both the successful GLP synthesis of FT-104 and that FT-104 is a serotonin 5HT2A receptor agonist (the serotonin receptor believed responsible for psychedelic experiences).
Troubled Canadian cannabis company Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) announced that its Arizona subsidiary Nabis AZ, LLC failed to fund its deferred payment obligation in respect of an asset purchase agreement for Perpetual Healthcare Inc. which is the operator of the Emerald medical marijuana retail dispensary located in Arizona. Nabis AZ was required to make payment to the vendors of approximately $8.1 million, including accrued interest, which was due on October 25, 2020. That payment wasn’t made because Nabis failed to secure alternative financing to fulfill the Deferred Obligation.
Champignon Brands Inc. (CSE: SHRM) (OTCQB: SHRMF) has learned the hard way that public companies can’t deliver their homework late without suffering consequences. The company’s stock was unable to trade as of Wednesday as a result of the company not delivering the required financial documents on time. Champignon said it continues to work diligently with the British Columbia Securities Commission to address the ongoing continuous disclosure review and to coordinate the revocation of the existing cease trade order.
In Other News
Columbia Care, Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) announced the completion of an add-on debt issuance under its existing senior secured indenture via a private placement of 20,000 units for aggregate gross proceeds of approximately US$20.4 million.
Subversive Real Estate Acquisition REIT LP (OTCQX: SBVRF) announced that the REIT LP has qualified to trade on the OTCQX® Best Market. The REIT LP will trade under the symbol “SBVRF,” starting on October 28, 2020. The REIT LP continues to also trade on the Neo Exchange Inc. in Canada under the symbols “SVX.U” and “SVX.RT.U.” “We are pleased to announce that we have qualified to trade on the OTCQX market, which marks another milestone in our effort to provide investors with greater access to our securities. We believe that the combination of growth and an estimated 6.5% yield offered by the REIT LP’s initial portfolio of 15 industrial and retail assets, as well as our high-quality platform as the second cannabis REIT, will be attractive to investors worldwide,” said the REIT LP’s CEO Richard Acosta.