It’s time for your Daily Hit of cannabis financial news for October 6, 2020.
On the Site
Planet 13 Holdings Inc. (OTCQX:PLNHF) announced preliminary 2020 third-quarter revenue of $22.8 million a 110% increase over the second quarter. The company did not release any profit or loss figures for the quarter. The company delivered a net loss of $4 million in the second quarter. The gross margin was ~50% in the third quarter.
Planet 13 said that the store served ~1,625 average customers per day in-store with an average ticket of ~$124. In June of 2019, the store was serving over 2,000 customers a day, so there is clearly a decline in the store traffic as tourism is yet to return to the old levels. The average ticket in June 2019 was $88, so the ticket size is increasing even if the traffic is lower.
Stem Holdings, Inc. (OTCQX: STMH) is buying e-commerce and cannabis delivery company Driven Deliveries, Inc. (OTCQB: DRVD) in an all stock deal valued at $46 million. The combined company will be known as Driven By Stem and the new company will continue to trade under the symbol STMH on the OTC. It will maintain its headquarters at Stem’s current location in Boca Raton, FL. The deal is expected to be immediately accretive to earnings of Stem and should close in late 2020.
The company said that the acquisition is expected to increase scale to drive sales growth and bring cost savings estimated at $1.5 million in the first year through productivity initiatives, vertical supply chain efficiencies, and reduction and consolidation of overhead and administrative costs. The deal is not expected to increase debt levels.
Field Trip Health Ltd. (CSE: FTRP) has become the latest psychedelic treatment company to go public through a reverse takeover of Newton Energy Corp. The company began trading today on the Canadian Securities Exchange under the symbol FTRP.
Joseph del Moral, CEO of Field Trip, said, “Our public listing will increase our visibility among investors as we continue our work to transform attitudes and approaches to mental, emotional and behavioral health through psychedelics. Transparency and open communication with our shareholders will remain a top priority going forward. I would encourage those investors who are interested in following our progress to explore the new website in more detail.”
High Times Top Cannabis Chef winner Mike Moya, along with Rene Bosquez, are proud to introduce Dulze, the first Mexican-owned gummy brand in the cannabis industry.
Dulze is a brand dedicated to changing the cannabis world with flavor, art, and swag. Using family recipes and modern techniques, Dulze treats are lab-tested, and Abuelita approved. Carefully integrating Hispanic culture into every aspect of the product, Dulze edibles are a great way to start your day.
In Other News
iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) said that it has received final approval from the Supreme Court of British Columbia for the Company’s plan of arrangement approved by security holders on September 14, 2020 to implement the Company’s previously announced recapitalization transaction. Further to the Company’s news release dated September 29, 2020, iAnthus amended and restated the Plan of Arrangement to remove a proposed injunction provision and to provide for a narrower scope of release of claims. The Court issued its Reasons for Judgment on October 5, 2020 and approved the Revised Plan. A copy of the Court’s decision is available online at: https://www.bccourts.ca/jdb-txt/sc/20/14/2020BCSC1484.htm .
Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) announced that further to the news release dated March 30th, 2020, its 100% owned subsidiary, Venom Extracts has achieved the first of two revenue milestones in accordance with the terms of the definitive agreement that was entered in connection with the acquisition of Venom by the Company. As a result, the Company will issue 19,740,036 common shares to certain former Venom shareholders at a deemed price of $0.20 per Earn-Out Share.