It’s time for your Daily Hit of cannabis financial news for September 24, 2020.
On The Site
KushCo Holdings, Inc. (OTCQX:KSHB) reported preliminary and unaudited financial results for its fiscal fourth quarter ended August 31, 2020 with revenue expected to be between approximately $25.5 million and $26.0 million, compared to approximately $22.3 million in its fiscal third-quarter 2020. The company noted that this would be an improvement from its previously disclosed guidance of between $24.0 million and $26.0 million. KushCo said that the 14% to 17% expected sequential increase in revenue is being driven primarily by an increase in sales to its top 100 customers, which consists of leading multi-state operators (MSOs), licensed producers (LPs), and brands.
Halo Labs Inc.(OTCQX: AGEEF) is acquiring 1265292 B.C. Ltd., otherwise known as Cannafeels, in exchange for common shares of Halo. The deal is valued at $6.5 million and is expected to close on or about October 15. Cannafeels is a software company developing an online application to provide consumers with relevant, web-sourced, and curated information about cannabis strains. The App is currently being developed for both the North American recreational market, as well as the UK and select EU medical cannabis markets.
Mindleap Health, a subsidiary of Mydecine Innovations Group Inc. (OTC:MYCOF) has launched a digital health platform that combines telehealth with mood, emotion, and habit tracking. Starting with psychedelic integration, the Mindleap platform will bring mental health specialists online, enabling a new era of digital mental health and wellness. The company said that later this year it will add other types of mental health specialists such as addiction and holistic wellness specialists.
In Other News
C21 Investments Inc. (OTCQB: CXXIF) announced unaudited results for its second quarter ended July 31, 2020. Revenue for the second quarter was $9.4 million, an increase of 15% from Q1. The company reported net income of $1.7 million for the quarter versus a net loss of $1.3 million for the same time period in 2019. Gross Margin of $4.8 million this quarter represented a 65% improvement from Q1. This was driven largely by higher sales, lower delivery costs as the business was able to resume in-store operations, and the substantial efficiency gains achieved in the Oregon operations.
President and CEO, Sonny Newman said, “C21 has achieved a critical milestone this quarter as evidenced by the significant cash flow generated and our positive earnings per share. Our focus and hard work over the last twelve months have paid off and we are now in a strong position to capitalize on the next phase of business growth. Our Nevada dispensaries continue to impress with the record retail revenue achieved this quarter.”
C21’s Nevada operations remained one of the most profitable in the cannabis sector, with the segment delivering $2.6 million in Net Income Before Tax in the quarter. The Nevada dispensaries generated a record $8.5 million in revenue in Q2, a 23% increase from Q1. This includes July as the first month reporting over $3 million in retail sales.
Numinus Wellness Inc. (TSXV: NUMI), a company creating an ecosystem of health solutions centred on developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies, is pleased to announce it has begun cultivating Psilocybe mushrooms, for the purpose of psilocybin production, at its 7000 square-foot Health Canada licensed facility. Psilocybin-assisted psychotherapy is currently being studied as a treatment for a range of mental health conditions including depression, anxiety, and substance use disorders.