It’s time for your Daily Hit of cannabis financial news for September 25, 2018.
On The Site
Aurora Cannabis Inc. (ACBFF) released its fourth quarter and fiscal year-end financial results following the market close on Tuesday. For the fiscal year ending 2018, Aurora reported total revenue of C$55 million versus fiscal 2017’s total revenue of C$18 million. The net income for the year was C$69 million versus the previous year’s loss of C$12 million. Aurora also reported a gross profit of C$43 million for the year versus last year’s gross profit of C$16 million.
For the fourth quarter of 2018, the company reported that its revenue increased 223% to C$19.1 million from last year’s C$5.9 million for the same time period. Fourth quarter net income increased to C$79 million, versus a net loss of C$20 million for the previous year. It was 16% better than the previous quarter’s revenue of C$16.1 million. Gross margins improved to 74% from the third quarter’s gross margin of 59%.
Longtime cannabis publication High Times has acquired print magazine Dope Media in a deal valued at $11.2 million. The deal is a combination of stock and cash. High Times has been building a portfolio of cannabis titles including Green Rush Daily and Culture. High Times said that there would be no staff changes at this time. DOPE’s CEO, George Jage, founders Dave Tran, James Zachondi, and Evan Carter will all remain.
Scott McGovern, the founder of Green Rush Daily was named Executive Vice President at High Times when his company was acquired. However, McGovern is already out of the company and only worked at High Times for about a year. He is now the Co-founder of a blockchain news site call Blockler.
Separately GeekWire reported that cannabis review website Leafly ousted its CEO Chris Jeffrey, who wasn’t even in the position for a year. Privateer Holdings that owns Leafly issued this statement to Geekwire,” “This morning the Board of Directors of Leafly removed Chris Jeffrey from his role as Chief Executive Officer. The Board made the decision to replace Mr. Jeffrey as CEO after careful consideration due to concerns about his management of the company.”
In Other News
Green Thumb Industries Inc.
Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), a national cannabis consumer packaged goods company and owner-operator of the high growth national retail chain RISE™ dispensaries, today announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. to purchase, on a bought deal an aggregate of 3,250,000 subordinate voting shares of the company at a price of CAD $20.00 per Offered Security for aggregate gross proceeds of CAD $65 million. The deal is expected to close on or about October 17.
KushCo Holdings, Inc. (KSHB) has entered into a strategic transaction with Smoke Cartel (SMKC) to sell Roll-uh-Bowl, an online distribution platform for retail sales of collapsible and unbreakable medical-grade silicone water pipes. KushCo will transfer ownership of all Roll-uh-Bowl assets, including inventory, branding materials, the website, and social media, in exchange for shares of Smoke Cartel valued at $1,500,000 plus the value of inventory. KushCo will also build a referral landing page into the Kush Bottles website to direct customers to Smoke Cartel when searching for wholesale glass & smoking accessories.