In this week’s Cannabis Stock News Recap, you will find the top stories from around the industry for the week of May 27th – June 2nd, 2019.
Cannabis and professional sports have been making quite a few headlines lately. Last week, the merging of the worlds continued.
On Tuesday, May 21, 2019, a major partnership was announced between the mixed-martial-arts (MMA) league Ultimate Fighting Championship (UFC) and Edmonton-based Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB).
Earnings season is in full swing, and the market is now preparing to review and scrutinize the numbers of seven top U.S. Multi-State Operators. With a handful of the top Canadian players such as Aurora Cannabis (TSX: ACB) (NYSE: ACB) and Tilray (NASDAQ: TLRY) already reporting earnings, the attention now shifts South of the border.
Let’s dive right in and review the seven U.S. MSOs set to report earnings this week.
Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: 0VZ) reported financial results for the quarter ended March 31st, 2019.
Q1 2019 Financial Highlights:
- Reported revenue of $12.9 million, up 487% compared to the same period in 2018.
- Pro forma revenue* was $33.1 million.
- Reported a net loss of $31.2 million.
- Pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items, was $15.5 million.
- Six The Botanist branded dispensaries opened in New York, North Dakota, and Ohio and one dispensary was acquired on pro forma basis in Nevada.
- Deployed more than $100 million of capital through acquisitions and capital expenditures.
Charlotte’s Web Holdings, Inc. (CSE: CWEB) (OTCQX: CWBHF), the market share leader in whole-plant hemp extract products, today reported financial results for the first quarter ended March 31, 2019.
Highlights of First Quarter 2019 Results:
- Organic consolidated YoY revenue growth of 66% to $21.7 million
- Gross profit of $15.9 million, 73% of consolidated revenue
- Adjusted EBITDA of $4.5 million, 21% of consolidated revenue
- Net income of $2.3 million, 11% of consolidated revenue
- 51% of revenue from retail outlets
- EPS basic of $0.03 per share; EPS diluted of $0.02 per share
Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF), a leading vertically integrated cannabis operator in the U.S., today reported its financial and operating results for the first quarter ended March 31, 2019.
First Quarter Highlights:
- Reported Pro Forma Revenue of $75.1 million(1)(2)
- Opened seven new dispensaries at a rapid pace in key markets such as Florida, Maryland and New York, building on existing licenses and prior acquisitions
- Qualified to list on OTC Markets Group’s OTCQX® Best Market under the symbol “CURLF”
Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF) today announced its financial results for the first quarter of 2019 ended March 31, 2019.
First Quarter 2019 Financial & Operational Highlights:
- Revenue grew 192% year over year, from $15.2 million in Q1 2018 to $44.5 million in Q1 2019
- Adjusted EBITDA1,2 increased from $6.1 million in Q1 2018 to $19.0 million in Q1 2019
- Successfully settled with the Florida Department of Health, increasing the potential number of Trulieve dispensaries to 14 above the state cap
- First medical marijuana licensee to complete a sale of smokable flower following approval from Florida legislature
- Establishment of four new dispensaries in Florida, bringing the total to 26 throughout the state
- Received Minorities for Medical Marijuana’s inaugural 2018 Diversity and Inclusion Champion of the Year Award in the State of Florida
iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF), which owns, operates, and partners with best-in-class regulated cannabis operations across the United States, is pleased to report its financial results for the fiscal first quarter ended March 31, 2019.
- Revenue generating in nine of 11 states and a footprint allowing for up to 68 dispensaries
- Pro forma revenues1 for the first quarter were $18.5 million, up 22% sequentially from the prior quarter
- Pro forma revenues in April were approximately $8.5 million
- Increased wholesale distribution to 110+ doors across 3 states
- CBD For Life acquisition expected to close in June; currently distributed in more than 1,000 retail locations across 46 states
Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) one of the largest vertically integrated multistate cannabis operators in the United States, today released its unaudited financial results for the first quarter ended March 31, 2019.
- First quarter revenue of $21.1 million, up 313% year-over-year and 24% quarter-over-quarter.
- First quarter pro forma revenue1 of $33.9 million, which includes the impact of pending acquisitions in New York, Massachusetts, Florida, and in California with Origin House.
MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) today released its consolidated financial results for the third quarter of fiscal 2019.
- Increased revenue sequentially by 22% to $36.6 million across the Company’s operations in California, Nevada, New York, Arizona and Illinois
- Including revenue from pending acquisitions and pre-closing revenue from recently closed acquisitions, pro forma quarterly revenue was approximately $57 million based on third quarter results
- Continued to perform favorably in California with $24.9 million in retail revenue and retail gross margins increasing from 51% to 57%
- Announced $250 million financing commitment from Gotham Green Partners
CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF), a North American cannabis products and brands company, today announced its financial results for the three months ended March 31, 2019.
- Revenue was $11.2 million as compared to $0.6 million;
- Gross margin was $1.7 million as compared to $nil;
- Operating expenses were $18.2 million as compared to $4.5 million;
- Adjusted EBITDA loss of $12.7 million as compared to adjusted EBIDTA loss of $0.9 million.
Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of the retail chain Rise™, today reported its financial results for the first quarter ended March 31, 2019.
- Revenue: First quarter 2019 revenue increased 155% year-over-year to $27.9 million. Quarter-over-quarter revenue increased 34%, a record sequential growth for GTI.
- EBITDA1, Adjusted EBITDA1, and Adjusted Operating EBITDA1 for the quarter, as described in an accompanying financial table, was a loss of $4.0 million, a gain of $4.9 million, and a loss of $0.4 million, respectively.
- Net loss for the first quarter 2019 was $9.7 million, as compared to net loss of $3.3 million in the fourth quarter 2018, primarily due to the decrease in value from a variable note receivable in other income.
Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) today reported its financial results for the third quarter, which ended March 31, 2019.
Third Quarter 2019 Highlights:
- Revenue for the quarter at our Nevada cannabis operations grew to $5.1 million, driven by the influence of retail best practices
- Total revenue, including both MSO and CBD operations was $5.6 million
- The+Source is tracking to annualized revenue of $15,000 per selling square foot, one of the strongest reported metrics in both cannabis and retail
Auxly Cannabis Group Inc. (TSXV: XLY) (OTCQX: CBWTF) today released its financial results for the three months ended March 31, 2019.
Q1 2019 Highlights:
- Advanced product R&D, formulation and manufacturing at Dosecann in preparation for the legalization of derivative cannabis products
- Progress has been made in several areas including extraction of flower to cannabis resin and development of edible product formulations, with a full product suite to be completed during the third quarter of 2019
- Successful production of oil in a bottle for sale in the second quarter of 2019
- Completed first sales of dried cannabis flower
MichiCann Medical Inc., operating as Red White & Bloom, has signed an LOI to acquire the world’s largest indoor premium hemp facility, located in Granville, Illinois. In operation since 1978, the greenhouse has been granted its Hemp Grower License and Hemp Processor Registration from the Illinois Department of Agriculture.
“We continue with our plan to rapidly expand from our base in Michigan and invest in scaled operations across the United States as we bring together additional components of our Multi-State Operator strategy,” stated RWB CEO Brad Rogers.
Organigram Holdings Inc. (NASDAQ: OGI) (TSXV: OGI), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce that it has closed its previously announced credit facility with Bank of Montreal (“BMO”) as lead arranger and agent as well as a syndicate including three other lenders.
“The closing of this credit facility reflects BMO’s and the syndicate lenders’ vote of confidence in our management team, ability to deliver financial results, and investment in our world-class Moncton campus,” said Greg Engel, Chief Executive Officer.
Organigram Holdings Inc. (TSXV: OGI) (NASDAQ: OGI), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce its recreational cannabis plants and growing processes have been certified organic with Pro-Cert Organic Systems Ltd.
“We know that there is significant consumer demand for organic cannabis products,” says Greg Engel, CEO Organigram. “We have been proud to offer our medical customers access to organic strains and are excited to be able to expand our offering to adult recreational consumers who value organic options.”
Organigram Holdings Inc. (TSXV: OGI) (NASDAQ: OGI), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce it has recently shipped more than one hundred and thirty thousand units of pure cannabidiol (CBD) oil destined for markets across Canada.
“Since legalization, Canadian consumers have proven themselves to be not only receptive to, but surprisingly well educated about, the benefits of CBD,” says Greg Engel, CEO, Organigram.
Les Serres Vert Cannabis Inc., a subsidiary of Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) and a portfolio company of Canopy Rivers Inc. (TSXV: RIV) (OTC: CNPOF) (“Canopy Rivers”) has received its final cultivation licence from Health Canada. All 700,000 sq. ft. of operating space at Vert Mirabel is now licensed for cannabis production.
“We are thrilled that the operational infrastructure at Vert Mirabel is now fully online with over 500,000 sq. ft. already in production,” said Olivier Dufourmantelle, Chief Operating Officer, Canopy Rivers.
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is pleased to announce the next phase in its partnership with Parent Action on Drugs (“PAD”) and Canadian Students for Sensible Drug Policy (“CSSDP”) which will see PAD launch two new digital tools to help youth along with their parents, adult caregivers, and influencers, on how to make responsible decisions about cannabis use.
“Now that cannabis is legalized in Canada, we have a tremendous responsibility to ensure families have the tools they need to have pragmatic, well-informed conversations about cannabis,” commented Hilary Black, Chief Advocacy Officer, Canopy Growth.
HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) is formalizing its US presence with the appointment of Michael Monahan as Chief Financial Officer (CFO) and the establishment of HEXO USA Inc. HEXO Corp is creating innovative, easy-to-use, branded products that which will offer consumers consistent cannabis experiences.
“I have been touring the US to meet with current and potential investors and to tell the HEXO story. We’ve been sharing our vision and plans to operate in legal markets in the US to provide legal cannabis experiences powered by HEXO,” said Sebastien St-Louis, CEO, and co-founder of HEXO Corp.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) is pleased to announce, further to its news release of February 6, 2019, that it will effect on June 3, 2019 the distribution of unit purchase warrants of TGOD Acquisition Corp. to all registered TGOD shareholders of record as of January 31, 2019 who elected to receive the SpinCo Unit Warrants under its previously announced plan of arrangement with SpinCo.
SpinCo is also pleased to announce the appointment of Mr. Daniel Brody as Chief Executive Officer of SpinCo. Mr. Brody will transition from his current role of Vice President, Investor Relations at TGOD to replace Mr. David Doherty. SpinCo would like to thank Mr. Doherty for his contribution to SpinCo during his tenure.
CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) is pleased to announce that it has launched a cannabis education portal with Well.ca. This resource is available to Ontario residents through Well.ca, with additional provinces to launch soon.
“Our goal is that every Canadian has access to credible, balanced information and advice about medical cannabis,” says Peter Aceto, CEO of CannTrust. “At CannTrust, the medical market has always been our primary focus and this relationship with Well.ca further establishes our commitment to leading innovation and our belief in the powerful medicinal value of cannabis.”
Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF) today announced that the Company has acquired 84.97 acres of land in Jefferson County, Florida which will be used to construct a 750,000 square foot, state-of-the-art indoor growing facility. The facility will be constructed in phases and will be largely automated. Its proximity to Trulieve’s production facility in Midway, Florida will allow for convenient transport for processing of the product.
“Trulieve’s need for additional cultivation is being met with this new facility. The new site will supply us with additional product allowing us to meet the growing demands of Florida’s patients at a relatively low cost.” said Kim Rivers, CEO of Trulieve.
Ignite International Brands, Ltd. (CSE: BILZ) is pleased to announce that it has completed the previously announced business combination between Ignite and Ignite International, Ltd. by way of a plan of arrangement under the Business Corporations Act (British Columbia).
Jim McCormick, President of the Company, stated, “We are pleased that shareholders have supported our corporate reorganization and share our vision of developing Ignite into a global premium consumer brand. Now that we have accomplished this important step in the process we can move forward with the realization of that vision, including our recently announced initiatives in the US and UK.”
Ignite International Brands, Ltd. (CSE: BILZ) today announces that 1203238 B.C. Ltd. (“Finco”) completed a non-brokered offering of 17,200,000 subscription receipts at a price of $1.50 per Subscription Receipt for gross proceeds of $25,800,000.
The Offering was completed in conjunction with the reverse takeover of the Company to be completed by the shareholders of Ignite International, Ltd. (“Ignite US”), other than the Company, pursuant to the terms of a business combination agreement among the Company, 1203243 B.C. Ltd., Finco, Ignite US and the Ignite US Shareholders dated as of April 9, 2019, as amended as of May 6, 2019, as announced by the Company on March 1, 2019 and April 11, 2019.
Move over Canopy. The world’s largest cannabis company is set to IPO in less than 30 days.
Get the full details here so you don’t miss out on the next potential 10 bagger.