It’s time for your Daily Hit of cannabis financial news for March 2, 2020.
On The Site
Tilray
Tilray, Inc. (Nasdaq:TLRY) stock got slammed in aftermarket trading after the company delivered its financial results for the fourth quarter and full fiscal year ending December 31, 2019. The stock was falling over 11% and was lately trading at $13.54 following a positive day of buying.
The company’s fourth-quarter non-GAAP EPS of -$0.62 missed by $0.24 and the GAAP EPS of -$2.14 missed by $1.80. Revenue of $46.94 million which increased by 202 % over last year also missed estimates by $8.58 million.
The net loss for the quarter was an eye-popping $219.1 million versus a loss of $31.0 million. Adjusted EBITDA was a loss of $35.3 million compared to a loss of $13.3 million in the prior-year period. The increased net loss and Adjusted EBITDA declines were primarily due to increases in operating expenses related to growth initiatives, expansion of international teams, and the addition of Manitoba Harvest and Natura Naturals businesses.
Curaleaf
Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) said it will acquire Colorado-based edibles company BlueKudu for an undisclosed amount.
Founded in 2011, BlueKudu is one of Colorado’s oldest and most experienced edible manufacturers. Known for utilizing high-quality ingredients sourced from Rainforest Alliance Fair Trade Certified Farms, BlueKudu employs culinary experts and an extraction process that provides a cleaner and more natural oil to create artisanal cannabis products with vegan and gluten-free options. The company says it is available in 200 locations.
Payzel
Not only do cannabis companies face banking challenges, but the employees also face the stigma of the big green leaf. Banks are notoriously conservative when it comes to cannabis and that hurts employees who just want a car loan or a mortgage. The founders of cannabis logistics company Hardcar, saw first hand the struggles with banking and stepped up with a solution.
This new fintech company PAYZEL said it has secured banks to do home loans and other financial services for employees of cannabis companies. The company said that by shifting banks interest from just mortgages on buildings, which Payzel already does, to add homes was a natural evolution. The company arrived at this solution based on market demand from partners across the United States.
In Other News
Cronos Group
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has been unable to complete its financial statements for fiscal 2019 due to a continuing review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions. As previously announced, the Company has delayed its fourth quarter and full year 2019 earnings release and investor conference call, previously scheduled for Thursday, February 27, 2020.
Canopy Rivers
Canopy Rivers Inc. (“Canopy Rivers”) (TSX: RIV)(OTC: CNPOF) announced that PharmHouse Inc., its 49%-owned joint venture in Leamington, Ontario, received a licence amendment from Health Canada allowing for cultivation across its entire greenhouse, which is now fully operational. PharmHouse plans to immediately ramp up production in accordance with its offtake agreements with Canopy Growth Corporation and TerrAscend Canada Inc. PharmHouse has committed 50% of its 2020 output pursuant to these agreements, and currently expects to use the remaining 50% of its capacity for both additional offtake agreements and its own private label brand.
One comment
smarties strain
March 27, 2021 at 8:38 am
“Smarties is a hybrid strain. It’s slightly indica dominant strain created by crossing the classic Blue city. Cannabis smarties offer a delicious terpene profile and smell fruity and sweet. It’s named for its super tasty flavour. Smarties’ buds bring on the very sugary candy flavour & taste with rich, fruity berries and sharp mint.
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