Kaitlin Domangue
It’s time for your Daily Hit of cannabis financial news for November 30th, 2020.
On the Site
Measure to Legalize Marijuana in Mexico Falls Short in Big Ways
This article explains how Mexico’s lack of free home cultivation makes it appear that the country is legalizing cannabis solely for capital gain. “In Rivera’s words, the government is simply “changing the address of prohibition”–and this simply isn’t enough.”
Auxly Sees 732% Growth in Total Revenue
The company reported a total net revenue of $13.4 million for the three months that ended on September 30th. Before excise taxes and research contacts, this figure is $15.2 million. Their reported net revenue represents an 85% increase from the previous quarter, and a 732% increase from the same period last year.
In Other News
Veritas Farms Reports Q3 Earnings
Veritas Farms reported a total revenue of $1,466,824 for Q3. This is up 21% from the same time last year, with 2019’s third quarter capping out at $1,215,810.
Alexander M. Salgado, CEO, and co-founder of Veritas Farms, commented, “E-commerce has continued its strong growth during COVID-19 both with Q3-2020 vs. Q3-2019 growth of 78% and 2020 YTD vs. 2019 YTD growth of 96%. This growth has helped counterbalance BTB retail, which remains sluggish, though we are seeing signs of improvement. Large chains are adding more retail doors that carry Veritas Farms ™ products, expanding our footprint particularly with our Veritas Pet™ and Veritas Beauty™ product lines.”
4Front Ventures Announces Third-Quarter Revenue
The company’s revenue for the third quarter increased by 18% quarter over quarter. Third quarter revenue was reported at $22.3 million.
Leo Gontmakher , CEO of 4Front, said, “We are incredibly pleased with our third quarter 2020 results that reflect the Company’s laser focus on execution. We have big plans for our platform, but it all starts with operational excellence and delivering to shareholders what we say we are going to deliver. While we have much more to accomplish, the hard work of our team has set the table for what I expect to be an exciting year for our company in 2021. With 4Front’s constant operational improvements and an expected strong year for the cannabis industry overall, we are pleased to provide Covid-qualified initial 2021 guidance of $170 – $180 million in Pro Forma Systemwide Revenue and $40 – $50 million in Adjusted EBITDA, with the longer-term opportunity in our current geographical footprint upwards of $650 million in revenue and $250 million in EBITDA.”
