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The Daily Hit is a recap of the top financial news stories for January 12, 2023.
On The Site
Organigram Earnings Beat
Share prices for Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) were up nearly 8% in early Thursday trading after results illustrated the company’s financial discipline, as it trimmed losses and posted revenues that beat expectations for the first quarter ending November 30, 2022. The Canadian cannabis company reported net revenue of $43.3 million, up 43% from $30.4 million in the same time period last year. Read more here.
Cannabis Sentences Drop
A new report issued by the U.S. Sentencing Commission found that the number of federal cannabis possession sentencings dropped substantially in recent years, from 2,172 in the fiscal year 2014 to only 145 offenders in the fiscal year 2021. For the 70.1% of cannabis possession offenders who received a sentence of imprisonment in the last five fiscal years, the average prison sentence imposed was five months. Unfortunately, the report also noted that prior cannabis possession sentences added to an incarcerated person’s criminal history points resulting in longer sentences. Read more here.
Marijuana M&A Moves
There have been a lot of expectations for consolidation in the cannabis industry, so it seems 2023 is already off to a busy start. Today there are three deals to mention from Akerna, LEEF Brands, and Wee-Cig. Read more here.
Cobb Launches Sunburn
Earlier this month, Brady Cobb rolled out some of the first of 11 dispensaries his company Green Sentry Holdings bought from MedMen (OTC: MMNFF) for $63 million in August. All of the stores will be rebranded as Sunburn Cannabis by the end of the first fiscal quarter. Green Market Report spoke with Cobb at the launch party for the Orlando storefront. Read more here.
In Other News
Lowell Farms Inc. (OTCQX:LOWLF) has retained Canaccord Genuity Corp. to assist in its ongoing review of strategic alternatives. The Board of Directors has formed a strategic alternatives special committee of independent directors to explore, review and evaluate strategic alternatives that may be available to the Company to maximize shareholder value. The Special Committee will evaluate a full range of strategic and financial alternatives, including, but not limited to, one or more of the following: sale, divestiture, acquisition, or merger that may involve all or part of our business or assets, restructuring, recapitalization or any other strategic transaction that may be identified during our strategic review. Other than as described in this news release, the Company has not made any decisions related to strategic alternatives at this time. The Company cautions that there are no assurances that the evaluation of strategic alternatives will result in the approval or completion of any specific transaction or outcome. The Company does not intend to comment further unless and until the Board of Directors approves a specific transaction, concludes its review of strategic alternatives or determines that further disclosure is appropriate or required.
Cannara Biotech Inc. (OTCQB: LOVFF) announced details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. The Company does not intend to undergo a name change in conjunction with the proposed consolidation. Read more here.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the opening of its Palm Beach Gardens dispensary as well as the expansion of BlueKudu infused chocolate flavors available on Florida retail menus. Beginning on Friday, January 13, Florida patients will have access to two new flavors of BlueKudu artisanal infused chocolates: espresso dark chocolate and caramel milk chocolate. Both flavors will be available for preorder online, in-store, and via statewide delivery. Read more here.
