Video Staff
The big news this week was that California cannabis retailer MedMen began trading on the Canadian stock exchange (MMEN) . The company has a billion valuation, which has come under some criticism for being a bit frothy as compared to the current state of revenues. However, the company hasn’t reported any earnings since before the California stores came online so that picture could change quickly once the market sees those sales numbers. The stock has fallen 23% since it began trading and has endured withering comments from a site called equity guru as well as from many of the better-known marijuana stock traders.
There were some earnings out this week.
Golden Leaf Holdings (GLDFF) said first-quarter revenue soared, thanks to its 2017 acquisition of Chalice Farms and highlighted the progress it’s making in expanding its cannabis operations in California. Golden Leaf said its revenue jumped 42 % year-over-year to $3.2 million. It also generated $353,000 in gross profit, up from $238,000 in the year-ago quarter.
Emblem Corp. (EMMBF) reported that its revenues for the first quarter increased 41% to $1,277,000 in Q1 2018 from $903,000 in Q1 2017. Gross profits increased 304% to $182,000 compared to a gross loss of $89,000 for the same time period in the previous year.
Sunniva (SNNVF) released its financial results with $5.2 million in revenue from its two subsidiaries, Natural Health Service Ltd. and FSD, which contributed $2.7 million and $2.5 million, respectively. Net loss for the period ended March 31, 2018, was $6.3 million as compared to $1.0 million during the period ended March 31, 2017.
Hiku (HIKU) reported revenue for the first quarter and it was relatively small, totaling C$246,143. The vast majority of that revenue was gobbled up by the retail cost of sales, which totaled C$202,431. The company managed to squeak out a gross profit of C$15,554. Overall, Hiku posted a net loss of $9.1 million for a loss per share of eight cents versus last year’s loss per share of one cent.
On The Acquisition Front
Canopy Growth Corporation (CGC) is staking a claim in the African medical cannabis market. On May 30, 2018, the company announced that it has acquired Daddy Cann Lesotho PTY Ltd., which trades under the name Highlands.
And in the research world…..
BMO Capital Markets, a North American financial services provider, has initiated coverage on both Aphria Inc. (APHQF) and Canopy Growth (CGC) with a rating of Outperform.
