William Sumner
It’s time for your Daily Hit of cannabis financial news for May 29, 2019.
On the Site
Acreage Holdings
Acreage Holdings, Inc. (ACRG-U.CN) (ACRGF) reported financial results for the quarter ending March 31st, 2019 with revenue rising 487% to $12.9 million, but the company also delivered a whopping net loss of $31.2 million. Looking at pro forma results, the revenue would have been $33.1 million and the adjusted net loss would have been $15.5 million.
Special Report: Current Issues in Marijuana Regulation – Veterans Struggle to Gain Access to Medical Marijuana
Thirty-three states and the District of Columbia have enacted medical marijuana programs. Despite this expansion military veterans often face greater obstacles to gaining access to medical marijuana than other groups.
Another Delay for New Jersey Cannabis Legalization
An ongoing political saga took another unpredicted turn this month. After over a year of building momentum, hopes for a legislative vote on legalizing the adult-use of recreational cannabis have once again faded.
In Other News
Charlotte’s Web Holdings
Charlotte’s Web Holdings, Inc. (CSE: CWEB) (OTCQX: CWBHF) announced that it has received conditional approval to list its common shares on the Toronto Stock Exchange (TSX). The company anticipates that it will begin trading as of market open on May 31, 2019. As part of its listing on the TSX, the company will delist its stock on the Canadian Securities Exchange at the close of the market on May 30, 2019. “As the market leader in hemp CBD extract products, we are very proud to be the first US-based hemp company to receive a senior listing on a major exchange such as the TSX,” said Joel Stanley, Chairman and Co-Founder of Charlotte’s Web. “The TSX is Canada’s most senior exchange and a tremendous validator of our company’s corporate governance and evolution.”
Origin House
Origin House (CSE: OH) (OTCQX: ORHOF) released today their financial results for the first quarter of 2019. Revenue for the quarter was $11.2 million, the gross margin was $1.7 million, and adjusted EBITDA was $12.7 million. As of March 31, 2019, the company had $39.3 million in cash and approximately $269.4 million in assets. On Jun 11, 2019, Origin House will hold a special shareholders meeting regarding Cresco Labs Inc.’s previously announced acquisition of all of the company’s issued and outstanding shares.
TREC Brands
TREC Brands Inc. announced the launch of two brands, WINK and Blissed, and a $10 million private placement. Blissed is a female-focused cannabis oil brand and WINK is TREC’s second luxury cannabis brand. “We are proud of the premium nature of our organization and our actions to create an industry-wide movement around community support,” says Trang Trinh, CEO, TREC Brands. “With Blissed, the goal is to uplift the modern woman through education and content that complements her lifestyle, while giving back to causes in her neighborhood that matter.”
MedMen Enterprises
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) today released their financial results for the third quarter for the 2019 fiscal year. Revenue rose by 22% to $36.6 million. The gross profit margin after biological asset adjustment was 53.7%. For the quarter, the company reported an adjusted EBITDA loss of $42.6 million and a net loss of $63.1 million. “Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said Adam Bierman, MedMen co-founder and chief executive officer. “We continue to march onward towards profitability.”
