Staff
It’s time for your Daily Hit of cannabis financial news for April 4, 2021.
On the Site
Cansortium
Following the close of the markets on Monday, Cansortium Inc. (OTCQB: CNTMF) released its fourth-quarter and full-year results for 2020. Revenue increased 54% to $14.7 million in the quarter versus $9.5 million for the same time period in 2019. Cansortium also delivered a net loss of $8.4 million in the quarter, an improvement over last year’s net loss of $32.8 million for the same time period.
For the full year of 2020, Cansortium reported its revenue increased 84% to $52.4 million versus last year’s revenue of $28.5 million. This was lower than the company’s forecast of $55 million. Cansortium attributed the difference to the sale of the 2020 Michigan crop that was initially included in its 2020 projection but was delayed to 2021, causing the variance between actual and forecasted. Excluding Michigan operations, revenue was $52 million, which exceeded the company’s projection of $49 million from operations in Florida and Pennsylvania.
Psychedelic
Psychedelic clinic companies have been expanding quickly as more patients are seeking alternatives to traditional prescription drug treatments. Both Field Trip Health and Novamind announced news of their expanding clinics across the country.
Field Trip
Field Trip Health Ltd. (OTCQX: FTRPF) opened its fifth location in the United States in the city of Houston, TX. Located in the River Oaks District, the Houston location is the second Field Trip Health center to open this year. Field Trip also announced that it has entered into leases and has commenced, or will soon commence, construction to build Field Trip Health centers in San Diego, CA, San Carlos, CA, Seattle, WA, Washington DC, and Fredericton, NB.
Novamind
Novamind Inc. (OTC PINK:NVMDF) reported it would open four new Cedar Psychiatry clinics, doubling its network to eight total locations. The expanded capacity from the New Clinics is forecasted to increase Novamind’s patient volume from 20,000 client visits recorded in 2020 to approximately 65,000 client visits anticipated in 2021.
In Other News
Ascend
Ascend Wellness Holdings, Inc. closed its previously announced initial public offering of 10,000,000 shares of its Class A common stock at a public offering price per share of $8.00, for total gross proceeds of US$80,000,000. The shares will commence trading today on the Canadian Securities Exchange, under the ticker symbol “AAWH.U”. The company expects its shares to become quoted on the OTCQX® Best Market operated by OTC Markets Group, Inc. (the “OTCQX”) in the days shortly following the closing of the Offering if approved by OTCQX.
Sundial
Sundial Growers (SNDL) has upped its stake in The Valens Company (VLNCF) to more than 10%, the company said in a statement. Previously, Sundial has owned ~15.5M shares representing ~9.7% of the issued and outstanding common stock on a non-diluted basis as of April 14. Yesterday, the company has spent a total consideration of ~$2.0M to acquire another 538.4K common shares of Valens for $3.663 per share increasing its stake to ~10.1%. The company indicated $2.67 apiece as its average cost base of the common stock at Valens including the new acquisition. Based in Canada,
Jushi
Jushi Holdings Inc. (OTCMKTS: JUSHF ) has closed on its previously announced acquisition of 100% of the equity of Organic Solutions of the Desert, an operating dispensary located in Palm Springs, California, and approximately 78% of the equity of a retail license holder located in Grover Beach, California with the option to acquire the remaining equity in the future. Jushi will be implementing its best-in-class, customer-focused retail approach that includes the introduction of its online reservation ordering platform and express pick-up options at the Palm Springs dispensary. The Company expects to complete the build out of the BEYOND / HELLO™ Grover Beach location in Q3 2021. The two new locations expand Jushi’s footprint beyond its first California dispensary, BEYOND / HELLO™ Santa Barbara, which opened in October 2020. Jushi also plans to add an additional California location in Culver City, which is expected to open by Q2 2022, subject to state and regulatory approvals.
TerrAscend
TerrAscend Corp. (OTCQX: TRSSF), completed its previously announced acquisition of HMS Health, LLC and HMS Processing, LLC, from Curaleaf Holdings, Inc (OTCQX: CURLF) for a total consideration of $27.5 million, comprised of $25.0 million in cash prior to net adjustments and a $2.5 million note which bears 5.0% annual interest, due October 2022. The acquisition is expected to be immediately accretive to TerrAscend on an EBITDA basis.
