Kaitlin Domangue
It’s time for your Daily Hit of cannabis financial news for November 11th, 2020.
On the Site
Harvest Health Touts Arizona Potential During Earnings Call
Harvest Health & Recreation Inc. (OTCQX: HRVSF) reported its financial results for the third quarter of 2020 after the market closed on Tuesday with revenue rising 86% to $61.6 million. This was a sequential increase of 11% compared to $55.7 million in the second quarter of 2020. Harvest Health expects to be a huge part of Arizona’s adult-use cannabis market, which was just voted into effect in the 2020 elections.
Aleafia Revenue Is Flat, Says Sales Set To Improve
Aleafia Health Inc. (OTC: ALEAF) reported its financial results for the quarter ending September 30, 2020, with net revenue of $4.9 million and revenues were flat from the quarter ending in 2019.
“We expect to have our strongest quarter to date in Q4 2020 as we progress towards significant sequential growth in medical, adult-use, wholesale and international cannabis sales. The strategic path we’ve executed upon, from building out facilities, to receiving three major licenses in 2020, to formulating new products, is now bearing fruit. With the introduction of vape cartridges, sublingual strips, and with many more launches to come, the commercialization of our business at scale is truly in full swing,” said Aleafia Health CEO Geoffrey Benic
Survey shows 75% of veterans are interested in cannabis
According to a 2019 survey conducted by Iraq and Afghanistan Veterans of America (IAVA), 75% of military veterans say they’d consider using either “cannabis or cannabinoid products as a treatment option.” 83% of respondents expressed their support for medical cannabis access, while 63% of participants believe that the Department of Veterans Affairs should “allow for research into cannabis as a treatment option.”
In Other News
Grow Generation Reports Q3 Earnings Results
Grow Generation is a specialty garden center with 31 locations across 11 US states. The company recently released their third quarter earnings, and reports that, “Revenues rose 153% to $55.0 million, for third quarter 2020, versus $21.8 million for the same period last year.” The company’s gross profit margin for Q3 was 26.5%, compared to 29.9% in the same quarter last year. The company’s online sales increased by 112% year over year.
Sundial Reports Third Quarter Earnings Results
According to the press release, “Branded net cannabis sales increased to 77% of total cannabis sales from 69% in the previous quarter as Sundial continues to transition from reliance on wholesale to branded retail sales, and “Net cannabis revenue for the third quarter of 2020 was $12.9 million, a decrease of 36% over the second quarter of 2020 due primarily to focus on branded retail sales.”
“While our third quarter revenue decreased, we are pleased with the demonstrated improvement in operating discipline, successful cost optimization initiatives and a material reduction of our debt,” said Zach George , Sundial’s CEO. “Following the announcement of our financial restructuring in June of this year, we have accelerated improvements in our operating practices targeting a sustainable cost structure and a simplified business model that will better enable us to focus on delighting consumers.”
