TDR’s Top 7 Cannabis Developments For The Week Of November 6
Welcome to TDR’s review of the Top 7 Cannabis Developments for the week of November 6. Aside from presenting a synopsis of news events, interviews and closing market prices for publicly-listed companies.
Canopy Growth Corporation announced its financial results for the second quarter ended September 30, 2023. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
- Canadian cannabis business delivered its third consecutive quarter of organic revenue growth while significantly reducing costs
- Achieved Q2 FY2024 net revenue of $70 MM. Consolidated gross margin was 34% in Q2 FY2024, compared to (1%) in Q2 FY2023
- Delivered additional cost reduction of $54 MM in Q2 FY2024, bringing the total cost reduction to $226 MM since the beginning of FY2023.
- Reduced overall debt by $364 MM to $681 MM in Q2 FY2024
Trulieve Cannabis announced its results for the quarter ended September 30, 2023. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding. Financial highlights include:
- Generated cash flow from operations of $93 million and free cash flow of $87 million
- Reduced debt with purchase of $57 million of 2026 notes and announced redemption of $130 million of 2024 notes, resulting in $20 million in interest savings through maturity
- Expect 2023 operating cash flow of at least $100 million and free cash flow of at least $70 million
Curaleaf Holdings reported its financial and operating results for the third quarter ended September 30, 2023. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars unless otherwise indicated. Key highlights are as follows:
- Net Revenue of $333.2 million excluding $3.5 million from discontinued operations, a year-over-year increase of 2% compared to Q3 2022 revenue of $325.8 million
- Gross profit of $150.1 million and gross margin of 45%
- Net loss, including discontinued operations, of $92.3 million or net loss per share $0.13
- Adjusted EBITDA of $75.3 million or 23% of revenue
- Cash at quarter end totaled $118.1 million
- Free cash flow from continuing operations of $33.4 million
Chart Of The Week—Cannabis Rescheduling Should Be A No-Brainer
Podcast Of The Week—Canopy, TerrAscend, and Curaleaf’s Latest Earnings
Widely Held MSOs & LP Weekly Performance
|Company||Symbol||Previous Week Close||End Of Week Close||% Change On Week|
|AdvisorShares Pure Cannabis ETF||MSOS||5.88||6.55||11.39|
|Green Thumb Industries||GTBIF||9.10||9.79||7.58|
|High Tide Inc.||HITI||1.51||1.28||-15.23|
Shares of Organigram Holdings Inc. rose almost 19 per cent after it says BAT signed a deal to increase its stake in the cannabis company by investing $124.6 million.
The company says it plans to use $83.1 million of to create a strategic investment pool to help grow its geographic footprint and invest in emerging growth opportunities. The rest of the money will be will be used for general corporate purposes.
Under the proposal, which is subject to regulatory and Organigram shareholder approvals and other conditions, BAT has agreed to buy 38,679,525 common shares and non-voting class-A convertible preferred shares over three tranches.
In the news…
1CM Inc. provided a corporate update with respect to its development and operations.
7 in 10 Americans think cannabis use should be legal, the highest level yet after holding steady at 68% for three years.
Allied Corp has signed an agreement with an EU-GMP certified partner in Portugal that will enable Allied to be able to offer Colombian produced flower with the EU-GMP (Good Manufacturing Practices) approved certifications.
Ascend Wellness Holdings reported its financial results for the three months ending September 30, 2023. Financial results are reported in accordance with U.S. generally accepted accounting principles.
Aurora Cannabis released its financial and operational results for the second quarter of fiscal year 2024 ending September 30, 2023.
AYR Wellness announced the opening of two Ohio retail locations in Woodmere and Goshen. The Woodmere store opens today and the Goshen store is expected to open later this week.
Canadian cannabis industry is on pace to see a record number of federal licenses revoked this fiscal year, largely at the request of the companies themselves, according to new data from Health Canada.
Cannabix Technologies, developer of breath testing devices for law enforcement and the workplace, reports that it has completed preliminary third-party testing on its Contactless Alcohol Breathalyzer.
Cansortium Inc. announced that the Company has issued an aggregate of 1,184,207 common shares to certain of its directors in exchange for the cancellation of US$112,500 of director fees owing for the period of July 1, 2023 to September 30, 2023.
Charlotte’s Web Holdings reported financial results for the third quarter ended September 30, 2023.
Cronos Group announced its 2023 third quarter business results.
Flora Growth reported its financial and operating results for the three and nine months ended September 30, 2023.
Former FDA official says he’d be ‘shocked’ if the DEA doesn’t reschedule cannabis by the 2024 election.
German lawmakers debate marijuana legalization proposal in committee hearing, with final vVote scheduled later this month…
GOP presidential candidate Vivek Ramaswamy says he voted against legalizing marijuana in Ohio.
iAnthus Capital Holdings reported its financial results for the third quarter ended September 30, 2023.
IM Cannabis Corp. will report operational and financial results for the second quarter ended September 30, 2023, on Monday, November 13, 2023 before the market opens.
IntelGenx Corp. announced that it and Tilray Brands Inc. have entered into a further amendment to their November 2018 license, development and supply agreement for the co-development and commercialization of cannabinoid-infused VersaFilm products, settling IntelGenx’s arbitration claim against Tilray.
Jones Soda Co. announced its financial results for the third quarter ended September 30, 2023.
Lowell Farms will report its financial and operational results for the third fiscal quarter (ended September 30, 2023) before the market opens on November 14, 2023.
MariMed Inc. announced its financial results for the third quarter ended September 30, 2023.
Marijuana legalization would add $260M to Ohio economy, study predicts.
MediPharm Labs will release its third quarter financial results for the three and nine month periods ended September 30, 2023, before markets open on Tuesday, November 14, 2023.
NewLake Capital Partners announced its financial results for the third quarter ended September 30, 2023. The company repurchased 608,152 shares of common stock during the third quarter 2023, bringing total shares repurchased to 713,831 for the first nine months of 2023.
Nova Cannabis released its unaudited condensed interim consolidated financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2023.
Organigram Holdings Board of Directors announced that Derrick West has informed Organigram that he will transition away from his role as Chief Financial Officer in order to take time to focus on his health and recovery following surgery later this month.
Organigram CEO Beena Goldenberg joined BNN Bloomberg to discuss the Canadian cannabis player receiving $124.6M from BAT.
Pennsylvania: Ohio’s vote to legalize marijuana at the ballot on Tuesday could help grease the wheels, though. Both the governor’s office and a key senator who’s championed legalization say it’s time to act.
Planet 13 Holdings announced its financial results for the three-month period ended September 30, 2023.
Study: Emergency department is diagnosed with cannabis use disorder (CUD) is nearly 50 percent lower in states that have legalized marijuana compared to non-legal states.
TerrAscend Corp. with a strong Q3 2023 financial report…
Trulieve Cannabis has issued a notice of redemption for all of its outstanding 9.75% senior secured notes due 2024. The aggregate principal amount of the Notes currently outstanding is US$130,000,000. As set forth in the notice of redemption, the redemption date will be December 1, 2023.
Verano Holdings announced its financial results for the third quarter ended September 30, 2023, which were prepared in accordance with U.S. Generally Accepted Accounting Principles.
Village Farms International announced its financial results for the third quarter ended September 30, 2023.
Virginia election forecast predicts that Democrats are likely to win control of both chambers of the legislature on Tuesday—a result some advocates believe could open the door for lawmakers to legalize retail cannabis sales in the state.
Green Thumb Industries unveiled its financial performance for the third quarter ending September 30, 2023.
The third quarter saw GTI rake in an impressive revenue of $275 million, representing a remarkable 9% increase on a year-over-year basis, although it was down from $282 sequentially. GAAP net income for the third quarter reached $11 million, translating to $0.05 per basic and diluted share. The latter figure was comparable to the previous quarter on a sequential basis.
Adjusted EBITDA for the third quarter totaled $83 million or 30% of revenue. This highlights Green Thumb’s efficiency in managing expenses and maximizing profitability.
Opponents of a petition to decriminalize recreational pot in Florida found a hostile state Supreme Court bench Wednesday in a case with big implications for the cannabis industry, Florida election law, and next year’s elections.
Though all seven justices were appointed by Republicans, the bench reserved tough questions—and outright disagreement—for the state attorney general and state chamber of commerce opponents of a petition to decriminalize marijuana. In the case that could narrow how ballot groups change state policy the justices pushed back against arguments that a “single-subject rule” for ballot measures shouldn’t both decriminalize and allow the sale of cannabis.
Ohio voters approved a ballot initiative to legalize marijuana on Tuesday, making the state the 24th in the U.S. to end prohibition.
The measure, campaigned for by the Coalition to Regulate Marijuana Like Alcohol (CTRMLA), establishes a regulatory framework to allow adults 21 and older to purchase, possess and cultivate cannabis. Recent surveys signaled it was in a strong position to pass—in spite of opposition from the governor and GOP state lawmakers.