It’s time for your Daily Hit of cannabis financial news for April 15, 2019
On The Site
Aphria Inc. (TSX: APHA) (NYSE: APHA) reported its results, for the third quarter ending February 28, 2019. The company delivered net revenue of $73.6 million up 240% from the prior quarter and 617% from the prior year. Still, the company reported a net loss of $108 million versus last year’s net income of $12 million for the same time period.
The company issued a separate press release and said it continues to recommend that Aphria shareholders reject the Green Growth Brands (GGB) Offer and to not tender Aphria shares to the GGB Offer. Simon said, “We plan to use the $89.0 million in proceeds from the transaction to fund our strategic global expansion initiatives. On behalf of our Board of Directors and management team, we continue to recommend that Aphria shareholders reject the GGB offer and do not tender their Aphria shares to the GGB offer.”
Organigram Holdings Inc. (TSX: OGI) (OTCQX: OGRMF) announced its results for the second quarter ending February 28, 2019, with net revenue of $26.9 million, a 693% increase over last year’s net income $3.3 million. The net loss from continuing operations was $6.4 million or $(0.05) per share on a diluted basis versus $1.2 million net income, or $0.01 per share on a diluted basis for the same time period in the previous year.
The adjusted EBITDA of $13.3 million or 49% (of net revenue) was positive for the third consecutive quarter and increased from an adjusted EBITDA loss of $0.3 million in Q2-2018 driven by exponentially higher unit sales.
With 10 states having legalized recreational cannabis and 33 states having legalized medical cannabis, the prospects for increased legal cannabis sales in America this April 20, the original cannabis holiday, are greater than ever.
According to a recent report from Flowhub, a Colorado-based provider of point-of-sale software for dispensaries, with April 20 falling on a Saturday and new consumers continually entering the legal market, this year’s holiday will be the biggest sales day for retailers in 420 history.
Flowhub came to this conclusion by examining the growth of 420 from 2017 to 2018, with cannabis sales on April 20, 2018, growing by more than 30% compared to April 20, 2017.
In Other News
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019. Across the Company’s operations in California, Nevada, New York, Arizona and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%1, compared to 53% in the previous quarter. The company is expected to post its fiscal 2019 third quarter results in May 2019.
Australis Capital Inc. (CSE: AUSA)(OTCQB: AUSAF) is pleased to announce the Company has been approved for DTC eligibility for its common shares traded on the OTCQB exchange under symbol “AUSAF”.
Marijuana Company of America Inc. (OTCQB: MCOA) announced its financial results for the year ended Dec. 31, 2018, as reported in its annual report on Form 10-K. Total revenues of hempSMART products were $252,135 for the year ended Dec. 31, 2018, as compared to $26,830 from the prior year, representing a significant 840% increase year over year. Net loss from operations decreased by 82% from $21,262,798 for the year ended Dec. 31, 2017, to $3,814,949 from the prior year.
INSYS Therapeutics (NASDAQ:INSY) President & CEO Saeed Motahari has resigned. CFO Andrew Long has been promoted to CEO effective immediately. Corporate Controller Andrece Housley has been promoted to CFO. Dr. Venkat Goskonda has been promoted to Chief Scientific Officer.
1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF), a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp-derived CBD wellness products, has executed an exclusive licensing agreement between Gotti’s Gold Ex LLC and Alternative Medicine Association LC, for the launch of Gotti’s Gold in Nevada, a new line of branded cannabis products in partnership with legendary hip-hop artist Kurupt.