tiprankstipranks
Here’s What You Missed in Cannabis This Week
The Fly

Here’s What You Missed in Cannabis This Week

Cannabis firms report earnings as Aurora expands medical cannabis portfolio in Germany

In this week’s "Rising High," The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on cannabis earnings, launches in Germany and a contract award.

CANNABIS EARNINGS: Green Thumb Industries (GTBIF) reported first quarter earnings on Wednesday, with an earnings per share of 4c on revenue of $248.5M, which compared to EPS of 12c on revenue of $242.6M for the prior year period. “Green Thumb’s momentum continues to build in 2023, and I am incredibly proud of our team for their unwavering commitment to creating high-quality products and delivering positive experiences for our patients and consumers,” said CEO Ben Kovler. “Our $185 million cash balance continues to give us the optionality to make investment decisions that will position us for the increasing demand for legal cannabis, a market estimated by analysts to grow to $75 billion over the next decade.”

On Tuesday, Lotus Ventures (LTTSF) reported Q2 EPS of C$0.00 on revenue of C$589,172, which compared to EPS of C$0.00 on revenue of C$370,551 for the same period last year. The company said, “The second fiscal quarter marked a significant milestone in the business evolution of Lotus, as the company proudly launched its own Lotus Cannabis Co.  branded flower in the province of British Columbia.”

Additionally on Monday, Acreage Holdings (ACRHF) reported a Q4 loss per share of (85c) on revenue of $57.5M, which compared to a loss per share of (38c) on revenue of $58.1M for 4Q21. “Over the course of 2022, we completed a number of important initiatives and laid a strong foundation for sustained growth, making way for a transformative shift through our arrangement with Canopy and Canopy USA,” said CEO Peter Caldini. “Despite challenging macroeconomic conditions, we achieved annual growth by focusing our operations and scaling in strategic markets, diversifying our brand and product portfolio, and responsibly restructuring our balance sheet. While our fourth quarter performance was impacted by continued headwinds, we are confident that these actions will better position Acreage for the future amid current market challenges.”

Curaleaf (CURLF) also reported Q4 earnings on Monday with a loss per share of (36c) on revenue of $352.5M, which compared to a loss per share of (10c) on a revenue of $308.7M for the same period last year. CEO Matt Darin stated, "Curaleaf accomplished a great deal last year; we launched 171 new products, introduced three new brands, opened 28 new stores, completed six acquisitions, expanded our European presence with the German market, converted to GAAP accounting, and built out the management team with high caliber talent. Further, we sold over $600 million of our own brands through our own stores, which speaks to the strength of our retail business as a key competitive advantage – our gross margins are strong, we have an unrivaled geographically diverse footprint, and are constantly improving the cannabis customer experience. We are excited about, and well positioned for the future."

Meanwhile on Monday, Entourage Health (ETRGF) reported 2022 revenue C$54.5M, which compares to revenue of C$55.2M in 2021. “Attaining success in the cannabis market requires a two-fold approach, which involves producing high-quality products that foster customer loyalty while also implementing sound financial management practices that enable sustainable business growth," stated CEO George Scorsis. "By adopting an asset-light model, we are focusing on investing in strategic partnerships and executing a strong business plan that prioritizes enhanced efficiency and cost accountability. This approach will enable the Company to focus on its core competencies, establishing a strong brand presence within the constantly evolving cannabis industry.”

AURORA EXPANDS MEDICAL CANNABIS PORTFOLIO IN GERMANY: Aurora Cannabis (ACB) announced Friday the expansion of its portfolio in Germany with the launch of two new cannabis flower products for patients. Pedanios 27/1 FRG CA and Pedanios 29/1 SRD CA are dried cannabis flower with high tetrahydrocannabinol content.

"The addition of these two high-THC products to our German portfolio gives physicians even more options to provide patients individually tailored treatments," says Dr. Axel Gille, President of Aurora Europe. "We are committed to bringing high quality, consistent and innovative cannabis products to our patients in Germany and throughout Europe."

Pedanios 27/1 FRG CA is medical cannabis flower from the Farm Gas cultivar, with a THC content of about 27% and a cannabidiol content of <1%. Pedanios 29/1 SRD CA is medical cannabis flower from the Sourdough cultivar, with approximately 29% THC and <1% CBD.

VILLAGE FARMS LAUNCHES PRODUCTS IN GERMANY: Village Farms International (VFF) announced Thursday the launch in Germany of cannabis products grown by its Canadian cannabis business. The German launch is in partnership with IUVO Therapeutics, an importer, marketer and distributor of medical cannabis for the German market. IUVO expects Pure Sunfarms’ Pink Kush to be available to German patients in the coming days.

“Commencing cannabis product sales in Germany is another meaningful step forward in our international cannabis strategy,” said Michael DeGiglio, CEO. “Robust consumer demand for our differentiated products, led by the same Pink Kush dried flower that will be available to German consumers, drove a ten-fold increase in Village Farms’ cannabis exports to Australia during 2022. Together with Australia and Israel, Germany adds a third international market where we have demonstrated our ability to respond to rigorous testing standards and deliver an exceptional product to medical consumers. Pursuing more profitable export opportunities is an important part of our growth strategy, while we continue to delight Canadian consumers with our consistent, high quality, British Columbia-grown flower.”

DELTA 9 AWARDED GROW POD CONTRACT:  Delta 9 (DLTNF) announced Friday that it has secured a purchase order from a U.S.-based customer for up to 8 of its modular Grow Pods for an integrated pre-licensed cultivation and processing facility in Alabama. The customer has also entered into an agreement with the company whereby Delta 9 will provide services relating to the development of the customer’s cannabis production facility, training, and other services supporting the acquisition of a state integrated facility license. The company anticipates the value of the purchase order and agreement will be approximately $600,000.

“We are delighted to partner on the development of this facility which will house eight of our proprietary and turn-key ‘Grow Pod’ systems,” said CEO John Arbuthnot. “Our turnkey platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking to produce premium quality cannabis products.”

CANOPY GROWTH PRICE TARGET LOWERED: Piper Sandler analyst Michael Lavery lowered the firm’s price target on Canopy Growth (CGC) on Tuesday to $1 from $2 and kept an Underweight rating on the shares. Canopy’s sales trends remain pressured, and Piper’s BioSteel expectations continue to fall, the analyst said. The firm’s analysis of retail sell-through versus shipments suggests retailers may have over 200 days of inventory, a likely drag on near-term shipments.

Additionally on Monday, BMO Capital upgraded Canopy Growth to Market Perform from Underperform with a C$1.70 price target.

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Aleafia Health (ALEAF), Atai Life Sciences (ATAI), Audacious (AUSAF), Avant Brands (AVTBF), Awakn Life Sciences (AWKNF), Ayr Wellness (AYRWF), Body and Mind (BMMJ), Cannara Biotech (LOVFF), Chicago Atlantic (REFI), Clever Leaves (CLVR), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Columbia Care (CCHWF), Cronos (CRON), CURE Pharmaceutical (CURR), CV Sciences (CVSI), Cybin (CYBN), Delic Holdings (DELCF), Fire & Flower (FFLWF), Flora Growth (FLGC), General Cannabis (CANN), BZAM (BZAMF),Greenlane (GNLN), GrowGeneration (GRWG), Goodness Growth (GDNSF), Hemp (HEMP), HEXO (HEXO), High Tide (HITI), India Globalization Capital (IGC),  Indiva (NDVAF), Innovative Industrial Properties (IIPR), InterCure (INCR), IM Cannabis (IMCC), Wellbeing Digital (KONEF), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), MediPharm Labs (MEDIF), MedMen (MMNFF), NewLake Capital (NLCP), Organigram (OGI), Planet 13 (PLNHF), Reunion Neuroscience (REUN),  Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), Safe Harbor (SHFS), Small Pharma (DMTTF), SNDL (SNDL), Sproutly (SRUTF), Skye Biosciences (SKYE), Stem Holdings (STMH), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Tryp Therapeutics (TRYPF), Trulieve (TCNNF), Verano (VRNOF), Wesana Health (WSNAF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).

Keywords: cannabis, weed, stocks, marijuana, cultivation, legalization, CBD, THC, hemp, psychedelics, ketamine, psilocybin, LSD, MDMA

Published first on TheFly

See the top stocks recommended by analysts >>

Read More on RLMD:

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles