The week kicked off with New Jersey making a bold move towards adult use legalization. The state approved proposals in the Senate and Assembly with the next step to send to the full chambers for a vote. The market is estimated to bring in $300 million in additional tax revenues for the state.
We got some new stocks to trade this week. Dixie began trading on the Canadian Securities Exchange this week using the symbol DIXI. Grown Rogue also began trading on the CSE with the symbol GRIN.
It was a busy week for earnings.
(Editors Note – Following the taping of Marijuana Money on Thursday, the market saw major earnings releases from MedMen and Acreage Holdings. In order to produce this video for Friday, it must be written and taped in advance. In some cases this means major news can occur afterward.)
KushCo Holdings (KSHB) said its revenue jumped 177% to $52 million. The net loss, including $1.0 million in depreciation expense, was $23.9 million in SG&A, and $1.6 million in provisions for income tax, was approximately $10.2 million compared to net income of $69,000 in fiscal 2017.
MedMen Enterprises (MMEN) (MMNFF) reported that its fiscal year 2019 first-quarter revenue grew 1,094% to $21.5 million over last year’s $1.8 million for the same time period. Still, the company reported a net loss of $66.5 million, or a loss of $1.42 per share, a dramatic increase over last year’s loss of $5.7 million for the same time period. This was a slight improvement over the net loss of $78.7 million for the fourth quarter last year.
Acreage Holdings Inc. (CSE: ACRG.U) announced its unaudited financial results for the third quarter, which ended on September 30, 2018. Acreage reported quarterly revenue of $5.5 million, representing a 160% increase when compared to the same period in the previous year. The company’s year-to-date revenue increased by 92% to $10.6 million. The company’s net loss increased from $0.7 million in the third quarter of 2017 to $4 million.
Charlottes Web (CWEB) which delivered revenue of $17.7 million. Net income fell slightly to $1.8 million, but gross profits increased 54% to $13.8 million.
Green Thumb Industries (GTII) reported that its revenue jumped 344% to $17.2 million, but the company delivered a net loss of $3.3 million.
GW Pharmaceuticals (GWPH) reported that its revenue declined to $2.4 million missing analysts estimates for $2.9 million. The company also reported a net loss of $79 million. It wasn’t all bad because at the beginning of the week GW Pharm also said it had positive study results on a phase 3 trial for Epidiolex.
Canopy Rivers (CNOPF) recorded a net income in the quarter of $10.9 million.
MJardin’s (MJAR) revenue increased 65% to $7 million with a net loss of $400k.
Sunniva reported revenue of $3.8 million, but a net loss of $6.7 million.
In financial moves, Cura Cannabis Solutions raised $75 million in a private placement.
Altitude Investment Management closed its fund after raising $30 million with plans for a second fund to raise $100 million.
Green Gotham invested $15 million in LA’s The High Note.
