The biggest news this week, was well, very big indeed. The Senate passed the 2018 Farm Bill that included language legalizing hemp. The next step is for the House to pass the bill and then on to the President’s desk to be signed.
The bill is very important for the industry because it amends the Controlled Substances Act to reschedule CBD from hemp. It also moved the regulatory authority from the Department of Justice to the Dept of Agriculture. When it comes to farmers, they would now be able to grow the crop for purposes other than “research” and would be able to get crop insurance.
In earnings this week:
Multistate operator Cresco Labs, Inc. (CSE: CL) reported third-quarter revenue of $12.2 million, representing a quarter-over-quarter increase of 51% and a year-over-year increase of 335%. Cresco’s net income nearly doubled from $2.0 million in the previous quarter to $3.9 million. At the end of the quarter, the company had approximately $149.5 million in assets, which included $93.9 million in cash and cash equivalents.
HEXO Corp. (TSX: HEXO) (OTC: HYYDF) reported its financial results for the first quarter of the 2019 fiscal year with gross revenue of C$6.7 million versus last year’s C$1.1 million for the same time period. The revenue figure includes C$5.2 million from legal adult-use cannabis sales during the first two weeks of legalization. Still, the company delivered a net loss of C$14.7 million versus last year’s net loss of C$381,000.
Dixie Brands Inc. (CSE: DIXI.U) reported Revenue of $2,435,000 in the third quarter of 2018, an increase of 110% over last year. However, Dixie delivered a net loss of $2,404,000 for the quarter versus $630,000 for the third quarter of 2017.
Harvest Health & Recreation, Inc. (CSE: HARV) has formed a joint venture with Aina We Would (AWW), LLC for a real estate investment vehicle that plans to provide funding to purchase cannabis-related real estate assets. In addition to a Harvest subsidiary, AWW is made up of two family offices, Aina Advisors LLC and Stadlen Family Holdings, LLC.
Aphria Inc. (TSX: APHA) (NYSE: APHA) continues to forge ahead with its international expansion in Paraguay despite coming under fire from a short seller recently. Last week, Hindenburg Investment Research and QCM released their short report on the company criticizing it for its international dealings.
GTEC Holdings Ltd. (TSXV: GTEC), a vertically integrated cannabis company, announced today that it had been approved for up-listing of trading onto the OTCQB Venture Market. Effective immediately, the company will start trading on the OTCQB under the symbol GGTTF.