The state of Colorado reported that In 2018, marijuana revenue came in at $266.5 million. This compares to $247 million in 2017.
On Wednesday this week, Congress held a hearing on banking services for the cannabis industry. This is the first hearing to be held by the new Congress that will begin tackling the issue of banking for cannabis companies.
This week, we got earnings from Aurora Cannabis and Canopy Growth.
Canopy Growth Corp. (CGC) reported earnings after the market close on Thursday. Net income for the quarter was $74.9 million compared to a net income of $11.0 million for the same time period during last year. Net revenue increased 282% to $83 million over last year’s $21.7 million for the same time period. Total gross revenue increased 350% to $97.7 million. The company reported that the adjusted EBITDA in the third quarter fiscal 2019 amounted to a loss of $75.1 million compared to a loss of $5.7 million in the same period last year. The net loss per diluted share was $0.38.
Aurora Cannabis (ACB) reported that its net revenue rose 363% to $54.2 million over last year’s $11.7 million. However, losses jumped a whopping 3,179% to $237 million versus last year’s gain of $7.7 million for the same time period. The company said in a statement that “Non-cash expenses including the December 31, 2018 mark-to-market adjustments of approximately $190 million primarily on the company’s derivative investments contributed significantly to a net loss of $240 million.”
The San Francisco-based cannabis dispensary chain, The Apothecarium, has been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Included in the purchase are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.
Green Growth Brands Inc. or GGB (OTCQB: GGBXF) entered into an agreement to gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG). GGB will expand its chain of CBD shops under the Seventh Sense Botanical Therapy. Simon is the biggest mall operator in the country.
Barney’s New York Inc. is opening a luxury cannabis store at its Beverly Hills store next month. Bloomberg reported that the luxury store known for its cutting edge fashion will open a department called “The High End.” And is partnering with Beboe on the effort. Since Barney’s isn’t a licensed dispensary, it will be limited to selling cannabis accessories like pipes, rolling papers, and stash boxes.
The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) reported a 359% increase in revenue to $7.72 million for the second quarter. This was a 50% sequential increase over the first quarter. The company trimmed its losses by delivering a net loss for the quarter of $1.55 million versus a loss of $2.03 million for the same time period last year.