In this week's "Rising High," The Fly's recurring series focused on cannabis stock news, The Fly looks back at cannabis earnings, a supply deal and reinstated licenses.
CANNABIS EARNINGS: On Thursday, Cronos Group (CRON) reported second quarter loss per share of (31c) on revenue of $9.9M, which compared to earnings per share of 16c and revenue of $7.7M for the same period last year. The company said the increase year-over-year in revenue was primarily driven by continued growth in the adult-use Canadian cannabis market, sales resulting from the launch of cannabis vaporizers in the Canadian market, including both adult-use and the inclusion of the Redwood acquisition.
On Thursday, MJardin (MJARF) reported Q2 revenue of C$2.1M, which compared to revenues of $6.88M for the same period last year. The company said its managed services business segment generated the revenue and no revenue was recognized from operation at its Canadian cultivation facilities.
On Wednesday, Innovative Industrial Properties (IIPR) reported Q2 adjusted funds from operations of $1.19 per share on a revenue of $24.3M, which compared to an AFFO of 59c and revenue of $8.6M last year. The company said the 183% increase in revenue was driven primarily by the acquisition and leasing of new properties, in addition to contractual rental escalations at certain properties, partially offset by the deferrals of rent from three of IIP’s tenants.
On Monday, Indus Holdings (INDXF) reported Q2 loss per share of (15c) on revenue of $9.89M, which compares to a loss of 24c and revenue of $9.69M last year. The company said as a percentage of revenues, owned brands grew from 55% in the prior quarter to 73% in Q2 while agency brands declined from 29% to 20% and distributed brands declined from 16% to 7% from the corresponding quarters.
APHRIA, CANNDOC ENTER SUPPLY DEAL: Aphria (APHA) announced Tuesday it has entered into a strategic supply agreement with Canndoc, a subsidiary of InterCure. Under the terms of the agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period, with the option to extend for two additional terms of two years each, and an option for an additional year after that if the parties agree to terms. During the first two-year term and each additional term, the company will provide Canndoc with 3,000 kgs. of bulk dried flower, which will be processed into finished product, co-branded under the Aphria and Canndoc brand names and sold exclusively within the Israeli market. The partnership will also include the possibility of Aphria and Canndoc collaborating on research initiatives such as clinical trials focused on medical cannabis.
CANNTRUST LICENSES REINSTATED: CannTrust Holdings (CTST) announced Thursday that it has received notice from Health Canada that the company's licenses for its Vaughan manufacturing facility have been reinstated. Over the past 12 months, CannTrust has been working to resolve regulatory deficiencies within its business. On May 29, 2020, the company confirmed it had received notice of license reinstatement for its Fenwick Perpetual Harvest facility and immediately recommenced cultivation. CannTrust will restart manufacturing operations at its Vaughan facility imminently. With all licenses now reinstated, the company expects to have cannabis products available during the fourth quarter of 2020. The company said, “CannTrust remains under CCAA protection to facilitate the company's efforts to resolve its civil litigation exposures and complete its review of strategic alternatives…In the meantime, the company remains without meaningful revenues and has terminated or laid-off a significant portion of its workforce.”
TETRA TO CREATE EUROPEAN SUBSIDIARY: Tetra Bio-Pharma (TBPMF) announced Thursday that the corporation is set to accelerate its European activities. Tetra has received support from Malta Enterprise and will be creating a subsidiary in Europe to expand its clinical and regulatory activities as well as its future commercial operations for QIXLEEF in Europe. Tetra will open its European office in Malta in Q4. The Malta-based activities will involve regulatory filings with the European Medicines Agency or all of Tetra's investigational new drugs and European-based clinical trial operations. This includes accelerating the Marketing Authorization Application for QIXLEEF in Europe and performing a Phase 3 Plenitude trial.
WEEDMD SIGNS LICENSING DEAL: WeedMD (WDDMF) announced Wednesday it has entered into an exclusive licensing, manufacturing and distribution agreement with MM Technology Holdings, owner of Mary’s Brands and product line Mary’s Medicinals. Under the terms of the agreement, as Mary’s sole Canadian partner, WeedMD will manufacture a suite of Mary’s Medicinals’ products in-house with its own input biomass at its extraction hub CX Industries later this year. WeedMD will also market, sell and distribute Mary’s Medicinals’ products across Canada. Mary’s suite of cannabis products includes transdermal gels and patches and topicals.
OTHER CANNABIS STOCKS: Other publicly-traded companies in the space include Akerna (KERN), Aleafia (ALEAF), Aurora Cannabis (ACB), Auxly (CBWTF), Biome Grow (BIOIF), Canopy Growth (CGC), Canopy Rivers (CNPOF), Cresco Labs (CRLBF), CV Sciences (CVSI), Delta 9 (VRNDF), FluroTech (FLURF), General Cannabis (CANN), Green Thumb Industries (GTBIF), Greenlane (GNLN), GrowGeneration (GRWG), Harborside (HSDEF), HEXO (HEXO), Hemp Inc. (HEMP), India Globalization Capital (IGC), Indiva (NDVAF), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), MediPharm (MEDIF), MedMen (MMNFF), Neptune Wellness (NEPT), Organigram (OGI), Planet 13 (PLNHF), Sproutly (SRUTF), Sunniva (SNNVF), Supreme Cannabis (SPRWF), Valens (VLNCF), Tilray (TLRY), Trulieve (TCNNF), Vireo Health (VREOF), Wayland Group (MRRCF), Wildflower Brands (WLDFF), YSS Corp. (YSSCF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).