ACREAGE HOLDINGS GROWS REVENUE 487%: On Tuesday, Acreage Holdings (ACRGF) reported first quarter revenue of $12.9M, up 487% compared to the same period, and pro forma adjusted net loss of $15.5M. “I am pleased with the progress we made toward increasing our national footprint and particularly our expansion in the western United States. Our revenues grew by 487% compared to the first quarter of 2018, despite delayed dispensary openings caused by local regulators in both Massachusetts and Ohio,” said CEO Kevin Murphy. “We do not expect these delays to impact our long-term ability to generate industry-leading returns. Additionally, we expect our arrangement agreement with Canopy Growth will provide us the ability to rapidly accelerate our growth plan as the transaction makes us the most attractive partner in U.S. cannabis.”
ORIGIN HOUSE REPORTS Q1 EARNINGS: On Wednesday, Origin House (ORHOF) reported Q1 revenue of $11.2M, which compares to revenue of $0.6M for the same period last year. The company also posted adjusted EBITDA loss of $12.7M which compared to loss of $0.9M in 2018. CEO Marc Lustig said, "This was a milestone quarter for Origin House, as the team drove solid organic growth within our Californian distribution and brands platform and completed meaningful strategic merger and acquisition-based initiatives including the addition of 180 Smoke in Canada. Moving forward through the balance of the year, we are confident that, once completed, the combination of Cresco Labs' scale and Origin House's California-wide distribution footprint will further accelerate growth and build significant value for the shareholders of both companies."
MEDMEN POSTS Q3 REVENUE INCREASE: On Wednesday, MedMen Enterprises (MMNFF) reported Q3 revenue of $36.6M, an increase of 22% sequentially and 156% year-over-year. The company also reported an adjusted EBITDA loss of $42.6M, a decrease of 3% sequentially, and a net loss of $63.1M, or 20c, compared to a net loss of $64.6M, or 25c per share, in Q2. “Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said CEO Adam Bierman. “We continue to march onward towards profitability. The biggest driver for this phase of the business remains revenue, which continues to increase significantly with new store openings and same store sales growth. Where we are impressively ahead of schedule is in leveraging our scale to create greater operational efficiencies across the organization. Execution keeps improving while corporate SG&A is decreasing.”
ANALYST STARTS APHRIA AT BUY: Jefferies analyst Owen Bennett initiated coverage of Aphria (APHA) with a Buy rating and C$15 price target in a Friday research note. The analyst said the company scores highly on his "strategic scorecard," or third overall behind only Canopy Growth (CGC) and Aurora Cannabis (ACB). Despite a "strong global outlook," Aphria's valuation is the cheapest across the space, with allegations around inflated assets/insider deals weighing on the shares, Bennett said. The analyst expects a "significant re-rating" in the shares with "these issues now seemingly cleared up." He pointed out that the company's questionable relationships have been severed and a special committee review found assets had not been falsely inflated. Bennett believes Aphria continues to execute and that its valuation is "not reflective of reality."
CANOPY GROWTH UNIT LICENSED BY HEALTH CANADA: Les Serres Vert Cannabis, a subsidiary of Canopy Growth (CGC) and a portfolio company of Canopy Rivers, announced Tuesday it has received its final cultivation license from Health Canada. All 700,000 sq. ft. of operating space at Vert Mirabel is now licensed for cannabis production. The license for Vert Mirabel increases the facility's growing space by 190,000 sq. ft. and brings Canopy Growth's total Canadian licensed production footprint to approximately 4.6M sq. ft.
OTHER CANNABIS STOCKS: Publicly-traded companies in the space include Tilray (TLRY), KushCo (KSHB), Innovative Industrial Properties (IIPR), Cronos Group (CRON), MediPharm Labs (MLCPF), CV Sciences (CVSI), CannTrust Holdings (CNTTF), General Cannabis (CANN), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), Elixinol Global (ELLXF), Planet 13 Holdings (PLNHF), Wayland Group (MRRCF), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), Sunniva (SNNVF), Sproutly (SRUTF), DionyMed Brands (HMDEF) and GrowGeneration (GRWG).
"Rising High" is The Fly's recurring series focused on cannabis stock news.
Acreage Holdings
+ (+0.00%)
Origin House
+ (+0.00%)
MedMen
+ (+0.00%)
APHA
+
Canopy Growth
+0.56 (+1.32%)
Aurora Cannabis
+0.05 (+0.62%)
Tilray
+0.36 (+0.88%)
KushCo Holdings
+ (+0.00%)
Innovative Industrial Properties
+1.7 (+2.08%)
Cronos Group
+0.18 (+1.18%)
Changed to MEDIF
+ (+0.00%)
CV Sciences
+ (+0.00%)
CNTTF
+
Trees Corporation
+ (+0.00%)
IGC Pharma
+0.065 (+5.83%)
ICC International Cannabis
+ (+0.00%)
ORTFD
+
INDIVA
+ (+0.00%)
Organigram
+ (+0.00%)
Elixinol Global
+ (+0.00%)
Planet 13 Holdings
+ (+0.00%)
Wayland Group
+ (+0.00%)
Khiron Life Sciences
+ (+0.00%)
Liberty Health Sciences
+ (+0.00%)
Sunniva
+ (+0.00%)
Sproutly
+ (+0.00%)
HMDEF
+
GrowGeneration
+ (+0.00%)