It’s time for your Daily Hit of cannabis financial news for October 7, 2021.
On the Site
Tilray, Inc. (Nasdaq: TLRY) reported financial results for the first fiscal quarter ending August 31, 2021 with net revenue increasing 43% to $168 million from $117 million in the same time period in 2020. Tilray missed the average analyst estimate for revenue of $172 million according to Yahoo Finance. Tilray said the increase in revenue was driven by a 38% growth in net cannabis revenue to $70 million, net beverage alcohol revenue of $15 million following the SweetWater acquisition on November 25, 2020, and wellness revenue of $15 million from Manitoba Harvest. Still, the company reported an increase in the net losses to $34.6 million from last year’s net loss of $21.7 million. The company met the average earnings estimate from analysts which was for a loss of $0.08 per share. The company noted in its earnings statement that it had a cost-saving synergy of $55 million that was achieved on a run-rate basis to date, with actual cash savings close to $20 million. Tilray also said it was on track for at least $80 million in cost savings from the Aphria and Tilray business combination synergies.
4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) is buying New England Cannabis Corporation (NECC) in a deal valued at $55 million. NECC was founded by luxury home developer Kenneth Stevens of Weston and is a cannabis cultivator based in Holliston, Massachusetts. 4Front said that NECC is expected to be significantly accretive to the its EBITDA expectations for 2022 and will immediately scale 4Front’s presence as a dominant wholesaler and producer in the state.NECC has a fully operational 55,000 sq. ft. licensed cultivation facility that will strengthen 4Front’s expanding footprint in the limited-license state. The acquisition is said to more than double 4Front’s total flower canopy in Massachusetts to over 30,000 sq. ft, with further expansion potential for up to an additional 10,000 sq. ft. of canopy, and will approximately triple 4Front’s kitchen, processing, and distribution space. The NECC facility will supplement the products sold through 4Front’s existing “Mission” dispensaries and will further strengthen the its presence in the Massachusetts wholesale market.
Humble & Fume
After the market closed on Tuesday, Humble & Fume Inc.(CSE: HMBL) reported its financial results for the fiscal 2021 fourth quarter and year ending June 30, 2021. For the quarter, Humble delivered revenue of $19.4 million an increase of 33% from last year’s $14.5 million. The company attributed the increase in revenue to strong sales in the U.S. and Canadian accessories wholesale market. Humble’s accessory lines include some of the highest-rated products like Puffco, Storz & Bickel and Ryot. The company reported that the net loss for the quarter was $88,904, or $0.00 per diluted share, a 99.7% decrease from last year’s net loss of $4.1 million, or $0.08 per share. The company said that the net losses were primarily driven by growth in overall headcount levels primarily to support increased U.S. and Canada sales, higher sales and marketing expense to support brand partnerships and the launch of FUME, and higher freight costs included in the company’s cost of goods sold selling expenses, and higher share-based compensation expense compared to the year-ago period.
In Other News
High Tide Inc. (Nasdaq: HITI) is taking another step towards solidifying itself as a major player within the global e-commerce marketplace for hemp-derived CBD products, by entering into a definitive agreement to acquire 80% of Enigmaa Ltd., operating as Blessed CBD for £9.06 Million and will have a three-year option to acquire the remaining 20% of Blessed at any time.
Flowhub named former Uber General Manager Leandre Johns as Chief Operating Officer (COO). The strategic hire brings key financial and business expertise to Flowhub’s executive team as the company continues to expand alongside the cannabis industry. Flowhub, founded when the first legal adult-use stores opened in Colorado in 2014, created technology to disrupt antiquated systems and replace them with innovative, modern tools that redefine the cannabis space. Like Flowhub’s quest, Uber uprooted a bureaucratic system and reimagined the entire transportation sector with their technology. With Johns on-board, Flowhub will continue to push boundaries with their technology with the ultimate goal of federal legalization.
Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH), a multi-state, vertically-integrated cannabis operator, and Edie Parker, a luxury fashion brand known for its vintage-inspired clutches and handbags, announced the debut of Flower by Edie Parker pre-rolls in Massachusetts. In May, AWH and Edie Parker announced an exclusive wholesale licensing agreement to bring Flower by Edie Parker products to emerging adult-use markets in Massachusetts and Illinois. The coveted West Coast brand first expanded beyond California earlier in March by launching sales in Colorado.