It’s time for you Daily Hit of cannabis financial news for May 14, 2019.
On The Site
Tilray, Inc. (Nasdaq: TLRY) reported that its net loss for the quarter was $30.3 million or $0.32 per share compared to a loss of $5.2 million or $0.07 per share for the prior year period. Even though the revenue increased by 195.1% to $23.0 (C$31.0) million, versus last year’s $7.8 million – it was less than the net loss. The non-GAAP adjusted net loss for the quarter was $25.2 million or $0.27 per share for the first quarter of 2019.
The company attributed the increase in revenue to the legalization of Canadian adult-use in 2018 and the addition of hemp food sales from the Manitoba Harvest acquisition. Tilray attributed the rise in net losses to non-recurring acquisition-related charges. The company reported that the adjusted EBITDA grew to a loss of $14.6 million versus last year’s loss of $3.2 million for the same time period. period.
Columbia Care Inc. (NEO: CCHW) reported revenue of $12.9 million for the first-quarter of 2019, an increase of 45% over last year’s $8.8 million. The net loss of $25.1 million increased over last year’s loss of $9.7 million for the same time period. The company attributed the increase to its investment in its growth initiatives.
The adjusted EBITDA of ($10.4) million compared to ($2.3) million for the prior year period, reflected the company’s new market expansion, pre-opening facility expenses, organizational growth and expenses related to Columbia Care’s becoming a publicly traded company. Luckily the company is sitting pretty on pro-forma cash of $169.6 million including proceeds from the closing of the company’s go-public transaction on April 26, 2019 with zero debt.
Hemptown Organics Corp. raised C$24 million in a round of financing from Canaccord Genuity Corp. who served as the lead agent on the brokered portion of the financing on behalf of a syndicate of investors that included Sprott Capital, Beacon Securities, and Pacific International.
The investment will allow Hemptown to embark on a multi-state expansion, purchase $5.5M in Oregon CBD seeds, begin the build-out of its processing and extraction facilities, research team, as well as planting and harvesting of its 2019 crop of feminized hemp seeds.
CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.
The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.
Surna Inc. (OTCQB: SRNA) reported revenue of $1,771,000 for the first quarter versus $2,055,000 for Q1 2018, a decrease of $284,000, or 14%. The company also noted that its fourth-quarter 2018 revenue was $2,195,000, representing a quarter-over-quarter decrease of $424,000, or 19%.
GrowLife, Inc. (OTC: PHOT) reported a 216% increase in revenue for the second quarter to $2,244,279 from $708,936. Still, the company reported a net loss of $2.3 million, an improvement over last year’s loss of $4.2 million for the same time period.
Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.
In Other News
SLANG Worldwide Inc. (CNSX: SLNG) entered into an agreement to acquire LBA Global Corporation and its Lunchbox Alchemy brand portfolio and subsidiary Hydra Distribution. The proposed transaction will bolster SLANG’s position in the Pacific Northwest by adding a complementary portfolio of top-selling products in Oregon and California and robust supply chain and distribution capabilities. The acquisition price was not disclosed.
Aphria Inc. (TSX: APHA and NYSE: APHA announced several new executive appointments including James Meiers to the role of Chief Operating Officer, Aphria Leamington, Tim Purdie as Chief Information Officer & Chief Information Security Officer, and Maureen Berry as Vice President, Corporate Human Resources.