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FIRE & FLOWER AND ALIMENTATION COUCHE-TARD ENTER INTO A MASTER LICENSING AGREEMENT
APRIL, 17, 2023
https://investors.fireandflower.com/news/news-details/2023/Fire--Flower-and-Alimentation-Couche-Tard-Enter-Into-a-Master-Licensing-Agreement/default.aspx
Master Licensing Agreement to include an exclusive first right to negotiate entries in additional legal cannabis markets
TORONTO, April 17, 2023 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), a leading cannabis consumer retail and technology platform today announced advancements in the relationship between the Company's strategic partner, Alimentation Couche-Tard Inc. ("Couche-Tard") and Fire & Flower through the completion of a Master License Agreement (the "Master Licensing Agreement") with MC Cannabis Inc., an indirect wholly-owned subsidiary of Couche-Tard.
Overview of the Master Licensing Agreement
Fire & Flower will have the exclusive right of first opportunity to negotiate with Couche-Tard with respect to entering new retail cannabis businesses and franchise arrangements in Canada, as well a potential retail expansion to additional legal cannabis markets outside of Canada.
Couche-Tard has exclusively committed to developing Fire & Flower branded retail cannabis stores in Ontario under the Master Licensing Agreement.
The first five Fire & Flower branded retail cannabis stores will be recently opened co-located stores, adjacent to Circle K convenience stores in the Greater Toronto Area that are currently operating as MC Cannabis Inc. and will be re-branded to Fire & Flower.
Benefits of the Master Licensing Agreement
Leverages Couche-Tard real estate footprint and resources to develop licensee stores.
Gives Fire & Flower the opportunity to expand its system sales, brand presence and the Hifyre™ digital retail platform in Canada and, through the exclusive right of first opportunity, to participate alongside Couche-Tard in a potential expansion to additional legal cannabis markets outside of Canada.
Expands reach of the Spark Perks™ membership program and industry-first Spark Marketplace App.
"With the signing of this agreement, we have achieved another important step forward with our strategic partner, Couche-Tard. We continue to work closely together to build a sustainable growth engine, leveraging Couche-Tard's high quality real estate assets, retail operations expertise and capital, accelerating our path to profitability and goal of free cash flow," shared Stéphane Trudel, Chief Executive Officer of Fire & Flower. "Successful retail is built on delighting our customers with great locations, people and products. Today, we have expanded our ability to grow the Fire & Flower network, in Canada and other international legal cannabis markets by adding this scalable building block that we can further refine together in the first federally legal cannabis market in the world."
"Couche-Tard is pleased to have entered into a Master License Agreement with Fire & Flower. The Hifyre digital retail platform, including the Spark Perks membership program and the Spark Marketplace app, will bring a distinct competitive advantage to our cannabis stores. The current co-located cannabis stores adjacent to Circle K locations and anchored by convenience stores, fuel and car wash offerings are showing growth and we look forward to combining this with the recognized Fire & Flower brand and technology-enabled shopping experience to make it easy for customers," shared Steve Pitts, Vice-President of Operations, Central Canada, of Couche-Tard.
"As we look to markets opening in the United States and Europe, we will work alongside our strategic partner to expand Fire & Flower to international markets," shared Stéphane Trudel, Chief Executive Officer of Fire & Flower.
FIRE & FLOWER LAUNCHES SPARK MARKETPLACE APP: FIRST-OF-ITS-KIND MOBILE CANNABIS MARKETPLACE IN CANADA
MARCH, 30, 2023
Spark Perks™ members can now conveniently place their cannabis order using the app, from any Fire & Flower or Friendly Stranger location or using Firebird Delivery
TORONTO, March 30, 2023 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF) a leading cannabis consumer retailer, and its wholly-owned technology subsidiary Hifyre™ Inc. ("Hifyre"), announced today the launch of the Spark Marketplace mobile app on the App Store for Apple iPhones.
"Spark Marketplace is a big leap forward in simplifying our shopping experience, and engaging with our Spark Perks™ members," shared Matthew Hollingshead, Chief Innovation Officer of Fire & Flower. "Fire & Flower continues to raise the bar when it comes to convenient, best-in-class retail, and we are excited to offer Spark Perks members even more benefits through this industry-leading app."
Benefits of using the Spark Marketplace app include easy access to Member Priced products, early access to new products, special promotions and contests, personalized product recommendations, and live inventory with customer reviews. The new app also allows Spark Perks™ members to access their profiles to re-order products quickly and conveniently, save payment information for future use, and build their basket from anywhere.
Download the app by searching "Spark Marketplace" on your iPhone in the App Store or by visiting https://www.sparkmarketplace.com/.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 90 cannabis retail stores operating in its network through the Fire & Flower™, Friendly Stranger™ and Happy Dayz™, Firebird Delivery™ and Spark Perks™ brands. The Company leverages its wholly-owned technology development subsidiary, Hifyre, to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre digital retail and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, logistics, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory. Fire & Flower also licenses its Fire & Flower™ and Sparks Perks™ brands and Hifyre™ platform to select qualified licensees to operate cannabis retail stores in Canada and the U.S.. To learn more about Fire & Flower, visit https://www.fireandflower.com.
I'm happy someone is enabling Aleafia to stay in business.
Thanks ... An inch at a time ... Aleafia Health Announces New International Partner, Strengthening Connections in High-Potential European Market
New Board Chair Also Named
TORONTO, January 30, 2023 – Aleafia Health Inc. (TSX: AH, OTCQB: ALEAF) (“Aleafia Health” or the “Company”) is pleased to announce that it has signed a new European cannabis distribution partner, representing a one-year, approximately $1 million contract[1], significantly bolstering the Company’s record $1.2 million year-to-date sales in its growing international channel.
“This new announcement is very significant: it builds upon advancements made in August 2022 when the Company revealed a two-year $4.6 million European sales commitment and broadens our international reach,” said Aleafia CEO Tricia Symmes. “The Company is involved in overseas markets because international success leverages both its products and brands, and the addressable European cannabis market is high potential, so this relationship provides another gateway into further European expansion in the medical and potential recreational markets.”
“These international agreements are an important part of our strategic plan for growth and profitability,” said Matt Sale, CFO. “These activities grow revenue, are not subject to excise duties, lock in attractive margins, and improve our overall cash conversion cycle and net working capital performance, continuing to deliver against one of our core sale pillars for FY 2023.”
David Pasieka Replaces Mark Sandler as Aleafia Health Board Chair
The Company also announced that David Pasieka, a director since September 2021, will become its Board Chair, following the January 30th retirement of Mark Sandler, who has served as Chair since July 2021 and is Aleafia Health’s longest serving director having being appointed in 2018. Pasieka, a seasoned public company executive, with extensive formal and board level experience, has served on Aleafia’s FAC and HRC committees and currently serves on the Board of Oakville Hydro / Oakville Enterprise Corporation as well as serving on the Faculty of the Caribbean Governance Institute.
“The Company has been very grateful for Mark Sandler’s counsel and support of the vision for the future as we transitioned from a bulk wholesale cannabis provider into a branded adult-use, medical and international producer. Under his guidance, the Company consistently increased market share, achieved a top 10 standing in multiple formats and markets for Divvy, negotiated the amendment of its $37.3 Million Convertible Debentures while securing a $5.6 million equity financing in June 2022,” said Symmes. “Since becoming CEO in February 2022, I benefited from Mark’s thoughtful insights in our concerted drive toward Adjusted breakeven EBITDA profitability[2], which was achieved two quarters ahead of projections. Now David Pasieka will build on those accomplishments, guiding us to further growth and enhanced profitability.”
For Investor & Media Relations
Matthew Sale, CFO
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
The Company is a federally licensed Canadian cannabis company offering cannabis products in Canadian adult-use and medical markets and in select international markets, including Australia and Germany. The Company operates a virtual medical cannabis clinic staffed by physicians and nurse practitioners which provide health and wellness services across Canada.
The Company owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the largest, outdoor cannabis cultivation facility in Canada. The Company produces a diverse portfolio of cannabis and cannabis derivative products including dried flower, pre-roll, milled, vapes, oils, capsules, edibles, sublingual strips, and topicals.
Cautionary Statement on Non-IFRS Measures
Adjusted EBITDA is not a recognized financial measure under IFRS, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. For additional information including the definition and purpose of the non-IFRS measure, see “Cautionary Statement re Non-IFRS measures” in the Company’s Management’s Discussion and Analysis for the period ended September 30, 2022 found on SEDAR at www.sedar.com.
Forward Looking Information Cautionary Statement
Certain statements herein relating to the Company constitute “forward looking information”, within the meaning of applicable securities laws, including without limitation, statements regarding the value of contracts. Such forward-looking statements involve unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward looking statements include, but are not limited to, statements with respect to our long term profitability, market share, net revenue, branded cannabis net revenue, Adjusted EBITDA, projected value of contracts and other financial outlook projections for fiscal year 2023, our commercial operations, including production and / or sales of cannabis, quantities of future cannabis production, anticipated revenue in connection with such sales, and other Information that is based on forecasts of future results, estimates of production not yet determinable, and other key management assumptions. The following material factors or assumptions were used to develop the forward looking information: Aleafia’s ability to cultivate, harvest and deliver sufficient flower compliant with regulatory and contractual specifications to meet demand, our new European partner will purchase the minimum quantity contractually required to maintain its exclusivity rights, information provided by our new European partner on their future purchasing plans is accurate, our new European customer will comply with its contractual commitments, Euro to Canadian collar currency conversion rates and costs remain stable, market size and growth of the Canadian adult-use and medical cannabis markets and international markets, retail store penetration, script trends, cultivation and processing capacity, costs of production, gross and net revenue per gram. Actual results may differ materially from those expressed or implied by such forward looking statements and involve risk and uncertainties relating to: currency conversion costs, value of foreign and Canadian currencies, future cultivation yield and quality, actual operating performance of facilities, product launches, facility licenses and amendments, average selling prices, cost of goods sold, operating expenses, Adjusted EBITDA, regulatory changes in the Canadian and international markets, and other uninsured risks. The forward looking information was approved by Management as of January 10, 2023. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. The forward looking information is provided for information purposes only and readers are cautioned that it may not be appropriate for other purposes. This presentation is provided for general information purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security in any jurisdiction.
MediPharm Labs Corp. to Acquire VIVO Cannabis Inc.
Two global leaders in the medical wellness cannabis industry expected to combine complementary strengths of diversified revenue in multiple markets and channels to create a pro-forma Combined Company with over $50M in annualized revenue, based on Q3 2022.(1)(2)(3)(4)
Pro-forma Combined Company is expected to have positive EBITDA(5) synergies of between $7M to $9M on an annualized basis within 12 months closing of the Transaction.(1)(2)(3)(4)
Transaction is expected to accelerate MediPharm Labs’ path to profitability, with possibility to reach positive EBITDA(5) and cash flow targeted in the first half of 2024.(1)(2)(3)
BARRIE, Ontario, December 22, 2022 (CISION NEWSWIRE) -- MediPharm Labs Corp. TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm”, “MediPharm Labs” or the “Company”) and VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) (“VIVO”) today announced that MediPharm and VIVO have entered into a definitive arrangement agreement (the “Arrangement Agreement”) whereby MediPharm has agreed to acquire VIVO in an all-equity business combination transaction (the “Transaction”). The Transaction is expected to combine two highly complementary businesses, creating a unique and market differentiating international medical cannabis leader. Upon the completion of the Transaction, existing MediPharm shareholders are expected to own between 65% and 79% of the combined company resulting from the Transaction (the “Combined Company”) and VIVO shareholders are expected to own between 35% and 21% of the Combined Company.
Under the terms of the Arrangement Agreement, holders of common shares of VIVO (“VIVO Shares”) will receive between 0.2110 and 0.4267 common shares of MediPharm (the “MediPharm Shares”) for each VIVO Share held, subject to adjustment (the “Exchange Ratio”). The Exchange Ratio at closing will be determined by the amount of interim working capital of VIVO (the “Interim Working Capital”), taking into account any funds advanced by MediPharm to VIVO up to a maximum of $3.75 million, by way of a promissory note (the “Note”). The Interim Working Capital will allow VIVO to continue operations in the ordinary course throughout the proposed closing period. Holders of VIVO Shares will be entitled to receive such number of common shares of the Combined Company as is equivalent to 35% of the issued and outstanding common shares of the Combined Company (or an Exchange Ratio of 0.4267), which may be reduced depending on the Interim Working Capital of VIVO prior to closing, to a minimum of 21% of the issued and outstanding common shares of the Combined Company (or an Exchange Ratio of 0.2110).(1)
Key Transaction Highlights(1)
Leading Pharmaceutical Cannabis Company: The acquisition of VIVO will add established Australian and German medical cannabis brand Beacon Medical, an industry-leading medical cannabis clinic business Harvest Medicine, and a longstanding Canadian medical sales platform Canna Farms Medical.
Direct to Patient Sales:(1)(3) VIVO’s medical sales channel, Canna Farms Medical, was the first Licenced Producer in British Columbia and has supported over 60,000 patients since 2014.(6) Following the Transaction, it is anticipated that this platform will provide patients with a more diverse product portfolio that includes existing MediPharm products. Direct to patient sales generally result in a better gross margin with the ability to bypass provincial distributors. VIVO’s clinic business Harvest Medicine will allow real-time product feedback and clinical insights on MediPharm products.
Diversified Revenue Profile with Strong Canadian Base: (1)(3) The pro-forma Combined Company is expected to provide fulsome Canadian market coverage with cultivation and manufacturing expertise, and a full suite of dried flower & derivative products with both established medical and adult-use wellness distribution channels.
Expanding International Medical Cannabis Opportunity:(1)(2)(3)(4) The pro-forma Combined Company’s international distribution will cover European and Asia-Pacific markets through established, revenue-generating agreements. The VIVO Napanee Ontario facility is EU-GMP certified for cultivating and packaging flower and the MediPharm Barrie Ontario facility is GMP certified for flower alternative format medical products. With two distinct international platforms, the pro-forma Combined Company is expected to open many new product offerings for existing distribution channels and geographies. The pro-forma Combined Company would have annualized international revenue of over $20M, based on Q3 2022.
Revenue and Cost Synergies Realizable in the Near-Term:(1)(2)(3)(4) Using forecasts derived collaboratively by both management teams, along with revenue and cost synergy estimates, the pro-forma Combined Company aims to find positive EBITDA(5) synergies to the magnitude of between $7M to $9M on an annualized basis, and could reach positive EBITDA and cash flow in the first half of 2024.
Balance Sheet Strength:(1)(2)(3)(4) Anticipated combined cash position of approximately $30 million (as reported September 30, 2022 and including the subsequent sale of MediPharm Labs Australia Pty Ltd.), less than $2.5M in debt on closing, and unencumbered ownership of all major assets. This strength is expected to provide confidence in the Combined Company’s balance sheet to execute on its strategic growth roadmap, despite the macro backdrop of capital markets that continue to soften.
Management Commentary(1)
“MediPharm Labs has been actively pursuing M&A opportunities in the industry since June of 2022. When we first met with the management of VIVO, it was immediately apparent that this was a natural fit from a strategy, values, approach and financial perspective. Both companies have a primary medical wellness vs. recreational focus. Both have a strong history in the medical cannabis sector, investing in GMP production, clinical trials and building diversified medical revenue streams internationally. As many cannabis companies solely focused on the Canadian recreational space, both VIVO and MediPharm saw the future in cannabis wellness products and in pharmaceutical drugs containing cannabis. We were mutually focused on the global opportunities for GMP facilities as international regulations evolved with ever higher quality and regulatory standards. Through this business combination, we have identified the potential for millions in cost and revenue synergies to solidify our leadership for the long term”(1), said David Pidduck, Chief Executive Officer, and Director of MediPharm. “We look forward to expanding our offerings within each others’ respective channels, including medical patients, wellness consumers, and through our respective global partners. We have the chance to offer even more options for individuals using cannabis to potentially improve their quality of life.”
“VIVO has been exploring options to continue its goals of growth and profitability, of being a best-in-class provider of medical cannabis. By leveraging our broad patient base and EU-GMP investments to date and combining our business with MediPharm we achieve just that. In the current capital markets both inside and outside of our industry, capital investment opportunities are extremely limited and we were attracted to MediPharm as a partner given their cash position of over $19.5M, at the end of Q3, and virtually no debt. As a Combined Company we can service the small outstanding amount of VIVO debt, continue international operations and invest in the future to grow the Combined Company and achieve profitability sooner than by going at it alone”, said Ray Laflamme, Chief Executive Officer, and Chairman of the Board of VIVO. “This transaction brings a great opportunity to our employees, shareholders and patients. The clinical trial initiatives at MediPharm with their standardized non-flower pharmaceutical cannabis products align well with our patient-first values and I am excited about the future of what this Combined Company will achieve. Together we are an even stronger, a more diversified and a more credible global medical cannabis player.”
Terms of the Transaction
The Transaction is to be carried out by way of a court-approved plan of arrangement under the Canada Business Corporations Act. The Transaction will require the approval of: (a) (i) two-thirds of the votes cast by shareholders of VIVO, and, if required, (ii) a simple majority of the votes cast by minority VIVO shareholders in accordance with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, at a special meeting of VIVO shareholders expected to take place in the first quarter of 2023 (the “VIVO Meeting”); and (b) a majority of the votes cast by shareholders of MediPharm at a special meeting of MediPharm shareholders expected to take place in the first quarter of 2023 (the “MediPharm Meeting”).
MediPharm has entered into voting and support agreements with each of its directors and officers and each person that, to the knowledge of MediPharm, holds at least 5% of the MediPharm Shares, pursuant to which these parties have agreed, subject to certain rights of withdrawal, to vote in favour of the Arrangement and not to dispose of their MediPharm Shares.
VIVO has entered into voting and support agreements with each of its directors and officers and each person that, to the knowledge of VIVO, holds at least 5% of the VIVO Shares, pursuant to which these parties have agreed, subject to certain rights of withdrawal, to vote in favour of the Arrangement and not to dispose of their VIVO Shares.
Completion of the Transaction is subject to court and regulatory approvals, including the approval of the Toronto Stock Exchange, which are currently expected to be received during the first half of 2023.(1) The transaction is expected to close during the first half of 2023.(1)
The Arrangement Agreement contains certain customary provisions, including covenants in respect of non-solicitation of alternative acquisition proposals for VIVO and a termination fee of $1M payable to either party in certain circumstances. There can be no assurance that any payments will be made with respect of the Note.
Further details with respect to the Transaction will be included in an information circular to be mailed to VIVO shareholders in connection with the VIVO Meeting and to MediPharm shareholders in connection with the MediPharm meeting. A copy of the Arrangement Agreement and information circular will be filed on each of MediPharm’s and VIVO’s SEDAR profiles at www.sedar.com.
Fairness Opinions
The MediPharm board of directors obtained a fairness opinion from Hyperion Capital Inc. on December 21, 2022 (the “Hyperion Opinion”) stating that, as of the date of the Hyperion Opinion and subject to the assumptions, limitations and qualifications contained in the Hyperion Opinion, the consideration to be paid by MediPharm pursuant to the Transaction is fair, from a financial point of view, to MediPharm shareholders. The VIVO board of directors obtained an independent fairness opinion from ATB Capital Markets Inc. on December 20, 2022 (the “ATB Opinion”) stating that, as of the date of the ATB Opinion and subject to the assumptions, limitations and qualifications contained in the ATB Opinion, the consideration to be received by VIVO shareholders pursuant to the Transaction is fair, from a financial point of view, to VIVO shareholders.
Recommendation of the MediPharm Board
The board of directors of MediPharm has reviewed and approved the Transaction. After obtaining the Hyperion Opinion and consulting with its financial and legal advisors, among other considerations, the board of directors of MediPharm have unanimously: (i) determined that the Transaction is in the best interests of MediPharm; (ii) resolved to recommend that MediPharm shareholders vote in favor of the Transaction; and (iii) determined that the consideration to be paid by MediPharm pursuant to the Transaction is fair, from a financial point of view, to MediPharm shareholders.
Recommendation of the VIVO Board
The board of directors of VIVO has reviewed and approved the Transaction. After obtaining the ATB Opinion and consulting with its financial and legal advisors, among other considerations, the independent members of the board of directors of VIVO have unanimously: (i) determined that the Transaction is in the best interests of VIVO; (ii) resolved to recommend that VIVO shareholders vote in favor of the Transaction; and (iii) determined that the consideration to be received by VIVO shareholders pursuant to the Transaction is fair, from a financial point of view, to VIVO shareholders.
Financial and Legal Advisors
Hyperion Capital Inc. is acting as financial advisor to MediPharm and provided the Hyperion Opinion to the MediPharm board of directors. Aird & Berlis LLP is acting as legal counsel to MediPharm.
Stoic Advisory Inc. is acting as financial advisor to VIVO. ATB Capital Markets Inc. acted as financial advisor for the restructuring of VIVO's convertible debentures and provided the ATB Opinion to the VIVO board of directors. Bennett Jones LLP is acting as legal counsel to VIVO.
Notes:
This is forward-looking information and based on a number of assumptions. See “Cautionary Note Regarding Forward-Looking Information“ and “Assumptions”.
Based on both costs and revenue opportunities identified by MediPharm and VIVO management. Revenue opportunity assumed that both existing products may be sold into the existing sales channels of both VIVO and MediPharm. Costs savings estimated depends on the eliminating duplicated public company expenses and redundant corporate infrastructure.
This target, and the related assumptions, involve known and unknown risks and uncertainties that may cause actual results to differ materially. While MediPharm and VIVO believe there is a reasonable basis for this target, such target may not be met. Actual results may vary and differ materially from the targets. See “Assumptions”.
Certain financial information included in this press release is neither audited nor reviewed. Where possible, the information has been constructed by management from available audited or audit reviewed financial statements. Where no audited or audit reviewed information has been available, additional management accounting information has been utilized to construct financial information. Readers are cautioned not to place undue reliance on such information.
This is a non-IFRS reporting measure. For a reconciliation of this to the nearest IFRS measure, see “Non- IFRS Measures” below.
Based on patient count details collected and provided by licence holder CannaFarms, a wholly owned subsidiary of VIVO.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets.
In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment Licence from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing Licence for the extraction of natural cannabinoids. The Company
About VIVO Cannabis
VIVO Cannabis® is recognized for trusted, quality medical cannabis products and services. It holds production, sales and research licences from Health Canada and operates world-class indoor cultivation facilities. VIVO has a collection of brands, each targeting different customer segments, including Canna Farms™, Beacon Medical®, Fireside™, and Lumina™. Harvest Medicine™, VIVO’s patient-centric network of medical cannabis clinics, has serviced over 200,000 patient visits. VIVO focuses its international efforts on Germany and Australia. For more information visit: www.vivocannabis.com
Assumptions
In developing the financial guidance set forth above, MediPharm and VIVO made the following assumptions and relied on the following factors and considerations:
The targets are based on MediPharm and VIVO’s historical results including annualized revenue from its interim financial results for the period ended September 30, 2022, as adjusted for subsequent events including completion of the Transaction.
Revenue sustainability and growth depend on a variety of factors, including among other things, location, competition, legal and regulatory requirements. Prices are projected forward at recently realized wholesale and direct to patient prices.
Cost of goods sold, before taking into account the impact of value changes in biological assets (which are non-cash in nature), and, accordingly, are excluded from calculations of EBITDA, have been projected based on estimated costs of production and capacity available from a similar supply chain.
The immediate reduction of public company professional and service fees, such as but not limited to, errors and omissions insurance, audit services, listing expenses and external legal fees.
Implied redundancy of employee roles in the Combined Company, mainly in corporate functions. Impacted employee severance fees are calculated on current employment agreements and Employment Standards Act (Ontario).
No changes to existing medical cannabis legislation and regulations in Canada, Germany, Australia and Brazil.
All VIVO and MediPharm regulatory licenses remain in good standing with domestic and international regulators, particular Good Manufacturing Practices (GMP).
Non-IFRS Measures
This news release contains references to certain non-IFRS financial measures, including “EBITDA”, which means earnings before interest, taxes, depreciation, and amortization and is used as an indicator of the Company’s overall profitability. These measures do not have any standardized meaning according to International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures presented by other companies. There are no comparable IFRS financial measures presented in MediPharm or VIVO’s unaudited condensed interim consolidated financial statements. The most directly comparable measure to EBITDA calculated in accordance with IFRS is operating income (loss). MediPharm and VIVO believe that the non-IFRS measure presented herein provides information useful to shareholders and investors in understanding our performance and may assist in the evaluation of the Combined Company’s business relative to that of its peers. For more information, please see the most recent MD&A of each of MediPharm and VIVO available on www.sedar.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, statements regarding: the Transaction; the terms and conditions pursuant to which the Transaction will be completed, if at all; the anticipated timing for receipt of necessary court and regulatory approvals for the Transaction; the anticipated timing for completion of the Transaction; the Combined Company; the future financial and operational performance of the Combined Company; the Combined Company’s key business segments, product offerings, pro-forma and overall financial performance; future development of products of the Combined Company; potential future revenue and cost synergies resulting from the Transaction; statements about the Combined Company’s profitability and ability to grow the business going forward following the Transaction; the Combined Company establishing itself as an international pharmaceutical company; a leading position in the projected multibillion-dollar global cannabis pharmaceutical market; becoming the go-to partner for pharmaceutical companies around the globe; potential for material revenue growth for years to come; and the Combined Company's transition towards pharmaceutical and medical markets reaching new heights. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the ability of MediPharm and VIVO to receive all necessary court, shareholder and regulatory approvals for the Transaction; general business, economic, competitive, political and social uncertainties; and other factors discussed in each of MediPharm’s and VIVO’s public filings, available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, each of MediPharm and VIVO assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
For further information:
MediPharm Labs Investor Relations
Telephone: 1 416.913.7425 ext. 1525
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
VIVO Investor Relations
Michael Bumby, Chief Financial Officer
Email: ir@vivocannabis.com
Website: www.vivocannabis.com
Instagram: https://www.instagram.com/vivo_cannabis/
LinkedIn: https://www.linkedin.com/company/vivo-cannabis-inc/
Facebook: https://www.facebook.com/vivocanna/
Twitter: https://twitter.com/vivo_cannabis
FIRE & FLOWER ANNOUNCES PROPOSED AMENDMENT TO DEBENTURES HELD BY ALIMENTATION COUCHE-TARD AND POSTPONEMENT OF SPECIAL SHAREHOLDERS' MEETING
DECEMBER, 15, 2022
TORONTO, Dec. 15, 2022 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCWX: FFLWF), today announced that it has entered into an agreement (the "Amendment Agreement") to amend the approximately $2.4 million principal amount of unsecured convertible debentures (the "Debentures") held by 2707031 Ontario Inc., an indirect wholly-owned subsidiary of Alimentation Couche-Tard Inc. ("ACT"), to extend the maturity date from June 30, 2023 to August 31, 2024 (the "Debenture Amendment").
Fire & Flower Holdings Corp. Logo (CNW Group/Fire & Flower Holdings Corp.)
Conditions Precedent
The Debenture Amendment shall come into effect immediately following the satisfaction of certain conditions precedent, including: (a) the receipt of the requisite approvals for the Debenture Amendment by the holders of the common shares of the Company (the "Shareholders") as required by applicable securities laws and the policies of the Toronto Stock Exchange (the "TSX"); and (b) the approval by the Shareholders of: (i) the previously announced private placement, whereby ACT will subscribe for 3,034,017 Common Shares at a price of $1.64798 per Common Share, for aggregate proceeds of approximately $5,000,000 (the "Private Placement"); and (ii) the previously announced amendments to the Series C Common Share purchase warrants of the Company held by ACT (the "Series C Amendments"). A description of the Private Placement and Series C Amendments is available in the Company's management information circular dated November 4, 2022 (the "Circular") in respect of the special meeting of Shareholders (the "Special Meeting") to consider the approval of the Private Placement and the Series C Amendments. A copy of the Circular is available on the Company's SEDAR profile at www.sedar.com. There can be no certainty as to when the Debenture Amendment will become effective, if at all.
In the event the Debenture Amendment comes into effect, the extension of the maturity date from June 30, 2023 to August 31, 2024 may result in the Company paying to ACT up to an additional $230,000 in interest, which amount may still be satisfied, at the election of the Company, by the issuance of common shares of the Company (the "Common Shares") at a conversion price equal to 95% of the 20-day volume weighted average trading price of the Common Shares at the time any such interest is payable.
"We are pleased to have negotiated this extension as part of our ongoing discussions related to the comprehensive ACT financing package that is subject to a minority shareholder vote," said Stéphane Trudel, CEO of Fire & Flower. "This extension is expected to contribute to our ability to execute on our plan to get to positive free cash flow by the second half of 2023 and secure our position as a leader in cannabis retailing, supported by our industry-leading Hifyre digital platform."
Postponement of Special Meeting
As the effectiveness of the Debenture Amendment is conditional on the approval of the Private Placement and the Series C Amendments by the Shareholders, the Company has determined to give the Shareholders additional time to consider their vote with respect to the Private Placement and Series C Amendments. As such, the Company has: (a) postponed the Special Meeting to December 29, 2022 at 1:00 p.m. EST at the offices of Dentons Canada LLP, 77 King Street West, Suite 400, Toronto, Ontario M5K 0A1; and (b) extended the proxy deadline for voting at the Special Meeting from Wednesday, December 14, 2022 at 10:00 a.m. EST to up until the start of the Special Meeting. If you have already voted your proxies in favour or against the Private Placement and Series C Amendments and wish to revoke your proxy, please see the Circular for further information.
Fire & Flower Board Recommendation
The board of directors of the Company (the "Board"), based on a unanimous recommendation of a special committee comprised of independent directors (the "Special Committee") and after consultation with its advisors, has unanimously determined that the Debenture Amendment is in the best interests of Fire & Flower and reiterates its recommendation that the Shareholders, other than ACT and its affiliates, vote in favour of the Private Placement and the Series C Amendments at the Special Meeting to be held on December 29, 2022.
The Special Committee was established by the Board to consider certain proposals made by ACT, as well as other alternatives available to the Company and, if deemed advisable, negotiate with ACT. The Special Committee has unanimously recommended that the Board approve the Debenture Amendment. The Board (excluding conflicted directors), having received the unanimous recommendation of the Special Committee, unanimously approved the Debenture Amendment and determined that the Debenture Amendment is in the best interests of the Company and recommends that the Shareholders, other than ACT and its affiliates, vote in favour of the Debenture Amendment at a meeting of Shareholders to be held at a future date to be determined by the Company.
Related Party Transaction
ACT holds greater than 10% of the outstanding voting securities of the Company. As such, the Debenture Amendment constitutes a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Debenture Amendment is not subject to the formal valuation requirements of MI 61-101. The Debenture Amendment is not exempt from the minority shareholder approval requirements under section 5.7 of MI 61-101, and as such, is subject to minority shareholder approval in accordance with MI 61-101, which approval is expected to be sought at a meeting of the Shareholders to be held at a future date to be determined by the Company.
Additional Information
A copy of the Amendment Agreement will be filed on the Company's profile on SEDAR at www.sedar.com.
About Fire & Flower
Fire & Flower is a cannabis consumer retail and technology platform with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through best-in-class retailing while the HifyreTM digital and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of ACT (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime. To learn more about Fire & Flower, visit www.fireandflower.com.
About Alimentation Couche-Tard Inc.
Couche-Tard is a global leader in convenience and mobility, operating in 24 countries and territories, with more than 14,300 stores, of which approximately 10,900 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, as well as in Ireland. It also has an important presence in Poland and Hong Kong Special Administrative Region of the People's Republic of China. Approximately 122,000 people are employed throughout its network.
For more information on Alimentation Couche-Tard Inc. or to consult its audited annual Consolidated Financial Statements, unaudited interim Consolidated Financial Statements, and Management Discussion and Analysis, please visit: https://corpo.couche-tard.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to Fire & Flower. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower, which may cause Fire & Flower's actual performance and results to differ materially from any projections. Such factors, among other things, include: final regulatory and other approvals or consents (including shareholder approval).
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the headings "Risk Factors" in the Company's Annual Information Form dated April 26, 2022 and "Risks and Uncertainties" in the management discussion and analysis for the thirteen weeks ended October 29, 2022 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.
Green Thumb Industries Announces Expansion of Executive Leadership Team
Executive Management and Board Member Appointments to Take Effect January 1, 2023
December 13, 2022 07:00 ET | Source: Green Thumb Industries
CHICAGO and VANCOUVER, British Columbia, Dec. 13, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced the appointments of four executive leadership positions and one new board member. The leadership promotions include Anthony Georgiadis to President, Matt Faulkner to Chief Financial Officer, and Bret Kravitz to General Counsel and Secretary, as well as the appointments of Rachel Albert to Chief Administrative Officer and Dawn Wilson Barnes to the Company’s board of directors. These appointments will be effective January 1, 2023.
“These changes reflect the natural evolution of high-performing team members to positions of greater responsibility and demonstrate our conviction in the strength of our leadership,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “I am especially pleased to recognize the pivotal role that Anthony Georgiadis has played over the last seven years. He continues to be an outstanding partner in leading the business, an excellent problem-solver, and a material value creator for shareholders. His deep understanding of the operations and financials, along with his proven leadership ability to empower the team to drive results, make him exceptionally suited for his new role of President. I am confident these moves set us up for long-term success as we progress in this ever-changing landscape.”
As President, Georgiadis will be responsible for all operational and financial matters of the Company. His direct reports will include Chief Financial Officer, General Counsel, and Senior Vice Presidents who oversee operational functions. Georgiadis will continue to work closely with Kovler on overall corporate strategy and operations, while allowing Kovler to focus greater attention on capital allocation, strategic partnerships, brand positioning, investor relations, and mergers & acquisitions.
Georgiadis joined Green Thumb in 2015 and has played an integral role in growing the Company into one of the leading multi-state cannabis operators in the U.S. Since 2017, he has served as Chief Financial Officer, directing the Company’s cash flow and financial planning while overseeing operations for other areas of the business. Prior to Green Thumb, Georgiadis co-founded and served as Chief Operating Officer of Wendover Art Group, which he helped grow into one of the largest manufacturers of wall décor in North America. Georgiadis graduated magna cum laude from Bucknell University with a degree in finance and minor in mathematics.
Georgiadis said, “I am humbled by the trust that has been placed in me as well as the incredible passion we have across our leadership team. I view today’s announcement as recognition of our collective hard work and dedication to making Green Thumb a special place. I am also excited for Matt Faulkner, who has proven his financial and reporting acumen over the past several years, to take on the role of CFO. Green Thumb’s ability to continue to identify and cultivate talent from within is critical to the execution of our strategy. And while our roles within the business evolve, our steadfast focus on creating authentic brands, high-quality flower and memorable experiences for the consumer remains.”
As Chief Financial Officer, Faulkner will be responsible for managing all financial activities for the Company. Faulkner joined Green Thumb in 2018 and was appointed to Chief Accounting Officer in 2020. During his tenure, he successfully facilitated the Company’s initial public offering in the U.S. and led the transition from reporting under International Financial Reporting Standards (IFRS) in Canada to U.S. Generally Accepted Accounting Principles (GAAP) reporting with the U.S. Securities and Exchange Commission. Prior to Green Thumb, Faulkner spent over 20 years at Walgreens, where he progressed through leadership roles in accounting and finance. Faulkner earned a bachelor’s degree in accounting from the University of Toledo, a Master of Business Administration in finance from Northern Illinois University and is a Certified Public Accountant.
As General Counsel and Secretary, Kravitz will serve as the primary legal advisor to management and the board while overseeing all legal matters of the Company. Kravitz has served as Chief Corporate Counsel since joining Green Thumb in 2017. Throughout his tenure, he has closed numerous strategic acquisitions, partnerships, and capital raises in coordination with Green Thumb’s executive team. Prior to Green Thumb, Kravitz held attorney positions at Dickinson Wright and Baker Hostetler. Kravitz earned a bachelor’s degree in finance from the University of Colorado, a Master of Business Administration in finance from the University of Denver and a Juris Doctor from Lewis & Clark Law School.
Rachel Albert will assume a new role as Chief Administrative Officer, supporting executive initiatives and decision-making while helping to shape Green Thumb’s culture. Albert joined Green Thumb as a consultant in 2020 to lead the Human Resources department. She has spent over 20 years as a trusted business partner in both high-growth and downsized organizational environments leading efforts aimed at engaging and motivating employees while delivering business results. Prior to Green Thumb, Albert held various roles with strategic and tactical human resources management oversight at GE Capital and was a consultant at Mercer HR Consulting in New York. Albert graduated magna cum laude from Tufts University in Boston and earned a Master of Business Administration from the Kellogg School of Management at Northwestern University.
Appointment of New Board Member
The Company also announced today the appointment of Dawn Wilson Barnes to its board of directors effective January 1, 2023. Barnes will join the board as an independent director and member of the audit committee.
Barnes is an experienced financial services professional, and currently serves as President and Founder of Aurora Bay Capital, an Atlanta-based financial services firm that provides institutional marketing and consulting services to firms seeking growth capital. Prior to founding Aurora Bay Capital, Barnes held positions in Private Finance, Equity Capital Markets and Investment Management at J.P. Morgan & Co. and Goldman Sachs and Co. in New York. Previously, Barnes held auditing and accounting positions with Honeywell, Inc. in Corporate Financial Audit in Minneapolis and the firm’s Military Avionics Division in St. Petersburg, Florida.
Barnes holds a Master of Business Administration in finance and entrepreneurial management from The Wharton School of the University of Pennsylvania, and a Bachelor of Business Administration in accounting from the University of Michigan. She is a FINRA-registered representative with Pickwick Capital Partners, LLC and passed the CPA exam in the state of Minnesota.
Kovler commented, “We are thrilled to welcome Dawn as an independent member to Green Thumb’s board. As a seasoned financial professional with expertise in capital markets and audit, she will be a strong addition to the team. Dawn’s appointment to our board will further strengthen our corporate governance, which remains a top priority for Green Thumb. I look forward to working with Dawn.”
Barnes added, “There are endless opportunities in the cannabis industry and the Green Thumb team has set forth an outstanding foundation to deliver long-term growth. I am beyond excited to join the Company’s board and support their growing success.”
Green Thumb continues to actively recruit additional board members in preparation for its potential U.S. listing and has hired an external recruiting firm to assist with the search.
About Green Thumb Industries
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 3,800 people and serves millions of patients and customers each year. The company was named to Crain’s Chicago Business Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect,” or similar expressions and include information regarding the filing of the Documents and the timing thereof. The forward-looking information in this news release is based upon the expectations of future events which management believes to be reasonable. Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Green Thumb does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information in this news release is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those express or implied. When considering these forward-looking statements, readers should keep in mind the risk factors and other cautionary statements in Green Thumb’s public filings with the applicable securities regulatory authorities, including with the U.S. Securities and Exchange Commission on its website at www.sec.gov and with Canada’s System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, as well as on Green Thumb’s website at https://investors.gtigrows.com, including in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Investor Contact:
Andy Grossman
EVP, Capital Markets & Investor Relations
InvestorRelations@gtigrows.com
310-622-8257
Media Contact:
MATTIO Communications
GTI@mattio.com
Source: Green Thumb Industries
Pernod plans $250m Jefferson’s Bourbon distillery
09 DECEMBER 2022
By Melita Kiely
French drinks firm Pernod Ricard will build a US$250 million (€238m) American whiskey distillery for its Jefferson’s Bourbon brand.
Jefferson's Bourbon
Jefferson’s Bourbon joined the Pernod Ricard portfolio in 2019
The new ‘state-of-the-art’ distillery will be carbon neutral, and will also include warehouses. It will be located in Marion County, Kentucky.
Alexandre Ricard, chairman and CEO, Pernod Ricard, commented: “American whiskey is an extremely vibrant spirits category and our strategic investments over the last few years have proven successful.
“Our philosophy of partnering with entrepreneurial brand founders, while preserving the heritage and terroir associated with the brands they created, has made us an established player in premium American whiskey.
“Jefferson’s founder Trey Zoeller is no exception. This new investment will allow us to grow our share of category sales not only in the US, but also in export markets.”
Pernod Ricard acquired Jefferson’s Bourbon in 2019 through its purchase of parent company Castle Brands. Since then, sales of Jefferson’s in the US have doubled.
The news of the new facility follows Pernod Ricard’s creation of the company’s dedicated American arm, The American Whiskey Collective.
It also follows the announcement of a €400m (US$422.6m) investment in expansion and sustainable improvements across its distilleries in Ireland and Scotland.
Ann Mukherjee, chairman and CEO, Pernod Ricard North America, said: “The new distillery will enable Jefferson’s to efficiently keep up with very strong consumer demand while staying true to the company’s longstanding commitment to sustainability.
“Our company is an agricultural company at its core and so it is vital that we lead the category forward – in partnership with our farmers and growers – and remain committed to the long-term sustainability of our people, our industry and our planet. This investment is the latest illustration of that belief.”
Pernod Ricard said Jefferson’s would continue to partner with local farmers and suppliers to source local ingredients and casks.
ACT will own 51% of FFLWF --->>> Circle K Debuts First National Fuel Advertising Campaign in U.S.
“Fueled by Circle K” Focuses on Quality Fuel You Can Trust and the Communities We Serve
December 06, 2022 01:34 PM Eastern Standard Time
CHARLOTTE, N.C.--(BUSINESS WIRE)--Circle K, a global leader in convenience and mobility, today announces its first-ever U.S. nationwide advertising campaign, “Fueled by Circle K.” Taking place over the next year, the campaign focuses on Circle K fuel, which is now available in over half of its 7,000 U.S. locations. The campaign underscores Circle K’s mission to make customers’ lives a little easier every day, highlighting fuel they can trust as yet another way the brand serves the communities where it operates.
“As a major milestone for our brand, we want the ‘Fueled by Circle K’ campaign to celebrate our valued customers and show how they can trust the quality of Circle K fuel to support them on their journeys as well as enjoy so many customer favorites in store.”
The campaign will run primarily on digital streaming and social media channels, taking a customer-centric creative approach in the four-part ad series that showcases different customers, their fueling experiences and how Circle K has everything they need for their journey.
Launched on Dec. 2, the first ad of the year-long campaign is holiday-themed, featuring actual Circle K employees alongside a variety of Circle K customer personalities, from delivery drivers to Santa’s helpers. The ad also features user-generated content from actual Circle K customers, and an original festive jingle to get customers in the holiday spirit.
“With the continued growth of Circle K in the U.S. and the expansion of Circle K Fuel reaching close to 4,000 stores by mid next year, now is the right time to introduce our first national fuel campaign,” explains Melissa Lessard, Head of North American Marketing. “As a major milestone for our brand, we want the ‘Fueled by Circle K’ campaign to celebrate our valued customers and show how they can trust the quality of Circle K fuel to support them on their journeys as well as enjoy so many customer favorites in store.”
To continue showcasing real customers throughout the campaign, Circle K fans are invited to share how Circle K is part of their life for a chance to be featured in future ads or social media posts, plus the opportunity to win fun prizes. To enter, customers can post to social media using #MyCircleK or upload their photos and videos directly to the My Circle K website.
View the first ad, “Holiday,” on YouTube. For more information on Circle K, Circle K Fuel, and to find a nearby location, visit circlek.com.
About Circle K and Alimentation Couche-Tard Inc.
Couche-Tard is a global leader in convenience and fuel retail, operating in 24 countries and territories, with close to 14,300 stores, of which approximately 10,900 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, as well as in Ireland. It also has an important presence in Poland and Hong Kong SAR. Approximately 122,000 people are employed throughout its network.
For more information on Alimentation Couche-Tard Inc. or to consult its annual Consolidated Financial Statements and Management Discussion and Analysis, please visit: https://corpo.couche-tard.com.
Contacts
Media Contact:
Alyssa Eubank
bcwcirclek@bcw-global.com
FIRE & FLOWER OPENS NEW STORE IN KELOWNA, BRITISH COLUMBIA
DECEMBER, 09, 2022
The Company continues to expand its footprint in B.C. and new markets across Canada
TORONTO, Dec. 9, 2022 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), a leading cannabis consumer retail and technology platform announced today that it has opened an additional store in the province of British Columbia in Kelowna, at 553 Bernard Avenue.
The much-anticipated store opening continues to show the Company's growth in the B.C. market and is the sixth store opening in Canada in the past 30 days. Other recent store openings include: a Fire & Flower branded corporate store in Bridgwater in Winnipeg, Manitoba, and four stores operating under license by MC Cannabis Inc. located adjacent to Circle K convenience stores in Oshawa, Guelph, Hamilton and Brampton.
"We are delighted to open our latest store in the B.C. market, in the heart of downtown Kelowna. It's a beautiful city with a diverse economy and a fantastic tourism industry, given its proximity to world renowned resorts, restaurants and wineries," said Stéphane Trudel, Chief Executive Officer of Fire & Flower. "We are ready to serve our guests and add value to this thriving community of both locals and tourists, by providing exceptional customer service, education, and the best products, at the best prices."
Visit www.fireandflower.com for store locations including operating hours and delivery zones in certain regions.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre, to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre digital retail and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, logistics, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit https://www.fireandflower.com.
SOURCE Fire & Flower Holdings Corp.
Green Thumb in CT --->>> First adult-use recreational cannabis sales to begin in Connecticut in January
By Mike Mavredakis
Hartford Courant
Dec 09, 2022 at 9:02 am
The first recreational, adult-use cannabis sales in Connecticut will begin at nine hybrid retailers in January, according to the Department of Consumer Protection.
The DCP gave a 30-day notice to the nine hybrid retailers across the state that they can begin retail sales on Jan. 10, 2023, starting at 10 a.m. or as local zoning permits allow.
The locations approved are three Fine Fettle Dispensary locations in Newington, Stamford and Willimantic, two The Botanist locations in Danbury and Montville, Still River Wellness in Torrington, Willow Brook Wellness in Meriden and Blue Point Wellness of Connecticut in Branford (Blue Point is Green Thumb). Yeah, finally I can walk into a store not far from home!
All current medical cannabis producers met the space requirements needed, which is at least 250,000 square feet of growing and manufacturing space that is approved for adult-use production.
Consumers may purchase up to one-quarter of an ounce of cannabis flower, or its equivalent, per sale. This could include up to about seven pre-rolled cannabis cigarettes that weigh one gram each, two to four vape cartridges, edibles or a combination of products equaling one-quarter of an ounce. Edibles may not exceed five milligrams per serving, the DCP said.
“I am proud of the hard work our team has done to meet the goal of opening adult-use sales in a safe, well-regulated market,” DCP Commissioner Michelle H. Seagull said. “We know that many people are excited to participate in this marketplace, whether as a business or a consumer, and we encourage adults who choose to purchase and consume these products to do so responsibly once sales begin on January 10.”
Check back for updates.
If I was buying and flipping I could have made money. This is a sad one.
Simon ROBO-called me yesterday regarding the Montauk Brewing purchase. The message was about wanting me to vote for it.
They had the apathy problem when Aphria bought Tilray.
Good luck.
Tilray Brands Acquires Montauk Brewing Company
November 7, 2022 at 9:23 AM EST
Tilray Expands and Strengthens U.S. Footprint with Acquisition of the Fastest Growing Craft Beer Brand and #1 Craft Brewer in Metro New York1
Montauk Brewing Deal Expected to be Accretive, Deliver Strong Revenue and Adjusted EBITDA, and Accelerate the Expansion of Tilray’s Powerful U.S. Brand Portfolio
Veteran Industry Executive Ty H. Gilmore Appointed President of Tilray Brands’ U.S. Beer Business
NEW YORK, Nov. 07, 2022 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. ( “Tilray Brands” or the “Company”) (NASDAQ | TSX: TLRY), today announced the acquisition of Montauk Brewing Company (“Montauk Brewing”), the #1 craft brewer in Metro New York. Montauk Brewing is well-known for its beloved product portfolio, premium price point, and distribution across over 6,400 points of distribution, including top national retailers such as Target, Whole Foods, Trader Joe’s, Stop & Shop, King Kullen, Walmart, 7-Eleven, Costco, BJ’s, and Speedway. The acquisition is expected to be accretive to the Company’s adjusted EBITDA.
Montauk Brewing joins Tilray’s growing U.S. beverage-alcohol segment, which already includes SweetWater Brewing Company, the 10th largest craft brewer in the nation with distribution across more than 40 states, the Alpine and Green Flash iconic Southern California brands, and its leading lifestyle bourbon and spirits brand, Breckenridge Distillery. To fully optimize the value and strength of its U.S. craft beer portfolio, Tilray also announced today that it has appointed veteran beer and beverage industry executive Ty H. Gilmore as President of Tilray’s U.S. beer business, a newly created position.
Irwin D. Simon, Chairman and CEO, said, "Tilray Brands continues to strengthen our U.S. footprint and operations through investments in and growing our portfolio of leading lifestyle CPG brands that resonate powerfully with consumers. Montauk Brewing is an iconic brand with leading market share and distribution in the northeast. Tilray Brands intends to leverage SweetWater’s existing nationwide infrastructure and Montauk Brewing’s northeast influence to significantly expand our distribution network and drive profitable growth in our beverage-alcohol segment. This distribution network is part of Tilray’s strategy to leverage our growing portfolio of U.S. CPG brands and ultimately to launch THC-based product adjacencies upon federal legalization in the U.S.”
Mr. Simon continued, “We are excited to welcome Montauk Brewing’s founders Vaughan Cutillo and Eric Moss, as well as Terry Hopper, Montauk Brewing’s General Manager, to the Tilray Brands family and I look forward to working closely with Ty Gilmore to maximize the performance of our enormously powerful craft and lifestyle beverage brand portfolio.”
Strategic and Financial Benefits: Montauk Brewing joins SweetWater, Green Flash, and Alpine brands as the cornerstones of Tilray’s coast to coast craft beer segment and further strengthens the Company’s net revenue. In addition to acquiring a strong brand and accretive business, the acquisition is expected to deliver additional scale in Tilray’s craft beer segment and positions Tilray Brands with a stronger footprint in the northeast rounding out our footprint across the U.S. market.
Expands Tilray’s Commercial Opportunities in the U.S.: Upon federal legalization in the U.S., Tilray plans to take full advantage of its strategic infrastructure, operations and consumer loyal brands across beer, spirits, and snack-food categories to parlay into THC-based products and further expand its commercial opportunities.
Opportunity for Accelerated Growth of Montauk Brewing Company: Montauk Brewing has enormous potential to expand its customer base and grow throughout the U.S. as a true national brand. Tilray Brands intends to leverage SweetWater’s existing nationwide infrastructure to accelerate Montauk Brewing’s distribution network and revenue growth.
Appointment of Ty H. Gilmore as President of U.S. Beer Business: Gilmore joins Tilray from Glazer’s Beer and Beverage, where he had served since 2020 as executive vice president, overseeing sales, marketing and operations across 11 distributors in the south. Prior to that, he spent the majority of his nearly three-decade career at Diageo, in positions of increasing seniority including seven years leading national accounts.
As Tilray Brands continues to accelerate its strategic growth opportunities, we ask all stockholders to participate in the Company’s Annual Meeting of Stockholders to be held on November 22, 2022. Tilray urges stockholders to vote “FOR” all key proposals to ensure best corporate governance practices and help the Company protect the influence of its stockholders. Your support is important, no matter how many or how few shares you own.
If you have any questions, or need any assistance in voting your shares, please contact Morrow Sodali LLC at (800) 449-0910 toll-free in the U.S. and Canada or (203) 658-9400 or by email at TLRY@info.morrowsodali.com.
Advisors
Arlington Capital Advisors served as exclusive financial advisor to Montauk Brewing Company.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time – by inspiring and empowering a worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Tilray’s mission is to be the most responsible, trusted and market leading cannabis consumer products company in the world with a portfolio of innovative, high-quality and beloved brands that address the needs of the consumers, customers and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we open a world of wellbeing, visit www.Tilray.com and follow @tilray on all social platforms.
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations concerning, among other things: expected revenue generation and accretion related to the Montauk acquisition; the Company’s ability to expand upon distribution and sales of alcohol products, including Montauk, in the U.S.; and expected expansion opportunities upon U.S. federal legalization. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.
____________________________
1 Nielsen xAOC & Food 2022
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/85de5eae-30cf-4a93-a4f3-ece5365b67cc
Green Thumb Industries Reports Third Quarter 2022 Results
NOVEMBER 2, 2022
Aleafia Health to Announce Fiscal Year 2023 Second Quarter Results
TORONTO, November 2, 2022 – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) will announce on November 9 prior to market open its fiscal year 2023 second quarter results for the period ending September 30, 2022. The Company will also host its earnings conference call the same day at 8:30 a.m. EST. The call will be hosted by CEO Tricia Symmes and CFO Matt Sale.
CONFERENCE CALL & WEBCAST
Date: November 9, 2022
Time: 8:30 a.m. EST
Webcast Link
Phone Registration Link
This conference call will be webcast live over the internet and can be accessed through the link provided above. Audio of the call will be available to participants through both the conference call line and webcast; however, the presentation may only be viewed via the webcast. Participants who miss the live call can view a replay at any time via the link provided.
For Investor & Media Relations:
Matthew Sale, CFO
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
Aleafia Health Expands Sunday Market House of Brands With Coveted Lineup of Winter Product Launches
Breckenridge Distillery Announces Ultimate Whiskey and Beer Collaboration With Breckenridge Brewery
Green Thumb to Launch “RISE Express” Dispensaries in Florida
OCTOBER 19, 2022
Valens GroWorks (VLS) Set to Announce Earnings on Thursday
Posted by MarketBeat News on Oct 11th, 2022
Valens GroWorks logoValens GroWorks (TSE:VLS – Get Rating) will issue its quarterly earnings data before the market opens on Thursday, October 13th. Analysts expect the company to announce earnings of C($0.17) per share for the quarter.
Valens GroWorks (TSE:VLS – Get Rating) last released its quarterly earnings data on Wednesday, July 13th. The company reported C($0.19) EPS for the quarter, topping analysts’ consensus estimates of C($0.23) by C$0.04. The company had revenue of C$24.00 million for the quarter, compared to analysts’ expectations of C$26.12 million.
FIRE & FLOWER ANNOUNCES U.S. MARKET UPDATE AND HIFYRE TECHNOLOGY TO BE LAUNCHED IN COLORADO
OCTOBER, 11, 2022
Company positioned for U.S. market entry through Fire & Flower U.S. Holdings concurrent with the review of the Federal Controlled Substances Act
TORONTO, Oct. 11, 2022 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF) a leading cannabis consumer retail and technology platform announced today updates to its U.S. market entry through its strategic arrangement with Fire & Flower U.S. Holdings Inc. ("Fire & Flower U.S.").
As previously announced, the Company has entered into an amended and rested option agreement (the "Option Agreement") pursuant to which Fire & Flower has an option to acquire Fire & Flower U.S. and an amended licensing agreement to deploy the Hifyre™ technology platform in the United States.
In addition to an initial licensing agreement in Palm Springs, California, Fire & Flower's Hifyre™ technology will be deployed in a leading Denver, Colorado dispensary. Hifyre will receive digital revenue from the deployment of its software in this market and anticipates receiving these revenues in the Company's third quarter and subsequent quarters through recurring software-based revenue.
Fire & Flower U.S. is also in the final stages of submitting applications for five cannabis retail store locations in the state of New Mexico. Fire & Flower U.S. also currently operates a cannabis retail store in Palm Springs, California, which utilizes the full ensuite of Hifyre technology.
"Fire & Flower views the U.S. market as a major opportunity and we are thrilled to see President Biden pardon all prior federal offenses of simple cannabis possession and instruct an expeditious review of how cannabis is scheduled under the Federal Controlled Substances Act," said Stéphane Trudel, Chief Executive Officer of Fire & Flower. "Initiation of this review is a meaningful and welcome step forward towards U.S. federal legalization of cannabis for adult use. We look forward to the results of this review which could provide a major opportunity for Fire & Flower to exercise our option to acquire Fire & Flower U.S. Our option to acquire Fire & Flower U.S. provides us with a U.S. market entry avenue that we believe is unique to any Canadian cannabis retailer."
Fire & Flower continues to monitor developments in the U.S. to consider when it may exercise its option to acquire Fire & Flower U.S. A copy of the Option Agreement is available on the Company's profile on sedar.com.
About Fire & Flower
Fire & Flower is a cannabis consumer retail and technology platform with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through best-in-class retailing while the HifyreTM digital and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
To learn more about Fire & Flower, visit www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this news release include, but are not limited to, statements in respect of the potential exercise by the Company of its option to acquire Fire & Flower U.S., the expansion of the operations of Fire & Flower U.S. and potential changes to the cannabis regulatory regime in the United States.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to Fire & Flower . Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower , which may cause Fire & Flower 's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives, political and social uncertainties, demand for the Common Shares and market conditions.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the headings "Risk Factors" in the Company's Annual Information Form dated April 26, 2022 and "Risks and Uncertainties" in the management discussion and analysis for the thirteen weeks ended July 30, 2022 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.
More On The Exodus From The Top At Green Thumb Industries
Bureau Staff
October 10, 2022
This story was reprinted with permission from Crain’s Chicago and written by John Pletz.
Board members weren’t the only ones who resigned last week from marijuana company Green Thumb Industries (OTC: GTBIF).
The company’s general counsel, Beth Burk, also departed, according to a U.S. Securities & Exchange Commission filing made Oct. 7. Burk was a chief compliance officer at Aon before joining Green Thumb, one of Chicago’s largest cannabis companies, in early 2020.
Burk resigned Oct. 4, along with three of GTI’s four independent directors: YMCA of Metropolitan Chicago CEO Dorri McWhorter; William Gruver, a former Bucknell University professor and Goldman Sachs executive; and Glen Senk, a private-equity executive. All three were members of the company’s audit committee.
The company said when it announced the board changes, “the resigning directors informed management that their cause for resignation was not related to Green Thumb’s business performance, operations, financial performance, financial statements or financial controls, but rather over a disagreement as to the company’s policies and practices related to personal misconduct. It became clear that the former directors and existing management could not find a resolution satisfactory to all parties.”
GTI didn’t provide any details on the circumstances around Burk’s departure, nor did it respond to a request for comment.
“It’s not a good sign when the audit committee and general counsel depart in one fell swoop,” says Charles Elson, a corporate governance expert and retired professor of finance at the University of Delaware.
In its regulatory filing, the company disclosed the terse resignation letter from the three board members, which was written by Senk, a former CEO of Urban Outfitters who joined GTI when it went public in 2018. “We confirm our resignations from the Green Thumb board of directors as of 11:59 PM CT on October 3, 2022, because of our material differences with company management,” the letter states. “This correspondence supersedes our prior written correspondence to you on this matter.”
SEC filings did not contain any previous correspondence. The company also said in its filing that Jeff Goldman, one of two board members selected to replace those who resigned, has been working for GTI as a marketing consultant since November.
Aleafia Health Announces Results of Annual General Meeting
TORONTO, September 29, 2022 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is pleased to announce the results of the vote on the election of directors at its annual meeting of shareholders held on September 27, 2022 (the “Meeting”). All six nominees set out in the management information circular of the Company dated August 19, 2022 were elected to the board of directors (the “Board”) of the Company.
Nominee For Against Withheld Non Vote For Against Withheld
Mark Sandler 67,007,871 1,632,272 0 23,208,803 97.62% 2.38% 0.00%
Luciano Galasso 67,165,098 1,475,045 0 23,208,803 97.85% 2.15% 0.00%
Ian Troop 67,240,952 1,399,191 0 23,208,803 97.96% 2.04% 0.00%
David Pasieka 67,167,928 1,472,215 0 23,208,803 97.86% 2.14% 0.00%
Jon Pereira 67,185,790 1,454,353 0 23,208,803 97.88% 2.12% 0.00%
Carlo Sistilli 67,209,871 1,430,272 0 23,208,803 97.92% 2.08% 0.00%
Final voting results on all matters will be filed on the Company’s SEDAR profile at www.sedar.com.
For Investor & Media Relations:
Matthew Sale, CFO
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
I'm excited that there may be a drug for concussions.
Finding appropriate situations to apply the drug when someone gets a violent hit to the head is going to be tough unless some high school school districts, the NCAA or the NFL sign on to test the drug.
Great news. Now they have to prove that the drug works.
Green Thumb Industries to Hold Third Quarter 2022 Earnings Conference Call on November 2, 2022
SEPTEMBER 28, 2022
https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2022/Green-Thumb-Industries-to-Hold-Third-Quarter-2022-Earnings-Conference-Call-on-November-2-2022/default.aspx
CHICAGO and VANCOUVER, British Columbia, Sept. 28, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced it will release third quarter financial results after the market closes on Wednesday, November 2, 2022.
A conference call and audio webcast will also be held on Wednesday, November 2, 2022, at 5:00 p.m. Eastern Time/4:00 p.m. Central Time to discuss the results and answer any questions.
Live conference call: 844-883-3895 (Toll-Free) and 412-317-5797 (International)
Live and archived webcast: https://investors.gtigrows.com
Participants may pre-register for the live conference call any time prior to the start of the call by navigating to https://dpregister.com/sreg/10171308/f484a984c4 and entering their contact information. You will then receive a personalized phone number and PIN to dial into the live conference call.
About Green Thumb Industries:
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 4,000 people and serves millions of patients and customers each year. The company was named to Crain’s Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.
Green Thumb Q3 2022 Earnings Call
NOVEMBER 2, 2022 05:00 PM ET
https://investors.gtigrows.com/investors/news-and-events/events-and-presentations/event-details/2022/Green-Thumb-Q3-2022-Earnings-Call/default.aspx
Tilray Medical Receives Approval to Extend Market Authorization in Italy
September 22, 2022 at 7:00 AM EDT
Italian Ministry of Health Approves Tilray Branded Medical Cannabis for Pharmaceutical Distribution
LEAMINGTON, Ontario and CANTANHEDE, Portugal, Sept. 22, 2022 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. ("Tilray" or the "Company") (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, today announced that FL Group S.R.L. (“FL Group”), a division of Tilray Medical in Italy, has received approval from the Italian Ministry of Health to import and distribute Tilray’s medical cannabis oral solution THC25 across the country.
Denise Faltischek, Tilray’s Chief Strategy Officer and Head of International Business, said, “Expanding our approved authorization into Italy once again proves our commitment to be the most responsible, trusted and market leading cannabis company in the world with a portfolio of innovative and high-quality products that address the needs of the patients and consumers we serve. We remain dedicated and focused on working with regulators across international markets to advocate for responsible cannabis regulations, best practices, and a reliable source of quality products.”
In Italy, where medical cannabis authorization is limited, Tilray Medical has an established national pharmaceutical distribution network with FL Group to distribute Tilray’s THC25 medical cannabis oral solution. Patients may obtain prescriptions for Tilray and other medical cannabis products in Italy through their medical doctor.
Tilray Medical is a leading provider of EU-GMP certified medical cannabis products in 22 countries with a comprehensive portfolio of THC and CBD products. Each medical cannabis product that Tilray offers has been selected to ensure patients can receive both the highest product quality as well as consistency when it comes to supply of their medicinal cannabis products.
About Tilray Medical
Tilray Medical is dedicated to transforming lives and fostering dignity for patients in need through safe and reliable access to a global portfolio of medical cannabis brands, including Tilray, Aphria, Broken Coast, and Symbios. Tilray grew from being one of the first companies to become an approved licensed producer of medical cannabis in Canada to building the first EU-GMP-certified cannabis production facilities in Europe, first in Portugal and later in Germany. Today, Tilray Medical is one of the biggest suppliers of medical cannabis brands to patients, physicians, hospitals, pharmacies, researchers, and governments, in 22 countries and across five continents.
For more information on medical cannabis and Tilray Medical, visit www.Tilray.com/tilray-medical and follow @tilraymedical on Instagram.
About FL Group
FL Group S.R.L markets and distributes pharmaceutical, healthcare, orthopedic, and electro-medical products in Italy. In 2015, FL Group became one of the first companies authorized by the Italian Ministry of Health to import and distribute medical cannabis. Today, FL Group specializes as a leader in pharmaceutical distribution of medical cannabis for therapeutic use, pharmaceutical medicines for human and veterinary use, and a traced supply chain of products for pharmacies of innovative products to meet the needs of its customer base across Italy.
For further information on FL Group and to discover the range of products offered, please visit: www.fl-group.it
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time. Tilray Brands delivers on this mission by inspiring and empowering the worldwide community to live their very best life and providing access to products that meet the needs of their mind, body, and soul while invoking wellbeing. Patients and consumers trust Tilray Brands to deliver a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on Tilray Brands, visit www.Tilray.com and join the conversation @Tilray.
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations concerning, among other things: expectations regarding the performance and scale of the Company, including Tilray Medical; and the Company’s ability to expand its offering to patients worldwide, including via Tilray Medical. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
For further information:
Media
Berrin Noorata
news@tilray.com
Investors
Raphael Gross
203-682-8253
Raphael.Gross@icrinc.com
Primary Logo
Source: Tilray Brands, Inc.
Indiva CEO Niel Marotta Discusses The Future of Edibles in Canada
https://www.benzinga.com/markets/cannabis/22/09/28972256/indiva-ceo-niel-marotta-discusses-the-future-of-edibles-in-canada
RISE Dispensaries Announce Premier Sponsorship of HeadCount’s Cannabis Voter Project
AUGUST 25, 2022
RISE Dispensaries Urges Consumers to “Roll Up to the Polls” for Cannabis Policy Reform Across the Nation
CHICAGO and VANCOUVER, British Columbia, Aug. 25, 2022 (GLOBE NEWSWIRE) -- RISE Dispensaries, a rapidly growing cannabis retail chain owned by Green Thumb Industries Inc. (“Green Thumb”) (CSE: GTII) (OTCQX: GTBIF), today announced that RISE Dispensaries will serve as a premier sponsor of HeadCount’s Cannabis Voter Project, which aims to register and inform voters who support cannabis policy reform. Ahead of this year’s midterm elections, HeadCount and RISE Dispensaries are teaming up to encourage voters to “Roll Up to the Polls” through Cannabis Voter Project resources now available at all RISE-branded locations and online at www.headcount.org/rise.
“There are massive inconsistencies in cannabis policy across America created by long-standing political figures,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “We are proud to partner with HeadCount and the Cannabis Voter Project to increase voter registration. The best way to create change is to drive more people to vote, which is exactly the mission of this partnership.”
HeadCount is a nonprofit, non-partisan voter engagement organization that encourages voter registration and promotes participation in democracy. The organization has partnered with leading festivals and artists including Lollapalooza, Ariana Grande, Billie Eilish, Dead & Company and more to encourage civic engagement.
In 2018, HeadCount launched the Cannabis Voter Project to register and turn out voters interested in cannabis policy, providing online voter registration and an interactive online map of where elected officials stand on cannabis in all 50 states. Leading up to the midterm elections this year, Cannabis Voter Project’s “Roll Up to the Polls” campaign further encourages voters to turn out and exert their power at the ballot box.
“HeadCount is excited to launch our partnership with RISE Dispensaries in time for the midterm elections,” said Sam D’Arcangelo, Director of HeadCount’s Cannabis Voter Project. “The leaders we elect decide how cannabis is treated at the federal, state and local level, so it’s important for the cannabis community to be an active and informed voting bloc. Cannabis Voter Project is grateful to have RISE’s support and we look forward to helping their customers make their voices heard at the polls.”
More information on cannabis policy resources is available at www.cannabisvoter.info and https://risecannabis.com/resources/.
Information on the Cannabis Voter Project will be available at all RISE-branded locations beginning Monday, August 22nd. For more information about RISE store locations and hours, please visit https://risecannabis.com/dispensaries/.
About Green Thumb Industries:
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 4,000 people and serves millions of patients and customers each year. The company was named to Crain’s Fast 50 list in 2021 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.
About Cannabis Voter Project:
Cannabis Voter Project informs, registers and turns out voters who want to change cannabis policy. Launched by civic engagement organization HeadCount.org in 2018, the Cannabis Voter Project believes it’s important for the cannabis community to be an active and informed voting bloc. For more information visit cannabisvoter.info.
About HeadCount:
HeadCount is a non-partisan non-profit organization that harnesses the power of music, culture and digital media to register voters and inspire participation in democracy. Since 2004, we’ve registered over one million voters through our work with musicians like Ariana Grande, Beyoncé, Dead & Co, Harry Styles and Megan Thee Stallion; events including Lollapalooza, Bonnaroo, Pride Festivals, and RuPaul's DragCon; plus partnerships with brands like Spotify, Ben & Jerry’s, and GrubHub. Our award-winning online campaigns have been seen over a billion times, while our 50,000 volunteers can be seen at more than 1,000 live events each year. We reach young people where they already are – at concerts and online – to inform and empower. For more information visit HeadCount.org.
Investor Contact:
Andy Grossman
EVP, Capital Markets & Investor Relations
InvestorRelations@gtigrows.com
310-622-8257
Media Contact:
MATTIO Communications
gti@mattio.com
Source: Green Thumb Industries
https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2022/RISE-Dispensaries-Announce-Premier-Sponsorship-of-HeadCounts-Cannabis-Voter-Project/default.aspx
Tilray Medical Launches New Products and ‘CannaPoints’ Program to Support Patients Across Canada
August 25, 2022 at 7:00 AM EDT
TORONTO, Aug. 25, 2022 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. ("Tilray" or the "Company") (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis and consumer packaged goods company, today announced that its medical cannabis division, Tilray Medical, has released new medical cannabis products, under Tilray and Aphria brands and launched CannaPoints, a new program designed to support patients through their medical cannabis journey.
Blair MacNeil, President, Tilray Canada, said, "We’re proud to expand our medical cannabis portfolio in Canada and broaden our offerings for our growing patient community. Our new CannaPoints program serves to guide our patients on their medical cannabis journey and provide additional support as needed."
In Canada, Tilray Medical offers a broad portfolio of medical cannabis brands including Tilray, Aphria, Broken Coast, and Symbios. Understanding that patient needs are unique, Tilray Medical’s latest release of high-quality medical cannabis products from differentiated brands includes a comprehensive range of THC and CBD products:
Tilray:
Tilray Sinaloa Gold: A high THC sativa strain. Terpenes include d-Limonene, beta-Myrcene, and beta-Caryophyllene.
Tilray Sapphire Scout: A genetic blend of Girl Scout Cookies crossed with True OG. Terpenes include Limonene, Linalool, and Trans-Caryophyllene.
Tilray Chem Cookies: Chem Cookies is a result of two cannabis strains: Chemdawg #4 and Girl Scout Cookies (a.k.a. GSC). Terpenes include d-Limonene, beta-Myrcene, and beta-Caryophyllene.
Tilray Powdered Donuts #8: Powdered Donuts #8 is a high-THC strain. Terpenes include d-Limonene, beta-Myrcene, and beta-Caryophyllene.
Aphria:
Aphria Sherbet Cookies: Sherbet Cookies is a high THC hybrid strain. Terpenes include Humulene, Nerolidol and beta-Caryophyllene.
Aphria Banana Punch: Banana Punch is a high THC hybrid strain made from Banana OG and Purple Punch. Terpenes include limonene, pinene and beta-Caryophyllene.
Aphria Monkey Butter: Monkey Butter is another high THC hybrid strain made from the combination of Gorilla Glue #4 x Peanut Butter Breath. Terpenes also include: Humulene, Cedrene, and beta-Caryophyllene.
To further support the medical cannabis journey for patients, Tilray Medical partnered with Strainprint, a mobile app focused on medical cannabis tracking, to develop the CannaPoints program. Alongside advice from a physician, Tilray Medical patients can use the CannaPoints program to explore new offerings, learn more about strain details, and record the effects, making it easier for them to curate optimal personal consumption schedules, empowering them to tailor their own experiences and earn rewards through the app in the process. Patients can download the app for FREE, and kickstart their journey on the App Store, or Google Play for Apple and Android devices.
About Tilray Medical
Tilray Medical is dedicated to transforming lives and fostering dignity for patients in need through safe and reliable access to a global portfolio of medical cannabis brands, including Tilray, Aphria, Broken Coast, and Symbios. Tilray grew from being one of the first companies to become an approved licensed producer of medical cannabis in Canada to building the first GMP-certified cannabis production facilities in Europe, first in Portugal and later in Germany. Today, Tilray Medical is one of the biggest suppliers of medical cannabis brands to patients, physicians, hospitals, pharmacies, researchers, and governments, in 20 countries and across five continents.
For more information on Tilray Medical, visit Tilray Medical Canada and follow @TilrayMedical on Instagram.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY and TSX: TLRY) is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience of health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.
For more information on how we open a world of wellbeing, visit www.Tilray.com and follow @Tilray on all social platforms.
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things, the Company’s ability to commercialize new and innovative products worldwide. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.
Contacts:
Tilray Global:
Kaitlin Macapagal
news@tilray.com
Investors
Raphael Gross
203-682-8253
Raphael.Gross@icrinc.com
SNDL to acquire rival cannabis player Valens in all stock deal
Aug. 22, 2022 9:54 AM ET
The Valens Company Inc. (VLNS), VLNS:CASNDL
By: Dulan Lokuwithana, SA News Editor6 Comments
SNDL (SNDL) announced Monday that the Canadian cannabis company inked an agreement to acquire the domestic rival The Valens Company (NASDAQ:VLNS) for nearly $138M in an all-stock deal.
Per the terms, SNDL will buy all VLNS common shares other than it already owns in exchange for 0.3334 of SNDL common share for each VLNS share, and VLNS investors will own ~9.5% of the pro forma entity.
The consideration implies $1.26 per VLNS share and indicates a premium of 10% based on the stock’s trailing 30-day volume-weighted average price.
With more than 555K square feet of cultivation and manufacturing space and 185 cannabis stores, the combined entity will be a vertically integrated cannabis platform operating as SNDL Inc. The transaction is expected to close in Jan. 2023.
The transaction is expected to increase SNDL’s cannabis market share to 4.5%, making it one of the top 10 marijuana players. In addition, the companies plan to generate over $10M cost synergies and more than $15M of additional EBITDA annually with the combination.
With nearly $314M in net cash and zero debt, SNDL “will continue to have one of the strongest balance sheets in the North American regulated cannabis industry,” the companies said.
SNDL shares jumped after the company’s Q2 results last week as the company reported C$223.7M in revenue thanks to sales from liquor and cannabis retail segments.
INDIVA REPORTS SECOND QUARTER 2022 RESULTS
INDIVA LAUNCHES PEARLS BY GRÖN GUMMIES AND REMAINS THE NATIONAL MARKET SHARE LEADER IN THE EDIBLES CATEGORY
LONDON, Ontario – August 16, 2022: Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the second fiscal quarter ended June 30, 2022. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). For a more comprehensive overview of the corporate and financial highlights presented in this news release, please refer to Indiva’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Six Months Ended June 30, 2022, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Six Months Ended June 30, 2022 and 2021, to be filed on SEDAR and made available on the Company’s website, www.indiva.com.
“We are very pleased to report record net revenue and gross profit on a year-to-date basis, and expect to see further revenue growth in the second half of 2022, driven by the introduction of more than 25 new SKUs across Canada,” said Niel Marotta, President and Chief Executive Officer of Indiva. “The second quarter was extremely busy operationally, as we began manufacturing new products, including our first commercial batches of Pearls gummies, which were delivered to the OCS subsequent to quarter end. We expect to ship Pearls, and many other new products, to additional provinces in the coming weeks. We are pleased to see improvement in gross margins in the quarter, however as per our June 27, 2022, press release, delays in new product deliveries and lack of provincial delivery appointments in certain provinces in late June caused approximately $1 million of sales to slip into Q3 2022, resulting in declining net revenue on a year-over-year basis. We are very excited for the launch of Pearls by Grön, Indiva Life cookies, lozenges and chocolates, and Dime Vapes. The feedback from key accounts, provincial wholesalers and budtenders across the country has been very positive, and we look forward to continuing to delight of-age Canadian cannabis enthusiasts with the quality and innovation that Indiva products are known for.”
HIGHLIGHTS
Quarterly Performance
• Gross revenue in Q2 2022 was $8.9 million, representing an 8.3% sequential decrease from Q1 2022, and a 9.9% decrease year-over-year from Q2 2021. Year-to-date, gross revenue increased 11.0% year over year to a record $18.6 million.
• Net revenue in Q2 2022 was $8.1 million, representing an 8.5% sequential decrease from Q1 2022, and a 9.7% decrease year-over-year from Q2 2021, due to difficult comparisons versus the introduction of Wana Quick in Q2 2021, and delays in provincial deliveries of new and existing products, causing revenue to slip into the third quarter. Revenue continues to be driven primarily by higher sales of category leading edibles including Wana Sour Gummies and Bhang Chocolate. Year-to-date, net revenue increased 12.1% year over year to a record $17.0 million.
• Net revenue from edible products in the quarter was $7.2 million, down 14.8% from $8.5 million in Q1 2022 and down 13.9% from $8.4 million in the prior year period. Edible product sales represent 89.1% of net revenue in Q2 2022. Year-to-date net revenue from edible products increased 13.0% year-over-year to a record $15.7 million or 92.6% of net revenue.
• Gross profit before fair value adjustments, impairments and one-time items declined year-over-year, but increased sequentially, to $2.7 million, or 33.1% of net revenue, versus 29.6% in Q1 2022 and 30.1% in Q2 2021. The improvement in gross margin was due to lower material costs on certain inputs, improved production efficiencies and lower returns and impairments to inventory, offset by lower revenues and lower overhead absorption on goods sold in the quarter. Year-to-date, gross profit before fair value adjustments, impairments and one-time items increased to a record $5.3 million, or 31.3% of net revenue, versus $4.2 million or 27.6% of net revenue in the corresponding period last year.
• In Q2 2022, Indiva sold products containing 44.2 million milligrams of distillate, the active ingredient in edible products, which represents a 19% decrease when compared to the 54.5 million milligrams in products sold in Q1 2022, and a 16% decrease compared to 52.5 million milligrams sold in Q2 2021.
• Impairment charges in the quarter totaled $0.52 million. This impairment includes a write off of aged finished goods and bulk cannabis flower, and to a lesser extent, certain packaging for obsolete products, offset by a recovery on oil-based products. The Company will continue to work to monetize any impaired inventory which remains saleable. The Company expects lower inventory impairments going forward as most of the bulk flower inventory originating from terminated contract manufacturing has either been sold or written down.
• Operating expenses in the quarter decreased 0.4% sequentially, representing 42.9% of net revenue, versus 39.4% in Q1 2022 and 34.4% in Q2 2021. Operating expenses declined due to lower general and administrative costs, which were down 18.8% year-over-year and down 6.1% sequentially, offset by higher marketing costs and sales commissions. Year-to-date, operating expenses increased by 31.2% to $7.0 million due entirely to higher marketing costs and sales commissions.
• Adjusted EBITDA improved sequentially in Q2 2022 to a loss of $0.15 million, versus a loss of $0.38 million in Q1 2022, and declined versus a profit of $0.49 million in Q2 2021, due to lower revenue and higher marketing expenses, offset by lower cost of goods. Year-to-date, adjusted EBITDA was a loss of $0.53 million versus a loss of $0.01 million in the corresponding period last year. See “Non-IFRS Measures” below.
• Comprehensive net loss of $2.5 million included one-time expenses and non-cash charges for impairment of inventory and property, plant and equipment totaling $0.5 million. Excluding these charges, comprehensive loss declined to $2.0 million versus an adjusted loss of $2.02 million in Q1 2022 and $0.72 million in Q2 2021.
Operational Highlights for the Second Quarter 2022
• Dime Industries (“Dime”): Indiva signed an exclusive licensing and manufacturing agreement with Dime. The agreement has a five year term which automatically renews for three additional five year terms. Indiva intends to launch Dime’s proprietary and innovative vape products, including disposable vapes, 510-thread carts and custom batteries beginning in Q3 2022, marking Indiva’s first entrance into the vape category.
• Awards: Artisan Batch was awarded Best in Grow from Cannabis NB for best Indica flower, namely Sour Glue, produced by Purplefarm Genetics.
• Indiva launched additional SKUs including Artisan Batch Mimosa Live Rosin. Wana Passion Fruit, Wana Lemon Iced Tea, and Wana Quick Rise and Shine Clementine, with CBG.
• Indiva introduced its new consumer brand Indiva Life at the 2022 Lift&Co conference. The initial cannabis products to be launched under the Indiva Life brand will include edibles and extracts. All of the Indiva Life SKUs are now actively being ordered by provincial wholesalers.
Events Subsequent to Quarter End
• Indiva was awarded 25 additional SKU listings by the Ontario Cannabis Store (OCS), including five SKUs which will participate in the “Flow-Through” program. These additional listings bring Indiva’s OCS listings to a total of 60 SKUs, up from the current level of 35 SKUs. The newly accepted SKUs are across six brands: Indiva Life (including lozenges, cookies and chocolates), Artisan Batch, Pearls by Grön, including three SKUs in addition to the initial four Pearls SKUs delivered in July, Pips by Grön, Dime Vapes and Bhang Chocolate. All SKUs are expected to launch in Ontario in October 2022, with deliveries to additional provinces beginning in September 2022.
• Indiva completed an agreement with Kronic Relief, of Toronto, Ontario, to bring its premium craft flower to market under the Artisan Batch brand. The OCS has accepted this cultivar, and 3.5 gram jars of Kronic Relief flower are expected to hit shelves in Ontario in Q4 2022.
• Indiva shipped its initial deliveries of Pearls by Grön to the OCS. The company expects the product to be available for sell-in to Ontario licensed retailers as of August 23rd.
Market Share
• Data from Hifyre Inc. for the second quarter of 2022 shows strong sell-through of Indiva edible products. With 31.6% share of sales, Indiva continues to lead in the #1 market share position in the edibles category:
•
o Ontario: #1 with 30.2% market share.
o Alberta: #1 with 30.0% market share.
o British Columbia: #1 with 38.1% market share.
o Saskatchewan: #1 with 21.5% market share.
o Manitoba: #1 with 34.6% market share.
o Wana™ Sour Gummies led the edibles category, with 26.0% category share, and 34.1% sub-category share, and Bhang® continued to lead the chocolate category with 37.6% sub-category share.
o Product ranking in Q2 2022 showed 6 of the top 10 edible SKUs are from Indiva.
o Based on data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category increased by 9% in Q2 2022 to $56.3 million in retail sales from $51.8 million in Q1 2022.
Correction of Prior Period Financial Statements
The Company identified an error in the calculation of excise taxes related to additional duty charged by certain provinces and determined an adjustment is required to excise taxes payable on sales for the period of January 1, 2020 to March 31, 2022. As a result, prior years amounts on the consolidated statements of loss and comprehensive loss with respect to excise taxes, cost of sales, and marketing and sales were corrected to reflect the corrected excise tax payable on sales in those periods, as well as royalty and sales commissions which are recoverable as a result of decreased net revenues for those prior period sales. Management assessed the materiality of the correction described above on prior period financial statements and concluded that these corrections were not material to any prior annual or interim periods. Accordingly, amounts related to the three and six ended June 30, 2021, and as at June 30, 2021, and December 31, 2021, have been re-presented after correction of such immaterial adjustments solely for comparability purposes.
Outlook
• The Company expects Q3 2022 and 2H 2022 net revenue to be higher sequentially and year-over-year driven primarily by new product introduction including Pearls gummies, Dime Industries vape products, as well as new Indiva Life branded products, resulting from in-house innovation, namely Double-Stuffed Vanilla Cookies and Double Stuffed Fudge Cookies, as well as Wild Cherry THC Lozenges and Lemon THC Lozenges.
• Margins are expected to benefit in the second half of 2022 due to the implementation of automation in the production and packaging of edible products. The Company expects to deliver on its commitments for existing or new listings of products, despite some delays in receiving equipment due to global COVID-19-related lockdowns.
Operating and Financial Results for the Three and Six Months ended June 30, 2022 and 2021
See the rest here:
https://www.indiva.com/press-releases/releases-2022/indiva-reports-second-quarter-2022-results/
FIRE & FLOWER ANNOUNCES CHANGE IN BOARD OF DIRECTORS
AUGUST, 12, 2022
TORONTO, Aug. 12, 2022 /CNW/ - Fire & Flower Holdings Corp. ("FFHC", "Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF) announces that Guillaume Léger has tendered his resignation from the board of directors of the Company (the "Board") effective August 11, 2022. Mr. Léger was elected to the Board of the Company at its annual general and special meeting of shareholders held on July 25, 2022, pursuant to the terms of an investor rights agreement between the Company and ACT dated August 7, 2019 (the "IRA").
F&F logo (CNW Group/Fire & Flower Holdings Corp.)
Pursuant to the terms of the IRA, ACT has designated Suzanne Poirier as its nominee to the Board to replace Guillaume Léger. The Board intends to appoint Ms. Poirier to the Board effective August 11, 2022 to fill the vacancy created by the resignation of Mr. Léger.
"On behalf of the Board of Directors, I welcome Suzanne to the Board as Fire & Flower and Alimentation Couche-Tard continue their strategic partnership," said Donald Wright, chair of the Board.
Ms. Poirier is Senior Vice President of Operations for ACT and is based in Montreal, Quebec. She joined ACT in 2018 as Vice President and Controller and since held various roles with progressively increasing responsibilities including Global Finance and Supply Chain Optimization and VP of North America Operations Excellence. Prior to ACT, she held the position of Vice President Financial Planning, at the Canadian National Railway, and Senior Vice President Finance & Strategic Planning at Sobeys. She also held various controller positions with Canadian National Railway Company from 2010 to 2015 and with Imperial Tobacco Canada Limited from 2000 to 2010. Ms. Poirier brings considerable knowledge in publicly held companies. She has over 30 years of experience within a broad set of roles in financial management, supply chain and operations. Ms. Poirier earned a Graduate Diploma in Accountancy and a Bachelor of Commerce degree in Accountancy, with Distinction from Concordia University and is a Canadian CPA. She was also Audit Committee Chair of GURU Organic Energy Corp. from 2020 to 2022.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre digital retail and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, logistics, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit https://www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of FFHC at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of FFHC, which may cause FFHC's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct.
FFHC assumes no obligation to publicly update or revise forward-looking statements to reflect new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Fire & Flower Holdings Corp.
Aleafia Health Announces $12.0 Million Total Net Revenue in First Quarter, Representing a 13% Increase Over the Prior Year
https://mailchi.mp/aleafiahealth.com/aleafia-health-announces-120-million-total-net-revenue-in-first-quarter-representing-a-13-increase-over-the-prior-year?e=02506ded3e
• 31% increase in branded cannabis net revenue[1] to $10.0 million from $7.6 million in the prior year
• #12 ranking for market share in core markets[2] for Q1 FY2023
• In the Ontario value category, Divvy has attained #5 market share in pre-roll and #7 in flower
• Secured new international partnership representing approximately $4.6 million sales commitment
• 12% increase in medical cannabis net revenue[3] over the prior quarter
• 7.5% market share in overall Canadian medical market
• Reaffirmed guidance of $53.0 to $63.0 million in net revenue in FY2023[4]
• Trending towards breakeven Adjusted EBITDA[5] profitability with -$0.9 million in Q1 FY2023; reaffirmed guidance of achieving run-rate breakeven Adjusted EBITDA in FY2023[6]
• Nitecaps, a breakthrough melatonin-CBD product launch in current quarter
TORONTO, August 11, 2022 – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is pleased to report its financial results for the three months ended June 30, 2022, its first quarter of its fiscal year ending March 31, 2023 (“FY2023”).
Branded cannabis net revenue, quarter over quarter, increased 25%: Aleafia Health continued its upward sales growth trend, with branded cannabis net revenue increasing 24% to a record $10.0 million from $8.0 million quarter over quarter. In the key branded adult-use market, the Company’s net revenue[7] increased 107% to $6.7 million from $3.2 million in the same period last year.
“Our pivot to a branded cannabis strategy is the success story driving the three pillars of company revenue: adult-use branded cannabis, a ‘sticky’ recurring medical cannabis revenue stream and growing higher margin international sales,” said Aleafia Health CEO Tricia Symmes. “As a result of revenue increases, the Company has achieved the 2nd highest growth rate amongst top 12 Canadian LPs in retail sell through over the prior quarter while achieving a #12 ranking for market share in our core markets for Q2 CY2022.”[8]
“Due to our successful branded growth strategy, the Company continues to target a top 10 standing[9] in our key markets and reaffirms our expectation to reach breakeven Adjusted EBITDA profitability during the second half of FY2023,”[10] said Aleafia Health CFO Matt Sale. “Showing continued success in retail sell through provides us the confidence to reaffirm our guidance to deliver at least $53 million in total net revenue in fiscal year 2023[11], with a current run-rate of $48 million.”
Divvy Brand Leadership: “In each of the three largest revenue categories - flower, pre-rolls and vapes - the Company is gaining in market share and continuing to deliver excellent growth rates,” Symmes said. “In the Ontario value category, Divvy flower enjoys a #7 market share ranking (with 3.4% share), pre-rolls enjoy a #5 ranking (with a 6.9% share), and our recently launched vape products continue to grab market share amidst a highly competitive format, and enjoy a 1.4% market share.”[12]
Medical: The Company reported a 4% increase in medical cannabis net revenue to $2.8 million in Q1 FY2023 over $2.5 million in the prior quarter. This represents a $11 million run-rate net revenue base. Moreover, the Company has attained a milestone 7.5% market share in the overall Canadian medical market, according to Health Canada data.[13] “In a competitive medical cannabis segment, market share has increased and we have restarted our growth trajectory over the last two quarters,” said Symmes. “We continue to penetrate the Quebec market with a 71% quarter over quarter increase in patient registrations. Growth in Quebec has helped to offset industry wide medical channel decline which has also affected our business. Sales to veterans also increased 4% quarter over quarter.”
“Anchored by our Emblem brand, we continue to view medical as a core part of our diversified sales mix, and is synergistic with our branded adult-use channel given the ability to sell products into both segments," said Sale.
International Revenue Growth: “International revenue is a competitive advantage and a differentiating factor for Aleafia, as we leverage our high quality, diversified flower supply and export it to the higher margin international sales markets,” Symmes said. “Current international agreements have led to more than $0.5 million in sales to Germany and Australia this quarter. We have also secured a new European partner with a $4.6 million sales commitment, representing further channel development. International success leverages both the Company’s products and its brands.”
“The newly signed agreement improves revenue and cash flow visibility, locks in attractive margins, and improves our overall cash conversion cycle and net working capital performance,” said Sale.
Continued Cost Rationalization: “We are striving to achieve breakeven Adjusted EBITDA profitability by the end of FY2023,” Sale said. “Firstly, we are increasing revenue by capturing market share. SKU optimization has furthered revenue growth, which aligns the portfolio with the highest selling product formats with strongest margins, coupled with moderate and strategic price increases. Second, we are relentlessly focused on cost rationalization. In addition to difficult headcount reductions and other initiatives, the Company has engaged in vendor consolidation to reduce complexity across sites while negotiating trusted vendor price improvements due to economies of scale. With all of these efforts combined, the Company has extracted $20 million in annualized SG&A savings over the last four quarters, and break-even Adjusted EBITDA profitability is within our grasp during FY2023, a milestone for the Company.”
“On the cultivation side of the business, all processes in our Grimsby, Ont. hybrid greenhouse have been remapped to allow it to meet anticipated growing throughput of high potency THC flower,” said Sale. “With strategic investments to improve flower consistency and quality, we continue to see steady improvements in Grimsby.”
New Nitecaps: “In Q1 FY2023, the Company completed development on a breakthrough product that has just been brought to the Ontario and Alberta markets this month,” said Symmes. “Our Noon & Night Nitecaps softgels with CBD suspended in melatonin and-MCT oil are an industry first.”
“We are highly strategic and thoughtful about our new product roll-outs. In this case, Nitecaps can be leveraged in the adult-use and medical channels as sleep is top-of-mind for many patients, addressing an unmet consumer need,” said Sale.
“Aleafia Health today is a vastly different Company than it was one year ago,” said Symmes. “With an extraordinary team of people at all levels, we are now positioned to reach new heights, supported by cost containment, a transforming balance sheet, and new equity financing. We are now rooted in a new era, with a relentless drive toward profitability and increased market share capture.”
For Investor & Media Relations:
Matthew Sale, CFO
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
The Company is a federally licensed Canadian cannabis company offering cannabis products in Canadian adult-use and medical markets and in select international markets, including Australia and Germany. The Company operates a virtual medical cannabis clinic staffed by physicians and nurse practitioners which provide health and wellness services across Canada.
The Company owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the largest, outdoor cannabis cultivation facility in Canada. The Company produces a diverse portfolio of cannabis and cannabis derivative products including dried flower, pre-roll, milled, vapes, oils, capsules, edibles, sublingual strips, and topicals.
Forward Looking Information
Certain statements herein relating to the Company constitute “forward looking information”, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance, are “forward-looking information”. Such forward-looking statements involve unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward looking statements include, but are not limited to, statements with respect to our market share, net revenue, branded cannabis net revenue, Adjusted EBITDA, and other financial outlook projections for fiscal year 2023, our commercial operations, including production and / or sales of cannabis, quantities of future cannabis production, anticipated revenue in connection with such sales, and other Information that is based on forecasts of future results, estimates of production not yet determinable, and other key management assumptions. The following material factors or assumptions were used to develop the forward looking information: market size and growth of the Canadian adult-use and medical cannabis markets, retail store penetration, script trends, cultivation and processing capacity, costs of production, gross and net revenue per gram. Actual results may differ materially from those expressed or implied by such forward looking statements and involve risk and uncertainties relating to: future cultivation yield and quality, actual operating performance of facilities, product launches, facility licenses and amendments, average selling prices, cost of goods sold, operating expenses, Adjusted EBITDA, regulatory changes in the Canadian and international markets, and other uninsured risks. The forward looking information was approved by Management as of August 10, 2022. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. The forward looking information is provided for information purposes only and readers are cautioned that it may not be appropriate for other purposes. This presentation is provided for general information purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security in any jurisdiction.
Tilray Wellness Announces U.S. Distribution Agreement with Southern Glazer’s Wine & Spirits for CBD Beverages
The distribution agreement will provide Tilray with direct access to Southern Glazer’s distribution network, reaching consumers everywhere, from local bars and restaurants to independent and national grocery chains and convenience stores.
NEW YORK, Aug. 10, 2022 - PRESS RELEASE - Tilray Brands, Inc., a global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, announced that Fresh Hemp Foods, Ltd., a part of the company’s Tilray Wellness division, has signed a distribution agreement with Southern Glazer’s Wine & Spirits, the preeminent distributor of wine and spirits. The distribution agreement will provide Tilray Wellness with direct access to Southern Glazer’s distribution network, reaching consumers everywhere, from local bars and restaurants to independent and national grocery chains and convenience stores.
Jared Simon, president, of Tilray Wellness and Fresh Hemp Foods, said, “This agreement helps Tilray uniquely position itself to enter the multi-billion-dollar adult beverage category with a non-alcoholic, CBD beverage alternative for consumers who want to relax and unwind.”
As a distributor of beverage alcohol and CBD beverages in the U.S., Southern Glazer’s will be the exclusive distribution partner for the Tilray Wellness CBD beverage portfolio across 13 states with additional opportunities to scale nationwide. This strategic agreement will allow Tilray Brands to develop a U.S. CBD beverage portfolio within familiar retail channels, which will transition the category out of the fringe and into the mainstream. Tilray is excited to tap into the industry’s most knowledgeable CBD sales team and be part of their industry-leading Proof e-commerce platform, so retailers can access its CBD Beverage portfolio 24/7.
INDIVA TO REPORT SECOND QUARTER RESULTS PRE-MARKET ON TUESDAY, AUGUST 16, 2022
LONDON, Ontario – AUGUST 8, 2022: Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, will report its results for the quarter ended June 30, 2022 pre-market on Tuesday, August 16, 2022.
CONFERENCE CALL – Tuesday, August 16, 2022 at 8:30 a.m. (EST):
The Company will host a conference call to discuss its results on Tuesday, August 16, 2022 at 8:30 a.m. (EST). Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID number is 34309929.
A recording of the conference call will be available for replay following the call. To access the recording please dial 416-764-8691 or 1-877-674-6060. The replay ID is 309929#. The recording will remain available until Friday, September 16, 2022.
ABOUT INDIVA
Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva produces and distributes award-winning cannabis products nationally, including Bhang® Chocolate, Wana™ Sour Gummies, Jewels Chewable Tablets, Grön edibles, Dime Industries™ vape products, as well as capsules, edibles, extracts, pre-rolls and premium flower under the INDIVA, Indiva Life and Artisan Batch brands. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.
INVESTOR CONTACT
Anthony Simone
Phone: 416-881-5154
Email: ir@indiva.com
DISCLAIMER AND READER ADVISORY
General
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this news release contains forward-looking information relating to the proposed telephone conference call expected to be held by the Company on August 16, 2022. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake to, update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
Unifor members to elect new national president in Toronto this week
Green Thumb Industries: Still At The Top In Cannabis
Aug. 09, 2022 11:00 AM ET
By: Ted Waller
Summary
• Green Thumb is one of the strongest companies in the still emerging cannabis industry.
• Second quarter results confirm Green Thumb's strength and path to success.
• With a share price disconnected from fundamentals, investors should maintain or increase their allocation to Green Thumb.
Introduction
Green Thumb Industries Inc's (OTCQX:GTBIF) 2nd quarter 2022 results are out, and it's time to review the company's status as one of the pre-eminent companies in the fast-growing cannabis industry. This report will be in two parts. First, we will review the financial data for the latest quarter. Second, we will highlight some of the intangibles, things that provide insights into management and company culture, that were discussed in the earnings call. These intangibles are often overlooked but are at least as important as the quarterly numbers that are so closely scrutinized every three months, and perhaps more important to long term success.
The numbers
Revenues were a record $254.3 million, a 4.8% increase sequentially (up 14.6% over Q2 2021), returning to positive growth after a slight decline in the previous quarter. Net income was $24.4 million (.10 per share), up sequentially from $22.1 million. This was the eighth consecutive quarter of positive GAAP earnings, which far surpasses any other MSO.
Green Thumb has essentially two lines of business: retail and consumer packaged goods [CPG]. The 14.6% revenue growth vs. Q2 2021 came entirely from the retail side: the opening of adult-use sales in New Jersey, higher retail sales in the growing Illinois market, the addition of 19 retail stores since Q2 2021, and increased traffic in the 77 stores Green Thumb now operates.
CPG revenue comes from selling packaged product to their own retail outlets and other companies, and flat CPG revenue is consistent with trends throughout the industry. CPG business has been capacity constrained, as companies struggle to supply enough product to meet demand. We saw this most recently in New Jersey, where adult use was delayed until companies could prove they could meet the anticipated demand. In addition, recent inflation and consumer insecurities have started a shift to lower cost value product lines, which mean lower total sales. Interestingly, Founder/CEO Ben Kovler noted in the earnings call that the profit margins from value products were similar to premium lines, which is good news for the bottom line.
Overall, the company reported pricing headwinds in Maryland, Pennsylvania, Massachusetts, and Nevada that counteracted stronger sales in New Jersey and elsewhere. Shareholders should temper expectations for the much hyped New York market, where regulations, delays and taxes are dragging down the future for cannabis. CEO Kovler continues to be enthusiastic about positioning Green Thumb in new and expanding markets. The furious geographic expansion of cannabis in recent years continues unabated. Green Thumb was there when New Jersey initiated adult use earlier this year, and will be in New York, Connecticut, and Rhode Island when they begin later in 2022. A regulatory logjam in Green Thumb's home market of Illinois has finally been cleared. Virginia is on tap for 2023. Numerous states, including Ohio, Missouri, Arkansas, South Dakota, and Oklahoma, are preparing adult use ballot initiatives for this year that will keep the growth pipeline flowing in 2024 and beyond. Readers should note that cannabis ballot initiatives have had a 100% success rate.
As I wrote in a recent article, cash flow is perhaps the single most important financial metric for any company. For the first time in 10 quarters (also an industry record), Green Thumb had negative cash flow of -$15.4 million. While this surprised shareholders, management stated in the earnings call that it was expected. They gave three reasons. First, there were two large tax payments totaling $65 million vs. none in the first quarter. Second, There were large inventory builds in Maryland and Ohio, and inventory builds often skew quarterly results. Third, 2021 compensation bonuses were scheduled for this quarter. Management is confident Green Thumb will quickly resume its industry leading positive cash flow.
Gross profit margin, which is sales minus the cost of goods sold, [COGS] is an important measure of performance. An increasing gross margin percentage indicates the company is doing a better job in sales and/or becoming more efficient in production. For the latest quarter, Green Thumb gross profit increased by $2.9 million sequentially to $125.8 million, but the gross margin declined from 55.4% a year ago to 49.5%. This reflects the margin compression seen across the industry from increased competition and cost inflation, which overtook increased overall sales. It also included a negative impact of 1.5% from reclassifying certain expenses from SG&A to COGS, which will reduce future taxes on an ongoing basis.
What the numbers mean for investors
Taken as a whole, the Q2 2022 results reflect a steady hand in the C-suite and a robust company strategy. Sales and profits continue to go up. The number of stores increases to position the company where growth will be strong. There were few surprises, which shows the company's skill in managing investor expectations and delivering on promises. The biggest surprise, negative cash flow, was fully discussed in the earnings call (as reported above) and does not appear to be cause for concern. Management also acknowledged that the stickier issues of cost inflation, consumer sentiment, and margin compression are affecting business performance. The first two will change sooner or later. The third is a normal part of any developing industry, not a sign of impending doom that some commenters suggest. Overall, the Q2 results show a company still on track to be one of the dominant players in cannabis.
The message for investors from the latest quarter is to stay the course. The forward P/E estimate for 2023 is 31, which is respectable for an emerging growth company. The 2024 P/E estimate is 21, which matches the current S&P500 P/E and significantly below the norm for a company like Green Thumb. Since 2017 revenues have jumped from $40 million to $893 million and the company has become consistently profitable, but as the chart below shows the share price is the same as five years ago. It's only a matter of time before the stock catches up to financial performance, and now is a very good time to add to your Green Thumb investment or start a position.
As with any emerging growth company, there are risks. Margin compression is here to stay. The stock price is somewhat tied to the economy and investor sentiment, both of which could remain as headwinds for some time. Inflation could continue to hurt sales and profit margins. The big catalyst, federal cannabis reform legislation, could mean stock gains of 100%, 200% or more, but its progress in the short term is uncertain.
More important than the numbers
The most important factor in business success is the quality of management. Superior management takes advantage of good business conditions and surmount bad business conditions. At a higher level, it establishes principles and values that define the company's "personality" and overarching approach to business, and promotes business success. It establishes the way the company does business and informs short- and long-term decision making. Assessing management quality can be difficult, but one way is to study a company's principles and how committed they are to following them.
Green Thumb has stated their principles explicitly, and the earnings call included evidence that they are following through. CFO Anthony Georgiadis underscored their importance by making them the last item investors heard in his earnings report. They are:
1. Tune out the noise: Green Thumb doesn't make decisions based on stock price action or investor sentiment. They are willing to take actions like the reclassification of SG&A expenses reported above that might hurt a quarterly report if it benefits the long term business. In a different vein, they put investors on notice in the earnings call that they are ignoring the noise about federal legislation, or as CEO Kovler put it, "Despite the noise [about legislation] we are doing what we do best, keeping our heads down on execution and our eyes on the prize."
2. Be the consumer: Everything the company does is based on the consumer. In any industry, having customers that feel satisfied, respected, and understood is a key to success. One small example: retail staff at Green Thumb are not "budtenders," they are "People Care Specialists." The recent push into value products is another example.
3. Watch the cash: No one watches cash better than Green Thumb. As reported above and in my recent article titled Green Thumb: Undisputed Cash Flow Champion In Cannabis, the company is the industry leader in cash flow and GAAP income. Their cash stewardship has been rewarded by allowing them to borrow money at an industry best 7%.
4. Be opportunistic when others are fearful: Over the past year, as stock prices plummeted, consumers lost confidence, and inflation hit hard, Green Thumb continued its full bore expansion, opening 19 stores, expanding cultivation, and developing new product lines. They invested $69 in capital expenditures in the latest quarter.
Finally, CEO Kovler ended the earnings presentation with what he called "one of the most important aspects of our culture" - giving back to the community. Green Thumb is on track to donate over $1 million in support of communities damaged by the war on drugs by the end of the year. Although many investors may view such initiatives as a distraction or an afterthought, businesses don't operate in a hermetic customer-company dyad. They operate in communities, and a healthy community fosters a healthy company. It is a big advantage that Green Thumb sees beyond quarterly profit and loss and understands the bigger picture.