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MediPharm Labs Expands CBN Portfolio with Two New Products
https://www.medipharmlabs.com/news/press-releases/detail/196/medipharm-labs-expands-cbn-portfolio-with-two-new-products
November 23, 2021
A leader in CBN products, MediPharm Labs, adds CBN:CBD products to its wellness portfolio for consumers and patients looking for a product without THC effects.
New CBN products include CBN:CBD 1:2 Relax Formula Oil and a Northbound high CBN and high CBD vape cartridge.
BARRIE, Ontario, Nov. 23, 2021 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a pharmaceutical company specialized in precision-based cannabinoids, is pleased to announce the expansion of its unique cannabinol (“CBN”) product line.
“Once again MediPharm Labs continues to innovate and commercialize unique cannabinoids. Our exciting new CBN:CBD is a unique formulation that allows consumers a CBN product without the effects of THC. This is an exciting addition to our wellness line of products which is produced to a pharmaceutical quality standard in a GMP licensed facility,” said Bryan Howcroft, CEO, MediPharm Labs. “Remaining on the forefront of innovation, MediPharm continues its pursuit to be recognized as the best precision-based cannabinoid company in the world.”
These new products are the latest being launched after the success of the Company’s CBN:THC Nighttime Formula and Northbound High CBN vape cartridge launched in the second quarter of 2021. CBN is typically found in only trace quantities in the cannabis plant but can be formed through oxidation of THC. Like THC, it binds to the endocannabinoid CB1 receptors but binds 8-10 times less strongly resulting in less psychoactive effects than THC at the same dose.
The Company believes this product addresses an untapped market and is likely to surpass the success of the two current CBN:THC products which, based on October 2021 sales, have an annualized revenue of $1.65M, net of excise duty.
As of today, these new products will be available in Ontario in both retail stores and on the OCS.ca e-commerce website, with plans to distribute to the Company’s other six provincial distributors in the coming months.
The Company looks forward to further communicating new products to improve revenue from Canadian distribution. The Company’s Canadian distribution also acts as proof of concept for international distribution and large pharmaceutical and natural health product contract manufacturing services, given MediPharm Labs’ unique GMP Drug Establishment and Natural Health Product manufacturing licenses.
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 License from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing License for the extraction of natural cannabinoids.
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: being recognized as the best precision-based cannabinoid company in the world; addressing an untapped market; surpassing success of previous products; distribution to additional provinces; and Canadian distribution acting as proof of concept for international distribution and large pharmaceutical and natural health product contract manufacturing services. 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: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website 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, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
For further information, please contact:
MediPharm Labs Investor Relations
Telephone: +1 416.913.7425 ext. 1525
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
Primary Logo
Source: MediPharm Labs Corp.
Released November 23, 2021
Thanks GE --->>> POMMIES RECEIVES MICRO-PROCESSING LICENCE FROM HEALTH CANADA FOR GREATER TORONTO AREA FACILITY
TYLER ROBSON, CEO, CHAIR AND CO-FOUNDER OF THE VALENS COMPANY HONOURED AS RECIPIENT OF CANADA’S TOP 40 UNDER 40® FOR 2021
ROBSON RECOGNIZED FOR EXCEPTIONAL ACHIEVEMENTS IN INNOVATION, LEADERSHIP, IMPACT AND SOCIAL RESPONSIBILITY
https://thevalenscompany.com/press-releases/tyler-robson-ceo-chair-and-co-founder-of-the-valens-company-honoured-as-recipient-of-canadas-top-40-under-40-for-2021/
Kelowna, B.C., November 18, 2021 – The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) (the “Company,” “The Valens Company” or “Valens”), a leading manufacturer of cannabis products, announced today that Tyler Robson, CEO, Chair and Co-Founder of The Valens Company has been selected as a recipient of Canada’s Top 40 Under 40® for 2021.
Canada’s Top 40 Under 40® is an annual leadership award that recognizes exceptional achievement by 40 outstanding Canadians who are under the age of 40. Founded in 1995 by Caldwell, Top 40 has recognized almost 1,000 outstanding Canadians and is the country’s most coveted award for young business and community leaders. Top 40 alumni now include hundreds of nationally and internationally prominent CEOs, executives, and entrepreneurs in the private, public and social economy sectors.
Robson and his peers were selected from hundreds of nominees by a respected and independent Advisory Board, comprising 30 diverse leaders from across Canada. Four key criteria were assessed to select the recipients: Vision & Innovation, Leadership, Impact & Influence, and Social Responsibility.
“Achieving Top 40 signals a level of dedication and commitment that shows up in Tyler’s leadership style, and is what helps drive and propel our leadership and success of The Valens Company,” said Jeff Fallows, President of The Valens Company. “He is a team player, always ready to lend a helping hand or be a listening ear to someone in need. This approach has not only unified employees, but also enabled Valens to reach all its operational milestones.”
In 2021, Robson led Valens through four major acquisitions, including LYF Technologies, Verse Cannabis, Citizen Stash and Florida-based Green Roads, marking Valens’ expansion into the US. Under his leadership, Robson has made sustainability a core element to Valens’ company culture, developing a sustainable cannabis destruction method specially designed to not only be compliant with Health Canada, but to also be as sustainable and environmentally friendly as possible.
Fallows continued, “Tyler is a one-of-a kind, natural-born leader. We are proud to have him as part of the Valens team and congratulate him on this major accomplishment.”
The 2021 Top 40 Recipients were announced today in the National Post. Recipients will be honored at a series of events to take place in the coming months.
At Valens, it’s personal.
ABOUT THE VALENS COMPANY
The Valens Company is a leading manufacturer of cannabis products with a mission to bring the benefits of cannabis to the world. The Company provides proprietary cannabis processing services, in addition to best-in-class product development, manufacturing, and commercialization of cannabis consumer packaged goods. The Valens Company’s high-quality products are formulated for the medical, health and wellness, and recreational consumer segments, and are offered across all cannabis product categories with a focus on quality and innovation. The Company also manufactures, distributes, and sells a wide range of CBD products in the United States through its subsidiary Green Roads, and distributes medicinal cannabis products to Australia through its subsidiary Valens Australia. In partnership with brand houses, consumer packaged goods companies and licensed cannabis producers around the globe, the Company continues to grow its diverse product portfolio in alignment with evolving cannabis consumer preferences in key markets. Through Valens Labs, the Company is setting the standard in cannabis testing and research and development with Canada’s only ISO17025 accredited analytical services lab, named The Centre of Excellence in Plant-Based Science by partner and scientific world leader Thermo Fisher Scientific. Discover more on The Valens Company and its subsidiaries at http://www.thevalenscompany.com.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jeff Fallows
The Valens Company
Investor Relations
ir@thevalenscompany.com
1 647.956.8254
KCSA Strategic Communications
Phil Carlson / Elizabeth Barker
VLNS@kcsa.com
1 212.896.1233 / 1 212.896.1203
Media
KCSA Strategic Communications
Anne Donohoe
adonohoe@kcsa.com
1 212.896.1265
NOTICE REGARDING FORWARD LOOKING STATEMENTS
All information included in this press release, including any information as to the future financial or operating performance and other statements of The Valens Company that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “forecasts”, “future”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “should”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, future outcomes of transactions, economic conditions, and anticipated courses of action. Investors and other parties are advised that there is not necessarily any correlation between the number of SKUs manufactured and shipped and revenue and profit, and undue reliance should not be placed on such information.
The risks and uncertainties that may affect forward-looking statements include, among others, that the potential benefits of the Consolidation, including the effect on the Company’s application to list its Common Shares on the NASDAQ, will not be achieved, Canadian regulatory risk, Australian regulatory risk, U.S. regulatory risk, U.S. border crossing and travel bans, the uncertainties, effects of and responses to the COVID-19 pandemic, reliance on licenses, expansion of facilities, competition, dependence on supply of cannabis and reliance on other key inputs, dependence on senior management and key personnel, general business risk and liability, regulation of the cannabis industry, change in laws, regulations and guidelines, compliance with laws, limited operating history, vulnerability to rising energy costs, unfavorable publicity or consumer perception, product liability, risks related to intellectual property, product recalls, difficulties with forecasts, management of growth and litigation, many of which are beyond the control of The Valens Company. For a more comprehensive discussion of the risks faced by The Valens Company, and which may cause the actual financial results, performance or achievements of The Valens Company to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to The Valens Company’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on The Valens Company’s website at www.thevalenscompany.com. The risks described in such Annual Information Form are hereby incorporated by reference herein. Although the forward-looking statements contained herein reflect management’s current beliefs and reasonable assumptions based upon information available to management as of the date hereof, The Valens Company cannot be certain that actual results will be consistent with such forward-looking information. The Valens Company cautions you not to place undue reliance upon any such forward-looking statements. The Valens Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell or a solicitation to buy or sell securities of The Valens Company.
Agreed
CVS Health announces steps to accelerate omnichannel health strategy
Thursday, November 18, 2021
Prem Shah to become company's first Chief Pharmacy Officer
Shah and Michelle Peluso named Co-Presidents of retail business effective January 1, 2022
New retail footprint strategy aligned to evolving consumer needs
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced several steps to support its strategy of making health care more affordable, accessible and convenient for consumers.
Prem Shah has been named to the newly created role of Chief Pharmacy Officer and will oversee the omnichannel pharmacy strategy, effective immediately. On January 1, 2022, Shah and Michelle Peluso will become Co-Presidents of CVS Health's retail business, with Peluso overseeing front-store strategy and operations. Shah joined CVS Health in 2013 and is currently Executive Vice President, Specialty Pharmacy and Product Innovation. Peluso joined CVS Health in 2021 as Executive Vice President and Chief Customer Officer.
"Prem and Michelle are ideally suited for their new roles and will be instrumental to CVS Health as we continue to execute against our strategy of delivering an integrated health care experience centered around the consumer," said Karen S. Lynch, President and CEO of CVS Health.
Shah will report directly to Lynch in his new role, and Peluso will continue to report directly to Lynch.
In connection with the changes announced today, Neela Montgomery, currently Executive Vice President and President, CVS Retail/Pharmacy, has decided to leave the company. Montgomery will remain in her role until the end of 2021, ensuring a smooth transition of responsibilities.
Lynch added, "We appreciate Neela's contributions during an incredibly challenging and dynamic period when our retail stores played a critical role in the country's fight against COVID-19. We value the leadership she has provided during a time of evolution in our business and wish her continued success."
As part of the company's strategic review of its retail business, CVS Health will also create new store formats to drive higher engagement with consumers. Three distinct models will serve as community health destinations:
• Sites dedicated to offering primary care services;
• An enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs; and
• Traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care and other convenient retail offerings.
The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business. As part of this initiative, CVS Health will reduce store density in certain locations and close approximately 300 stores a year for the next three years. The company is committed to offering impacted colleagues roles in other locations or different opportunities as part of its overall workforce strategy. These changes will begin in the spring of 2022.
"Our retail stores are fundamental to our strategy and who we are as a company," said Lynch. "We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence."
In connection with the planned store closures, the company expects to record an impairment charge in the fourth quarter of 2021 of between $1.0 billion and $1.2 billion or between $0.56 and $0.67 of diluted earnings per share related to the write down of operating lease right-of-use assets and property and equipment. As a result of the planned store closures, the company has revised its full year 2021 GAAP EPS guidance range to $5.46 to $5.67 from $6.13 to $6.23. These impairment charges are excluded from the company's calculation of Adjusted EPS. The company expects the impact to Adjusted EPS to be immaterial in 2021 and 2022, and modestly accretive in 2023 and thereafter. The company confirms its full year 2021 Adjusted EPS guidance range of $7.90 to $8.00 and confirms its full year 2021 cash flow from operations guidance range of $13.0 billion to $13.5 billion.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Cautionary Statement Concerning Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include references to CVS Health Corporation's omnichannel pharmacy strategy leadership changes in its retail segment, changes to its retail footprint and its full year 2021 guidance, including the information included in the reconciliations. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021.
You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.
Non-GAAP Measures
The press release includes Adjusted EPS, a non-GAAP financial measure that the company uses to describe its performance. The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance. Non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.
Adjusted EPS is calculated by dividing adjusted income attributable to CVS Health by the Company's weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, store impairments, goodwill impairments, acquisition purchase price adjustments outside of the acquisition accounting measurement period, gains/losses on divestitures, losses on early extinguishment of debt and the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. The adjustments between GAAP diluted EPS and Adjusted EPS include, as applicable, adding back amortization of intangible assets, integration costs related to the Company's acquisition of Aetna Inc., the LTC goodwill impairment, an acquisition purchase price adjustment outside of the acquisition accounting measurement period, a loss on early extinguishment of debt and the store impairments described in this press release.
The following reconciliations of projected net income attributable to CVS Health to projected adjusted income attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our SEC filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021.
Year Ending December 31, 2021
Read the financials here:
https://cvshealth.com/news-and-insights/press-releases/cvs-health-announces-steps-to-accelerate-omnichannel-health
States that legalize or decriminalize marijuana see “large reductions in race-based arrests among adults” while those that maintain prohibition continue to experience “increases in arrest rate disparities,” a new study found.
States that legalize or decriminalize marijuana see “large reductions in race-based arrests among adults” while those that maintain prohibition continue to experience “increases in arrest rate disparities,” a new study found.https://t.co/EHGimjsM3o
— Green Thumb Industries (GTI) (@GTIGrows) November 16, 2021
Earnings Call Transcript--->>> Limited (NDVAF) CEO Niel Marotta On Q3 2021 Results - Earnings Call Transcript
Nov. 16, 2021 10:05 AM ET
Indiva Limited (NDVAF)
Indiva Limited (OTCQX:NDVAF) Q3 2021 Earnings Conference Call November 16, 2021 8:30 AM ET
Company Participants
Niel Marotta - CEO
Jennifer Welsh - CFO
Conference Call Participants
Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output provided is partly edited and is designed as a guide.
Operator
00:05 Good morning, ladies and gentlemen, and welcome to Indiva Limited Q3 twenty twenty one Earnings Conference Call. [Operator Instructions] Note that this call is being recorded on Tuesday November sixteen, twenty twenty one.
00:22 And I would like to turn the conference over to Niel Marotta, CEO. Please go ahead, sir.
Niel Marotta
00:28 Thank you, operator. Welcome, everyone. Thank you for joining us this morning to discuss Indiva’s financial results for the third quarter ended September thirty, twenty twenty one.
00:37 I've got some forward looking statements to read first. Matters discussed in this conference call include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Certain material factors and assumptions were considered and applied in making these forward-looking statements. Additional information regarding these forward-looking statements, factors and assumptions is available on our earnings press release issued today as well in the our risk factor section of the quarterly MD&A and other public disclosure documents available on Indiva's SEDAR profile.
01:10 We're pleased to report strong year over year organic revenue growth for the third quarter of twenty twenty one, as well as record gross margins and our second consecutive quarter of positive adjusted EBITDA. Results continued to be driven by organic growth and sales of our Award winning products, including Bhang chocolate and Wana Sour Gummies. That revenue increased one hundred and fifty five percent year over year, our seventh consecutive quarter of positive year over year growth, but declined fifteen percent sequentially, primarily due to seasonal weakness and difficult comparisons versus Q2 twenty twenty one, our benefit from the selling and introduction of three Wana Quick gummie SKUs and two new Bhang Chocolate SKUs.
01:49 Gross margins before fair value adjustments, impairments and onetime items improved significantly in the third quarter to a record thirty point eight percent, a significantly lower distillate costs, positively impacted cost of goods sold, offset by lower revenues.
02:04 Adjusted EBITDA remained positive in the third quarter, but declined sequentially to one hundred and seventy thousand dollars from five hundred and forty thousand dollars last quarter, due to lower revenues offset by lower distillate costs.
2:16 Looking back at Q3 twenty twenty one. Indiva maintained its leadership in the edibles category. Indiva remains a national leader of edible sales with forty five percent market share in the category for the third quarter of twenty forty one. According to Hifyre data across DC, Alberta to Saskatchewan, Manitoba and Ontario across all categories Indiva ranked eleventh in Q3 amongst all Canadian LPs by dollar market share and ranked number one by units delivered.
02:44 Indiva also sold four of the top ten OCS products measured by unit sold for the quarter ended June thirty, twenty twenty one. This represents more SKUs in the top ten than any other LP in Canada.
02:55 Product ranking in Q3 twenty twenty one showed that the top eight edible SKUs were Wana Sour Gummies led by Mango Sativa, both Wana and Bhang continue to lead the respective subcategories. We added Prince Edward Island to our distribution platform in Q3 and as a result, Indiva now sales product coast to coast in all ten provinces in Canada, as well as two territories and in the medical channel through various partnerships. We intend to continue to leverage this national distribution platform going forward with further product and SKU introductions.
03:25 We introduced three new Cookie SKUs from Slow Ride Bakery to the Ontario market, marking Indiva’s first introduction of baked goods in the edibles category. According to Hifyre data, Indiva held leading market share nationally in the baked goods sub-category for the month September twenty twenty one, despite distribution beginning in August and being limited to -- only to the province of Ontario. Indiva has since expanded the distribution of Slow Ride Cookies to three provinces. We also introduce one new Wana SKU in Q3 a strawberry ten pack 10:1.
03:55 Finally, we introduced additional premium strains under the Artisan Batch brand, including Unicorn Sherbert by KRFT, Cereal Milk by KRFT and Sticky Larry by Stinky Greens, we also expanded distribution of the Artisan Batch brand to the province of Alberta.
04:10 Turning to events subsequent to quarter end. We introduced several new products and opened new markets for existing products subsequent to quarter end, which will help drive top line growth in Q4 and beyond. We launched and completed initial shipments of the Wana 10-pack Blood Orange 20:1 SKU a new flavor for Wana Gummies in Canada. Further Wana Gummies SKUs, including midnight -- sweet gummies will launch in Q1 twenty twenty one.
04:35 We introduced Bhang THC White Candy Cane White Chocolate, which has experienced strong selling across five provinces. We also fulfilled replenishment orders of bubble hash concentrate into the Province of Quebec, and delivered our first shipment of INDIVA Capsules to British Columbia. We've expanded distribution of of Slow Ride Cookies to two additional properties and introduced two new holiday themed SKU.
04:56 We also introduced high-potency, craft grown cultivars to the Canadian market, including Golden Pineapple by HWY 8 and Sour Glue by Purplefarm Genetics. The company expects to introduce more exciting and unique cultivars from Canada’s best craft cultivators in the coming months.
05:12 Indiva received nominations for five Adcann Awards, including Craft Brand of The Year, LP Brand of the Year, Best Social Media of the Year, Best Brand Marketer of the Year and Marketing Campaign of the Year.
05:26 On October twelve, twenty twenty Indiva completed its Warrant Incentive Program, a total of eight point eight warrants were exercised, providing gross proceeds to the Company of three point five million dollars. We also closed and amended and increased debt facility with Sundial Growers Inc., providing the company with an additional eight point five million dollars of debt. Proceeds were used to terminate and repay all remaining obligations under the Dycar manufacturing agreement. While there were one time charges in the quarter associated with exiting this contract, the refinancing is immediately accretive to cash flow.
05:58 Finally, pursuant to the press release issued by Canopy Growth on October fourteen announcing the acquisition of an option to acquire Wana Brands, we wishes to clarify that Indiva's exclusive rights to manufacture and distribute Wana Sour Gummies in Canada will remain in place until the earlier of May twenty twenty five, or the date upon which Wana terminates its agreement with Indiva following the exercise by Canopy of its option to acquire Wana, following federal legalization of cannabis in the United States.
06:26 Indiva and Wana may continue their licensing agreement beyond May twenty twenty five if both parties mutually agree. In the event that Canopy exercises its option prior to May twenty twenty five and causes Wana to terminate the current agreement, Indiva would be contractually entitled to receive a termination payment equivalent to four times the most recent three months of gross revenue, net of license payments, from the sale of Wana products in Canada. Indiva remains committed to supporting the growth of the Wana brand in Canada.
06:56 Looking forward, in the fourth quarter of twenty twenty one, we expect sequential revenue growth to resume, driven by new SKU and product introductions and we expect further gross margin improvement driven by higher revenue and improved operating efficiencies, including the commissioning new automation equipment for processing and packaging. Indiva will not stand still, we will continue to move forward and grow through innovation and by pursuing new brands and products introduced into the Canadian market as we leverage our best in class operations, our national distribution platform and our strong relationships with provincial wholesalers and key retail accounts.
07:33 I'd like to thank all Indiva employees including all of the staff at our facility in London, Ontario, as well as our staff working remotely for their fantastic effort and hard work as we continue to produce and sell new products and grow our business.
7:45 Thank you. And I'm sure Cannabis enthusiasts everywhere in Canada. Thank you too. I'll now turn it over to Indiva’s Chief Financial Officer, Jennifer Welsh to review the financial results in greater detail.
Jennifer Welsh
08:00 Thank Niel. I will review Indiva’s financial performance for the three and nine month periods ended September thirty, twenty twenty one. Gross revenue in the third quarter increased one hundred and forty three percent year over year to eight point three million dollars, while year to date gross revenue increased one hundred and ninety four percent year over year to twenty five point zero four million dollars, driven primarily by organic growth of our core edible products.
08:25 Net revenue increased one hundred and fifty five percent year over year which declined fifteen percent sequentially to seven point seven two million dollars in the quarter. Year to date, net revenue increased two hundred and three percent year over year to twenty three million dollars driven by new product introductions and expanded distribution of Indiva products. Overall, edibles represented ninety percent of net revenue in Q3 twenty twenty one.
08:49 Gross profit before fair value adjustments, impairments and onetime items increased by three hundred and nineteen percent year over year to two point eight two million dollars. Year to date gross profit increased to seven point zero million dollars versus one point three one million dollars in the corresponding prior year period.
09:05 Operational gross margin defined gross margin before fair value adjustments, impairments and onetime items increased to a record thirty seven point eight percent in Q3 twenty twenty one versus thirty four percent in Q2 twenty twenty one and twenty two point two percent in Q3 twenty twenty as the company benefited from lower cost offset by lower sequential revenue. Year to date gross margin before fair value adjustments, impairments and onetime items improved to thirty one point one percent or seventeen point three percent for the nine month period a year ago.
09:39 Forty two million milligrams [indiscernible] were sold in the third quarter versus fifty two million milligrams in the second quarter of twenty twenty one and ten million milligrams in Q3 twenty twenty, representing a three hundred and thirteen percent year over year increase with a decrease of nineteen percent sequentially when compared to Q2, which saw the initial sell-in of three Wana Quick SKUs and two new Bhang chocolate SKUs.
10:01 As a reminder, CBD and THC distillate are the active ingredients in our edible products. It is important to remember that there is not necessarily a direct correlation between units sold and milligrams sold as each SKU has its own unique combination and total amounts of milligrams of active ingredient.
10:18 Distillate cost averaged zero point zero five dollar in the third quarter, a significant decline from the second quarter and closer to [indiscernible]. The company expects to see continued gross margin improvement in the fourth quarter of twenty twenty one, this improvement will come as a result of higher quarterly revenue and improved operating efficiencies rather than any further significant contributions from the decline in distillate costs.
10:42 Operating expenses in the quarter remained flat at three million dollars, while year date they increased to eight point three million dollars primarily due to higher marketing and sales submissions driven by higher sales volumes and higher public company costs.
10:55 Operating expenses as a percent of net revenue were thirty nine point two percent in Q3 twenty twenty one. We expressed operating expenses to continue to decline as a percentage of net revenue in Q4 and into twenty twenty two. As a result of lower sequential revenue, adjusted EBITDA that remained positive at one hundred and seventy thousand dollars versus a profit of five hundred and forty four thousand dollars in Q2, and a loss of one million dollars in the same period last year. Year to date adjusted EBITDA, it was positive at two twenty thousand dollars versus a loss of three point three million dollars in the year ago period.
11:31 The company recorded a four point nine nine million dollars loss on contract settlement due to the termination of the Bhang Manufacturing agreement. Going forward, the company expect significantly improved cash flow from operations on a monthly basis due to the refinancing and termination of this contract.
11:48 Comprehensive loss was six point four million dollars in Q3. Comprehensive loss in the quarter included onetime expenses and non-cash charges of four point nine million -- four point nine nine million dollars as well as inventory write downs due to disposal of aged inventory totaling four hundred and forty six thousand dollars. Excluding all onetime expenses and noncash charges, comprehensive loss per share in Q3 twenty twenty one was nine hundred and ninety thousand dollars or one penny dollars per share versus a per share loss of zero point zero two dollars in the year ago period.
12:19 The cash balance stood at two point six million dollars at quarter end. Cash and working capital at quarter end excludes the positive impact of the eight point five billion dollars debt refinancing and three point five million dollars of proceeds from the warrant incentive program, which were all completed subsequent to quarter end. Including the positive impact of these transactions on our balance sheet working capital improves by nearly eleven million dollars
Niel Marotta
12:43 Thank you, Jenn. Operator, I think now we'll open it up to questions please.
Question-and-Answer Session
Operator
12:47 Certainly, sir. [Operator Instructions] And your first question will be from Rahul Sarugaser at Raymond James. Please go ahead.
Q – Unidentified Analyst
13:19 Hi, good morning Niel. Good morning, Jenn. This is [Mike Freeman] (ph) on for Rahul Sarugaser. I regret got missing the call. Hey, congratulations on maintaining pretty remarkable market share in edibles this quarter and in driving positive EBITDA. It's really impressive.
13:34 I've got few questions here on your description of sort of sales dip from a big second quarter, but a sales dip caused by seasonality, I'd be interested to understand more about this sort of August trough you guys indicate in the press release and share with us how this seasonal trend you see?
Niel Marotta
14:01 Sure. Yeah. So I mean our sales really peaked late in Q2 on a monthly basis, we don't break down our revenue on a month by month basis. So we had pretty heavy selling in and that related to a lot of new SKUs. We introduced five pretty popular new SKUs, the Wana Quick SKUs had really good sell and the Bhang chocolate, particularly the cookies and cream had very strong sell-in Q2. August, we trough it about two million dollars monthly revenue, again, we're not going to disclose every single month, but that's – we were down much closer to the Q2 run rate, let's say on a monthly basis since then. So we would attribute that really to seasonality, there is no other really clear reason why sales dipped. But it seems -- it is a bit lumpy too Mike.
14:47 You got to remember our sell-in is not as, let's say, steady and granular as retail sales. So there's a bit of lumpiness in the business as well. So, it's probably a multitude of factors and certainly not just the seasonality we saw in August.
Unidentified Analyst
15:02 Okay, all right. That's really helpful. And I wonder if you could share -- there's been an increased sort of incentive competition in the edibles category, we see Cronos with spinach introducing opinion products that seem to be doing well and organic [indiscernible] sort of holding steady there. Wondering if you're feeling or seeing any increased competition for retail shop space or room for your products?
Niel Marotta
15:29 I think the short answer is, yes. I don't think anything is going us off the shelf per se. We have really terrific store presence which just happened organically and also through key retail partnerships which we continuing to pursue. But we think this is a good thing. We're seeing accelerating – it seems like category growth. We put a new investor deck up today. It looks like the edibles categories is now north of five percent of the total that's the first -- that was in October according the Hifyre data. So, it would appear that while our market share declined somewhat our retail sales continue to grow. But it's not unusual to see, let's say, a high level of trial and initial sell in of new products, some of which are better than others, all of which do impact the total of what's on the shelf. So, we welcome the competition and we think it's good for the whole category. I think -- we think it's first trial for edibles in general, which as you know, are still well underrepresented in Canada versus, say, mature U.S. markets.
Unidentified Analyst
16:35 Okay. Thanks very much. That's really helpful. And now I understand you may not be able to speculate too much on the conclusion of the result of Canopy’s seeking to acquire Wana, but I wonder if there are any near term impact you at Indiva feel following this announcement?
Niel Marotta
17:01 I think other than just perhaps some confusion amongst investors on what does it mean? And this is why we've tried to clarify this with a statement both on the call and then in the press release itself. Indiva -- we're still the exclusive licensee for the next three point five years. We haven't really seen a short term impact, obviously, provincial wholesalers have been informed that there'll be no interruption in the production or distribution of Wana products. So, I guess the short answer from a commercial perspective is no, more so on the investor side and this is why we've tried to clarify things best as possible.
Unidentified Analyst
17:41 Okay. That's helpful. And it's important to know that you guys got there first. Thanks very much for these questions. I'll jump back in the queue.
Niel Marotta
17:51 Thanks Mike. Appreciate it.
Operator
17:53 Thank you. [Operator Instructions] And at this time -- we have a follow-up for Mike. Please go ahead.
Unidentified Analyst
18:14 Thanks very much. Just one more from me on gross margins. So you're working through distillate that was bought at a higher price than the spot market now, you're working towards spot market -- closer to spot market pricing on distillate. Where do you see -- what do you target as gross margins going forward?
Niel Marotta
18:40 Look, we think that -- first of all, we're very pleased that we're able to grow our margins in an environment where revenue decline sequentially, you don't see that very often. So – and we're also very pleased that we're finally seeing distillate flow through our COGS and closer to spot prices. But maybe are still a little bit lower than what we reported, but not meaningfully in a way that we would point to that having huge impact of margin going forward.
19:08 We've talked a little bit about automation. We think we can save upwards of about one million dollars a year of cost savings due to that automation at today's current run rates. So that would add upwards of about three hundred basis points on our current revenue run rate. So, we think forty percent plus is reasonable, whether we get there in Q4 will depend on where revenue shakes out. Again, we have a revenues accelerated from Q3. So I think our internal target in any case is forty percent plus and we'll just see how much higher we can keep pushing it Mike.
Unidentified Analyst
19:47 That's perfect. All right. Thanks very much and congrats on the quarter again.
Niel Marotta
19:51 Thanks, Mike. Appreciate it.
Operator
19:53 Thank you. [Operator Instructions] And at time Mr. Marotta, we have no further questions, sir.
Niel Marotta
20:11 Okay. Well, thank you everyone for attending the call. We're going to get back to work and hopefully we'll see some of you at the LIFT conference in Toronto later this week. We look forward to speaking to all of you again in the spring when we report our Q4 and fiscal twenty twenty one year end results. So thanks everybody.
Operator
20:27 Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.
Cresco Labs: Right On Track In Difficult Market
Nov. 16, 2021 12:40 PM ET
Cresco Labs Inc.
Summary
Cresco Labs reported a solid quarter when focusing on adjusted EBITDA margin expansion.
The MSO remains primed for any long-term move to a branded wholesale cannabis market.
The stock trades at an insanely cheap multiple of 11x '22 adjusted EBITDA targets while the opportunity remains massive.
The MSO (multi-state operator) space finally saw a relieve rally to end last week. Cresco Labs (OTCQX:CRLBF) continues to be the best way to invest in the wholesale market in a world where branded cannabis becomes the focus over running cultivation facilities and retail stores. My investment thesis remains very Bullish on the MSO space with a preference to own a basket of stocks such as Cresco Labs.
Decent Quarter
As previously reported by other leading MSO players, the September quarter was tougher than normal. The U.S. cannabis space didn't see sequential revenue growth as New York delayed medical cannabis flower sales and states like Pennsylvania and Florida were more price competitive.
Cresco Labs still reported Q3'21 revenue grew 2.6% sequentially to reach $215.5 million. The company only grew revenues 40.6% YoY for some of the lowest reported growth rates in the MSO space.
The numbers were partially deflated from shifting away from distributed wholesale sales in California. The MSO might've seen revenue growth dip, but EBITDA margins surged 220 basis points in the quarter. The company pushing for more profitable sales will ultimately be rewarded by the market.
For the quarter, Cresco Labs grew adjusted EBITDA sequentially by 24% to $56.4 million. A lot of these MSO have plenty of levers to pull in order to boost margins in the short term. In the case of Cresco Labs, the company simply needed to exit low margin distribution sales agreements in California to focus on higher margin branded sales.
As with most MSOs, the December quarter and 2022 are expected to generate far more growth. Whether due to acquisitions or the expansion of cannabis sales in both New York and New Jersey, sales should return to solid growth rates.
The addition of the Cultivate business in Massachusetts along with the growing store base in Florida, Cresco Labs forecasts a big boost in Q4'21 sales. The MSO now forecasts sales of $240 million, up nearly $25 million sequentially.
The sales boost comes as the company will likely lose several million dollars in wholesale distribution revenues in California. The forecast for Q4'21 adjusted EBITDA margins to reach 30% is another sign of the low margin revenues obtained in the Origin House transaction where Cresco Labs took a $290 million impairment charge.
The company will have to boost adjusted EBITDA margins another 380 basis points to reach the 30% clip. Just on the Q3'21 revenue base, these higher margins would generate another $8.2 million in adjusted EBITDA.
All About Valuation
As with most of the MSOs, the valuation on Cresco Labs is absurdly low for the opportunity. The MSO is a strong wholesale player with leading positions in states such as Illinois and Pennsylvania. The Cultivate deal gives Cresco Labs another state with a strong wholesale position.
For the quarter, wholesale revenues were $109.3 million placing the company with over 50% of revenues from the wholesale market. The MSO only had 37 open retail stores leaving the company with the smallest store base of the major MSOs.
The Republican led cannabis bill released today would appear to favor a wholesale focused company where interstate cannabis sales allow for easy transition into other states. The Rep. Nancy Mace (R-SC) sponsored bill won't likely obtain approval, but the States Reform Act does push forward the cannabis agenda with collaboration from both sides of the aisle.
The company lists 421 million shares outstanding heading into Q4'21 where the deals for Cure Penn and Laurel Harvest will boost the share count while the Blair Wellness deal appears all cash and debt. The stock has a market cap of only $4.0 billion before these deals close while adjusted EBITDA reached $56.4 million in the quarter. The path to 30% EBITDA margins underscores the incredible valuation gap here.
Even at the current EBITDA run rate, Cresco Labs trades at a massive discount to growth rates. The adjusted EBITDA hit $226 million in the quarter and the stock only trades at 18x these estimates.
Assuming the company hits the $1.2 billion consensus revenue estimates for 2022, the stock trades at 11x 2022 EBITDA targets. This incredible valuation assumes just a 30% EBITDA margin while competitors have achieved higher levels. The revenue growth could accelerate with any progress in the future $5 billion New York cannabis market where sales have been minimal up until the approval of medical whole flower sales in early October.
Cresco Labs does already have a net debt position of $123.8 million, so the risks do exist. As parts of these outstanding acquisitions are paid for in cash, the MSO will increase the net debt position.
Takeaway
The key investor takeaway is that Cresco Labs remains the best way to play a future market focused on branded wholesales cannabis sales. For now, the market is still mostly focused on owned retail dispensaries, so this MSO could struggle in comparison without any changes to the market from federal legalization. As with most of the MSOs, the stock has risk due to changing market dynamics, but Cresco Labs is far too cheap for the likely risk to the U.S. cannabis market.
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Republicans are finally ready to legalize cannabis
Rezwan Khan and Randal John Meyer
Nov. 15, 2021 10:43 a.m.
https://www.sfchronicle.com/opinion/openforum/article/Republicans-are-finally-ready-to-legalize-cannabis-16620251.php
Ramin Rahimian/Special to The Chronicle
Efforts to legalize cannabis have largely been the work of Democrats, with Republicans usually leading the efforts to prevent it. That dynamic appears to finally be changing today with the introduction of the States Reform Act, or SRA.
Introduced by Rep. Nancy Mace, R-S.C., and co-sponsored by five other Republican representatives from across the country, SRA proposes an end to the federal prohibition of cannabis while allowing states to maintain their right to decide its legal status within their own borders. (Full disclosure: We provided policy support for lawmakers as they crafted the bill.)
Prior to SRA, most of the efforts nationwide to push cannabis reform were led by Democrats — most recently the introduction of the Cannabis Administration and Opportunity Act in July. It proposes descheduling cannabis from the list of banned substances and regulating the legal use of cannabis products across the nation, and is co-sponsored by Senate Majority Leader Chuck Schumer, D-N.Y., and Sens. Cory Booker, D-N.J., and Ron Wyden, D-Ore. California passed legislation allowing medical use of cannabis in 1996 and legalized adult recreational use in 2016. But despite bold leadership from a host of Democratic lawmakers and a supermajority of Americans — roughly 70% — who support cannabis legalization, efforts in Congress have encountered numerous obstacles from Republicans.
Traditionally, Republicans have pushed back on cannabis reform with concerns over youth use and a failure to respect states’ rights to regulate use of intoxicants within their borders. The SRA provides answers to both issues. It ensures a nationwide minimum adult-use age of 21, prevents advertising to young Americans and provides set-aside funds for the Substance Abuse and Mental Health Services Administration to help prevent youth dependency. States will choose how cannabis is legal within their borders, full stop.
For decades, Americans have disagreed on what the best approach is to regulating a plant that is both a cash crop and a medical compound. Some believe that it should only be treated as a pharmaceutical regulated by the Federal Drug Administration under the strictest standards, while others see potential in industrial and adult uses of cannabis products in addition to its medical value. The comprehensive reform structure of SRA appeals to a wide variety of stakeholders, including industry, advocates, evangelists and skeptics.
For example, public safety advocates will appreciate that the FDA will regulate medical products and that there will be a national age limit unless proscribed by a doctor. Medical cannabis companies will be allowed to have their existing products grandfathered, which avoids punishing first-movers in the industry while leaving room for researchers to develop more sophisticated medical products. California cultivators will continue to work with the U.S. Department of Agriculture and Environmental Protection Agency to maintain environmental standards and to create best practices for cultivating — just as they always have.
Many critics of the cannabis industry and progressive lawmakers have raised questions about the industry’s economic growth, and the fairness of large cannabis companies and their investors enjoying profits while Americans remain in prison for growing and consuming cannabis. SRA addresses these concerns as well — something missing from most Republican legalization efforts.
The bill offers nonviolent cannabis offenders second chances in society. In keeping with its respect for states to determine their own legalization posture, the bill grandfathers existing state-based social equity programs to ensure that those harmed by past cannabis criminal convictions still have an opportunity to participate in this emerging industry.
Veterans will welcome similar consideration. Currently, the Veterans Affairs Department is not allowed to recommend cannabis to patients suffering from chronic pain, post-traumatic stress disorder and insomnia, among other conditions. The passage of SRA would change that while ensuring veterans do not face discrimination in federal hiring for cannabis use.
Like Florida oranges or Vermont maple syrup, California cannabis promises to become a luxury, exported around the world. Small operators and entrepreneurial individuals also deserve the opportunity to take part in this brand-new industry. Envisioning a day soon when America exports this highly desirable product, Rep. Mace’s proposal leaves very few barriers to entry for entrepreneurs.
The prospect of cannabis legalization in our lifetime is no longer a pipe dream. Mace and her co-sponsors have offered their vision of how to accomplish such a reform. This sets the stage for a robust, bicameral and bipartisan discussion on how to best move toward true comprehensive cannabis reform.
Certainly, there will be spirited debate about numerous provisions in the bill, including tax rates, the proper role for the FDA in this emerging industry and how to work to end the illicit market. The States Reform Act floats a 3% federal excise tax — welcome news for an industry that already shoulders high state taxes — a rate that is below the target of other Democratic-led bills.
That our national conversation on cannabis legalization has reached this stage demonstrates just how much progress we have made as a country in finding the bipartisan and comprehensive solution needed to bring about cannabis reform.
Rezwan Khan is the president of the Global Alliance for Cannabis Commerce. Randal John Meyer is the executive director of the alliance and steering committee member of the Cannabis Freedom Alliance.
Republicans are finally ready to legalize cannabis
Rezwan Khan and Randal John Meyer
Nov. 15, 2021 10:43 a.m.
https://www.sfchronicle.com/opinion/openforum/article/Republicans-are-finally-ready-to-legalize-cannabis-16620251.php
Ramin Rahimian/Special to The Chronicle
Efforts to legalize cannabis have largely been the work of Democrats, with Republicans usually leading the efforts to prevent it. That dynamic appears to finally be changing today with the introduction of the States Reform Act, or SRA.
Introduced by Rep. Nancy Mace, R-S.C., and co-sponsored by five other Republican representatives from across the country, SRA proposes an end to the federal prohibition of cannabis while allowing states to maintain their right to decide its legal status within their own borders. (Full disclosure: We provided policy support for lawmakers as they crafted the bill.)
Prior to SRA, most of the efforts nationwide to push cannabis reform were led by Democrats — most recently the introduction of the Cannabis Administration and Opportunity Act in July. It proposes descheduling cannabis from the list of banned substances and regulating the legal use of cannabis products across the nation, and is co-sponsored by Senate Majority Leader Chuck Schumer, D-N.Y., and Sens. Cory Booker, D-N.J., and Ron Wyden, D-Ore. California passed legislation allowing medical use of cannabis in 1996 and legalized adult recreational use in 2016. But despite bold leadership from a host of Democratic lawmakers and a supermajority of Americans — roughly 70% — who support cannabis legalization, efforts in Congress have encountered numerous obstacles from Republicans.
Traditionally, Republicans have pushed back on cannabis reform with concerns over youth use and a failure to respect states’ rights to regulate use of intoxicants within their borders. The SRA provides answers to both issues. It ensures a nationwide minimum adult-use age of 21, prevents advertising to young Americans and provides set-aside funds for the Substance Abuse and Mental Health Services Administration to help prevent youth dependency. States will choose how cannabis is legal within their borders, full stop.
For decades, Americans have disagreed on what the best approach is to regulating a plant that is both a cash crop and a medical compound. Some believe that it should only be treated as a pharmaceutical regulated by the Federal Drug Administration under the strictest standards, while others see potential in industrial and adult uses of cannabis products in addition to its medical value. The comprehensive reform structure of SRA appeals to a wide variety of stakeholders, including industry, advocates, evangelists and skeptics.
For example, public safety advocates will appreciate that the FDA will regulate medical products and that there will be a national age limit unless proscribed by a doctor. Medical cannabis companies will be allowed to have their existing products grandfathered, which avoids punishing first-movers in the industry while leaving room for researchers to develop more sophisticated medical products. California cultivators will continue to work with the U.S. Department of Agriculture and Environmental Protection Agency to maintain environmental standards and to create best practices for cultivating — just as they always have.
Many critics of the cannabis industry and progressive lawmakers have raised questions about the industry’s economic growth, and the fairness of large cannabis companies and their investors enjoying profits while Americans remain in prison for growing and consuming cannabis. SRA addresses these concerns as well — something missing from most Republican legalization efforts.
The bill offers nonviolent cannabis offenders second chances in society. In keeping with its respect for states to determine their own legalization posture, the bill grandfathers existing state-based social equity programs to ensure that those harmed by past cannabis criminal convictions still have an opportunity to participate in this emerging industry.
Veterans will welcome similar consideration. Currently, the Veterans Affairs Department is not allowed to recommend cannabis to patients suffering from chronic pain, post-traumatic stress disorder and insomnia, among other conditions. The passage of SRA would change that while ensuring veterans do not face discrimination in federal hiring for cannabis use.
Like Florida oranges or Vermont maple syrup, California cannabis promises to become a luxury, exported around the world. Small operators and entrepreneurial individuals also deserve the opportunity to take part in this brand-new industry. Envisioning a day soon when America exports this highly desirable product, Rep. Mace’s proposal leaves very few barriers to entry for entrepreneurs.
The prospect of cannabis legalization in our lifetime is no longer a pipe dream. Mace and her co-sponsors have offered their vision of how to accomplish such a reform. This sets the stage for a robust, bicameral and bipartisan discussion on how to best move toward true comprehensive cannabis reform.
Certainly, there will be spirited debate about numerous provisions in the bill, including tax rates, the proper role for the FDA in this emerging industry and how to work to end the illicit market. The States Reform Act floats a 3% federal excise tax — welcome news for an industry that already shoulders high state taxes — a rate that is below the target of other Democratic-led bills.
That our national conversation on cannabis legalization has reached this stage demonstrates just how much progress we have made as a country in finding the bipartisan and comprehensive solution needed to bring about cannabis reform.
Rezwan Khan is the president of the Global Alliance for Cannabis Commerce. Randal John Meyer is the executive director of the alliance and steering committee member of the Cannabis Freedom Alliance.
That's great news.
Cresco Labs’ Flagship Illinois Dispensary Opens Steps From Chicago’s Wrigley Field
November 15, 2021
Tilray to Webcast Annual Meeting of Stockholders on November 22, 2021
November 16, 2021 at 7:30 AM EST
https://ir.tilray.com/news-releases/news-release-details/tilray-webcast-annual-meeting-stockholders-november-22-2021
NEW YORK, Nov. 16, 2021 (GLOBE NEWSWIRE) -- Tilray, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), invites all stockholders of record to attend the Annual Meeting of Stockholders (“Annual Meeting”) which will be held on November 22, 2021 at 11:00 a.m. EST. The record date for the Annual Meeting was September 24, 2021. In light of the ongoing public health crisis caused by the COVID-19 pandemic, the Annual Meeting will be held in a virtual format only, via live webcast over the internet.
It is important that all shares be represented and voted at the Annual Meeting. Whether or not stockholders plan to attend the Annual Meeting, the Company encourages them to submit their proxy as soon as possible if they have not already done so.
Stockholders who have their control number will be able to join, vote, and submit questions online during the Annual Meeting by visiting www.virtualshareholdermeeting.com/TLRY2021. Please log in 15 minutes prior to the start of the meeting.
For stockholders that come through their brokerage firm's website and do not have their control number, they can gain access to the meeting by logging into their brokerage firm's website 15 minutes prior to the meeting start, selecting the shareholder communications mailbox to link through to the meeting, and the control number will automatically populate.
About Tilray:
Tilray, 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 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 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 alcoholic beverages.
For more information about Tilray, visit www.Tilray.com
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. 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 applicable securities regulatory authorities and available on SEDAR and 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:
Investors:
Raphael Gross, +1-203-682-8253, Raphael.Gross@icrinc.com
Media:
Berrin Noorata, news@tilray.com
The most interesting difference between the dems shoot-for-the-moon bill and the repubs is the difference in the excise tax being 25% vs 3% respectively.
The dems want the tax to pay for so many social equity programs. The repubs want no part of that.
Let the negotiations begin. IMO that's the most exciting news of all.
Competing bills from the two parties mean they are going to work on reconciling the bills.
We are most likely going to see passage of something before the next election.
Hallelujah
Nah, the "bill-news" came out last week. Just a few more details came out. The MSO's already ran. Just a little pull back.
The most interesting difference between the dems shoot-for-the-moon bill and the repubs is the difference in the excise tax being 25% vs 3% respectively.
The dems want the tax to pay for so many social equity programs. The repubs want no part of that.
Let the negotiations begin. IMO that's the most exciting news of all. Competing bills from the two parties mean they are going to work on reconciling the bills. We are most likely going to see passage of something before the next election.
INDIVA REPORTS THIRD QUARTER FISCAL 2021 RESULTS
Achieves Record Gross Margin, Positive Adjusted EBITDA and Continues to Lead the Edibles Category in Canada
LONDON, Ontario – November 16, 2021: Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles, is pleased to announce its financial and operating results for the third quarter of fiscal 2021 ended September 30, 2021.
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 press release, please refer to Indiva’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Nine Months Ended September 30, 2021, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2021 and 2020, which are filed on SEDAR and available on the Company’s website, www.indiva.com.
“We are delighted to report strong year-over-year net revenue growth, record gross profit margins in the third quarter of 2021, and positive adjusted EBITDA for the second consecutive quarter. Indiva maintained leading market share in the edibles category in the third quarter, driven by new product introductions and organic growth of existing SKUs,” said Niel Marotta, President and Chief Executive Officer of Indiva. “Looking forward to the fourth quarter of 2021, we expect to see sequential net revenue growth based on continued organic growth, the strength of purchase orders booked to date, and expected new SKU and product introductions.
We also expect to see continued margin expansion in the fourth quarter of 2021, driven by higher revenues and continued improvement in operating efficiencies. Indiva has grown its national distribution platform to all ten provinces and two territories, and is a trusted partner to all provincial wholesalers. Looking ahead to 2022, Indiva will leverage this distribution platform, and our ability to continue to profitably scale production through our best-in-class operations, to drive continued organic growth.”
HIGHLIGHTS
Quarterly Performance
• Gross revenue in Q3 2021 was $8.3 million representing a 143% increase year-over-year from Q3 2020, and a 15.9% sequential decrease from Q2 2021. Year-to-date, gross revenue increased 194% year over year to $25.04 million. This represents Indiva’s 7th consecutive quarter of year-over-year net revenue growth.
• Net revenue in Q3 2021 was $7.72 million representing a 155% increase year-over-year from Q3 2020, and a 15% sequential decrease due to seasonal weakness and against difficult comparisons from Q2 2021, which had the benefit of the introduction and initial sell-in of three Wana Quick SKUs as well as two new Bhang chocolate SKUs. Monthly net revenue has rebounded since the trough in August. Year-to-date, net revenue increased 203% year over year to $23.0 million.
• Net revenue from edible products grew to $6.92 million, up 226% from $2.12 million in the prior year period and down 18% from $8.43 million in Q2 2021. Edible product sales represent 90% of net revenue in Q3 2021.
• Gross profit excluding fair value adjustments, impairments and one-time items, improved by 320% year over year to $2.82 million, and adjusted gross margin improved to a record 37.8% of net revenue versus 34% in Q2 2021 and 22.2% in Q3 2020. Gross profit excluding fair value adjustments, impairments and one-time items declined 8.6% sequentially due to lower quarterly revenues, offset by lower distillate costs. Year-to-date, gross profit increased to $7.08 million, or 31.1% of net revenue, versus $1.31 million or 17.3% of net revenue in the corresponding nine month period last year.
• The Company expects gross margins to continue to improve in the fourth quarter of 2021 and into 2022, due to improved operating efficiencies from increased output, with diminishing benefit from lower distillate costs.
• In Q3 2021, Indiva sold products containing 42 million milligrams of distillate, the active ingredient in edible products, which represents a 19% decrease when compared to the 52 million milligrams in product sold in Q2 2021, and a 313% increase compared to 10 million milligrams sold in Q3 2020. The average distillate cost was $0.005 per mg in Q3 2021, which is much more in line with current spot prices.
• Impairment charges in the quarter totaled $0.446 million, including the disposal of aged inventory.
• Operating expenses in the quarter were flat sequentially at $3.0 million versus Q2 2021 driven by higher marketing costs, offset by lower sales commissions. Operating expenses as a percentage of net revenue increased to 39.2% in Q3 2021 versus 34.1% in Q2 2021, but decreased significantly versus 71.6% in Q3 2020. Year over year, operating expenses increased by 39.4% versus Q3 2020, primarily due to higher marketing and sales commissions driven by higher sales volumes, and higher public company costs. Year-to-date, operating expenses increased by 55.4% to $8.3 million, but declined as a percentage of revenue to 36.2% from 70.5%. The Company expects operating expenses to continue to decline as a percentage of net revenue as the year progresses, and into 2022.
• Adjusted EBITDA remained positive, declining sequentially in Q3 2021 to $0.17 million versus $0.54 million in Q2 2021, and a loss of $1.1 million in Q3 2020, driven by lower sequential revenue versus Q2 2021, offset by lower distillate costs. Year-to-date, adjusted EBITDA was positive at $0.22 million, versus a loss of $3.25 million in the nine month period last year.
• The Company recorded a $4.99 million loss on contract settlement due to the termination of the Dycar manufacturing agreement. Going forward, the company expects significantly improved cash flow from operations on a monthly basis, due to the refinancing and elimination of this contract.
• Comprehensive net loss was $6.43 million for the quarter and included one-time expenses and non-cash charges totaling $5.44 million. Net loss per share was $0.05 versus $0.04 in Q3 2020. Excluding these charges, comprehensive loss in the quarter declined to $0.99 million, or $0.01 per share, versus a loss of $2.13 million in Q3 2020.
• Cash balance at the end of the quarter, which excludes the debt financing and warrant proceeds received subsequent to quarter-end, was $2.6 million.
Q3 2021 Market Share
• Sell through data from Hifyre for the third quarter of 2021 continues to show strong sales of Indiva edible products. Retail sales of Indiva products measured by dollars and units continued to grow in the quarter, while market share declined slightly due to sales of products by new category entrants. With 45% share of sales in the third quarter, Indiva continues to hold its lead in the #1 market share position in the edibles category:
o Ontario #1 with 42% market share.
o Alberta #1 with 51% market share.
o British Columbia #1 with 52% market share.
o Saskatchewan #1 with 27% market share.
o Manitoba #1 with 46% market share.
o Wana Sour Gummies led the edibles category with 35% total category share and 48% sub-category share in gummies. Bhang® continued to lead the chocolate category with 35% share of the chocolate sub-category.
o Product ranking in Q3 2021 showed the top eight SKUs are Wana™ Sour Gummies (led by Mango Sativa).
o Based on Hifyre data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category improved 19% in Q3 2021 to a record $42.17 million in retail sales versus $35.45 million in Q2 2021.
Operational Highlights for the Third Quarter Fiscal 2021
• Recent OCS data showed that for the quarter ended June 30, 2021, four of the top 10 cannabis products sold by the OCS were Indiva products, as measured by units sold, including three Wana SKUs and one Bhang Chocolate SKU.
• Indiva expanded its distribution platform to include Prince Edward Island. Indiva now sells product in all 10 provinces in Canada, two territories and in the medical channel through partnerships, including Medical Cannabis by Shoppers.
• Indiva introduced three new Cookie SKUs from Slow Ride Bakery to the Ontario market, marking Indiva’s first baked goods introduced in the edibles category. According to Hifyre data, Indiva held leading market share in the baked goods sub-category for September 2021, despite distribution beginning in August 2021 and being limited only to the province of Ontario. Subsequently, Indiva has expanded distribution of Slow Ride Cookies to two additional provinces, and has introduced two new holiday themed SKUs.
• Indiva introduced a new 10-pack SKU of Wana Strawberry 10:1.
• Indiva introduced additional premium strains under the Artisan Batch brand, including Unicorn Sherbert by KRFT, Cereal Milk by KRFT and Sticky Larry by Stinky Greens, and expanded its distribution of the Artisan Batch brand to Alberta.
Events Subsequent to Quarter End
• Indiva completed its Warrant Incentive Program on October 12, 2021. A total of 8,866,666 warrants were exercised, providing gross proceeds to the Company of $3.55 million. 4,433,333 new warrants were issued, exercisable into common shares at $0.45, for a five-year period.
• Indiva announced an amended and increased debt facility with Sundial Growers Inc., providing the Company with an additional $8.5 million of debt. Proceeds were used to terminate and repay all remaining obligations under the Dycar manufacturing agreement.
• Indiva introduced Bhang THC White Candy Cane Chocolate in five provinces, which has experienced strong sell-in.
• Indiva launched Wana 10-pack Blood Orange 20:1, a new flavour for Wana Gummies in Canada, across six provinces and territories.
• Indiva fulfilled replenishment orders of bubble hash concentrate into the Province of Quebec, and delivered its first shipment of INDIVA Capsules to British Columbia.
• Indiva introduced new, high-potency, craft grown cultivars to the Canadian market, including Golden Pineapple by HWY 8 and Sour Glue by Purplefarm Genetics. The Company expects to introduce more exciting and unique cultivars from Canada’s best craft cultivators in the coming months.
• Indiva received nominations for five Adcann Awards, including Craft Brand of The Year, LP Brand of the Year, Best Social Media of the Year, Brand Marketer of the Year and Marketing Campaign of the Year.
• Pursuant to the press release issued by Canopy Growth (“Canopy”) on October 14th announcing the acquisition of an option to acquire Wana Brands, Indiva wishes to clarify that its exclusive rights to manufacture and distribute Wana Sour Gummies in Canada will remain in place until the earlier of May 2025, or the date upon which Wana terminates its agreement with Indiva following the exercise by Canopy of its option to acquire Wana, following federal legalization of cannabis in the United States. Indiva and Wana may continue their licensing agreement beyond May 2025, if both parties mutually agree. In the event that Canopy exercises its option prior to May 2025 and causes Wana to terminate the current agreement, Indiva would be contractually entitled to receive a termination payment equivalent to four times the most recent three months of gross revenue, net of license payments, from the sale of Wana products in Canada. Indiva remains committed to supporting the growth of the Wana brand in Canada.
Outlook
• The Company expects sequential and year-over-year net revenue growth, as well as continued margin improvement in the fourth quarter of 2021, as a result of new SKU and product introductions, and improved operating efficiencies.
• In Q4 2021 and Q1 2022, Indiva will launch several new SKUs including new Wana gummie and Wana Quick SKUs, as well as chewable fruit tablets called “Jewels”. Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand. Artisan Batch brings Canadians the best dry flower from craft growers with special attention paid to high THC potency, robust terpene content, premium large buds and fresh harvest dates.
See the financials here:
https://www.indiva.com/press-releases/releases-2021/indiva-reports-third-quarter-fiscal-2021-results/
South Carolina Republican reveals marijuana legalization bill she’ll introduce in Congress
By John Schroyer, Senior Reporter
November 15, 2021
https://mjbizdaily.com/south-carolina-republican-reveals-marijuana-legalization-bill-shell-introduce-in-congress/?utm_medium=email&utm_source=newsletter&utm_campaign=MJD_20211115_NEWS_Daily
U.S. Rep. Nancy Mace on Monday discusses the States Reform Act marijuana legalization bill she intends to introduce to Congress.
(This story was updated at 2:58 p.m. ET with additional comments, details.)
A new Republican-led push to legalize marijuana in the United States was unveiled Monday by U.S. Rep. Nancy Mace from South Carolina, raising industry hopes that some form of bipartisan marijuana legislation can pass Congress.
The 131-page States Reform Act – showcased during a Capitol Hill news conference – would remove marijuana from the list of federally controlled substances and allow state governments to continue leading the way on cannabis reform.
The bill would give each state the option to either continue launching new marijuana markets or to maintain a ban.
The legislation would also:
Establish a new federal regulatory framework to treat marijuana like alcohol by splitting industry oversight between the U.S. Food and Drug Administration for medical usage, the U.S. Department of Agriculture for farmers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for adult-use MJ products and industry enforcement. The Treasury Department’s Tax and Trade Bureau would also have jurisdiction over interstate cannabis commerce, according to further analysis from Mace’s office.
Remove all federal criminal penalties related to marijuana consumption and possession as well as expunge most nonviolent MJ criminal convictions.
Establish a 3% federal excise tax for marijuana products.
Give the marijuana sector parity with other industries in the eyes of the Small Business Administration, including eligibility for benefits such as government financial assistance, grants, micro-loans and the like.
Set the stage for both interstate and international marijuana trade.
Ensure that medical marijuana businesses and patients are protected from interference during the federal transition and allow for the continued operation of businesses under state law while the new federal framework is being established.
“Today, only three states lack some form of legal cannabis. My home state of South Carolina permits CBD, Florida allows medical marijuana, California and others have full recreational use, for example,” Mace said in a prepared statement. “It’s past time federal law codifies this reality.”
Mace said her bill is attempting to “remove cannabis from Schedule I in a manner consistent with the rights of states.”
“The States Reform Act takes special care to keep Americans and their children safe while ending federal interference with state cannabis laws,” Mace said.
“Washington needs to provide a framework which allows states to make their own decisions on cannabis moving forward. This bill does that.”
Mace also said during her news conference that if her bill is successful it would eliminate the need for the SAFE Banking Act, which would open the gates to banking access for state-legal marijuana companies.
Bill draws major support
The measure has already been formally endorsed by several pro-marijuana lobbying groups, including the Koch brothers-backed Cannabis Freedom Alliance, the Global Alliance for Cannabis Commerce and the U.S. Cannabis Council.
Also backing the bill is Americans for Prosperity, another conservative political group supported by the Koch brothers.
South Carolina Republican reveals marijuana legalization bill she’ll introduce in Congress
By John Schroyer, Senior Reporter
November 15, 2021
https://mjbizdaily.com/south-carolina-republican-reveals-marijuana-legalization-bill-shell-introduce-in-congress/?utm_medium=email&utm_source=newsletter&utm_campaign=MJD_20211115_NEWS_Daily
U.S. Rep. Nancy Mace on Monday discusses the States Reform Act marijuana legalization bill she intends to introduce to Congress.
(This story was updated at 2:58 p.m. ET with additional comments, details.)
A new Republican-led push to legalize marijuana in the United States was unveiled Monday by U.S. Rep. Nancy Mace from South Carolina, raising industry hopes that some form of bipartisan marijuana legislation can pass Congress.
The 131-page States Reform Act – showcased during a Capitol Hill news conference – would remove marijuana from the list of federally controlled substances and allow state governments to continue leading the way on cannabis reform.
The bill would give each state the option to either continue launching new marijuana markets or to maintain a ban.
The legislation would also:
Establish a new federal regulatory framework to treat marijuana like alcohol by splitting industry oversight between the U.S. Food and Drug Administration for medical usage, the U.S. Department of Agriculture for farmers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for adult-use MJ products and industry enforcement. The Treasury Department’s Tax and Trade Bureau would also have jurisdiction over interstate cannabis commerce, according to further analysis from Mace’s office.
Remove all federal criminal penalties related to marijuana consumption and possession as well as expunge most nonviolent MJ criminal convictions.
Establish a 3% federal excise tax for marijuana products.
Give the marijuana sector parity with other industries in the eyes of the Small Business Administration, including eligibility for benefits such as government financial assistance, grants, micro-loans and the like.
Set the stage for both interstate and international marijuana trade.
Ensure that medical marijuana businesses and patients are protected from interference during the federal transition and allow for the continued operation of businesses under state law while the new federal framework is being established.
“Today, only three states lack some form of legal cannabis. My home state of South Carolina permits CBD, Florida allows medical marijuana, California and others have full recreational use, for example,” Mace said in a prepared statement. “It’s past time federal law codifies this reality.”
Mace said her bill is attempting to “remove cannabis from Schedule I in a manner consistent with the rights of states.”
“The States Reform Act takes special care to keep Americans and their children safe while ending federal interference with state cannabis laws,” Mace said.
“Washington needs to provide a framework which allows states to make their own decisions on cannabis moving forward. This bill does that.”
Mace also said during her news conference that if her bill is successful it would eliminate the need for the SAFE Banking Act, which would open the gates to banking access for state-legal marijuana companies.
Bill draws major support
The measure has already been formally endorsed by several pro-marijuana lobbying groups, including the Koch brothers-backed Cannabis Freedom Alliance, the Global Alliance for Cannabis Commerce and the U.S. Cannabis Council.
Also backing the bill is Americans for Prosperity, another conservative political group supported by the Koch brothers.
South Carolina Republican reveals marijuana legalization bill she’ll introduce in Congress
By John Schroyer, Senior Reporter
November 15, 2021
https://mjbizdaily.com/south-carolina-republican-reveals-marijuana-legalization-bill-shell-introduce-in-congress/?utm_medium=email&utm_source=newsletter&utm_campaign=MJD_20211115_NEWS_Daily
U.S. Rep. Nancy Mace on Monday discusses the States Reform Act marijuana legalization bill she intends to introduce to Congress.
(This story was updated at 2:58 p.m. ET with additional comments, details.)
A new Republican-led push to legalize marijuana in the United States was unveiled Monday by U.S. Rep. Nancy Mace from South Carolina, raising industry hopes that some form of bipartisan marijuana legislation can pass Congress.
The 131-page States Reform Act – showcased during a Capitol Hill news conference – would remove marijuana from the list of federally controlled substances and allow state governments to continue leading the way on cannabis reform.
The bill would give each state the option to either continue launching new marijuana markets or to maintain a ban.
The legislation would also:
Establish a new federal regulatory framework to treat marijuana like alcohol by splitting industry oversight between the U.S. Food and Drug Administration for medical usage, the U.S. Department of Agriculture for farmers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for adult-use MJ products and industry enforcement. The Treasury Department’s Tax and Trade Bureau would also have jurisdiction over interstate cannabis commerce, according to further analysis from Mace’s office.
Remove all federal criminal penalties related to marijuana consumption and possession as well as expunge most nonviolent MJ criminal convictions.
Establish a 3% federal excise tax for marijuana products.
Give the marijuana sector parity with other industries in the eyes of the Small Business Administration, including eligibility for benefits such as government financial assistance, grants, micro-loans and the like.
Set the stage for both interstate and international marijuana trade.
Ensure that medical marijuana businesses and patients are protected from interference during the federal transition and allow for the continued operation of businesses under state law while the new federal framework is being established.
“Today, only three states lack some form of legal cannabis. My home state of South Carolina permits CBD, Florida allows medical marijuana, California and others have full recreational use, for example,” Mace said in a prepared statement. “It’s past time federal law codifies this reality.”
Mace said her bill is attempting to “remove cannabis from Schedule I in a manner consistent with the rights of states.”
“The States Reform Act takes special care to keep Americans and their children safe while ending federal interference with state cannabis laws,” Mace said.
“Washington needs to provide a framework which allows states to make their own decisions on cannabis moving forward. This bill does that.”
Mace also said during her news conference that if her bill is successful it would eliminate the need for the SAFE Banking Act, which would open the gates to banking access for state-legal marijuana companies.
Bill draws major support
The measure has already been formally endorsed by several pro-marijuana lobbying groups, including the Koch brothers-backed Cannabis Freedom Alliance, the Global Alliance for Cannabis Commerce and the U.S. Cannabis Council.
Also backing the bill is Americans for Prosperity, another conservative political group supported by the Koch brothers.
GOP Lawmakers Officially File Cannabis Legalization Bill Joining Dems In Push To Regulate And Tax Weed
by Maureen Meehan
November 15, 2021 2:30 pm
https://www.benzinga.com/markets/cannabis/21/11/24103187/gop-lawmakers-officially-file-cannabis-legalization-bill-joining-dems-in-push-to-regulate-and-ta
Rep. Nancy Mace (R-SC) officially laid out her cannabis legalization plan on Monday. Titled the States Reform Act and co-sponsored by at least a half-dozen Republicans, the plan would essentially legalize cannabis on a federal level “in a manner consistent with the right of states to determine what level of cannabis reform or legalization each state wants to regulate, or not.”
Highlights of the bill:
Federally decriminalizes cannabis and fully defers to state powers over prohibition and commercial regulation
Regulates cannabis products like alcohol products
Institutes a 3% federal excise tax on those products to fund law enforcement and small business programs.
Ensures the continued existence of state medical cannabis programs and patient access while allowing for new medical research and products to be developed
Protects our veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their VA healthcare for following their doctor’s advice to use medical cannabis
Protects children and young adults under 21 from cannabis products and advertising nationwide
Protects medical cannabis for the following uses: arthritis, cancer, chronic pain, sickle cell, HIV/AIDS, PTSD and other medical uses per a state’s specific cannabis regulations.
Taxes: An Issue in the Democratic Cannabis Legalization Bill
By comparison, the proposed legislation to legalize cannabis from democratic senators Chuck Schumer, Cory Booker and Ron Wyden would carry an excise tax of 25.5%, viewed as unreasonably high, especially for small businesses.
Response
Weldon Angelos is the co-coordinator of the Cannabis Freedom Alliance (CFA). He worked with Mace’s team in crafting this legislation. In conversation with Benzinga, he said “The States Reform Act represents exciting movement towards compromise on the cannabis criminal justice issue and progress-building on the First Step Act. Representative Mace is bringing constructive solutions that promise to bring more Republicans to the table to end an unjust root cause of mass incarceration.”
When news of the GOP-led legalization draft was initially reported, it seemed clear that a republican effort would be essential for any real legal movement to proceed.
“If legalization efforts are approved in both houses, we don’t need President Biden’s signature,” said Angelos, pointing to the obvious prohibitionist tendencies of the President. “This could be it.”
Price Action
Cannabis stocks, which were trading up earlier in the day, tumbled following the news.
GOP Lawmakers Officially File Cannabis Legalization Bill Joining Dems In Push To Regulate And Tax Weed
by Maureen Meehan
November 15, 2021 2:30 pm
https://www.benzinga.com/markets/cannabis/21/11/24103187/gop-lawmakers-officially-file-cannabis-legalization-bill-joining-dems-in-push-to-regulate-and-ta
Rep. Nancy Mace (R-SC) officially laid out her cannabis legalization plan on Monday. Titled the States Reform Act and co-sponsored by at least a half-dozen Republicans, the plan would essentially legalize cannabis on a federal level “in a manner consistent with the right of states to determine what level of cannabis reform or legalization each state wants to regulate, or not.”
Highlights of the bill:
Federally decriminalizes cannabis and fully defers to state powers over prohibition and commercial regulation
Regulates cannabis products like alcohol products
Institutes a 3% federal excise tax on those products to fund law enforcement and small business programs.
Ensures the continued existence of state medical cannabis programs and patient access while allowing for new medical research and products to be developed
Protects our veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their VA healthcare for following their doctor’s advice to use medical cannabis
Protects children and young adults under 21 from cannabis products and advertising nationwide
Protects medical cannabis for the following uses: arthritis, cancer, chronic pain, sickle cell, HIV/AIDS, PTSD and other medical uses per a state’s specific cannabis regulations.
Taxes: An Issue in the Democratic Cannabis Legalization Bill
By comparison, the proposed legislation to legalize cannabis from democratic senators Chuck Schumer, Cory Booker and Ron Wyden would carry an excise tax of 25.5%, viewed as unreasonably high, especially for small businesses.
Response
Weldon Angelos is the co-coordinator of the Cannabis Freedom Alliance (CFA). He worked with Mace’s team in crafting this legislation. In conversation with Benzinga, he said “The States Reform Act represents exciting movement towards compromise on the cannabis criminal justice issue and progress-building on the First Step Act. Representative Mace is bringing constructive solutions that promise to bring more Republicans to the table to end an unjust root cause of mass incarceration.”
When news of the GOP-led legalization draft was initially reported, it seemed clear that a republican effort would be essential for any real legal movement to proceed.
“If legalization efforts are approved in both houses, we don’t need President Biden’s signature,” said Angelos, pointing to the obvious prohibitionist tendencies of the President. “This could be it.”
Price Action
Cannabis stocks, which were trading up earlier in the day, tumbled following the news.
We knew it was coming; ho hum--->>>THE VALENS COMPANY ANNOUNCES NEXT STEP TOWARDS NASDAQ LISTING
https://thevalenscompany.com/press-releases/the-valens-company-announces-next-step-towards-nasdaq-listing/
KELOWNA, B.C., Nov. 15, 2021 – The Valens Company (TSX: VLNS) (OTCQX: VLNCF) (the “Company,” “The Valens Company” or “Valens”), a leading manufacturer of cannabis products, today announced that as the next step in its Nasdaq listing process, it will be completing a three for one consolidation (the “Consolidation”) of its common shares (“Common Shares”) on November 16, 2021, in order to meet Nasdaq listing requirements. The Common Shares are expected to commence trading on the Toronto Stock Exchange on a post-consolidation basis on November 18, 2021.
“This announcement represents a milestone towards the listing of Valens’ Common Shares on Nasdaq,” said Tyler Robson, CEO of The Valens Company. “With the recent progress in our application, paired with the share consolidation to meet minimum listing requirements, Valens expects to commence trading on Nasdaq before the end of 2021.”
The board of directors of Valens (the “Board”) believes the Consolidation will result in a number of potential benefits to Valens, particularly in connection with the Company’s application for a secondary listing of the Common Shares on Nasdaq. To be accepted for listing on Nasdaq, the Company must meet certain minimum trading price requirements, which are anticipated to be satisfied as a result of the Consolidation. As discussed in greater detail in the management information circular of the Company dated April 19, 2021, the Board believes there are potential benefits of a Nasdaq listing, including increased visibility of the Company amongst U.S. analysts and investors, increased access to capital and the potential for greater trading volume and liquidity for the Common Shares. The Consolidation has no impact on the dollar value of investor shares.
No fractional Common Shares will be issued upon the Consolidation. All fractions of post-Consolidation Common Shares will be rounded down. The Consolidation will not affect any Shareholder’s percentage ownership in the Company other than by the minimal effect of the aforementioned elimination of fractional Common Shares, even though such ownership will be represented by a smaller number of Common Shares. Instead, the Consolidation will reduce proportionately the number of Common Shares held by all Shareholders.
The Consolidation was previously approved by the Board, as well as by shareholders at the recent annual general and special meeting of shareholders of the Company.
ADDITIONAL INFORMATION FOR SHAREHOLDERS
The Company’s new CUSIP number for the post-consolidation Common Shares is 91914P603 and the new ISIN number is CA91914P6030.
The Company will shortly mail a letter of transmittal (“Letter of Transmittal”) to its registered holders of Common Shares which must be completed and returned to Computershare Investor Services Inc. (“Computershare”) at the address specified in the Letter of Transmittal, together with their share certificates for the pre-Consolidation Common Shares, in order to receive share certificates for the relevant number of post-Consolidation Common Shares to which they are entitled to receive. Questions on how to complete the Letter of Transmittal, or requests for additional copies of the Letter of Transmittal, may be directed to Computershare at 1-800-564-6253 or by e-mail to corporateactions@computershare.com. A copy of the Letter of Transmittal may also be obtained from the SEDAR website at www.sedar.com or from the Company’s website at www.thevalenscompany.com.
Shareholders that hold their Common Shares through a broker, trust company or other intermediary do not need to complete and submit a Letter of Transmittal, as their intermediary will make arrangements on their behalf for their accounts to be updated for the relevant number of post-Consolidation Common Shares that they beneficially hold, as applicable.
For any more information or frequently asked questions please refer to the following link: https://thevalenscompany.com/share-consolidation-faq/
ABOUT THE VALENS COMPANY
The Valens Company is a leading cannabis consumer products company, with significant expertise in manufacturing cannabinoid based products and a mission to bring the benefits of cannabis to the world. Valens provides proprietary cannabis processing services and best-in-class product development, manufacturing, and commercialization of cannabis consumer packaged goods. Valens’ high-quality products are formulated for the recreational, health and wellness, and medical consumer segments and are offered across all cannabis product categories, with a focus on quality and product innovation. Valens also manufactures, distributes, and sells a wide range of CBD products in the United States through its subsidiary Green Roads, and distributes medicinal cannabis products to international markets through its subsidiary Valens Australia. In partnership with brand houses, consumer packaged goods companies and licensed cannabis producers around the globe, Valens continues to grow its diverse product portfolio in alignment with evolving cannabis consumer preferences. Through Valens Labs, Valens is setting the standard in cannabis testing and research and development with Canada’s only ISO17025 accredited analytical services lab, named The Centre of Excellence in Plant-Based Science by partner and scientific world leader Thermo Fisher Scientific. Discover more on The Valens Company at http://www.thevalenscompany.com.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jeff Fallows
The Valens Company
Investor Relations
ir@thevalenscompany.com
1 647.956.8254
KCSA Strategic Communications
Phil Carlson / Elizabeth Barker
VLNS@kcsa.com
1 212.896.1233 / 1 212.896.1203
Media
KCSA Strategic Communications
Anne Donohoe
adonohoe@kcsa.com
1 212.896.1265
NOTICE REGARDING FORWARD LOOKING STATEMENTS
All information included in this press release, including any information as to the future financial or operating performance and other statements of The Valens Company that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “forecasts”, “future”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “should”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, future outcomes of transactions, economic conditions, and anticipated courses of action. Investors and other parties are advised that there is not necessarily any correlation between the number of SKUs manufactured and shipped and revenue and profit, and undue reliance should not be placed on such information.
The risks and uncertainties that may affect forward-looking statements include, among others, that the potential benefits of the Consolidation, including the effect on the Company’s application to list its Common Shares on Nasdaq, will not be achieved, Canadian regulatory risk, Australian regulatory risk, U.S. regulatory risk, U.S. border crossing and travel bans, the uncertainties, effects of and responses to the COVID-19 pandemic, reliance on licenses, expansion of facilities, competition, dependence on supply of cannabis and reliance on other key inputs, dependence on senior management and key personnel, general business risk and liability, regulation of the cannabis industry, change in laws, regulations and guidelines, compliance with laws, limited operating history, vulnerability to rising energy costs, unfavourable publicity or consumer perception, product liability, risks related to intellectual property, product recalls, difficulties with forecasts, management of growth and litigation, many of which are beyond the control of The Valens Company. For a more comprehensive discussion of the risks faced by The Valens Company, and which may cause the actual financial results, performance or achievements of The Valens Company to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to The Valens Company’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on The Valens Company’s website at www.thevalenscompany.com. The risks described in such Annual Information Form are hereby incorporated by reference herein. Although the forward-looking statements contained herein reflect management’s current beliefs and reasonable assumptions based upon information available to management as of the date hereof, The Valens Company cannot be certain that actual results will be consistent with such forward-looking information. The Valens Company cautions you not to place undue reliance upon any such forward-looking statements. The Valens Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell or a solicitation to buy or sell securities of The Valens Company.
Is Green Thumb Industries a Buy?
The multi-state marijuana operator is coming off another strong earnings report.
David Jagielski
(TMFdjagielski)
https://www.fool.com/investing/2021/11/14/is-green-thumb-industries-a-buy/
Key Points
* The company hit record sales in Q3 while maintaining a profit.
* It sells its products in many of the top pot markets in the country.
* Green Thumb's stock has been struggling of late, but it still might be a better buy than many of its peers.
The Horizons Marijuana Life Sciences ETF has fallen more than 12% in the past six months (the S&P 500, meanwhile, is up around 12%) as pot stocks have been fading from investors' radars of late. Over the long term, however, there are significant opportunities in the sector: Analysts from Grand View Research project that the legal marijuana market will grow at a compound annual growth rate (CAGR) of 26.7% until 2028.
Investing in a top multi-state operator (MSO) like Green Thumb Industries (OTC:GTBIF) could be a great way to tap into that potential. But is now the time to buy the stock, or are there better options out there for cannabis investors?
The company's revenue is nearing a $1 billion annual run rate
Green Thumb reported its third-quarter earnings in November for the period ending Sept. 30, during which sales of $233.7 million set a new record and represented 48.7% year-over-year growth. That puts the company at an annual revenue run rate approaching $1 billion. With even some modest growth next year (e.g., less than 10%), it should be a safe bet that Green Thumb generates sales of at least $1 billion for 2022. For this past quarter, the multi-state operator credited greater distribution of its branded products and more traffic at its 65 retail stores for the strong growth numbers.
The company generated revenue from 14 states, including top cannabis markets such as California, Colorado, and Florida. It's also in some markets that legalized recreational marijuana -- New York and New Jersey (neither has commenced adult-use sales yet, but both are promising long-term opportunities). And so, as well as Green Thumb is doing today, its prospects look even better in the years ahead.
Green Thumb is not just growing, but it's also profitable
What makes the company's growth even more impressive is that Green Thumb is able to achieve it while maintaining profitability. This quarter was the fifth in a row where the company reported an accounting profit (i.e., positive net income) as opposed to just a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) number, which is what many businesses in the industry strive for.
The MSO has also brought in $82.8 million in cash from its day-to-day operations since the start of the year, which could help the business expand to pursue more growth opportunities. In September, Green Thumb announced the acquisition of cannabis company GreenStar Herbals, which has two pot shops in Massachusetts to help expand its presence in that state. If Green Thumb continues to generate significant cash, more deals like this could be on the horizon.
Is Green Thumb a cheap buy?
When compared to other large MSOs, Green Thumb's stock is a bit on the expensive side, trading at a forward price-to-sales multiple of more than six:
Read to see the charts at this link:
https://www.fool.com/investing/2021/11/14/is-green-thumb-industries-a-buy/
However, the knock on Trulieve is that its business may be too heavily dependent on Florida (although its recent acquisition of Harvest Health does help to diversify its operations) and Curaleaf's bottom line isn't as impressive, with the company still incurring net losses. Comparatively, Green Thumb isn't trading at a high premium given the factors noted above. While it may not be a dirt cheap buy, it definitely isn't an overpriced stock to be holding right now.
Should you buy the stock today?
Overall, Green Thumb provides cannabis investors with some good value. It's in some promising markets, it's profitable, and it's generating growth and positive cash flow. It has all you can ask for, all while being one of the top marijuana companies in the country.
In the past six months, its shares are down 10%, providing a good opportunity for a discounted entry. This sleeping giant could be one of the better pot stocks to be holding in the years ahead, especially as more states legalize marijuana and more opportunities arise. If you don't already have an MSO in your portfolio, Green Thumb is an investment worth considering.
Looking forward to congressional progress on cannabis.
Key Georgia legislator wants to reexamine medical marijuana bids
In sentencing, prosecutors claimed Burnette, Beshears manipulated Florida medical marijuana law
By: Jeffrey Schweers
CAPITAL BUREAU | USA TODAY NETWORK-Florida
Curaleaf Holdings, Inc. (OTCQX: CURLF) is buying western state operator Tryke Companies known for its Reef Dispensaries in a deal valued at approximately $286 million. The acquisition is expected to close in the second half of 2021. Curaleaf said it will be immediately accretive. Tryke is expected to deliver nearly $110 million in full year 2021 revenue.
Watch --->>> Marijuana Money November 12, 2021
Watch --->>> Marijuana Money November 12, 2021
Watch --->>> Marijuana Money November 12, 2021
Green Thumb: Not Priced For Future Growth
Nov. 12, 2021 2:31 AM ETGreen Thumb Industries Inc.
Cresco Labs Is Smokin' Hot
Nov. 12, 2021 6:30 AM ET
https://seekingalpha.com/article/4468821-cresco-labs-stock-earnings-positive-bullish
Summary
We have been bullish on Cresco Labs for a long time. Our enthusiasm is not waning. There is a lot of positivity in Cresco's new numbers.
The stock is lightly covered by media and given short shrift, while sentiment among analysts and bloggers is very bullish.
Debt is a negligible risk. Price targets over the next 12 months point to a 160% upside.
We have been bullish on Cresco Labs Inc (OTCQX:CRLBF) for a long time. Our enthusiasm is not waning. There is a lot of positivity in the industry and Cresco's new numbers. (See all our articles about Cresco Labs on Seeking Alpha.)
The Numbers Keep Getting Better
The November 11 '21 announcement of Q3 financials reaffirms our position. CRLBF is a healthy investment for retail value investors. The reported revenue of $215.5M is +2.6% quarter-over-quarter and 40.6% year-over-year.
Gross profit with exclusions stands at $116.7M, 54.2% of revenue, which is +9.0% quarter-over-quarter and +48.3% year-over-year.
The adjusted EBITDA of $56.4M is +24.0% quarter-over-quarter.
Cresco collected record net wholesale revenue of $109.3M.
Its record retail revenue of $106.2M came from 37 stores.
Management expects gross profit margins to be higher than 50% through FY '21.
Q4 revenue will be between $235M and $245M.
Management expects the adjusted EBITDA to be at least 30% in the close of 2021.
Despite the share price dawdling over the past year (+5%), we held on to the bulk of our shares. We sold a small number of shares in the spring when the price topped $17. Investors are not giving management due consideration considering company growth and profitability in a smokin' hot industry.
The Industry is Smokin' Hot
Marijuana remains an illegal substance. Federal law classifies it as a Schedule 1 drug. By September '21, 36 states, Washington, D.C., and other territories legalized the drug for medical therapies. 18 states and D.C. allow it to some extent for recreational use. Commentators expect sales of cannabis products to exceed $30B by 2025.
The past October election saw +70% of Philadelphia vote for decriminalization. Colorado voters rejected tax increases on marijuana.
Anheuser-Busch (BUD), Altria (MO), Scotts Miracle-Gro (SMG), Constellation Brands (STZ), and Alimentation Couche-Tard (OTCPK:ANCUF) are major players with substantial investments in cannabis companies.
In July '21, Senators Schumer, Booker, and Wyden unveiled a sweeping bill to federally decriminalize marijuana. On October 11, '21, Seeking Alpha reported the Senators delivered a formal request to U.S. Attorney General Garland "to remove marijuana as a controlled substance" and "to decriminalize cannabis."
An On-target Business Plan
Cresco Labs grows strains of cannabis. It manufactures and markets under a variety of brand names. The company owns and operates 40 outlets and holds 44 licenses. It toll manufactures for other retail/wholesale operators and has a creative edibles operation. Products include cannabis flowers, vape, and disposable pens, resins and extracts, tinctures, capsules, salves, oils and patches, chocolates, toffee candies, gummies, taffy, and other sweets.
Source Seeking Alpha
The company's Quant Ranking is neutral. It is 99th out of 189 in the pharmaceuticals industry and 589th out of 994 in the healthcare sector. The overwhelming consensus among analysts is bullish but Wall Street is neutral.
Source Yahoo Finance
Price targets over the next 12 months range from $12 to $30. The consensus among analysts is a strong buy expecting the price target to be in the low $20s with an upside over 160%. Short interest is negligible.
Insiders own a hefty 20.2% of shares and lend the company money. Institutions and corporations own 3.6%. 76% are owned by the public and others.
Cresco's debt undergirds company expansion. In the world of marijuana sales, it is all about capturing territory and market share. The net debt is offset by the company's stash of $252.8M in cash. Standing against a market capitalization of $4.06B makes the debt hardly worth mentioning as a risk factor.
Regarding profit, SA points out, the company:
swung to a ~263.5M Q3 2021 loss from a ~$25.6M gain in the prior-year period due to a $291M impairment charge. That charge was related to changes in intangible assets originally ascribed to the third-party distribution business, customers, and brands, as a result of the strategic shift in California operations.
Keeping Cannabis Companies in the Shadows
Cannabis companies, licensed by states, face three barriers to their financial growth and the creation of nationwide recognition.
First, dispensaries cannot deposit cash in any bank of choice. The federal government has designated six banks in Illinois, for instance, to accept cannabis cash that 90% of the dispensaries use. Cannabis operators pay hefty fees for normal business services like payroll processing, checking, lending, and limited credit cards. Unable to process credit card payments leaves this multi-billion dollar industry exposed to risks cash-run operations face.
The federal government threatens banks with loss of charters for accepting funds gained from illegal drug sales. In April, the House passed the SAFE Banking Act to open the banking system to cannabis companies, but the bill is stuck.
The second barrier is the ban on advertising not only their products but locations of sales. Courts uphold the prohibitions limiting marketing and advertising. The companies cannot build brands like Camel and Marlboro. Cresco Labs is building its empire online.
product portfolio
Courtesy Cresco Labs Inc.
Another barrier inhibiting growth is the government requirement for dispensaries to maintain a nondescript appearance. Outdoor signage is minimal and windows blocked to limit peeking into the shops at Cresco Labs' Sunnyside retail stores.
The third barrier is traditional stock brokerage firms do not trade the ~420 cannabis companies' securities, but NASDAQ and NYSE list them. This barrier limits their growth from investment opportunities. Last week, JPMorgan Chase & Co. (NYSE:JPM) notified its prime brokerage clients it will not trade cannabis stocks due to regulatory scrutiny related to money-laundering laws and regulations.
Between October '20 and February '21, online stock trades averaged $300M per day. Trading hit $400M one day in January and $652M on Feb 10th. Online searches about cannabis stocks hit every seven-tenths of a second.
Stub of the Story
CRLBF is poised for a significant share price increase. We estimate the price will rise closer to the $30 per share estimate once the Congress and White House set the industry free. It is clear, demand for across-the-board legalization is fomenting. Cresco's products are also in demand and its wholesale business is thriving. Then there looms the chance a multinational will see the value in this vertically integrated cannabis company and make a move on it.
Two Aetna Medicare plans in Maine awarded 5-Star rating
https://cvshealth.com/news-and-insights/press-releases/two-aetna-medicare-plans-in-maine-awarded-5-star-rating
Thursday, November 11, 2021
Plans help provide access to high-quality care for members across Maine
WOONSOCKET, R.I. — Aetna®, a CVS Health® company (NYSE: CVS), today announced that two of its 2022 Medicare Advantage Prescription Drug (MAPD) plans serving Maine, its HMO plan and its Dual Eligible Special Needs (D-SNP) plan, have been awarded 5 stars out of 5 by the Centers for Medicare & Medicaid Services (CMS). Both the Aetna Medicare Value Plan HMO and the Aetna Medicare Assure Plan (HMO-PPO D-SNP) are offered statewide.
The CMS Medicare Star Ratings rank the performance and quality of Medicare Advantage and Medicare prescription drug plans to help beneficiaries and their families compare plans.
“Our strong Star Ratings demonstrate our commitment to providing quality care and value for Medicare beneficiaries across Maine. We’ve developed integrated and close relationships with providers and hospitals statewide,” said Dan Dyer, chief Medicare officer for the Aetna Maine market. “And our Maine members allowed our dedicated team and our providers to serve them in this challenging COVID-19 environment. We take seriously our responsibility to care for our fellow Maine citizens and members by taking the complexity out of health care. We also work closely with our providers, enhance care coordination and patient satisfaction, and create simple, easy-to-use products and benefits.”
Medicare Advantage plans are rated on how well they perform in five different categories:
Staying healthy
Managing chronic (long-term) conditions
Member experience with the health plan
Member complaints
Health plan customer service
MAPD plans are also rated on how well they perform in three additional categories:
Drug plan customer service
Member experience with drug plan
Drug safety
Aetna Medicare Advantage and prescription drug plans are available to Medicare beneficiaries for selection during the Annual Enrollment Period, which started on October 15, 2021, and runs through December 7, 2021. Enrollment becomes effective on January 1, 2022.
The Star Ratings are posted at Medicare.gov. Visit AetnaMedicare.com to learn more about the 2022 Aetna Medicare plans. Or call 1-844-588-0041 (TTY: 711), 7 days a week, 8 AM to 8 PM. A licensed agent may answer your call.
NOTE: Information in this release is based on 2022 Star Ratings data published by CMS on October 8, 2021, and Medicare Advantage and Medicare prescription drug plan enrollment as of September 2021.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
About Aetna
Aetna, a CVS Health business, serves an estimated 34 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, visit www.aetna.com and explore how Aetna is helping to build a healthier world.
Aetna Medicare is a HMO, PPO plan with a Medicare contract. Our SNPs also have contracts with State Medicaid programs. Enrollment in our plans depends on contract renewal. See Evidence of Coverage for a complete description of plan benefits, exclusions, limitations and conditions of coverage. Plan features and availability may vary by service area.
SilverScript is a Prescription Drug Plan with a Medicare contract marketed through Aetna Medicare. Enrollment in SilverScript depends on contract renewal. Every year, Medicare evaluates plans based on a 5-star rating system. ©2021 Aetna Inc.
Media contact
Joe Goode
401-378-5220
Joseph.Goode@CVSHealth.com
Investor contact
Katie Durant
401-770-6442
Katherine.Durant@CVSHealth.com
Green Thumb Industries rallies as profit doubles
Published: Nov. 11, 2021 at 2:01 p.m. ET
By Steve Gelsi
https://www.marketwatch.com/story/green-thumb-industries-rallies-as-profit-doubles-11636657275
Green Thumb Industries CEO stays focused on long-term cannabis industry growth
Green Thumb Industries Inc. managed to double its profit as it continues to scale up its legal cannabis business in the U.S., the company said.
Shares of Green Thumb Industries GTBIF, +15.96% GTII, +15.79% rallied 13.7% on Thursday. The stock is up 1.2% so far this year, compared with a dip of 2.3% by the Cannabis ETF THCX, +2.15%.
CEO Ben Kovler told MarketWatch the company has mostly avoided the price pressure pitfalls of the California market with only one location on Pasadena, as it works to grow its businesses elsewhere.
While investors can’t buy Green Thumb stock on Robinhood because it’s a U.S.-based plant-touching company, the company has issued stock on the Canadian Securities Exchange and it also raises capital through debt offerings.
“There’s differentiation among U.S. operators,” Kovler said. “You want to invest in management teams you can trust. We continue to lead with our numbers and let the results speak for themselves.”
Asked about Virginia’s new Republican governor-elect Glenn Youngkin and whether he’ll hamper the legal cannabis business in the state, Kovler said no one is against jobs or tax revenue, which cannabis will provide. Virginia’s legal cannabis law went into effect in July, and the state is currently crafting regulations to allow for more dispensaries to operate.
“We think we’ll see positive momentum in Virginia,” he said. “Officials there are working on it.”
See Also: Cresco Labs swings to a loss on $261 million non-cash charge – MarketWatch
Looking ahead, Kovler said it’s harder to predict the company’s quarter-by-quarter performance so it doesn’t offer specific performance targets. Its business is affected by factors beyond its control such as when New Jersey will award licenses for adult use cannabis sales or developments on the federal level, he said.
Longer-term trends remain favorable, however, as the legal cannabis industry grows from about $25 billion annual sales in the U.S. now to $75 billion in the next decade.
For now, Green Thumb Industries pays about 7% of its cash generation toward servicing its debt -– the lowest figure among its competitors, he said.
The Chicago and Vancouver-based cannabis company said it earned $20.2 million, or 8 cents a share, up from net income of $9.64 million, or 4 cents a share, in the year-ago quarter.
Revenue increased by 49% to $234 million. Adjusted Ebitda jumped 52.6% year-over-year to $81 million.
The revenue figure matched analyst estimates, but adjusted Ebitda fell short by about $2 million on higher expenses.
Alliance Global Partners analyst Aaron Grey said Green Thumb “continued its consistent performance with a quality quarter amid a more challenging backdrop.”
The company maintained its growth despite pricing pressure as it focuses on Connecticut, New Jersey, New York and Virginia, he said.
“With $286 million cash on the balance sheet, we look for the company to remain prudently active on the M&A front as the company targets attractive limited license markets, while also investing behind existing markets,” Grey said
Why Shares of Green Thumb Industries Are Up More Than 13% on Thursday
The cannabis company's stock got a bump from positive numbers in its third-quarter report.
https://www.fool.com/investing/2021/11/11/why-shares-of-green-thumb-industries-are-up-more-t/
By: Jim Halley (TMFjimhalley)
Nov 11, 2021 at 2:16PM
Key Points
The company doubled earnings and nearly doubled revenue, year over year.
The stock is still down over the past three months.
Motley Fool Issues Rare “All In” Buy Alert
What happened
Green Thumb Industries (OTC:GTBIF) stock rose more than 13% in early trading on Thursday with it climbing nearly $3 a share over the previous day's close. The Chicago-based cannabis company closed at $21.80 on Wednesday. On Thursday, it opened at $22.72 and rose to $24.95 in the early afternoon. The stock is still closer to its 52-week low of $18 per share than its 52-week high, $39.11.
So what
The move was a reaction to the company's third-quarter report, which was released after the markets closed on Wednesday. Green Thumb reported that it more than doubled its net income and earnings per share, year over year, with $20.2 million and $0.08 earnings per share (EPS), compared with $9.64 million and $0.04 EPS in the same period in 2020. The company's quarterly revenue was also a big improvement at $233.7 million, up 5.3% sequentially and 48.7% year over year. Adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA) was $81.2 million, up 52.6% year over year.
Green Thumb is one of the largest multi-state operators (MSO). So far, this quarter, only Curaleaf has posted higher revenue numbers, at $317 million. While the stock, like many cannabis stocks, is down over the past three months, the company is showing economic momentum. It has, it said in the third-quarter report, posted seven consecutive quarters of positive cash flow from operations.
Now what
The company is clearly focused on growing. It has 65 stores across 14 markets, and in the last quarter, added stores in Virginia, Rhode Island, Pennsylvania, Massachusetts, New Jersey, and Illinois. To grow, however, the company has increased its debt. In September, it had $206.5 million in debt, and on Oct. 15, just before the end of the quarter, it raised an additional $33.2 million in debt. That's not a big deal as long as the company's EBITDA keeps growing, but it's something investors should keep an eye on.
As cannabis markets mature, the largest MSOs such as Green Thumb may have an advantage due to higher margins and brand recognition. The race is on for the company to continue to position itself, particularly in expanding markets in the Northeast that have limited licenses.
Green Thumb CEO Ben Kovler, in the company's third-quarter report, said the U.S. cannabis industry is worth $24 billion in annual sales now and he expects that number to triple in size over the next decade as new states and consumers enter the market.
At the moment BTD
Senators Urge Biden To Change Federal Cannabis Policies
Husband of Trulieve Cannabis CEO sentenced to 3 years, fined $1.25M
By MJBizDaily Staff
November 11, 2021
Thank heavens for now that's all it is.
How are they not going to do an R/S?
I am left to hope for a big Q4 once the harvest is processed.
The Street is impressed!!!