A leading multi-state operator (MSO) saw its shares stumble following a non-growth revenue quarter in its most recent financial report.

This past week also brought the name change of a struggling Canadian cannabis producer trying to find a new identity.

Keep reading to find out more cannabis highlights from the past five days.

Green Thumb drops in value based from recent results

In its Q1 2022 financial report, Green Thumb Industries (CSE:GTII,OTCQX:GTBIF) shared an increase in year-over-year revenues. However, compared to Q4 2021, it performed flatly.

“As I have said before, growth is not linear and there will be quarter-to-quarter fluctuations depending on when new markets open to adult-use sales as well as the timing of our infrastructure investments,” Ben Kovler, Green Thumb founder and CEO, said in a statement to investors.

The cannabis firm reported a US$242.6 million revenue line for its most recent quarter, while in its previous quarter revenue was $243.6 million.

As for its net income, which is still a rarity to see in the cannabis market, Green Thumb reported US$28.9 million or $0.12 per basic and diluted share.

The company celebrated its operations across 15 state markets but particularly pointed to the opening of adult-sales in New Jersey as a catalyst moving forward.

“Our preparations in New Jersey positioned us well for demand on Day One, and we feel confident in our playbook for future adult-use transitions,” the Green Thumb executive said.

At the end of the quarter, the MSO managed 76 active cannabis stores across the US.

Shares of the company took a hit following the release of its latest financials to the market. On Wednesday (May 4), the company finished the trading day with a nearly 2 percent decline for a price per share of C$16.30.

Since then, the over 3 billion dollar valued cannabis company has seen ongoing downturns for its share price. As of Friday’s (May 6) opening bell, the company was down 7.28 percent with a price point of C$15.40.

CannTrust goes for a change in identity

The scandalous case of CannTrust Equity has seen a new chapter as the company enters the next stage of its attempt to return to the market.

It was announced this past week that the firm will now go by the name of Phoena Holdings.

According to the Canadian Press, the firm will attempt to obtain a securities listing in the near future.

It is now owned by Netherlands-based private equity firm Kenzoll B.V., which has a 90 percent stake in the company.

The same equity investor gave the company a C$17 million infusion in order to relieve CannTrust from creditor protection this year.

CannTrust has carried the weight of the most shocking development in the emerging regulated Canadian cannabis industry: Health Canada flagged the firm for growing operations in unlicensed rooms hidden around its Ontario facility.

The revelation led to executive turnover, charges by the Ontario Securities Commision and a serious downturn for the cannabis producer, which at the time was listed on the New York Stock Exchange.

Cannabis company news

  • Tetra Bio-Pharma (TSX:TBP,OTCQB:TBPMF)confirmed a new research and development partnership with Cannvalate, a medical cannabis company based in Australia, alongside a private placement worth C$7.5 million from its new partner. The purpose of the deal was for the company to pursue medical cannabis drug candidate trials in Australia.
  • Akanda (NASDAQ:AKAN)secured its acquisition of Holigen, a European-based cannabis genetics firm held by the Flowr Corporation (TSXV:FLWR,OTC Pink:FLWPF). The deal was completed with payment of C$3.75 million, 1.9 million shares of the firm and an assumption of US$4.3 million debt. The firm also purchased C$1 million worth of FLWR shares. Akanda has already given Holigen US$678,000 for operational needs.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) plans to divest control of several technology related interests and assets to its subsidiary Halo Tek.
  • HEXO (NASDAQ:HEXO,TSX:HEXO)installed an “at-the-market equity program” in order to issue and sell up to US$40 million worth of company shares. The decision is based on a previous agreement with boutique banker Canaccord Genuity. This deal effectively replaces the previously announced offering from the company worth C$150 million.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

From Your Site Articles

Related Articles Around the Web

Source link

Turn leads into sales with free email marketing tools (en)

Join Us

Subscribe Us

Related Post