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The Deep Dive Weekly Update

This past week saw a number of firms release earnings for the second quarter of 2019, and those who didn't seemed to release guidance to stay relevant in the sector. While several TSX-listed equities reported this week, including Aleafia Health (TSX: ALEF), Village Farms (TSX: VFF), and Zenabis Global (TSX: ZENA), others such as MedMen Enterprises (CSE: MMEN) and The Supreme Cannabis Company (TSX: FIRE) pushed out second quarter guidance ahead of their expected release dates.

Most notably however, were the financials released by Canopy Growth Corp (TSX: WEED), which posted an incredible net loss that was largely unexpected by the sector. While the firm had previously provided guidance towards a loss related to its Acreage Holdings (CSE: ACRG.u) option purchase, few had expected such a drastic figure. Be sure to review our full coverage on the matter to understand exactly what happened to the sector leader.

The Green Organic Dutchman’s Long Awaited Commercial Debut Will be Awaited a While Longer

A very patient and enthusiastic The Green Organic Dutchman (TSX: TGOD) shareholder base anticipating a real world demonstration of the commercial organic cultivation capabilities that have been built up as a narrative by the company were kept waiting again, as TGOD printed cannabis revenues that were frankly embarrassing. Yesterday morning, the stock gaped down on big volume, but has so far retained a market cap above $850 million, extending a well-demonstrated ability to defy gravity.

MedMen Reports Pro-Forma Preliminary Revenue of US$61.3M for Fourth Quarter

MedMen Enterprises (CSE: MMEN) released preliminary financials for the fourth quarter of FY2019, stating system-wide revenues of US$61.3 million for the quarter. The estimate includes revenues from the endlessly pending acquisition of Pharmacann.

Supreme Cannabis Provides Q4 Guidance of $19 Million, Focuses on Capital Efficiency

Supreme Cannabis (TSX: FIRE) announced this week that it was expecting preliminary revenue of $19 million net of excise taxes for the fourth quarter of 2019. As a result of the fiscal year Supreme uses, this is for the month ended June 30, 2019.

Medipharm Labs Reports Revenues of $31 million for Second Quarter

Medipharm Labs (TSX: LABS) filed its second quarter earnings after the bell this week, reporting revenues of $31.47 million for the three month period ended June 30, 2019, and a net income of $1.96 million after tax, making it one of few cannabis focused firms to post a profitable quarter.

Canopy Growth Posts $1.28 Billion Net Loss in Q1 2020

Canopy Growth Crop (TSX: WEED) (NYSE: CGC) posted an over one billion dollar loss in the first quarter of fiscal year 2020 for the firm. The loss came in at over $1.28 billion on a net basis, with net revenues of $90.5 million for the quarter.

The Deep Dive’s Canopy Growth Corp Earnings Explainer

It was blood in the pot market streets today, and the site of the main bleed was 1 Hershey Drive. Sector bellwether Canopy Growth Corp (TSX: WEED) (NYSE: CGC) printed a $3.70 per share loss, lending gravity to an ongoing crisis of confidence in the marijuana sector.

Aphria on Promised Line-By-Line Rebuttal: Neufeld’s Responsibility, Not Ours

Marketwatch put out an article on Aphria Inc (TSX: APHA) (NYSE: APHA) this week, outlining the current status of the company. In particular, it leveled with readers on the status of Aphria’s claimed line-by-line rebuttal, promised by ex-CEO Vic Neufeld following the short report by Hindenburg Research.

Harry Markopolos Calls General Electric “GEnron,” Presents Case for Insolvency

This morning famous CFA and Certified Fraud Examiner, Harry Markopolos released his latest short target, General Electric (NYSE: GE). A website popped up this morning with the domain GEFraud.com where the investment community can take a look at the thesis.

Health Canada Finds Canntrust Holdings Vaughan, Ontario Facility Non-Compliant

Canntrust Holdings (TSX: TRST) (NYSE: CTST) provided a management update this morning related to its current facilities. Within, it identified that Health Canada had forwarded their findings to the company related to an inspection that took place in June at their Vaughan, Ontario facility.

Aura Health Provides Corporate Update on Pharmadrug Operations

Aura Health (CSE: BUZZ) released an operational update for its German operations known as Pharmadrug Production GmbH this week, suggesting the European distributor should see roughly $2.7 million in sales for the year attributable to Aura.

MYM Nutraceuticals Attempts to Back Out of BioHemp Naturals Deal Two Weeks After Closing

It appears MYM Nutraceuticals (CSE: MYM) love for hemp has come to an abrupt end. Just two weeks after closing a 50% purchase of BioHemp Naturals MYM is trying to rescind the transaction after yields look like they’ll be nowhere near what the joint venture partner forecasted.

Green Growth Brands Returns to the Trough Again, This Time for US$127 Million

Green Growth Brands (CSE: GGB) has become a cash incinerator. On July 31, it closed a raise for C$41.48 million, just days after it had announced the bought deal was for up to C$50.2 million. At the time, they had provided a number of justifications for the deal – the majority of which The Deep Dive disputed based on previous company filings. 

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