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Black Thursday in The Cannabis Sector

It was a black day for the cannabis sector Thursday after numerous firms reported declining quarter over quarter revenues in the space. While expectations were not high for earnings in general as we entered earnings week for many of the majors, the results have nonetheless been disappointing for those invested in the sector.

Canopy Growth Posts Second Quarter Net Loss of $374.6 Million

Canopy Growth Corp (TSX: WEED)(NYSE: CGC) filed second quarter 2020 financials Thursday morning, reporting net revenues of $76.6 million, a decline of 15% from net revenues seen in the second quarter. Gross revenues amounted to $118.3 million during the quarter, however $32.7 million worth of returns and price reductions and $9.0 million in excise taxes significantly reduced net revenues for the firm.

Aurora Cannabis Sees Revenues Decline 23% to $75.2 Million

Aurora Cannabis (TSX: ACB) (NYSE: ACB) announced its first quarter 2020 financial results after the bell Thursday, recording $75.2 million in revenues for the quarter, compared to $98.9 million in the fourth quarter of 2019. Revenues declined 23.9% on a quarter over quarter basis, which was blamed on distribution and regulatory headwinds within the Canadian market. As a result the firm will be halting construction on multiple facilities.

MediPharm Labs Revenues Increase 37.8% to $43.38 Million

Medipharm Labs (TSX: LABS) announced third quarter earnings Monday morning, posting revenues of $43.38 million for the three month period ended September 30. The firm had a gross profit of $14.75 million, which resulted in a net income of $3.27 million for the period.

Green Organic Dutchman Secures $23 Million Sale Leaseback, Signs Two Non-Binding Term Sheets

The Green Organic Dutchman (TSX: TGOD) announced Thursday morning that the firm has secured up to $103 million in funding through a series of agreements. The funding consists of a definitive agreement for a sale leaseback of the Ancaster Energy Centre, as well as two non-binding term sheets for a construction mortgage term loan and a convertible equity note.

 

Aurora Offers Early Conversion of $230 Million in Debt at Significantly Reduced Price

Aurora Cannabis (TSX: ACB) (NYSE: ACB) announced Thursday evening that it will be conducting a “temporary amended early conversion privilege” related to $230 million worth of convertible debentures coming due in March 2020. In layman terms, it means that the firm has offered a revised conversion price for the converts that are coming due as a means of reducing the cash provisions required to pay off the debt.

Geyser Brands – Established Cannabis 2.0 Brands for the Canadian Market

The consumer goods trend toward putting CBD and other non-psychotropic cannabinoids in everything is driven mostly by the simple fact that it sells. Behind that simple fact is the fact that – at least in the minds of the consumers using them – the products work. People are experiencing reduced pain and inflammation, better skin, a heightened sense of well being, etc. through the use of CBD infuse products and, from the perspective of consumer goods providers, that’s an invitation to give the people what they want.

Pallinghurst Group and Traxys Join Forces in $2 Billion Ethical Battery Material Fund

It was announced Thursday that Pallinghurst Group will be forming a joint venture with that of Traxys to invest up to two billion in mining projects for battery materials. The venture brings together Pallinghurst’s experience in developing major mining projects, with that of Traxys knowledge of supplying cobalt, nickel and other battery grade materials.

Cresco Labs and Origin House Amend Terms of Merger Agreement

Cresco Labs (CSE: CL) and Origin House (CSE: OH) Wednesday morning announced that the terms of their original merger agreement has been modified as was previously alluded to. Under the new terms, Origin House shareholders will receive 0.7031 shares of Cresco Labs for each share held. Previously, holders were to receive 0.8428 shares per share of Origin House.

The Deep Dive Compiles Company Profile for Premier Health Group

The Deep Dive has compiled a company profile for that of Premier Health Group Inc (CSE: PHGI), a healthcare technology company in Canada.

Premier Health uses software as a service (SaaS) to connect patients, doctors, clinics and pharmacies with the goal of eliminating inefficiencies in the current brick and mortar-based system. The firm has utilized technology and artificial intelligence to develop programs that offer telemedicine offerings to patients, and in doing so, improving the efficiency and effectiveness of trained medical practitioners.

 

Nemaska Facility Shutdowns To Be Completed By Years End

Nemaska Lithium (TSX: NMX) announced yesterday morning that shutdowns will be completed shortly at its Whabouchi mine project. The shutdowns are required as a result of Nemaska failing to obtain additional financing in a timely manner.

Tinley Beverages Adds NBA All Star and Vitaminwater Early Stage Investor to Advisory Board

Thursday morning Tinley Beverages (CSE: TNY) announced they added Baron Davis as a special advisor to the company. In case you’re reading this, and wondering, is it that Baron Davis? You betcha’ it is.

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