Benzinga · Jan 19, 2022
Columbia Care Welcomes Derek Watson As CFO
Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE:3LP) announced on Tuesday that it has tapped Derek Watson to oversee its finance department.
Watson has over three decades of finance and leadership experience and vast knowledge in strategy, investor relations, information technology, tax, treasury, accounting, financial planning and analysis, operational improvement and risk management.
“We have found the right match in Derek and are thrilled to welcome him on board next week,” Nicholas Vita, CEO of Columbia Care said. “His decades of experience will serve him well, and his hands-on dedication to collaboration and innovation are exactly what we need in a CFO to take us into the next phase of our company.”
Lowell Farms Welcomes Jeff Monat To Board Of Directors
Cannabis company Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) said Friday that it has tapped veteran finance executive and cannabis investor Jeff Monat to serve on its board of directors.
Monat is a senior partner at Merida Capital Holdings, a private equity firm targeting fundamental growth drivers underpinning the rapid development of the cannabis industry. His appointment comes as Kevin McGrath departs the Lowell Farms board of directors.
In addition to being an investor in cannabis companies for nearly a decade, he serves on the board of directors at Merida Merger Corporation and as chairman of the board of Steep Hill, Incorporated. He previously worked in analyst roles for Seven Locks Capital, Rockbay Capital, and Goldman Sachs, where he advised clients on M&A transactions, financial valuation and ...
Benzinga · Jan 14, 2022
Below is a recap of the main news related to the cannabis industry and markets for the week of January 10, 2022.
Contents
Tilray’s Earnings And Reactions
Cannabis And Covid
Almost There: Italian Activists Collect Enough Signatures For Marijuana Legalization Referendum
Reports & Data
Cannabis Chart Of The Week: It's Been Better To Be A Lender Than A Borrower
Markets
M&A
Financings
Earnings Reports
Buying Cannabis At The Airport? Prince George Could Become First In World To Open Marijuana Shop
Other News
Eaze Opens Two Dispensaries
Top Stories Of The Week
Tilray’s Earnings And Reactions
Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY) reported its financial results Monday for the second fiscal quarter ended November 30, 2021, with net revenue of $155 million, up by around 20% from $129 million in the same period year ago and down from $168 million in the first fiscal quarter.
The Canadian marijuana giant also announced a new parent name, Tilray Brands, Inc., reflecting the company’s evolution from a Canadian LP to a global consumer packaged goods company with a portfolio of cannabis and lifestyle CPG brands.
Net income increased to $6 million from a net loss of $89 million in the previous year's quarter. Adjusted EBITDA was $13.8 million, representing 8% growth compared to the preceding prior quarter and making for the eleventh consecutive quarter of positive Adjusted EBITDA; Gross profit of $32.8 million was a 7% decrease from $35.3 million in the prior-year quarter.
Following the report, Benzinga spoke with CEO Irwin Simon.
Analyst Reaction
After the results, Pablo Zuanic from Cantor Fitzgerald offered an updated investment model for Tilray. He maintained an Overweight but lowered the price target for the stock to $6.90 from $7.40 on reduced estimates.
“We attach our updated model after talking to management and the release of the 10-Q for the Nov quarter. Conditions in the domestic Canadian recreational market remain challenging, with market share erosion and wholesale destocking leading to a 30% sequential drop in reported sales,” Zuanic noted.
The analyst also highlighted that even though the new estimates reflect less bullish market share assumptions, “the company is implementing several adjustments that should reverse the market share slide.”
Zuanic added that Cantor was still impressed with Tilray's growth.
“Maybe, more importantly, we were positively impressed with the company’s sequential growth in the export business (~40%), generating $7.8 million in sales. As European countries start to legalize cannabis in the next few years (Germany by late 2023?), we believe TLRY is well-placed given its production and distribution infrastructure and established brands (especially in med tinctures).”
Benzinga Cannabis’ content is now available in Spanish on El Planteo.
Later in the week, it was reported that Tilray ended its partnership with AB InBev (NYSE: BUD), quickly turning around to wrap up two previously announced deals to acquire Green Flash Brewing and Alpine Beer Co.
The Canadian cannabis giant purchased the California craft beer brands from WC IPA on Dec. 17, for $5.1 million (CA$6.4 million), in cash and stock, according to the filing with the U.S. Securities and Exchange Commission (SEC).
Cannabis And Covid
As scientists around the world work furiously for nearly the past two years in an attempt to resolve the ongoing global pandemic, new research on cannabis and COVID-19 is providing some hope.
Can cannabis help against the coronavirus?
According to a report, “Cannabinoids Block Cellular Entry of SARS-CoV-2 and the Emerging Variants,” published in the Journal of Natural Products, certain cannabinoid acids from hemp (Cannabis sativa) could prevent infection from the virus that causes COVID-19 by obstructing its entry into cells.
It should be noted this is very early data.
The study led by Richard van Breemen, a researcher with Oregon State's Global Hemp Innovation Center, College of Pharmacy and the Linus Pauling Institute discovered that two cannabinoid acids in hemp - cannabigerolic acid, or CBGA, and cannabidiolic acid, also known as CBDA have the ability to bind to the SARS-CoV-2 spike protein – the virus that causes COVID-19. By binding to the spike protein, these acids can block the virus from reaching into cells and causing infection, concluded the research.
“Orally bioavailable and with a long history of safe human use, these cannabinoids, isolated or in hemp extracts, have the potential to prevent as well as treat infection by SARS-CoV-2,” the researchers noted in the abstract of the study.
“These cannabinoid acids are abundant in hemp and in many hemp extracts,” van Breemen said, as quoted by local media. “They are not controlled substances like THC, the psychoactive ingredient in marijuana, and have a good safety profile in humans.”
Benzinga · Jan 12, 2022
Online cannabis discovery marketplace Leafly Holdings Inc. and Merida Merger Corp. I (NASDAQ: MCMJ), a special purpose acquisition company sponsored by Merida Capital Holdings, announced Wednesday that they have entered into a $30 million convertible note purchase agreement with new investors led by Cohanzick Management LLC and affiliates, an investment management firm.
The supplemental financing is expected to close immediately prior to wrapping up the proposed business combination between Leafly and Merida. The funding will support Leafly's current multi-year business plan.
"This agreement provides additional funding certainty as Leafly enters the next phase of our journey as a public company," Yoko Miyashita, CEO of Leafly said. "Having accelerated our growth trajectory in 2021, we look forward to using this significant new capital to expand ...
Benzinga · Jan 6, 2022
One World Products Announces Minyon Moore As Chairperson Advisory Board
One World Products (OTC: OWPC) announced on Thursday that it is welcoming Minyon Moore to its advisory board.
Moore agreed to serve as chairperson of the board.
The Las Vegas-based company said that Moore would be instrumental in expanding into multiple industries and markets.
In addition, she will also lead One World’s s efforts evaluating various global supplier diversity initiatives like the recent Stellantis National Black Supplier Development Program.
Named one of the 100 Most Powerful Women in Washington by Washingtonian Magazine, Moore is currently a principal at the Dewey Square Group where she leads DSG’s State and Local Affairs and Multicultural Strategies practices.
"Minyon is considered one of the nation’s top strategic thinkers, with extensive experience in political and corporate affairs,” Isiah Thomas, executive chairman and CEO of One World said. “Her extensive background in providing counsel and developing strategies that address emerging consumer markets and public policy goals will be invaluable as we seek to become a leading international supplier of cannabis and industrial hemp.”
Leafly Reveals Post-Combination Board Of Directors
Cannabis-focused Leafly Holdings Inc., an information resource and technology company, reported the names of its board of directors to be appointed effective as of the closing of its business combination with Merida Merger Corp. I (NASDAQ: MCMJ).
Leafly announced that it has inked a definitive agreement for the business combination in August, through which Merida will take Leafly's name and that its common stock will list on NASDAQ under the ticker symbol 'LFLY.' The combined company is projected to have a fully diluted business value of around $385 million and an equity value of approximately $532 million.
The latest move brings extensive expertise across strategy, finance, technology, operations, legal and regulatory, public company governance and cannabis.
The following experts will be appointed directors:
Michael Blue - co-founder of Privateer Holdings, Inc., a cannabis-focused private equity firm that founded a number of cannabis businesses such as Tilray, Inc. (NASDAQ: TLRY), Left Coast Ventures Inc. (NEO: GRAM.U), and Docklight Brands, Inc. The company acquired and owned Leafly from 2011 to 2019, during which time Blue was an officer and director at Leafly.
Cassandra "Cassi" Chandler, a president and CEO ...
