In this week's "Rising High," The Fly's recurring series focused on cannabis stock news, The Fly looks back at a lift on a vaping ban, a workforce reduction and cannabis earnings.
ALBERTA LIFTS CANNABIS VAPING BAN: Alberta retail stores will be allowed to sell cannabis vape products beginning this week, with products expected to be on the shelves in the next two weeks, the CBC's Joel Dryden reported Sunday, citing the Alberta Gaming Liquor and Cannabis Commission. "We expect retailers will be able to begin ordering products as early as this coming week and there may be limited product from the onset," said Angelle Sasseville, a spokesperson for the government agency. "Like all other products before vapes, inventory will increase in time."
SUPREME CANNABIS REDUCES WORKFORCE: The Supreme Cannabis Company (SPRWF) announced Tuesday the implementation of a new operating structure, including staff reductions, to drive efficiencies and support long-term, profitable growth. Focusing the company on near-term revenue generating opportunities and creating a more nimble and effective corporate structure resulted in a 33% reduction in employee headcount at a corporate level. In addition to ongoing improvements to the company’s operational efficiencies, Supreme Cannabis said it has begun implementing a flatter organizational structure and cost-saving measures across its operating assets, including a reduction in the number of positions at the operational level of approximately 13%. Across the company, the total number of positions have decreased by approximately 15%. As part of management’s enhanced focus on domestic operations and prioritizing near-term profitability, the company exited its investment in Supreme Heights, its UK and European cannabis investment platform, by exercising its retractable rights to return all investments back to the company.
AKERNA EARNINGS: On Wednesday, Akerna (KERN) reported second quarter loss per share of 40c on a revenue of 3.3M which compares to one analyst estimate of a loss of 23c and revenue of $3.17M. “Our results for the quarter ended December 31, 2019, continue to be illustrative of the continued adoption of both MJ Platform and Leaf Data Systems by cannabis enterprises and government entities,” said CEO Jessica Billingsley. “With cannabis legalization continuing to expand and our recent acquisitions of both solo sciences and Ample Organics, Akerna is well-positioned to serve the increasing compliance needs of enterprise cannabis companies, governments, and consumers.”
AURORA EARNINGS: On Thursday, Aurora Cannabis (ACB) reported Q2 cannabis net revenue of C$63.2M which compares to revenue of C$70.8M in Q1. The company also reported production volume of 30,691 kilograms and cash cost to produce per gram sold relatively consistent at C$0.88 per gram. The earnings report came after Aurora announced last Thursday it would eliminate 500 full-time staff and undertake an operations review. The company said, "Consistent with Aurora's release dated February 6, 2020; the company is bullish on the long-term potential for the global cannabis opportunity. However, due to several short-term factors, there is likely to be a slower than previously expected rate of industry growth in the near-term…Aurora reiterates its outlook for fiscal third quarter that cannabis revenue will be impacted by previously mentioned industry headwinds, and as such will likely show modest to no growth relative to fiscal Q2's cannabis revenue, excluding provisions, of approximately C$65M."
HEMP INC. ENTERS LOI WITH ONE WORLD PHARMA: Hemp, Inc. (HEMP) announced Tuesday the execution of a letter of intent between the company and One World Pharma. According to the LOI, Hemp Inc. will purchase 3,000 kilograms of CBD Crude and CBD Distillate every 3-4 months from One World Pharma. The price per kilo will be based on the prevailing U.S. market price less mutually agreed volume discounts. Hemp, Inc. expects its price to be 30% below the U.S. wholesale market prices, at the time of purchase each month. The LOI sets forth a due diligence period and the shipment of a sample from Colombia to the United States.
OTHER CANNABIS STOCKS: Other publicly-traded companies in the space include Aleafia (ALEAF), Aphria (APHA), Biome Grow (BIOIF), CannTrust (CTST), Canopy Growth (CGC), Canopy Rivers (CNPOF), Cresco Labs (CRLBF), Cronos Group (CRON), CV Sciences (CVSI), Delta 9 (VRNDF), DionyMed Brands (DYMEF), Elixinol Global (ELLXF), General Cannabis (CANN), Greenlane (GNLN), Green Thumb Industries (GTBIF), GrowGeneration (GRWG), Harborside (HSDEF), Hexo (HEXO), India Globalization Capital (IGC), Indiva (NDVAF), Innovative Industrial Properties (IIPR), ICC International Cannabis (WLDCF), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), MediPharm Labs (MEDIF), MedMen (MMNFF), MJardin (MJARF), Organigram (OGI), Origin House (ORHOF), Planet 13 Holdings (PLNHF), Real Brands (RLBD), Sproutly (SRUTF), Sunniva (SNNVF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Valens (VLNCF),Vireo Health (VREOF), Wayland Group (MRRCF), WeedMD (WDDMF), Westleaf (WSLFF) and Zynerba (ZYNE).
