The Week In Cannabis: Stocks Up, Big Earnings Reports, And Funding Rounds

This was a busy week for the cannabis public markets, with several major companies reporting their quarterly results.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Canopy Growth Corp.&nbsp;(NYSE: CGC) (TSX: WEED) said its net revenue rose by 22% year over year, reaching CA$110 million (US$82 million), in the first quarter of fiscal 2021. Following the results, Cantor Fitzgerald analyst Pablo Zuanic reiterated a Neutral rating on the stock, while raising the price target from CA$ 25.50 ($19.11) to CA$ 27.50.” data-reactid=”20″>Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) said its net revenue rose by 22% year over year, reaching CA$110 million (US$82 million), in the first quarter of fiscal 2021. Following the results, Cantor Fitzgerald analyst Pablo Zuanic reiterated a Neutral rating on the stock, while raising the price target from CA$ 25.50 ($19.11) to CA$ 27.50.

While the company delivered a sales beat for the first quarter, this was against conservative guidance and its B2B (business-to-business) sales growth lagged the industry, Zuanic said in the note.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tilray (NASDAQ: TLRY) reported quarterly losses of $(0.66) per share, missing the analyst consensus estimate of $(0.27). The company reported quarterly sales of $50.40 million, falling short of consensus by 8.4 percent. Zuanic maintained a Neutral rating, but lowered his price target from $8 to $7.9.” data-reactid=”22″>Tilray (NASDAQ: TLRY) reported quarterly losses of $(0.66) per share, missing the analyst consensus estimate of $(0.27). The company reported quarterly sales of $50.40 million, falling short of consensus by 8.4 percent. Zuanic maintained a Neutral rating, but lowered his price target from $8 to $7.9.

“Despite some of the major cannabis companies posting healthy revenue numbers, these businesses continue to operate with heavy losses. What’s funny is that the one company that warned investors about potential problems, GrowGeneration, ended up delivering some of the most solid earnings. Remember under-promise and over-deliver,” Debra Borchardt, Editor-In-Chief of Green Market Report, told Benzinga.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="MariMed Inc. (OTCQX: MRMD) reported a year-over-year revenue spike of 163% for its second quarter, with core cannabis revenues of approximately $9.6 million, compared with $3.7 million from the same three-month period in 2019.” data-reactid=”28″>MariMed Inc. (OTCQX: MRMD) reported a year-over-year revenue spike of 163% for its second quarter, with core cannabis revenues of approximately $9.6 million, compared with $3.7 million from the same three-month period in 2019.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Acreage Holdings Inc. (CSE: ACRG) (OTCQX: ACRGF) is selling its Baltimore, Maryland-based dispensary to an undisclosed buyer. The terms of the agreement are also undisclosed.” data-reactid=”29″>Acreage Holdings Inc. (CSE: ACRG) (OTCQX: ACRGF) is selling its Baltimore, Maryland-based dispensary to an undisclosed buyer. The terms of the agreement are also undisclosed.

The company also disclosed it generated $27.1 million in revenue during the second quarter. That’s a year-over-year increase of 53%. According to the earnings report, its pro forma revenue (non-GAAP measure) spiked 70% compared to the same quarter last year.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Trulieve Cannabis Corp. (OTCQX: TCNNF) reported second-quarter sales of $120.8 million, up 26% sequentially and ahead of consensus analyst estimates of $106.8 million. Trulieve reported a second consecutive quarter of positive cash flow, which jumped from $11 million in the first quarter to $40 million in the second quarter. Adjusted EBITDA for the quarter was $60.5 million, well ahead of analyst estimates of $45 million.” data-reactid=”31″>Trulieve Cannabis Corp. (OTCQX: TCNNF) reported second-quarter sales of $120.8 million, up 26% sequentially and ahead of consensus analyst estimates of $106.8 million. Trulieve reported a second consecutive quarter of positive cash flow, which jumped from $11 million in the first quarter to $40 million in the second quarter. Adjusted EBITDA for the quarter was $60.5 million, well ahead of analyst estimates of $45 million.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Green Thumb Industries Inc. (OTCQX: GTBIF) reported second-quarter sales of $119.6 million, up 17% compared to the first quarter and ahead of analyst estimates of $102.6 million. EBITDA margins also improved from 25% in the first quarter to 30% in the second quarter. The company reported a net loss of $12.9 million for the quarter.” data-reactid=”32″>Green Thumb Industries Inc. (OTCQX: GTBIF) reported second-quarter sales of $119.6 million, up 17% compared to the first quarter and ahead of analyst estimates of $102.6 million. EBITDA margins also improved from 25% in the first quarter to 30% in the second quarter. The company reported a net loss of $12.9 million for the quarter.

Cantor reiterated Overweight ratings for both Trulieve and Green Thumb. Zuanic raised his Trulieve price target from $47 to $50 and raised his Green Thumb price target from $21 to $27, naming them top picks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="GrowGeneration Corp. (NASDAQ: GRWG), fresh off an acquisition of Concord, California-based Emerald City Garden, revealed its second-quarter financial results. The Denver-based company posted revenue of $43.5 million, up by 123% year-over-year.” data-reactid=”34″>GrowGeneration Corp. (NASDAQ: GRWG), fresh off an acquisition of Concord, California-based Emerald City Garden, revealed its second-quarter financial results. The Denver-based company posted revenue of $43.5 million, up by 123% year-over-year.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Canopy Rivers Inc. (TSX: RIV) (PINK: CNPOF) posted first quarter royalty, interest, and lease income of $2.7 million.” data-reactid=”35″>Canopy Rivers Inc. (TSX: RIV) (PINK: CNPOF) posted first quarter royalty, interest, and lease income of $2.7 million.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More on these and other results, including those from MediPharm Labs Corp.&nbsp;(TSX: LABS) (OTCQX: MEDIF), on Benzinga Cannabis’ Earnings Center.” data-reactid=”36″>More on these and other results, including those from MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF), on Benzinga Cannabis’ Earnings Center.

ETFs were up this week. Over the five trading days of the week:

• The ETFMG Alternative Harvest ETF (NYSE: MJ): gained 0.7%
• The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was up 6.5%
• The Cannabis ETF (NYSE: THCX): rose 3.9%.
• The Amplify Seymour Cannabis ETF (NYSE: CNBS): advanced 2%.
• The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 0.45%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="San Pedro will soon open Argentina’s first industrial park for the production of cannabis and its derivatives, pending certain approvals from the country’s federal government.” data-reactid=”44″>San Pedro will soon open Argentina’s first industrial park for the production of cannabis and its derivatives, pending certain approvals from the country’s federal government.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The project will take the form of a public-private initiative, in collaboration with the company Clúster Agroindustrial y Tecnológico del Cannabis. The joint venture will operate within the framework established by Law 27,350/17 and its forthcoming regulations.” data-reactid=”45″>The project will take the form of a public-private initiative, in collaboration with the company Clúster Agroindustrial y Tecnológico del Cannabis. The joint venture will operate within the framework established by Law 27,350/17 and its forthcoming regulations.

The idea is to offer a space for the entire supply chain around cannabis to prosper, helping private companies to connect with the academic sector and develop new products.

The project will not only focus on the therapeutic use of cannabis, but also on the production of food, cosmetic products, textiles, building materials and bioplastics derived from the plant.