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Cannabis Briefs for March 26, 2019

March 26, 2019

•Wakefield, Massachusetts-based cannabis company Curaleaf reported revenue of $77 million for its fiscal year ended in December, up from $19 million a year earlier. Curaleaf took an adjusted EBITDA loss of $9.9 million for the year owing to branding, lobbying, legal, and other costs related to its ongoing expansion. Meanwhile, Curaleaf has partnered with CVS drug stores to place topical CBD products in approximately 800 locations nationwide. Curaleaf has a presence in 12 U.S. states, with 42 dispensaries, 12 cultivation sites, and 10 processing facilities.

•Canopy Growth continues to amass new acquisitions and partnerships. Following the latest data, which showed cannabis flower sales dipping 4% in Canada but extract-based products climbing by an equal amount, Canopy inked a two-year extraction agreement with Victoria, British Columbia-based HollyWeed Manufacturing & Extracts. Under the terms, Canopy will provide cannabis to Hollyweed, which will process it into oil and resin and return it to Canopy. The vertically-integrated giant also acquired Pennsylvania-based hemp company AgriNextUSA to jumpstart a CBD push into the United States. AgriNextUSA’s CEO Geoff Whaling will join Canopy Growth USA as a strategic advisor on hemp and CBD. Terms of the purchase were not disclosed.

•Canadian cannabis producer Tilray saw revenues more than double to $43 million last year, including strong progress in the fourth quarter following Canada’s rollout of recreational sales. However, adjusted EBITDA showed a loss of $33.1 million for the year, attributed to expansion costs. Tilray’s total kilogram equivalents of cannabis sold grew from 3,024 kg in 2017 to 6,478 in 2018. Meanwhile, Hexo Corp. recently reported net revenue of C$13.4 million ($10m) for the three months ended January 31, its fiscal second quarter, up from only C$1.1 million ($0.82m) a year earlier. Hexo took a net loss of C$4.3 million ($3.2m) for the quarter—roughly half the size of its loss from the previous year—citing infrastructure costs.

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