Cannabis Briefs for August 27, 2019August 27, 2019
•Aurora Cannabis recently completed its acquisition of Hempco Food and Fiber, paying C$63.4 million ($48m) for Hempco’s brands Praise and Planet Hemp as well as its 56,000-square-foot processing facility in Nisku, Alberta. Aurora first took a stake in Hempco in 2017. It has also made hemp deals in Europe and South America recently, folding them into its standalone Aurora Hemp division. “We believe that hemp is going to be an enormous global business,” Aurora CCO Cam Battley recently told Yahoo Finance, adding that the company would have an announcement pertaining to U.S. hemp operations in the near future.
•California-based Weedmaps has announced that it will no longer list unlicensed cannabis shops on its online directory. The AP reports that Weedmaps was responding to pressure from state regulators concerned with the black-market businesses undercutting the regulated market and the state’s tax revenue. While no precise date has been announced, Weedmaps said that businesses would be required to provide a state licensing number later in the year. In the interest of promoting equity in the cannabis industry, Weedmaps will also launch an initiative to help unlicensed businesses owned by people of color get legal approval.
•Chicago-based Cresco Labs recently released earnings for the quarter ended June 30, in which revenue increased 42% quarter-over-quarter to $29.9 million. The company has a presence in 11 states and logged an adjusted EBITDA of $14.5 million. CEO Charlie Bachtell said, “Most of our revenue is still coming from two markets; fortunately, they are two of the best and fastest growing markets in the country in Illinois and Pennsylvania.” Factoring in acquisitions still being finalized, revenue totaled $52.7 million. Those acquisitions principally include Origin House in California and Valley Agriceuticals in New York, which will give Cresco entry into two key states.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.