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Cannabis Briefs for March 22, 2022

March 22, 2022

•Santa Barbara, California-based Pacific Stone is launching the High End Collection. The new product line features several best-selling cannabis strains including Wedding Cake Indica, Kush Mintz Hybrid, and Blue Dream Sativa, sold in 3.5 gram portions in glass jars. Pacific Stone is also launching 14 gram flower pouches. The new selections are available now in dispensaries across California. Founded in 2015, Pacific Stone claims a 6.5% of the California flower market.

•Chicago-based Cresco Labs has launched several of its brands in Florida’s medical market. Cresco introduced its High Supply, Good News, and Remedi lines in the Sunshine State, as well as a new edibles brand called Sunnyside Chews that’s exclusive to Florida. The company will soon bring its premium flower brand FloraCal Farms and flagship label Cresco to Florida as well. Available in Florida now, Cresco Labs’ brands are stocked exclusively at the company’s 15 Sunnyside dispensaries in the state.

•The Illinois court system lifted a stay order that has prevented regulators from issuing 60 adult-use craft cannabis cultivation licenses. The litigation was brought by 11 applicants who had been disqualified from consideration for the licenses. As part of the decision, Sangamon County judge Gail Noll restored their applications, allowing them to be reconsidered. The ruling cleared the way for the state to issue the licenses, with the end result of significantly boosting the number of growers in the state, which currently sits at a paltry 21 licensed cultivation sites and 110 retail locations. An additional 185 dispensary licenses are also being held up by lawsuits challenging the application scoring process.

•Canadian cannabis sales were down 2% sequentially in January, according to new data from Statistics Canada. Sales fell to C$347.2 million ($276m) in January, down from $354.8 million the month before. That loss was driven in large part by sales declines in Quebec (down C$8 million to C$47.9 million), and Alberta (down C$4 million to C$61.4 million). Ontario rebounded to C$137 million following a major drop to C$127.4 million in December but was still well off November 2021’s haul of C$147.6 million. While sales volume stumbled in January, it was still up 24% compared to the previous January’s total of C$279.5 million ($222m).

•Toronto-based TerrAscend Corp. logged net revenue of $49.6 million in the three months through December, up just slightly from $49.1 million in the prior quarter. The company reported strong quality production at its Pennsylvania facility, which helped it recapture a top-3 position by market share there as it posted an adjusted EBITDA of $19.3 million for the quarter. For the full year of 2021, TerrAscend reported net sales of $210.4 million, up 42% year over year. TerrAscend recently closed on its acquisition of leading Michigan cannabis player Gage Growth and launched a cannabis delivery app under its Apothecarium retail brand.

•Miami, Florida-based Ayr Wellness also reported earnings for the three and 12 months ended December 31. Its quarterly revenue was $111.8 million, up 16% sequentially, and its adjusted EBITDA was flat at $26.1 million. For the year, Ayr reported revenue and adjusted EBITDA of $357.6 million and $98 million, up 131% and 84% year over year, respectively. “2021 was a transformative year for Ayr, with outsized revenue and adjusted EBITDA growth, and an expanded operating footprint bringing us from our two original states to seven leading cannabis markets, with an eighth pending acquisition close,” said CEO Jonathan Sandelman.

•Curaleaf reshuffled its top executives in recent days, announcing that Neil Davidson will take over as interim CFO. Davidson was previously Curaleaf’s CFO in 2019 and 2020 and had been serving as the company’s COO. He’s stepping back into his old role to replace Ranjan Kalia, who is leaving the company. Curaleaf recently reported $320 million in quarterly earnings for the period ended December 31.

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