Zenabis revealed through its Q2 financials that it had returned 554 kilos of cannabis it acquired from Sundial because the product contained mould, pieces of rubber gloves, and foreign bodies. Sundial went public on Nasdaq on August 1 with a USD$1B valuation, and did not mention the half-ton of returned, contaminated cannabis returned in its IPO filing.
- Sundial refused to comment for nearly five days, before dismissing the returned product as an “isolated, immaterial matter” with “another licensed producer” that didn’t affect Q2 earnings. MarketWatch
- MarketWatch editor Jeremy C. Owens said 554 kilograms would be “equivalent to 10%” of its quarterly sales.
- Two days before MarketWatch broke the news, the Financial Post reported Sundial had joined the top-10 LPs for sales with $19.3M net revenue in its most recent quarter.
- Consumers don’t seem to be abandoning alcohol for cannabis.
- Quebec health minister Lionel Carmant said he believes no one smoked cannabis during Quebec City’s summer festival concerts featuring Gucci Mane, Diplo, Voivod, Jason Bonham’s Led Zeppelin Evening, and mysteriously beloved Quebec grindcore act Blasting All Rotten Fuckers (B.A.R.F.).
Journal de Montréal—In French