Organigram stocks spiked 38% after the company reported Q1 net revenue of $25.2M, up from $12.4M last year (including only one month of legal REC), and exceeding consensus estimates of $21M.
- Wholesale sales to other LPs accounted for $9.2M (37%) of the company’s $25.2M sales, up more than 1,500% from the previous quarter’s $535,000. CEO Greg Engel said he was not certain whether the company will continue to act as a wholesaler.
- The company also inked a supply agreement with Shoppers Drug Mart’s MED portal.
- CEO Greg Engel said, “We’re not going to hit any sense of normalcy or predictability until the fourth quarter of this year.”
- Critics found holes in the success: pricing fell 20% in a quarter, only six months’ of cash left, and REC market sales down 40% in the past six months.
Aphria posted a Q2 net loss of $8.2M, down from a profit of $54.8M year over year.
- The company downgraded its predicted net revenue for the 2020 financial year from $650–$700M to $575M–$625M, and adjusted its anticipated EBITDA from $88–$95 to $35M–$42M.
Following its $1.25M investment in Toronto head shop and aspiring REC retailer Friendly Stranger last summer, 48North announced it had entered into a “preferred partnership initiative that guarantees 48North a presence in all existing and future Friendly Stranger retail locations, a commitment to stock 48North products without listing fees.”
- Security and Systems Manager Mike Zmuda pointed out this appeared to breach Ontario’s Cannabis Licence Act’s prohibition on offering “material inducements or benefit[s]” to those with retail licenses.
- Friendly Stranger announced it granted use of its brand to six Ontario REC retail license holders. NewsWire
Toronto LP Avicanna, which does some cultivation in Colombia, signed an agreement to supply MED to Shoppers Drug Mart. All products will be manufactured in Canada, until regulations allow importation.
MJ Biz Daily
National Access Cannabis, doing business as Meta Growth, abandoned its plan to sell its MED clinic division to Evergreen Pacific Insurance Corporation. Potstocks pugilist Betting Bruiser noted “The clinics [have] essentially just became an unwanted cash burn as less than 1% of its revenue derives from its education clinics.”
The Deep Dive, Twitter–Betting Bruiser