Sales during this year's 4/20 down about 50% from last year, software firm says
COVID-19 may have impacted sales during 4/20 after all. According to data provided by Cova Software, single day sales during the unofficial cannabis holiday this week didn't surpass the figure from 2019. North American stores that use Cova’s software averaged about US$8,000 per location on April 20, down about 50 per cent from the same day last year, the company said. Gross profit fell 54 per cent to US$3,200 while average traffic per store also fell by about 50 per cent, amid social distancing protocols. In Canada, the average spend per transaction was $54, while the average gross profit margin was 31 per cent.
WeedMD to temporarily lay off 40 staff, execs take 25% pay cut due to COVID-19
Toronto-based WeedMD said it is temporarily laying off 40 staffers, while its top executives will be taking a pay cut due to the COVID-19 pandemic. A WeedMD spokesperson said that the company's management and directors will be taking a 25-per-cent pay cut, while the staff reductions account for about 12 per cent of its 340-odd workforce. The company's staff reductions come as a union representing some of WeedMD's workers fight against a request to provide names of employees who have signed union cards, the London Free-Press reports.
Indiva preliminary results show early signs of how Cannabis 2.0 sales fare
Indiva released preliminary first-quarter results on Thursday, providing an early glimpse of how sales of cannabis-infused products have fared since hitting market earlier this year. London, Ont.-based Indiva said its Q1 net revenues are in the range of $2.0 million to $2.2 million, up from $300,000 in the previous quarter. Net sales in March were $1.4 million, the company added. Indiva, which sells pre-rolls, flower, capsules, oils, and edible products, said its chocolate products were among the top ranked items in the Ontario Cannabis Store's edible's category. However, the OCS doesn't provide sales data to corroborate those claims.
FDA warns two companies on deceptive marketing for CBD products
The U.S. Food and Drug Administration has warned two companies for selling unapproved CBD products and marketing those items to help treat opioid addiction. The FDA said in a release Thursday that it sent letters to BIOTA Biosciences and the succinctly-named Homero Corp DBA Natures CBD Oil Distribution for violating the Federal Food, Drug and Cosmetic Act. The companies have 15 days to respond to the FDA's letters explaining how they will correct the violations. Failure to do so may result in legal action, including seizing products or an injuction, the FDA said.