Tilray reports mixed results for third quarter
Tilray says Canadian operations will be profitable ahead of company as a whole
Tilray CEO Brendan Kennedy is eyeing profitability for the B.C.-based cannabis producer. Kennedy told Bloomberg News that while the company as a whole is expected to be profitable by the end of 2020, its Canadian operation are expected to hit that target earlier. ”It’s likely our business in Canada will be EBITDA-positive before the rest of our business, just because it’s at a different stage of development,” he told Bloomberg. The company has enough cash on hand to fund its operations until it becomes cash flow positive, but Kennedy told analysts late Tuesday that the company is “likely” to tap debt markets to provide enough financial cushion to last to the end of next year.
Cresco Labs deal for Origin House repriced to $496M, includes new financing
Cresco Labs’ $1.1 billion deal to acquire Origin House was repriced on Wednesday, with both companies now amending the share ratio that Origin House shareholders will receive as part of the transaction. Origin House shareholders will now receive 0.7031 of a Cresco Share for their common shares of their holdings, and 70.31 Cresco shares for each Class A Origin House share. Previously, the ratio was set at 0.8428 when the deal was first announced earlier this year. That brings the value of the deal to $496 million, according to Canaccord Genuity analyst Derek Dley. Origin House will hold a second meeting of its shareholders to approve this transaction in late December, with an anticipated closing date of mid-January. In addition to the repricing, Origin House plans to raise $40 million in new financing by issuing 9.7 million new shares.
Inner Spirit launches online ordering and delivery for legal pot, but only for Saskatchewan
Canadian cannabis retailer Inner Spirit Holdings, which operates its stores under the Spiritleaf brand, launched online ordering on Wednesday. The only problem? It’s only available in Saskatchewan, a province which has tapped the private-sector in distributing recreational cannabis rather than owning its wholesale business. Inner Spirit launched the new initiative in partnership with Shopify, Canada Post and Pineapple Express, the company said in a statement. Darren Bondar, the CEO of Inner Spirit, said its online ordering platform could be “put to work in other jurisdictions if additional markets become accessible.” The announcement comes on the heels of Ontario announcing it plans to allow authorized retail stores in the province to sell cannabis products online, but stopped short on delivery.
Sundial Growers reports Q3 revenue rises to $33.5M, net loss widens to $97.5M
Calgary-based cannabis producer Sundial Growers reported third-quarter revenue increased to $33.5 million, up 74 per cent from the prior quarter, the company said in a release late Wednesday. Sundial said it sold 7,944 kilograms of cannabis in Canada, up 70 per cent from the second-quarter of the year. The company also said it reported a Q3 net loss of $97.5 million, attributed to an acquisition of Bridge Farm Group and the termination of an unnamed royalty obligation. Analysts polled by Bloomberg expected Sundial to report Q3 revenue of $29.4 million. Sundial shares are down 72 per cent since the company went public on the Nasdaq exchange in August.
-- The total amount of Canadian agricultural crop receipts that cannabis accounted for in 2018, according to Statistics Canada.
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