Columbia Care Q4 results below analyst expectations, forecast US$180M in revenue in 2020
U.S. cannabis operator Columbia Care released its fourth-quarter results Tuesday, reporting an adjusted EBITDA loss of US$13.9 million and US$23.2 million in revenue. Sales rose 123 per cent from the same year-earlier period, which the company attributed to expansion of its dispensary network as well as higher consumer demand for its products. Columbia Care said it expects to make between US$155 million to US$180 million in revenue in 2020, led by opening new dispensaries in New Jersey and Virginia, while posting a gross margin north of 40 per cent. Canaccord Genuity analyst Matt Bottomley said the company’s fourth-quarter results came below expectations, but likely has enough cash on its balance sheet to fund its future expansion plans.
Vireo Health notches US$10.5M private placement, partially funded by former Canopy CEO
U.S. cannabis operator Vireo Health International announced Tuesday it raised US$10.5 million in a non-brokered private placement that it says will help fund “various growth initiatives.” The company also announced that it conducted several strategic initiatives over the past three months aimed at reducing corporate expenses and SG&A costs by about 25 per cent. Vireo didn’t disclose in its release if any of those cost reductions were associated with any workforce reductions. Bruce Linton, the company’s executive chairman and former Canopy Growth CEO, contributed approximately 13 per cent of the company’s private placement, Vireo said in a statement.
5 mg of THC may be ideal potency for cannabis-infused edibles, Organigram-backed survey finds
How much is the ideal dosage for cannabis-infused products? It appears that 5 milligrams might do the trick, according to a survey funded by Canadian cannabis producer Organigram Holdings. The survey, which polled 2,001 Canadians, found that the ideal potency of edible products tends to be low, and that more than half of current cannabis consumers will pick edibles over alcohol “some of the time”, now that the product is legally available.
Health Canada official touts how legalization curbed illicit market in UN speech
Canada’s submission to the United Nations’ Commission on Narcotic Drugs hailed how the legalizing cannabis resulted in a stark reduction of the illicit market, but stopped short of advocating other countries pursue the same legalization blueprint the country used. Marijuana Moment reports that Michelle Boudreau, director general for Health Canada’s controlled substances department, told U.N. officials that “rates of cannabis use have not changed among youth and young adults” after legalization, despite a 30 per cent reduction in the illicit market. Boudreau’s comments come after the Commission pushed back plans to reschedule cannabis’ drug classification to December.
-- The approximate cost of the barrel-equivalent of Hexo-branded cannabis oil, according to the Ontario Cannabis Store’s website. The oil – at just 15 milliliters – costs $50.95, slightly more than what a barrel of crude oil trades for following its recent market plunge.
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