Curaleaf chairman sees outsized demand for cannabis after Grassroots deal closes
Americans are still stocking up on cannabis as the COVID-19 pandemic rages on, according to Curaleaf chairman Boris Jordan. Jordan told Bloomberg News that Curaleaf saw its highest monthly sales ever in June, with July sales already on pace to be even stronger. His comments came after Curaleaf closed its deal to acquire GR Companies Inc., the parent company of Grassroots, making it the biggest cannabis company in the world by revenue. Eight Capital analyst Graeme Kreindler said in a note that the closing of the deal is an "important proof of concept for future industry consolidation" and expects further M&A to play an "important role" in maturing the cannabis sector.
Ontario pot shops to end delivery, pickup services earlier than expected
Ontario's cannabis retailers are being told by the province's regulator that they must end their delivery and curbside pickup offerings as of Friday at midnight, despite laws stating they have four additional days to provide those services. Ontario allowed pot shops to provide these services in April under an emergency order aimed at curtailing the COVID-19 pandemic. Despite regulations stating that the order has been extended to July 29, the Alcohol and Gaming Commission of Ontario told BNN Bloomberg the "authorized retail stores will no longer be permitted to offer delivery or curbside pick-up effective 11:59 p.m. on Thursday, July 23."
Fire & Flower to expand to B.C. with two new Vancouver shops to open shortly
Fire & Flower is heading to British Columbia. The Canadian cannabis retailer announced Thursday its entry into the western Canadian province's market with two new stores expected to soon open in Vancouver on Granville St. after receiving an "Approval in Principle" from the province's regulator. The B.C. retail regulator, the Liquor and Cannabis Regulation Branch, previously found Fire & Flower to be "fit and proper" for the purposes of receiving final licences, the company said. Altacorp Capital analyst David Kideckel said in a report that Fire & Flower is "further diversifying away from the Alberta market and expanding its presence across Canada."
YSS provides preliminary Q2 results stating $4.7M in sales
Canadian cannabis retailer YSS released preliminary second-quarter results Thursday, disclosing the company made $4.7 million in revenue, while its gross margin came in at $1.4 million. The company said it has "taken steps to improve operational efficiencies," without providing specifics, that have improved the retailer's store-level EBITDA and margins. YSS added it expects to report positive "run-rate corporate" EBITDA by the end of the year. YSS operates 17 locations across Alberta and Saskatchewan.
DAILY BUZZ
|
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the ongoing growth of the Canadian recreational cannabis industry. Read more here and subscribe to our Cannabis Canada newsletter to have the latest news delivered directly to your inbox every day.
Advertisement