Tilray to report a non-cash charge of as much as $28M for Leamington closure
Tilray expects to book a non-cash charge of between $18 million to $28 million when it closes its Leamington, Ont. greenhouse facility later next month. Tilray announced plans to shut the facility last week in a move to cut costs while seeking profitablity. The company previously said it expects to realize roughly $7.5 million in cost savings from the plant's closure. Tilray also said it expects to pay $300,000 in severance payments with as many as 120 staff possibly losing their jobs when the facility shuts down.
Planet 13 sees Nevada recreational cannabis market share climb to about 10%
Planet 13 Holdings, which operates the largest cannabis retail store in the world, reported late Monday first-quarter revenue of US$16.8 million while booking a net loss of US$1.4 million. Revenue rose by about 21.4 per cent from the same quarter a year earlier, but was impacted by the COVID-19 pandemic, the company said in a statement. The company said that its Las Vegas "SuperStore" accounted for about 10 per cent of all recreational cannabis sales in Nevada, and it has seen some success with its new delivery model. Beacon Research said in a report that Planet 13 was set for a new daily customer record in March before the pandemic set in, and could see significant market share gains if it can capture some of the Las Vegas tourism sector once it returns later this week.
Landlords also benefitting from cannabis' essential status in several U.S. states
Being an essential service in many U.S. states has been a boon for some cannabis companies. It's also been a good deal for their landlords, The Wall Street Journal reports. The newspaper finds that Innovative Industrial Properties, which owns cannabis facilities and leases them out to operators, purchased five sites totaling around US$176 million since March, when COVID-19 led to nationwide lockdowns. Meanwhile, shares in IIP are up 54 per cent since that period, the WSJ said. Due to the federal illegality of cannabis, some investors in cannabis real estate companies prefer not to publicize their holdings, while others are worried about damaging relationships with other stakeholders, the newspaper said.
Sundial gets third extension from lenders for credit waiver facility
Sundial Growers got another extension to its credit facility waiver, this time pushing back the deadline the company needs to settle with its lenders to June 5. This is the third such extension Sundial has been granted as the company looks to restructure its debt amid a potential sale of its U.K. operations to help fund its domestic business. Sundial said in a statement that it "continues discussions with its lenders to restructure its credit agreements to strengthen the company's overall financial flexibility and capital structure."
The number of mixed-martial arts fighters polled by The Athletic who currently use cannabis for recovery or recreational purposes. The sports-news website polled 170 professional MMA fighters in its survey.
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