Investor Ideas Potcasts, Cannabis News and Stocks on the Move; Episode 429 (TSX: FAF) (OTCQX: FFLWF) (OTCQB: SGMD) (OTC: HEMP)
Delta, Kelowna, BC - June 16, 2020 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today's podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
Listen to the podcast:
Investor Ideas Potcasts, Cannabis News and Stocks on the Move; Episode 429. (TSX: FAF) (OTCQX: FFLWF) (OTCQB:SGMD) (OTC: HEMP)
Today's podcast overview/transcript:
Good afternoon and welcome to another episode of Investorideas.com "Potcast" featuring cannabis news, stocks to watch as well as insights from thought leaders and experts.
In today's podcast we look at a few public and private company announcements.
Some of the Financial and Operational Highlights for the Thirteen Weeks Ended May 2, 2020 included:
- Total revenue of $23.1 million at a gross profit of 32.6%, compared to revenue of $9.5 million in Q1-2019 at a gross profit of 38.5% - representing a 142% increase in revenue year-over-year.
- 83% increase in wholesale revenue through Open Fields Distribution in Saskatchewan from $2.1 million in Q4-2019 to $3.9 million in Q1-2020.
- Completed two financings for aggregate gross proceeds of up to $28 million with Green Acre Capital LP as lead investor and AltaCorp Capital Inc. acting as the exclusive financial advisor to Fire & Flower. Additionally, Alimentation Couche-Tard Inc., through an indirectly wholly-owned subsidiary exercised its participation rights in respect of the offerings.
- Entered into a commitment letter for an aggregate amount of up to $10 million with an option for an additional $5 million for non-dilutive credit facilities with ATB Financial, the largest Alberta-based financial institution.
- Amended the provisions of certain debentures and forced conversion of all remaining principal amounts and accrued unpaid interest through the issuance of 12,223,638 common shares of the Company.
- Maintained business continuity during the COVID-19 public health crisis through rapidly implementing safety operating procedures and the ability to continue to serve customers through the Hifyre Digital Retail and Analytics Platform including the Spark Fastlane™ "click-and-collect" service, curbside pickup and home delivery in select provinces.
- Began home delivery in the province of Ontario through the Hifyre™ Digital Retail and Analytics Platform as permitted by the Government of Ontario's emergency order.
Subsequent Financial and Operational Highlights post May 2, 2020
- Hifyre's Spark Perks™ member program achieved the milestone of more than 100,000 members who are typically more valuable customers as they exhibit more frequent transactions with higher basket sizes, compared to non-members.
- Continued to commercialize the Hifyre IQ cannabis data program through building ongoing monthly recurring revenue.
- Began to realize positive financial and operational results from the restructuring plan in the Retail Platform as part of normal-course retail operations announced during Q4-2019.
"Fire & Flower's financial and operational results for the first quarter, fiscal 2020 demonstrate that the Company continues to show positive growth quarter over quarter and over its previous fiscal year. We will continue to work towards positive operating EBIDTA delivered through four-wall retail economics," shared Trevor Fencott, Chief Executive Officer of Fire & Flower. "The Ontario market presents a key growth opportunity for the Company and we will continue to focus on all major markets for private retail across Canada. Both the Open Fields Distribution Platform and Hifyre Digital Retail and Analytics platform provide additional independent revenue opportunities for the Company."
The Medical Cannabis by Shoppers™ team announced the launch of same-day delivery for medical cannabis patients in cities in and around the Greater Toronto Area (GTA).
Medical Cannabis by Shoppers is Shoppers Drug Mart's online platform for the sale of medical cannabis. The service provides patients convenient access to a broad range of products through a single source, alongside expert advice and counsel from trusted healthcare professionals.
The launch of same-day delivery in the GTA will help ensure that medical cannabis patients have continuous access to the treatment they need.
"Similar to traditional medications, disruption in a medical cannabis patient's access to treatment can be damaging. Medical cannabis requires the same level of timely adherence to scheduled dosing as any prescribed medication," said Ken Weisbrod, VP, Pharmacy Business Development & Initiatives, Shoppers Drug Mart. "As part of our commitment to patients and customers to ensure the safe, timely and reliable access to their medical cannabis, we've implemented same-day delivery service for cities in and around the GTA."
Medical Cannabis by Shoppers has partnered with Pineapple Express Delivery, a leading logistics technology company offering specialized delivery services for the legal cannabis industry. Starting this week, customers in areas serviced by same-day delivery will automatically have the option to select the service on check-out. Same-day delivery will be provided free of charge for medical cannabis orders over $100 placed until July 15, 2020.
Sugarmade, Inc. (OTCQB:SGMD), and its BudCars Cannabis Delivery Service, announced record growth in gross profits and gross profit margins for BudCars sales during the month of May (up 46% on a sequential month-over-month basis), and continued strong signals so far during the first half of June, with gross profits growing 9.9% on a week-over-week basis.
The Company believes this performance data provides a template for its per unit operational performance anticipated as it gears up to launch its first Los Angeles hub next month. The Los Angeles cannabis market is arguably the biggest municipal legal cannabis market in the world, and the Company conservatively estimates that its first LA hub will add at least $20 million in annualized sales, with a similar anticipated gross margin profile.
"As we gear up to open our first new hub in the Los Angeles regional market, we continue to see very good signs from our Sacramento hub, with the very rapid topline growth clearly translating to the bottom line as margins hold up and even improve," commented Jimmy Chan, CEO of Sugarmade. "As we recently reiterated, BudCars is not a delivery business comparable to GrubHub or Uber Eats. It is a top cannabis retail business with very consistent 46-52% gross margins on a wholesale inventory with very secure logistical underpinnings. This differentiation has been a source of misunderstanding, and it is critical to fully appreciating our value proposition and our strategy as a Company moving forward."
Management notes that May was the Company's best month on record as far as total gross profits since taking operational control of BudCars, a mark that looks certain to be surpassed by the Company's performance in June, as growth in sales and gross profits continues to race ahead at approximately 10% on a week-over-week basis.
As noted in the Company's June 4 press release, BudCars will surpass $10 million in annualized sales by the month of August at its Sacramento location provided the Company maintains its current pace of growth.
In addition, management believes that performance seen at the BudCars Sacramento hub provides a strong basis for understanding key dynamics that will shape operational performance at the Company's initial southern California BudCars hub, as the Company moves toward the opening of its first Los Angeles location.
Hemp, Inc. (OTC: HEMP), a global leader in the industrial hemp industry with bi-coastal processing centers, including the 85,000 square foot multipurpose industrial hemp processing facility on 9 acres in Spring Hope, NC, a 55,000 square foot state of the art local processing center in White City, Oregon, a 500 acre hemp growing Veteran Village Kins Community in Golden Valley, Arizona, two model "Small Family Hemp Farms" in North Carolina and Arizona, a hemp pre-roll blending manufacturing facility in Las Vegas, NV, a 5,000 square-foot retail store (The King of Hemp Store™) in Kingman, Arizona and recently surpassed over $1 million in sales of their pre-98 OG Bubba Kush buds, announced that the King of Hemp™ website has been updated and enhanced.
The recent website update includes a revamped user interface, Bruce Perlowin's fascinating biography, thorough COA reports, a portal to sign up for a loyalty rewards membership and a more easily navigable online store.
The online store is home to Hemp, Inc. CEO Bruce Perlowin's King of Hemp™ pre-roll line, which offers high-end products that are an effective and flavorful, smokeable alternative to cigarettes and other hemp consumption methods. Bruce Perlowin's recently launched King of Hemp™ pre-rolls use A and B hemp colas which are derived from Pre-98 OG Bubba Kush, one of the top selling cultivars on the market. Oregon's highly skilled hemp cultivators and unique climate, the strain and rich soil lend themselves to the colas being among the highest quality buds on the market, positioning them to be some of the best tasting for consumption.
The King of Hemp™ pre-rolls are compliant with the 2018 Farm Bill, federal regulations, and regulations in the markets where they are available for purchase. The pre-rolls can be purchased individually or in packs of 6 on the newly renovated website. Each pre-roll is 1 gram and does not exceed 0.3% THC.
The Company's website also has CBD oil tinctures available for purchase. The tinctures are available in various potencies and come in two flavors, Natural and Peppermint. The King of Hemp™ tinctures contain full-spectrum hemp oil extracted from the flowers and leaves of hemp plants, are sustainably sourced from Colorado, and are compliant with the regulations created by the Colorado Department of Agriculture in regards to industrial hemp. The tinctures contain .3% or less THC and are compliant with the 2018 Farm Bill.
"We were so excited to bring the King of Hemp™ pre-roll line and the CBD tinctures to market. They have been in such high demand so we decided to roll out with the online shop so customers could have access to them. This has been a priority for us," said Bruce Perlowin, CEO of Hemp, Inc. "Now that all of our current products are available, we have been able to troubleshoot and receive feedback. We decided to implement the constructive feedback by revamping our site, adding COA reports, breaking out the product offerings. We also added my full biography to the website since I wanted to provide insight about my journey and add a personal touch to the King of Hemp™ experience."
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