Investor Ideas Potcasts #644, Cannabis News and Stocks on the Move - (OTCQX: TLLTF), (NASDAQ: BGXX), (Nasdaq: SNDL), (NASDAQ: HITI)
Vancouver, Delta, Kelowna, BC - February 1, 2023 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site release today's podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
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Investor Ideas Potcasts #644, Cannabis News and Stocks on the Move - (OTCQX: TLLTF), (NASDAQ: BGXX), (Nasdaq: SNDL), (NASDAQ: HITI)
Today's podcast overview/transcript:
In today's podcast we look at a few public company announcements as well as recent news regarding truck driver cannabis impairment.
High Tide Inc. (NASDAQ: HITI) (TSXV: HITI), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, filed its year-end audited 2022 financial results on January 30, 2023, the highlights of which are included in this news release. The full set of audited consolidated financial statements for the fiscal years ended October 31, 2022, and 2021 (the "Financial Statements") and accompanying management's discussion and analysis can be accessed by visiting High Tide's website at www.hightideinc.com, and its profile pages on SEDAR at www.sedar.com, and EDGAR at www.sec.gov.
Some of the 2022 Fiscal Year Financial Highlights included:
- Revenue increased by 97% to $356.9 million for the year ended October 31, 2022, and increased sequentially by 14% to $108.2 million in the fourth quarter of 2022
- Gross profit increased by 58% to $101.0 million for the year ended October 31, 2022, and increased sequentially by 15% to $29.5 million in the fourth quarter of 2022
- Adjusted EBITDA4 was a record $14.6 million for the year ended October 31, 2022, up 17% versus the prior year, and was $5.0 million for the fourth quarter of 2022, up 18% sequentially, and up 206% versus the fourth quarter of 2021
"I am thrilled to share these results, which, once again, deliver record-breaking revenue and adjusted EBITDA which further solidifies High Tide's position as the largest revenue-generating cannabis company in Canada with a current annual run rate of over $450 million. While these numbers demonstrate exponential revenue growth, it's also important to note that we have maintained adjusted EBITDA level profitability for 11 consecutive quarters and that we were cash flow positive from operations during the last fiscal year. In our opinion, this is because we have the strongest retail concept in Canadian cannabis, something that is backed up by the fact that our Cabana Club loyalty program now has approximately 950,000 members across 151 Canadian stores. I am also excited to report that we have already upgraded over 6,000 members into ELITE. As we continue to introduce more ELITE offerings, we anticipate upgrades to continue throughout 2023, providing us with an additional high-margin recurring revenue stream to further boost our bottom line.
On top of all this, our same-store sales increased by 50 percent year-over-year, something that is an anomaly amongst North American cannabis companies. Our bricks-and-mortar margins have slowly but steadily ticked higher over the last two quarters, and we expect this to continue, which will help amplify the impact of our anticipated same-store sales increases. Our growing customer loyalty and value-focused strategy have resulted in the rapid conversion of illicit market consumers and have helped to increase our market share by approximately 1% per quarter for the last four quarters. With these increases, Canna Cabana now serves roughly 13% of Canadian cannabis consumers outside of Quebec. We also continue to be a global player in the retail sale of consumption accessories through our world-leading e-commerce platforms and our Canadian bricks and mortar stores." said Raj Grover, President and Chief Executive Officer of High Tide.
"Considering the challenging macro environment and where our equity value stands today, we have meaningfully slowed down our M&A activity and are primarily looking at smaller, highly accretive bricks-and-mortar opportunities to focus on free cash flow generation from our existing business lines. I want to sincerely thank our customers, team members, and shareholders for another stellar year as the retail market leader in Canada, and I look forward to delivering more of the same in 2023, with continued market share gains and further improved cash flow generation. I also want to acknowledge our industry and government partners who worked tirelessly to ensure that we, as an industry, continue to make progress toward greater sustainability within the cannabis sector." added Mr. Grover.
Miscellaneous Employees Teamsters Local Union 987 have won an unfair labour practice complaint filed against Sundial Growers Inc. at the Alberta Labour Relations Board.
The Teamsters complaint was about Sundial's conduct in relation to a union organising meeting being held by Teamsters 987 in July, 2022. The purpose of the union meeting was to inform Sundial employees working at Sundial's cannabis growing and processing facility in Olds, Alberta about the benefits of being represented by the Teamsters union. The information and organizing meeting was being held by Teamsters at the Olds Public Library.
The complaint alleged that Sundial managers intentionally disrupted the meeting.
After hearing evidence about what happened, the Alberta Labour Relations Board decided in favour of Teamsters. The Board ruled that Sundial's managers had intentionally and wrongfully disrupted the Teamsters organizing meeting. The Labour Relations Board held that Sundial had violated the Alberta Labour Relations Code by interfering with the representation of employees by a trade union, and by intimidating employees to compel them to refrain from joining a trade union. To remedy the misconduct, the Board has directed Sundial to provide the Teamsters with access to Sundial's workplace, so that Teamsters 987 representatives can meet with all Sundial employees for mandatory employer-paid union information and organizing meetings.
Preston Quintin, Member Engagement and Recruitment Co-ordinator, Teamsters 987 said, "We will always fight for workers across Alberta, and in this instance, employees were facing intimidation to refrain from learning about our union." He continues, "We are pleased with the outcome and we want all workers to know that we stand with them."
This follows SNDL Inc. (Nasdaq: SNDL) announcement earlier in January of the completion of the previously disclosed acquisition of all of the issued and outstanding common shares of The Valens Company Inc., other than those held by SNDL and its subsidiaries, pursuant to a plan of arrangement under the Canada Business Corporations Act, for total consideration of approximately $138 million2 consisting of common shares of SNDL and assumption of Valens' $60 million non-revolving term loan facility. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.
With approximately $262.5 million3 in net cash and no debt, SNDL will continue to have one of the strongest balance sheets in the North American cannabis industry. SNDL will also have the highest pro forma consolidated net revenue among all Canadian cannabis companies based on the last fiscal quarter of each company on an annualized basis. The combined company will operate as SNDL Inc., headquartered in Calgary, Alberta.
Bright Green Corporation (NASDAQ: BGXX), one of the very few companies selected by the U.S. government to grow, manufacture, and sell, legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export, announced that it has commenced utilization of the U.S. Citizenship and Immigration Services' (USCIS) EB-5 Program to accelerate its 2023 growth strategy and generate significant capital for use in its greenhouse construction and operations in Grants, New Mexico.
United States Citizenship and Immigration Services ("USCIS") administers the EB-5 Program, under which investors, their spouses and unmarried children under 21 years of age are eligible to apply for a Green Card (Permanent Residence Card) if they make the necessary investment in a commercial enterprise in the United States. As a requirement, the investment made by applicants associated with each visa issued must create or preserve a minimum of 10 permanent full-time jobs for qualified U.S. workers. The EB-5 Program, which President Biden reauthorized in 2022, is an innovative vehicle for spurring investment and job creation in rural communities. Bright Green's participation will add significant value to the region, while also generating the capital needs for its commercial and business initiatives.
"Today marks a significant step for Bright Green as we make further progress executing on our strategy for our facility in New Mexico," said Bright Green's Executive Chairman of the Board, Terry Rafih. "The EB-5 re-authorization allows us to generate the capital required to execute on our plans to create a world-class facility in New Mexico and recruit the best scientific minds in the world. It is extremely exciting that this initiative will not only support our ability to deliver our vision for the region and our revenue-generating plans but, importantly, it will also have a positive social and economic impact for the rural community in this state."
The Governor of New Mexico, Michelle Lujan Grisham, said, "I congratulate the Bright Green team on the launch of its EB-5 program. President Biden has re-authorized the EB-5 program, which is now an advantage for projects in rural America. This federal initiative signals the opportunity for the creation of a significant number of new jobs in New Mexico and across the United States, which is very welcome news. I am delighted to share this announcement with the Bright Green team today."
Governor Lujan Grisham continued, "Equally as important as job creation to every New Mexican and American, Bright Green has a pathway to research the possibilities of plant-based medicines and their impact. Bright Green has developed and matured a relationship with the U.S. Drug Enforcement Administration (DEA), the State of New Mexico and the U.S. Food and Drug Administration (FDA) in how this research can be developed and ultimately delivered. Bright Green, with access to the required capital, can now create and fulfill significant medical opportunities in the State. Importantly, the Bright Green Scientific Advisory Board has the experience in research, development and the FDA approval processes to make a difference in one such new drug as a replacement for addictive opioids. Addiction is one of the driving factors contributing to the current homeless crisis. Every State and every family in the Nation are affected by this problem. With this huge investment and partnership, I know Bright Green will make a difference for cannabis research and new medicines. Bright Green's plans to develop facilities using only renewable energy further fosters both the State of New Mexico and the Federal view of the benefits of clean air and clean energy. This adds to the types of companies and their technologies we look for to make New Mexico a great place to live and do business, bringing new ideas with sustainable employment opportunities."
TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced the Pennsylvania launch of Black Buddha Cannabis, a Black and woman-owned and led, environmentally conscious, social impact driven cannabis wellness brand. Previously launched in Massachusetts, Black Buddha Cannabis is now available across Pennsylvania from TILT's subsidiary, Standard Farms LLC.
"Launching in two key markets is exciting and only achievable with a strong partnership. I value the team effort and collaboration with TILT, as well as our shared commitment to creating space in the cannabis marketplace for quality products from diverse producers," stated Roz McCarthy, Founder and chief executive officer ("CEO") of Black Buddha Cannabis.
McCarthy's vision for Black Buddha Cannabis is to promote optimal wellness across every aspect of life and support each patient to achieve their potential and live with passion and purpose. In alignment with that purpose, the initial offering in Pennsylvania focuses on supporting euphoric and positive effects provided from a sativa-leaning, hybrid flower. The line is called Blyss and is available in an eighth or in a vape of expertly grown, premium cannabis.
"The Standard Farms team's ability to expand its variety of new brands and product offerings to market indicates the growth and maturity of our operations," shared Gary Santo, CEO of TILT. "We revamped our in-house infrastructure last year, continually refining it to meet brand partner needs while bringing quality products to Pennsylvania. This is our first launch in the new year for Standard Farms and, based on our established foundation in the market, we expect to successfully bring this exciting social impact driven wellness brand to the community as part of our growing line of brand partner products."
Dispensaries in Pennsylvania interested in Black Buddha Cannabis or other brand partner portfolio products from 1906, Airo, "H" by Ricky Williams or Old Pal, should contact our wholesale team to order at firstname.lastname@example.org.
Listen to our recent interview with Gary Santo, CEO of Tilt Holdings here.
In other recent news, "nearly 41,000 truck drivers tested positive for marijuana in 2022, a 32% increase over 2021, according to a report recently compiled from data in the Federal Motor Carrier Safety Administration's Drug & Alcohol Clearinghouse."
The new report shows that more than 100,000 truck drivers have tested positive for marijuana since FMCSA opened the Clearinghouse on Jan. 6, 2020. Truck drivers who test positive for marijuana - and other drugs - are prohibited from driving, and must enter a "return-to-work" process and retest to get back behind the wheel.
Cocaine, methamphetamines and amphetamines placed second, third and fourth, respectively, among substances accounting for the most truck driver drug-test failures. The top four drugs accounted for 90% of the 177,376 total positive test results in the three-year history of the Clearinghouse. The agency tests for a total of 14 substances.
"Unfortunately, the number of marijuana positives in the Clearinghouse continues to trend in the wrong direction," said Dan Horvath, vice president of safety policy for American Trucking Associations. "When you take into account legalization efforts across the country, coupled with misinformation about when marijuana use is legal or not, I'm not at all surprised. The simple fact is not a thing has changed with regard to this DOT-regulated industry - specifically, CDL holders."
The rising numbers of positive marijuana tests underscore concerns raised earlier this month by the National Transportation Safety Board. In a report, the NTSB recommended that the Department of Transportation add a warning label to cannabis products regarding the potential for driving impairment, make enhancements to state drug-impaired driving laws, and standardise technology testing for the detection of drug use.
This news was from Marijuana Moment - All your cannabis news, in one place, a great resource for cannabis news as well as detailed information regarding regulations in each state and psychedelic law reform.
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