STOCKS TELEGRAPH

Tag: cannabis

  • Tilray Inc. (TLRY) Stock Surges Following Announcement of Promising Financial Reports for Fiscal Q4 2021

    Tilray Inc. (TLRY) stock prices were up 22.47% as of the market opening on July 28th, 2021, bringing the price per share up to USD$15.69 early on in the trading day.

    Net Revenue Breakdown

    Net revenue for the fourth quarter of fiscal 2021 was reported at USD$142.2 million, up 25% from the USD$113.5 million reported for the prior year quarter. The increase was largely driven by a 36% increase in net cannabis revenue, which was reported at USD$53.7 million. This included a four wee contribution from legacy-Tilray, a 10% decline in distribution revenue, and a net beverage alcohol revenue of USD$15.9 million as a result of TLRY stock’s acquisition of SweetWater on November 25th 2020. Also contributing to the year-over-year increase was wellness revenue in the amount of USD$5.8 million from Manitoba Harvest.

    Income and Adjusted EBITDA

    Net income for the 2021 quarter came in at USD$33.6 million, a massive improvement from the net loss of USD$84.3 million reported in the prior year quarter. Adjusted EBITDA was up to USD$12.3 million during the fourth quarter of 2021, representing a massive 285% increase from the USD$3.2 million reported in the prior-year quarter. This marks the ninth consecutive quarter of positive Adjusted EBITDA.

    TLRY Stock’s Gross Profits

    Gross Profits were down to USD$22.5 million for the quarter, a 19% decrease from the USD$27.8 million reported in the prior-year quarter. Gross profits for the quarter included a one-time inventory valuation adjustment of USD$19.9 million, derived from excess inventory quantities as of the business combination with Aphria. Adjusted gross profit was reported at USD$42.4 million, a 53% increase from the USD$27.8 million reported for Q4 2020.

    Ongoing Cost Synergies

    TLRY stock anticipates facilitating significant cost synergies amounting to a total of USD$80 million within eighteen months of closing its business combination with Aphria Tilray. These cost synergies are forecasted to be focused in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, as well as corporate expenses. So far, the company has achieved USD$35 million in synergies.

    Future Outlook for TLRY

    Armed with the success of its most recent financial reports for the last quarter of fiscal 2021, TLRY is poised to continue its trajectory of success into the new year. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value.

  • Grove Inc. (GRVI) Stock Surges Following Announcement of Successful Fiscal 2021 Financial Reports

    Grove Inc. (GRVI) stock prices were up 35.54% as of the market opening on July 28th 2021, bringing the price per share up to USD$6.30 early on in the trading day.

    Revenue and Net Income Reports

    July 28th 2021 saw GRVI stock, the Nevada based company that is revolutionizing the hemp industry, report preliminary and unaudited financial results for the fourth quarter of fiscal 2021, ended June 30th 2021. The company reported revenues ranging from USD$10.1 million to USD$10.4 million, representing a massive 300% increases over the numbers reported for the prior year quarter. Net income is expected to range from USD$1.5 million to USD$2 million, up from a net loss of more than USD$700,000 in the fourth quarter of fiscal 2020.

    2021 Full Year Report

    GRVI stock reported expecting full year revenues for the full fiscal year in the amount of USD$23.6 million to USD$23.9 million, a substantial 200% increase over the USD$7.4 million reported for the fiscal year 2020. Net income for the 2021 year is expected to range from USD$2 million to USD$2.5 million, up from a considerable net loss of USD$5 million for the fiscal year 2020. Full financial results for the fiscal year 2021 are expected around September 15th 2021.

    GRVI Stock Exceeding Expectations

    The company is pleased to announce having exceeded all of its internal projections for growth and profitability over the course of 2021 so far. Driven by a combination of a stellar workforce and an effectively executed business strategy, the company continued to expand the scope of its growth while sustaining profitability.

    GRVI Stock Planning to Reinvest

    The company is keen to enter the fiscal year 2022 riding the momentum generated over the fiscal year 2021. The current years financial success afford the company flexibility in investing to further consolidate and enhance internal growth. A solid balance sheet and continued positive cash flow from operations will see the company invest heavily in facilitating the growth of GRVI stock’s Products and Manufacturing. Investments are also expected to be made in an Extraction and Lab Facility to pioneer the R&D in the Hemp and Wellness industries.

    Future Outlook for GRVI

    Armed with the immense success of its preliminary and unaudited financial reports for the fiscal year 2021, GRVI stock is poised to capitalize on its momentum. The company is keen to continue its trajectory of success into the new fiscal year, hoping to drive additional growth. Investors are hopeful that management will continue to execute its strategy so as to usher in further gains in shareholder value.

  • Organigram Holdings Inc. (OGI) Stock on the Rise Following Improved Financials for Q3 2021

    Organigram Holdings Inc. (OGI) stock prices were up 12.83% shortly after the trading day commenced on July 13th, 2021, bringing the price per share up to USD$2.99 early on in the trading day.

    Net Revenue Reports

    Net revenues for the third quarter of fiscal 2021 were up 13% from the prior-year quarter, resulting primarily from higher adult-use recreational net revenue and higher wholesale revenue reported for the 2021 quarter. The third quarter of fiscal 2020 reported a reduction in adult-use recreational net revenue, stemming from a provision for product returns and pricing adjustments in the amount of USD$3 million. This, in turn, was largely motivated by slow-moving oil and certain flower products.

    Gross Revenue

    The same factors contributed to gross revenues for the third quarter of fiscal 2021 also increasing, up 31% as compared to the third quarter of 2020. Cost of sales for the quarter were down from the previous year, with the year-over-year difference being largely attributable to USD$30 million in inventory write-offs and provisions. Further compounding the difference were changes in the workforce in the 2020 quarter, instigated by the onset of the global pandemic.

    Improvements in Gross Margin

    Gross margin for Q3 2021 was up a significant 104% from the negative Q3 2020 gross margin, largely driven by fair value changes to biological assets and the sale of inventory. Net non-cash positive fair value changes to biological assets and inventories sold in the third quarter of 2021, as compared to the negative changes reported for the prior year quarter.

    Solid Liquidity Position

    The company reported a significant year-over-year improvement of 163% in their liquidity position. April 1st 2021 saw the company having repaid the entirety of its outstanding balances, in the amount of almost USD$58.5 million, as per its credit agreement with BMO and a cohort of lenders. This move is expected to save the company USD$2.7 million in annual interest savings. The company currently has a solid liquidity position of USD$222 million in cash and short-term investments.

    Future Outlook for OGI

    Armed with a solid liquidity position and the disclosure of healthy financials, OGI is poised to capitalize on the momentum generated by its success in Q3 2021. Current and potential investors are keen to see the company leverage the resources at its disposal to continue its trajectory of success, in order to usher in long term increases in shareholder value.

  • Hydrofarm Holdings Group, Inc. (HYFM) Stock Undergoes Volatility ‎Following Acquisition of Aurora

    Hydrofarm Holdings Group, Inc. (HYFM) Stock Undergoes Volatility ‎Following Acquisition of Aurora

    Hydrofarm Holdings Group, Inc. (HYFM) stock prices were down by a concerning 4.54% as of the market closing on June 17th, 2021, bringing the price per share down to USD$54.43 at the end of the trading day. After-hours trading saw the stock rally by 4.34%, bringing it back up to USD$56.79.

    Acquisition of Aurora

    The company announced on June 17th, 2021 that it had entered into an agreement that would oversee that acquisition of Aurora. The deal will result in the acquisition of Aurora Innovations, Aurora International, and Gotham Properties, the latter of which is a manufacturer and supplier of organic hydroponic products, based out of Eugene, Oregon.

    Expansion of Offerings

    The acquired company’s Roots Organics and Soul soil and grow media and nutrients brands will be added to HYFM’s product portfolio. The catalogue of offerings will also be expanded to include Aurora’s Procision perlite and peat moss professional mixes as high-performance, proprietary branded products.

    Funding the Acquisition

    The closing transaction will be funded for a total consideration of USD$161 million, which will be a combination of both cash and company stock. The newly issued HYFM common stock will amount to approximately USD$26 million. The transaction considered does not include a potential earn out a payment that could amount to USD$21 million, depending on the achievement of certain performance metrics. As per the agreement, Aurora will become a wholly-owned indirect subsidiary of HYFM. The closing of the transaction is expected for the end of July 2021, following the satisfaction of customary closing conditions

    Scope of Merger

    The strategic collaboration serves to make HYFM’s stated goals of acquiring high-growth businesses more accessible. Targeted companies for acquisition are selected based on attractive margin profiles and in-house manufacturing and/or ownership of the branded products being sold. HYFM forecasts Aurora to generate almost UD$60 million in net sales for the full calendar year 2021. In conjunction with the estimated earnout payment, the full transaction consideration represents an acquisition value that come out to almost nine times the numbers reported for Aurora’s Adjusted EBITDA for 2021. This excludes synergies but is inclusive of the net present value of estimated tax benefits resulting from the transaction.

    Future Outlook for HYFM

    Armed with the latest in a string of potentially profitable acquisitions, HYFM is poised to continue its trajectory of success. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • 22nd Century Group, Inc. (XXII) Stock Trending Down as Changes to Tobacco Regulation Still Pending

    22nd Century Group, Inc. (XXII) stock prices were down 1.74% as of the market closing on June 15th, 2021, bringing the price per share down to USD$4.52 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rally by a marginal 1.11%, bringing it up to USD$4.57.

    MTRP Authorization

    The company is allocating efforts towards the securing of Modified Risk Tobacco Product (MRTP) authorization for the company’s proprietary VLN. XXII is confident that its MRTP application submitted to the U.S Food and Drug Administration is in its final stages of review, with no currently outstanding requests for further information or filing.As such the company is poised to capitalize on the commercial launch of its VLN King and VLN Menthol King products, which it will do so within 90 days of securing the MRTP designation. This includes the use of marketing campaigns to raise brand awareness.

    Impending Changes in Nicotine Regulation

    XXII also believes that the FDA is considering implementing a product standard that would require all cigarettes to be minimally or non-addictive. Of course, this sets VLN up to capitalize on the increased market space, given that it already meets that requirement. The company is confident that the paradigm shift in conjunction with the enactment of a nicotine cap will result in favorable market conditions. XXII has reported being ready and willing to license its reduced nicotine tobacco technology to all the cigarette manufacturers hoping to regain compliance with the newly imposed mandate.

    Promising Financial Reports

    Net sales revenue reported for the first quarter of the fiscal year 2021 came in at USD$6.8 million, as compared to the USD$7.1 million reported in the same time period of the prior fiscal year. Gross profits were up to USD$647,000 in Q1 2021, representing a USD$360,000 year-over-year increase. Accordingly, gross profit margins improved by 540 basis points. This represents the fifth consecutive quarter that has seen year-over-year improvements, signaling XXII’s ability to successfully execute its ongoing business plans.

    Stellar Liquidity Position

    XXII reported a strong liquidity position, with USD$30.9 million in cash, cash equivalents, and short-term investment securities as of the end of the first quarter of 2021. This is a massive improvement on the USD$22.3 million reported as of March 31st, 2020. This difference is primarily attributable to the USD$11.8 million generated from the completion of the cash exercise of warrants during February and March of 2021. The company currently has no further warrants outstanding.

    Future Outlook for XXII

    Armed with a solid liquidity position and stellar financial reports, XXII is poised to capitalize on the increasingly likely changes in tobacco regulation. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.