KERN - Investor Ideas Potcasts Cannabis News and Stocks on the Move; Episode 420
Delta, Kelowna, BC - May 29, 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:
https://www.investorideas.com/Audio/Podcasts/2020/052920-StocksToWatch.mp3
Investor Ideas Potcasts, Cannabis News and Stocks on the Move; Episode 420 (OTC: CSUI) (TSX: WEED) (NYSE: CGC) (OTCQX: MRMD) (Nasdaq: KERN)
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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.
Today's podcast is sponsored by Cannabis Suisse Corp. (OTC: CSUI), a research & development company licensed under Swiss Cannabis and tobacco regulations to cultivate and sell cannabis. The Company's facilities for producing cannabis are based in Zurich.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. Cannabis Suisse products are laboratory tested to ensure the end users have access to a standardized, safe and consistent product.
In today's podcast we will be looking at a few public company announcements.
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced its financial results for the fourth quarter and full twelve-month fiscal year ended March 31, 2020. The Company is also sharing details of its new strategic plan aimed at winning in priority markets and categories and executing a path to profitability.
"Through the COVID-19 pandemic we have worked hard to ensure the health and well-being of our teams and customers and the continuity of our business. During this time, our team has rolled out our exciting new cannabis-infused beverages and vape products in Canada and a portfolio of CBD products in the US," shared CEO David Klein. "True to key priorities that I have outlined for Canopy, we have taken steps to align our capacity with the current market demand and focus our resources against the core markets with the largest and most tangible near-term profit opportunity."
Added Klein, "I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021. We have a renewed strategic focus and a clear change agenda that is already underway. We are building what we believe is the best cannabis company in the world by putting the consumer at the heart of everything we do and are re-aligning our organization to be faster and more agile."
Canopy Growth's overall strategy is to unleash the full potential of cannabis, capture sizable market share in focus categories and markets and execute a path to profitability to build sustainable, long-term shareholder value.
The Company no longer strives to be the first to every market, but strives to the best and become a leading consumer insights and product development company in select priority markets, that matches products and consumer preferences in the cannabis space. To achieve this, Canopy Growth will focus on:
- Becoming a relentlessly consumer-centric organization by building world-class consumer insights and analytics, coupled with focused, leading-edge R&D and innovation to produce a differentiated product portfolio that will delight consumers. The Company will bring these products to the hands of consumers through best-in-class sales execution;
- Markets and product categories with the highest and most tangible profit opportunities in the near term. Core markets will be Canada, US and Germany with focus on recreational and medical. To capture future opportunities in emerging markets and categories outside the core, Canopy Growth will deploy an asset-light approach;
- Driving quality in all aspects of our operation and be positioned to deliver the right product at the right time at the right price from the right facility; and
- Continuing to lead the industry and set industry standards. This includes spearheading the next phase of the cannabis industry evolution and shaping how the industry evolves. The Company will continue to give back to neighbors and communities through its Grow Good Together initiatives.
Canopy Growth expects Fiscal 2021 to be a transition year as the Company resets its strategic focus, rolls out a new organizational design, and implements a comprehensive operational and supply chain productivity program. Given this, as well as the significant COVID-19 related uncertainties that exist, the Company is withdrawing its previously communicated milestones for achieving positive Adjusted EBITDA and Net Income.
Depending on the impacts of COVID-19, Canopy Growth may provide new metrics by which to measure the Company's performance in the second half of fiscal 2021.
Some of the financial highlights included a: Net Revenue of $399 million in FY 2020, up 76% over FY 2019; recorded impairment and restructuring charges of $743 million; the majority of which are non-cash charges; Gross Margin of (85)% in Q4 FY2020; excluding restructuring and other charges, achieved Adjusted Gross Margin of 42%; and a Net Loss of $1.3 billion; Adjusted EBITDA loss of $102 million in Q4 2020.
The stock also dropped nearly 20% today on the release of these financial statements.
MariMed Inc. (OTCQX: MRMD), a leading multi-state cannabis and hemp operator focused on health and wellness, today reported financial and operating results for the three months ended March 31, 2020.
First Quarter 2020 Financial Highlights:
- Company first quarter 2020 revenues of $7.5 million, a 112% increase compared with $3.5 million in 2019
- Gross profit for first quarter 2020 of $4.9 million, a 115 % increase compared with $2.3 million in Q1 2019
- EBITDA of $1.9 million for first quarter 2020
- Company consolidated business units contributing to revenue and ramping more in 2020
- Company managed business units performing and contributing to revenue growth
Bob Fireman, CEO of MariMed, commented, "Our first quarter revenues increase is the start of positive results from our consolidation strategy that has now begun with our business units in Massachusetts and Illinois. Our Massachusetts cultivation and production facility is finally open and selling our popular flowers and branded products into this robust wholesale marketplace as well to our Panacea Wellness Dispensary that opened in Middleborough. Additionally, revenues from our dispensaries in Illinois have increased by a multiple since the state's adult use cannabis program began in January 2020."
"Increased revenue from cannabis businesses we manage in other states also contributed to the growth in our results. Our licensing revenue from our brands should also improve significantly this year as they have been top sellers in Illinois and Maryland and are now gaining market share in Massachusetts, Rhode Island, Nevada and soon to be launched in Puerto Rico. Our core cannabis business is poised for significant revenue growth in 2020. We will continue to implement our consolidation strategy and enhance our image as a fully integrated seed to sale MSO," added Mr. Fireman.
The company's stock has since dropped nearly 10% upon the release of these financial statements.
Business intelligence from Akerna (Nasdaq: KERN), a leading compliance technology provider and developer of the cannabis industry's first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform), shows among first-time cannabis buyers, baby boomers (55+) spend 22% on edibles versus 9% on edibles for consumers in the 18-34-year-old age range.
"The image of Jeff Spicoli as the stereotypical stoner has tainted the image of the cannabis consumer," said Aryeh Primus, vice president of analytics, Akerna. "Our research has shown baby boomers and older adults continue to be the largest and fastest-growing group of new cannabis users. Moreover, this demographic has the most flexible spending options, which means savvy operators could benefit from programs that cater to this demographic."
The higher share of edibles for boomers comes mostly at the expense of concentrates. At one time, the use of tinctures, concentrated herbal extracts, were thought to be popular among the Baby Boomer Generation, due to historical medical uses. Today, the data is clear, boomers don't buy concentrates.
"It's interesting to note, while we've seen strong purchases in edibles among first-time buyers, when it comes to regular buyers, boomers spend 15% on edibles versus 6% for consumers in the 18-34 age group," said Primus. "Over time, edible purchases in both groups decrease as they use more often but remains a much larger share for older people."
**The Numbers, Year-over-Year, April 2020 compared to April 2019:
Total cannabis sales increased 68%, with an average ticket size of $123. Top categories:
- Concentrates increased 22%, accounting for 11% of total product sales
- Cartridges / Pens increased 3%, accounting for 35% of total product sales
- Infused Edibles decreased 18%, accounting for 9% of total product sales
- Flower maintained, accounting for 43% of total product sales
Finally, in a recent article from CNN, it seems that "ritualistic use at a biblical site in Israel can now be added to the list" of interesting cannabis facts.
In 1963, two limestone altars were found at the entrance to the "Holy of Holies" of a Judahite shrine at Beersheba Valley, in Israel's Tel Arad, an archaeological mound located west of the Dead Sea and surrounded by mountain ridges known as the Arad Plain.
The site is divided into a lower city and an upper hill. Inside the site, there is a shrine devoted to Yahweh, the Hebrew name of God used in the Bible.
"Analysis of the materials on two altars, now housed in the Israel Museum, Jerusalem, found they contained cannabis and frankincense, according to a study published Thursday in the journal Tel Aviv."
"We know from all around the Ancient Near East and around the world that many cultures used hallucinogenic materials and ingredients in order to get into some kind of religious ecstasy," said lead author Eran Arie, curator of Iron Age and Persian Periods archaeology in the Israel Museum, Jerusalem.
"We never thought about Judah taking part in these cultic practices. The fact that we found cannabis in an official cult place of Judah says something new about the cult of Judah," Arie said. The study's finding regarding frankincense also provided further insight into the ingredients used in Jerusalem incense, he added.
Several other cultures, such as the Gaddi tribe of the Himalayas, the Buganda kingdom of Africa and the Tenetehara of Brazil, have used cannabis recreationally and for ecstasy in cultic ceremonies, according to previous studies.
Some tribes also used cannabis for medicinal purposes, the study said. A 1993 study on the materials on the remains of a teenage girl who died during labor in an ancient cave in Jerusalem found cannabis was likely used to reduce childbirth pain.
"What stands out most to me is that cannabis was used in concert with frankincense, rather than being mixed with frankincense or other identifiable plant products," said Robert C. Clarke, an independent ethnobotanical researcher who was not part of the study. "This implies that there were special independent connotations assigned to the use of each plant substance."
Once again, today's podcast was sponsored by Cannabis Suisse Corp. (OTC: CSUI), a research & development company licensed under Swiss Cannabis and tobacco regulations to cultivate and sell cannabis. The Company's facilities for producing cannabis are based in Zurich.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. Cannabis Suisse products are laboratory tested to ensure the end users have access to a standardized, safe and consistent product.
Investor ideas reminds all listeners to read our disclaimers and disclosures on the Investorideas.com website and this podcast is not an endorsement to buy products or services or securities. Investors are reminded all investment involves risk and possible loss of investment
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