TRSSF - The Daily Hit: May 19 2021
It’s time for your Daily Hit of cannabis financial news for May 19, 2021.
On The Site
TerrAscend
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported financial results for its first quarter ending March 31, 2021 with sales increasing 106% year-over-year to $53.4 million versus last years $25.9 million for the same time period. TerrAscend attributed the increase to cultivation capacity expansions in Pennsylvania, New Jersey, and California as well as five new dispensaries opened during 2020. Sales jumped 8% sequentially as a result of capacity expansion in Pennsylvania and the initial ramp-up of the operations in New Jersey. This slightly missed consensus estimates according to Seeking Alpha which was $54.4 million.
Net losses were cut significantly in the first quarter to $12.7 million from last year’s net loss of $87 million or the same time period. The company said that the net losses were largely impacted by a loss on the fair value of warrants of $5 million and an unrealized foreign exchange loss of $3 million, along with income tax expense of $10 million, financing, and other expenses of $7 million, share-based compensation of $4 million and depreciation and amortization, inclusive of depreciation and amortization in cost of goods sold, of $4 million. The net loss per share increased to ($0.08) from last year’s ($0.07).
In Other News
Golden Leaf
Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) operating as Chalice Brands announced the signing of a definitive agreement and concurrent closing of the purchase of 100% ownership in SMS Ventures, LLC, dba Homegrown Oregon, a chain of five retail dispensaries located in Portland, Salem, and Albany, Oregon, for total consideration of approximately $9.75 million or 0.9 times Homegrown’s first quarter 2021 annualized revenue2. The added fact that Homegrown is profitable makes this a highly accretive acquisition for Golden Leaf earnings per share.
High Tide
High Tide Inc. (TSXV: HITI) (OTCQB: HITIF) has entered into an amended agreement with ATB Capital Markets Inc. (“ATB”) and Echelon Wealth Partners Inc., on behalf of a syndicate of underwriters, to increase the size of the previously announced bought deal public offering. The Underwriters have agreed to purchase, on a bought deal basis, pursuant to the filing of a prospectus supplement to the Company’s short form base shelf prospectus dated April 22, 2021 an aggregate of 2,100,000 units at a price of $9.60 per Unit for aggregate gross proceeds to the Company of $20,160,000
IIPR
Innovative Industrial Properties, Inc. (NYSE: IIPR) announced today that its operating partnership, IIP Operating Partnership, LP priced a private offering of $300 million aggregate principal amount of 5.50% Senior Notes due 2026. The notes mature on May 25, 2026. Interest on the notes is payable semiannually on May 15 and November 15 of each year, with the first payment on November 15, 2021. The offering is expected to close on May 25, 2021
Union
Workers at three local cannabis dispensaries have voted to unionize, the first time that has happened at any cannabis business in the region. Labor union leaders and the owners of the affected dispensaries said the contracts ratified Wednesday will set a precedent for future cannabis union contracts across the region. Local 135 of the United Food and Commercial Workers spent two years trying to organize the workers and get a contract approved. More than 140 workers spread across the three dispensaries approved the new contract at a rate of almost 90 percent. The contract, which guarantees wages of at least $17 an hour, includes profit-sharing and a $30,000 annual contribution from March and Ash to cover workers’ childcare and education. March and Ash employees had already been eligible for health care through the company.