3 Important Things That Happened in the Cannabis Sector this Week

More earnings reports are coming out but as every week passes the industry expands and colors in some of the blanks. One interesting announcement that did not make this list was Horizon’s new ETFs that allow for the ability to either short or double-down on the sector, see the things that did make the cut below.

1. The FLOWR Corporation is approved for Nasdaq listing

FLOWR Corp. FLWPF has been approved for listing on NASDAQ. This is a fast-moving company – the only went public in October 2018 – but they have leadership that has been in the cannabis market for quite a long time.

The company’s CEO, Tom Flow, is somewhat of a legend in the space. He co-founded MedReleaf Corp. that was purchased by Aurora Cannabis ACB in July of 2018 for $2.2 billion. After that purchased finalized, Flow (who has his own merits with a patented “flood and drain” system under his name) brought over his best and brightest to Flowr to focus on premium yields. FLOWR, as we wrote in an article, has posited that the most important KPI for a company is not square footage, but rather yield-per-square-foot. FLOWR has a partnership with Hawthorne Gardening Co., a subsidiary of Scotts-Miracle Gro SMG, that has produced 250 grams per square-foot. By comparison, the industry average is 100 per square-foot.

On May 17th, Flowr announced financials showing an 8% increase in production, a 9% increase in price-per gram and net revenues of $1.6 million for the quarter.

“We have made tremendous progress against our strategic priorities in 2019, and the approval of our listing on the Nasdaq further enhances our capital markets objectives. This listing provides us with broader access to investors around the world and is a natural progression for Flowr,” commented Vinay Tolia, Chief Executive Officer of Flowr. “Later this year we expect to complete construction of our purpose-built indoor cannabis facility, Kelowna 1, which will position us to pursue further expansion at our Kelowna Campus, while at the same time advancing our global plans through our announced partnership with Holigen Holdings Limited.”

2. TerrAscend reports record revenues

TerrAscend TRSSF generated revenue of $14.6 million, up from $5.0 million in the fourth quarter of 2018 – the company did not have any revenue in Q1 2018. The company with backing from Canopy Growth is continuing to make noise and the balance sheet does not reflect its purchase of The Apothecarium. The latter has four retail locations between California and Nevada for both medical and adult-use customers. The deal cost TerrAscend $73.7 million, but, by most standards, was considered a synergistic deal as both companies are health focused and purposeful with brand choices.

“Our first quarter results reflect substantial progress toward our goal of becoming the leading North American Operator in the cannabis sector,” said Matthew Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc. “While achieving strong top-line growth at Arise, we’re focused on operational excellence that will enable us to become the leading global provider of hemp-based products. We’re nearing the closing of our acquisition of The Apothecarium, which we announced on February 11. In New Jersey, our first East Coast Apothecarium and supporting cultivation operations will be up and running by the second half of the year.”

3. Canopy Growth acquires This Works

CGC has put both feet in the skincare market with the natural skincare company, This Works. The all-cash deal estimated around $54.8 million gives Canopy Growth access to a devoted customer base that This Works has established since starting in 2004. The company will now look to sell these loyal customers it wellness CBD products under the steady helm of trusted CEO, Dr. Anna Persaud, who will remain CEO of This Works.

“We believe CBD has the potential to disrupt the cosmetic and sleep solution industries and have been working for years to build and establish the right entry point into this opportunity,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “As soon as we met with Dr. Persaud and her team, we knew they were the right partner to embark with on this journey.”