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Cannabis investors need to prepare for these upcoming changes – New Cannabis Ventures

You’re reading a copy of this week’s edition of New Cannabis Ventures’ weekly newsletter, which we’ve been publishing since October 2015. The newsletter includes unique information to help our readers stay ahead of the game as well as links to the most important events of the week. new.

Friends,

Two weeks ago, we suggested that the global cannabis stock index, then down 43% in 2022, was likely to bottom before the end of the year. It fell further (by 15.4% thereafter) and is now around 52% lower this year. The bullish factors we cited then are still intact, and we are more interested than two weeks ago in these lower prices. Despite this, we are clearly in a bear market for stocks in general, and our optimism is not helping to choose the best time to enter or develop positions in the cannabis sector. The future looks very bright in contrast to the price action lately, and we want to discuss how investors should prepare for the changes ahead.

We expect strong market growth in several states. Illinois is currently increasing the number of its dispensaries by more than 100%. Two weeks ago we mentioned the eastern states in general. Today we want to refine that observation and mention New York and New Jersey, both transitioning to adult use, at the top of the list. Virginia may also be included, and some other states like Maryland, Ohio, and Pennsylvania may also legalize adult use. The big takeaway is that investors need to be prepared for strong revenue growth.

Beyond that, there are other factors that investors need to understand. First, raising capital could become difficult. New operations usually consume money, and not all cannabis companies are in a strong position right now. Investors should be able to avoid capital increases, as they can now significantly lower the price of the issuer’s shares.

A final area investors should consider is market positioning. Some multi-state carriers already have a presence in many states and their ability to expand into new states at this time is questionable in our view. At the same time, some MSOs have a more concentrated presence in the market. We think of the smaller MSOs, such as Ascend Wellness, Jushi and TerrAscend as well as Planet 13 Holdings. Each of them now has new markets coming up, but is also able to expand into new markets. California operators also have opportunities for expansion.

We remain uncertain about the timing of price improvement for cannabis companies, but, as we said two weeks ago: current valuations appear too low. We expect prices to rise as fundamentals stabilize and improve going forward.


Jushi Holdings Inc. is a national, multi-state cannabis company operating premium retail outlets, premium brands, and state-of-the-art cultivation, processing, and manufacturing facilities. The company’s platform is designed to set the new standard for a sophisticated and modern cannabis experience.

In recent news and a big win for medical patients, their families and caregivers across Pennsylvania, Jushi along with other operators in the state can now immediately restock previously recalled products, thanks to the court order. which lifted the suspension of the temporary injunction previously imposed. . Jushi is one of the few large-scale retail vendors in Pennsylvania.

Get up to speed by visiting the Jushi Holdings Investor Dashboard which we maintain on their behalf as a client of New Cannabis Ventures. Click the blue Follow Business button to keep up to date with its progress.


Exclusives

Michigan cannabis sales fell 4% sequentially in May, but rose 25% year-over-year to $186.4 million. While medical sales fell nearly 48% year over year to $23.3 million, sales for adult use soared 56% to $163.2 million.

New Jersey kicked off adult-use cannabis sales on April 21 with strong sales. In the first month, consumers purchased $24.2 million from the 12 dispensaries licensed to sell cannabis for adult use. Eight public companies are approved for adult-use sales in the Garden State. The BDSA predicts that New Jersey’s adult-use sales will drive the state to become one of the fastest growing cannabis markets in the country.

Over the past year and a half, Jushi has expanded its operations from a handful of grow rooms to 10. And, with a change in regulations, the company has brought new genetics to Pennsylvania. In an exclusive interview, Founder, President and CEO Jim Cacioppo discusses the company’s growth and what the future holds for Jushi.

Private, multi-state cannabis operator Holistic Industries, which started 12 years ago focusing on limited license markets on the East Coast, has been successful in securing merit-based licenses. The company has operations in 11 states and Washington, D.C. In an exclusive interview, Founder and CEO Josh Genderson talks about its past expansion and plans for 2022.

PharmaCann is focused on lean operations and converting working capital into cash. In an exclusive interview, CEO Brett Novey explained how PharmaCann expects to be competitive and where the company sees opportunities.

Earnings

Fire & Flower’s first-quarter revenue decreased 4% sequentially to C$40.9 million and decreased 7% to C$44.1 million from a year ago. Newly appointed CEO Stephane Trudel is focused on the next phase of the company’s evolution by developing their Hifyre cannabis consumption technology platform, expanding their Pineapple Express Delivery service and integrating their wholesale and logistics segment. .

High Tide’s second-quarter revenue increased 12% sequentially to C$81 million and 98% from $40.9 million a year ago. Chairman and CEO Raj Grover noted that the company’s continued EBITDA positivity is a critical point “as we are steadily growing at the same time as many of our publicly traded and private peers face challenging fierce challenges and slow down”. The company has 126 stores in Canada and expects to have 150 by the end of calendar year 2022.

Offers

Loyalty and marketing platform springbig and Tuatara Capital Acquisitions Corporation have completed their previously announced merger in which TCCA changed its name to SpringBig Holdings, Inc. and began trading on the global Nasdaq market. The company serves over 1,300 customers with over 2,400 outlets

Tilray Brands declares that it has revised its agreement with HEXO in order to improve the terms of its previously disclosed agreements which provide, among other things, for an additional discount on the purchase price of Tilray Brands, as well as the reduction of the conversion price within the framework of the HEXO note. . The deal is expected to close next month. Irwin D. Simon, President and CEO of Tilray Brands, said this will accelerate the company’s operational turnaround and “is a critical next step in improving our capital structure, and we are confident that the synergies achieved will reset the industry”.


For real-time updates, download our free mobile app for android Where Apple devices, like our Facebook page, or follow Alan on Twitter. Share and learn about industry news with like-minded people on the largest group of cannabis investors and entrepreneurs on LinkedIn.

Use the professionally managed suite of NCV cannabis stock indices to monitor the performance of publicly traded cannabis companies within the day or over longer periods. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index and Ancillary Cannabis Index.

Check out the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue-generating cannabis stocks.

Stay up to date on some of the most important communications from public companies by watching upcoming cannabis investor earnings conference calls.

Check out new listings coming soon with Cannabis Stock IPOs and new issues tracker.

Sincerely,
Alain and Joel
[email protected]

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Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as an online community founder 420 Investor, the cannabis industry’s first and still largest public equity-focused due diligence platform. With his vast network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. To New Cannabis Companies, he is responsible for content development and strategic alliances. Prior to focusing on the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as a freelance research analyst after more than two decades in research and portfolio management. Prolific author, with more than 650 articles published since 2007 on Looking for Alphawhere he has 70,000 subscribers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | E-mail

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