While there are some knuckle-whitening formalities to traverse, the election appears to be over, with Biden and Harris now in place as President- and VP-elect. And with them comes a new dawn for the cannabis marketplace. We are likely to see softening towards the market at the federal level, more states headed toward some degree of legalization in 2 years, and the potential for national decriminalization ahead.
This represents a clear acceleration in the most important trends driving the space.
With that in mind, here’s a selection of some of the most interesting names in the space, including: Tilray Inc (NASDAQ:TLRY), GrowGeneration Corp (OTCMKTS:GRWG), Cannabis Strategic Ventures (OTCMKTS:NUGS), and Green Thumb Industries Inc (OTCMKTS:GTBIF).
Tilray Inc (NASDAQ:TLRY) offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa.
One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.
Tilray Inc (NASDAQ:TLRY) most recently announced financial results for the third quarter ended September 30, 2020, including revenue of $51.4 million (C$68.1 million) was flat compared to the third quarter of 2019. Cannabis segment revenue decreased 11% to $31.4 million (C$41.6 million), due to the discontinuation of bulk sales and a slight decrease in Canada Medical sales. Adult-Use and International Medical sales grew 26% and 42%, respectively. Excluding the year-over-year impact related to bulk sales, total cannabis revenue increased 24%. Hemp segment revenue increased 28% to $20.0 million (C$26.5 million).
“Our third quarter results demonstrate the significant progress we have made throughout the organization despite the unprecedented challenges presented by the COVID-19 pandemic. We realized solid year over year revenue growth in our core businesses and have achieved a significantly more focused, efficient and competitive cost structure, all of which position Tilray for future success. We look forward to building on these accomplishments and remain focused on our goal of achieving break-even or positive Adjusted EBITDA in the fourth quarter,” said Brendan Kennedy, Tilray’s Chief Executive Officer.
If you’re long this stock, then you’re liking how it has responded to the announcement. TLRY shares have been moving higher over the past week overall, pushing about 52% to the upside on above average trading volume.
Tilray Inc (NASDAQ:TLRY) generated sales of $50.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -3.2% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($137.2M against $163.7M, respectively).
GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.
GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
GrowGeneration Corp (OTCMKTS:GRWG) just announced the signing of an asset purchase agreement to acquire The GrowBiz, the nation’s third-largest chain of hydroponic garden centers, with five stores across California and Oregon. The addition of The GrowBiz is expected to generate annual revenues approaching $50M. The acquisition will bring the total number of GrowGen hydroponic garden centers in California to ten and Oregon to two. The new GrowGen locations include Rocklin, Cotati, Santa Cruz and San Luis Obispo, California, and Portland, Oregon.
“We are excited to add The GrowBiz to our portfolio before year end, with its impressive leadership and commercial teams,” said Darren Lampert, GrowGen’s CEO. “We look forward to building on their combined experience and expanding our commercial footprint. The GrowBiz acquisition represents our continued investment in purchasing the ‘best of breed’ hydroponic operations in the U.S. and strengthening our management team with seasoned veterans from our industry.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. GRWG shares have been moving higher over the past week overall, pushing about 16% to the upside on above average trading volume.
GrowGeneration Corp (OTCMKTS:GRWG) generated sales of $43.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 31.7% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).
Cannabis Strategic Ventures (OTCMKTS:NUGS) is the least established name in this list, but it may also be the most interesting for speculative growth investors because of the big curve on display in recent growth data.
The company bills itself as one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops, and partners with category leaders within the cannabis and ancillary sectors. The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
Cannabis Strategic Ventures (OTCMKTS:NUGS) recently announced performance data for the three months ended Sept. 30, 2020, which featured robust growth and broad expansion in positioning within the rapidly growing California cannabis marketplace.
The Company booked over $6.4 million in total sales from cannabis during the three months ended Sept. 30, 2020, which compares with $3.3 million in total sales from cannabis during the three months ended June 30, 2020, a sequential quarterly increase of over 90%, and a year-over-year increase of over 800% compared to the three months ended Sept. 30, 2019.
“We saw a terrific quarter come to an end in September, but we are already turning our attention to expanding and executing in the months and quarters ahead,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “Our $5 million 2020 annual revenue guidance has been left in the dust at this point. We are now seeing total sales accelerate toward a significantly higher mark as we continue to improve product quality, market reach and execution.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. NUGS shares have been moving higher over the past week overall, pushing about 25% to the upside on above average trading volume.
Cannabis Strategic Ventures (OTCMKTS:NUGS) generated sales of $3.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 999.1% on the top line. In addition, the company is sitting on over $450K in cash on the balance sheet.
Green Thumb Industries Inc (OTCMKTS:GTBIF) is a producer and distributor of cannabis products including flower, concentrates for dabbing and vaporizing, edibles, and topicals. The company markets its products through third party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name.
The company is a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve.
As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries.
Green Thumb Industries Inc (OTCMKTS:GTBIF) recently announced it will open Rise Monroeville, its 49th retail location, on October 21. Profits from the first day of sales will be donated to 412 Food Rescue, a non-profit that works with food retailers, wholesalers, restaurants, caterers, universities and other food providers to rescue unsellable but perfectly good food and provide it to nonprofit organizations that serve those experiencing food insecurity.
“We are thrilled to open the 13th Rise™ store in Pennsylvania as we continue to create jobs across the state,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “The team is also honored to support 412 Food Rescue’s important work of collaborating with community businesses and organizations to help eradicate hunger, especially during these difficult times.”
The stock has been acting well over recent days, up something like 7% in that time.
Green Thumb Industries Inc (OTCMKTS:GTBIF) managed to rope in revenues totaling $138M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 271.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($101.8M against $182.5M, respectively).
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