Welcome to Cannabis Daily - Your daily guide to cannabis news, industry trends and trade ideas in under 5 mins.
Episode Summary:
A recent survey found that 60% of consumers said they would consume cannabis with their grandparents.
Actor Seth Rogen,comedian Sarah Silverman, kickstart cannabis in common campaign.
Public companies discussed in the podcast today:
- Intercure(NASDAQ:INCR)
- Village Farms Intl (NASDAQ:VFF)
- TerrAscend(OTCQX:TRSSF)
- Sundial Growers(NASDAQ:SNDL)
- Hydrofarm Holdings Group(NASDAQ:HYFM)
- Akerna (NASDAQ:KERN)
- NewLake Capital Partners(OTCQX:NLCP)
- Tilray(NASDAQ:TLRY)
Hosted & Produced By:
Elliot Lane
Aaron Thomas
Contact us at: [email protected]
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Unedited Transcript:
Investors welcome to feel good Friday at cannabis daily. This is Elliot lane bringing in New York cannabis news and insights on the market. Uh, every week, day around 10:00 AM, you know, maybe 10 0 5, maybe 9 55. We haven't gotten into an exact science yet, but we are there for you every day. Uh, today's Friday.
We're going to get Aaron Thomas on a little bit later, chat through some fun little items, but my gosh, the amount of news I have for you today, earnings is in full swing. Um, some funny things happening, some awesome things happening, and some companies that'll have some things to prove next quarter. So let's do that.
Right in inner care, I NCR, uh, known as can dock around Israel. Um, really great, uh, management team behind them, great investors behind them. They moved on the announcement that they were having earnings. I just found this hilarious, uh, Inc. Uh, I think there are a lot of firm believers in this company, including myself.
I think insecure is going to be a powerhouse internationally. Uh, but I, I don't see why they made the jump to be quite honest. So, um, keep an eye on them and I look forward to their earnings, maybe something coming out. Yeah. I had a couple articles that came out recently. I want to, I want to bring attention to investor place, publishes articles saying sundial that's S and D L could be a goodbye for reversal.
We'll touch more on them later. Obviously mainly citing the years happenings plus the market opportunities. So nothing really. Super insightful in the article in terms of specifics or details that most cannabis enthusiasts don't already know. Um, but overall, I, I share a similar sentiment. Stock place says drops on dial and by village farms, uh, Corona, organic gram, and Greenlane while I agree with half of that sentiment.
Um, I think diversification is great. I think sundial has its own benefits. Again, we'll touch on them. Shortly village farms is an incredible company. A Corona is one of the leading software compliance providers in the industry. If not the leading one organic gram for me is interesting because of the tobacco entrance there, uh, in Greenland, obviously being one of the major anciliary companies and, um, and accessory brands, uh, out there.
Hexo, this is a little bit of old news, but I did want to touch on it. That's hex. So on the NASDAQ closes three recently acquired facilities laying off 155 workers, and they claim this as a part of an integration plan. You know, it may be, and I think remains to be seen, but I, I, I want to be fully behind tech.
So. Um, and it's just not positive news coming out of there right now. And I hope they can continue to release some positive reasons that sustainability, uh, was great about little less than a month ago or about a month ago. Um, but I like to see more news like that coming out. H C Wainwright cuts price target for current that's NASDAQ listed K E R N from $7 to $5.
Um, I do not read into this very heavily. I think a Corona is one of those. Leading service providers in this industry. They're obviously not thriving. Uh, like the, I would say the hydroponics companies are right now. And I think for obvious reasons there, I don't think their services are quite as expensive.
Um, but at the same time, I think a current grows as this industry grows because there is no major competition to them as. Current moment, in my opinion, terrorists and TRS SF shareholders overwhelmingly approved gauge acquisition and the amendment. Uh, so that should continue to move forward relatively rapidly.
Uh, after this. Now we dive into the first bit of sundial news, that's S and D L and the NASDAQ again, announces share repurchase program of up to a hundred million Canadian. So that is huge. Um, a lot of discussion and it really the biggest negative about them this year was the stock dilution. Um, I think this is the step to counter that counter.
Um, the claims that their shares are not worth as much as they should be. I think this is a step toward rectifying that for them, or at least to make it appear. So, uh, all right. Y'all earnings, earnings, earnings, earnings. We are keeping rolling on that train. Plenty more to get to today. Hydro farm is where we're starting.
H Y F M revenue declined 7% year over year to $128 million. Um, I believe that is still the leading. Um, public, at least the leading public company in terms of revenue, quarterly revenue for a hydroponics company that I can think of that being said, you know, you obviously want to see positive trends if you're invested in them.
Um, but to call out both sides, hydro farm, obviously doing well, but not trending in the right direction as is . Urban grow, but similar to grow generation. So an interesting correlation there, Columbia care, CCH WF record, quarterly revenue of 132.3 million up 144% year over year and 22% quarter over quarter, California is still being the company's, uh, highest revenue by state with Colorado.
Uh, they've really focused on expanding there over the last few quarters, uh, and they've done a great job at really controlling that market, in my opinion. Jumping to glass house group. That's G L a S F on the OTC net revenue up 29% year over year to 17.2 million. But unfortunately down 8% quarter over quarter, they are still the number one brain ranked brand in sales in California.
So that is something I have a lot of faith in glass house. I think Kyle and Graham are doing great things over there. No, I, I think, um, there's a lot to prove still, you know, I think there's a lot of companies that could still enter California and just take over that market. Um, and I think as corporate and culture mix, I think glass house is really well positioned to tackle both sides.
I love their sustainability, uh, activations. I love a lot about. Um, but you know, we obviously want to see that sequential revenue, uh, increase right now and not decrease as the market emerges maps. That is Weedmaps or WM holdings on the NASDAQ, M a P S revenue of 50.9 million us revenue up 46% year over year and overall revenue up 9% year over year, Q4 revenue supposed to be between 50 and 52 million.
So not anticipating the large growth, uh, by the end of the fiscal. Uh, CIN wellness holdings, that's AWL H revenue up 13.2% quarter over quarter to 94.4 million. Interesting factoid nine months 2021 revenue is up a hundred million over the same nine months in 2020. So, you know, as sin, wellness is one that has just blasted in the tier one territory.
In my opinion, I love, uh, what Abner and team is doing over there. They're backed by Poseidon and the, and Emily. Emily Paxio, uh, and several others. And I just, I love ascend wellness, uh, pretty much all the way around. Uh, we will dive into the REIT section really quick, new lake capital partners. That's in LCP revenue up 22% quarter over quarter and up 135% year over year to 8.1 million.
Of course, they closed their IPO with proceeds of 102 million in August. I think new lake is poised to be one of them. Three to four leaders in the real estate investment trust landscape in cannabis, and a lot of faith in them. And if you're looking for an interesting ciliary play, uh, I, I, I would definitely keep an LCP on your watch list.
All right, I'll wrapping it up with sundial on my end, S N D L income of 11.3 million Canadian, as opposed to last year at the same time was a loss of 71.4 million, a massive turnaround for the. They are still, um, working off the success of their meme, stock status and the Reddit user craze, a S and D L I believe is still the number one cannabis stock, of course, on the Reddit boards.
Um, and S and D L is, um, they're working hard to make it worthwhile. They obviously, they diluted a lot. They, they raised a lot off that, uh, that volume that. Um, they, they created a massive investment vehicle with sun, sun stream bank Corp, and they invested in Endiva. They, they purchased a leading retail brand in, in Canada.
They've um, they they've invested in acquired multiple companies, uh, across the, the last few quarters. And I just have massive respect for what Zach has done this year and, and turned that company around. Um, so that is the reason S and D L right now is up some 25, 30%. Uh, in the pre-market session. Uh, so if you are invested in SMD L you should be having a great.
Uh, again, cannabis stocks are volatile. Uh, just look at MSO S uh, they are overall having a good last seven day swing. Um, but their volume of course, massively decreased from that huge spike we saw on Friday from the Republican bill. That being said, y'all, I'm going to call it quits for my thing. My Lord Elliot stop being so long winded and get to Aaron.
Thomas. What? Everybody's here for? Aaron? Are you there? My friend, I am here. What's going on? Elliot. How are you? I'm good, man. I need some water after that earnings get me. Yeah. I mean, it's a longer earning seasons. There's a lot to talk about. So it's completely understandable. Yeah. You know, Erin, do you have any, like, you've listened to me give like earnings reports, big earnings reports, the last three days straight, anything pop out to you?
Um,
you know, for me, it's, it's got to be the tier ones continue to just. Move forward and leave everybody else in the dust. Uh, and I think it's, it was less, less of that earlier this year. Um, you know, I would say, and this is in the operator space. I think the opposite is happening in the ancillary space. Um, but you know, that's kind of where I'm at so far.
I don't think we've had a lot of the tier two Domestos, uh, report yet, and I'll be interested to see that and maybe they will, uh, change the narrative of this season a little bit, but to me, tier one and tier three, there's more separation now than there was a week and a half. Hmm. That's interesting. Why do you think that is?
Um, I think that is because market share is going to dear ones. I think tier ones have more resources. They they're, um, massive inorganic expansion, uh, opportunities right now for them. Um, you know, and I think some tier former tier ones, like a goodness growth. You know, I, I think their earnings next quarter are that much more important because of this quarter, a little bit gray area, uh, in, in their reportings, but companies like curely and green thumb industries, it was like, here's my earnings.
We're frigging great. Like they, they there's just no hesitancy. I think glass house group has the, the ability to become a major player in this. Um, you know, obviously you want to see that sequential increase, but I think they're poised for success. Um, but because their sequential decrease this quarter, it makes Q4 that much more important for them.
Interesting. We'll have to keep our eyes peeled and our, you know, keep up on benzinga.com/cannabis for all the news. And, uh, up to date. If I had a soundboard, I would've done the air horn right there. Anyways, do Eric give us some news, man, what's going on? Let's get into it. Let's get into this Friday fund.
Uh, let's start it off with some light fun news. A study, 60% of cannabis consumers would get high with their grandparents. A recent survey found that 60% of consumers said they would consume cannabis with their grandparent. That recent survey conducted by cannabis edibles brand a Zucca 60% of respondents.
Uh, The same thing. So I said they would consume cannabis with a grandparent, according to the company, press release. If you don't know, Zucca not to interrupt you and keep your thought, but as Zucca is really cool, like science-based animals brand, I would imagine, um, you know, I think it's Kim over there who leads that, and I really like their brand.
And I imagine they're probably poised for an exit at some point after they grow a little bit. Um, but I really think. Uh, if anybody was going to put that who's not wanna, or in diva or bang, uh, Zucca is a pretty cool operator to put that on. And what an interesting question. I wonder if it's because they all smoke with their grandparents over there, they get that wisdom from them, you know?
My grandparents would look at me with a not so pleased. Look out. No, my grandparents would not be pleased as well, so we'll keep it. We'll keep it moving. The Americans and cannabis consumption survey was conducted online and it had 1,089 participants. The results were weighted. Reflect gender and age distribution across the 18 to 16 year old demographic, over half of the respondents were cannabis, cannabis, consumers.
Um, so basically it goes on, um, and it lists a bunch of statistics that they found from the, uh, from the survey itself. But the overall sentiment sentiment is that the survey reveals. That there is still a need to educate Americans about cannabis while consumer demand is growing exponentially. Now is the time to bring sophisticated and approachable products to market that people can trust.
That is a quote from Kim Sanchez rail, uh, via press release. So she's, uh, she's doing well. She's smart. Yeah. Yes. Uh, yeah, Kim. Absolutely. So, I mean, I don't really have much more to add to this, but I will say. What an interesting fact, man, I don't know who thinks about these questions, but like props or that person gives them today off.
Exactly. That was a great question. And uh, brought a little fun in my Friday for sure. So moving right along, I know you touched on it earlier this week, but actor, Seth Rogen, uh, comedians, Sarah Silverman, kickstart cannabis in common campaign. I know you touched on the federal side of it, but, um, They came together to help kickstart cannabis in common, a public education campaign aimed at getting cannabis consumers, the broader public air and the broader public to contact their legislators about passing, meaningful, meaningful cannabis reform at the federal level.
Nice. Yeah. I mean, it's really great for them to get involved. I think, um, this is, this is the type of industry where having a platinum. Could help. I mean, not, I'm not at all going to get political, but obviously you're always going to have discourse if you choose a side politically, but the vast majority of American people don't understand why this is illegal.
So, you know, for them to get on board with this and, and push just common sense legislation through and utilize their platform to do so, puts pressure on politicians. Um, you know, so. You know, and more and more people get on board. Obviously, Seth Rogan been in the cannabis industry for a long time, Sarah Silverman, uh, for a time as well.
Um, you know, and Willie Nelson and, and Jim Belushi and all these other celebrities that are in, um, you know, they're being as loud as they can, but there are others out there who could jump in, you know, and they don't have to be major smokers. To understand that this new industry would provide a lot back to this country.
Right? I mean, there's always going to be like the Willie Nelson's and then the Seth Rogan's, there's always going to be a face and a voice of the general cannabis consumer. And I think it's, it's great for people with their stature to, you know, really push for these kinds of initiatives and, you know, Nudge Congress, uh, along because without them, you know, irregular people, excuse me, us regular people would definitely, our voices would get passed along for sure.
Uh, generally, so definitely having a more prominent voice as the, uh, As the voice of the people in a sense, right? Yeah. Yeah. Thank you. Leo DiCaprio with his environmental work. I mean, he brings a huge spotlight to it and has become very well-known for it. So, um, I, you know, ideally, you know, if you have a platform you're using it for good would be the through line there and maybe an obvious one, but I don't think everybody, uh, everybody that has a platform.
Maybe, maybe things like that. I don't know. I don't know. I don't have a platform yet, but that's what we're working on with cannabis daily in order to push cannabis through right. Cannabis daily is going to be the deciding factor for federal legalization. Absolutely. That was an absolute joke. Um, anyways, you got one more, man.
Right? I got one more, some good news for Malaysia. Some international news let's end it off here. Uh, so you can get the full story here on benzinga.com/cannabis. I'm me give you a little teaser, Elliot, you know, so medical cannabis in Malaysia, importation and consumption. Is now allowed, uh, Malaysian health minister, Kyrie Gemo Loudin, uh, reported that ju Southeast Asian country will allow the importation and use of cannabis.
For medical medicinal purposes. A prescription will be required to purchase medical marijuana. Prescriptions may only be issued by a registered physician or. Uh, as Bloomberg reported as well. So a good news for Malaysia. It's, it's great to see, uh, you know, cannabis coming in a more regulated sense, uh, to those countries, um, east island countries.
Yeah, yeah. Southeast, right? Yep. That's awesome, man. I mean, this is huge. Asia is long considered just such a massive opportunity for this industry, but very few companies are taking. Um, the, the step toward it, I will say maybe like NPX out of Canada, maybe audacious brands out of the U S or two that I can think of publicly off the top of my head.
But, um, Asia is, is that going to be a tough market overall, but any inches that are moved there? Um, so keep an eye on these international companies as well. You know, I know Tilray is focused on Europe. Um, inner cure is probably focused more on Canada, Israel, and probably some European activations as well.
Obviously if you're a Latin American companies, but, um, Uh, Southeast Asia could bring a whole new aspect of this ball game. So, uh, that's very cool, man. Awesome. Aaron preciate you man. Always good to get you on. Sounds like you're fighting a little cold or allergies or something. So just a little bit, just a little bit, but we'll where are we going to bounce back?
Come back, even stronger. My man, my man. Get that. C double dose today. All right, y'all appreciate you paying it. Beta dungeon for 20 minutes. I think this might take the cake for our longest episode yet, but I blame earnings. It is not our fault. It is the fact that you all decide to have all these people report earnings at the same time.
Um, no, but really this is a blast. Please review as rate us on any podcasting network. Um, you can give us one star or five. Obviously we prefer five. Um, but you know, in anything. Making us known as, uh, one of the ways to start your morning for cannabis news. Thanks all we look forward to doing this again Monday.
Have a great weekend. Thanks everyone.
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