Financials Cannabis News

BZAM seeks another extension in CCAA proceedings

Written by Sarah Clark on March 25, 2025. Posted in Financials.

The monitor for BZAM will make a motion before the Ontario Superior Court of Justice on Thursday, March 27, seeking an extension of the current stay period under the CCAA to May 15, 2025.

The Stay Period has been extended six times during the pendency of BZAM’s CCAA proceedings, with the most recent extending to and including March 31, 2025. BZAM first received protection under the CCAA on February 28, 2024.

BZAM, through its court-appointed monitor, says the extension of the stay of proceedings to May 15, 2025 will preserve the status quo for the company and ”provide the breathing room required for the applicants to seek approval of the Stalking Horse Transaction, attempt to resolve outstanding matters with the Department of Justice, the Canada Revenue Agency and Health Canada, and continue preparations to exit these CCAA Proceedings.”

In October, an Ontario Superior Court Justice approved the Share Purchase Agreement dated August 23, 2024, among BZAM Holdings Inc. as vendor, BZAM Management Inc. as target, 1000912353 Ontario Inc. as Purchaser, and Wyld Canada Inc. as an interested third-party.

On January 13, 2025, BZAM then received an approval and vesting order (along with certain other ancillary relief), approving, among other things, the Edmonton Property Transaction, whereby BZAM Cannabis Corp. sold to 2627411 Alberta Ltd, among other things, the lands and premises municipally described as 8770 24th Street, Sherwood Park, Alberta.

The company’s monitor says that there are several outstanding items that BZAM needs to resolve prior to completing its CCAA Proceedings, including:

The delay in seeking the Stalking Horse Transaction and completing these CCAA Proceedings is attributable to a variety of factors, including the Applicants’ litigation with Final Bell Holdings International Ltd., which was settled on December 13, 2024, and outstanding matters with the Canada Revenue Agency and Health Canada.

The Applicants need to resolve several outstanding items before completing these CCAA Proceedings, including certain outstanding tax matters with the Department of Justice (DOJ) and the Canada Revenue Agency (CRA).

The monitor notes that the applicants, the monitor, the CRA, and the DOJ have engaged in discussions in an attempt to reach a consensual resolution of these matters. BZAM also agreed to not seek approval of the Stalking Horse Transaction while these discussions remain ongoing.

The applicant also must, among other issues, resolve outstanding discussions with the DOJ and Health Canada regarding specific licensing fees under the Cannabis Act.

As of February 15, 2024, TGOD (a company that BZAM previously merged with), BZAM Management, and BZAM Labs collectively had approximately $9,083,289.33 in excise tax arrears.

On February 2, 2024, the CRA agreed to a temporary payment plan with BZAM Management pursuant to which it agreed to pay $164,474 per month in excise taxes. On October 18, 2023, the CRA agreed to a payment plan with TGOD pursuant to which it agreed to pay $330,000 per month in excise taxes.

As of February 15, 2024: TGOD had approximately $1,056.11 outstanding in respect of payroll deductions; BZAM Management had approximately $1,363,291.60 outstanding in respect of GST; BZAM Cannabis had approximately $923,851.04 outstanding in respect of GST; and BZAM Labs had approximately $356,302 outstanding in respect of HST.

The Applicants will make a motion before the Honourable Justice Osborne of the Ontario Superior Court of Justice (Commercial List) (the “Court”) on Thursday, March 27, 2025, at 10:00 a.m. (EST) or as soon after that time as the motion can be heard.

Herbal Dispatch completes $600,000 debt financing

Written by Sarah Clark on March 25, 2025. Posted in Financials.

Herbal Dispatch Inc., a Canadian cannabis company serving the medical and non-medical markets in Canada and abroad, says it has completed a debt financing for gross proceeds of $600,000.

The financing, which carries a two-year term, incurs interest at a rate of 18% per annum, and is repayable in equal monthly installments of $29,955, will go towards supporting the company’s growth initiatives.

In conjunction with the loan agreement, the lenders were also issued 3 million warrants, each entitling the holder to acquire one common share of the company at an exercise price of $0.0650 per share. The warrants will expire on March 19, 2029. Additionally, a closing fee of $12,000 was incurred in connection with the transaction.

The proceeds from the debt financing will be allocated to working capital to support Herbal Dispatch’s growth initiatives, including expanding export sales to existing and new international markets. This funding will also help the company prepare for its initial export to the German cannabis market, which is expected in the coming months.

Philip Campbell, Herbal Dispatch’s president and CEO, represents one of the lenders, and via a wholly owned company, provided $100,000 of the debt financing gross proceeds and will receive 500,100 of the warrants issued in conjunction with the debt financing.

The warrants to be issued will be subject to the policies and review of the Canadian Securities Exchange, and the warrants to be issued to Philip Campbell may be further subject to minority shareholder approval pursuant to MI 61-101 “Protection of Minority Security Holders in Special Transactions” of the British Columbia Securities Commission due his status as a “related party” to the company.

The warrants issued pursuant to the debt financing will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

As of 2024, Herbal Dispatch had products in 1,740 stores in Ontario, 486 in BC, 187 in Manitoba, and more than 3,800 across Canada. Herbal Dispatch sells under the brands HD Craft, Happy Hour, Golden Spruce, Nature’s Nu, and Hero Dispatch.

The company reported $3.3 million in gross revenue and $2.7 million in net revenue for the three months ended September 30, 2024 (Q3 2024), for a net loss of $388,156.

Gross sales for the cannabis e-commerce platform and non-medical cannabis provider were up 120% from the same quarter in the previous year ($1.5 million). Net revenue grew to $2.7 million in the third quarter of 2024 from $1.2 million in Q3 2023 (up 132%), and to $7.6 million year-to-date in 2024 from $2.6 million last year (up 191%).

However, gross sales and net revenue were both down from the previous quarter (Q2 2024), as was net income, which was $59,000 in the previous three-month period, the company’s only net gain in the past eight quarters.

The company says its year-over-year growth in recreational cannabis sales was driven by several factors, including the expansion of its listings in new retail locations across British Columbia, the expansion of sales to include the Liquor Distribution Branch of the Government of British Columbia commencing in Q3 last year, and the introduction of new products and brands, including the “Happy Hour” brand launched earlier this year.

The BC-based cannabis company also saw growth in export sales, propelled by strong demand and growing customer relationships with customers in Australia and Portugal.

“We are encouraged by our strong revenue growth and achieving positive adjusted EBITDA,” said Philip Campbell at the time. “As we look toward 2025, we are focused on developing new profitable sales channels and efficiently scaling our operations. Our goals include expanding domestic sales across Canada and growing our export sales in both established markets, such as Australia and Portugal, and new international markets.”

CRA seeks to hold Freedom Cannabis directors liable under the Excise Act

Written by Sarah Clark on March 25, 2025. Posted in Financials.

In an application scheduled for April 29, 2025, an Alberta Court will hear arguments on whether the directors of Freedom Cannabis will be held liable pursuant to section 5.1 of the CCAA.

In a Minister’s Brief on March 20, 2025, a representative with the Department of Justice of Canada was directed to preserve their ability to pursue directors’ liability assessments against the directors of Freedom Cannabis Inc. for a portion of the approximately $10 million Freedom owes the Minister under the Excise Act, 2001.

A director cannot be held liable for such assessments unless the Minister has first attempted to recover the claim against the debtor company. A court recently criticized and rejected an attempt by the Canada Revenue Agency to oppose the release of the directors of Delta 9 from similar liabilities due to the request being too late.

This ruling led to the federal government voicing its opposition to the sales process and a request from Freedom Cannabis in February 2025 that would release the company’s directors from liability.

The application to address those concerns is currently scheduled for April 29, 2025, when the Court will hear arguments on this issue. The government expects that if the court does not release the directors from their liabilities, it will transfer Freedom’s liability under the Excise Act, 2001, to a corporate scapegoat named GarbageCo, and the government (Minister) will be prevented from certifying the liability of Freedom for its debts.

The March 20 application, filed by the Attorney General of Canada, notes that it is unclear if the Minister could assess GarbageCo. for the Excise Act, 2001 debt, then certify that debt against GarbageCo.

In part, the document states: “Although GarbageCo will not have any assets (and a writ would be returned wholly unsatisfied), GarbageCo has no directors, and none of the directors of Freedom were, are, or will be directors of GarbageCo.”

The Crown says it expects that Freedom’s CCAA process will “most likely” conclude in April 2025 with a reverse vesting order (RVO), “with Freedom emerging from the process with a judicially cleansed balance sheet and the transfer of the Minister’s claims and other creditors’ claims to a corporate scapegoat (“GarbageCo”).”

Although the steps laid out by the Minister will not determine the liability of the directors of Freedom, the Minister argues that the relief is necessary to protect the government’s rights under the statute.

On June 20, 2024, the CRA first issued a certificate pursuant to subsection 288 of the Excise Act, 2001 against Freedom Cannabis Inc. in respect of its liability to the Minister under that statute for the period between July 31, 2022 and June 30, 2023. The certificate was issued in the amount of $4,764,620.64 as the sum payable as of June 1, 2024.

On February 26, 2025, the Court of King’s Bench of Alberta granted an order approving, among other things, the SISP and a stalking horse share subscription agreement between Freedom Cannabis and 2644323 Alberta Ltd. (the Stalking Horse bidder).

Interested parties wishing to bid in the SISP must submit an offer to the Monitor by 3.00 pm (MST) on Wednesday, April 9, 2025.

The fifth report of Freedom’s monitor in the CCAA proceedings for Freedom Cannabis, posted on February 20, outlined the details of the stalking horse bid from a company connected to their largest creditor, JL Legacy Ltd. This bid was for a price estimated to be in the range of approximately $16.5 million to $20.5 million, with a closing date of June 30, 2025.

In October, Freedom said it needed more time to finalize the terms of its SISP and Stalking Horse Agreement to resolve issues with its landlord, including an outstanding debt.

In an affidavit from February 24, a Canada Revenue Agency (CRA) representative stated that the agency maintains four accounts for Freedom Cannabis Inc., tracking the company’s liability to the Minister of National Revenue on different tax statutes.

With respect to Freedom’s cannabis duty account with the CRA, which tracks liability for duty pursuant to the Excise Act, 2001, as of February 21, 2025, the balance outstanding is $9,693,946.85. This includes more than half a million dollars in interest assessed. This liability accrued between August 2022 and August 2024.

Auxly sets new record for revenue, income in Q4 2024

Written by Sarah Clark on March 20, 2025. Posted in Financials.

Auxly Cannabis reported net revenue of $34.6 million in the three months ended December 31, 2024 (Q4 2024), a 29% increase over the prior year period, and net income of $4.4 million, a 108% increase from Q4 2023.

For the year ended December 31, 2024, Auxly’s net revenues were $122.3 million, a 21% increase from the previous year, which the company says was primarily due to an increase in both volumes and price of dried flower, vape, and pre-roll products.

Net revenue and net income again set new records for Auxly in Q4 2024, passing a previous high in Q3 2024.

Despite these gains, the company still reported a net loss of $16.3 million for the year ended December 31, 2024. However, this was an improvement over the $28.2 million loss over the same period in 2023.

“The Auxly team delivered an outstanding year, driven by our unwavering commitment to innovation, gross margin expansion, and operational excellence,” said Hugo Alves, Founder and Chief Executive Officer of Auxly.

“With demand for THC in Canada and around the world at an all-time high, Auxly is uniquely positioned to capitalize on this opportunity through our large-scale, low-cost cultivation advantage and innovation leadership in the largest, fastest-growing product categories. We are just getting started and excited about the road ahead and will remain focused on driving sustainable, profitable growth and creating meaningful value for all of our stakeholders.”

The company incurred $63.3 million in cannabis excise tax from $185.7 million in sales. Auxly sells under the brands Parcel, Back Forty, Foray, Doescann, and Kolab Project, and provides wholesale bulk sales of dried cannabis to various licensed producers in Canada. The company ranked as the fourth largest licensed producer in Canada by total recreational retail sales in the fourth quarter of 2024, according to data platform Hifyre IQ.

Auxly operates Auxly Charlottetown in PEI, where the company does most of its cannabis 2.0 product development, and Auxly Leamington, where it grows and processes dried flower. In May 2024, the company sold its Auxly Ottawa facility for $1.7 million and applied the proceeds from the sale to support its ongoing operations. The Company does not currently have any active international operations.

The company spent around $2.2 million on pre-roll automation initiatives in 2024. In Q4 2024, dried flower and pre-roll products were approximately 63% of net revenues, while Auxly’s cannabis 2.0 products and oil sales contributed the remaining 37% of net revenues.

SNDL reports record revenue, declining losses driven by cannabis sales

Written by Sarah Clark on March 18, 2025. Posted in Financials.

SNDL Inc.’s net revenue for the fourth quarter of 2024 was $257.7 million, while gross profits were $68.8 million, with an operating loss of $76.1 million.

The company’s Q4 2024 net revenue was up about 4% year-over-year, a new record for SNDL, driven by more than 16.5% growth in its various Canadian businesses. Growth profits were up 20% year-over-year, compared with Q4 2023, while the company’s losses declined by 11%.

For all of 2024, net revenue was $920.4 million, a little more than 1% higher than the previous year’s $909 million, a 26.2% increase from 2023. Gross profit for 2024 was $240.3 million, a 26.2% annual increase, with a net loss of $96.2 million, and a comprehensive loss of $62.9 million, a 45.5% and 66.7% decrease in losses, respectively.

The majority of SNDL’s annual net revenue came from its alcohol sales ($555.3 million), while retail cannabis accounted for another $311.7 million and its cannabis operations accounted for $109.5 million.

Gross profit from these three sectors was $139.7 million, $78.8 million, and $21.8 million, respectively. Earnings or loss before income tax for those three sectors was $30.7 million, a $5.3 million loss, and $2.1 million, respectively.

SNDL’s retail cannabis brands are the Value Buds, Superette, and Spiritleaf banners.

SNDL’s cannabis operations include a cultivation facility in Atholville, New Brunswick, and processing and manufacturing operations in British Columbia and Ontario. In 2022, in partnership with IM Cannabis Corp., SNDL began exporting dried cannabis flower to Israel.

The company’s owned and licensed cannabis brand portfolio includes Top Leaf, Contraband, Palmetto, Bon Jak, La Logue, Versus, Grasslands, Pearls by Grön, No Future and Bhang Chocolate.

“We are pleased with the continued progress reflected in our fourth-quarter and full-year 2024 results, as we set new records and exceeded our commitment to achieving break-even free cash flow for the year,” said Zach George, CEO of SNDL. “We have accomplished this while continuing to transform our business by investing in growth opportunities and strengthening our organizational capabilities. The SNDL team remains dedicated to raising the bar in 2025 and beyond.”

In 2024, SNDL announced a restructuring project aimed at reducing corporate overheads and improving the efficiency of its organizational structure. The Restructuring Project is expected to deliver over $20 million in annualized cost savings, which is said to be driven mainly by the optimization of corporate overhead spending, including the reduction of 106 full-time employees. The project will require a one-time investment of $11 million over the next 18 months.

As part of these operational adjustments, SNDL consolidated its cannabis segments into a single unit under the leadership of Tyler Robson.

SNDL also became Delta 9’s senior secured creditor in 2024 after completing the acquisition of the principal indebtedness of Delta-9 Cannabis Inc. from Connect First and Servus CreditUnion Ltd. for a purchase price of $28.1 million pursuant to a purchase and sale of indebtedness agreement dated July 5, 2024.

SNDL also completed its acquisition of Nova Cannabis in 2024 and successfully closed the Indiva Transaction for consideration of approximately $21.1 million.

In March 2025, SNDL also acquired just over 5% of High Tide, which operates the large Canna Cabana cannabis retail chain.

As of March 17, 2025, SNDL operates 185 retail cannabis locations: Value Buds (117), Spiritleaf (67, of which 8 are corporate stores and 59 are franchise stores), and Superette (1). Several Suprette stores recently converted to Value Buds.

High Tide reports increased revenue from brick-and-mortar sales

Written by Sarah Clark on March 17, 2025. Posted in Financials.

High Tide Inc. reported $142.5 million in revenue for the three months ended January 31, 2025 (Q1 2025), with $35.4 million in gross profit and a $2.7 million net loss.

Revenue was up 11% from the same period in the previous year, while the cost of sales increased 16%. Gross profit remained relatively stable (-2%) while losses were up year-over-year from just a $5,000 loss in Q1 2024.

While net losses were up year-over-year, High Tide’s decreased from a $4.8 million loss in the previous quarter of Q4 2025.

“I am pleased to report yet another quarter featuring record revenue,” said Raj Grover, Founder and CEO of High Tide. “This continued momentum is supported by our core Canadian brick-and-mortar business which is generating double digit growth, and continues to get stronger every day. This is demonstrated by the fact that Q1 same store sales experienced their fastest pace of growth in four quarters. At the same time, Canadian Cabana Club membership has exceeded 1.76 million, with ELITE memberships also growing at their fastest rate since the club’s inception.”

Sales of cannabis and CBD products represented $123.6 million of High Tide’s revenue, a 14% year-over-year increase compared to Q1 2024. Consumption accessories were another $7.5 million in revenue, down 35% from Q1 2024, while the company’s data analytics, advertising and other revenue was $11.3 million, a 49% year-over-year increase.

Organic growth of same-store sales contributed to a nearly $7.8 million increase in revenue. In contrast, new stores accounted for nearly $8.6 million, accompanied by an increase in data analytics, advertising and other revenue for $3.7 million. This was offset by an almost $5.7 million reduction in revenue related to High Tide’s e-commerce.

E-commerce was 5% of High Tide’s business in Q1 2025, compared to 10% in Q1 2024. The company’s losses were driven by online sales. Income from the company’s brick-and-mortar stores was $2.3 million, while online sales were a $2.2 million loss.

The brick-and-mortar revenue growth was primarily due to continued same-store sales growth and new store build-outs. High Tide grew from 163 stores as of January 31, 2024, to 191 as of January 31, 2025. As of January 31, 2025, 191 stores were operational, and same store sales increased by 5% compared to the same period ended January 31, 2024.

Most of High Tide’s stores are under the Canna Cabana moniker (189) while two are branded cannabis stores under the Meta Cannabis Supply Co brand. High Tide also has Canadian warehouse operations, which primarily service its retail locations. In addition, the company operates a warehouse which primarily services the e-commerce consumption accessories operations. High Tide says it plans to add another 20-30 retail locations during the 2025 calendar year.

The company also operates its e-commerce platforms including Smoke Cartel, Grasscity, Daily High Club, DankStop, NuLeaf Naturals and FABCBD in the United States, and USA sales on the international e-commerce platforms. High Tide also operates its e-commerce platform Blessed CBD, as well as international sales on its e-commerce platforms.

High Tide saw $11.2 million in revenue from its proprietary data analytics service, which it calls the ‘Cabanalytics Business Data and Insights Platform’, among other revenues. The Cabanalytics Business Data and Insights Platform “provides subscribers with a monthly report of anonymized consumer purchase data in order to assist them with forecasting and planning their future product decisions and implementing appropriate marketing initiatives.”

In January 2025, High Tide tentatively announced its intention to enter the German medical cannabis market by acquiring a 51% interest in Purecan GmbH for approximately €4.8 Million.

However, during ongoing due diligence, the company reassessed the optimal structure for this transaction in February. It says it is now exploring alternative arrangements to allow High Tide to keep its planned commercial exposure in the German market.

A notice of High Tide Inc. issuing the 4,350,000 shares to SNDL Inc. was posted on March 10, 2025. This is 5.4% of class, based on 80,896,105 common shares reported by the Issuer to be outstanding as of January 29, 2025.

TRYGG Collective acquires Tricanna Industries through RVO

Written by David Brown on March 17, 2025. Posted in British Columbia, Business, Cannabis News, Financials, Producers.

BC-based TRYGG Collective has acquired cannabis processor Tricanna Industries through a court-approved RVO process, says TRYGG CEO and Founder Fabrizio Rossi.

Tricanna, also based in British Columbia, initially filed a Notice of Intention (NOI) on February 5, listing $3.2 million in liabilities. The company listed $2.9 million in unsecured debt and $1.7 million in secured debt, for a total of more than $4.6 million.

On February 2, 2025, Tricanna entered into a subscription agreement with Rossi, reflecting a renegotiated offer that was said, at the time, to be intended to close by way of an RVO.

“This move brings our vision full circle: an amazing house of brands, cutting-edge pre-roll technology, and a fully licensed processing facility in the Lower Mainland, BC,” said Rossi in a post on Linkedin on March 17. “With three Blackbird by RollPros, two PreRoll-Er, infused pre-roll equipment, and pallets of product already moving through the facility, TRYGG Collective has cemented itself as the dominant pre-roll and co-manufacturing player in Western Canada.”

“A huge thank you to our partners who stood by us through this gut-wrenching process, and a special recognition to the Tricanna Industries Inc. team for their dedication and resilience in ensuring another cannabis venture didn’t fade into the night.”

Founded in early 2022, TRYGG provides packaging and processing options for Canada’s small, craft cannabis growers.

TriCanna’s NOI in February stated that Rossi had been discussing the possibility of purchasing Tricanna since early January 2025, for $200,000.

Between January 2 and February 2, 2025, Tricanna founder Dayna Lange negotiated with Rossi to increase the purchase price. The renegotiated offer was expected to pay out Community Savings Credit Union, which had previously provided a total approved credit facility for Tricanna worth $250,000. Even though Community Savings is the first secured holder, they have clarified with StratCann that they are not owed any money.

Tricanna says it has recorded operating losses since its June 18, 2018 incorporation. The company was first licensed by Health Canada in 2020 and has provided cannabis processing services for numerous cannabis companies, many of which are listed as unsecured creditors of Tricanna.

This article has been updated to clarify that Community Savings Credit Union has no outstanding debt with Tricanna.

Increased Canadian cannabis sales and exports add to Village Farms’ growth in 2024

Written by Sarah Clark on March 13, 2025. Posted in Financials.

Village Farms International, Inc. reported US$336.2 million in sales in 2024, an 18% increase from the year ended December 31, 2023, but a net annual loss of nearly US$35.9 million.

The company attributes most of this increase to a US$34.8 million uptick in Canadian cannabis sales and an increase in VF Fresh sales of US$17.9 million. This was partially offset by a decrease in US cannabis sales of $2.9 million.

Village Farms is the parent company of Pure Sunfarms, a greenhouse cannabis grower based in BC, as well as the Rose LifeScience brand. (All figures in US dollars unless otherwise noted.)

Rose LifeScience is the company’s Quebec-based operational brand of its Canadian cannabis business, located in Huntingdon, Quebec.

Village Farms’ Canadian cannabis sales for the year ended December 31, 2024, were $148.9 million. After cost of sales and other expenses, the company reported a net loss on Canadian cannabis sales of $3.2 million.

These figures represent a 31% increase in sales from the previous year’s $114 million but a decrease from that year’s $2.9 million net income.

US cannabis sales were $17.4 million, but after expenses and other costs, showed a $13.3 million loss. This was a decrease in sales compared to 2023’s $20.3 million and a slight decrease in losses compared to a $13.8 million net loss in 2023.

The company says the boost in Canadian cannabis sales was due to a 26% increase in branded sales, an 86% raise in non-branded, and a 33% increase in international sales, which was somewhat offset by an unfavourable impact of exchange rate fluctuations.

The growth in branded sales was due to market share gain across the flower, pre-roll and milled categories, which came with new product launches. The company says the increase in non-branded sales was from improved industry supply conditions and pricing supported by a shift of many producers toward asset-light models, as well as sales of non-brand-spec inventory.

For the year ended December 31, 2024, Village Farms incurred excise tax of $71,953 (C$98,442) versus $58,015 (C$78,315) for the year ended December 31, 2023. The 24% bump in excise taxes was due to the increased kilograms sold in the branded channel. The company says the Canadian excise tax is its single largest cost of participating in Canada’s adult-use (branded) market.

For the year ended December 31, 2024, 75% of Village Farms’ Canadian cannabis net sales were generated from branded flower, pre-roll, and cannabis derivative products, net of excise tax. This was a decline from the previous year when 80% of Canadian cannabis net sales were generated from branded flower, pre-roll sales and cannabis derivative products, net of excise tax.

Non-branded Canadian cannabis sales accounted for 19% and international accounted for 4% of Canadian Cannabis net sales in 2024, compared to non-branded sales of 14% and international sales of 4% in 2023. The increase in non-branded sales was driven by a rise in demand for bulk flower products.

The average net selling price of Village Farms’s branded flower in the Canadian market decreased by 2% in 2024 due to a higher sales ratio for the company’s value brand, Fraser Valley Weed Co, and its milled and pre-roll branded products.

The net average selling price of bulk non-branded flower and trim into the Canadian market increased by 45% in 2024, which the company says was primarily due to a surge in bulk flower, which is sold at a higher selling price, and higher demand for lower specification biomass which led to increased volumes and prices.

Branded Canadian cannabis sales in 2024 were $183.9 million, up from $149.9 the previous year. International cannabis sales from Canada in 2024 were $6.1 million, up from $4.6 million the previous year. The company currently sells internationally into the German, UK, Australian, and Israeli medical cannabis markets. In 2025, the company also began shipping to the New Zealand market through a supply agreement with Medleaf Therapeutics.

The company also holds one of only a handful of licenses to participate in the Dutch cannabis program and is currently building out a second facility in the Netherlands.

Non-branded cannabis sales in the Canadian market nearly doubled from $15.5 million in 2023 to $28.8 million in 2024.

“We remain pleased with our pace of international sales growth, which has been driven largely by continued strength of demand in Germany, as well as increased volumes in Australia and the UK,” said Village Farms President and CEO Michael DeGiglio.

“We have now shipped to five international markets with the recent addition of New Zealand, and believe we have a strong pipeline of potential new customers and market opportunities which give us confidence in our ability to triple international medicinal export sales in 2025.”

“We are in the process of optimizing our Canadian Cannabis resources to improve operational efficiencies between our Pure Sunfarms and Rose subsidiaries in 2025, and we are also excited to announce that we have broken ground on a Phase II expansion at our Leli Holland subsidiary in the Netherlands. Our Phase II project in Groningen is a brand new, state-of-the-art indoor facility which we expect will be complete in Q4 of this year and quintuple our annual production capacity.”

Four20 seeks extension and acceptance of recent plan of compromise

Written by Staff on March 10, 2025. Posted in Financials.

In a bench brief in early March, 420 Premium Markets Ltd. and its associated companies sought an extension of its CCAA proceedings to April 30, 2025.

The brief also seeks to authorize Four20 to establish two classes of Affected Creditors and seeks to accept the filing of the plan of compromise and arrangement of FOUR20 dated March 3, 2025.

The parent companies of cannabis retail chain Four20 Premium Markets first filed a notice of intent to make a proposal under the Bankruptcy and Insolvency Act in May 2024.

The companies 420 Premium Markets Ltd., 420 Investments Ltd., and Green Rock Cannabis Ltd (GRC)., filed the notices of intent following a $9.8 million judgment against 420 for repayment of a bridge loan and related interest and costs to Tilray subsidiary High Park Shops Inc. High Park was created for the purpose of the acquisition of Four20.

Tilray had initiated litigation against 420 after a failed attempt by the former to purchase 420 for approximately $110 million in 2019.

At the time, Four20 had six licensed cannabis retail locations and another 16 locations secured in Alberta. The retailer currently lists 35 locations in Alberta and Ontario.

Four20 then filed a statement of claim against Tilray in 2020 in an Alberta court for $110 million plus $20 million in damages after Tilray chose to end its deal to buy the retailer, with Four20 saying the BC-based cannabis producer had not acted in good faith.

In August, the proposal proceedings of 420 Parent, 420 Premium, and GRC commenced under Division I of Part III of the Bankruptcy and Insolvency Act and were extended to September 26, 2024.

Court approves reverse vesting order for Noya Holdings, adds ResidualCo to CCAA proceedings

Written by Sarah Clark on March 10, 2025. Posted in Financials.

On March 5, 2025, a court approved the stalking horse transaction first contemplated in November 2024 between Noya Holdings Inc (NHI) and its purchaser, Lending Stream.

NHI is the holding company, and through its wholly-owned subsidiary, NCI, it operates a cannabis manufacturing and production business.

NHI is the parent company of NCI and 2675383 Ontario Limited (267). NCI holds the grow and sales cannabis license, and 267 holds a micro-cultivation cannabis license.

The order also added 1001155163 Ontario Inc. (ResidualCo) as an applicant to the CCAA proceedings in order to carry out the transaction, transferring and vesting all of Nova Cannabis Inc’s (NCI) right, title, and interest in and to the excluded assets, excluded contracts, and excluded liabilities to ResidualCo.

Residualco was recently formed to take on specific contracts, assets, and liabilities from Delta9 in its recent deal with Simply Solventless Concentrates Ltd.

The March 5 court order for Noya, part of its CCAA proceedings, also extended the stay of proceedings up to and including April 11, 2025.

Noya filed for creditor protection in 2024 after its senior secured creditor, Lending Stream Inc., demanded payment and issued BIA notices regarding these debts in September. The owner of Lending Stream is the brother of the owner of the applicants.

Another secured creditor that provided loans to Noya Holdings is 1955185 Ontario Inc. As of September 30, 2024, 195 had loaned approximately $3.8 million to NHI, the approximate dollar figure associated with the proposed stalking horse deal. The numbered company is owned or controlled by the parents or relatives of the owner of the applicants.

On or about September 23, 2024, Lending Stream made a formal written demand for payment to NHI in the approximate amount of $1,850,000 and NCI in the approximate amount of $3,360,000 and issued to each of them a NITES notice.

In a Statement of Claim dated September 9, 2024, Pure Sunfarms Corp. began an arbitration claim in British Columbia against NCI pursuant to a production, supply and revenue sharing agreement from 2021. NCI refutes the claim.

Pure Sunfarms is seeking a monetary award of damages in the approximate amount of $2.8 million against NCI for unsold inventory under the agreement.

Two other companies, Ignite International Brands and Mauve & Herbes, have also raised claims against NHI and NCI, the first for $2 million and the second for $360,000. Ignite International Brands’ CEO, Dan Bilzerian, said the company was leaving the Canadian cannabis market in 2021.

All three are unsecured claims and are at different stages of litigation, arbitration, or mediation.

Another secured creditor is Gage Growth Corp. or TerrAscend Corp. As of September 30, 2024, NHI was indebted to TerrAscend or Gage under a limited guarantee, supported by a general security agreement, of approximately $1.3 million.

The court also ordered that the Canada Revenue Agency’s right of set-off is preserved to the extent that any amounts that are, or become, due to an Applicant or ResidualCo with respect to obligations arising prior to the CCAA filing date of November 6, 2024 are applied against any amounts that are, or become due, from an Applicant or ResidualCo with respect to obligations arising prior to that date on a consolidated basis, or any amounts that are, or become, due to an applicant or ResidualCo with respect to obligations arising on or after the CCAA filing date of November 6, 2024 are applied against any amounts that are, or become due, from an applicant or ResidualCo with respect to obligations arising on or after that date.

As of October 2, 2024, the Company owes the CRA approximately $346,000 for excise tax remittances and/or HST remittances.

Cannabis industry’s contribution to Canada’s GDP continues to increase

Written by Staff on March 10, 2025. Posted in Business, Cannabis News, Producers, Retail.

Canada’s legal cannabis industry contributed more than $8.3 billion to the country’s GDP in 2024, according to the most recent figures from Statistics Canada.

As in previous years, the majority of this came from licensed cannabis production, at nearly $7.4 billion, while retail added around $951 million on top of that.

The illicit cannabis market added another nearly $2.6 billion to Canada’s GDP in 2024, down slightly from 2023, with most ($1.7 billion) coming from unlicensed cannabis production, and $951 million coming from illicit cannabis retailers, both online and brick-and-mortar.

Licensed cannabis stores’ contribution to Canada’s GDP surpassed that of unlicensed retailers for the first time in 2023, a trend that continued in 2024.

While still only a fraction of Canada’s more than $2 trillion GDP, the legal cannabis industry in Canada is nonetheless a more considerable contribution to that overall number than many other industries, including breweries, wineries, and distilleries, as well as potash, dairy, coal mining, meat production, and natural gas production, to name a few.

Cannabis production’s contribution to Canada’s GDP is also about one-third of all crop production in the country, while licensed cannabis stores are about one-quarter of all retail stores’ contribution to GDP.

True North Cannabis enters SISP process, monitor seeks buyers

Written by Sarah Clark on March 7, 2025. Posted in Financials.

True North Cannabis Co’s court-appointed monitor is seeking offers for the three businesses or assets as part of a court-supervised sale and investment solicitation process (SISP).

The parent company of True North Cannabis Co., as well as Bamboo Blaze and real estate holding company 888, first filed for creditor protection for the three businesses on January 24, 2025.

The bid deadline for the SISP will be 45 days after granting the SISP order.

At the time, the Vancor Group Inc. made an application under the Companies Creditors Arrangement Act (CCAA) declaring that 2744364 Ontario Limited (operating as True North Cannabis Co.), 2668905 Ontario Limited (operating as Bamboo Blaze), and 2767888 Ontario Inc. (888, a real estate holding company) are debtor companies to which the CCAA applies.

A judge approved Vancor’s request for an order (the SISP Order) approving a sale and investment solicitation process to be administered by the monitor. The proposed SISP Order seeks the approval of a stalking horse subscription agreement between the debtors (all three companies) and Vancor, as the Stalking Horse Bidder, which establishes a stalking horse bid in the SISP.

The judge ruled that a sale transaction would benefit all companies involved, saying there is no other, better, or viable alternative.

The court also approved Vancor’s request to file a Claims Procedure Order approving a claims procedure to be administered by the monitor, in respect of claims against the debtors and their directors and officers.

The stalking horse agreement helps to secure the “preservation and continuity of the core business” and the continued employment for many of the companies’ approximately 285 employees.

True North listed $21.4 million in unsecured creditors in January. Bamboo Blaze lists $3.3 million in unsecured credit, and 888 lists $6.4 million. Meanwhile, 888 lists $14.1 million in secured creditors, for a total of $31.1 million and a grand total of $45.2 million combined.

At a February 3, 2025 hearing, the court extended the stay to May 2, 2025, and increased permitted borrowings under the DIP Facility to $2 million.

On February 24, Vancor filed materials seeking an order approving a sale and investment solicitation process (the SISP) to be administered by the monitor.

Strong branded revenue delivers Nextleaf’s first profitable quarter in a year

Written by Sarah Clark on March 4, 2025. Posted in Financials.

Nextleaf Solutions reported gross revenue of $3.85 million in its most recent quarterly report for the three months ended December 31, 2025 (Q1 2025), net revenue of $2.9 million, and $530,432 in income.

While gross revenue was up 16% year-over-year from the previous quarter’s $3.81 million (Q4 2024), it was down year-over-year from $4.1 million in Q1 2024. Income and comprehensive income were up year-over-year from $132,821 at the end of 2024, at a loss of $1.4 million in the previous quarter.

The bulk of Nextleaf’s revenue stream in Q1 2025 was its various branded extract products, its Glacial Gold series, bringing in nearly $3.6 million. Bulk distillate sales brought in another $140,179 while private label sales brought in $158,304.

The company disaggregated its revenues from the sale of goods between sales of bulk distillate, branded (Glacial Gold) vape pens, oils, and softgels, and private label, which include toll processing and other services. Each type of revenue is produced by a single operating/production division.

The majority of sales in each category were in the BC market, with $2 million in branded sales, and another $55,340 in bulk distillate and private label sales.

Nextleaf reported a temporary shift in Q1 FY2025 to prioritizing toll-processing activities for commercial partners over bulk ingredient production for B2B sales.

“When our vault is loaded and we’re focused on toll-processing, the most impactful opportunity for us is to continue to scale CPG sales with our flagship brand, Glacial Gold. This includes product innovation and deepening our in-market impact through expanded presence,” said Nextleaf CEO Emma Andrews.

“By concentrating on higher margin activities, we improved our cost-of-sales and significantly increased profitability in Q1 delivering stronger shareholder value. Our lean manufacturing model and business agility allow us to pivot quickly in response to market conditions,” adds Andrews.

Nextleaf sells its branded cannabinoid vapes, oils, and softgels in BC, Ontario, Nova Scotia, Manitoba, and Saskatchewan. It is also expanding its distribution in the prairie provinces by integrating additional partners to service Saskatchewan-based retailers. Lineage Distribution, currently servicing Nextleaf in Manitoba and “the northern Provinces,” is expanding its existing distribution network in Saskatchewan.

BC’s Tricanna Industries filed Notice of Intention, seeking buyer

Written by Sarah Clark on March 3, 2025. Posted in British Columbia, Cannabis News, Financials, Producers.

BC-based cannabis processor Tricanna Industries Inc. filed a Notice of Intention (NO I) on February 5, listing $3.2 million in liabilities, including $1.1 million owed to the Canada Revenue Agency and $31,408.26 in GST.

The company lists $2.9 million in unsecured debt and $1.7 million in secured debt, for a total of more than $4.6 million.

Since filing the NOI, the company says it has continued its normal operations and intends to continue to carry on business with its suppliers on terms which are acceptable to Tricanna, its suppliers, and regulatory bodies.

As a result of filing the NOI, all proceedings against Tricanna and its assets were automatically stayed until March 6, 2025, which may be extended by further Court approval.

Tricanna offered semi-automated pre-roll production, packaging for cannabis products, trimming, and distribution services for cannabis cultivators and other producers. The company operated from a leased production facility in Mission, British Columbia. The facility is owned by a separate holding company and is not subject to these proceedings.

In its first report to its creditors, the company reported net losses for the year ended December 31, 2024, and further reported that the Canada Revenue Agency (CRA) informed Tricanna that it may initiate action against the company with respect to the outstanding balance owed to the CRA for excise tax.

The actions threatened by the CRA included freezing bank accounts, as well as suspending or not approving a renewal of Tricanna’s excise tax license, a move the CRA has used against other companies in recent years. Without this licence, a company cannot operate in the cannabis industry.

As a result of what Tricanna says are significant operating losses and the pending action from CRA, the company’s Management decided to seek creditor protection to permit a restructuring of Tricanna’s financial affairs.

Tricanna’s management filed the Notice of Intention to Make a Proposal (NOI) pursuant to the provisions of the Bankruptcy and Insolvency Act on February 5, 2025, and MNP Ltd. consented to act as Licensed Insolvency Trustee in the proposal proceedings.

The company is currently seeking to extend the deadline to file a proposal until April 20, 2025, as well as the approval of a Reverse Vesting Order (RVO) to vest all of the company’s excluded assets, excluded contracts and excluded liabilities.

The subscription agreement includes that a portion of the secured liabilities owing to investors Victor Neufeld, Gary Leong and Thomas Tardi will be retained by the company as documented by a non-interest bearing, demand promissory note and will be satisfied from the Subscription price upon closing. Neufeld is a retired executive from Aphria Inc., while Leong was previously the chief scientific officer at Aphria, along with several other subsequent cannabis industry positions.

The subscription agreement also includes that in the event that a balance is owed to Community Savings Credit Union, it would also be retained by the company.

In the weeks leading to Tricanna’s NOI, the company underwent an informal sales process, contacting various parties to solicit an offer to purchase the company. Tricanna approached parties that its directors believed could benefit from acquiring Tricanna and had sufficient cash reserves to be able to close a transaction quickly.

Several parties engaged in the informal sales process did not present offers, citing concerns with Tricanna’s “limited working capital” and the company’s requirement to close a transaction quickly.

Another party was approached by Tricanna, but they did not proceed with an offer as the prospective purchaser lacked experience in the cannabis industry.

Tricanna continues to employ four full-time employees, which it intends to retain, with one employee’s hours being reduced.

The federal excise arrears include an additional $280,042.02, which relates to excise duties that were assessed against a significant amount of cannabis inventory that was stolen from Tricanna’s premises on September 1, 2023.

In an affidavit, the president and director of Tricanna, Dayna Lange, says the insurance proceeds did not compensate Tricanna for the excise duties on the stolen inventory.

Tricanna says it has recorded operating losses since its June 18, 2018 incorporation.

On February 2, 2025, Tricanna entered into a subscription agreement with Fabrizio Rossi, the CEO of cannabis company the Trygg Collective, reflecting a renegotiated offer that is intended to close by way of an RVO.

Tricanna was first licensed by Health Canada in 2020.

h/t Insolvency Insider

Organigram closes on final round of funding from British American Tobacco

Written by Sarah Clark on March 3, 2025. Posted in Business, Cannabis News, International, Producers.

Organigram Holdings Inc. has, as of February 28, closed on the third and final tranche of funding from BT DE Investments Inc., a wholly owned subsidiary of British American Tobacco.

In 2023, Organigram said most of a $124.6 million investment from British American Tobacco (BAT) would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion.

In 2021, the deal was first announced as a C$221 million strategic investment, and has continued to evolve over the years. The third and final round of funding was expected in early 2025.

The first round of funding closed on January 23, 2024. The second round of funding was closed in August 2024.

“With all three tranches of the Jupiter private placement now funded, Organigram has approximately $57.8 million to further invest from its Jupiter strategic investment pool after completing investments of $21 million in Sanity Group and $2.7 million in Open Book Extracts,” said Paolo De Luca, CSO of Organigram (all figures in Canadian dollars unless otherwise noted).

“Opportunities in the space have only improved with cannabis valuations at historically weaker levels and many cannabis and hemp companies unable to access cost-efficient growth capital despite fundamentally strong businesses. We look forward to continuing to roll out our international and differentiated product strategy supported by the Jupiter platform.”

In June 2024 Organigram announced a $21 million investment from its Jupiter strategic investment pool, giving it a minority stake in German cannabis company Sanity Group GmbH and, therefore, a foothold in the German market.

In March, Organigram announced a USD$2 million minority investment in Steady State LLC (dba Open Book Extracts or OBX) from the Jupiter fund. Based in North Carolina, OBX specializes in cannabinoid ingredient production and serves as a one-stop formulation and finished goods manufacturer.

The final round of funding from BAT comes with 7,562,447 common shares in Organigram and 5,330,728 Class A preferred shares at a price of $3.2203 per Share for gross proceeds of $41,519,891.

The aggregate subscription price of the shares acquired as part of the first, second, and third tranche was $124,559,674.36.

Organigram operates its flagship campus in Moncton, New Brunswick, its edibles facility in Winnipeg, its flower cultivation and hash production facility in Lac-Supérieur, Québec, and its London and Aylmer facilities in Ontario which it acquired in a recent deal with cannabis producer Motif.

The Aylmer facility houses CO2 and hydrocarbon extraction capabilities and is optimized for formulation refinement and post-processing of minor cannabinoids, as well as pre-roll production. Organigram plans to upgrade the London facility for labelling, packaging, and national fulfilment.

Cannabis, tobacco, and Canada

This is not the first entry of a tobacco company into the Canadian cannabis market. In 2016, Philip Morris invested US$20 million in the Israeli company Syqe Medical. Syqe created an inhaler for use with cannabis for medical purposes.

In 2019, Altria Group, the parent company of Philip Morris USA, paid $2.4 billion for a 45% ownership interest in Cronos Group, the Canadian cannabis company behind brands like Spinach and Peace Natural. Altria later declined options to purchase additional shares.

In 2019, Imperial Brands, a British multinational tobacco company, invested C$123 million in Canada’s Auxly Cannabis Group. That deal also included a research and development partnership similar to other deals.

Week in Weed – March 1, 2025

Written by David Brown on March 1, 2025. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, Jon Hiltz looked at what the recent election in Germany means for the country’s fledgling cannabis laws and what this could mean for Canadian companies looking to do business there.

We also looked at: Health Canada’s long-awaited results from their cannabis testing program; at Statistics Canada’s most recent monthly cannabis sales figures, showing a significant spike in December; and, at Calgary’s efforts to allow cannabis sales at events.

Simply Solventless closed on their Delta 9 deal, changing Delta 9’s name to Humble Grow. At the same time, Canopy Growth announced the launch of its Tweed brand into the German medical cannabis market, Village Farms launched its first cannabis shipment to New Zealand, and High Tide paused its plan to acquire Germany’s Purecan GmbH.

In financial news, MTL released its Q3 2025 financial report, Cronos its Q4 2025, Ayurcann its Q2 2025, Greenway its Q3 2025, Avant Brands posted their 2024 year end report, and Freedom Cannabis is moving forward with its SISP process.

In law enforcement news, Police in Montreal seized thousands of cannabis plants and dried cannabis, Edmonton Police are seeking help identifying suspects in several recent cannabis store robberies, and Police in Nova Scotia charged 21 people in connection with 13 illegal cannabis stores.

We also featured Ontario cannabis nursery Trichome Hills Nursery Services about a new pilot project they are seeking production partners for

In other cannabis news

Cannabis Culture recently opened its first legal, licensed store, located in Niagara Falls. The formal Grand Opening is said to be March 1.

Saltwire featured Taylor Giovannini at Oceanic Releaf in Newfoundland and the company’s chain of cannabis and coffee shops.

Workers at Kiaro Cannabis in BC joined UFCW 1518, becoming some of the latest members of the BC Budtenders Union.

MMJ Daily spoke with Rod Wilson at Hidden Harvest, Canada’s first and only cannabis nursery and farmgate store in Moncton, New Brunswick.

Dank Cannabis ran a sponsored post about delivery options from their Okotoks, Alberta store.

Tether hosts its fourth annual Budtender Appreciation Week, with industry events in Calgary, London, Vancouver, and online from March 24-30.

Cannara Biotech Inc. announced the extension and related amendments to its existing credit agreement with the Bank of Montreal (BMO) and convertible debenture initially issued on June 21, 2021, as amended on August 31, 2023, and January 30, 2024, in the total initial principal amount of $5.7 million to Olymbec Investments Inc.

Organigram welcomed New Brunswick Minister Luke Randall, president & CEO of Cannabis NB Lori Stickles, as well as Jay Reid from Opportunities NB to its facility in Moncton.

A sign announcing the opening of an unlicensed cannabis vape shop at the entrance to the Abenaki community of Wôlinak in Quebec raises concerns from some community members and elected officials.

The Telegraph Journal shared comments from several people in connection to recent and ongoing enforcement actions in New Brunswick against unlicensed cannabis stores, including Kyle Caplin of Eel River Bar First Nation (brother of L’Nuk Lounge owner Cody Caplin, former provincial health minister Bruce Fitch, Delbert Riley, constitutional lawyer Lyle Skinner, and provincial Justice and Public Safety spokesperson Allan Dearing, who all debate the legality of such shops.

BC’s director of civil forfeiture is claiming forfeiture of $574,100 in Canadian currency and a cryptocurrency key seized during a search of a Prince George apartment that they say is connected to the illegal production and sale of cannabis.

Tilray Brands, Inc. announced that its 420 festivities this year will spotlight Tilray’s leading recreational cannabis brands—Good Supply, Redecan, Broken Coast, and XMG—through nationwide activations, pop-up events, and a marquee concert featuring multi-platinum artist Don Toliver on April 17, 2025, at Rebel, the iconic venue in Toronto, Ontario.

Simply Solventless Concentrates (SSC) and High Tide Inc. were recognized by the TSX Venture Exchange as the 14th and 21st of the 50 Top-Performing Companies on the TSX.

Delta 9 has filed an application seeking to extend the Stay Period to March 31, 2025.

Health Canada issued its own recall notice in relation to one issued by the OCS on February 6.

On Friday, February 21, 2025, Toronto Police announced they had arrested one man in connection with a cannabis store robbery near Eglinton Avenue West and Dufferin Street area. One suspect remained outstanding.

Two young women from Montreal have entered guilty pleas in connection with the seizure of about 63 kilograms of cannabis at Halifax Stanfield International Airport last summer.

The search of an acreage south of Prince Albert, Saskatchewan, resulted in the discovery of 100 marijuana plants worth an estimated $2.4 million.

Suspects in a cannabis store robbery in Irricana, Alberta, were apprehended by RCMP. “In 30 seconds, they threw a chain around the door, and ripped the door off and cleaned the place right out.”

International cannabis news

A new article in Cannabis Magazine in Israel raises questions about an investigation by the Israel Ministry of Economy into allegations of product dumping by Canadian cannabis producers. The ministry rejects any suggestion of a conflict.

Uruguay’s IRCCA selected four new companies for the production of cannabis for adult use

Horti Daily ran an interesting piece on CanAdelaar’s experience with converting a tomato greenhouse to cannabis production as part of the Netherlands’ cannabis supply pilot project. CanAdealaar is a cannabis company based in Vienna, Austria.

A California lawmaker wants to cancel a scheduled increase in the state’s cannabis excise tax of nearly 25%. If the state Legislature were to pass Assembly Bill 564–written by Assembly Member Matt Haney, a San Francisco Democrat–the state’s cannabis excise tax would stay at 15%, with no adjustments allowed. California collected more than $625 million in cannabis excise taxes in 2023, according to state data.

A judge handed an $18 million preliminary award to Cookies founder Gilbert Anthony “Berner” Milam Jr., the latest in an ongoing dispute between the company’s founders and its investors.

And finally, lawmakers in Washington are considering a bill that would authorize cannabis use in regulated environments. Currently, cannabis use is only legal on private property in the state.

MTL reports increased revenue, loss in Q3 2025

Written by Sarah Clark on February 27, 2025. Posted in Financials.

MTL Cannabis Corp. reported $25.6 million in revenue for the three months ended December 31, 2024 (Q3 2025), net revenue of $20 million, and a $1.2 million loss.

Revenue was up 8% compared to Q3 2024, while gross profit was down 4%. The company incurred $5.6 million in excise taxes in the most recent quarter, a 29% increase from the same quarter in the previous year.

Net loss increased 369% from net income of $453,004 in Q3 2024. The company reported net income of $1.2 million in Q2 2024.

The company says the revenue increase is primarily due to the 2023 Canada House Cannabis Group acquisition. There are 12 Canada House clinics across Canada: one in each of the provinces of Alberta, Prince Edward Island, and Newfoundland, two in New Brunswick, two in Nova Scotia, and five in Ontario.

MTL is the parent company of Montréal Medical Cannabis Inc., a licensed producer operating from a 57,000 sq ft licensed indoor grow facility in Pointe-Claire, Québec; Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Québec, growing best-in-class indoor cannabis in its 64,000 sq. ft. production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions

ICM and Abba supplement Montréal Cannabis with additional cultivation capacity to meet ongoing demand and growth. MTL says it currently has more than 3,400 veterans registered with Abba.

MTL has also established export channels in Germany, Australia, Poland, Portugal, and the UK.

As of December 31, 2024, MTL had an estimated total production capacity of 19,500 kg per annum after recently completed retrofits and expansions of both Abba and ICM, which added an estimated 2,500 kg and 8,000 kg, respectively.

“Our resilient strategy underpins the strong results we’ve delivered quarter-over-quarter, demonstrating that our high-quality products and leading industry performance are driving enhanced value for shareholders,” said Michael Perron, CEO of MTL. “With robust opportunities for continued growth, our company is well-positioned to deliver superior products for our expanding client base both domestically and internationally.”

Freedom Cannabis moves forward with SISP, with more than $9 million in tax liability

Written by Sarah Clark on February 27, 2025. Posted in Financials, Other.

On February 26, 2025, the Court of King’s Bench of Alberta granted an order approving, among other things, the SISP and a stalking horse share subscription agreement between Freedom Cannabis and 2644323 Alberta Ltd. (the Stalking Horse bidder). (h/t Insolvency Insider)

Interested parties wishing to bid in the SISP must submit an offer to the Monitor by no later than 3.00 pm (MST) on Wednesday, April 9, 2025.

Freedom Cannabis first received creditor protection in August 2024 to pursue the restructuring and sales process.

The fifth report of the monitor in the CCAA proceedings for Freedom Cannabis, posted on February 20, outlined the details of the stalking horse bid from a company connected to their largest creditor, JL Legacy Ltd. This bid was for a price estimated to be in the range of approximately $16.5 million to $20.5 million, with a closing date of June 30, 2025.

The current stay period expires on February 28, 2025. To implement an SISP, the applicant is seeking an extension to April 30, 2025. Freedom is also seeking authorization to borrow up to $4.5 million for ongoing expenses through the process.

In October, Freedom said it needed more time to finalize the terms of its SISP and Stalking Horse Agreement to resolve issues with its landlord, including an outstanding debt.

In an affidavit from February 24, a Canada Revenue Agency (CRA) representative stated that the agency maintains four accounts for Freedom Cannabis Inc., tracking the company’s liability to the Minister of National Revenue on different tax statutes.

CRA’s records show a liability of $327.36 for one of those accounts (payroll) pursuant to the Income Tax Act, the Canada Pension Plan, the Employment Insurance Act, and the Alberta Personal Income Tax Act.

The company’s liability for goods and services tax (GST) and harmonized sales tax (HST) pursuant to the Excise Tax Act showed an outstanding balance of $117,958.15 as of February 21, 2025, for the period ending August 8, 2024. However, there is also a credit of $70,391.36 for the post-IO period (under the Companies Creditors Arrangements Act), which the CRA is setting off against the post-IO GST debt.

With respect to Freedom’s cannabis duty account with the CRA, which tracks liability for duty pursuant to the Excise Act, 2001, as of February 21, 2025, the balance outstanding is $9,693,946.85. This includes more than a half million dollars in interest assessed. This liability accrued between August 2022 and August 2024.

Pursuant to the Excise Act, 2001 and the regulations of that statute, CRA currently holds $483,500.00 as security for the RD account liability. To date, CRA has not set off the security against the account debt.

Any parties interested in participating in the SISP should contact the Monitor to receive additional information at freedom@kpmg.ca. Bids must be received no later than 3.00 pm (MST) on Wednesday, April 9, 2025

Freedom leases approximately 111,600 square feet of space at a facility in Acheson, Alberta, and is considering other facilities.

Note: This article initially referenced the applicants’ senior secured creditor, Carmela Marzilli, and the equipment financer, 2125028 Ontario Inc., who were not involved in the current Freedom Cannabis filing. The reference to Marzilli has been removed.

Cronos reports increase in net revenue in 2024

Written by Sarah Clark on February 27, 2025. Posted in Financials.

Cronos reported net revenue of USD$30.3 million for the three months ended December 31, 2024 (Q4 2024), a 27% increase from Q4 2023, and net income of USD$43.9 million, a 197% year-over-year increase.

Before excise taxes, net revenue for the year ended December 31, 2024, was $161.8 million, up from $120.3 in 2023 and $109.3 in 2022. Cronos incurred $44.2 million in excise taxes in 2024. Net income for the company in all of 2024 was $41.1 million, up from a $74 million loss in the previous year.

The comprehensive loss attributable to Cronos Group in 2024 was $43.1 million.

Crono’s revenue in Q4 2024 increased by 27% year-over-year, while net revenue in fiscal year 2024 increased by 35% year-over-year to $117.6 million.

“We set ambitious goals to deliver robust growth, improve margins, and achieve operational excellence,” said Mike Gorenstein, chairman, president and CEO of Cronos. “Today, I am proud to say that Cronos has not only met but exceeded these objectives, as evidenced by our strong 2024 results. Our unwavering commitment to innovation, quality, and disciplined cost management has solidified our leadership in the global cannabis industry.”

Cronos GrowCo is licensed to sell certain cannabis products to other license holders in the wholesale channel, as well as to provincial cannabis control authorities. It is also licensed to export dried flower to the Israeli medical cannabis market.

The bulk of the company’s sales were cannabis flower ($87.9 million), while cannabis extracts accounted for $29.1 million in sales. Most of the company’s sales were in Canada ($82.4 million), another $28.4 million was in the Israeli market, and $6.8 million came from other international markets.

In 2024, Cronos expanded into the United Kingdom cannabis market. The company also sells its Peace Naturals brand through Cansativa GmbH, its distribution partner in the German medical cannabis market, and in Australia through its Vitura Health Limited partner.

In response to ongoing trade challenges in Israel due to concerns about Canadian companies “dumping” products into the local market, a group of cannabis cultivators filed an administrative petition in the District Court of Jerusalem, Israel, on July 5, 2024, against the Trade Levies Commissioner and certain Israeli and Canadian businesses. On February 6, 2025, the court dismissed the administrative petition.

The Israeli government had proposed a levy on Canadian cannabis products, which could be as high as 369% on Cronos products. In its most recent quarterly report, Cronos says that on November 10, 2024, Israel’s Trade Levies Commissioner published final findings under which Cronos would be subject to a proposed duty of 175%, pending a ruling from an advisory committee.

The report says Cronos Israel was the largest importer from Canada among all importers in 2023.

Cronos incurred $44.2 million in cannabis excise taxes in 2024 from $78.6 in total net revenue, a rate of 56%.

Cronos sells under the Spinach, Peace Naturals and Lord Jones brands. In March 2019, Altria (previously known as Philip Morris Companies, Inc.) invested $1.8 billion for a 45% Stake in Cronos Group Common Equity.

Health Canada approved amendments to the company’s Ontario Cronos GrowCo site perimeter in Q4 2024. Cronos GrowCo expects to finish construction of the expanded cultivation and processing facilities in Q2 2025, and the first harvests and sales from the area will commence in the second half of 2025.

In the first quarter of 2024, the Company ceased operations at the Cronos Fermentation Facility in Manitoba, for which it has been seeking a buyer. In the third quarter of 2024, the company adjusted its sales strategy for the facility assets to market them to a broader buyer pool. This resulted in the recognition of a loss on held-for-sale assets of $10,422 on the consolidated statements of net income and comprehensive income for the year ended December 31, 2024.

Ayurcann reports record sales growth in Q2 2025

Written by Sarah Clark on February 27, 2025. Posted in Financials.

Ayurcann Holdings Corp. reported a net revenue of $7.5 million for the three months ended December 31, 2024 (Q2 2025) and a net loss of $121,718.

The company incurred $5.7 million in excise taxes from a record of nearly $13.4 million in sales in the most recently reported fiscal quarter, a 25% increase year-over-year in gross revenues, with a 43% gross margin.

Net revenue was up 29% from $5.8 million in Q2 2024, and losses were down from $772,616. The cost of goods sold was $4.2 million, a 15% increase from the same quarter in the previous year. Gross profit increased 53% year-over-year.

As of December 31, 2024, the company’s accumulated deficit was $14,747,505, with a large portion related to the one-time transaction costs due to the reverse-takeover transaction in March 2021.

Ayurcann operates a fully licensed 13,585-square-foot extraction and manufacturing facility in Pickering, Ontario. It sells cannabis under its house brands like Fuego, XPLOR, and Happy and Stoned, in BC, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, and Yukon.

In June 2024, Ayurcann Holdings Corp. and Arogo Capital Acquisition Corporation announced they entered a definitive business combination agreement.

Greenway reports increased revenue, declining losses in Q3 2025

Written by Sarah Clark on February 27, 2025. Posted in Financials.

Greenway Greenhouse Cannabis Corporation brought in $1.7 million in net revenue in the third quarter ended December 31, 2024 (Q3 2025), a 21% year-over-year increase.

Although the company reported a net loss of $675,076 in its most recent quarterly report, this was down from a loss of $1.6 million in the same quarter the previous year.

The Ontario-based cannabis producer sold the equivalent of 1,063,044 grams of cannabis in the three months ended December 31, 2024, at a net sales price of $1.58 per gram. This was a decrease in total grams sold (1,484,040) from the previous quarter but an increase from the previous quarter’s $1.22 per gram price.

“I am pleased to see that we continue to improve our sales compared to previous periods, and it is because of our strong product and team that this quarter has shown a 21% increase from the same quarter in FY24,” said Carl Mastronardi, president of Greenway. “Over the first three quarters of the year, we have achieved a 57% increase in net revenues.

“The Canadian cannabis industry is rebounding, and Greenway is helping to lead the charge. As we continue to see the price of wholesale cannabis increase, we are looking toward new and emerging markets to ensure we are capturing the maximum value of our product. I am proud that consumers around the world have begun to be able to experience our product, and we will continue to expand our distribution both domestically and internationally.”

Greenway’s cost per gram also decreased from the previous quarter, from $0.93 in Q2 2024 to $0.78 in Q3 2024. The company says its costs per gram fluctuate due to seasonal, environmental and varietal factors that affect crop yields, noting that the cost per gram sold in the second quarter and into the third quarter cost of sales was impacted by a “number of unique production challenges associated with certain high-THC cannabis cultivars.”

Greenway has also begun revitalizing its existing cultivars to optimize their performance. Its research and development expenses for the three and nine months ended December 31, 2024, were $22,024 and $43,515, respectively.

This includes collaborating with cannabis nursery Segra International Corp. to “clean and rejuvenate” its four best-performing cultivars. The company says these efforts are aimed at supporting yield recovery as part of the production challenges that may be attributed to genetic drift.

The company incurred $10,285 in excise taxes in the most recent quarter and says it is current with all of its excise tax obligations. On October 4, 2024, the company announced that it had surpassed 30,000 kg of product sold since its launch.

Greenway sells cannabis in Canada through its EPIC Cannabis Co. and MillRite brands, as well as through the wholesale cannabis market.

In December 2024, Greenway also entered into an asset purchase agreement with Choice Growers Cannabis Inc. to acquire the company’s consumer brands.

The deal included a write-off of Choice Growers debt to Greenway and a royalty payment equal to varying percentages of net revenue over a period of six years.

The acquisition includes all of Choice Growers’ brands, including Grapefruit God Bud (also known as Grape God), The Jeffrey, Watermelon Pebbles, Pink Lemonade, Duke Nukem, Tangerine Dream, and Blackberry Cheesecake.

Canada reaches half a billion in monthly cannabis sales in December 2024

Written by Staff on February 24, 2025. Posted in Business, Cannabis News, Retail.

After showing signs of slowing down, Canada’s retail cannabis sales shot up to their highest level so far in December 2024, at just under half a billion dollars in one month.

Cannabis sales in December ($499.7 million) surpassed the previous high of $475.5 million in August 2024, and even exceeded the previous high of $469 million in August 2023.

All of these figures are non-seasonally adjusted; seasonally adjusted sales numbers are somewhat lower. Statistics Canada also adjusts its numbers over time, depending on data quality. The most recent sales figures are rated as “C: good”, the lowest of three ratings for data quality.

Unsurprisingly, retail sales were highest in Ontario, Canada’s most populated province, followed by Alberta, British Columbia, and Quebec.

Overall retail sales saw steep declines in early 2024, largely driven by declines in Ontario’s reported sales figures. While declines in sales after the holiday shopping season are expected, other provinces did not show a similar decline. If past sales history is repeated, expect significant declines in sales in January and February 2025.

December 2024 monthly retail cannabis sales were up $51.1 million year-over-year (YOY) compared to December 2023. This compares to:

December 2022-December 2023: $22.8 million YOY increase
December 2021-December 2022: $71.6 million YOY increase
December 2020-December 2021: $57 million YOY increase
December 2019-December 2020: $149.5 million YOY increase

Decibel enters new supply agreement in Israel

Written by Sarah Clark on February 18, 2025. Posted in Financials.

Decibel Cannabis Company Inc. recently entered into a new supply agreement and trademark license agreement with Keren Tirk Ltd., an Israeli cannabis company.

The deal means Decibel will supply its General Admission branded Cannabis for distribution to medical cannabis patients in Israel. The first shipment is expected in Q2 2025.

“General Admission has solidified itself as one of the top cannabis brands in Canada, built on a foundation of quality, accessibility, and innovation,” said Adam Coates, CRO for Decibel.

“We’re excited to leverage the goodwill we’ve built domestically to establish General Admission as a globally recognized brand. As we expand into new markets, we’re bringing the same commitment to delivering differentiated products and exceptional value. This is a significant milestone for Decibel as we continue to set the standard for building cannabis brands on an international scale.”

The move follows a Q4 2023 report which noted an Israeli customer, Bull Pharma, defaulted on its payments to Decibel required under the cannabis supply agreement, leading to Decibel setting aside $1.6 million of such receivable.

At the time, Decibel said it took formal legal action to collect the receivable. The Israeli company later filed an insolvency motion. Decibel joined these proceedings and formally filed its claim with the trustee, arguing that it believes 300kg of inventory related to this provisioned receivable is currently accessible and that a portion of the receivable may be recoverable through a resale agreement of this inventory with the trustee and another Israeli company.

On June 29, 2022, Decibel’s Thunderchild Cultivation Facility, located in Battleford, Saskatchewan, received its CUMCS Equivalency IMC-G.A.P. certification to support its international expansion. The facility’s first export to Israel occurred in Q4 2022 when Decibel released its Qwest brand in the Israeli market. Decibel last shipped products to Israel in the fourth quarter of fiscal 2023.

Decibel’s sales to Israel were $3.7 million and $1.9 million, respectively, for the years ended December 31, 2023, and 2022.

Decibel is also one of a handful of Canadian cannabis companies named in a report by Israel’s Ministry of Economy, which has been investigating allegations of Canadian cannabis being sold at below-market value in Israel’s medical cannabis market.

The investigation was first announced in January 2024. In July 2024, the Israeli government agency released its preliminary report on the topic, proposing tariffs from 63% to 369%, depending on the cooperation of the companies involved.

Initially, the commissioner recommended a floating levy or tariff of 63% for Decibel, 74% for Pure Sunfarms, 112% for Organigram, and 369% for all other producers.

In November, a new 126-page final report proposed fees as low as 2% for Decibel cannabis, 33% for Village Farms (Pure Sunfarms), 39% for Organigram, and 77% for Tilray. All other companies would face a levy of up to 175%.

No decision regarding the proposed tariffs has yet been released.

Decibel is a consumer-focused cannabis company with brands like General Admission, Qwest, and Vox.

Following the acquisition of AgMedica Biosciences in Q4 2024, Decibel has added an EU-GMP certified facility, which supports its commitment to international standards and global distribution growth.

Decibel now operates three cultivation facilities and a processing and manufacturing centre, positioning the company as a leader in high-quality, globally accessible cannabis products and brands.

Decibel Cannabis Company Inc.’s net revenue was $24.1 million for the three months ended September 30, 2024, and its net loss was $585,000 in its most recent financial report covering Q3 2024.

Gross revenue for the cannabis company was down 13% year-over-year, from $46.5 million in Q3 2023 to $36.9 million in Q3 2024. The company said this was primarily due to a decline in net Canadian recreational sales and international sales.

International sales for the three months ended September 30, 2024, were $309,000, down from $500,000 in Q3 2023. Decibel attributed the decrease to the halt of exports to Israel as the company transitioned to a new partner. This was partially offset by exports to new partners in the United Kingdom and Australia.

Featured image via Cannabis Israel

HYTN and A1 Cannabis announce collaboration agreement

Written by Sarah Clark on February 17, 2025. Posted in Financials.

HYTN Innovations Inc. has entered into a partnership with A1 Cannabis Inc. in a move that will allow A1 to transition its complete cannabis product portfolio from Tilray Brands to HYTN.

A subsidiary of Iconic Brewing, A1 is the Toronto-based owner of Summit Cannabis Beverages. The “comprehensive collaboration” announced on February 17 involves both a manufacturing agreement and a consulting agreement with a three-year term.

In addition to allowing A1 to transition its portfolio from Tilray, A1 will offer sales management services, while HYTN will provide the facilities, licenses, and qualifications required for ongoing product development within its licensed infrastructure. The agreements were signed on Feb 5th, 2025.

As part of the collaboration, Cole Miller, CEO of A1 Cannabis, will oversee HYTN’s domestic product sales forecasting, product development, and sales management for its 5 and 10 mg Sparkling Beverages and 100 mg Nano Shots.

HYTN says it believes that this deal will allow the company to accelerate its consumer products under a cost-effective and scalable manufacturing framework. A1 reported Summit Beverage’s sales of over 600,000 units in 2022, with sales in over 300 retailers nationally.

In January, HYTN received a new set of import permits from the UK’s Home Office and corresponding export permits from Health Canada. These permits enable the fulfilment of international orders totalling over 400 kilograms of Good Manufacturing Practice (GMP) cannabis products, advancing HYTN’s global reach and operational capabilities.

Also in January, HYTN announced receipt of an initial purchase order under manufacturing and pricing agreements with SNDL Inc. Under the executed agreements, HYTN will utilize EU Good Manufacturing Practice (EU GMP) to process both bulk and finished cannabis products for SNDL.

For the year ended September 30, 2024, HYTN generated an operating loss of $2.7 million and a net loss and comprehensive loss of $6.6 million.

For the same period, the company reported $851,494 in revenue from cannabis sales and agent fees. The majority of that ($639,311) was from cannabis beverage sales, while $199,599 was from cannabis edibles sales, and just $8,717 was from cannabis flower sales.

On March 21, 2024, HYTN announced that it had been awarded Good Manufacturing Practice (GMP) certification by Australia’s Therapeutic Goods Administration for its Kelowna production facility. This certification allows HYTN to manufacture cannabis dried flower into bulk and finished GMP medical products.

HYTN has begun registering A1’s product portfolio and expects to secure initial purchase orders for Summit-branded products by Q2 2025.

The company notes that this agreement does not constitute a joint venture. Instead, HYTN will register, manufacture, collect revenues from, and sell A1 products under its own licenses and approvals, while A1 retains rights to the A1 and Summit brands, its product formulations, and all related intellectual property.

“Integrating A1 into HYTN is an important advancement in scaling our domestic business,” said Elliot McKerr, CEO of HYTN. “By combining the Summit brand and A1’s product lineup into our operations, we are aiming to enhance operational efficiency, unlock revenue opportunities, and leverage industry expertise to strengthen our product development and sales strategy.”

“This collaboration is expected to allow A1 to streamline its operations while benefiting from HYTN’s manufacturing capabilities,” added Cole Miller, CEO of A1 Cannabis. “I am looking forward to contributing my experience in sales and product strategy to HYTN’s innovative beverage and Nano Shot offerings, helping to broaden their footprint in the market while also growing the existing A1 and Summit portfolio that we’ve built over the years.”

Featured image via HYTN

Simply Solventless closes on $6M financing for Delta 9 Bio Tech deal

Written by Sarah Clark on February 14, 2025. Posted in Financials.

Simply Solventless Concentrates Ltd. closed on a previously announced financing deal of $6 million, with $375,000 of the offering subscribed by insiders.

The proceeds from this non-brokered financing, which is expected to amount to $2.25 million, are expected to fund the outstanding purchase price for the Bio-Tech acquisition.

Simply Solventless has also received TSXV conditional approval for the closing of the Bio-Tech acquisition, which it says it is in a position to close imminently. The company will provide an update once a closing date has been determined.

At the end of 2024, Simply Solventless Concentrates Ltd. entered into a share purchase agreement with Delta 9 Cannabis Inc. to acquire all of Delta 9 Bio-Tech Inc.’s issued and outstanding shares.

The deal was expected to add around $12 million in revenue when it was first announced.

In January, Simply Solventless launched a non-brokered private placement financing with gross proceeds of up to $5 million. The proceeds were also expected to fund the purchase price of the previously announced acquisition of all Delta 9 Bio-Tech Inc.’s issued and outstanding shares.

In a press release at the time, SSC, which does not produce flower itself, said that the acquisition of Delta 9 will help the company continue to make inroads in the dried flower market following its recent acquisition of pre-roll manufacturer ANC Inc. for $10 million. SSC expects that the all-in cash cost to cultivate cannabis through Delta 9 will be approximately $0.60-$0.70 per gram, among the lowest for indoor cannabis in Canada.

SSC reports that Bio-Tech currently produces approximately 9,000 kilograms of cannabis per year. The cannabis processor believes that with roughly $4 million in capital investment, production could potentially increase to 15,000-18,000 kilograms per year, but this is not planned at this time.

“We would like to thank Plaza Capital and all Offering participants for their confidence in our high-impact growth strategy, which will be further fuelled by the proceeds from the Offering,” said Jeff Swainson, SSC president and CEO. “As we move forward, we are steadfastly focused on our exciting Q1 2025 product launches to support organic revenue growth, and the high grading of our pipeline of accretive acquisition opportunities.”

A court recently rejected the CRA’s concerns about Delta 9’s creditor protection case, allowing the Winnipeg company to proceed with several deals.

Simply Solventless’ portfolio includes the brands Frootyhooty, Lamplighter, Astro Lab, Roilty, Zest Cannabis, Status, and 34th Street.

The Alberta-based producer brought in net revenue of nearly $5 million in their most recent quarterly report (Q3 2024), with gross profits of almost $2 million and $424,446 in net and comprehensive income.

Organigram reports increase in revenue, losses for Q1 2025

Written by Sarah Clark on February 11, 2025. Posted in Financials.

Organigram brought in $66.8 million in gross revenue in the three months ended December 31, 2024 (Q1 2025), with net revenue of $42.7 million but still a $23 million net loss.

Net revenue increased $6.3 million for the company (17%) year-over-year, while net loss increased $7.2 million (46%). With increased sales, Organigram’s excise obligations also increased, from $19.8 million in Q1 2024 to nearly $24.1 million in Q1 2025, which was about 36% of Organigram’s gross revenue.

Organigram says its year-over-year loss increase was primarily due to a “higher fair value loss recognized in relation to top-up rights of BAT, which was partially offset by an increase in gross margin and fair value gain on other financial assets.”

The company attributed most of its 17% year-over-year increase in net revenue in Q1 2025 to an increase in recreational cannabis sales and international sales, as well as contributions from Motif sales. Organigram acquired Motif in December 2025.

The Company’s CFO says they expect even more positive news from the Motif acquisition in their Q2 2025 report later this year.

“Organigram’s year-over-year performance highlights the long-term benefits of our investments in efficiency, disciplined capital deployment, and market-leading research and innovation,” said Greg Guyatt, Organigram’s CFO.

“With one of the strongest balance sheets in the industry, we look forward to showcasing the full impact of our consolidated Organigram-Motif earnings in Q2. In addition, the anticipated $41.5 million final BAT follow-on investment tranche, which is expected to close in late February, further strengthens our balance sheet and fuels our international expansion goals.”

Organigram brought in $62.6 million in sales through recreational wholesale sales in Canada in Q1 2025, primarily to provincial boards or directly to large retailers. This was up from $54.2 million in Q1 2024.

The company’s direct-to-patient medical and medical wholesale revenue in Canada remained relatively level year-over-year, reporting just $496,000 in Q1 2025, up from $446,000 in Q1 2024.

Organigram also saw an increase in its international wholesale business, with $3.3 million in sales, up from $1 million in the three months ended December 31, 2024.

The Moncton-based producer also saw a decline in its B2B sales within Canada, from $547,000 in Q1 2024 to $346,000 in Q1 2025.

Organigram expects its supply agreement with Sanity Group, announced in June 2024, to further increase sales in Germany in 2025. The company’s international sales could also be further enhanced by its potential EU-GMP certification of Organigram’s Moncton Campus.

The company anticipates increasing its flower output by approximately 12,000 kilograms annually through expansion initiatives in fiscal 2025 and fiscal 2026 to address what it sees as a growing demand from international markets.

In addition to Germany, Organigram sells products in Australia, the UK, and Israel. The company is one of several Canadian cannabis businesses named in an Israeli investigation looking at accusations of product dumping that is expected to be resolved in 2025.

Organigram’s international expansion is also possible because of the $124.6 million follow-on funding from British American Tobacco (BAT) in early 2025. Of this, $83 million of conditional funding is earmarked for the two companies’ Jupiter Pool investment fund.

In 2021, Organigram Holdings Inc. announced a C$221 million strategic investment from a wholly-owned subsidiary of BAT. The deal has continued to evolve over the years.

Organigram operates its flagship Moncton, New Brunswick campus, its edibles facility in Winnipeg, its flower cultivation and hash production facility in Lac-Supérieur, Québec, and its London and Aylmer facilities in Ontario which it acquired in its recent Motif deal.

The Aylmer facility houses CO2 and hydrocarbon extraction capabilities and is optimized for formulation refinement and post-processing of minor cannabinoids, as well as pre-roll production. Organigram plans to upgrade the London facility for labelling, packaging, and national fulfilment.

Featured image from inside Organigram’s Moncton facility via Organigram

Cannabis caught in interprovincial barriers

Written by Jonathan Hiltz on February 11, 2025. Posted in Business, Cannabis News, Government, Insight.

If necessity is truly the mother of invention, President Trump’s ongoing melee over tariffs on Canadian goods is surely a doorway to innovation.

If nothing else, this looming financial burden for Canada has been a wake-up call for Canadians to realize that we can’t depend on over 70 percent of our exports being shipped to one country, no matter who it is. Doing so is a foolish exercise in dependency and sets the Great White North up to be beholden to a trading partner with a strong hand in determining our destiny.

So, as the initial shockwave clears and Canadian officials scramble to rebound from this weak negotiating position, many ideas have been floated to make trade more diverse. These include reaching out to countries in Europe and elsewhere and a renewed push to eliminate interprovincial trade barriers in order to expand domestic revenue.

This is because while Canada is a sovereign nation, many Canadians do not realize the incredible level of trade restrictions that exist from province to province, choking domestic trade and limiting the revenue Canada can make within its borders.

“We’re a giant country, but we forget that within that country there are a whole bunch of borders,”
Jonathan Wilson, CEO of Crystal Cure

While the threat of tariffs on goods entering the U.S. does not have a direct impact on the Canadian cannabis industry for obvious reasons, knocking down interprovincial trade barriers could be a fantastic and welcome opportunity for the sector and this has not gone unnoticed.

“This is something I’ve been discussing for a long time, from my previous experience in beverage alcohol in the Nova Scotian wine industry,” said Jonathan Wilson, CEO of Crystal Cure.

“We’re a giant country, but we forget that within that country there are a whole bunch of borders,” he said. Wilson added that in his experience, there are various instances where it can be easier to get products from international sources rather than from a different province—something that many sectors and companies have agreed with.

“Since confederation, all the provinces and territories have had their own governance [on trade], their own setup, and some are more protective than others. Now you see over 150 years later what it’s done. It’s caused a bunch of bureaucracy and red tape.”

Wilson went on to say that because of this, it has always been the norm for provinces to protect their borders by keeping a very watchful eye on what they deem ok to enter and exit in terms of goods and services.

“Let me sell to any retailer I want to, anywhere in Canada. I’ve got retailers in Ontario that would love to carry my product, but I can’t jump through their hurdles to supply six retailers, but I could do it if they weren’t in the way.”
Gord Nichol, North 40 Cannabis

Deja vu all over again

Reducing or eliminating Canadian trade barriers is not a new topic of discussion. In April 2017, provincial and territorial governments signed the Canadian Free Trade Agreement (CFTA), designed to open up trade restrictions and create more domestic revenue. While it was a step in the right direction, almost half of the 345-page agreement was filled with exceptions and opt-out measures.

At the time, a report released by the Senate, Tear Down These Walls: Dismantling Canada’s Internal Trade Barriers, showed that provincial trade restrictions were costing Canada as much as $130 billion per year. These restrictions included everything from truck tires to alcohol to carbon emissions to many other goods and services.

In 2018, the conversation continued again, sparked by a court case in which a New Brunswick resident named Gerard Comeau went to Quebec to buy alcohol and was fined $240 plus fees when he returned to his province. Comeau fought the fine, and the case eventually went all the way to the Supreme Court, which upheld the existing laws. Nevertheless, the superfluous nature of the restrictions was on full display for the country to see.

Then, as recently as 2023, a report by the Montreal Economic Institute said that interprovincial trade restrictions were costing Canada an added 7% country-wide on goods and services. The report advocated for the removal of these barriers.

How would eliminating trade restrictions help cannabis?

“The first group it would help is the smaller companies, the micro and craft producers: the ones that don’t have the infrastructure, size, or cash flow to get into OCS, BCLDB, any of them,” said Wilson. He added that it would allow for direct sales to consumers, increased competition across the country, which would improve product offerings, and more unique products would see the light of day from coast to coast.

Gord Nichol, the owner of North 40 Cannabis, a micro-cultivator and processor in Saskatchewan, would also agree. He has demand in other provinces but the process of getting approved by the boards in those provinces can be a real challenge.

“A very good example is that multiple retailers in BC have been requesting my product and have been rejected by the board because they prefer to support BC cannabis, which is exactly what we’re talking about, interprovincial trade barriers,” said Nichol.

He went on to say that there are barriers to entry to every province that has a regulatory board and acts as provincial gatekeepers. If Canada could drop all of that, Nichol feels he could sell his entire inventory.

“Let me sell to any retailer I want to, anywhere in Canada. I’ve got retailers in Ontario that would love to carry my product, but I can’t jump through their hurdles to supply six retailers, but I could do it if they weren’t in the way.”

The move would also undoubtedly assist in eliminating the illicit market, which pays no attention to trade restrictions, said Wilson.

“[Provinces] hold on to their monopolies and protect their borders thinking that they don’t want to give up any revenue from controlling liquor, cannabis, whatever, but there’s a tremendous amount of opportunity to not only make sales tax, but revenue from whatever they are sending out. The pie can actually be grown.”

Wilson went on to say that for any of this to happen, at least in the cannabis sector, it starts with the federal government as it created the Cannabis Act. Then, they’d have to get the provinces and territories on board, which has been the hardest part. Tweaks can be made to the existing systems, but for any real change, Canada needs to rethink the idea of provincial and territorial monopolies and realize that there are other, more profitable ways to do things.

Most recently, President Trump continued his warpath on trade with Canada by announcing a 25% tariff on Canadian steel and aluminum, a further wrinkle in the uncomfortable conversation Canada is having with its largest trading partner. Having said that, the upside of this whole scenario is that it has started a deluge of discussion to once again consider removing domestic trade barriers—an idea that seems more and more blatantly obvious as the days go on and the trade threats continue.

Whether or not the cannabis sector will witness any positive side effects from these discussions and implementations remains to be seen, but making it easier for Canadians to get their hands on domestic products and services, especially at a time when Canadian trade is being threatened, seems more important than ever before.

Increase in medical sales helps offset declines for Canopy in Q3 2025

Written by Sarah Clark on February 7, 2025. Posted in Financials.

Canopy Growth Corporation reported net revenue of $74.8 million for the three months ended December 31, 2024 (Q3 2025) and a net loss of $121.9 million.

Most of the company’s net revenue came from the Canadian market, with nearly $21.2 million from adult-use sales and almost $19.6 million from medical cannabis sales. International medical cannabis sales accounted for another $12 million, while Storz & Bickel brought in $22 million.

Broken down by country, all revenue from Canada was $40.7 million, while Germany was $17.7 million, the US was $11.6 million, and all other regions were a combined $4.7 million.

Canadian adult-use sales were down year-over-year, compared to nearly $23.5 million in Q3 2024. This amount was more than made up for by increased medical cannabis sales from nearly $16.9 million in Q3 2024.

International medical cannabis sales were also up year over year from $10.5 million in the three months ended December 31, 2023, and Storz & Bickel sales were up from $18.5 million. However, there was no revenue from their skincare company, This Works, in the third quarter of fiscal 2025, compared to $8.2 million in the third quarter of fiscal 2024. This was due to the completion of the divestiture of This Works on December 18, 2023.

Canopy’s international market net revenue increased 14% year over year, with strong growth in Poland and Germany. This growth was partially offset by a decline in Australian medical cannabis sales and the exit of US CBD sales earlier this fiscal year.

The 19% growth in Storz & Bickel was attributed to strong holiday purchases, robust direct-to-consumer online sales, and continued growth in Germany, the US, and the United Kingdom, and sales of the Venty portable vaporizer.

Canopy’s income tax expense in Q3 2025 was $316,000, compared to an income tax recovery of nearly $1.1 million in Q3 2024.

“Canopy Growth’s third quarter highlights that our business has the right ingredients for success, as demonstrated by the continued momentum in our medical cannabis businesses, Storz & Bickel, and the successful introduction of Claybourne infused pre-rolls in Canada,” said Luc Mongeau, who took over as CEO effective January 6, 2025. “As I step into my role as Chief Executive Officer, I am focused on achieving sustainable profitability while maximizing our ability to create value in the key markets and segments we serve.”

Canopy Growth Corporation reported nearly $74 million in revenue in its second fiscal quarter of 2025, but a net loss of $128.3 million.

Aurora Cannabis reports record-breaking quarter, continued increases in international market

Written by Sarah Clark on February 5, 2025. Posted in Financials.

Aurora Cannabis reported nearly $100 million in revenue for the three months ended December 31, 2024 (Q3 2025), $88.2 million in net revenue, and $31.3 million in net income, a new high for the company.

The company saw a 37% year-over-year increase in net revenue compared to Q3 2024, which it attributes to 51% growth in its global medical cannabis business and 22% growth in its plant propagation business. The increase was somewhat offset by lower quarterly revenue in Aurora’s consumer cannabis business.

Aurora primarily produces and sells in Canada’s medical and non-medical markets. It also has production and distribution of wholesale medical cannabis in the European Union under the German Medicinal Products Act and German Narcotic Drugs Act, and distribution of wholesale medical cannabis in various international markets, including Australia, New Zealand, the Caribbean, South America, and Israel.

The company’s plant propagation business is its 50.1% controlling interest in Bevo Agtech Inc., the sole parent of Bevo Farms Ltd., a key supplier of propagated vegetables and ornamental plants in North America.

The company’s principal subsidiaries are Aurora Cannabis Enterprises, TerraFarma Inc., Whistler Medical Marijuana Corporation, CannaHealth Therapeutics Inc., ACB Captive Insurance Company Inc., Bevo Agtech Inc, Aurora Deutschland, and Indica Industries Pty Ltd. (MedReleaf Australia).

Aurora’s revenue for the three months ended December 31, 2024, was as follows: In the Canadian market, Aurora brought in $44.1 million, with $27.3 from medical sales and $9.9 million in non-medical. Another $1.2 million was from wholesale bulk cannabis sales, and $5.6 million from plant propagation (Bevo).

The company also made $14.5 million in sales from the Australian market and $26.3 million from the EU market, both of which are medical-cannabis only. Aurora also made nearly $3.3 million in plant propagation sales in the US.

Aurora’s most significant jump in sales, compared to the same three-month period in the previous year, occurred in the EU where sales more than doubled from $10.1 million in Q3 2024 to $26.3 million in Q3 2025.

Medical cannabis net revenue was $68.1 million, a 51% increase from the same quarter in the previous year, accounting for 77% of Aurora’s Q3 2025 consolidated net revenue and 90% of adjusted gross profit before fair value adjustments.

The company attributes its $23.1 million increase in net revenue primarily to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada from insurance-covered and self-paying patients.

The company incurred nearly $7.8 million in excise taxes in Q3 2024, down from nearly $8.2 million in Q3 2024, likely due to the increased proportion of international sales.

“This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue, net income, adjusted EBITDA, and free cash flow,” said Miguel Martin, executive chairman and CEO for Aurora Cannabis. “These achievements, along with our strong cash position and debt-free cannabis business, underscore Aurora’s leadership in the global cannabis industry as we continue to set ourselves apart from our peers.

“Our strong top-line performance and record adjusted EBITDA were mostly fueled by contributions from our global medical cannabis business,” he added. “International net revenue grew 112% and accounted for 60% of global medical cannabis net revenue. Additionally, our plant propagation segment increased 22%, driven by organic expansion and an enhanced product portfolio, further strengthening our operating model. Our stated goals of continued strategic growth, operational excellence, and long-term sustained profitability are unwavering and we are deeply appreciative of our team’s efforts in helping us achieve these milestones.”

Canada’s legal cannabis industry contributed nearly $7B to GDP

Written by Staff on February 4, 2025. Posted in Business, Cannabis News, Government, Producers, Retail.

Canada’s legal cannabis industry contributed nearly $7.7 billion to Canada’s GDP in 2023, according to the most recent figures from Statistics Canada.

The majority of this was cannabis production, at nearly $6.8 billion, while retail added almost $900 million on top of that.

That number grew in the first four years of legalization but declined somewhat in 2023. In 2022, the legal cannabis market contributed just over $7 billion to Canada’s GDP.

The illicit cannabis market added another nearly $2.7 billion to Canada’s GDP in 2023, with another $892 million from illicit cannabis retailers, both online and brick-and-mortar.

In comparison, legal cannabis’ contribution to Canada’s GDP surpassed that of breweries, wineries, and distilleries. In 2023, breweries contributed just over $3 billion to Canada’s GDP, while wineries and distilleries contributed just over $1 billion. Legal cannabis stores alone contributed nearly as much to the GDP in 2023 as wineries and distilleries combined.

Licensed cannabis production’s contribution to Canada’s GDP surpassed that of gold and silver ore mining, local credit unions, furniture and related product manufacturing, the postal service, gambling industries, potash mining, dairy product manufacturing, coal mining, radio and television broadcasting, electronics and appliance stores, grain and oilseed milling, fishing, hunting and trapping, and ship and boat building, just to name a few.

Wholesale flower prices expected to continue to rebound in 2025, domestic market will continue to slow

Written by David Brown on January 31, 2025. Posted in Business, Cannabis News, Products.

Tightened domestic supply and approved canopy, a growing export market, and greater demand for premium, hand-trimmed and craft products are continuing to drive wholesale cannabis prices up. This is according to the newest annual report from the Global Cannabis Exchange Ltd. and the Canadian Cannabis Exchange Ltd.

The Bulk Wholesale Cannabis and Distillate Pricing Report provides an overview of the 2024 market and looks ahead at what 2025 holds.

According to the report, the average wholesale price of cannabis flower increased from $1.07 per gram in 2023 to $1.28 in 2024. The Canadian Cannabis Exchange projects that it will continue to rise to around $1.61 a gram in 2025, on average.

The quality of the product also weighed significantly on the price, with hand-trimmed flower trading at an average price of $1.39/gram in 2024, 31.1% higher than the $1.06/gram average price for machine-trimmed flower. Higher THC levels also tend to command a higher price, as expected.

The price of trim also nearly doubled in 2024, trading at a weighted average price of $0.11/gram, compared to the 2023 average of $0.06/gram.

While producers in Ontario continue to dominate supply, their share of the volume of cannabis flower traded on the exchange has declined from a 69.7% market share in 2022 to 33.3% in 2024.

At the same time, Quebec’s market share increased from 10.5% in 2022 to 34.9% in 2024, while Alberta increased from 4% in 2022 to 16.5% in 2024, and BC increased from 5.2% in 2022 to 7.8% in 2024. The rest of the Canadian provinces combined saw a decline from 10.6% market share in 2022 to 7.6% in 2024.

The age of cannabis being traded on the exchange has also been steadily declining, with cannabis harvested less than six months prior making up the biggest share of the market by the end of 2024. Price volatility also calmed down in 2024 compared to 2023.

For whole cannabis extracts and concentrates, the price of a kilogram of CBD isolate listed on the exchange in 2024 was $18,000, while CBG isolate was $6,633, CBN isolate was $7,380, and THCV distillate was $14,000.

THC distillate ranged from $1,000 to $2,800, while CBD distillate ranged from $675 a kilogram to $1,800. Wholesale THC distillate prices declined somewhat in 2024 from the previous year, as did THCa Isolate and CBD isolate.

THC and terpene inflation continues

The average reported THC and terpene levels of cannabis traded on the exchange have risen from 22.42% THC and 2.29% terpenes in 2022 to 25.92% THC and 2.75% terpenes in 2024.

Cannabis exports

While Canada has dominated the export market for several years, the report also cautions that products from countries like Thailand and South Africa will continue to gain a foothold in 2025, bringing more competition to the international cannabis market.

Focusing on quality and consistency can help Canadian companies maintain their market share. However, the possibility of a weakening Canadian dollar and other international economic factors, especially the threat of US tariffs, can also impact Canada’s cannabis export market.

According to the Canadian government, exports of cannabis for medical purposes continued to show significant increases. There were 67,475.28 kilograms of dried cannabis exported to the international market in the first six months of 2024 and 79,279.75 kilograms exported in 2023.

Editor’s Note: The export above figures have been corrected to reflect the information in the above citation.

Australia received the most—3,512.5 kilograms, a 5% year-over-year increase. Germany was second with 1,546.2 kg, down by 27% year-over-year. Czechia was third, receiving 1,151.3 kg, followed by Israel with 1,085.3 kg, Portugal with 960.5 kg, the Netherlands with 154.6 kg, and the UK with 145.8 kg.

While the report predicts exports will continue to increase in 2025, it also notes declining domestic sales, a trend StratCann has been following. This trend is expected to continue in 2025 as overall consumer spending in Canada is expected to decline.

The full report can be viewed here.

About GCX: The Global Cannabis Exchange Ltd. (GCX) and its subsidiaries—Canadian Cannabis Exchange Ltd. (CCX), American Cannabis Exchange Inc. (ACX), and Loud Lion Supply Ltd.—have been providing integrated wholesale brokerage and exchange services to the legal global cannabis industry since 2020.

GCX and CCX operate a live, transparent trading platform where all bids, offers, and trades are executed. This ensures members receive timely, accurate, and equitable access to market price information.

With a network of over 700 counterparties, GCX and CCX are uniquely positioned to deliver impartial, aggregated market data and insights, empowering buyers and sellers to make informed trading decisions. Market participation is governed by the standardized GCX and CCX Client Agreement, which outlines the rules for access, engagement, and transactions. These standardized rules streamline purchasing and sales processes for market participants.

Wholesale cannabis sales in BC remain relatively stable in Q3 2024, direct delivery sales rebound

Written by David Brown on January 30, 2025. Posted in British Columbia, Business, Cannabis News.

Wholesale cannabis sales in BC in the last three months of 2024 (Q3 2024) were $146.9 million, up 7.5% from the same period in 2023, but down slightly from the previous quarter ($147.2).

The province wholesaled 38,727,543 grams of cannabis in October, November, and December 2024. The average price of all cannabis products continued to decline to $3.79 per gram, while the average price of dried flower also reached its lowest yet at $3.14 a gram.

At the end of the reporting period, there were 512 retail cannabis stores in BC, up from 510 in the previous quarter and 496 in Q3 2023.

Sales of 1, 3.5, and 14/15 gram SKUs declined year-over-year by 8.4%, 24.3%, and 0.9%, respectively, while sales of 7-gram SKUs increased by 26% and 28-gram SKUs increased by 7.2%.

The total grams sold for 1-gram and 3.5-gram SKUs declined by 9.6% and 19.8%, respectively. However, the total grams sold for 7-gram SKUs increased by 33.4%, while 14/15-gram SKUs increased by 6.8%, and 28-gram SKUs increased by 8.3%.

Inhalable extracts sales were $55.4 million, cannabis flower was $44.2 million, and pre-rolls were $31.9 million.

Edibles sales totalled $7.8 million, while ingestible extracts (capsules and oils) were $4.2 million, and beverages were $2.7 million.

Topicals sales were $751,403, and seeds were just $5,600.

Inhalable extract sales increased by 15.7% year-over-year, and units sold increased by 13.8%. Dried flower sales increased by just 0.8%, while units sold decreased by 1.7%.

Beverage sales increased year-over-year by 18.5% and 12% by units sold, while pre-rolls sales increased by 8.2% and units sold increased by 9%.

Edibles sales increased year-over-year by 2.1%, while units sold increased by 18.9%.

Disposable vape pen sales increased by a whopping 193.9% year-over-year and 92.6% in terms of units sold (258,418 units sold), continuing an ongoing trend. Sales of infused pre-rolls increased by 19.3%.

Sales in BC’s direct delivery program, which allows some BC cannabis companies to ship directly to retailers, bypassing the provincial central warehouse, showed quarterly increases following several previous declines.

While the total grams sold of cannabis (including equivalence) through the program were down 21.1% year-over-year at 554,102 grams, this figure was up from the 484,000 grams sold in the previous quarter, reversing an earlier trend.

Similarly, wholesale sales through the direct delivery program were down 19.8% year-over-year to $2.5 million, up from the $2.3 million sold in the previous quarter.

The average price of cannabis sold in the program was $4.58, up from $4.51 in Q3 2023, but down from $4.79 in the previous quarter.

The average price of dried flower in direct delivery was $3.91, down from $3.93 in the same quarter last year, but down from $4.34 in the previous quarter of 2024.

Sales of cannabis edibles and beverages were $57,047 in Q3 2024, up from $47,831 in Q2 and $16,169 in Q3 2023.

Sales of cannabis flower were $1.20 million, down from $1.24 in the previous quarter and $1.9 million in the same quarter last year.

Ingestible extracts sales in terms of dollars sold increased by 20.9% year-over-year, inhalable extracts increased by 89.9%, pre-rolls declined by 38%, seeds declined by 67.4%, and topicals increased by 94.5%.

New Brunswick reports $25 million in cannabis sales in final three months of 2024

Written by Staff on January 29, 2025. Posted in Cannabis News, Financials, Other.

Cannabis sales in New Brunswick were $25.4 million in the three months ended December 29, 2024 (Q3 2024).

Sales in New Brunswick were up 6.3% year-over-year but declined from the $27 million worth of cannabis sold in the three months ended September 29, 2024.

Cannabis NB reported 398,000 transactions in the most recent quarter, with an average ticket size of $59.91. This is a year-over-year increase from more than 382 thousand transactions, but a decline in an average ticket size from $62.37.

The provincial agency reported $11.9 million gross profit for the final three months of 2024, a 0.6% increase from the same period in 2023, and a net income of $5.7 million, a 5.7% decline from Q3 2023.

Gross profit does not account for expenses beyond the cost of goods sold, while net income accounts for all expenses incurred, such as salaries, depreciation, and rent.

Dried flower sales were $12.6 million, or 49.5% of total sales, while concentrates and extracts were $9.2 million (36.6%), and edibles were $1.9 million (7.4% of sales).

Accessories were $800,000 (3.1%), while infused beverages were $700,000 (2.6%), and topicals were $200,000 (0.8%).

A recent annual report from Cannabis NB shows that while dried cannabis flower continues to be the majority of sales, its market share, like in many other provincial markets, is shrinking as concentrates sales increase. New Brunswickers prefer more “convenient” cannabis products as the market continues to shift to products like vape pens, concentrates, and pre-rolls, especially infused pre-rolls, notes the report.

Cannabis NB recently announced an RFQ for four more private cannabis stores in the province. These will join the nine already licensed, and the tenth store is expected to be licensed soon.

The provincial government’s goal in adding private stores was to bring cannabis to smaller, underserved communities. The province currently operates 27 public Cannabis NB stores, nine privately run cannabis stores, and seven cannabis farmgate stores.

Cannabis NB also licensed its newest cannabis FarmGate partner, Pinnacle Farms, in the previous quarter. The Cannabis NB FarmGate program allows licensed New Brunswick cannabis producers to sell their own products onsite at their facilities.

High Tide reports record revenue in 2024 and declining losses

Written by Sarah Clark on January 29, 2025. Posted in Financials.

High Tide Inc. reported $522.3 million in revenue for the year ending October 31, 2024, gross profits of $142.5 million, and a net loss of $3.8 million.

Revenue was up 7% year-over-year for the parent company of the Canna Cabana retail chain, representing a new annual record, while gross profit saw an annual increase of 9%.

Although the company generated a net loss of $3.8 million in fiscal 2024, this was a significant decrease from the previous year’s net loss of $41 million. When adjusted for non-cash impairment charges, High Tide says its net income was $1.2 million for the year ended October 31, 2024, compared to a net loss of $6.7 million in the previous year.

In addition to Canna Cabana Inc., High Tide’s subsidiaries include companies like Canadian vape and bong supplier Valiant Distribution Canada Inc., Grasscity, META Growth Corp., Jimmy’s Cannabis Shop in BC, and the Queen of Bud brand, among many others.

On January 13, 2025, High Tide also entered into an agreement to acquire a 51% ownership interest in Purecan GMbH, a pharmaceutical wholesaler based in Germany. This will give the Canadian company a foothold in the EU’s largest cannabis market and hub.

“We are strategically leveraging our robust retail ecosystem, complemented by our strong partnerships with licensed producers, to address the growing demand for medical cannabis in Germany,” said Raj Grover, founder and CEO of High Tide. “Through our announced acquisition of Purecan, which includes its German import license and wholesale warehousing capabilities, we are diversifying our revenue streams to fuel future growth.”

“With the addition of 30 new stores and millions of new Cabana Club members joining our community, fiscal 2024 has been yet another exceptional year for High Tide’s growth and momentum,” added Grover, who noted that the company was reporting the highest cannabis revenue among all Canadian-based companies.

He also pointed out that on December 2nd, High Tide marked the international debut of its Cabana Club membership program, expanding into markets outside of Canada.

“Our membership base now includes an impressive 5.32 million members, including over 76,000 ELITE members. We are witnessing an accelerating rate of growth in our membership program, which continues to enhance our ability to connect with and serve our customers. In fiscal 2024, our Canna Cabana bricks-and-mortar stores once again outperformed the market in every province where we operate.”

Although High Tide makes up just 5% of the cannabis retail locations in those provinces, Grover points out that Canna Cabana stores captured 11% of the associated market share in dollars.

Of the $522.3 million in revenue for fiscal 2024, $484.4 million was from High Tide’s brick-and-mortar holdings in Canada, primarily from the sale of cannabis and CBD products, but with $12.8 million from its consumption accessories and $36 million from its data analytics service, advertising, as well as other revenue sources. The data revenue program is called the Cabanalytics Business Data and Insights Platform.

Another $36.1 million came from High Tide’s e-commerce sales in the US, and another $1.8 million from e-commerce sales in other international markets. International e-commerce sales generated another $17.2 million in cannabis sales, $20 million in online accessories sales, and $675,000 from its data analytics service, advertising, and other e-commerce revenue sources.

The Cabanalytics data platform has seen several years of increases. It generated $12.2 million for the year ended October 31, 2021, $21.7 million in 2022, and $26.3 million in 2023. For the most recent year ending October 31, 2024, High Tide recognized $36 million in revenue from its proprietary data analytics service.

Court rejects CRA’s concerns in Delta 9 application

Written by David Brown on January 29, 2025. Posted in Financials.

A Justice of the Court of Alberta has approved Manitoba-based cannabis company Delta 9’s sanction order and stay extension, SAVO, and ARVO, while rejecting the Canada Revenue Agency’s recent objections to parts of the deal.

The deal includes Delta 9, Fika, SNDL, and Simply Solventless and allows Delta 9 to move closer to closing the book on an extensive process.

The sanction order and stay extension extended the stay until February 28, 2025. This stay of proceedings has been extended on several occasions, starting on September 11, 2024, when the court granted an order that extended the stay period under the ARIO to November 1, 2024. This also approved an amendment to the interim financing terms sheet between the Delta 9 group and Fika. The ARIO approved, among other things, the appointment of a Chief Restructuring Officer, with Delta 9 group borrowing funds from 2759054 Ontario Inc., operating as Fika Herbal Goods.

The judge found that an extension was required to allow for implementing the plan and determining its financial dispute with SNDL Inc.

The application for a Sale Approval and Vesting Order (SAVO) and an Approval and Reverse Vesting Order (ARVO) involved the sale and vesting of certain assets to a numbered company, 6599362 Canada Ltd, the owner of the lands and building known municipally as Building E located on 760 Pandora Ave. East, Winnipeg, Manitoba.

This includes the 95,000-square-foot cannabis cultivation and processing facility in Winnipeg, Manitoba, known as the Bio-Tech Facility. The deal included an amendment to give the Manitoba Ministry of the Environment and Climate Change the right to file a comeback application to vary the terms of the SAVO in respect of any potential environmental remediation obligations.

It also included a December 28, 2024, share purchase agreement (SPA) between Delta 9 Parent, Bio-Tech, and Simply Solventless Concentrates Ltd (SSCL) by which the Delta 9 parent company would sell its shares of Bio-Tech to SSCL as required by the reverse vesting order (RVO) structure.

The Canada Revenue Agency (CRA) recently requested that the stay against Delta Bio-Tech Inc. be lifted to the extent necessary to allow it to assess Delta-9’s CEO, John Arbuthnot, and the company’s other directors for unremitted excise duties before Delta 9’s liability for them is transferred to a new company, ResidualCo.

“CRA chose to wait and see ‘how the CCAA process unfolded.’ It never questioned Arbuthnot on any of his affidavits. CRA allowed significant effort and resources to be expended or invested, while awaiting the outcome of the Bio-Tech SISP process, without apparently making it known to all stakeholders that it might object to a director’s release if CRA was later of the view the director obtained an unjustified personal benefit out of the restructuring process.”
Michael A. Marion, Justice of the Court of Queen’s Bench of Alberta

The Justice of the Court, Michael A. Marion, said the CRA submitted its objections too late, and lifting the stay against Delta 9 would negatively harm the associated deals the company is making to address the dire financial situation that led to its filing for creditor protection in July 2024, and also entering into an agreement with FIKA. This was in response to an “aggressive” move by Delta 9’s largest creditor, SNDL Inc, in May 2024.

The judge wrote that the CRA’s request would put all of these deals at risk, further jeopardizing its ability to recoup any of the excise tax it is due.

“While it is true that Delta 9 misused funds owed to CRA for other purposes,” writes the judge, “it appears to have been to attempt to maintain the business as a going concern during tumultuous times in a new industry. This is not an excuse but is a relevant factor, particularly given that the Arrears appear to have accumulated over an extended period and CRA did not strictly enforce its rights.

“In the CCAA proceedings, CRA waited to see how things unfolded, including whether the Bio-Tech SISP process might garner a qualifying bid that would generate CRA better recovery. Then, at the last possible moment, CRA asked the Court to reject the Bio-Tech directors’ release and lift the Stay in its favour without a filed application or supporting evidence. CRA has not proven, on this record, that Arbuthnot or former directors did not act in good faith…The evidence and arguments from other Hearing participants, including the Monitor as court officer, suggests Arbuthnot has been acting in good faith.”

This article included significant input from Sarah Clark

Nextleaf reports increased revenue, losses in 2024

Written by Sarah Clark on January 29, 2025. Posted in Financials.

Nextleaf Solutions Ltd. reported gross profit of $3.7 million from gross revenue of nearly $16.6 million for the twelve months ended September 30, 2024, but a $1.4 million loss.

While revenue was up considerably from the previous fiscal year’s nearly $10 million, and gross profit was up year-over-year from $2.3 million at the end of fiscal 2023, the companies’ losses were up significantly, on a year-over-year basis from income of $223,334 at the end of fiscal 2023.

Operating costs were also up significantly from the previous fiscal year, from nearly $2.3 million at the end of September 2023 to almost $5.3 million at the end of September 2024, due to what the company says was increased marketing and distribution costs associated with ongoing market expansion.

The company also reported gross revenue of $3.8 million in Q4 2024, a 16% year-over-year increase but a 5% decline from Q3 2024, which it says is consistent with “typical seasonal fluctuations observed in the industry during late summer.”

The BC-cased company’s $16.6 million in revenue in fiscal 2024 came from sales of its bulk distillate, branded extract products, and private label products. Sales of bulk distillate were nearly $1.5 million, down from nearly $2 million at the end of fiscal 2023. Wholesale revenue from its branded extract products was $13.4 million, up from $6.1 million in the previous year. Private label revenue was $1.6 million, down from $1.8 million in 2023.

The majority of the company’s sales ($9.4 million) were in BC, while $7.1 million were in the rest of Canada. Nextleaf reached 44 new listings across BC, AB, and ON in fiscal 2024.

The company sells its branded cannabinoid vapes, oils, and softgels in BC, Ontario, Nova Scotia, Manitoba, and Saskatchewan. It is also expanding its distribution in the prairie provinces by integrating additional partners to service Saskatchewan-based retailers. Lineage Distribution, currently servicing Nextleaf in Manitoba and “the northern Provinces” will also expand its existing distribution network in Saskatchewan.

Of the last eight fiscal quarters, Nextleaf has reported three profitable quarters for a total of $940,336 and five losses, for a combined amount of $2.2 million, or a total loss of $1.2 million from December 31, 2022, through September 30, 2024.

“This was a year of executing on the fundamentals,” said Emma Andrews, CEO. “We’ve been rapidly scaling up our manufacturing operations and inventory to support advancement of our commercial strategy and keep up with consumer demand. Despite the economic environment, we invested in our team and delivered increased sales. We’ve delivered continual innovation to maintain relevance in the market. We deepened relationships with retail partners and commercial partners alike, powering the industry with competitively priced products and ingredients, and delivering uncompromising quality.”

In Q4 2024, Nextleaf reported $3.8 million in revenue, a gross profit of $946,000, and a loss of $240,000. For the previous quarter, which ended June 30, 2024, the company reported over $4 million in revenue, a gross profit of $884,344, and a loss of $317,264.

In a recent interview, Andrews said she is preparing for a three to five-year delay following the upcoming election before the industry can expect to see changes to the big-ticket items it has focused on over the years. These include excise tax reforms or changing the THC potency limits, such as the 10mg THC limit for edibles.

Simply Solventless announced $5 million convertible debenture financing for Delta 9 deal

Written by Sarah Clark on January 28, 2025. Posted in Financials.

Simply Solventless Concentrates Ltd. has launched a non-brokered private placement financing for gross proceeds of up to $5 million. The proceeds are expected to fund the purchase price of the previously announced acquisition of all Delta 9 Bio-Tech Inc.’s issued and outstanding shares.

The private placement is planned to come from the financing of up to 5,000 secured convertible debenture units at $1,000 per debenture unit. It includes a $3 million lead order from institutional investor Plaza Capital.

However, no binding definitive agreement has been entered into regarding the financing, and there is no guarantee that it will be completed on the disclosed terms or at all.

At the end of 2024, Simply Solventless Concentrates Ltd. entered into a share purchase agreement with Delta 9 Cannabis Inc. to acquire all of Delta 9 Bio-Tech Inc.’s issued and outstanding shares.

When it was first announced, the deal was expected to add around $12 million in revenue.

The acquisition of all the issued and outstanding shares of Delta 9 Bio-Tech Inc. is anticipated to close in early February. Simply Solventless Concentrates (SSC) also announced what they said was record expected monthly revenue in January 2025 of approximately $4.5 million. This did not include revenue from Delta 9 Bio-Tech.

SSC, which does not produce flower itself, says that the acquisition of Delta 9 will help the company continue to make inroads in the dried flower market following its recent acquisition of pre-roll manufacturer ANC Inc. for $10 million. SSC expects that the all-in cash cost to cultivate cannabis through Delta 9 will be approximately $0.60-$0.70 per gram, among the lowest for indoor cannabis in Canada.

“It was important to fund the Bio-Tech acquisition in a manner that limited dilution such that we could maximize earnings per share,” said SSC president & CEO Jeff Swainson. “This financing is expected to accomplish that goal, with a $1.00/share conversion price and a $1.20/share warrant exercise price, reflecting 30% and 56% premiums to SSC’s ten-day volume weighted average price, respectively.

“These premiums are indicative of the confidence that high-quality institutional investors such as Plaza Capital have in SSC’s equity value, and such confidence will be a core facilitator of continued explosive growth for SSC,” Swainson added. “SSC continues to post monthly record revenue due to both organic growth and acquisitions, and SSC’s near-term product launches are a testament to SSC’s vigilant focus on providing a suite of cannabis products that are among the highest quality available in Canada today.”

Each Debenture Unit consists of one $1,000 principal value convertible debenture of SSC and 1,000 common share purchase warrants of SSC. The units mature 48 months from the date of issuance and have an interest rate of 11% per annum. They are payable quarterly in cash or in SSC common shares at the conversion price, at the option of each holder.

The Debentures are convertible into SSC common shares at $1.00 per SSC common share, representing a 30% premium to SSC’s 10-day VWAP trading price of $0.77, at any time during the term of the debentures at the option of each holder.

Each debenture will be secured by all of SSC’s property, both currently owned and expected to be acquired. This will be evidenced by a general security agreement and a pledge of shares of SSC’s subsidiaries.

At maturity, the principal amount outstanding on the debentures will be repaid by SSC in cash. SSC will have a right to prepay or redeem a part of the entire principal amount of the Debentures at any time prior to maturity by providing a minimum of 10 days’ notice.

Each warrant is exercisable into one SSC common share at $1.20 per common share for a period of four years from the date of issuance. If the maximum financing is completed, a total of 5,000,000 Warrants will be issued. The warrant exercise price of $1.20 per common share represents a 56% premium to SSC’s 10-day VWAP trading price of $0.77.

SSC also announced the launch of 25 new products in the recreational markets of Alberta and Ontario under its existing brands, Astrolab, Frootyhooty, Lamplighter, and Zest.

SSC reports that Bio-Tech currently produces approximately 9,000 kilograms of cannabis per year. The cannabis processor believes that with roughly $4 million in capital investment, production could potentially increase to 15,000-18,000 kilograms per year, but this is not planned at this time.

As Bio-Tech is being acquired through CCAA proceedings, SSC also says it assumes no debt or liabilities from the acquisition and believes that Bio-Tech will contribute meaningfully to further expanded revenue and adjusted EBITDA in Q1 2025. SSC will provide Q1 2025 guidance in the weeks after the closing of the acquisition.

Cannara Biotech reports record Q1 2025 revenue

Written by Sarah Clark on January 27, 2025. Posted in Financials.

Cannara Biotech reported net revenue of $25.1 million in the three months ended November 30, 2024 (Q1 2025), and net income of $2.3 million.

The majority of Cannara’s net revenue, $24 million, came from its cannabis operation, while $954,118 came from its real estate operations. Revenue from sales of cannabis goods was $34.9 million, minus $10.9 million in excise.

This was up from $29.3 million in sales revenue and $18.5 million in net revenue from cannabis sales in the same quarter in the previous year (Q1 2024). Net income on Cannara’s cannabis sales before income taxes in Q1 2025 was $4 million, up from $3.3 million in Q1 2024.

Cannara reported $34.1 million in revenue from sales into Canadian retailer stores, $739,692 from wholesale sales, and $57,301 from online merchandise. While Cannara reported $243,347 in revenue from wholesale sales into Israel in Q1 2024, the company reported none in Q1 2025. In the previous quarter, Cannara noted that it had completed sales of cannabis to Israel.

Total revenues, net of excise taxes, also increased by 7% quarter-over-quarter, from $23.4 million in Q4 2024 ($22.1 million in net revenue from its cannabis operations) to $25.1 million in Q1 2025.

The company expects to launch more than 20 products in new and existing cannabis segments in 2025, including the new all-in-one vape devices under its Tribal and Nugz brands and new flavours for Tribals’ infused Trifecta pre-rolls.

Cannabis sales in the most recent quarter increased Cannara’s Canadian market share to 4.1%, representing a 28% quarter-over-quarter increase, and a 58% increase over the same period last year. Gains were made across all licensed provinces.

“Net revenues grew by 29% to $25.1 million compared to Q1 2024, marking the highest quarterly revenue in our history,” stated Zohar Krivorot, President & Chief Executive Officer of Cannara. “During the quarter, we achieved record market share, increasing our Canadian market share by 28% to 4.1%, with notable gains across all provinces where we are licensed to sell. These results highlight the growing adoption of our premium-grade cannabis products and the strong execution of our sales and marketing strategies.”

Kriviot says the company also plans to increase its facility’s capacity by 6,000 kg per year and introduce over 20 products in existing and previously unmet product segments.

Cannara Biotech Inc. is headquartered in Quebec, Canada, and operates two cannabis facilities totalling 1.6 million square feet, including its Valleyfield facility, one of Canada’s largest indoor cultivation sites. The company also operates three flagship brands: Tribal, Nugz, and Orchid CBD.

Featured image via Cannara

True North and associated companies file for creditor protection

Written by David Brown on January 26, 2025. Posted in Financials.

On January 24, 2025, the parent company of True North Cannabis Co., as well as Bamboo Blaze, and real estate holding company 888 filed for creditor protection for the three businesses.

Overview and initial Court Orders

The Vancor Group Inc. made an application under the Companies’ Creditors Arrangement Act (CCAA) declaring that 2744364 Ontario Limited (operating as True North Cannabis Co.), 2668905 Ontario Limited (operating as Bamboo Blaze), and 2767888 Ontario Inc. (888, a real estate holding company) are debtor companies to which the CCAA applies.

On the same day, the Ontario Superior Court of Justice granted an Initial Order mandating a stay of proceedings up to and including February 3, 2025, and also appointed Deloitte Restructuring Inc. as the Court-appointed monitor of the debtors’ business and financial affairs.

This is a creditor-initiated application brought by Vancor, the largest creditor of the debtor companies. Vancor has provided more than $23 million in principal over four years on an unsecured basis. The Vancor Group is owned by Corry Van Iersel, who owns the True North Cannabis chain of stores.

The CCAA filing is said to be “necessary and urgently required” because the debtors’ debt will mature on May 1, 2025. Vancor’s unsecured debt is also due and payable, and no means of repayment is available.

A court-supervised process is therefore seen by the debtors as the most likely way for the companies to find an investor or buyer and ensure the preservation of 285 employees, all working at True North, and preserve services to its customers and supply relationships with vendors.

Six True North employees also perform tasks for Bamboo Blaze and 888. Of the 285 employees, 106 are full-time, while another 179 are part-time.

Creditor protection is also “strategically essential” because secured loans that are imminently due are collateralized by mortgages on 27 of the debtors’ properties.

True North Cannabis Co. operates 48 retail cannabis stores in Ontario, an online storefront, and direct-to-consumer sales and deliveries in Ontario.

Bambloo Blaze supplies personal protective equipment like masks, gowns, and gloves to cannabis producers, and accessories like grinders, rolling papers, and bongs to cannabis retailers, including True North.

The holding company 888 owns 41 properties and is the landlord of the majority of True North’s 40 locations.

Financial status and creditor obligations

True North lists $21.4 million in unsecured creditors. Bamboo Blaze lists $3.3 million in unsecured credit, and 888 lists $6.4 million. Meanwhile, 888 lists $14.1 million in secured creditors, for a total of $31.1 million and a grand total of $45.2 million combined.

As of January 23, the debtor companies had eight secured creditors. Company 888 has 26 outstanding mortgages, all of which are due on May 1, 2025, to secure a $10 million principal loan. 888 currently owes around $7.5 million to the company behind the principal loan, Firm Capital.

In addition, on January 8, Cory Van Iersel received a demand narrative from a person, Venizelo Anastasiadis, who is pursuing a vendor take-back loan to True North in connection with True North’s directors’, Van Iersel and Alena Hapanovich, acquisition of True North.

According to Van Iersel, court filings describe a breakdown of the relationship between these two directors in 2024 due to disagreements about finances.

Vancor seeks the appointment of Shawn Dym as Chief Revenue Officer of the debtor companies. Dym is the owner of Decibel Cannabis Co and an advisor to Green Acre Capital. Calgary-based Decibel Cannabis closed on its acquisition of AgMedica Bioscience Ltd., a subsidiary of Atlas Global Brands, in October 2024.

According to court records, True North buys nearly $1 million worth of inventory from the Ontario Cannabis Store per week. As of November 30, 2024, True North had assets totalling around $15.8 million, consisting of around $7.5 million in current assets (inventory, cash, etc.) and $8.6 million in non-current assets (property and equipment).

As of the same date, True North also had around $25.3 million in liabilities, consisting of around $4.7 million in current liabilities and $20.6 million in non-current liabilities.

As of January 19, 2025, Bamboo Blaze had around $2.7 million in current assets, all in accounts receivable and inventory. As of December 31, 2024, 888 had assets of around $19.2 million, consisting of around $121,000 in current assets and around $19 million in non-current assets.

A 15-week cash flow forecast estimates that the debtor will need up to $1.5 million in interim financing.

Court records state that True North owes over $500,000 in HST arrears, while 888 is $100,000 behind in its HST obligations.

The Vancor Group is owned by Corry Van Iersel, who owns True North Cannabis. The Vancor Group is also the largest creditor of Equipment Co., the parent cannabis processor of Galaxie Brands. The parent company of cannabis packager Galaxie Brands was also issued an order pursuant to CCAA on August 6 on application by The Vancor Group Inc.

Prior to filing CCAA, Van Iersel was the owner of 51% of a numbered company, 1000460404 Ontario Inc. (10004), which in turn owns 50% of another numbered company, 1000370759 Ontario Inc. (10003), which owns Galaxie Brands Corporation. Court documents state that Galaxie has sales of around $1.5 million a month. Galaxie currently supplies 16% of the cannabis products sold in all True North retail stores.

According to Van Iersel, via an email to StratCann, Vancor now owns 22% of Galaxie, post-CCAA filing.

Note: This article has been edited to include updated information on the ownership of Galaxie, post-CCAA, noted above.

Ken Schaller is a director, officer and 50% shareholder of 2767889, Bamboo Blaze, Vancor, and Jax Jungle, a 30% shareholder of numbered company 2767888 and holds 15% of shares in 10004, which in turn owns 50% of 10003. He is also the common law spouse of Alena Hapanovich.

In the record of the applicant, it is claimed that Schaller has said that “he doesn’t care if the taxes get paid,” noting that Galaxie owes $2.7 million in excess taxes, an amount which is said to be increasing weekly.

The record of the applicant also makes several other accusations against Schaller, especially regarding his actions at Galaxie, including allegedly questionable hiring and firing practices and threats against Van Iersel. For his part, Schaller denies these and other allegations, saying they were made “without foundation in fact or evidence,” and making his own counterclaims.

Those counterclaims include a request for a declaration that Van Iersel breached duties owed by him as an officer and director of the corporations to the plaintiffs.

Court-authorized payments and borrowing

In accordance with the cash flow forecast appended to the company’s pre-filing report, the initial court order posted on January 24 states that debtor companies shall be entitled but not required to pay:

(a) all outstanding and future wages, salaries, employee and pension benefits, and vacation pay payable on or after the date of this Order, in each case incurred in the ordinary course of business and consistent with existing compensation policies and arrangements;

(b) the fees and disbursements of any assistants retained or employed by the debtors in respect of these proceedings, at their standard rates and charges;

(c) principal and/or interest payable to its secured creditors, and

(d) with the consent of the monitor, amounts owing for goods actually supplied to the debtors prior to the date of this order by the Ontario Cannabis Store but not yet paid for.

The court also ordered that the three debtors shall remit, in accordance with legal requirements, or pay:

(a) any statutory deemed trust amounts in favour of the Crown in right of Canada or of any Province thereof or any other taxation authority which are required to be deducted from employees’ wages, including, without limitation, amounts in respect of (i) employment insurance, (ii) Canada Pension Plan, (iii) Quebec Pension Plan, and (iv) income taxes;

(b) all goods and services or other applicable sales taxes (collectively, “Sales Taxes”) required to be remitted by the debtors in connection with the sale of goods and services by the debtors, but only where such sales taxes are accrued or collected after the date of the January 24 order, or where such sales taxes were accrued or collected prior to the date of the order but not required to be remitted until on or after the date of the order; and

(c) any amount payable to the Crown in right of Canada or of any province thereof or any political subdivision thereof or any other taxation authority in respect of municipal realty, municipal business or other taxes, assessments or levies of any nature or kind which are entitled at law to be paid in priority to claims of secured creditors and which are attributable to or in respect of the carrying on of the business by the debtors.

The court has also ordered that the debtors are authorized and empowered to obtain and borrow, on a joint and several basis, under the debtor-in-possession term sheet, provided that borrowings under the DIP term sheet shall not exceed $900,000 plus interest, fees and expenses, unless permitted by further order of the court.

CanadaBis/Stigma Grow complete cannabis shipment to Portugal

Written by Sarah Clark on January 14, 2025. Posted in Financials.

CanadaBis Capital has recently completed a successful shipment of its cannabis products to Portugal, which includes a selection of cannabis products from Stigma Grow.

CanadaBis is the parent company of cannabis brands like Stigma Grow and Dab Bods and companies like Stigma Roots, Goldstream Cannabis, and the INDICAtive Collection.

“This is a historic moment not only for Stigma Grow but for CanadaBis Capital as a whole,” said Travis Mcintyre, CEO of CanadaBis Capital. “Our successful entry into the Portuguese market is a reflection of our hard work, strategic planning, and the unwavering support of our partners and stakeholders. We are excited to introduce our high-quality products to European consumers and contribute to the growth of the cannabis industry in Portugal.”

The company says the first shipment to Portugal highlights Stigma Grow’s product line and underscores its vision of expanding its global footprint to regions like Europe.

In its most recent quarterly report, CanadaBis Capital Inc. reported gross revenue of $9.6 million and net revenue of $5 million for the three months ended October 31, 2024 (Q1 2025), with net income of $321,569.

In addition to the company’s sale of cannabis concentrates and extracts, flower, and pre-rolls, CanadaBis provides third-party and white-label processing contracts, including product development R&D.

The company currently owns a 66,000-square-foot facility, of which approximately 44,000 square feet of the building has been developed and equipped for the capacity to grow 225 kg of cannabis per year. The majority of its footprint is equipped and being used for the production of cannabis products such as extracts and infused pre-rolls.

The Alberta-based company also stated in the most recent quarterly report (page 3) from 2024, that it was in the process of shipping its first international products to the European market.

High Tide to enter German medical cannabis market through Purecan acquisition

Written by Sarah Clark on January 13, 2025. Posted in Cannabis News, Financials, International, Producers.

Another Canadian cannabis company, High Tide Inc., is looking to enter the German medical cannabis market. It has signed a definitive agreement to acquire 51% of Purecan GmbH for approximately $7 million (€4.8 million) and will have a future option to acquire the remaining interest in Purecan.

Purecan is an import-focused pharmaceutical wholesaler based in Frankfurt, Germany. The company holds a license to import medical cannabis into Germany and is preparing to launch a telemedicine portal for medical cannabis patients in Germany, along with complete warehousing and logistics infrastructure.

High Tide is a retail-focused cannabis business based in Calgary. Its retail chain, Canna Cabana, is the largest cannabis retail chain in Canada, with nearly 200 current locations in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, and it is growing.

The arm’s length transaction is subject to, among other things, receipt of required TSX Venture Exchange approval and other closing conditions and is expected to close in the coming weeks. It implies an enterprise valuation of nearly $14 million (€9.5 million). The purchase price for the 51% acquired will be approximately $7 million, broken out as follows:

$3.5 million (€2.4 million) in common shares of High Tide priced at the volume weighted average price per High Tide Share on TSXV for 10 trading days ending January 7, 2025 of $4.53 multiplied by the Bank of Canada’s CAD to EUR rate as at January 7, 2025, of 1.4871, for a total of 792,126 shares.
1.8 million (€1.2 million) in cash
1.8 million (€1.2 million) in a promissory note that will mature two years after the closing date, bear 7% annual interest (paid quarterly), and be prepayable at any time by the company with no penalty.

Purecan’s owners have also agreed to grant High Tide an option to acquire the remaining interests in Purecan not held by High Tide at an enterprise value equal to the trailing twelve months of Adjusted EBITDA multiplied by three. The call option will be exercisable at any time for a period of five years following the eighteen month anniversary of the closing.

Germany is one of the world’s largest importers of medical cannabis, with a significant number of those imports coming from Canada. Canada’s Tilray/Aphria and Aurora operate two of the three approved medical cannabis production facilities in the country.

“I am thrilled to announce that High Tide is taking a significant step towards becoming a truly global cannabis company, said Raj Grover, Founder and CEO of High Tide.

“By acquiring a 51% stake in Purecan, including its European wholesale and import license, its fully built warehousing and logistics infrastructure, and in-development telemedicine platform, we are strategically positioned to leverage our robust networks and relationships with Canadian licensed producers. With almost half of all German medical cannabis imports coming from Canada, this acquisition paves the way for us to emerge as a leading supplier of medical cannabis from Canada into Germany, potentially replicating our market share success in Canada.”

Grover adds that High Tide’s German strategy is multipronged.

“This highly accretive acquisition provides immediate market entry into Germany while we explore opportunities for consumer research in collaboration with the Food and Drug Agency, aligning with the ordinance recently signed by Germany’s Agriculture Minister.”

Dr. Ehsan Omari, chief medical officer of Purecan GmbH, says the deal will help address a growing demand for medical cannabis in Germany.

“Since our very first meeting with Raj and the High Tide team a few months ago, it became apparent to us that there were significant cultural and operational alignments between our companies,” said Omari.

“Given that demand for medical cannabis in Germany is currently outpacing supply, this merger provides Purecan with a unique opportunity to tap into High Tide’s unmatched procurement expertise and relationships with Canadian licensed producers who currently provide half of all medical cannabis imports into Germany. We look forward to a fruitful partnership between our two teams to create long-term value for all stakeholders involved.”

CRA wants Delta 9 directors to be liable for more than $9 million in unpaid taxes

Written by Sarah Clark on January 13, 2025. Posted in Financials.

The Canada Revenue Agency wants Delta 9 Bio-Tech’s directors to be liable for more than $8.2 million in unremitted excise duties and nearly $1 million in GST.

In a submission from Thursday, January 9, 2025, the Canada Revenue Agency requested that the stay against Delta Bio-Tech Inc. be lifted to the extent necessary to allow it to assess Delta-9’s CEO John Arbuthnot and the company’s other directors for unremitted excise duties before Delta 9’s liability for them is transferred to a new company, ResidualCo.

ResidualCo is the company named as all of Delta 9’s excluded assets, excluded contracts, and excluded liabilities as part of the recent deal whereby Simply Solventless Concentrates Ltd. is to acquire all the issued and outstanding shares of the Winnipeg-based Delta 9 Bio-Tech.

In a Bench Brief posted on January 6, it is noted that an Approval and Reverse Vesting Order (ARVO) in respect of that Simply transaction, if granted, also provides for the releases in favour of the current directors and officers of Bio-Tech, Bio-Tech’s legal counsel and advisors, Bio-Tech’s monitor and its legal counsel, directors and officers of ResidualCo, and Bio-Tech in respect of the released claims.

The proposed ARVO contemplates the creation of ResidualCo, to which excluded assets, excluded contracts, and excluded liabilities would be transferred.

If granted, the ARVO would provide for releases involving these CCAA proceedings and the Simply Transaction for various third parties, including Bio-Tech’s current directors and officers, its legal counsel and advisors, the Monitor and its legal counsel, and Bio-Tech (the Released D&Os). The released claims include claims against the Released D&Os for unpaid source deductions, goods and services tax, and excise taxes relating to the pre-filing period.

The CRA says that CEO John Arbuthnot and the company’s other directors are liable for Delta 9 Bio-Tech Inc.’s $8,216,924 of unremitted excise duties, saying the company diverted this money to other uses. In addition, the submission from the CRA says that Bio Tech Inc. also failed to remit the $936,993.68 in GST that it collected on cannabis sales while collecting hundreds of thousands of dollars in compensation.

Siding with the CRA will have no impact upon the sale of Delta 9’s Winnipeg property to 6599366 Canada Ltd., the share purchase agreement with Simply Solvent Concentrates Ltd., the reverse vesting order, or any other aspect of the Delta 9 restructuring.

Tilray reports $65.7 million from cannabis sales in Q2 2025

Written by Sarah Clark on January 10, 2025. Posted in Financials.

Tilray reported a net revenue of US$211 million for the three months ending November 30, 2024 (Q2 2025), but a net loss of US$85.3 million. All figures are in US dollars.

The company’s net revenue increased 9% compared to the same period in the previous year while net revenue increased 10% on a constant currency basis.

Of the company’s $211 million in net revenue, $65.7 million came from cannabis sales, $63.1 million from its beverage business, $67.6 million from its distribution business, and $14.6 million from its wellness business.

Net revenue from Canadian medical cannabis sales was $6.7 million, while revenue from Canadian adult-use cannabis was $59.1 million, revenue from wholesale cannabis sales was $6.6 million, and revenue from international cannabis sales was $14.9 million. The company incurred $21.6 million in excise tax.

Gross margins on Tilray’s cannabis sales was 35%, compared to 31% in the same quarter in the previous year.

Irwin D. Simon, Chairman and CEO of Tilray Brands, stated, “In our fiscal second quarter, Tilray achieved strong results while making significant progress on our strategic plan. Our dedication to operational excellence has improved Gross Margins, Gross Profit, and overall profitability across our business segments, positioning us favorably for future success.”

Mr. Simon stated, “As we enter the second half of the year, we remain committed to delivering on our financial guidance and driving shareholder value. Tilray is a leading force at the forefront of the beverage industry, revitalizing the beer market, driving growth in spirits and non-alcoholic beverages, and advancing the legitimacy of cannabis for both recreational and medical use.

Through our brewpubs, we focus on bringing people together, creating exceptional experiences through entertainment, and enhancing lives through moments of connection. As I’ve said in the past, new industries are not born, they are built. To that end, we are trailblazing the future of consumer products through the infrastructure we have built. I am enthusiastic about what lies ahead, including the potential future legalization of cannabis in the U.S.”

Cannabis sales and inventory figures through June 2024

Written by David Brown on January 10, 2025. Posted in Business, Cannabis News, Government.

The Government of Canada recently released newly updated sales and inventory figures for the cannabis industry, highlighting changing trends as the industry continues to mature. The new numbers are up-to-date through June 2024.

Inventory of unpackaged dried cannabis increased in April and May after six months of declines but dropped again slightly in June. Unpackaged dried cannabis still in production has remained relatively steady for some time now, with annual spikes in October due to outdoor cannabis harvests.

Packaged inventory of dried cannabis with cannabis producers has remained relatively level since early 2022, with some seasonal fluctuations.

Edible cannabis packaged inventory increased slightly in recent months, while sales of cannabis edibles have shown month-over-month increases in the first six months of 2024. Packaged inventory of cannabis edibles with provincial distributors and retailers has been slowly increasing since the end of 2022, as have sales.

Packaged inventory of cannabis extracts was lower in April, May, and June 2024 compared to the three previous months, while sales of cannabis extracts have increased month over month since February 2024, following a decline from a spike in sales in December.

Packaged inventory of cannabis topicals has remained relatively steady for several months while sales show similar stability, except for a slight decline in March. Packaged inventory of cannabis topicals with provincial distributors and retailers has been declining since a peak at the end of 2022, except for a small spike around Christmas 2024.

Packaged inventory of cannabis plants with provincial distributors and retailers jumped significantly in April, May, and June 2024, as did sales.

Packages of cannabis seeds saw a significant spike at the end of 2023, while packaged inventory with provincial distributors and retailers has been declining since a high water mark at the end of 2021, with a brief spike at the end of 2023.

Packaged inventory of cannabis seeds with Federal licence holders fluctuated significantly in 2023 and increased in the first few months of 2024.

The total building area for cannabis production has also continued to decline from a peak of 4.8 million square meters in November 2021 to 2.9 million as of June 2024. Federally licensed indoor production space for cannabis has also continued to decline from a peak of 2 million square meters in November 2020 to 1.3 million in June 2024. Licensed cannabis processing space has remained relatively steady for several years, from a peak of 526,726 million square meters as of May 2021 to 341,682 in June 2024.

Total approved outdoor production space reached a peak of 713 hectares in December 2021. There were 601 hectares approved as of June 2024.

Retail sales of cannabis in Canada (non-adjusted) show a summer peak at $475.5 million, up slightly from $469 million in August 2023. Sales in October 2024 were $456.3 million, up from $451.2 million in the previous month.

Tilray Medical wins tender to supply Luxembourg with medical cannabis

Written by David Brown on January 6, 2025. Posted in Business, Cannabis News, Financials, International, Producers.

Tilray Medical, a division of Tilray Brands, Inc., announced on January 6 that its German subsidiary, Tilray Deutschland GmbH, has secured a tender to supply Luxembourg with its cannabis flower.

“We are honored to have been selected again to supply medical cannabis to Luxembourg,” said Denise Faltischek, CSO at Tilray and Head of International at Tilray Brands, in a company press release. “This is a testament to the unwavering dedication of our team in providing patients around the world with high-quality medical cannabis products.”

Luxembourg’s Ministry of Health and Social Security has authorized qualified health professionals to prescribe medical cannabis as a treatment option since February 2019. In a post on its website, the agency says that as of January 1, 2025, THC-rich flowering tops will no longer be available, but patients will still have access to CBD-rich cannabis flower and “balanced” THC and CBD flower, along with cannabis oil.

Access to these products has been increasing since the program was introduced. There were 18 bottles of cannabis oil prescribed in 2022, 2,043 bottles in 2023, and 2,850 since January 2024, which has also contributed to the adjustment of the program. The population of Luxemburg is around 675,000 people.

In October 2024, the city released tenders for cannabis oil (“THC dominant”, “CBD dominant” and “THC/CBD balanced”) and medicinal cannabis in the form of dried flowering tops (“CBD dominant” and “THC/CBD balanced”).

In November 2024, Tilray Medical launched its first commercial-grown medical cannabis flowers from its Aphria RX GmbH facility in Germany.

Tilray received the first cannabis cultivation licence issued under Germany’s new Cannabis Act in July 2024. This licence allows Aphria RX to cultivate and manufacture cannabis for medical purposes in Germany.

The cannabis company, which operates in Canada, the United States, Europe, Australia, and Latin America, was the first to receive a cannabis production licence in the country. Canadian cannabis company Aurora and the German company Demecan are also now licensed for production in the country.

In February 2024, Germany passed the German Medical Cannabis Act, expanding the country’s medical cannabis laws.

Aphria RX has been present in the medical cannabis space in Germany since March 2019, when the company was awarded a licence for the cultivation of medical cannabis in Germany from the German Federal Institute for Drugs and Medical Devices (the “BfArM”).

Any company that wishes to cultivate, produce, trade, import, export, dispense, sell, otherwise place on the market, obtain or acquire cannabis for medicinal purposes or cannabis for medical-scientific purposes in Germany requires a permit from the German Federal Institute for Drugs and Medical Devices.

Tilray’s Q2 financial results are expected January 10. Tilray Brands, Inc. brought in $200 million in net revenue and gross profit of $59.7 million in the first quarter of 2025 but still saw a net loss of $34.7 million (all figures in US dollars).

Retail cannabis revenue has increased year over year for 1CM in annual report

Written by Sarah Clark on January 3, 2025. Posted in Financials.

The company behind retail chains T Cannabis, Cost Cannabis, and Fresh Cannabis Co., 1CM Inc., reported revenue of $50.5 million and cost of goods sold of $41.5 million in relation to cannabis for the year ended August 31, 2024.

This is an increase from $34.7 million in revenue and $26.8 million in cost of goods sold for the previous year, which ended August 31, 2023. Including non-cannabis sales, the company earned a net income of $615,906 and reported an accumulated deficit of $40,512,917 as of August 31, 2024.

The company says cannabis retail revenue contributed to 80% of its revenue growth for the year due to both new and existing stores, while the remaining 20% was related to the growth of its liquor retail operations.

The company currently operates 34 cannabis stores in Canada, and 1CM says its retail cannabis revenue has increased year-over-year due to the expansion of its store count and the maturity of its retail cannabis locations.

Two of those stores, both Cost Cannabis branded, are located in Alberta. Two Fresh Cannabis Co. stores are located in BC. In New Brunswick, 1CM operates two Cost Canna locations and has another two in Saskatchewan. In Ontario, 1CM has 26 retail cannabis locations.

Cannabis revenue increased by 50% from the previous year, with 75% of that growth related to Ontario store expansions, based on growth that was related primarily to same-store sales.

The company says its revenue pricing is based on the competitive market, and the increase has been due to more traffic in these stores, along with the additional stores opened during the period.

“Management believes this increased growth can be attributed to customers appreciating the company’s competitive pricing strategy during a macroeconomic climate suffering from high inflation and affordability affecting many Canadians. The Company’s competitive pricing strategy combined with its commitment to customer service can be partially credited for the sales growth,” notes the financial report.

CanadaBis realizes highest gross revenue in Q1 2025

Written by Sarah Clark on December 31, 2024. Posted in Financials.

CanadaBis Capital Inc. reported gross revenue of $9.6 million and net revenue of $5 million for the three months ended October 31, 2024 (Q1 2025), with net income of $321,569.

CanadaBis is the parent company of cannabis brands like Stigma Grow and Dab Bods, as well as companies like Stigma Roots, Goldstream Cannabis, and the INDICAtive Collection.

Gross and net revenues for the company were up year over year compared to the same reporting period in 2023 ($9 million and $5.7 million). Net income and comprehensive income were down from $707,117 in Q1 2024, but up from a $326,557 loss in the previous quarter of Q4 2024.

The company attributes this increase in net revenue to continued growth and demand from its new and existing SKUs launched under the Dab Bod brands.

The company attributes the decrease in its net income to increased competition, especially among higher THC products, leading to price compression in the market.

CanadaBis’ cultivation and wholesale business generated $2.4 million in gross revenue, with the bulk of its revenue, $7.2 million, coming from extract sales. The company reports a 19% decrease in its overall sales of extracts to provincial bodies, although it says it increased demand in Manitoba.

CanadaBis incurred more than $4.5 million in excise duty in the most recent quarter.

In addition to the company’s sale of cannabis concentrates and extracts, flower and pre-rolls, CanadaBis provides third-party and white-label processing contracts, including product development R&D.

The company currently owns a 66,000-square-foot facility, of which approximately 44,000 square feet of the building has been developed and equipped for the capacity to grow 225 kg of cannabis per year. The majority of its footprint is equipped and being used for the production of cannabis products such as extracts and infused pre-rolls.

CanadaBis is also in the process of shipping its first international products to the European market.

Timeline of Delta 9 Cannabis Inc’s CCAA process

Written by Sarah Clark on December 31, 2024. Posted in Financials.

On May 21, 2024, SNDL Inc. issued a notice of intention to enforce security under section 244 of the Bankruptcy and Insolvency Act as a result of defaults under the applicable secured loan facilities made available to the Delta 9 Group by SNDL.

This was based on a $10 million loan to Delta 9 Cannabis Inc. by SNDL on March 30, 2022. The financing was structured as a 10% senior secured second lien convertible debenture with a maturity date of March 30, 2025.

On May 21, 2024, SNDL, by and through its counsel, issued a demand upon Delta 9 for repayment of its total indebtedness of $12,512,876.71 plus additional accrued interest, legal fees and expenses and additional costs or amounts recoverable by SNDL Inc.

On July 5, 2024, SNDL announced that it had acquired Delta 9 Cannabis’ debt, making it Delta-9’s senior secured creditor, bringing Delta 9’s total indebtedness owing to SNDL to $40,653,352.

On July 15, 2024, the Delta 9 Group sought and obtained its initial order under the CCAA, granted on July 24, 2024, which, among other things, extended the initial stay period until September 15, 2024, and approved a sales investment and solicitation process (SISP) in respect of the business and/or assets of Bio-Tech.

On July 15, 2024, Delta 9 also announced that it had entered into a binding term sheet for the FIKA Company to act as a plan sponsor to its CCAA proceedings. Through this process, FIKA would acquire Delta 9’s retail cannabis and distribution business while also assisting with a sale and investment solicitation process for the assets of the licensed cannabis production business. In exchange, Delta 9 would receive equity in FIKA.

Under that deal, FIKA would participate in and fund the costs of Delta 9’s CCAA proceedings through interim financing and present one or more plans of compromise or arrangements to Delta 9’s creditors. Under the agreement, FIKA would also provide up to $3 million to fund the costs of the CCAA proceedings and up to $13 million to repay the secured obligations owing to SNDL Inc.

That extension, granted after a court hearing on July 24, 2024, by Delta 9 and its subsidiaries—Delta 9 Logistics Inc., Delta 9 Bio-Tech Inc., Delta 9 Lifestyle Cannabis Clinic Inc., and Delta 9 Cannabis Store Inc.—includes the approval of the $16 million FIKA has offered in interim financing and a key employee retention plan in the amount of $650,00.

On September 11, 2024, a court granted an order extending the stay of proceedings pursuant to the Amended and Restated Initial Order (ARIO) up to and including November 1, 2024.

On September 12, 2024, Delta 9 paid $11,696,814.00 to SNDL for the debt outstanding under the Debenture. The court will determine the remaining portion of the amount due and payable to SNDL Inc., which Delta 9 disputes, on January 10, 2025.

On November 1, 2024, the court granted another order further extending the stay of proceedings pursuant to the ARIO up to and including January 31, 2025.

Bio-Tech had until July 26, 2024, to create a list of known potential bidders following the granting of the SISP Order, with a bid deadline of October 28, 2024. The SISP began on July 31, 2024, with 16 prospective bidders filing an NDA.

On November 11, 2024, Bio-Tech and its Monitor selected the highest and only serious bid: one for 17 of Delta 9’s grow pods and related intellectual property. This transaction closed on December 2, 2024. The bid price has been redacted in the monitor’s report.

Bio-Tech, with the assistance of its monitor, also recently selected a qualified bid tendered within the SISP by Simply Solventless Extracts for the purchase of Bio-Tech’s associated land, real property, and specific enumerated property, but excluding the property being retained by Simply as part of the retained assets under the terms of the sales and purchase agreement (SPA).

Simply’s bid was said to be the best overall for the property, taking into account the purchase price, the certainty of Simply’s ability to close, and other material terms of the transaction.

Pursuant to the SISP, Bio-Tech is also seeking the court’s approval of the applicant’s request for a vesting order at an application (ARVO) to be heard on January 10, 2025.

The proposed ARVO to be considered is a reverse vesting order that approves the vesting structure of the Simply Transaction.

The primary purpose of the reverse vesting structure is to preserve Bio-Tech’s various federal licences by facilitating an efficient operational transfer of Bio-Tech’s ongoing business and operations following the closing of the Simply transaction. Under a traditional asset sale transaction structure, the licenses are not transferable to a purchaser.

If approved, Delta 9 expects the Simply transaction to result in a going-concern outcome that will be beneficial to multiple stakeholders, including the retention of some of Bio-Tech’s 113 employees, as well as vendors and customers being able to continue to do business with Bio-Tech’s new owner.

As of the date of the initial filing, Bio-Tech’s listed tax liabilities were $7,831,515 (excise), $657,056 (GST), and $18,000 (source deduction liability), for a total of $8.5 million.

The Canada Revenue Agency (CRA) registered the amounts outstanding for the Excise Tax Liability ($7.8 million) on the title for Bio-Tech’s land. The Excise Tax Liability is registered subsequent in priority to the amounts owed to SNDL Inc. pursuant to its first mortgage and the second mortgage registered against the land.

Based on Bio-Tech’s current liquidity and the proposed transactions, Bio-Tech says it will not have sufficient funds to satisfy its total tax liability.

The ARVO seeks to provide for the release of Delta-9’s directors and officers for pre-filing claims including in connection with both the Excise Tax Liability, the GST Liability and the Source Deduction Liability.

Because of Delta 9’s tax arrears, the CRA moved to only renew the company’s excise licence on a 30-day basis, beginning in December 2023. Delta 9 Bio-Tech was also required to enter into a payment plan to address its owed excise tax in monthly payments of $50,000.

To keep the licence renewed, the company must pay the $50,000 payment and the monthly excise tax amount going forward, which Delta 9 founder John Arbuthnot says is a significant financial strain on the company.

More info here.

Simply Solventless enters into deal to acquire Delta 9 Bio-Tech

Written by Sarah Clark on December 30, 2024. Posted in Cannabis News, Financials, Producers.

Simply Solventless Concentrates Ltd. has entered into a share purchase agreement with Delta 9 Cannabis Inc. for the acquisition of all of the issued and outstanding shares of Delta 9 Bio-Tech Inc.

The deal is expected to add around $12 million in revenue. It is for cash consideration of $nil net of approximately $3 million of expected net working capital received, or cash consideration of $3 million without deducting expected working capital received, payable in a series of payments of $0.75 million by January 2, 2025, and $2.25 million on the closing date, expected to be January 31, 2025.

In a press release, SSC, which does not produce flower itself, says that the acquisition of Delta 9 will help the company continue to make inroads in the dried flower market following its recent acquisition of pre-roll manufacturer ANC Inc. for $10 million. SSC expects that the all-in cash cost to cultivate cannabis through Delta 9 will be approximately $0.60-$0.70 per gram, among the lowest for indoor cannabis in Canada.

SSC reports that Bio-Tech currently produces approximately 9,000 kilograms of cannabis per year. The cannabis processor believes that with roughly $4 million in capital investment, production could potentially increase to 15,000-18,000 kilograms per year, but this is not planned at this time.

“The acquisition of Bio-Tech provides SSC with a predictable volume of high-quality Good Agricultural Collection Practice certified internationally exportable flower, with low per gram cost of cultivation, for an attractive acquisition metric of only 0.0x adjusted EBITDA post integration, net of expected net working capital received.”

As Bio-Tech is being acquired through CCAA proceedings, SSC also says it assumes no debt or liabilities from the acquisition and believes that Bio-Tech will contribute meaningfully to further expanded revenue and adjusted EBITDA in Q1 2025. SSC will provide Q1 2025 guidance in the weeks after the closing of the Acquisition.

In November, SSC reported net revenue of nearly $5 million for the three months ended September 30, 2024 (Q3 2024), with gross profits of almost $2 million, and $424,446 in net and comprehensive income.

Bio-Tech has approximately $60 million of accrued non-capital loss tax pools that SSC may be able to use. If these tax pools are utilized, SSC says they are expected to reduce future tax payments by up to $12 million at an effective tax rate of 20%.

In July, Delta 9 Cannabis received CCAA protection and entered into an agreement with cannabis retailer FIKA following what it called an “aggressive” move by Delta 9 secured creditor SNDL Inc.

In November, Delta 9 Bio-Tech announced it had selected a bid for the purchase of some of its assets through the SISP process, which began earlier this year.

Delta 9 is a vertically integrated group of companies that touches cannabis cultivation, processing, extraction, wholesale distribution, retail sales, and business-to-business sales.

On July 15, 2024, Delta 9 Bio-Tech Inc. and four related entities were granted an initial order by the Court of King’s Bench of Alberta under the Companies’ Creditors Arrangement Act (Canada) (CCAA).

On July 24, 2024, the Court approved a sales and investment solicitation process (SISP) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of Bio-Tech’s assets and business operations.

On September 11, 2024, the court granted an order extending Delta 9’s stay of proceedings pursuant to the Amended and Restated Initial Order (ARIO) first granted in July, up to and including November 1, 2024. That extension was to November 1 and has now been extended to January 31, 2025.

Delta 9 Bio-Tech’s assets include a 95,000-square-foot cannabis cultivation and processing facility in Winnipeg, Manitoba, which contains 297 modular “grow pods.” These are retrofitted shipping containers used by some micro cultivators. The company says they are customized for flowering, trimming, cloning, research, testing, support, and storage.

Delta 9’s Monitor sought confirmation from SNDL, the first-ranking secured creditor of the purchased assets, but had not received a response when the monitor’s fourth report was filed on November 13.

In a press release earlier in July, Delta 9 said that the CCAA process was in the best interest of the company and its shareholders, especially in light of recent “aggressive” actions by its creditors. These included demand notices from SNDL Inc. on May 21 and July 12 and SNDL’s recent acquisition of all the Company’s senior secured debt for $21 million.

SSC also announced the appointment of Jeff Holmgren as CFO and the promotion of Murray Brown, SSC’s current Vice President of Operations, to the position of COO. Additionally, SSC’s 8,700,000 common share purchase warrants exercisable at a price of $0.40 per share with an expiry date of December 23, 2024, have been exercised for proceeds of $3,480,000.

This is not SCC’s first acquisition. On June 25, 2024, the company entered into a services agreement and share purchase agreement with CannMart Inc., a cannabis company located in Etobicoke, Ontario, for $2.5 million. SCC also acquired Lamplighter in January 2024.

Creditor protection, bankruptcies, and acquisitions in 2024

Written by Sarah Clark on December 29, 2024. Posted in Business, Cannabis News, Financials, Government.

As the Canadian cannabis industry continued to weather financial headwinds in 2024, numerous companies found themselves entering creditor protection, closing up shop, or selling off assets. Here’s a brief breakdown.

In January 2024, a court-appointed monitor of Trees Corporation, which operates a chain of cannabis stores in BC and Ontario, announced it was conducting a sale and investment solicitation process for the cannabis company.

Safari Flower entered CCAA protection in January 2024 and successfully exited creditor protection in September 2024.

On February 20, Hamilton, Ontario-based cannabis companies Wayne Patrick Consumer Products Ltd. and WPCP Ltd. had their Notice of Intent proceedings continued under the CCAA. The issue remains ongoing.

BZAM was granted CCAA protection in February to restructure its business and financial affairs. The issue is ongoing, with the most recent stay of proceedings until January 13, 2025. Final Bell has been challenging the move in court since April 2024. In December, a court rejected Final Bell’s equity claims against BZAM’s monitor and again extended the stay of proceedings.

In April, Heritage Cannabis Holdings Corp. and its subsidiaries sought and obtained an order for creditor protection from the Ontario Superior Court of Justice pursuant to the Companies Creditors Arrangement Act (CCAA). In August, Heritage announced it had completed the sale of the company to a stalking horse bidder, HAB Cann Holdings Ltd, which is connected to Heritage’s senior secured lender, BJK Holdings Ltd.

In May, the parent companies of cannabis retail chain Four20 Premium Markets filed a notice of intent to make a proposal under the Bankruptcy and Insolvency Act. Following approval by the Court of the SISP on September 19, 2024, the Applicants commenced the SISP and the Claims Process. The issue is ongoing.

In June, Ontario’s Indiva received creditor protection, and in August, SNDL announced its successful bid to purchase Indiva.

Atlas Global Brands, the company behind cannabis brands like D*gg Lbs, GreenSeal, and Electric Lettuce, was granted an initial order under the Companies’ Creditors Arrangement Act (CCAA) in June. In October, a court approved an RVO for Atlas Global Brands against the CRA’s objections. In October, Calgary-based Decibel Cannabis Company Inc. closed on its acquisition of AgMedica Bioscience Ltd., a subsidiary of Atlas Global Brands.

In July, Delta 9 Cannabis received CCAA protection and entered into an agreement with FIKA following what it called an “aggressive” move by Delta 9 secured creditor SNDL Inc. On December 30, Simply Solventless Concentrates Ltd. has entered into a share purchase agreement with Delta 9 Cannabis Inc. for the acquisition of all of the issued and outstanding shares of Delta 9 Bio-Tech Inc.

Galaxie Brands received CCAA protection in August and announced its exit from the process in December.

Freedom Cannabis also received creditor protection in August to pursue the restructuring and sales process.

Tokyo Smoke announced in August that it would close 29 locations as it sought creditor protection. By September, the retail chain began the Stalking Horse sale process. Tokyo Smoke emerged from creditor protection in November with around 57 “go-forward” store locations.

On October 24, 2024, the CannGroup Development Corp. filed a Notice of Intention to Make a Proposal pursuant to subsection 50.4(1) of the Bankruptcy and Insolvency Act.

And finally, in November, Noya Holdings Inc. and Noya Cannabis Inc. applied for creditor protection.

This article has been edited to include SSC’s news on December 30 and CannGroup’s filing from October 24.

Did we miss any?

The Good Shroom reports decreased revenue, increased losses in Q1 2025

Written by Sarah Clark on December 23, 2024. Posted in Financials.

The Good Shroom, a Canadian cannabis company, reported $691,382 in net revenue for the quarter ended October 31, 2024 (Q1 2025), but a net loss of $55,222.

This is a year-over-year decrease from the $1.3 million in net revenue and $92,586 in net profit in the company’s Q1 2024 report and $40,603 in net profit in the previous quarter (Q4 2024).

The Good Shroom Company (TGSC) recently reported net profits of $40,000 for 2024.

The company attributes its weaker performance in this most recent quarter primarily to Quebec’s biannual product call system, where it sells the majority of its products. It also recently returned $35,913 worth of cannabis products (plus the associated return fee) from the province of Alberta during Q1 2025. The Good Shroom also recently began selling products in PEI.

From the company’s press release: “This system means that one underperforming product call can result in weaker performance across two consecutive quarters. This was the case for TGSC, as the recent “rationalization” of offerings by the cannabis board of the province affected the entire market, including the Company.”

As a result of this rationalization, TGSC says it received a return of $29,622 plus associated fees and lost sales opportunities during late Q4, Q1 and early Q2. The company says this is the first time this outcome has occurred in its history and it expects to rebound with the upcoming product call, beginning in late Q2 and continuing into Q3.

The company says the “significant setbacks” experienced this quarter “are not deeply pernicious.”

Of The Good Shroom’s $824,225 of revenue (before $132,843 in excise), $810,652 were from the sale of cannabis products, while $13,573 were wellness beverages (part of its mushroom business). $818,953 was sold in Canada, while $5,273 was sold in the US.

The company was first licensed as a micro processor in November 2019 before scaling up to a standard processing licence in October 2023. The Good Shroom recently released a THC-infused oral pouch under the Dyp brand in the Alberta market that it also expects to release into the Ontario market this January.

As at October 31, 2023, the Company had a working capital of $515,672.

Week in Weed – December 21, 2024

Written by Staff on December 21, 2024. Posted in Business, Cannabis News, Government, International.

This week in cannabis news, StratCann looked at the federal government committing to “exploring” a single harmonized cannabis excise stamp and the industry’s reaction, as well as MediPharm’s plans to sell its ABcann facility to Kensana Health, and Greenway Greenhouse’s plan to acquire Choice Growers’ brands.

We also spoke with researchers in BC who are looking at the impact of cannabis use on driving, and covered a 7-day suspension notice for an Ontario retailer for providing a third-party delivery service, selling cannabis outside the province, and selling more than 30 grams at a time.

BC’s third cannabis farmgate store, Weeds, received provincial approval and hopes to open in the new year. Also, Health Canada may begin requesting supporting evidence for some medical cannabis authorizations.

In financial news, Organigram released its 2024 fiscal report, and Aurora announced a distribution partnership between MedReleaf Australia and The Entourage Effect.

In law enforcement news, RCMP in Nova Scotia shut down an unlicensed cannabis storefront.

And we published the ninth instalment of the Good Weed Board.

In other cannabis news

A new update in Gazette II amended the Regulations Amending the Food and Drug Regulations and the Cannabis Regulations to reflect the new food additives framework, including the revised Lists of Permitted Food Additives.

The federal government shared a new update on the planned renewal of its funding for the existing Federal framework for the legalization and regulation of cannabis in Canada.

Craft Kings Cannabis Group announced its acquisition of BC Green Farms Ltd, located in Duncan, British Columbia. The move triples Craft King’s cultivation space.

Delta 9 is well-poised to become Manitoba’s cannabis superstore thanks to its upcoming acquisition by FIKA Company, shares FIKA CEO Mark Vasey with the Winnipeg Free Press. All Delta 9 stores currently operating in Manitoba will continue to operate under the same name, but the number of products they will carry will expand from around 200 to 800.

During the holiday season, the SQDC will offer in-branch and online services, according to a modified schedule, between Tuesday, December 24, 2024 and Thursday, January 2, 2025.

HYTN Innovations Inc. announced its successful export of cannabis to the United Kingdom’s 4C LABS.

Edmonton Police say charges have been laid against a 19-year-old man in connection with a series of robberies that targeted cannabis and convenience stores in Calgary and Edmonton. StratCann covered those robberies here. The suspect is believed to be connected to 17 robberies in Calgary and four in Edmonton, which occurred between Sunday, September 1, 2024, and Monday, December 16, 2024.

Cannara Biotech Inc. announced that it will be relying on CSA Coordinated Blanket Order 51-913 for an exemption from the requirements to send proxy-related materials for its upcoming annual general meeting to be held on January 30, 2025, at 11:00 a.m., due to the current delays and suspension of mail service in Canada as a result of the nationwide strike of the Canadian Union of Postal Workers that commenced on November 15, 2024.

A staff report in Melfort, Saskatchewan, recommends against limiting the number of cannabis shops in the town about two hours northeast of Saskatoon. In October, Into the Weeds Cannabis and Saskabuds Cannabis requested that Council consider limiting the number of cannabis retail stores in Melfort to two. Director of Community Services Rob Lok said Council will decide whether to limit the number of cannabis stores in the city at their next council meeting on January 13.

A new research paper examines the establishment of a mass spectrometric fingerprint of the most common phytocannabinoids in electrospray ionization in positive ion mode.

An unlicensed pot shop in downtown London has reopened three weeks after it was riddled with bullets in an overnight shooting that remains unsolved.

High Tide Inc. announced the openings of its 190th and 191st Canna Cabana branded retail cannabis locations in Canada: the 84th in the province of Alberta and the 76th in the province of Ontario.

MTL Cannabis Corp. announced that it has fully repaid its 13.25% mortgage, which was originally issued by MTL’s predecessor company to a private lender prior to the Company’s business combination with Canada House Cannabis Group.

Tilray Brands, Inc. will release its financial results for the second quarter ending November 30, 2024, before the financial market opens on January 9, 2025. The company also announced the expansion of its holiday-themed Redecan ‘Wrapped & Redee’ Redees Hemp’d line.

A recent CBSA seizure that focused on illegal tobacco shipments in Vancouver also included 4.2 kilograms of cannabis.

A recent study suggests that Canadian cannabis researchers tend to be “morally ambivalent” about cannabis industry sponsorship of research. They are motivated to conduct high-quality research and generate evidence for population health benefit, yet they have concerns over the potential for research agenda bias created by these relationships which could be harmful to population health. This first study of its kind was led by the Centre for Addiction and Mental Health (CAMH).

Trial dates have been scheduled for April 2025 in a case that began with a constitutional challenge over four years ago involving 10 defendants charged with operating unregulated cannabis stores on Wahnapitae, Henvey Inlet, and Garden River First Nations.

The Research Society on Marijuana (RSMJ) published a special issue with 12 research papers on cannabis in Canada post-legalization in the journal Cannabis, an open-access peer-reviewed journal dedicated to the scientific study of marijuana/cannabis from a multidisciplinary perspective.

An investigation by Durham police into an armed man led to the discovery of a cannabis grow operation with a large quantity of plants in excess of their licence. With the assistance of the Drug Enforcement Unit and the OPP-led Provincial Joint Forces Cannabis Enforcement Team, investigators seized dry cannabis and just under 29,000 cannabis plants.

Business in Vancouver looked at trends in wholesale cannabis sales in BC, with some insight into a topic StratCann readers have been aware of for months now.

International cannabis news

The Ministry of Health in France decided to grant an authorization for an additional six months for it’s medical cannabis trial program so that the National Agency for the Safety of Medicines (ANSM) can continue to deliver medicines to the 1,800 patients included in the therapeutic protocol. The program, which began in March 2021 had been scheduled to end On December 31, 2024.

More than 20 workers at the Cannabis 21+ dispensary in San Diego, California, voted to join UFCW Local 135. In addition to Cannabis 21+, UFCW Local 135 represents over 400 cannabis workers in San Diego and Imperial Valley’s cannabis industries.

The future of the US hemp industry remains on the line as lawmakers once again put a five-year farm bill reauthorization package on the back burner and instead agreed to a one-year extension in the final days of the current Congress, reports the Cannabis Business Times.

The government in the Netherlands recently announced that as of April 7, 2025, coffee shops in municipalities participating in the nation’s Closed Coffee Shop Chain Experiment will only be allowed to sell regulated cannabis.

The founders of Weedmaps want to call it quits on the company’s stock and have offered to take the cannabis store-finder service private for about $100 million.

California issued a voluntary recall for multiple Flavorz integrated vaporizer products due to the presence of methylene chloride, and another voluntary recall for multiple Connected pre-roll and flower products due to the presence of Aspergillus spp., and due to inaccurate labeling that reports more cannabinoid content than the products contain.

Organigram reports net revenue of $159.8 million and net loss of $45.4 million in 2024

Written by Sarah Clark on December 18, 2024. Posted in Financials.

Organigram reported $247.2 million in gross revenue and $159.8 million in net revenue for fiscal year 2024, ended September 30, but a net loss of $45.4 million.

This represents an increase from $233.6 million in gross revenue for the previous fiscal year (which was 13 months), $161.6 million in net revenue, and a $248.6 million net loss. Organigram reports incurring $87.3 million in excise taxes in fiscal year 2024.

The company’s gross margins nearly doubled in the most recent fiscal year, from 16% to 30%, while operating expenses were down significantly.

The most significant growth in sales for Organigram in fiscal year 2024 were adult-use, recreational non-medical sales of cannabis flower, and infused pre-rolls.

In that category, cannabis flower sales, net of excise duty, were $91.2 million, up from $82.1 million in the previous year. Vapes were $2.2 million, down from $3.8 million in 2023. Hash was relatively level at $11.3 million compared to $11.2 million in 2023. Infused pre-rolls jumped significantly to $12.2 million from just $2.9 million the previous year. Edibles were $21.4 million, compared to $22.1 million in 2023. Ingestible oils and extracts were $4.7 million, up from $4.3 million.

On the medical use supply chain side, sales dropped from nearly $3 million in 2023 to $1.7 million in 2024, while sales of flower and oil on the international market dropped from $18.9 million in 2023 to $9.7 million in 2024. Wholesale and other sales were $5.4 million compared to $2.1 million in 2023.

Since Q4 2023, the amount of dried flower yield per plant in grams and flower harvested in kilograms has increased or stayed level, quarter over quarter.

Organigram’s net revenue in Q4 2024 was the highest the company has reported in the preceding eight quarters.

As of September 30, 2024, the company had unrestricted cash of $133,426, up from $51,757 at September 30, 2023. The company attributes the increase primarily to the proceeds from the follow-on British American Tobacco (BAT) investment and the offering of units that closed on April 2, 2024.

In December, following the end of the most recent fiscal reporting period, Organigram also acquired Motif, which included a cash component of approximately $50 million and roughly $5 million in transaction costs. The funds to finance this acquisition were not drawn from the Jupiter Pool created by BAT.

The acquisition of Motif made Organigram the number-one LP in Canada in terms of market share. It also added two purpose-built facilities to its portfolio, focusing on cannabis extraction, processing, manufacturing, and distribution.

Organigram expects to close the third tranche from the follow-on BAT investment in the amount of $41.5 million on or about February 28, 2025.

“Fiscal 2024 was a transformative year where our entire team delivered on multiple fronts,” said Organigram’s CEO Beena Goldenberg. “We received significant funding from BAT when capital for the cannabis industry was scarce. We made smart, strategic investments, including into seed-based technology and automation, which is increasing efficiency. We have also expanded our international footprint through a $21 million investment in Sanity Group, a leading German cannabis company, as well as through several new supply agreements to provide products to patients in Australia and the UK. As we integrate recently-acquired Motif into the Organigram ecosystem, we head into Fiscal 2025 as Canada’s #1 LP and we are very excited for the next phase of our growth plans focused on efficiency, consumer-centric innovation, and international expansion.”

Organigram’s biggest brand, SHRED, brought in $225 million in annual retail sales as of the end of Q4 Fiscal 2024.

Organigram sells into four international medical supply markets: Australia, Germany, the UK, and Israel. The company has also completed strategic investments in two U.S.-based companies: OBX and Phylos.

Organigram also completed its EU-GMP audit in November 2024 and is awaiting the results.

Organigram is one of the companies mentioned in an ongoing investigation by the Israeli government into allegations of Canadian cannabis companies engaging in “product dumping” in the Israeli medical cannabis market. A ruling on that investigation is expected in 2025, says Organigram. The Israeli Ministry of Health, which regulates medical cannabis distribution in Israel, has said they oppose the Anti-Dumping Commissioner’s decision on the basis that it is biased, inconclusive, and harmful to patients in Israel.

A report of an independent registered public accounting firm, included in Ogranigram’s annual report, says the Moncton-based cannabis company has not maintained effective internal control over financial reporting as of September 30, 2024, based on criteria established in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway (COSO).

Federal government “exploring” single harmonized cannabis excise stamp

Written by David Brown on December 16, 2024. Posted in Business, Cannabis News, Government.

The federal government will explore a single, harmonized federal excise duty stamp as part of a red tape reduction measure outlined in its 2024 Fall Economic Statement.

More info on the proposal is expected as part of Budget 2025.

The move from requiring producers to use 13 different provincial and territorial excise tax stamps to a single, harmonized stamp is something the industry has said would save cannabis producers time and money. In a meeting in October, The Cannabis Council of Canada (C3) called for such changes, saying they would go a long way toward addressing some of the logistical challenges the current tax stamp program creates.

Paul McCarthy, the president of C3, says he’s happy to see the government acknowledging the issue, but is frustrated that this announcement used a lot of vague wording rather than committing to immediate action.

“What they should be doing is implementing this,” says McCarthy. “It will help businesses. There’s no downside for anybody anywhere, but they still want to wring their hands and look at it more. Talk about a government that is not in touch with the needs of the sector.”

McCarthy adds that he was cautiously optimistic that the fall 2024 statement would have included some movement on the tax, but also acknowledges that expectations have been low due to the complexity of such a change. Although the industry has been asking for the excise rate to be lowered, many in the industry say a single stamp would at least relieve some of the financial burdens associated with the current stamp regime.

“To cut red tape for growing businesses and help them to succeed, the 2024 Fall Economic Statement also announces the government’s intent to explore a transition from cannabis excise duty stamps specific to each province and territory to a single, national stamp. This would make it easier for regulated cannabis producers to ignite new business opportunities in other provinces. More details will roll out in Budget 2025.”

In a post on C3’s website, McCarthy added: “The government’s continued neglect of the cannabis sector is alarming. Their unfair taxation policies are creating an unsustainable environment for legal businesses, forcing many to close their doors and driving consumers back to the illicit market.”

Earlier this year, Orville Bovenschen, President of Pure Sunfarms, told StratCann that such a move could save his company around a million dollars a year. However, these savings would not be limited to just larger companies like Pure Sunfarms.

“It’s not just us,” said Bovenschen. “If you look at small producers, medium-sized producers, it’s very complicated for them as well. A change like this can make it easier for us to operate and become more profitable. I think this is much easier to achieve before we get to the bigger issue of the excise tax itself.”

While changing the actual excise rate is complicated, he added, solutions like these could make more sense in the more immediate term.

“I think it could be an achievable win. Nothing is easy but I think it can be a much needed win for everybody. For the government, for us. I don’t think there’s a single person that isn’t aligned with this idea of having one single stamp for the entire industry.”

Janeen Davis, VP of sales at DEALR Cannabis (formerly JVCC), which distributes cannabis, often from micro cultivators and processors, in BC and Ontario, says the change will definitely help the company save time and money, even if it doesn’t go as far as she would like to see in terms of lowering the actual excise rate itself.

“We spend so much time just managing our stamp inventory for the provinces,” explains Davis. “Managing stamp inventory can be a major administrative burden to all processors in Canada, and I think if there were just one excise stamp, it would be something to celebrate.”

Gord Nichol, the owner of North 40 Cannabis, a micro producer in Saskatchewan, says the move doesn’t address “the giant elephant in the room” that is the need for lowering the excise rate itself, especially for smaller producers like his company.

“Excise tax reduction for micro processors is the only issue that might save me”, Nichol tells StratCann.

Such a move would require the support of the provinces, who receive 75% of every dollar the federal government collects from the federal excise tax.

Some in the industry, speaking with StratCann strictly on background, have also suggested that the recent stepping down of Chrystia Freeland from the role of Finance Minister could bode well for efforts at lowering the excise rate itself. In the past, some have suggested that Freeland was one of the main last-minute impediments to such changes in previous federal budgets.

Note: This article initially said the Budget was expected in 2025. That’s is not correct and has been changed. It is expected in early 2025.

Galaxie Brands exits CCAA, announces major new partnerships and strategic growth

Written by Contributor on December 13, 2024. Posted in Financials.

Puslinch, Ontario – December 10, 2024 – Galaxie Brands, a leader in cannabis co-packing and automation, proudly announces the successful conclusion to the Companies Creditors Arrangement Act (CCAA) process, marking the start of a new exciting chapter.

Bolstered by strengthened partnerships, major new client relationships, and operational enhancements, Galaxie is well-positioned to redefine excellence in full-service co-manufacturing, covering cannabis packaging, manufacturing, storage and logistics.

In a significant step forward, Galaxie Brands has brought on large co-manufacturing clients to produce and pack pre-rolls for their flagship brands, with current production of several hundred thousand PRs per month, expected to increase in the coming months. This partnership underscored Galaxies’ reputation for delivering high-quality, automated co-packing solutions and highlights its commitment to working with industry leaders to bring best-in-class products to market.

Throughout the CCAA process, Galaxie not only maintained operations but achieved significant milestones, including deepening partnerships with TobaGrown/TobaRolling in Manitoba. Together, Galaxie provided the horsepower to TobaGrown’s presence in Manitoba, enabling an uninterrupted supply to the existing SKUs in-market at a winning price point. The companies continued forward, launching multiple successful products bolstering Galaxie’s portfolio and expanding TobaGrown’s presence in the MB market. These efforts include producing pre-rolls, sourcing premium flower, excising, and shipping products back to Manitoba. Continuing into December, TobaGrown will be launching a line of AIO vapes, infused pre-rolls and blunts, and an expanding line of edibles. The collaboration was pivotal in generating strong revenue and positioning both companies for sustained success.

With a focus on automation, cost efficiency, and client-first service, Galaxie specializes in pre-creation (standard, infused and coated), pre-roll packaging, flower packaging and edibles. The company’s state-of-the-art facility enables it to deliver industry-leading turnaround times and pricing, making it the preferred partner for cannabis producers across Canada.

Guiding Galaxies’ future is a new Chief Operating Officer, Richard Aranha, who has extensive experience in cannabis operation and supply chain management, and brings fresh energy to the company leadership. Formally with TGOD for six years and BZAM following the merger, Aranha held key roles such as Facilities Engineer, Supply Chain Director and Director of Continuous Improvement. His engineering background and deep understanding of the cannabis industry are instrumental in driving Galaxie’s automation strategy and operational excellence.

“Galaxie is the perfect launchpad for mid-sized companies across Canada, as is evidenced by the growth of TobaGrown portfolio and sales – with our very significant capacities, we are able to offer companies the ability to scale, enjoy low production costs and keep COGS at a minimum, avoid the challenges of having to manage fluctuating labour requirements, and to serve nearly every major market in Canada in all major product categories. Galaxie is positioned for turn-key services for brands of all sizes to be able to enter and grow in the market. Given our position as a service provider to so many brands, we find ourselves in the nexus of many different verticals – our scale enables efficiencies that we are determined to pass on to our customers to form an unbeatable overall ecosystem of value. I am privileged to lead the Galaxie team.” said Mr. Aranha.

Under Aranha’s leadership, Galaxie has implemented and streamlined processes, enhancing transparency and efficiency. These improvements reflect Galaxie’s commitment to providing the best quality and value in the industry.

As the company looks to the future, Galaxie is focused on building additional partnerships with licensed producers, expanding the market presence of brands it works with, and delivering innovative solutions tailored to its client’s needs. The company is poised to become Canada’s top choice for automated co-packing and manufacturing services.

About Galaxie Brands

Galaxie Brands is a licensed producer and copacker of cannabis and cannabis products, specializing in pre-roll creation, pre-roll packaging, and flower packaging. Operating from its advanced facility and Puslinch, Ontario, Galaxie is committed to providing unmatched quality, efficiency, and value to its partners across Canada.

For media and related inquires, contact Jeremy Bouvet, National Marketing Manager, Galaxie Brands: Jbouvet@galaxiebrands.com.

Sponsored Content by: Galaxie Brands

Court rejects Final Bell’s equity claims against BZAM monitor, again extends stay of proceedings

Written by Sarah Clark on December 6, 2024. Posted in Business, Financials, Producers.

A judge has approved a motion to extend the stay of proceedings between Final Bell and BZAM, and has been again postponed, this time to January 13, 2025. The court ruled that Final Bell’s equity claim falls behind the claims of all other creditors.

The court also approved a motion to authorize the bankruptcy filing of cannabis cultivator 9430-6347 Québec Inc. to file an assignment in bankruptcy. The company’s federal cannabis licence was listed as revoked on request earlier this year.

The monitor in the case involving the dispute between BZAM and Final Bell Holdings, Cortland Credit Lending Corporation, had asked the court for a declaration that the claims of Final Bell against BZAM are subordinate to Cortland’s claims against BZAM.

Cortland argued, and the court agreed, that the trial of Final Bell’s claim will likely be moot “as there will be no cash proceeds available to which the constructive trust could attach.”

Final Bell had opposed that motion and argued that it should have been entitled to the opportunity to prove its fraudulent misrepresentation claim. Final Bell says that BZAM made fraudulent misrepresentations to it that Final Bell relied on when the company entered into a share exchange agreement with BZAM. It also alleged that Cortland was aware of those fraudulent misrepresentations.

The judge rejected these claims, siding with the monitor.

The case surrounds BZAM’s announcement in late 2023 that it would be acquiring Final Bell, which was quickly followed by BZAM filing for and receiving CCAA protection a few months later in February 2024. Final Bell argues the CCAA filing contradicts assurances BZAM had given the company before signing the agreement.

That deal saw BZAM acquiring Final Bell Canada by issuing $13.5 million in equity in BZAM and granting Final Bell $8 million in promissory notes. At the time, the deal was said to make BZAM the fifth-largest Canadian LP.

Final Bell reacted to BZAM’s announcement at the time by saying it believes that the company’s initiation of CCAA Proceedings constituted an “improper use of creditor protection legislation to evade its creditors, defraud shareholders, and facilitate a related party going private transaction at an unjustified discounted value in order to circumvent a customary going private transaction requiring shareholder and creditor approval.”

“There is a second principal reason that Final Bell’s claim, even if ultimately successful, cannot rank in priority to the super priority DIP Lender’s Charge of Cortland,” writes the judge. “The claim of Final Bell is an “equity claim” as defined in the CCAA. As such, the claim of Final Bell ranks behind the claims of all creditors, not just creditors with court-ordered priority charges.”

“In asserting its late-breaking claim for a constructive trust, Final Bell is seeking to elevate what is inescapably an equity claim into a claim of not only a creditor, but a first-ranking creditor with priority over the Court-ordered super priority DIP Lender’s Charge. Such is expressly not permitted under the CCAA, within which the definition of “equity claims” should be given an expansive interpretation.”

However, the judge was also careful to note that he was not making any determination about the merits of Final Bell’s fraudulent misrepresentation claim against BZAM, but that if such a claim were successful, there would be no assets left over to address any findings in their favour.

As Cortland’s motion was successful, it is entitled to its costs of $150,000 inclusive of fees, disbursements, and HST, to be paid by Final Bell within 30 days of December 2, 2024.

Organigram acquires Motif Labs, making it Canada’s largest cannabis company by market share

Written by Sarah Clark on December 6, 2024. Posted in Cannabis News.

Organigram Holdings Inc. has acquired cannabis extractor Motif Labs Ltd. for $90 million in a stock and cash deal.

The move, consisting of $50 million in cash and $40 million of Organigram common shares, says the company, makes Organigram the largest cannabis company with a combined market share of 12.4%. Motif holds 21.2% and 9.4% share of the Canadian vape and infused pre-roll markets, respectively, according to data from Hifyre.

This will mean the combined companies will have a combined market share of 21.7% for vapes, 9.6% for pre-rolls, including 16% for infused pre-rolls, 14.1% for concentrates, 21.6% in the hash category, 11.2% in cannabis flower and 47% in milled flower, and a 19.2% market share of cannabis gummies.

“This deal is about a leading public cannabis company joining forces with Canada’s top private licensed producer,” said Paolo De Luca, Chief Strategy Officer at Organigram in a press release. “We are extremely excited about leveraging our combined competitive advantages and respective market positions to continue to grow in Canada and beyond.”

Located in Aylmer, Ontario, Motif is a Canadian leader in the vape and infused pre-roll categories with a portfolio of brands like BOXHOT and Debunk, Boondocks, and Rizlers, and wholesale sales and services for external brands. The company grew from $35 million in net revenue in 2022 to $79 million in 2023 and has generated approximately $86 million in the past year. Motif also has a storage facility in London, Ontario, which Organigram plans to use as a distribution hub.

The Aylmer facility provides Organigram with monthly production of 1,350 kgs of distillate, 400 kgs of high-value hydrocarbon extracts, 750k infused pre-rolls capacity, and 1 million units of vape filling capacity.

The cannabis extractor can produce 1,350 kg of distillate per month and 400 kg of hydrocarbon-derived extracts. The company can also produce THCA, an increasingly popular cannabinoid among consumers.

Said Beena Goldenberg, CEO of Organigram: “The highly complementary acquisition of Motif establishes Organigram as Canada’s largest cannabis company by market share and accelerates our vision to be a leading cannabis company across all major categories, driven by a relentless focus on the consumer of today and tomorrow.”

Mario Naric, CEO and Founder of Motif, said: “This is a landmark transaction in our industry and the Motif team is thrilled to be joining forces with Organigram to create Canada’s undisputed leader with deep capabilities in all major cannabis categories.”

Organigram reported net revenue of $41.1 million for the third quarter of 2024 and net income of $2.8 million, compared to a loss of $213.5 million in the same reporting period in 2023.

The majority of the company’s net revenue for the three months ended June 30, 2024, came from sales in Canada’s non-medical “adult use” market ($36.5 million or 89%), while just 6% of sales ( $8.3 million) were to the international markets and 1% of sales ($325,000) were into Canada’s medical cannabis market.

Sale of cannabis flower was 58% of Organigram’s business in Q3 2024, at an average cost of $1.50 per gram, down from $1.67 per gram in the same quarter in 2023 and $1.51 from Q2 2024.

In May 2024, Organigram announced a three-year supply agreement with Avida Medical in the UK, with the potential to supply 1,700 kilograms of indoor-grown dried cannabis flower to Avida. In June, it announced a plan to acquire a minority stake in Berlin-based cannabis company Sanity Group, expanding Organigram’s footprint in Europe.

In August, Organigram announced new nanoemulsion technology in collaboration with British American Tobacco. Organigram was one of three Canadian cannabis companies named in a report from the Israeli government that proposes levies on Canadian cannabis products entering the country.

In September, Organigram closed on its second round of funding from British American Tobacco.

This is the second of three rounds of funding from BT DE Investments Inc., a wholly-owned subsidiary of BAT. Plans for the partnership between British American Tobacco and Organigram were announced in late 2023, with an investment of nearly $125 million from BAT.

At the time, Organigram said most of the $124.6 million investment would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion.

The first round of funding closed on January 23, 2024. The third round of funding is expected in early 2025.

Motif was the largest privately owned cannabis business in Canada prior to the completion of the transaction.

Entourage Health sees increased revenue from bulk sales and new value-focussed brand

Written by Sarah Clark on November 29, 2024. Posted in Financials.

Entourage Health Corp. reported a net loss and comprehensive loss of nearly $8.4 million from $13.6 million in revenue and $9.5 million in net revenue for the three months ended September 30, 2024 (Q3 2024).

Revenue was up from the previous quarter (Q2 2024) and the same quarter in the previous year (Q3 2023), which the company says is primarily due to an increase in bulk B2B sales.

The company sold nearly twice as much cannabis at twice the price compared to the same quarter last year. Kilograms equivalent sold rose by 59% to 6,246 kilograms compared to Q3 2023, while the weighted average cost per gram of inventory on hand increased by 93% from $0.58 to $1.12.

Net loss and comprehensive loss were also down from the previous year Q3 2023, and the previous quarter, which the company attributes in part to a recent increase in its adult use sales with the introduction of new products and operational enhancements.

Of the $9.5 million in net revenue, $3 million were medical sales, $5.5 million were adult-use sales, and about $1.1 million were bulk sales. Medical sales were down year-over-year by 7%, and adult-use sales declined by just 1%. There were no recorded bulk sales in the same quarter in the previous year.

The company says the decrease in medical sales is due to lower patient renewal rates and reduced basket sizes, which it says is consistent with seasonality experienced in previous years.

The average selling price per gram for medical sales was $2.85 in the most recent quarter, $1.91 for adult use sales and $0.46 in bulk sales. The average selling price for medical use was up 5%, and also down 5% for adult use year-over-year. The average selling price (net of excise taxes) per gram declined from $2.23 in Q3 2023 to $1.53 in Q3 2024.

The company attributes the overall decline in the selling price for adult-use cannabis to the higher proportion of sales in its value-focused Dime Bag brand.

“Our increase in net revenue for Q3 reflects the success of our strategic shift into different markets, allowing us to diversify and tap into new opportunities,” said Vaani Maharaj, CFO of Entourage. “While the adult-use and medical segments faced shifts in market dynamics, initiatives like the launch of our Dime Bag value brand are helping us address evolving consumer needs and expand into new segments. These efforts demonstrate our adaptability and commitment to growth in a competitive industry.”

The company’s selling, general and administrative expenses, including salaries and benefits, dropped by 32% year-over-year.

The company sells under the brands Color Cannabis, Saturday Cannabis, and Dime Bag, and under Starseed Medicinal in the medical cannabis stream. It also sells products under its health and wellness brand Syndicate Cannabis.

As of September 30, 2024, Entourage held adult-use distribution agreements in Ontario, Quebec, Alberta, Manitoba, Saskatchewan, and British Columbia. The company sells dried cannabis flower, pre-rolls, vapes, cannabis oils, topicals, edibles, and a “micro inhaler”.

Entourage is now producing over two million cannabis pre-rolls per month.

Ayurcann reports record sales growth, but continued loss in Q1 2025

Written by Sarah Clark on November 29, 2024. Posted in Financials.

Ayurcann Holdings Corp. reported a net loss of $356,711 from $14.8 million in gross revenue and $8.3 million in net revenue for the three months that ended September 30, 2024 (Q1 2025).

This represented a 25% increase in gross revenue compared to the same reporting period from last year (Q1 2024). The company’s net loss in the most recent quarter was a significant improvement on the $2.7 million loss the company reported in the previous quarter ended June 30, 2024, but an increase from the $208,999 loss reported in the same period in the last year.

Excise fees for the three months ended September 30 were nearly $6.4 million. Most of the company’s product sales were B2C ($14.1 million) while B2B sales were $188,566.

As of the three months ended September 30, 2024, the company’s accumulated deficit was $14.7 million, primarily due to a reverse takeover transaction from 2021.

Ayurcann was the number one producer of vapes in Ontario and a top five pre-roll manufacturer by volume in Ontario during the most recent reporting period, based on data from Hifyre IQ and the Ontario Cannabis Store Data, respectively.

“Our business model and disciplined execution have enabled Ayurcann to expand both locally and nationally,” said Igal Sudman, Ayrucann CEO in a press release. “By focusing on innovation, building strong partnerships, and growing our signature brands—such as Fuego, Xplor, Xplor LevelX, and Happy & Stoned—we continue to deliver consistent quarter-over-quarter growth. Our vision remains clear: to become a dominant player in the cannabis industry.”

The company has also announced the appointment of Yisroel Zuchter as Ayurcann’s new CFO, replacing Roman Buzaker, effective December 2, 2024. Buzaker will remain the company’s President, COO, and a director of the Company.

In a recent investor presentation, the company said it has over 70% Canada-wide store penetration, with products in Ontario, Alberta, BC, Saskatchewan, Manitoba, New Brunswick, and Yukon, with over 80 unique SKUs. Over half of the company’s sales (55%) were in Ontario.

Ayurcann recently reported a nearly $4 million net loss for its year-end fiscal filing.

MTL Cannabis reports record Q2 2025 revenue

Written by Sarah Clark on November 28, 2024. Posted in Financials.

MTL Cannabis Corp brought in $1.3 million in net income from $26.4 million in total revenue for the three months ended September 30, 2024 (Q2 2025).

This represented an increase in total revenue from the previous quarter ($25.8 million in Q1 2024) and the same quarter in 2023 ($24.2 million in Q2 2023). However, the company saw net income drop from $2.2 million in Q1 2024 and $3.4 million in Q2 2023, the latter representing a 63% year-over-year decline.

The company incurred nearly $5.6 million in excise tax in the most recent quarter.

As of September 30, 2024, MTL had an expected yield of 562 grams of dried flower per plant, up from 548 grams as of March 31, 2024. The estimated selling price was $1.79 per gram of dried flower as of September 30, up from $1.76 in the previous quarter. The cost to complete and sell a gram of cannabis was $0.80 per gram dried flower in the most recent quarter, down from $0.87 in the previous quarter.

“We are immensely proud of our record-breaking results this quarter, demonstrating momentum in our strategic growth and ability to deliver sustainable value for shareholders,” said Michael Perron, CEO of MTL, in a press release. “These results reflect the high quality of our team and their efforts to deliver the best products and services to our customers and medical patients.”

MTL is the parent company of: Montréal Medical Cannabis Inc., a licensed producer operating from a 57,000 sq ft licensed indoor grow facility in Pointe Claire, Québec; Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Québec, growing best-in-class indoor cannabis in its 64,000 sq. ft. production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions.

As of September 30, 2024, MTL now has an estimated total production capacity of 19,500 kg per annum after recently completed retrofits and expansions of both Abba and ICM, representing an additional estimated 2,500 kg and 8,000 kg, respectively.

In addition to selling cannabis products in the Canadian medical and non-medical “adult use” market, MTL has established export channels into Germany, Australia, Poland, Portugal, and the UK. The company says it has completed several shipments focused on the German market.

Dried flower, pre-rolls, and hash products represent more than 70% of MTL’s sales in both the Canadian and international markets.

The Good Shroom reports net profits of $40,000 for 2024

Written by Sarah Clark on November 27, 2024. Posted in Financials.

The Good Shroom Co. Inc., producing cannabis and cannabis-infused products for the Canadian market, reported $3.9 million in net revenue in the year ended July 31, 2024, with net profits of $40,603.

This is up significantly compared to a net loss of $452,140 in the previous year.

The majority of The Good Shroom’s sales (more than 96%) are from cannabis products. In addition to cannabis products, The Good Shroom also produces a line of branded instant tea and coffee-based beverages under the brand Teonan.

The company currently sells cannabis products primarily in Quebec but also has some listings in Alberta, Ontario, and Prince Edward Island as of Q1 of the current fiscal year. They sell edibles, capsules, and dried flower, as well as hash-infused pre-rolls.

A total of 89% of the company’s revenues were from one customer (93% for the year ended July 31, 2023). The Good Shroom sells under the brand Seul CBD. Suel CBD also offers products under the Astro Nutas, Nordique Royale, Spring Hill, Velada, and OG Jerk brands, including an array of uniquely infused edibles like beef jerky and pepperettes.

“Achieving profitability in an industry as challenging as ours is an accomplishment we take pride in,” said Eric Ronsse, CEO of The Good Shroom Co. Inc. “While this milestone reflects the strength of our asset-light business model and financial discipline, our focus remains firmly on the future—continuing to innovate, expand, and deliver lasting value.”

One way The Good Shroom says it has increased profit margins in its most recent fiscal year is by focusing on products with a lower federal excise rate like dried flower or edibles, rather than extracts or concentrates like hash. This resulted in an excise tax cost as of July 31, 2024, at $742,623 compared to $897,338 in the prior year.

“For example,” the company notes in its report, “typically a hash product in the concentrates category, depending on size, would cost $6-$9/unit in excise. However, by comparison all products in dried flower categories of standard 3.5 gram size only cost $3.50/unit in excise. Others such as edible cannabis products also have much lower excise, on average $0.10/unit, and CBD-only products have no excise at all.”

Sales of The Good Shroom’s Teonan instant beverages were $157,258 for the year ended July 31, 2024, compared to $184,674 for the comparable period last year.

The company was first licensed as a micro processor in November 2019 before scaling up to a standard processing licence in October 2023. The Good Shroom recently released a THC-infused oral pouch in the Alberta market.

Year-over-year increase in both net revenue, loss for Greenway in Q2 2025

Written by Sarah Clark on November 27, 2024. Posted in Financials.

The Greenway Greenhouse Cannabis Corporation reported net revenue of $1.8 million in Q2 2025 but an operating loss of $770,347 and loss and comprehensive loss of $1 million.

Gross and net revenue for the Ontario cannabis company were up from the same period in the previous year (Q2 2024), from nearly $1.2 million. However, loss also increased year-over-year, up from a $662,213 loss and comprehensive loss for the three months ending September 30, 2023.

However, for the six months ending September 30, 2024, the company’s net revenue was $4.2 million, up from $2.4 million in the six months ended September 30, 2023. Loss income and comprehensive loss income for the former was down slightly ($1.6 million) from the latter ($1.8 million).

The company says its net revenue over the last eight quarters has fluctuated due to the volatile conditions of the wholesale cannabis market and seasonality. It attributes the fluctuation in its net income (loss) to unrealized gains from biological assets, share-based compensation, and gross margin fluctuations over the last eight quarters.

Greenway’s primary business model is to cultivate, bulk package, and wholesale dry flower to other cannabis companies. In addition to wholesale sales, Greenway sells cannabis through its brands, EPIC Cannabis Co. and MillRite, with pre-rolls and 7-gram SKUs of flower. MillRite saw a 71% increase in total units sold from the previous quarter (Q1 2025).

The company has a licensed indoor nursery as well as a separate licensed greenhouse for standard cultivation. The nursery is currently used to store and maintain mother plants and genetics and to propagate clones and vegetative plants for the greenhouse.

The nursery allows Greenway to use nearly all of its 167,000 square foot canopy at the greenhouse for flowering cannabis.

On October 4, 2024, the company announced that it had surpassed 30,000 kg of product sold since its inception. Net sales price per gram increased to $1.22 in Q2 2025 from $0.84 in Q3 2024.

The estimated selling price of dry flower per gram was $1.10 in 2024 and 2023. The expected average yield of grams per plant in 2024 was 125 grams, down from 170 grams in 2023. The post-harvest cost to complete and sell, per gram, increased to $0.55 in 2024 from $0.45 in 2023.

Greenway says the average price on the wholesale cannabis market price saw an increase over the previous year, which it primarily attributes to the reduction in total production capacity in the industry as some cannabis companies disappear, and an increased demand for Canadian cannabis on the international market, a trend seen across the industry.

“As a team, we are elated to see that last year’s revenues increased by over 50% year over year, and by over 70% so far this fiscal year,” said Jamie D’Alimonte, CEO of Greenway. “We have sold more product at a higher average price this year than last, and this performance reflects our focus and commitment to producing quality cannabis, and finding the best partners and pathways to bring it to consumers. We have also seen our MillRite brand maintain itself as the #2 ranked pre-roll in its size category, while achieving the #2 Indica and Sativa pre-roll in the size category over the same time. Quarter over quarter, we have seen the total number of units sold increase by over 70%. Our plan to deliver high quality, affordable products to Ontario users is working. I look forward to introducing additional SKUs in the New Year.”

Cannara Biotech reports net income of $5 million in Q4 2024

Written by Sarah Clark on November 25, 2024. Posted in Financials.

Cannara Biotech Inc. brought in $22.1 million in net revenue from its cannabis operations in the three months ended August 31, 2024 (Q4 2024), and a net income of $5 million.

This represented a year-over-year increase in net revenue for the company compared to $17.4 million in net revenue in the same quarter in the previous year, but a decrease in net income from $5.5 million.

Cannara owns and operates two Quebec‐based cultivation facilities. The first, in Farnham, is 635,000 sq ft, of which 170,000 sq ft is licensed for cultivation, with 414,000 sq ft of leased warehouse space.

The second, a greenhouse facility in Valleyfield, is home to 600,000 sq ft of growing space and a 200,000 sq ft rooftop greenhouse.

The company also has two real estate operations related to the Farnham Facility.

Gross revenue from Cannara’s real estate operations for Q4 2024 was $943,948, while net income was $876,810. This represents a slight increase from the same period in 2023, with net revenue of $928,449 and net income of $861,315.

Total net income for Cannara, including both its cannabis operations and retail holdings, minus a $2.1 million net loss categorized as “other,” was $3.8 million for the three months ended August 31, 2024.

On August 16, 2024, Cannara announced that it had achieved its highest national market share of 3.2% in July 2024, based on estimated sales data provided by HiFyre Retail Analytics, Licensed Producer Sales Nationally, for the period of July 2024, placing Cannara as the 9th largest licensed producer in Canada by market share.

As of August 31, 2024, Cannara’s distribution network services seven provinces: Québec, Ontario, Saskatchewan, Alberta, British Columbia, Manitoba, and Nova Scotia. Québec and Ontario are currently the most significant markets. The company sells under the brands Tribal, Nugz, and Orchid CBD. Cannara has also completed sales of cannabis to Israel.

As of August 31, 2024, the Company and its subsidiaries had 363 employees.

“Fiscal 2024 was a transformative year for Cannara, showcasing the resilience of our business model and the strength of our execution strategy,” said Zohar Krivorot, President & CEO. “With a 3.2% national market share and a leading position in Québec, we have proven our ability to deliver sustained growth in a challenging cannabis market. By investing in our state-of-the-art production facilities, powered by the lowest-cost electricity in the country, we continue to produce premium cannabis products at an unmatched value. Our three flagship brands—Tribal, Nugz, and Orchid CBD—launched in 2021, have not only endured the challenges of this competitive industry but continue to thrive, achieving quarter-over-quarter growth.”

The Hash Co completes asset transfer, name change

Written by Sarah Clark on November 22, 2024. Posted in Financials.

Following an announcement in May, the company formerly known as The Hash Co. has now sold most of its assets to a number company (1000592191 Ontario Inc.) and changed its name to Street Capital Inc.

The Hash Co. announced on May 29, 2024, that it had entered into an asset purchase agreement with 1000592191 Ontario Inc. (191 Ontario). This included physical inventory and intellectual property relating to HashCo’s business for a total cash purchase price of $350,000 plus the value of the Company’s physical inventory on closing.

In a subsequent press release on November 18, the asset transfer was said to be to 1000894579 Ontario Inc. (579 Ontario). The asset sale constitutes a “related party transaction” of the company as the vice president of production of Hash Co./Streets Capital is also the president and a director of 579 Ontario.

The Hash Co had relied on a partnership with Ontario-based Medz Cannabis Inc. for processing

The company’s cash balance as of its most recent quarterly report, June 30, 2024, was $9,401, representing a decrease of $15,466 from $24,867 as of December 31, 2023.

Total assets were $176,187, representing a decrease of $85,548 from $261,735 as of December 31, 2023.

Total liabilities were $705,096, representing an increase of $47,138 from $657,958 as of December 31, 2023.

Product sales for the three months ended June 30, 2024, were $127,950, up from $95,463 in the same quarter in 2023. Net loss and comprehensive loss for the three months ended June 30, 2024, was $22,514, compared to a loss of $211,443 in the same period in the previous year.

Simply Solventless reports another profitable quarter as sales continue to increase

Written by Sarah Clark on November 21, 2024. Posted in Financials.

Simply Solventless Concentrates Ltd. brought in net revenue of nearly $5 million for the three months ended September 30, 2024 (Q3 2024), with gross profits of almost $2 million and $424,446 in net and comprehensive income.

Gross revenue for the Calgary-based company increased 70% from the previous quarter (Q2 2024), net revenue increased 71%,, and gross margins increased 14%.

Year-over-year, net revenue increased by about 75% from $1.3 million in Q3 2023, while gross profit increased by approximately 72% from $547,009. Net income increased by about 71% from $121,216 in Q3 2023.

This most recent quarter for Simply Solventless Concentrates (SSC) Q3 2024 is the first quarter to include the operations of CannMart Inc., which SSC acquired on September 12, 2024.

On September 25, SSC also announced plans to acquire ANC Inc., another Alberta-based cannabis company focusing on pre-roll manufacturing. However, the deal didn’t close until October 18, 2024, excluding it from the most recent quarterly report ending September 30.

Jeff Swainson, President & CEO of SSC, stated: “Q3 2024 was another transformational quarter for SSC as we closed an oversubscribed $3.85 million financing, closed the CannMart acquisition, integrated CannMart’s operations, announced the acquisition of ANC, and again exceeded quarterly guidance. In the last three quarters we have profitably increased gross revenue from $7.0 million in the fiscal year 2023 to $28.6 million annualized in Q3 2024, a growth rate of 309%, with annualized Q3 2024 NNI of $0.06 per share. More importantly, we are working hard to achieve another strong quarter in Q4 2024, which will include the operations of both CannMart and ANC. We will issue Q4 2024 guidance in the near future.”

ANC was first licensed as a micro cultivator in 2019 and later received its micro processing licence. The company then scaled up to a standard licence, focusing on seed production and pre-roll manufacturing, something they have become well-known for in the industry. The acquisition will give SCC the ability to manufacture pre-rolls in-house, giving the parent company a new avenue for its own products to reach consumers.

SCC is known for brands like Astrolab and Frootyhooty. CannMart has operated as CannMart, CannMart Marketplace, CannMart Labs, 1000501971 Ontario Inc (Zest), and CannMart MD. Net revenue from CannMart in 2023 was $13.5 million, which came from sales to its major wholesale customers, but that year it reported a net loss of $6.3 million.

Decibel: Q3 2024 marks shift in focus from domestic to international market

Written by Sarah Clark on November 21, 2024. Posted in Financials.

Decibel Cannabis Company Inc. brought in $24.1 million in net revenue for the three months ended September 30, 2024, with a net loss of $585,000 in their most recent Q3 2024 financial report.

Gross revenue for the cannabis company was down 13% year-over-year, from $46.5 million in Q3 2023 to $36.9 million in Q3 2024, which the company says is primarily due to a decline in net Canadian recreational sales and international sales.

This was an increase in net revenue from the previous quarter ($22.1 million) but a decline in net income of $122,000.

Net Canadian recreational sales for the three months ended September 30, 2024, were $23.8 million, a decrease of 12% from the same period in 2023. Decibel says the decline was driven by increased competition in the infused pre-roll segment, and a seasonal slowdown in demand for pre-roll and vape products.

International sales for the three months ended September 30, 2024 were $309,000, down from $500,000 in Q3 2023. Decibel attributed the decrease to the halt of exports to Israel as the Company transitioned to a new partner. This was partially offset by exports to new partners in the United Kingdom and Australia.

Calgary-based Decibel is one of the Canadian companies named in an investigation by the Israeli government into claims of “product dumping”, with the Israeli government initially recommending a floating levy or tariff of 63% for Decibel products sold in Israel. The most recent recommendation dropped that proposed rate to 2%.

Decibel incurred nearly $12.8 million in excise taxes in the most recent quarter, 34.9% of its gross Canadian recreational sales.

“Decibel has been very deliberate about reducing our current liabilities by ~5mm this quarter. Maintaining discipline over time will result in a stronger balance sheet,” stated Decibel CEO Benjamin Sze in a company press release. “This marks the last quarter where our primary focus is on Canadian domestic recreational sales. While we continue to integrate AgMedica into our portfolio, it is encouraging to see there is significant demand internationally for Decibel flower.”

Decibel is a vertically integrated cannabis company with two licensed cultivation facilities and a licensed manufacturing facility. Decibel also acquired a third licensed cultivation facility upon acquiring AgMedica Bioscience Ltd., a subsidiary of Atlas Global Brands, which the company completed on October 28, 2024 (Q4 2024). Decibel also acquired GreenSeal Nursery, Ltd., a licensed nursery, in connection with the deal.

AgMedica is a licensed cannabis producer focusing on international distribution to seven countries, including Australia, Denmark, Germany, Israel, Norway, Spain, and the United Kingdom.

Quebec cannabis business facing excise challenges

Written by Staff on November 21, 2024. Posted in Financials.

Quebec cannabis business QcGoldtech, connected to former Montreal police chief Yvan Delorme, owes more than half a million dollars in unpaid taxes, reports The Montreal Journal.

The company allegedly owes $217,000 under the Quebec Sales Tax Act and reportedly failed to return to the state the amounts it collected in sales tax between March and August 2024. The federal government says it is owed nearly $294,000 in unpaid taxes between March 1 and September 30 of this year.

Revenu Québec and the Canada Revenue Agency established a “hypotheque legal”, giving them creditor’s rights against three pieces of property and a facility connected to QcGoldtech, continues the exclusive report.

Delorme was director of the Montreal Police Department from 2005 to 2010 where he worked for nearly thirty years.

The company’s communications manager told the Montreal Journal that with a high excise tax and no financial assistance from the provincial government, its finances “remain a constant challenge.”

The company has a facility in Saint-André-Avellin, a former slaughterhouse, and in Notre-Dame-de-la-Paix. It also operates with an outdoor licence in Saint-Sulpice.

Both facilities offer dozens of jobs in the Petite-Nation region. The SQDC carries several products from QcGoldtech, including dried flower, pre-rolls, and oils.

The last press release posted on the company website was in 2022. It’s currently currently hiring for three positions.

According to recently tabled documents in the House of Commons, $4,718,514 worth of excise tax on cannabis has been written off as uncollectible as of September 21, 2024. All 12 companies with excise tax written off as uncollectible by the CRA are located in Ontario.

The largest amount for a single company’s uncollected excise tax debt is $1,922,621 from April 2024, while the smallest is $136,095 from September 2024. Of the 11 companies listed, seven show a debt incurred in 2024, three from 2023, and one from 2022.

As of January 31, 2024, the federal government says it has collected $3.4 billion ($3,418,794,702) in federal cannabis excise, with nearly $2.7 billion going back to the provinces and territories ($2,659,784,658).

These amounts reflect the CRA’s administration of Cannabis Duty and Information Returns provided by the licensed cultivators, producers, and packagers of cannabis and/or cannabis products on behalf of the federal, provincial, and territorial governments.

Canada’s federal excise tax for dried cannabis flower is effectively $1 per gram, with 75% of this going back to the provinces, and an ad valorem rate of 2.5% of the dutiable amount for the cannabis product. (Other cannabis products are taxed at a flat rate of $0.0025/milligram of total THC).

CCAA filings for cannabis companies have shown significant amounts of unpaid cannabis taxes owed to the Canada Revenue Agency. One recent CCAA listing showed $345,622.38 owed to the CRA. In a recent creditor protection filing, another company showed nearly $5.4 million owed to the CRA for source deductions and excise tax.

According to Insolvency Insider, 47 cannabis-related businesses in Canada have filed for creditor protection (CCAA) since 2019. Another ten have filed for bankruptcy, 13 have filed for receivership, and 21 have filed for a Notice of Intention (NOI) to make a Proposal under the Bankruptcy and Insolvency Act, allowing financially troubled corporations to restructure their affairs.

Herbal Dispatch sees year-over-year growth driven by increased domestic sales, exports

Written by Sarah Clark on November 20, 2024. Posted in Financials.

Herbal Dispatch brought in $3.3 million in gross revenue and $2.7 in net revenue for the three months ended September 30, 2024 (Q3 2024), for a net loss of $388,156.

Gross sales for the cannabis e-commerce platform and non-medical cannabis provider were up 120% from the same quarter in the previous year ($1.5 million). Net revenue grew to $2.7 million in the third quarter of 2024 from $1.2 million in Q3 2023 (up 132%), and to $7.6 million year-to-date in 2024 from $2.6 million last year (up 191%).

However, gross sales and net revenue were both down from the previous quarter (Q2 2024), as was net income, which was $59,000 in the previous three-month period, the company’s only net gain in the past eight quarters.

The company says its year-over-year growth in recreational cannabis sales was driven by several factors, including the expansion of its listings in new retail locations across British Columbia, the expansion of sales to include the Liquor Distribution Branch of the Government of British Columbia commencing in Q3 last year, and the introduction of new products and brands, including the “Happy Hour” brand launched earlier this year.

The company says it has products in 1,740 stores in Ontario, 486 in BC, 187 in Manitoba, and more than 3,800 across Canada. Herbal Dispatch sells under the brands HD Craft, Happy Hour, Golden Spruce, Nature’s nu, and Hero Dispatch.

The BC-based cannabis company also saw growth in export sales, propelled by strong demand and growing customer relationships with customers in Australia and Portugal.

“We are encouraged by our strong revenue growth and achieving positive adjusted EBITDA,” said Philip Campbell, Herbal Dispatch’s President and CEO. “As we look toward 2025, we are focused on developing new profitable sales channels and efficiently scaling our operations. Our goals include expanding domestic sales across Canada and growing our export sales in both established markets, such as Australia and Portugal, and new international markets.”

Alberta sold $673.5 million worth of cannabis in 2023-2024

Written by David Brown on November 20, 2024. Posted in Alberta, Cannabis News, Financials.

The Alberta Gaming, Liquor and Cannabis Commission (AGLC) brought in $63.9 million in net revenue from $673.5 million worth of cannabis sold in the province for the year ended on March 31, 2024, reporting $10.8 million in net income after expenses.

This is up from the $60.4 million in net revenue in the previous year but down from the $18 million in net revenue for the 2022-2023 fiscal year. This is due to higher operating expenses and significantly lower profit from operations in the most recent year.

This figure does not include an additional $210 million in cannabis tax revenue collected by the Government of Alberta for the year ending March 31, 2024. The province’s additional 6% markup on cannabis products contributed to net revenue of $38.1 million.

Net income for the AGLC for all the files it manages (cannabis, liquor, and gaming) was $2.3 billion in the most recent fiscal year.

The 2022-2023 fiscal year was the AGLC’s first profitable year from cannabis sales.

The number of licensed cannabis stores at the end of March 2024 was down slightly from previous years, with 752 compared to 756 in the two previous years.

Every product category except for dried flower, milled flower, beverages, topicals and seeds saw total dollars sold increase.

Sales of dried flower were relatively flat at $207.4 million compared to $206.9 million in the 2022-2023 fiscal year, and down from $226.5 million in 2021-2022, likely reflecting ongoing price compression as well as a shift in the market to concentrates and vape pens.

Despite this decline in total revenue, the volume of dried cannabis sold continued to increase, reflecting declining retail prices. The province sold 65,127 kg in the 2024 fiscal year, up from 59,121 in the previous year and 59,490 in 2022.

The number of vapes sold and total sales also increased, as did pre-rolls, extracts (significantly so), edibles, and beverages.

Other highlights from the AGLC’s 2023-2024 fiscal report:

The AGLC estimates it saved the cannabis industry more than $4 million through the reduction of listing fees for cannabis SKUs, among other procedural changes.
Another nearly $3 million in estimated cost savings for the industry through the amendment of storage requirements.
Alberta expanded access to legally regulated cannabis with temporary retail sales at events (i.e. festivals) and extended hours of operations approved, increasing revenue-generating opportunities.
The AGLC conducted 3,442 inspections of cannabis retailers, with a 98% compliance rate.
The province spent $2.1 million on its Cannabis Sense education program.
The province is currently developing a recycling plan that will allow for cannabis containers to be recycled.
As of March 31, 2024, Alberta had 2,356 cannabis SKUs listed for sale, up from 2,085 in 2023 and 1,664 in 2022.

Noya Holdings seeking approval of $3.8 million stalking horse deal, extension of stay of proceedings

Written by Sarah Clark on November 19, 2024. Posted in Financials.

Following filing for creditor protection earlier this month, Noya Holdings Inc. and Noya Cannabis Inc. are seeking approval of a stalking horse deal for approximately $3.8 million from an unnamed company.

The company is also seeking an order extending the stay of proceedings to and including March 7, 2025.

Filed on behalf of Noya on November 12, the document states that the stalking horse purchaser may be a related party to the company. A stalking horse bid is a bid on a bankrupt company’s assets and is the first bid offered to a bankrupt company before a public auction takes place.

Noya filed for creditor protection after its senior secured creditor, Lending Stream Inc., demanded payment and issued BIA notices regarding these debts in September. The owner of Lending Stream is the brother of the owner of the Applicants.

Another secured creditor that provided loans to NHI 1955185 Ontario Inc. is another secured creditor. As of September 30, 2024, 195 had loaned approximately $3.8 million to NHI, the approximate dollar figure associated with the proposed stalking horse deal. The numbered company is owned or controlled by the parents or relatives of the owner of the applicants.

A stalking horse agreement is usually structured as a purchase of the company’s retained assets by way of a share sale and “reverse” vesting approval order.

The proposed timeline of the stalking horse sales process is a notice of sales process published on December 6, 2024, finalizing the schedule of assumed liabilities in the stalking horse agreement by December 31, 2024, with a bid deadline of January 27, 2025, an auction on Wednesday, February 5, 2025, and a hearing of the ale approval motion no later than February 14, 2024.

Noya also seeks $400,000 to be made available through a DIP loan for the company’s operation throughout the sale process. The company argues that without the loan, it will be unable to continue to operate or complete the sale.

Noya Holdings Inc. (NHI) and Noya Cannabis Inc. have applied for creditor protection in an initial order posted on November 6, 2024. Noya’s monitor in the case is BDO Canada Limited.

NHI is the holding company, and through its wholly-owned subsidiary, NCI, it operates a cannabis manufacturing and production business. The affidavit of Noya CEO Zaid Reda says the company’s business has focussed primarily on being a wholesale business-to-business service or product provider over time. The company is insolvent and faces liquidity challenges. A motion record for the company says the primary value of Noya is “dependent on a few, key, large customers and derived from its ability to seamlessly and continuously fulfil the order requirements of these key customers.”

If it is unable to continue operations, it could lose these key wholesale customers.

NCI currently employs 18 employees. The unnamed stalking horse purchaser is expected to maintain the employment of “substantially all” of the employees.

NCI blames its current position on “lower than expected demand, oversupply and downward price pressure in domestic markets.” as well as the ongoing illegal cannabis market which it says has impacted demand for legal products.

NCI’s federal cannabis production licence from Health Canada is currently scheduled to expire on December 21, 2028.

Avicanna reports $6.3 million in net revenue and decreasing losses in Q3 2024

Written by Sarah Clark on November 15, 2024. Posted in Financials.

Avicanna Inc. reported net revenues of $6.3 million at the end of Q3 2024, with a comprehensive loss of $922,077, down from a loss of just over $1 million in the same period in 2023 and from a $2.8 million loss in the previous quarter.

The company is an international biopharmaceutical company focused on cannabinoid-based products and operates the medical cannabis care platform MyMedi.ca, the Medical Cannabis brand RHO Phyto, as well as focusing on R&D and clinical development.

The company acquired Medical Cannabis by Shoppers Drug Mart in 2023, which it transitioned to the MyMedi platform.

North American net revenue for the nine months ended September 30, 2024, was $17.5 million, compared to $10.4 million for the nine months ended September 30, 2023. The increase over the nine-month period was a direct result of the acquisition of Medical Cannabis by Shoppers and the introduction of MyMedi.

Of those, revenue channels in Canada for the company sold 144,756 units in the nine months ended September 30, 2024, compared to 118,265 in the same period in 2023, a 22% increase.

The company reported a $2.8 million gross margin by segment in North America in the three months ended September 30, 2024, or 51%, for a consolidated gross margin of $3.6 million including its presence in South America.

Tilray’s Aphria RX facility launches its first German-grown cannabis

Written by David Brown on November 15, 2024. Posted in Cannabis News.

Tilray Medical has launched its first commercial-grown medical cannabis flowers from its Aphria RX GmbH facility in Germany.

The product will be sold as “Grown in Germany”, explains Tilray’s chief strategy officer and head of international, Denise Faltischek.

“We are excited to launch our Made in Germany premium cannabis products, which marks a significant milestone in our mission to deliver the highest-quality medical cannabis products to patients in Germany,” adding that this helps expand the company’s brand and products in the German market.

Tilray received the first cannabis cultivation licence issued under Germany’s new Cannabis Act in July. This licence allows Aphria RX to cultivate and manufacture cannabis for medical purposes in Germany.

The American cannabis company, which operates in Canada, the United States, Europe, Australia, and Latin America, was the first to receive a cannabis production licence in the country. Canadian cannabis company Aurora and the German company Demecan are also now licensed for production in the country.

In February 2024, Germany passed the German Medical Cannabis Act, expanding the country’s medical cannabis laws.

Aphria RX has been present in the medical cannabis space in Germany since March 2019, when the company was awarded a licence for the cultivation of medical cannabis in Germany from the German Federal Institute for Drugs and Medical Devices (the “BfArM”).

Anyone who wishes to cultivate, produce, trade, import, export, dispense, sell, otherwise place on the market, obtain or acquire cannabis for medicinal purposes or cannabis for medical-scientific purposes in Germany requires a permit from the German Federal Institute for Drugs and Medical Devices.

Delta 9 selects bid from SISP

Written by Sarah Clark on November 15, 2024. Posted in Financials.

Delta 9 Bio-Tech has selected a bid for the purchase of some of its assets through the SISP process that began earlier this year.

If approved by the court, the purchaser will receive 17 of Delta 9’s grow pods, along with intellectual property and some enumerated personal property, as part of the sales and investment solicitation process.

The application will be held before the court on November 15.

On July 15, 2024, Delta 9 Bio-Tech Inc. and four related entities were granted an initial order by the Court of King’s Bench of Alberta under the Companies’ Creditors Arrangement Act (Canada) (CCAA).

On July 24, 2024, the Court approved a sales and investment solicitation process (SISP) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of Bio-Tech’s assets and business operations.

On September 11, 2024, the court granted an order extending Delta 9’s stay of proceedings pursuant to the Amended and Restated Initial Order (ARIO) first granted in July, up to and including November 1, 2024. That extension was to November 1 and has now been extended to January 31, 2025.

Among Delta 9 Bio-Tech’s assets is a 95,000-square-foot cannabis cultivation and processing facility located in Winnipeg, Manitoba, which contains 297 modular “grow pods”. These are retrofitted shipping containers used by some micro cultivators. The company says they are customized for flowering, trimming, cloning, research, testing, support, and storage.

Delta 9 is a vertically integrated group of companies that touches cannabis cultivation, processing, extraction, wholesale distribution, retail sales, and business-to-business sales.

Through the SISP process, Delta 9 and its Monitor selected the highest and only serious bid, the one for 17 of the grow pods along with related intellectual property. The bid price has been redacted in the monitor’s report.

Delta 9’s Monitor sought confirmation from SNDL, the first-ranking secured creditor of the purchased assets, but had not yet received a response when the monitor’s fourth report was filed on November 13.

In a press release earlier in July, Delta 9 said that the CCAA process was in the best interest of the company and its shareholders, especially in light of recent “aggressive” actions by its creditors, namely recent demand notices from SNDL Inc. on May 21 and July 12 and SNDL’s recent acquisition of all the Company’s senior secured debt for $21 million.

SQDC records record profits as consumer demand shifts to lower-margin products

Written by David Brown on November 14, 2024. Posted in Financials.

The Société québécoise du cannabis (SQDC) recorded a new record for net revenue in its second quarterly report for the 2024-2025 fiscal year.

The provincial cannabis agency’s total sales were $173.7 million in Q2, 34,675 kg of cannabis, up from $151.7 million from 27,498 kg in the same quarter of the previous fiscal year, an increase of 26%. This resulted in net and overall sales of $29.4 million compared to $24.9 million for the same quarter of the previous fiscal year, a nearly 15% increase from Q2 2023.

The SQDC documented 4.4 million transactions in the most recent quarter, compared to 3.6 million for the same quarter in the 2023-2024 fiscal year, at an average selling price of $5.76 per gram, all taxes included, for all cannabis products combined.

This is down from the average selling price of $6.34 per gram in Q2 2023, which the SQDC attributes to a growing demand for low-cost products and concentrate-type products that it says have a lower average selling price per gram than other product categories.

The SQDC opened two new locations in the most recent quarter, the Donnacona branch and its hundredth branch in Richelieu in Montérégie. The SQDC has not added many stores in the last few years, with the agency saying it is focussing more on refining the consumer experience in its stores rather than constant expansion.

In a recent interview with StratCann, SQDC president and CEO Suzanne Bergeron says the organization has spent the first six years of legalization gathering consumer data to better meet consumer needs, even within the sometimes strict confines of Quebec’s rules that ban many edibles, concentrates, and vape products.

“We’re starting to get a good amount of data on consumer preferences, what they like and dislike, [as well as] what keeps them in the illicit market vs coming into the SQDC,” she said. “Knowing that, we’re able to refine the strategy on how we’re going to adapt our stores so when they come in they feel welcome.”

The provincial government brought in $43.9 million in its share of cannabis taxes, while another $17.5 million went to the federal government. Cannabis sales in Quebec provided the provincial government with $73.3 million in revenue. The province says it reinvests these profits into prevention and research into cannabis.

Net sales in the most recent quarter were also up by one million from the previous quarter when the Société québécoise du cannabis brought in $23.9 million in net sales from $162.9 million in sales.

Medipharm Labs reports increased revenue, decreased losses in Q3 2024

Written by Sarah Clark on November 14, 2024. Posted in Financials.

Medipharm Labs brought in $9.8 million in net revenue in the three months ended September 30, 2024 (Q3 2024) and $3.1 million in gross profit, but a net loss of $2.8 million.

Net revenue was up 15% from $8.5 million in the same quarter the previous year, while net loss declined from $4.3 million. Gross profit increased year-over-year from $2.4 million and $3.4 million in the previous quarter (Q2 2024).

The bulk of the company’s net revenue came from sales into the Canadian market ($6.2 million), increased from $5.9 million in the same quarter in 2023. Another $2.5 million in sales were in Australia, up year-over-year from $2.2 million, $1 million in Germany (up from $319,000 in Q3 2023), and $62,000 in other international sales (up from $5,000).

Of the sales in the Canadian market, $1.7 million were in the adult use and wellness markets, while $3.7 million were in the medical markets.

Medipharm’s Beacon cannabis brand increased to $400,000 in the most recent quarter, up from $135,000 in all of 2023.

The company reported its best quarter wholesale sales ($2.5 million) in the Australian market in Q3 2024 since acquiring Beacon Medical Australia PTY Ltd. in the second quarter of 2023. Medipharm attributes this growth to the addition of new high-potency flower and the recent launch of cannabis oils, vapes, and live resin vape cartridges.

The company says it also has additional commitments for sales into new international markets and is currently completing various international regulatory registrations, including the UK, Brazil and New Zealand.

Medipharms also says the completion of its move of medical sales and distribution from its Hope, BC facility, the former Canna Farm facility, to Barrie, ON, has resulted in cost savings. The company still hopes to sell the Canna Farms facility, one of the first licensed in Canada.

Medipharms also operates Harvest Medicine Inc., a medical cannabis clinic. Although new medical registrations in Canada have declined, Medipharms says its medical sales have stayed consistent, showing good customer retention.

David Pidduck, CEO of MediPharm Labs, commented, “MediPharm accomplished several important milestones in Q3 that will position us well for profitability in 2025. MediPharm has successfully diversified its business. As a global GMP player, our international sales grew 37% vs. Q3 2023, resulting in over 35% of revenue from outside Canada.

“We have a strong presence in the Canadian medical channel and growing B2B sales. Additionally, MediPharm continues to launch new products and build on our very broad product line in the Canadian adult use and wellness channel. This diversity has contributed to our balance sheet strength and our ability to capitalize on future growth opportunities in various countries, product categories, and channels.”

MediPharm Labs was founded in 2015. The Barrie, Ontario facility holds GMP certifications from Health Canada, the Australian Therapeutic Goods Association, and ANVISA (Brazil). The Barrie Facility obtained EU-GMP certification from the LAVG in July 2024. These GMP certifications have been accepted in other international markets, such as Brazil and the European Union.

MediPharm owns two wholly-owned subsidiaries, Canna Farms and ABcann. ABcann’s operations focus on European Union Good Manufacturing Practices related to cultivation and packaging for international markets.

In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment Licence from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing Licence for the extraction of natural cannabinoids.

Record net revenue for Rubicon Organics despite softened demand and price compression in key markets

Written by Sarah Clark on November 14, 2024. Posted in British Columbia, Financials.

Rubicon Organics brought in $13.5 million in net revenue in Q3 2024, the three months ended September 30, 2024, its highest revenue in eight consecutive quarters, but a net loss of $168,498.

Net revenue was up compared to the same period in the previous year ($10 million) and the previous quarter ($12.1 million). Net losses have steadily declined over the last three quarters.

The BC-based certified organic cannabis producer has seen year-over-year quarterly revenue growth from Q1 2022 until Q2 2023, which the company attributes to increased demand in key provinces. In the most recent quarter, for the three months ending September 30, 2024, the company reported its highest net revenue achieved in one quarter.

Rubicon sells three flagship brands: their “super-premium” Simply Bare Organic, premium brand 1964 Supply Co, cannabis wellness brand Wildflower, and the Homestead Cannabis Supply brand. The company says it currently has over 294 unique SKUs available for sale across Canada, with over 99% coverage of the addressable market in both non-medical and medical sales channels.

Total operating expenses increased year-over-year from $3.4 million to $3.7 million, but general and administrative expenses decreased by $19,887. The company expects to continue its year-over-year growth in net revenue, much of this from its branded products that are produced using external capacity and thereby deliver lower gross margins.

In the last two quarters of 2023, Rubicon saw a decline in net revenue, which it says is due to softened demand and price compression in Alberta, Ontario, and Quebec, as well as overall economic challenges facing consumers.

The company incurred $4.3 million in excise taxes from $17.8 million in product sales, up from $2.9 million in excise taxes from $13 million in sales in the three months that ended September 30, 2023.

“Rubicon Organics record net revenue for both Q3 and year-to-date 2024 reflects our strength and position as Canada’s leading premium House of Brands,” said company CFO Janis Risbin. “Rubicon Organics continues to innovate and expand our product offerings, solidifying a strong market share in premium flower, pre-rolls, edibles, and more. I’m particularly proud of the success of our 2024 vape launch, which has already achieved 55% distribution in just six months. Looking ahead, we expect to drive further growth in Canada and beyond, as we intend for new market entry in 2025.”

Rubicon’s 125,000-square-foot hybrid greenhouse is certified by the Fraser Valley Organic Producers Association (FVOPA) for organic cannabis cultivation.

Cronos reports increased cannabis sales in Canada, abroad

Written by Sarah Clark on November 12, 2024. Posted in Financials.

The Cronos Group reported USD$34.3 million in net revenue, $3.6 million in gross profit, and $7.3 million in net income in its third quarter 2024 report for the three months ended September 30, 2024 (all figures in USD).

This represented a significant year-over-year increase in net revenue and income for the cannabis producer, with a 38% increase of $9.5 million from the three months ended September 30, 2023. Cronos attributes this to an increase in sales domestically and in the international market.

However, gross profit was down 9% year-over-year, representing a decrease of $0.4 million from the third quarter in 2023. Cronos attributes this loss mainly to inventory-related purchase accounting adjustments resulting from the Cronos GrowCo transaction on July 1, 2024. This loss was also somewhat offset by higher cannabis flower and extract sales in the Canadian market, higher cannabis flower sales in Israel, and higher cannabis flower sales in other countries.

The bulk of Crono’s cannabis sales are in Canada and Israel. For the three months ending September 30, 2024, $26.3 million of those sales were for cannabis flower, while $7.8 million were for cannabis extracts. From those sales, $24.1 was in Canada’s medical and non-medical cannabis market, $7.3 million was in Israel, and $2.9 million was from sales in other countries.

Cronos also recently announced a $51 million (CAD$70 million) expansion of Cronos Growing Company Inc. (Cronos GrowCo) to address increased international demand for its cannabis. Cronos GrowCo reported preliminary unaudited net revenue to third parties, excluding sales to the Company, of approximately $2.7 million in the second quarter of 2024. Q3 2024 represents the first quarter where Cronos consolidates Cronos GrowCo’s results in its financial statements.

The company’s adjusted gross profit in Q3 2024 was a 170% increase from the same quarter in 2023.

“Our results this quarter demonstrate that our long-term strategy is working,” said Mike Gorenstein, Cronos chairman, president and CEO. “With record net revenue and a disciplined approach to operating expenses, Cronos operates more efficiently and effectively than ever before, and we anticipate long-term margin improvement.

“Our consolidation of Cronos Growing Company has further strengthened our supply chain, which we anticipate will lead to improved margins and allow us to meet the increasing global demand for high-quality cannabis. With an industry-leading balance sheet, we are well-positioned to expand into new legal markets and drive future growth opportunities.

“As international demand continues to rise, particularly in markets like Germany, the UK, and Australia, the investments we’ve made in our infrastructure and global partnerships are paying off.”

In Q3 2024, Cronos brand Spinach was the top-selling cannabis brand in Canada, according to Hifyre. The brand’s edibles were in the number one position with a 17.2% market share in Q3 2024, while its flower products held the number one spot with a 6% market share.

In September, Cronos joined a group of cannabis cultivators that had filed an administrative petition in the District Court of Jerusalem, Israel, against the Trade Levies Commissioner and certain Israeli and Canadian businesses in relation to the Israeli government’s concerns about “product dumping” into their domestic market from Canadian cannabis companies.

The Israeli government had proposed a levy on Canadian cannabis products, which could be as high as 369% on Cronos products. In their most recent quarterly report, Cronos says that on November 10, 2024, Israel’s Trade Levies Commissioner published final findings under which Cronos would be subject to a proposed duty of 175%, pending a ruling from an advisory committee. The report says Cronos Israel was the largest importer from Canada among all importers in 2023.

Noya Holdings Inc. and Noya Cannabis Inc. apply for creditor protection

Written by Sarah Clark on November 8, 2024. Posted in Business, Cannabis News, Financials.

Noya Holdings Inc. and Noya Cannabis Inc. have applied for creditor protection in an initial order posted on November 6, 2024. Noya’s monitor in the case is BDO Canada Limited.

As part of the cannabis company’s CCAA filing, the court has ordered that all relevant Health Canada and cannabis excise licences held by Noya Cannabis Inc. (NCI) and related companies shall be preserved and maintained during the pendency of the stay period. This included NCI’s ability to sell cannabis inventory, as well as any applicable licence renewals.

The balance of the relief sought by the applicants will be heard in a comeback hearing by the court on November 15, 2024. According to documents online, the applicants’ are insolvent and cannot meet their liabilities as they become due. They have determined that a CCAA proceeding is required to complete a sale process and otherwise address their current challenges by restructuring their operations.

Noya’s known list of creditors shows nearly $10.3 million owed in secured credit and $2.7 million owed to unsecured creditors. Secured creditors are Lending Stream Inc., Terrascend Corp (Gage Growth Corp), and 1955185 Ontario Inc. Unsecured creditors include the Canada Revenue Agency, Health Canada, Pure Sun Farms, High Tide, Kiaro Brands, Ignite International Brands (Canada) Ltd., HiFyre, and many others.

Noya Holdings Inc. (NHI) is the parent company of NCI and 2675383 Ontario Limited (267). First licensed in 2017, NCI holds a cannabis cultivation and processing licence, and 267 holds a micro-cultivation cannabis licence. Both are located in Ontario. The applicants currently employ 18 employees.

Lending Stream Inc. is the applicants’ senior secured creditor. As of August 31, 2024, NHI was indebted to Lending Stream pursuant to a convertible debenture in the approximate amount of nearly $1.9 million. According to records, the owner of Lending Stream is the brother of the applicant’s owner. 1955185 Ontario Inc. is another secured creditor that provided loans to NHI. As of September 30, 2024, 195 had loaned approximately $3.8 million to NHI. The numbered company is owned or controlled by the parents or relatives of the owner of the applicants.

The applicants are also facing various contingent claims in excess of $5 million, including from Pure Sunfarms Corp., Ignite International Brands (Canada) LTD, and 10805696 Canada Inc. o/a Mauve & Herbes. These claims, say documents filed online, are mostly related to contractual disputes and are unsecured.

Noya and its related companies (the applicants) are up-to-date with payments to the Canada Revenue Agency with respect to employment insurance and Canada Pension Plan deductions but owe excise tax remittances and HST remittances.

Auxly reports record-breaking Q3 results

Written by Sarah Clark on November 8, 2024. Posted in Financials.

Auxly Cannabis Group Inc. reported $33.3 million in net revenue in its third quarter of 2024, a new company record and an increase of 18% year-over-year and 14% quarter-over-quarter.

The cannabis company’s net income was $3.3 million, down from $32.6 million in the same quarter in the previous year. However, its Q3 2023 net gains were mostly driven by the gains on the extension of the maturity of its Imperial Brands Debenture. Excluding the gains on that extension, net income in the most recent quarter increased by $17.5 million year over year.

About three quarters (76%) of the company’s cannabis sales originated from sales to British Columbia, Alberta and Ontario. Auxly sells under the brands Parcel, Back Forty, Foray, Doescann, and Kolab Project, and provides wholesale bulk sales of dried cannabis to various licensed producers in Canada.

Dried flower retail sales increased by over 12% compared to the previous quarter. Pre-roll retail sales increased by nearly 19% quarter-over-quarter. Auxly branded products represented approximately 50% of the top ten vape SKU’s nationally.

Hugo Alves, CEO of Auxly, commented: “Our continued focus on efficient revenue growth and enhanced profitability has delivered another record-breaking quarter of financial results, highlighted by an 18% year-over-year increase in net revenue and record adjusted EBITDA of $8.3 million.

“Our commitment to providing consumers with exceptional products that help them live happier lives enabled us to grow national market share in our core product categories of dried flower, pre-rolls and vapes; and has elevated Back Forty to the #1 brand in Ontario by dollars sold. We remain focused on creating long-term shareholder value. I am excited for the future and proud of the tremendous efforts of our talented and dedicated team in delivering these results.”

Auxly operates Auxly Charlottetown in PEI, where the company does most of its cannabis 2.0 product development, and Auxley Leamington where it grows and processes dried flower. In May 2024, the company sold its Auxly Ottawa facility for $1.7 million and applied the proceeds from the sale to support its ongoing operations. The Company does not currently have any active international operations.

Featured image of Auxly’s Leamington, Ontario facility

Canadian cannabis sales down, international sales up for Canopy in Q2 2025

Written by Sarah Clark on November 8, 2024. Posted in Financials.

Canopy Growth Corporation reported nearly $74 million in revenue in its second fiscal quarter of 2025, but a net loss of $128.3 million.

The second quarter of 2025, covering the three months ended September 30, 2024, saw a year-over-year decline in revenue, from $82 million in Q2 2024, but a decrease in losses, which were $324.8 million for the three months ended September 30, 2024.

Net revenue for the Canadian cannabis producer was $63 million, with $18.4 million coming from Canadian adult-use sales, $18.7 coming from Canadian medical cannabis sales, $10.1 million coming from international cannabis sales, and $15.9 million from its vaporizer company, Storz & Bickel.

Net revenue from Canadian adult-use cannabis sales was down 24% from $24.1 million in the same quarter last year, while Canadian medical cannabis revenue was up 16% from $16.2 million. International medical sales revenue was up 12% from $9 million in Q2 2024, while revenue from Storz & Bickel was up 32% from $12 million.

Canopy attributes the decline in revenue from the non-medical cannabis market in Canada to lower sales volumes, “which were partially affected by supply constraints for certain products as a result of financial difficulties with our contract manufacturers and lower sales velocity due to continued increase in price competition.”

The company attributes the year-over-year increase in revenue from domestic medical cannabis revenue to an increase in the average size of medical orders placed by its customers, which it says is primarily due to an increase in the percentage of insured customers and a more extensive assortment of cannabis product choices offered to its customers.

Canopy’s international sales increased from Q2 2024 because of the increased shipments of flower products in Europe, especially Poland and Germany, offset by a decline in Australian medical business due to greater competition in that market.

The company also incurred nearly $11 million in excise tax in the most recent quarter.

“We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses and we are well positioned to accelerate momentum in the second half of our fiscal year,” said David Klein, Canopy’s CEO. “In addition, we remain highly optimistic about the momentum building within Canopy USA as this strategy was uniquely designed to succeed independent of the need for federal legalization.”

Cannabis exports increase for Village Farms in Q3 2024

Written by Sarah Clark on November 7, 2024. Posted in Financials.

Village Farms International, Inc. sold USD$36.5 million worth of cannabis in Canada in the third quarter of 2024, with $9.6 million in gross profit, and $1.2 million in net income (all figures in US dollars).

Village Farms’ Q3 2024 results are for the three months ended September 30, 2024.

Village Farms is the parent company of Pure Sunfarms, a greenhouse cannabis grower based in BC.

The company also sells cannabis products in the US: CBD-based health and wellness products, including ingestible, edible and topical applications.

Village Farms’ US cannabis sales in Q3 2024 were $3.9 million, bringing in $2.5 million gross profit but a $192,000 loss after all associated expenses, before taxes.

This most recent quarter’s Canadian cannabis sales are up 27% from $28.8 million in the same quarter in the previous year, but down from $40.7 million from the previous quarter.

Gross profit on Canadian cannabis sales was down slightly from $9.9 million in Q3 2023, and net income before taxes was down from $1.9 million. The company attributes the decrease in net income primarily to an increase in tax provisions and an increase in selling, general and administrative expenses.

US cannabis sales figures were also down year over year, from $5 million in sales in Q3 2023, with $3.2 million in gross profit and income before taxes of $79,000.

Village Farms International operates two cannabis facilities for the Canadian legal adult use (recreational) market and for export to international markets like Israel, Germany, Australia, and the United Kingdom. The company’s Canadian Cannabis segment comprises Pure Sunfarms in BC and an 80% ownership in Rose LifeScience in Quebec.

The company also holds one of only ten licenses to participate in the Dutch recreational cannabis program. In the most recent quarter, its ownership of Netherlands producer Leli Holland increased from 85% to 100%.

Some 75% of the company’s cannabis sales were in Canada, down from 80% in the same quarter last year, while 25% were in various international markets, up from 20% in Q3 2023.

Branded cannabis sales were $45 million, non-branded sales were $7.4 million, and international sales were $1.4 million for the three months ended September 30, 2023.

The company attributes its 27% year-over-year increase in sales to an 18% increase in net branded sales and a 66% increase in non-branded sales. The increase in net branded sales was because of increased market share across the flower, pre-roll and milled categories. The increase in non-branded sales was from “improved industry supply dynamics and pricing supported by a shift of many producers toward asset-light models and sales of non-brand-spec inventory. International sales increased by 94% primarily due to higher sales to Germany, the United Kingdom, and Australia.”

In the most recent quarter, the company incurred $17.7 million in excise duties (Canada’s $1 per gram cannabis tax), representing 39% of gross branded sales. The cannabis producer says the Canadian excise duty is its single largest cost of participating in the branded adult-use market in Canada.

“As we close out fiscal year 2024, we are focused on driving more profitable sales in Canadian Cannabis, prioritizing profitable growth as we manage inventory levels with evolving supply dynamics and increasing international demand,” said Michael DeGiglio, president and CEO of Village Farms International.

“We are looking forward to more exciting catalysts for our business in fiscal year 2025, with continued international expansion and contributions from sales in the Netherlands. We believe our Netherlands business has the potential to become a strong contributor of profitability and cash flow generation, driven by more favourable pricing and taxes in the Dutch market compared to Canada.”

“We are also increasingly benefitting from our international cannabis focus. Exports from Canada increased 111% from the third quarter last year, with continued increases in sales to our German, Australian, and UK partners. Our EU-GMP certification was also recently renewed, and we are optimistic heading into next year about our opportunities to expand our international business with additional markets and customer wins. In the Netherlands, we received final approval to commence cultivation, are in production now, and remain on target to begin sales to participating jurisdictions in the first quarter of 2025.”

International sales increase for Aurora Cannabis, but company reports $13 million loss in Q2 2025

Written by Sarah Clark on November 6, 2024. Posted in Financials.

Aurora Cannabis brought in $81.1 million in net revenue in the three months ending September 30, 2024, and reported a net loss of nearly $13 million in the company’s newest quarterly report.

Net revenue was up 3% in Q2 2025 from the previous quarter and 29% from the same quarter in 2024. This increase was driven by a 30% and 41% increase in medical cannabis sales, respectively. In the same time frame, non-medical “adult use” cannabis sales dropped 10% and 13%, respectively.

Medical sales were assisted by strong growth in the international sector. Sales of medical cannabis in Canada were $26.3 million, while sales through international sales channels were $35 million, for a total of $61.3 million.

Non-medical sales were $10.4 million, while Aurora brought in another $750,000 in wholesale bulk cannabis net revenue. The company also incurred $7.8 million in federal excise tax in the most recently reported three-month period.

“Our strong quarterly results demonstrate Aurora’s leadership in global medical cannabis and ability to capitalize on opportunities within rapidly growing markets such as Australia, Germany, Poland, and the UK,” said chairman and CEO Miguel Martin in a press release.

“International revenue increased 93% to $35 million, exceeding Canadian Medical revenue for the first time, and contributing 57% to total global medical cannabis revenue. The Bevo plant propagation segment also grew a robust 21% during its seasonally lowest quarter, proving the efficacy of our diversified operating model.”

Just under $15.1 million of Aurora’s international sales were in the Australian market, while $20 million were in Europe and $26.3 million were in Canada.

Aurora’s major subsidies include Aurora Cannabis Enterprises Inc., Aurora Deutschland GmbH, TerraFarma Inc., Whistler Medical Marijuana Corporation, Bevo Agtech Inc., CannaHealth Therapeutics Inc., ACB Captive Insurance Company Inc., Indica Industries Pty Ltd. (MedReleaf Australia).

The cannabis producer reported an increase in the average selling price of indoor cannabis, from $4.88 on March 31, 2024, to $5.74 as of September 30. The weighted average fair value less the cost to complete and the cost to sell a gram of dried cannabis produced at Aurora’s Indoor cannabis cultivation facilities was $4.39 per gram (March 31, 2024 – $3.76 per gram).

SNDL posts $3.8 million in adjusted operating income from its cannabis businesses in Q3 2024

Written by Sarah Clark on November 5, 2024. Posted in Financials.

SNDL posted $236.9 million in revenue in the third quarter of 2024, with an $18.5 million loss.

Q3 2024, which includes the three months ending September 30, 2024, saw the Alberta-based company remain relatively level, year-over-year, in terms of revenue, but a 13% increase in net losses from the same period in 2023. In its previous quarterly report, SNDL reported a $4.6 million loss in adjusted operating income.

The company, which operates cannabis and alcohol businesses, posted net revenue of $81.1 million from its retail cannabis operations and $25 million from its cannabis operations. SNDL reported $4.4 million in adjusted operating income from its retail cannabis operations and a $578,000 loss on its cannabis production businesses.

Retail cannabis net revenue was up 7.4% from the same period in the previous year at $75.5 million, and adjusted operating income was up from $3.4 million. Net revenue from SNDL’s cannabis operations was up from $21 million in Q3 2023, while its adjusted operating loss was down from $14.2 million.

SNDL is Canada’s largest private-sector cannabis retailer by store count, operating 187 locations in the most recent quarter under its three retail banners: “Value Buds”, “Spiritleaf”, and “Superette.” Same-store sales increased 2.3% in Q3 2024 compared to Q3 2023. As of November 4, 2024, the Spiritleaf store count was 81 (20 corporate stores and 61 franchise stores), the Superette store count was four corporate stores, and the Value Buds store count was 102 corporate stores.

SNDL also brought in $4 million through its “proprietary data licensing program” in the third quarter of 2024.

“We are pleased with the substantial progress reflected in our results for the third quarter of 2024 as we advance towards sustainable profitability,” said Zach George, Chief Executive Officer of SNDL. “Our team delivered a record gross margin, positive cash flow and free cash flow, and closed the quarter with over a quarter billion dollars in unrestricted cash and zero debt. We are materially improving our operational performance while executing multiple strategic initiatives that we believe will solidify our foundation and drive sustained, profitable growth.”

On November 4, SNDL also announced that it had successfully closed its acquisition of the Indiva Group’s business, a move the company says will make it a leader in producing cannabis edibles in Canada.

The acquisition includes Indiva’s facility in London, Ontario, and a portfolio of owned and licensed brands like Pearls by Grön, No Future gummies and vapes, Bhang chocolate, Indiva Blips tablets, Indiva Doppio sandwich cookies, and Indiva 1432 chocolate. Indiva boasts a portfolio of seven brands and 53 listed SKUs, all manufactured in the company’s 40,000-square-foot production facility.

Indiva entered creditor protection this past June.

New Brunswick sold nearly $27 million worth of weed in the second quarter of 2024

Written by Sarah Clark on November 1, 2024. Posted in Financials.

Cannabis retailer sales in New Brunswick included nearly $27 million worth of cannabis in the three months ended September 29, 2024.

The figures come from Cannabis NB’s recently released Q2 2024 financial report, shared on October 30.

The provincial agency and the handful of private retailers that serve the legal cannabis market in New Brunswick sold $26.9 million worth of cannabis in the second quarter of 2024, up 6.6% from the same quarter in 2023.

Gross profit was $12.7 million, up 0.8% year over year, with net income at $6.8 million, a 1.9% increase from the same quarter in the previous year.

In addition to year-over-year increases, sales were also up from the previous quarter (Q1 2024), which was $24.7 for the three months that ended June 30, 2024. Gross profit was up $700,000 from the last quarter, while net income increased by about $900,000.

Dried flower sales were 51.7% of total sales in the most recent quarter, while concentrates were 32.9%. Edibles were 6.9% of total sales, beverages 2.8%, accessories 2.7%, extracts 2.4%, topicals 0.5% and clones 0.1%

A recent annual report from Cannabis NB shows that while dried cannabis flower continues to be the majority of sales, its market share, like in many other provincial markets, is shrinking as concentrates sales increase. New Brunswickers prefer more “convenient” cannabis products as the market continues to shift to products like vape pens, concentrates, and pre-rolls, especially infused pre-rolls, notes the report.

Dried flower sales still represented just over half (50.6%) of sales by category, down from 52.5% in 2022-2023, with concentrates and extracts at 35.2%, up from 33.5% in the previous year. Sales of edibles were the third largest product category, with 7.4% of sales by category.

The newest annual figures from the provincial cannabis agency Cannabis NB show $93.8 million in total sales for the year ended March 31, 2024, a 12.4% increase from the previous year. From this, the provincial agency generated $22.7 million in net income, a 24% increase from the previous year.

While dried cannabis sales still increased year-over-year, whole flower sales in the Picture Province were just over 30% of overall sales, while infused pre-rolls now represent 15% of total concentrate sales.

Key product sales trends for the second quarter (July 1, 2024 to September 29, 2024) compared to the second quarter last year were (July 3, 2023 to October 1, 2023):

sales of dried flower increased 8.3%, up $1.1 million
extracts sales increased 2.1%, up $13.1 thousand
sales of accessories decreased 18.3%, down $0.2 million
sales of edibles decreased 5.4%, down $0.1 million
sales of infused beverages increased 12.6%, up $0.1 million
sales of topicals decreased 29.7%, down $0.1 million
concentrates sales increased 10.3%, up $0.8 million

Cannabis NB also licensed its newest cannabis FarmGate partner, Pinnacle Farms, in the most recent quarter. The Cannabis NB FarmGate program allows licensed New Brunswick cannabis producers to sell their own products onsite at their facilities.

Ayurcann sees record annual growth as its reach expands across Canada

Written by Sarah Clark on October 29, 2024. Posted in Financials.

Ayurcann brought in $25.1 million in net revenue for the fiscal year ended June 30, 2024, up from $12.5 million the year prior, an increase of 101%.

Gross Revenues from sales in the most recent fiscal year were $45.8 million, up from $22.4 million in the previous year.

Despite these increases, the Ontario-based cannabis producer still reported a nearly $4 million net loss for the year, although losses were down from $5.3 million in the previous year.

Ayurcann operates a fully licensed 13,585-square-foot extraction and manufacturing facility based in Pickering, ON. The company earns revenue from the extraction and processing of cannabis oil-based products. It processes its own biomass cannabis and the biomass of other companies.

The company sells 60 unique SKUs under the ‘Fuego’, ‘XPLOR’ and ‘Happy and Stoned’ brands in the BC, Alberta, Ontario, New Brunswick, Yukon, Manitoba, and Saskatchewan markets.

Ayurcann is the top producer of vapes in Ontario, based on reporting by Hifyre IQTM, as of March 30, 2024, and a top five pre-roll manufacturer by volume in Ontario as of March 30, 2024, based on data produced by the Ontario Cannabis Store as of March 30, 2024.

“As the cannabis industry continues to mature in Canada, we are thrilled to witness the steady growth of our revenues across the country,” said Igal Sudman, CEO of Ayurcann, in a press release. “Despite the challenges posed by an increasingly competitive environment and retail price compression, Ayurcann’s business-to-consumer focus has enabled us to expand our market share in multiple provinces.

“With over 70% penetration in dispensaries and a diverse range of 80 products across vape, concentrate, and flower categories, the success of our in-house brands has been transformative for Ayurcann. We’re proud to have made a lasting impact in the market, continuing to build on our growth trajectory,”

By focusing on cost-efficient development, manufacturing and promotion of its own brand vape and flower products, as well as discontinuing all of its non-core products and services, the company says it was able to increase its gross margin by over 4.2% year over year, from 29.5% in fiscal 2023 to 33.7% in fiscal 2024.

As of June 30, 2023, the company’s accumulated deficit was $14.4 million. As of June 30, 2024, Ayurcann had a working capital deficit of $2.4 million. As of June 30, 2024, the company has incurred $20.2 million in excise tax, up from $9.6 million the previous year.

The company’s management has forecasted that the expected expenditure levels and contracted commitments will not significantly exceed Ayurcann’s net cash inflows and working capital for the next 12 months. The company’s ability to continue as a going concern is dependent, as noted in its audited annual report, “upon its ability to obtain additional financing, achieve profitable operations in the future, and the continued support of shareholders and forbearance of creditors.”

New Brunswickers prefer convenient cannabis products

Written by David Brown on October 28, 2024. Posted in Cannabis News, Financials, Government, New Brunswick.

New Brunswickers prefer more “convenient” cannabis products as the market continues to shift to products like vape pens, concentrates, and pre-rolls, especially infused pre-rolls, according to a new annual report from Cannabis NB.

Sales of dried flower still represented just over half (50.6%) of sales by category, down from 52.5% in 2022-2023, with concentrates and extracts at 35.2%, up from 33.5% in the previous year. Sales of edibles were the third largest product category, with 7.4% of sales by category.

The newest annual figures from the provincial cannabis agency Cannabis NB show $93.8 million in total sales for the year ended March 31, 2024, a 12.4% increase from the previous year. From this, the provincial agency generated $22.7 million in net income, a 24% increase from the previous year.

While dried cannabis sales still increased year-over-year, whole flower sales in the Picture Province were just over 30% of overall sales, while infused pre-rolls now represent 15% of total concentrate sales.

In the most recent fiscal year, Cannabis NB brought in eight of its planned nine private retail cannabis locations, part of a commitment to diversify the retail market and bring stores into more remote regions of the province. Total sales in the private retail channel were more than $2.8 million.

New Brunswick also has 25 Cannabis NB locations in the province and seven approved cannabis farmgate locations. The provincial cannabis agency also supports the local cannabis industry by working with local producers who currently contribute 21.5% of total sales. Cannabis NB says they expect this number to continue to grow as more locally-made products become available.

There were 279 products from New Brunswick producers available in the province as of March 31, 2024 (out of 1,927 from across Canada). Whole flower was the largest category, with 58 SKUs, followed by cannabis accessories at 46 and concentrates at 42. The province carried 19 clone SKUs in 2023-2024, the most of any province. Ontario is the only province that eclipses New Brunswick producers in terms of available SKUs (848).

Cannabis NB was the first ever cannabis board in Canada to host a consumer-facing education event, the New Brunswick Cannabis Expo, with over 1,400 attendees. The Cannabis Expo is a cannabis education trade show that’s expertly crafted for 19+ New Brunswickers who consume cannabis.

“For us, delivering for the people of New Brunswick means generating revenue to support the province, while consistently prioritizing safety, responsibility, and top customer service,” writes Cannabis NB president and CEO Lori Stickles in the annual report.

Manitoba brings in almost $40 million in revenue from cannabis sales in 2023-2024

Written by David Brown on October 28, 2024. Posted in Financials.

Manitoba sold $153.6 million worth of cannabis in the fiscal year ended March 31, 2024, bringing in $39.5 million in net revenue for the province.

Cannabis operations revenues for the Manitoba Liquor & Lotteries Corporation increased $22.7 million from the prior year, while net income and comprehensive income and total allocation to the Province of Manitoba increased by $8.3 million.

MBLL says this growth was mainly driven by the addition of 35 new retail locations. The province had 205 licensed private retail cannabis locations open throughout the province as of the end of March 2024, compared to 177 last year. Seven existing locations closed in the most recent fiscal year.

Sales of dried flower again dominated, with $92.9 million in sales, compared with $82.2 million in the previous fiscal year. Extracts were the next highest-selling product category, with $50 million in sales, up from $39.1 million the previous year.

There were $10.1 million worth of cannabis edibles sold in the year ended March 31, 2024, compared to $9.1 million in the previous year. Sales of cannabis topicals were worth $567,000, up from $424,000 in the previous year.

Manitoba also expanded its cannabis distribution options in the most recent fiscal year, allowing licensed producers to warehouse cannabis products with a licensed cannabis distributor, as well as implementing a twenty-day purchase order deadline and a five-day receiving requirement.

The MBLL says these changes have brought more cannabis inventory into the Manitoba market and closer to the retail network, improving the lead time and fulfillment cycles experienced by retailers.

In 2024-25, the MBLL says its cannabis operations will focus on technology initiatives, including the automation of its federal cannabis tracking requirements and the automation and enhancement of cannabis performance metrics and reporting.

For context, while the MBLL brought in $39.5 million in net revenue for cannabis sales, it brought in $89.9 million from casinos, $313.8 million from alcohol sales, $45.1 million from The Manitoba Lottery, $45.2 million from online gaming, and $199 million from video lotto. Cannabis sales were about 5% of the total $732.5 million combined net revenue from all these sources.

MBLL will host a virtual Q&A with President and CEO Gerry Sul on October 30, 2024.

Decibel Cannabis to acquire AgMedica Bioscience, expanding export potential

Written by Sarah Clark on October 28, 2024. Posted in Cannabis News.

Calgary-based Decibel Cannabis Company Inc. has closed on its acquisition of AgMedica Bioscience Ltd., a subsidiary of Atlas Global Brands.

The deal comes from an exchange with Callisto Capital Corp for a $6.3 million unsecured convertible debenture. The deal still requires the final approval of the TSX.

The purchase gives Decibel better access to export markets. Decibel projects that AgMedica could contribute $30 million in net revenue and $4 million in EBITDA in 2025, totalling an anticipated $130 million of net revenue and $25 million of adjusted EBITDA in 2025 on a pro-forma basis.

“I am excited to announce the acquisition of AgMedica,” said Benjamin Sze, CEO of Decibel, in a press release. “An EU GMP certification is an international standard that Decibel has been contemplating for quite some time; this acquisition accelerates that timeline.

“The AgMedica facility becomes the cornerstone of our international strategy as it allows us to extend our products and brand to the rest of the world. Furthermore, this marks the first step of Decibel’s new strategy as we execute on profitable growth opportunities enhanced by synergistic and accretive transactions.”

Decibel expects the deal to significantly expand its international footprint by using Agmedica’s EU GMP certification to enable export of flower and various extract products to seven countries, including Australia, Denmark, Germany, Israel, Norway, Spain, and the United Kingdom. This adds EU GMP and IMC-GAP certified annual flower production of 5.1 metric tonnes per annum, which, when combined with Decibel’s GACP facility, expands the total metric tonnes per annum of exportable flower to more than 12.

The deal also includes Decibel’s acquisition of GreenSeal Nursery Ltd., a licensed cannabis nursery.

AgMedica’s parent company, Atlas Global Brands Inc. is currently in a creditor protection process (CCAA). Atlas Biotechnologies Inc. and Atlas Growers Ltd had previously gone into receivership in 2023.

Following completion of the transaction, AgMedica will enter into a five-year industrial lease for the AgMedica facility in Chatham, Ontario, as well as a sale and leaseback agreement with Callisto, pursuant to which specific equipment belonging to AgMedica was transferred to Callisto and leased back to AgMedica for a nominal cost for the term of the AgMedica facility lease. AgMedica has the option to repurchase the equipment at the end of the lease term for a nominal value.

Decibel’s Q3 2024 financial report is expected on or about November 21, 2024, and is projected to have net revenue between $23 to $25 million.

Cannabis sales up 24% in Newfoundland and Labrador from last year

Written by David Brown on October 28, 2024. Posted in Financials.

There was $87.6 million worth of cannabis sold in Newfoundland and Labrador in the 2023-2024 fiscal year, a nearly 24% increase from the previous year.

Some $57.9 million of that was dried flower sales, $21.1 million was extracts and concentrates, $8.3 million was “ingestible” cannabis products, and $0.3 million was from cannabis topical sales. These sales include products self-distributed by local licensed producers (direct delivery).

This is an increase from $70.7 million in sales in the previous year. In the most recent fiscal year, sales of extracts and topicals were twice those of 2022-2023’s $10.8 million in sales. Sales of cannabis vapes were not allowed until late 2022.

In the most recent fiscal year, ended March 31, 2024, Newfoundland and Labrador Liquor Corporation (NLC) regulated and distributed to 55 licensed cannabis retailers across the province, an increase of 14 from the previous year. The NLC also operates an online cannabis store.

NLC estimates that 84% of the illicit cannabis market in the province has been captured, an increase from 65% in the previous year and 25% four years ago.

The agency attributes this increase in part to the increase in the number of new cannabis stores as part of its Rural Expansion Plan. Cannabis sales through the network of privately-owned Licensed Cannabis Retailers (LCRs) were 24.1% higher than the previous year.

In addition to seeking to strengthen the presence of legal cannabis stores in the province, NLC says it works with local cannabis producers by providing support through its product listing process and providing provincial cannabis producers with premiums for the products they sell in the province. In 2023-24, the total support provided to local cannabis producers was $2.1 million.

Despite the estimated increase in adoption of the legal cannabis market, NLC says there is still a significant portion of the province that does not have easy access to legal sources. It expects to license more new stores to address these needs. A request for proposal for four new stores closed in September of this year.

There are, as of publication of this article, 59 stores listed. All but three are located on the island of Newfoundland. Cannabis sales are through Tier 1 stores that are only allowed to sell cannabis and cannabis accessories, or Tier 4 stores, which are in existing retail locations such as a general store.

There are currently four federally licensed cannabis producers listed as active in Newfoundland and Labrador: KRFT, Atlantic Cultivation, BeeHigh Vital Elements, and Oceanic Releaf.

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Tag: Financials

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