Cannabis News

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Producer Cronos Group shared long-awaited financial results this week; meanwhile, analysts have dropped sales projections for producers in Canada.

Cronos Group (NASDAQ:CRON,TSX:CRON) shareholders got a closer look at the company's financials thanks to the release of a report for 2021's third fiscal quarter.

Also during this past week of trading, several leading Canadian cannabis producers were hit with decreased projections compared to the numbers analysts expected of them last year.

Keep reading to find out more cannabis highlights from the past five days.


Cronos finally shares Q3 2021 financials

Shares of Toronto-based Cronos took a meaningful dip on Friday (February 18) after the release of its latest financial report; it had been delayed since last year, although the company has shared updates.

Kurt Schmidt, president and CEO of Cronos, said the company will realign the business around its brands, and will prioritize the management of its expenses and investments.

“Through this realignment, our goal is to position Cronos Group to be able to successfully assemble a portfolio of best-in-class brands, products and intellectual property, while preserving the financial flexibility to make additional strategic investments in our (research and development) and brand pipeline as we innovate and evolve with our consumers’ wants and needs,” Schmidt said.

Cronos reported a net loss of US$77.6 million for its fiscal Q3 2021 period, which represents a US$0.21 loss per share. The company highlighted an uptick in net revenue, which hit US$20.4 million for the quarter, as well as adult-use sales in Canada, medical sales in Israel and an increased US presence.

As has been a recent trend in the cannabis industry at large, Cronos plans to go through cost-cutting measures to attempt to save more money.

As of 12:30 p.m. EST on Friday, Cronos was down 7.65 percent for a share price of US$3.50.

Analysts lower expectations for cannabis producers

According to MJBizDaily, analysts' 2022 sales expectations for Tilray (NASDAQ:TLRY,TSX:TLRY), Canopy Growth (NASDAQ:CGC,TSX:WEED) and Aurora Cannabis (NASDAQ:ACB,TSX:ACB) have all gone down significantly.

Looking at last year's October to December period, analysis from Hifyre shows quarter-on-quarter decreases in estimated market share for all three companies. The experts calculate that Aurora Cannabis went down from 3.7 percent to 2.8 percent, Tilray from 15 percent to 11.7 percent and Canopy Growth from 10 percent to 8.6 percent.

These declines, the report argues, are related to smaller companies being able to move faster than the big names.

Organigram Holdings (NASDAQ:OGI,TSX:OGI) CEO Beena Goldenberg told MJBizDaily that other players in the industry have been too busy with M&A “and maybe taking the focus off the core business a little bit.”

Cannabis company news

  • Tilraycompleted its first medical cannabis sale in the Malta market. “As demand for cannabis continues to grow across Europe, we’re incredibly proud to partner with established and reliable distribution partners to supply new markets with high-quality medical cannabis which patients can rely on,” said Denise Faltischek, chief strategy officer and head of international business.
  • Tetra Bio-Pharma (TSX:TBP,OTCQB:TBPMF) and Avicanna (TSX:AVCN,OTCQX:AVCNF)secured a strategic partnership for the advancement of novel cannabinoid drug development. “As the global industry continues to mature and shift its focus towards evidence-based medicines, the two companies are well positioned to work in synergy across several projects and leverage their leadership positions into fruitful commercial results," Avicanna CEO Aras Azadian said.
  • Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF)purchased a 64,000 square foot cultivation facility in Phoenix, Arizona, for US$13.75 million in cash. This facility is the fifth for Trulieve in Arizona. "The facility strengthens Trulieve's presence in the cornerstone market of our Southwest hub, as well as expands our cultivation capacity,” Kim Rivers, CEO of Trulieve, said.
  • Clever Leaves Holdings (NASDAQ:CLVR)confirmed an increased relationship agreement with Cannatrek, an Australian cannabis producer. As per the new deal, the firm will supply THC flower grown in Portugal under a two year take-or-pay agreement. “Expanding our partnership will certainly help in addressing the country’s growing demand for safe, reliable, and most importantly, pharmaceutical-grade products,” said Andrés Fajardo, president of Clever Leaves.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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