Cresco Labs and Columbia Care, which are in the midst of joining forces, both released their latest financial results. Meanwhile, delivery services came into focus elsewhere in the cannabis space.
A pair of US cannabis companies that are tied together by an acquisition plan released their quarterly financials this week. Cannabis delivery services were in focus as well as two companies confirmed their plans to offer seamless delivery solutions for cannabis consumers.
Keep reading to find out more cannabis highlights from the past five days.
Cresco and Columbia Care release financial reports
“The first quarter showed the resilience and strength of the business we have built over the past few years,” said Charles Bachtell, co-founder and CEO of Cresco Labs. “We remain focused on playing the long game and building a business that will be a lasting leader in the cannabis industry under any regulatory outcome.”
The company reported a net loss of US$23.6 million for the most recent period. However, the firm celebrated a US$214 million revenue line, which represents a 20 percent increase from the same period last year.
For its part, Columbia Care reported a net loss of US$28 million despite recording a 43 percent yearly increase in gross revenue to US$123 million.
Nicholas Vita, CEO of Columbia Care, told shareholders his priority for the company is to deliver on profitability. The cannabis-focused operator highlighted California, Colorado, Massachusetts, Pennsylvania and Virginia as its top five markets by revenue in the first quarter of 2022.
“We also remain determined to deliver the best outcome for our stakeholders as we progress towards a successful close of the transaction with Cresco Labs, with the shared vision of creating the definitive market leader in the cannabis industry,” Vita said.
Delivery services come into focus for cannabis players
“By adding the ability to place orders for delivery, we’re combining our expertise and deep content catalog with a new layer of convenience for consumers,” Yoko Miyashita, CEO of Leafly, said.
The plan is for Leafly to expand this delivery service to other states that have legalized cannabis delivery solutions.
The firm offers over 4,000 cannabis strains through its digital service, “many of which have roots in California.”
Delivery solutions have increased in visibility from regulated players in the cannabis market. This past week, Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWF) launched its own delivery service in Ontario.
The service, Firebird Delivery, will integrate the firm’s rewards program.
"We are the first cannabis retailer to offer delivery within an hour and we expect this offering will encourage legacy consumers — who value convenient service at a competitive price — to become loyal Firebird customers," Trevor Fencott, CEO of Fire & Flower, said.
Cannabis company news
- Auxly Cannabis Group (TSX:XLY,OTCQX:CBWTF)issued its Q1 operational results to the market. "Though this quarter presented some ongoing supply chain and operational challenges… We believe we have taken the necessary steps to correct these issues for the coming quarters, allowing us to increase fill rates and continue with our exciting new product launches throughout the year,” Hugo Alves, CEO of Auxly, said.
- Aurora Cannabis (NASDAQ:ACB,TSX:ACB)received an EU good manufacturing practise certification for its medical cannabis facility in Germany. “Our first shipment from our world class Leuna facility will deliver on our commitment to the German regulatory authority and expanding patient base, a significant step in our ongoing commitment to international market growth," Miguel Martin, CEO of Aurora Cannabis, said.
- Indiva (TSXV:NDVA,OTCQX:NDVAF)released its Q1 financial results this past week. Niel Marotta, president and CEO of Indiva, said the company plans to launch a variety of new products starting in Q2 and leading towards the end of the year. The firm reported a C$3 million net loss despite a 5.4 percent uptick in revenue, resulting in C$8.95 million.
- Canopy Growth (NASDAQ:CGC,TSX:WEED)acquired cannabis extracts and vape company Jetty Extracts in a two-split option agreement transaction worth US$69 million in cash and Canopy shares. "There are significant opportunities for Jetty to scale at the state-level across the U.S. by leveraging Canopy's U.S. ecosystem, and we're actively working on plans to bring the brand to the Canadian recreational market," David Klein, Canopy Growth CEO, said.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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