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Hempsana Holdings Ltd. (the " Company " or " Hempsana "), today announced that it has entered into a custom manufacturing agreement with Feel Ventures Inc. (" Feel Ventures "), to launch their first products from their ufeelu branded line of products.
Under the terms of the agreement, Hempsana has agreed to manufacture their best-selling SKUs that target non-psychoactive experiences both from a cannabinoid and terpene level perspective. Hempsana will leverage its manufacturing services as well as its newly commercialized production capabilities focused on minor cannabinoids such as CBG and CBN to manufacture and distribute Feel Venture's first products from the ufeelu branded product line.
Feel Ventures is a Vancouver-based boutique brand house focused on creating innovative and approachable cannabinoid-based products. The ufeelu product line uses Canadian-grown hemp and carefully selected plant-based terpenes to craft naturally enhanced broad spectrum CBD blends in various consumable methods. The low THC line of products is designed for those who want to embrace whole plant extracts without the psychoactive effects.
"We are excited to be partnering with Feel Ventures to launch one of their best-selling SKUs from their ufeelu branded portfolio," said Randy Ko, CEO of Hempsana. "Working with a unique and innovative brand such as ufeelu complements our vision to bring exciting new rare cannabinoids to consumers. The ufeelu line will leverage Hempsana's minor cannabinoid extracts, to bring unique curated non-psychoactive CBD products to Canadian consumers in 2022."
"At ufeelu our goal is to set the bar on curated experience-based products," said Sameer Padamsey, Director at Feel Ventures. "Partnering with Hempsana, we get to leverage their research, development and extraction of rare cannabinoids with the work we have done with plant-based terpenes to set the industry standard for non-psychoactive craft cannabis products".
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products, including topical creams, vape pens and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company with access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including topicals, tinctures, salves, vape pens which can all be fortified with major and minor cannabinoids that are all manufactured by Hempsana.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220110005257/en/
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
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Hempsana Holdings Ltd. (the " Company " or " Hempsana ") today announced fourth quarter and annual financial results for the twelve-month period ended December 31, 2021.
Randy Ko, Hempsana's CEO commented: "2021 was the inaugural year for Hempsana. After several years of preparation and hard work, we completed the build out of our facility and launched commercial operations. We also completed the RTO and became publicly traded. 2021 was the year we laid the foundation for longer term growth: we built a production and management team, amended our cannabis licence to authorize us to directly sell, established strategic supplier relationships and developed key customer relationships. While the cannabis market faced significant turmoil in 2021, we were able to advance our business plan despite the challenges."
Operational Highlights:
Financial Highlights
Options Grant Announcement
The Company announces the grant of an aggregate of 757,000 incentive stock options to certain directors and officers of the Corporation exercisable at CAD$0.05 until April 22, 2032 pursuant to the Corporation's stock option plan.
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including cannabis concentrates, diamonds, tablets, topicals, tinctures, salves, infused pre-rolls, and hemp-based CBD products that are all manufactured and distributed by Hempsana.
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@Hempsana.ca
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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Hempsana Holdings Ltd. (the " Company " or " Hempsana ") a leader in the production and refinement of cannabinoids and manufacturing of Cannabis 2.0 products, is pleased to announce with GAMA Corp (" GAMA ") a contract manufacturing agreement with Caviar Gold Brand to bring the original infused and the only patented brand in the world pre-roll cones and moon rocks to the Canadian and International Markets for both the recreational and medical market.
"We are extremely excited to team up with Cavi Mike and his Caviar Gold, Ice Cube and Jay & Silent Bob brands to deliver their patented high quality high potency infused products to Canada. The Caviar Gold brand continues to dominate the infused pre-roll cone and moon rock categories across multiple states in the USA, and now is the right time to share these brands in Canada and abroad," said Randy Ko, Chief Executive Officer of Hempsana.
Caviar Gold Brands have differentiated and set their products apart from all other infused flower brands using a proprietary extraction process and an innovative unique finishing process for their infused products. Hempsana and GAMA expect to begin initial production of Caviar Gold's portfolio of infused pre-rolls and moon rocks in Q2 of 2022 with launch dates of the products and distribution to retail stores across Canada to commence in the second half of 2022. The product portfolio will include, but not limited to, one gram infused pre-roll cones and moon rocks in one-gram and two-gram sizes for the following strains:
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including cannabis concentrates, diamonds, tablets, topicals, tinctures, salves, infused pre-rolls, and hemp-based CBD products that are all manufactured and distributed by Hempsana.
About GAMA Corp.
The Company's business involves consulting on the formulation and stabilization of major and minor cannabinoid derivatives and partnering with Licensed producers to deliver contract manufacturing operational (CMO) services for existing power brands out of the United States and unique products that are in high demand and short supply in Canada and International markets.
About Caviar Gold Brand
Caviar Gold Brand is a cannabis products processor that utilizes patented processes to infuse full spectrum THC into premium quality cannabis flower, to produce the one of the most potent (up to 58% THC) and smokable pre-rolls and moon rocks in the market. Along with its award-winning line up of Caviar Gold Products, Caviar Gold Brand manufacturers customized formulations for internationally recognized Celebrities such as Ice Cube, Jay & Silent Bob brands at this time. Currently, products are available in many states including: California, Nevada, Arizona, Colorado, Michigan and Oklahoma, with several additional states coming online in 2022.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220411005280/en/
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Hempsana Holdings Ltd. (the " Company " or " Hempsana ") a leader in the production and refinement of cannabinoids and Cannabis 2.0 products, is delighted to announce that it has entered into a contract manufacturing agreement with GAMA Corp (" GAMA ") to co-manufacture and distribute new products and well recognized brands from the United States to the Canadian and International Markets for both recreational and medicinal use.
Under the terms of the agreement, GAMA will leverage Hempsana's EU GMP compliant facility and its full suite of product manufacturing capabilities to support the product development of the following product categories:
"We are extremely excited to partner with GAMA Corp to deliver Contract Manufacture Operation (CMO) services as we continue to expand our manufacturing capabilities into underrepresented product categories in the cannabis space. We're especially excited about the launch of various recognized brands for the Canadian consumers and medical patients," said Randy Ko, Chief Executive Officer of Hempsana.
Combined, Hempsana and GAMA have over 195 SKUs that are currently under review with Health Canada and will be available to be purchased by Provincial Wholesalers by the beginning of summer 2022 with additional white label service offerings for LPs and brands interested in highly innovative products not yet available in the marketplace.
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products, including topical creams, vape pens and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including topicals, tinctures, salves, vape pens which can all be fortified with major and minor cannabinoids that are all manufactured and distributed by Hempsana.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220328005009/en/
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
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Hempsana Holdings Ltd. (the " Company " or " Hempsana ") a leader in the production and refinement of cannabinoids and manufacturing of Cannabis 2.0 products, is pleased to announce a trilateral partnership with NaturalSci Regulatory Consulting Corp. and 6Pak Solutions Inc. This partnership will provide full turnkey solutions to brands and licensed producers looking to launch cannabis products to the Canadian cannabis market and help them navigate through many of the go-to-market challenges that are faced in launching products including but not limited to:
All three parties are very excited to officially announce this partnership and bring this idea to fruition. "I am very proud of my team and our fantastic partners for creating this new trilateral partnership; working together to serve the industry and expedite the growth of new brands in the Canadian market," said CEO Kyley Paul of NaturalSci Regulatory.
"6Pak is very excited about this opportunity to work with NSRC and Hempsana. It extends the scope of what we're able to offer our clientele, making the legal industry more accessible for all," said Chris Sharanewych, CEO of 6Pak Solutions.
"Although the Canadian cannabis industry is fraught with inefficiencies, the market continues to mature and this partnership really exemplifies how good partnerships such as this one can close many of the gaps in the industry and, at the same time, bring great value to our future branded partners," said Randy Ko, CEO of Hempsana.
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including cannabis concentrates, topicals, tinctures, salves, infused pre-rolls, and inhalable products which can all be fortified with major and minor cannabinoids that are all manufactured and distributed by Hempsana.
NaturalSci Regulatory Consulting Corp.
CEO Kyley Paul of NaturalSci Regulatory comes directly from industry experience having been the previous Regulatory Coordinator with Jamieson Laboratories prior to founding her company in 2015. The team has combined over 20 years experience in the NHP, cosmetic and cannabis sectors and licensed 1000's of products within all categories for brands across North America and Globally. NaturalSci Reg's core values include: Doing the Job Right the First Time and Investing in People and Relationships. We take pride in building trust with our clients and operate on relationships not transactions. We revel in providing excellence for regulatory and compliance in Cannabis and Natural Health Products industries.
6Pak Solutions Inc
6Pak Solutions Inc is a co-packing offshoot of ATG Pharma Inc, who are global leaders in automated liquid filling equipment. 6Pak uses this state-of-the-art equipment to fill, package, and label cannabis extract products. 6Pak works out of federally licensed facilities, all operators are highly trained, and equipment is GMP-compliant. 6Pak is currently able to assist with the manufacturing of vape cartridges, tinctures, and topicals. Our philosophy is to use our equipment, experience, and expertise to turn your 2.0 production from a point of stress to a point of strength.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005589/en/
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR
DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Hempsana Holdings Ltd. (the " Company " or " Hempsana ") a leader in the production and refinement of cannabinoids and Cannabis 2.0 products, is pleased to announce that Hempsana has entered into a non-binding Letter of Intent ("LOI") with Dreamdos Therapeutics Inc.(" Dreamdos ") to supply its premium medical cannabis products. Dreamdos is applying for its license to sell, distribute and import medical cannabis products in the Barbados market. Hempsana expects to ship its medical-grade cannabis products upon Dreamdos receiving its updated licensing.
Under the terms of the agreement, Dreamdos will draw on Hempsana's full suite of product manufacturing capabilities to supply Barbados and the Carribean market with a range of cannabis tincture products. Specifically, Dreamdos intends to initially launch three cannabis tinctures in the form of a balanced THC:CBD formulation as well as THC dominant and CBD dominant cannabis tinctures.
"On the backs of obtaining our medical sales license, this global partnership expands our footprint beyond the Canadian borders. The medical patient market has been an underserved consumer segment, not just here in Canada but globally, and we are delighted to be working with Dreamdos to bring high quality medical products to the medical patients in the Caribbean region," said Randy Ko, President and CEO of Hempsana Inc.
"Dreamdos is extremely pleased to partner with Hempsana to bring quality medical products to legal markets in the Caribbean region," said William Wells, Founder of Dreamdos Therapeutics Inc. "Dreamdos' mission is to bring innovative health products to underserved patients throughout the Caribbean region. Outstanding partners like Hempsana ensure our mission is successful."
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products, including topical creams, vape pens and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including topicals, tinctures, salves, vape pens which can all be fortified with major and minor cannabinoids that are all manufactured and distributed by Hempsana.
About Dreamdos Therapeutics Inc.
Operating through its Barbados hub, the company acquires and distributes medical products to wholesale and retail channels in legal markets for the Caribbean region.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005630/en/
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
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Grand opening celebrations at both new locations Friday, November 22 nd
Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced the opening of new medical cannabis dispensaries in Dania Beach and Spring Hill, Florida .
Grand opening celebrations will be held at both locations Friday, November 22 , beginning at 9 a.m. , featuring music, specials, discounts, and opportunities to register for upcoming patient education sessions.
"We are proud to expand access to medical cannabis in Broward and Hernando Counties," said Trulieve's Chief Executive Officer Kim Rivers . "Providing affordable, high-quality products is a core part of our mission, we look forward to serving patients and caregivers at these new locations."
Trulieve Dania Beach Federal Highway, located at 1121 South Federal Highway, and Trulieve Spring Hill, located at 404 Suzanne Drive, will be open 9 a.m. – 8:30 p.m. Monday through Saturday and 11 a.m. – 8 p.m. on Sundays , offering walk-in and express pickup service.
Both locations will carry a wide variety of popular products including Trulieve's portfolio of in-house brands such as Alchemy, Co2lors, Cultivar Collection, Modern Flower, Momenta, Muse, Roll One, Sweet Talk, and Trekkers. Customers will also have access to beloved partner brands such as Alien Labs, Bellamy Brothers , Binske, Black Tuna, Blue River , Connected Cannabis, DeLisioso, Khalifa Kush , Love's Oven, Miami Mango, O.pen, Seed Junky, and Sunshine Cannabis, all available exclusively at Trulieve in Florida .
Across Florida , Trulieve offers home delivery, convenient online ordering, and in-store pickup. Veterans receive 20% off every order when they show their military ID, and all first-time guests are eligible for a 60% new customer discount at any Florida Trulieve location. For more information, or to learn how to become a registered patient, please visit Trulieve.com and connect on Instagram or Facebook .
About Trulieve
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .
Facebook: @Trulieve
Instagram: @Trulieve_
X: @Trulieve
Investor Contact
Christine Hersey , Vice President of Investor Relations
+1 (424) 202-0210
Christine.Hersey@Trulieve.com
Media Contact
Phil Buck , APR, Corporate Communications Manager
+1 (406) 370-6226
Philip.Buck@Trulieve.com
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SOURCE Trulieve Cannabis Corp.
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Net revenue in Q3 2024 increased by 38% year-over-year to $34.3 million
Spinach ® Becomes the Number One Cannabis Brand in Canada 1
Industry-leading balance sheet with $862 million in cash and cash equivalents
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company") today announced its 2024 third quarter business results.
"Our results this quarter demonstrate that our long-term strategy is working. 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," said Mike Gorenstein, Chairman, President and CEO, Cronos.
"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," continued Mr. Gorenstein. "In the third quarter, our award-winning Spinach ® brand rose to become the best-selling cannabis brand in the Canadian adult-use market and our Peace Naturals ® brand held a top spot in the Israeli medical market. Our brands' market share out-performance represents our relentless commitment to quality, innovation, and bringing differentiated products to the global cannabis market. The progress we've made reinforces our leadership in key categories and markets, and we remain focused on continuing to innovate and bring premium products to consumers."
1 Hifyre Retail Analytics – National Retail Dollar Sales by Brand in Canada – August 2024.
Consolidated Financial Results
On June 20, 2024 the Company made an additional investment in Cronos Growing Company (" Cronos GrowCo") to fund the expansion of cultivation operations. Cronos also obtained majority control of the board of directors of Cronos GrowCo and began consolidating Cronos GrowCo's results as of July 1, 2024. Prior to this date, the Company's investment in Cronos GrowCo consisted of an investment accounted for under the equity method and loans receivable from Cronos GrowCo.
In the second quarter of 2023, the Company exited its U.S. hemp-derived CBD operations. The exit of the U.S. operations represented a strategic shift, and as such, qualifies for reporting as discontinued operations in the condensed consolidated statements of net income (loss) and comprehensive income (loss). Prior period amounts have been reclassified to reflect the discontinued operations classification of the U.S. operations.
The tables below set forth our condensed consolidated results of continuing operations, expressed in thousands of U.S. dollars for the periods presented. Our condensed consolidated financial results for these periods are not necessarily indicative of the consolidated financial results that we will achieve in future periods.
| (in thousands of USD) | Three months ended September 30, | Change | Nine months ended September 30, | Change | ||||||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||||||||||||||||
| Cronos net revenue, excluding Cronos GrowCo net revenue (i) | $ | 29,996 | $ | 24,810 | $ | 5,186 | 21 | % | $ | 83,046 | $ | 63,326 | $ | 19,720 | 31 | % | ||||||||||||||
| Cronos GrowCo net revenue ( i i ) | 4,268 | — | 4,268 | N/A | 4,268 | — | 4,268 | N/A | ||||||||||||||||||||||
| Net revenue | $ | 34,264 | $ | 24,810 | $ | 9,454 | 38 | % | $ | 87,314 | $ | 63,326 | $ | 23,988 | 38 | % | ||||||||||||||
| Cost of sales | 30,341 | 20,124 | 10,217 | 51 | % | 72,216 | 52,614 | 19,602 | 37 | % | ||||||||||||||||||||
| Inventory write-down | 312 | 716 | (404 | ) | (56 | )% | 707 | 716 | (9 | ) | (1 | )% | ||||||||||||||||||
| Gross profit | $ | 3,611 | $ | 3,970 | $ | (359 | ) | (9 | )% | $ | 14,391 | $ | 9,996 | $ | 4,395 | 44 | % | |||||||||||||
| Gross margin (iii) | 11 | % | 16 | % | N/A | (5) pp | 16 | % | 16 | % | N/A | —pp | ||||||||||||||||||
| Inventory step-up recorded to cost of sales | 7,116 | — | 7,116 | N/A | 7,116 | — | 7,116 | N/A | ||||||||||||||||||||||
| Adjusted Gross Profit ( i v ) | $ | 10,727 | $ | 3,970 | $ | 6,757 | 170 | % | $ | 21,507 | $ | 9,996 | $ | 11,511 | 115 | % | ||||||||||||||
| Adjusted Gross Margin ( v ) | 31 | % | 16 | % | N/A | 15pp | 25 | % | 16 | % | N/A | 9pp | ||||||||||||||||||
| Net income (loss) | $ | 7,324 | $ | (1,590 | ) | $ | 8,914 | N/M | $ | (3,919 | ) | $ | (25,288 | ) | $ | 21,369 | 85 | % | ||||||||||||
| Adjusted EBITDA ( iv ) | $ | (6,019 | ) | $ | (15,187 | ) | $ | 9,168 | 60 | % | $ | (27,739 | ) | $ | (46,774 | ) | $ | 19,035 | 41 | % | ||||||||||
| Other Data | ||||||||||||||||||||||||||||||
| Cash and cash equivalents (vi) | $ | 862,034 | $ | 571,656 | $ | 290,378 | 51 | % | ||||||||||||||||||||||
| Short-term investments (vi) | — | 267,905 | (267,905 | ) | (100 | )% | ||||||||||||||||||||||||
| Capital expenditures ( vii ) | 6,536 | 325 | 6,211 | 1,911 | % | 9,446 | 1,631 | 7,815 | 479 | % | ||||||||||||||||||||
(i) Cronos net revenue, excluding Cronos GrowCo net revenue is Net revenue less Cronos GrowCo net revenue and is after intercompany eliminations.
(ii) Cronos GrowCo net revenue is Cronos GrowCo's net revenue after intercompany eliminations.
(iii) Gross margin is defined as gross profit divided by net revenue.
(iv) See "Non-GAAP Measures" for more information, including a reconciliation of adjusted earnings (loss) before interest, taxes, depreciation and amortization ("Adjusted EBITDA") to net income (loss) and a reconciliation of Adjusted Gross Profit to gross profit.
(v) Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.
(vi) Dollar amounts are as of the last day of the period indicated.
(vii) Capital expenditures represent component information of investing activities and is defined as the sum of purchase of property, plant and equipment, and purchase of intangible assets.
Third Quarter 2024
Business Updates
Transaction with Cronos GrowCo
The global cannabis market continues to expand as international markets fuel an increasing demand for high-quality products. The investment in Cronos GrowCo's facility expansion enables Cronos to increase supply of Cronos' unique portfolio of genetics which has helped the Company win in the highly competitive Canadian market, as well as expand Cronos' international footprint with distribution to the growing markets in Australia, Germany, and the UK.
Key highlights of the transaction:
Brand and Product Portfolio
Spinach ®
In Q3 2024, Spinach ® was the top-selling cannabis brand in Canada according to Hifyre. This market share success highlights Cronos' unwavering dedication to quality, innovation, and delivering distinctive products to the competitive Canadian adult-use market.
Spinach ® has solidified itself as the go-to brand for a wide array of products featuring different cannabinoid combinations, potency ranges and flavor profiles. In the edibles category, the Spinach ® brand held the number one position with a 17.2% market share in Q3 2024, according to Hifyre.
In Q3 2024, the Spinach ® brand launched three new edible SKUs, which included the SOURZ by Spinach ® Strawberry Watermelon 4:1 CBG|THC gummies, SOURZ by Spinach ® Peach Passionfruit 1:1:1 CBN | CBD | THC gummies, and the brand's first limited edition SOURZ by Spinach ® Caramel Green Apple gummies.
Cronos' strong cannabis cultivar breeding program and portfolio of genetics continued to drive growth, propelling the Spinach ® brand to become the number one flower brand in Canada, with a 6.0% market share in Q3 2024, according to Hifyre.
The Spinach ® brand was ranked fourth in the vape category in Q3 2024, holding a 6.4% market share, according to Hifyre. This performance was driven by popular products such as Spinach HITZ™, which introduced new Pink Lemonade and Rocket Icicle flavors, alongside line extensions in Spinach ® 1.2g Vapes.
In Q3 2024, Spinach ® was ranked eighth in the pre-roll category with 2.7% market share, according to Hifyre. In the sub-category of infused pre-rolls, the Spinach ® Fully Charged infused pre-rolls have begun to make their mark and are trending towards becoming a top selling product. The infused pre-roll category is continuing to grow and we expect this category to be key to future growth for both Cronos and the industry, which is why we are committed to evolution and innovation of the pre-roll portfolio.
PEACE NATURALS ®
In Israel, PEACE NATURALS ® continues to be a top-performing brand with a record volume of sales in Q3 2024, powered by Cronos' advanced genetic breeding program and high-quality cultivation capabilities. Despite the conflict involving Israel, Hamas, Iran and other stakeholders in the region, an incredibly competitive market and declining patient counts due to regulatory market structure shifts, the brand continues to out-perform in the Israeli cannabis market.
In Germany and the UK, we are experiencing strong traction with Cronos' proprietary genetics, such as GMO and Wedding Cake, under the PEACE NATURALS ® brand. The expansion of Cronos GrowCo will help enable Cronos to execute on these growth opportunities and others as they become available.
Guidance and Outlook
The Company reiterates its previously announced operating expense savings target of $5 to $10 million on a standalone basis in 2024 primarily driven by savings in general and administrative, sales and marketing and research and development ("R&D"). The organizational and cost savings initiatives are intended to position the Company to drive profitable and sustainable growth over time. The operating expense savings target excludes the impact of the consolidation of Cronos GrowCo's results into the Company's financial statements.
These statements are forward-looking and actual results may differ materially. Refer to "Forward-Looking Statements" below for information on the factors that could cause actual results to differ materially from these forward-looking statements.
Conference Call
The Company will host a conference call and live audio webcast on Tuesday, November 12, 2024, at 8:30 a.m. ET to discuss 2024 Third Quarter business results. An audio replay of the call will be archived on the Company's website for replay. Instructions for the live audio webcast are provided on the Company's website at https://ir.thecronosgroup.com/events-presentations.
About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® and Lord Jones ® . For more information about Cronos and its brands, please visit: thecronosgroup.com.
Forward-Looking Statements
This press release contains information that constitutes forward-looking information and forward-looking statements within the meaning of applicable securities laws and court decisions (collectively, "Forward-Looking Statements"), which are based upon our current internal expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute Forward-Looking Statements. In some cases, Forward-Looking Statements can be identified by the use of forward-looking terminology, such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussion of strategy. Forward-Looking Statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of historical fact.
Forward-Looking Statements include, but are not limited to, statements with respect to:
Certain of the Forward-Looking Statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The Forward-Looking Statements contained herein are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including: (i) our ability to effectively navigate developments related to the Anti-Dumping Investigation and its impact on our operations in Israel; (ii) our ability to effectively navigate developments related to the Middle East Conflict and its impact on our employees and operations in Israel, the supply of product in the market and demand for product by medical patients in Israel; (iii) our ability to efficiently and effectively distribute our PEACE NATURALS ® brand in Germany with our strategic partner Cansativa and in the UK with our strategic partner GROW ® Pharma and our ability to efficiently and effectively distribute products in Australia with our strategic partner Vitura; (iv) our ability to realize the expected cost-savings and other benefits related to the wind-down of our operations at the Cronos Fermentation facility, (v) expectations related to the impact of our decision to exit our U.S. hemp-derived cannabinoid product operations; (vi) our ability to realize the expected cost-savings, efficiencies and other benefits of our Realignment and other announced cost-cutting measures and employee turnover related thereto; (vii) our ability to efficiently and effectively change the nature of our operations at our Peace Naturals Campus and receive the benefits thereof and acquire raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo; (viii) the timely completion of the expansion of Cronos GrowCo's purpose-built cannabis facility and the ability of Cronos GrowCo to repay the credit facility provided by Cronos; (ix) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our acquisitions and strategic investments; (x) the production and manufacturing capabilities and output from our facilities and our joint ventures, strategic alliances and equity investments; (xi) government regulation of our activities and products including, but not limited to, the areas of cannabis taxation and environmental protection; (xii) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (xiii) consumer interest in our products; (xiv) our ability to differentiate our products, including through the utilization of rare cannabinoids; (xv) competition; (xvi) anticipated and unanticipated costs; (xvii) our ability to generate cash flow from operations; (xviii) our ability to conduct operations in a safe, efficient and effective manner; (xix) our ability to hire and retain qualified staff, and acquire equipment and services in a timely and cost-efficient manner; (xx) our ability to exercise the PharmaCann Option and realize the anticipated benefits of the transaction with PharmaCann; (xxi) our ability to complete planned dispositions, and, if completed, obtain our anticipated sales price; (xxii) general economic, financial market, regulatory and political conditions in which we operate; (xxiii) management's perceptions of historical trends, current conditions and expected future developments; and (xxiv) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.
By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward-Looking Statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, negative impacts on our business and operations in Israel due to the Anti-Dumping Investigation, including that we may not be able to produce, import or sell our products in Israel as a result thereof; negative impacts on our employees, business and operations in Israel due to the Middle East Conflict, including that we may not be able to produce, import or sell our products or protect our people or facilities in Israel during the Middle East Conflict, the supply of product in the market and the demand for product by medical patients in Israel; that we may not be able to successfully continue to distribute our products in Germany, Australia and the UK or generate material revenue from sales in those markets; that we may not be able to achieve the anticipated benefits of the wind-down of our operations at the Cronos Fermentation facility; that we may be unable to further streamline our operations and reduce expenses; that we may not be able to effectively and efficiently re-enter the U.S. market in the future; that we may not be able to access raw materials on a timely and cost-effective basis from third-parties or Cronos GrowCo; that Cronos GrowCo may not be able to complete the expansion of its purpose-built cannabis facility within a reasonable time or repay its borrowings under the credit facility provided by Cronos; the military conflict between Russia and Ukraine may disrupt our operations and those of our suppliers and distribution channels and negatively impact the demand for and use of our products; the risk that cost savings and any other synergies from the Altria Investment may not be fully realized or may take longer to realize than expected; failure to execute key personnel changes; the risks that our Realignment, the change in the nature of our operations at the Peace Naturals Campus and our further leveraging of our strategic partnerships will not result in the expected cost-savings, efficiencies and other benefits or will result in greater than anticipated turnover in personnel; lower levels of revenues; the lack of consumer demand for our products; our inability to manage disruptions in credit markets; unanticipated future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; growth opportunities not turning out as expected; the lack of cash flow necessary to execute our business plan (either within the expected timeframe or at all); difficulty raising capital; the potential adverse effects of judicial, regulatory or other proceedings, or threatened litigation or proceedings, on our business, financial condition, results of operations and cash flows; volatility in and/or degradation of general economic, market, industry or business conditions; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis and U.S. hemp products in vaping devices; the unexpected effects of actions of third parties such as competitors, activist investors or federal (including U.S. federal), state, provincial, territorial or local regulatory authorities or self-regulatory organizations; adverse changes in regulatory requirements in relation to our business and products; legal or regulatory obstacles that could prevent us from being able to exercise the PharmaCann Option and thereby realize the anticipated benefits of the transaction with PharmaCann; dilution of our fully diluted ownership of PharmaCann and the loss of our rights as a result of that dilution; our failure to improve our internal control environment and our systems, processes and procedures; and the factors discussed under Part I, Item 1A "Risk Factors" of the Annual Report on Form 10-K for the year ended December 31, 2023 and under Part II, Item 1A "Risk Factors" in our Quarterly Reports. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on Forward-Looking Statements.
Forward-Looking Statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these Forward-Looking Statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While we believe that the assumptions and expectations reflected in the Forward-Looking Statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-Looking Statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such Forward-Looking Statements. The Forward-Looking Statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
As used in this press release, "CBD" means cannabidiol and "U.S. hemp" has the meaning given to the term "hemp" in the U.S. Agricultural Improvement Act of 2018, including hemp-derived CBD.
| Cronos Group Inc. |
| Condensed Consolidated Balance Sheets |
| (In thousands of U.S. dollars, except share amounts, unaudited) |
| As of September 30, 2024 | As of December 31, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 862,034 | $ | 669,291 | |||
| Short-term investments | — | 192,237 | |||||
| Accounts receivable, net | 20,480 | 13,984 | |||||
| Interest receivable | 7,190 | 10,012 | |||||
| Other receivables | 5,690 | 6,341 | |||||
| Current portion of loans receivable, net | 233 | 5,541 | |||||
| Inventory, net | 47,250 | 30,495 | |||||
| Prepaids and other current assets | 7,326 | 5,405 | |||||
| Held-for-sale assets | 8,971 | — | |||||
| Total current assets | 959,174 | 933,306 | |||||
| Equity method investments, net | — | 19,488 | |||||
| Other investments | 2,900 | 35,251 | |||||
| Non-current portion of loans receivable, net | 16,086 | 69,036 | |||||
| Property, plant and equipment, net | 162,516 | 59,468 | |||||
| Right-of-use assets | 1,052 | 1,356 | |||||
| Goodwill | 38,028 | 1,057 | |||||
| Intangible assets, net | 4,247 | 21,078 | |||||
| Other assets | 130 | 45 | |||||
| Total assets | $ | 1,184,133 | $ | 1,140,085 | |||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 6,532 | $ | 12,130 | |||
| Income taxes payable | 94 | 64 | |||||
| Accrued liabilities | 31,766 | 27,736 | |||||
| Current portion of lease obligation | 980 | 994 | |||||
| Derivative liabilities | 192 | 102 | |||||
| Current portion due to non-controlling interests | — | 373 | |||||
| Total current liabilities | 39,564 | 41,399 | |||||
| Non-current portion due to non-controlling interests | 1,243 | 1,003 | |||||
| Non-current portion of lease obligation | 872 | 1,559 | |||||
| Deferred tax liability | 11,143 | — | |||||
| Total liabilities | 52,822 | 43,961 | |||||
| Shareholders' equity | |||||||
| Share capital | 616,403 | 613,725 | |||||
| Additional paid-in capital | 51,523 | 48,449 | |||||
| Retained earnings | 413,995 | 416,719 | |||||
| Accumulated other comprehensive gain (loss) | (361 | ) | 20,678 | ||||
| Total equity attributable to shareholders of Cronos Group | 1,081,560 | 1,099,571 | |||||
| Non-controlling interests | 49,751 | (3,447 | ) | ||||
| Total shareholders' equity | 1,131,311 | 1,096,124 | |||||
| Total liabilities and shareholders' equity | $ | 1,184,133 | $ | 1,140,085 | |||
| Cronos Group Inc. | |||
| Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | |||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
| (In thousands of U.S. dollars, except share and per share amounts, unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net revenue, before excise taxes | $ | 46,594 | $ | 33,912 | $ | 120,639 | $ | 86,264 | ||||||||||
| Excise taxes | (12,330 | ) | (9,102 | ) | (33,325 | ) | (22,938 | ) | ||||||||||
| Net revenue | 34,264 | 24,810 | 87,314 | 63,326 | ||||||||||||||
| Cost of sales | 30,341 | 20,124 | 72,216 | 52,614 | ||||||||||||||
| Inventory write-down | 312 | 716 | 707 | 716 | ||||||||||||||
| Gross profit | 3,611 | 3,970 | 14,391 | 9,996 | ||||||||||||||
| Operating expenses | ||||||||||||||||||
| Sales and marketing | 5,528 | 5,296 | 15,190 | 16,334 | ||||||||||||||
| Research and development | 1,242 | 1,246 | 3,201 | 4,392 | ||||||||||||||
| General and administrative | 12,760 | 14,366 | 34,434 | 39,673 | ||||||||||||||
| Restructuring costs | — | 1,423 | 630 | 1,423 | ||||||||||||||
| Share-based compensation | 2,262 | 1,957 | 6,513 | 6,823 | ||||||||||||||
| Depreciation and amortization | 1,098 | 1,457 | 3,237 | 4,515 | ||||||||||||||
| Impairment loss on long-lived assets | 14,376 | — | 16,350 | — | ||||||||||||||
| Total operating expenses | 37,266 | 25,745 | 79,555 | 73,160 | ||||||||||||||
| Operating loss | (33,655 | ) | (21,775 | ) | (65,164 | ) | (63,164 | ) | ||||||||||
| Other income | ||||||||||||||||||
| Interest income, net | 12,460 | 13,375 | 40,156 | 37,021 | ||||||||||||||
| Share of income from equity method investments | — | 1,057 | 2,365 | 831 | ||||||||||||||
| Gain on revaluation of loan receivable | 11,804 | — | 11,804 | — | ||||||||||||||
| Gain on revaluation of equity method investment | 32,469 | — | 32,469 | — | ||||||||||||||
| Loss on revaluation of financial instruments | (293 | ) | (5,291 | ) | (6,550 | ) | (7,856 | ) | ||||||||||
| Impairment loss on other investments | — | — | (25,650 | ) | — | |||||||||||||
| Foreign currency transaction gain (loss) | (7,432 | ) | 8,816 | 12,370 | 3,999 | |||||||||||||
| Loss on held-for-sale assets | (10,422 | ) | — | (10,422 | ) | — | ||||||||||||
| Other, net | (315 | ) | 974 | (737 | ) | 1,011 | ||||||||||||
| Total other income | 38,271 | 18,931 | 55,805 | 35,006 | ||||||||||||||
| Income (loss) before income taxes | 4,616 | (2,844 | ) | (9,359 | ) | (28,158 | ) | |||||||||||
| Income tax benefit | (2,708 | ) | (1,254 | ) | (5,440 | ) | (2,870 | ) | ||||||||||
| Income (loss) from continuing operations | 7,324 | (1,590 | ) | (3,919 | ) | (25,288 | ) | |||||||||||
| Loss from discontinued operations | — | (182 | ) | — | (4,238 | ) | ||||||||||||
| Net income (loss) | 7,324 | (1,772 | ) | (3,919 | ) | (29,526 | ) | |||||||||||
| Net loss attributable to non-controlling interest | (1,025 | ) | (128 | ) | (1,270 | ) | (353 | ) | ||||||||||
| Net income (loss) attributable to Cronos Group | $ | 8,349 | $ | (1,644 | ) | $ | (2,649 | ) | $ | (29,173 | ) | |||||||
| Comprehensive income (loss) | ||||||||||||||||||
| Net income (loss) | $ | 7,324 | $ | (1,772 | ) | $ | (3,919 | ) | $ | (29,526 | ) | |||||||
| Other comprehensive income (loss) | ||||||||||||||||||
| Foreign exchange gain (loss) on translation | 12,408 | (20,090 | ) | (20,113 | ) | (1,096 | ) | |||||||||||
| Comprehensive income (loss) | 19,732 | (21,862 | ) | (24,032 | ) | (30,622 | ) | |||||||||||
| Comprehensive loss attributable to non-controlling interests | (269 | ) | (41 | ) | (344 | ) | (136 | ) | ||||||||||
| Comprehensive income (loss) attributable to Cronos Group | $ | 20,001 | $ | (21,821 | ) | $ | (23,688 | ) | $ | (30,486 | ) | |||||||
| Net income (loss) per share | ||||||||||||||||||
| Basic - continuing operations | $ | 0.02 | $ | — | $ | (0.01 | ) | $ | (0.07 | ) | ||||||||
| Basic - discontinued operations | — | — | — | (0.01 | ) | |||||||||||||
| Basic net income (loss) per share attributable to Cronos Group | $ | 0.02 | $ | — | $ | (0.01 | ) | $ | (0.08 | ) | ||||||||
| Diluted - continuing operations | $ | 0.02 | $ | — | $ | (0.01 | ) | $ | (0.07 | ) | ||||||||
| Diluted - discontinued operations | — | — | — | (0.01 | ) | |||||||||||||
| Diluted net income (loss) per share attributable to Cronos Group | $ | 0.02 | $ | — | $ | (0.01 | ) | $ | (0.08 | ) | ||||||||
| Cronos Group Inc. | |
| Condensed Consolidated Statements of Cash Flows | |
| (In thousands of U.S. dollars, except share amounts, unaudited) | |
| Nine months ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Operating activities | |||||||
| Net loss | $ | (3,919 | ) | $ | (29,526 | ) | |
| Adjustments to reconcile net loss to cash used in operating activities: | |||||||
| Share-based compensation | 6,513 | 6,840 | |||||
| Depreciation and amortization | 6,811 | 6,933 | |||||
| Impairment loss on long-lived assets | 16,350 | 205 | |||||
| Impairment loss on other investments | 25,650 | — | |||||
| Loss from investments | 4,103 | 7,103 | |||||
| Changes in expected credit losses on long-term financial assets | 1,026 | (1,339 | ) | ||||
| Revaluation of equity method investment | (32,469 | ) | — | ||||
| Revaluation of loan receivable | (11,804 | ) | — | ||||
| Loss on held-for-sale assets | 10,422 | — | |||||
| Inventory step-up recorded to cost of sales | 7,116 | — | |||||
| Foreign currency transaction (gain) loss | (12,370 | ) | (3,999 | ) | |||
| Other non-cash operating activities, net | (11 | ) | (1,904 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable, net | (5,402 | ) | 6,976 | ||||
| Interest receivable | (1,018 | ) | (14,601 | ) | |||
| Other receivables | 1,658 | 25 | |||||
| Prepaids and other current assets | (1,217 | ) | 1,074 | ||||
| Inventory | 7,162 | 976 | |||||
| Accounts payable | (9,102 | ) | (7,595 | ) | |||
| Income taxes payable | (9 | ) | (32,728 | ) | |||
| Accrued liabilities | 1,633 | 1,910 | |||||
| Cash flows provided by (used in) operating activities | 11,123 | (59,650 | ) | ||||
| Investing activities | |||||||
| Purchase of short-term investments | — | (537,186 | ) | ||||
| Proceeds from short-term investments | 187,166 | 380,765 | |||||
| Cash acquired in business combinations | 5,993 | — | |||||
| Dividends received from equity method investment | — | 1,301 | |||||
| Dividend proceeds | — | 346 | |||||
| Advances on loans receivable | (8,822 | ) | — | ||||
| Proceeds from repayment on loans receivable | 5,290 | 14,151 | |||||
| Purchase of property, plant and equipment | (8,868 | ) | (1,287 | ) | |||
| Purchase of intangible assets | (578 | ) | (344 | ) | |||
| Other investing activities | — | 862 | |||||
| Cash flows provided by (used in) investing activities | 180,181 | (141,392 | ) | ||||
| Financing activities | |||||||
| Withholding taxes paid on share-based awards | (918 | ) | (812 | ) | |||
| Cash flows used in financing activities | (918 | ) | (812 | ) | |||
| Effect of foreign currency translation on cash and cash equivalents | 2,357 | 8,866 | |||||
| Net change in cash and cash equivalents | 192,743 | (192,988 | ) | ||||
| Cash and cash equivalents, beginning of period | 669,291 | 764,644 | |||||
| Cash and cash equivalents, end of period | $ | 862,034 | $ | 571,656 | |||
| Supplemental cash flow information | |||||||
| Interest paid | $ | — | $ | — | |||
| Interest received | $ | 38,965 | $ | 22,203 | |||
| Income taxes paid | $ | 621 | $ | 33,013 | |||
Non-GAAP Measures
Cronos Group reports its financial results in accordance with Generally Accepted Accounting Principles in the United States ("U.S. GAAP"). This press release refers to measures not recognized under U.S. GAAP ("non-GAAP measures"). These non-GAAP measures do not have a standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management's perspective. Accordingly, non-GAAP measures should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP measures presented in this press release are reconciled to their closest reported U.S. GAAP measure. Reconciliations of historical adjusted financial measures to corresponding U.S. GAAP measures are provided below.
Adjusted EBITDA
Management reviews Adjusted EBITDA, a non-GAAP measure, which excludes non-cash items and items that do not reflect management's assessment of ongoing business performance. Management defines Adjusted EBITDA as net income (loss) before interest, tax expense (benefit), depreciation and amortization adjusted for: share of (income) loss from equity method investments; impairment loss on goodwill and intangible assets; impairment loss on long-lived assets; (gain) loss on revaluation of derivative liabilities; (gain) loss on revaluation of financial instruments; gain on revaluation of loan receivable; gain on revaluation of equity method investment; transaction costs related to strategic projects; loss on held-for-sale assets; impairment loss on other investments; foreign currency transaction loss; other, net; loss from discontinued operations; restructuring costs; inventory write-downs resulting from restructuring actions; share-based compensation; purchase accounting adjustment-related inventory step-up adjustments recorded through cost of sales; and financial statement review costs and reserves related to the restatements of our 2019 and 2021 interim financial statements (the "Restatements"), including the costs related to the settlement of the SEC's and the OSC's investigations of the Restatements and legal costs of defending shareholder class action complaints brought against us as a result of the 2019 restatement (see Part II, Item 1 "Legal Proceedings" of our Quarterly Report on Form 10-Q for the period ended September 30, 2024 for a discussion of the shareholder class action complaints relating to the restatement of the 2019 interim financial statements and the settlement of the SEC's and the OSC's investigations of the Restatements). Results are reported as total consolidated results, reflecting our reporting structure of one reportable segment.
Management believes that Adjusted EBITDA provides the most useful insight into underlying business trends and results and provides a more meaningful comparison of period-over-period results. Management uses Adjusted EBITDA for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.
The following tables set forth a reconciliation of Net income (loss) as determined in accordance with U.S. GAAP to Adjusted EBITDA for the periods indicated:
| Three months ended September 30, 2024 | ||||||||||
| Continuing Operations | Discontinued Operations | Total | ||||||||
| Net income | $ | 7,324 | $ | — | $ | 7,324 | ||||
| Interest income, net | (12,460 | ) | — | (12,460 | ) | |||||
| Income tax benefit | (2,708 | ) | — | (2,708 | ) | |||||
| Depreciation and amortization | 3,567 | — | 3,567 | |||||||
| EBITDA | (4,277 | ) | — | (4,277 | ) | |||||
| Impairment loss on long-lived assets (i) | 14,376 | — | 14,376 | |||||||
| Revaluation gain on loan receivable (ii) | (11,804 | ) | — | (11,804 | ) | |||||
| Gain on revaluation of equity method investment (iii) | (32,469 | ) | — | (32,469 | ) | |||||
| Loss on revaluation of financial instruments (iv) | 293 | — | 293 | |||||||
| Foreign currency transaction loss | 7,432 | — | 7,432 | |||||||
| Transaction costs (vi) | 334 | — | 334 | |||||||
| Loss on held-for-sale assets (vii) | 10,422 | — | 10,422 | |||||||
| Other, net (viii) | 315 | — | 315 | |||||||
| Share-based compensation (ix) | 2,262 | — | 2,262 | |||||||
| Financial statement review costs (xi) | (19 | ) | — | (19 | ) | |||||
| Inventory step-up recorded to cost of sales (xiii) | 7,116 | — | 7,116 | |||||||
| Adjusted EBITDA | $ | (6,019 | ) | $ | — | $ | (6,019 | ) | ||
| Three months ended September 30, 2023 | |||||||||||
| Continuing Operations | Discontinued Operations | Total | |||||||||
| Net loss | $ | (1,590 | ) | $ | (182 | ) | $ | (1,772 | ) | ||
| Interest income, net | (13,375 | ) | (1 | ) | (13,376 | ) | |||||
| Income tax benefit | (1,254 | ) | — | (1,254 | ) | ||||||
| Depreciation and amortization | 2,148 | — | 2,148 | ||||||||
| EBITDA | (14,071 | ) | (183 | ) | (14,254 | ) | |||||
| Share of income from equity method investments | (1,057 | ) | — | (1,057 | ) | ||||||
| Loss on revaluation of financial instruments (iv) | 5,291 | — | 5,291 | ||||||||
| Foreign currency transaction gain | (8,816 | ) | — | (8,816 | ) | ||||||
| Other, net (viii) | (974 | ) | (31 | ) | (1,005 | ) | |||||
| Restructuring costs (ix) | 1,423 | 28 | 1,451 | ||||||||
| Share-based compensation (x) | 1,957 | (4 | ) | 1,953 | |||||||
| Financial statement review costs (xi) | 344 | — | 344 | ||||||||
| Inventory write-down (xii) | 716 | — | 716 | ||||||||
| Adjusted EBITDA | $ | (15,187 | ) | $ | (190 | ) | $ | (15,377 | ) | ||
| Nine months ended September 30, 2024 | ||||||||||
| Continuing Operations | Discontinued Operations | Total | ||||||||
| Net loss | $ | (3,919 | ) | $ | — | $ | (3,919 | ) | ||
| Interest income, net | (40,156 | ) | — | (40,156 | ) | |||||
| Income tax benefit | (5,440 | ) | — | (5,440 | ) | |||||
| Depreciation and amortization | 6,811 | — | 6,811 | |||||||
| EBITDA | (42,704 | ) | — | (42,704 | ) | |||||
| Share of income from equity method investments | (2,365 | ) | — | (2,365 | ) | |||||
| Impairment loss on long-lived assets (i) | 16,350 | — | 16,350 | |||||||
| Revaluation gain on loan receivable (ii) | (11,804 | ) | — | (11,804 | ) | |||||
| Gain on revaluation of equity method investment (iii) | (32,469 | ) | — | (32,469 | ) | |||||
| Loss on revaluation of financial instruments (iv) | 6,550 | — | 6,550 | |||||||
| Impairment loss on other investments (v) | 25,650 | — | 25,650 | |||||||
| Foreign currency transaction gain | (12,370 | ) | — | (12,370 | ) | |||||
| Transaction costs (vi) | 530 | — | 530 | |||||||
| Loss on held-for-sale assets (vii) | 10,422 | — | 10,422 | |||||||
| Other, net (viii) | 737 | — | 737 | |||||||
| Restructuring costs (ix) | 630 | — | 630 | |||||||
| Share-based compensation (x) | 6,513 | — | 6,513 | |||||||
| Financial statement review costs (xi) | (525 | ) | — | (525 | ) | |||||
| Inventory step-up recorded to cost of sales (xiii) | 7,116 | — | 7,116 | |||||||
| Adjusted EBITDA | $ | (27,739 | ) | $ | — | $ | (27,739 | ) | ||
| Nine months ended September 30, 2023 | |||||||||||
| Continuing Operations | Discontinued Operations | Total | |||||||||
| Net loss | $ | (25,288 | ) | $ | (4,238 | ) | $ | (29,526 | ) | ||
| Interest income, net | (37,021 | ) | (9 | ) | (37,030 | ) | |||||
| Income tax benefit | (2,870 | ) | — | (2,870 | ) | ||||||
| Depreciation and amortization | 6,689 | 244 | 6,933 | ||||||||
| EBITDA | (58,490 | ) | (4,003 | ) | (62,493 | ) | |||||
| Share of income from equity method investments | (831 | ) | — | (831 | ) | ||||||
| Impairment loss on long-lived assets (i) | — | 205 | 205 | ||||||||
| Loss on revaluation of financial instruments (iv) | 7,856 | — | 7,856 | ||||||||
| Foreign currency transaction gain | (3,999 | ) | — | (3,999 | ) | ||||||
| Other, net (viii) | (1,011 | ) | 132 | (879 | ) | ||||||
| Restructuring costs (ix) | 1,423 | 562 | 1,985 | ||||||||
| Share-based compensation (x) | 6,823 | 17 | 6,840 | ||||||||
| Financial statement review costs (xi) | 739 | — | 739 | ||||||||
| Inventory write-down (xii) | 716 | 839 | 1,555 | ||||||||
| Adjusted EBITDA | $ | (46,774 | ) | $ | (2,248 | ) | $ | (49,022 | ) | ||
(i) For the three and nine months ended September 30, 2024, impairment loss on long-lived assets included $14,258 related to the write-down of our Ginkgo exclusive licenses. For the nine months ended September 30, 2024, impairment loss on long-lived assets included $1,631 related to the winding down of operations at the Cronos Fermentation Facility. For the nine months ended September 30, 2023, impairment loss on long-lived assets related to certain leased properties associated with the Company's U.S. operations.
(ii) For the three and nine months ended September 30, 2024, a revaluation gain on loan receivable was recognized as a result of the Cronos GrowCo transaction on July 1, 2024.
(iii) For the three and nine months ended September 30, 2024, the gain on revaluation of equity method investment was recognized as a result of the Cronos GrowCo transaction on July 1, 2024.
(iv) For the three and nine months ended September 30, 2024 and 2023, loss on revaluation of financial instruments related primarily to the Company's equity securities in Vitura.
(v) For the nine months ended September 30, 2024, impairment loss on other investments represents the fair value change on the PharmaCann Option.
(vi) For the three and nine months ended September 30, 2024, transaction costs represent professional fees associated with the Cronos GrowCo transaction.
(vii) For the three and nine months ended September 30, 2024, a loss on held-for-sale assets was recognized as a result of the change in the Company's sales strategy for the Cronos Fermentation Facility to market the assets to a broader buyer pool.
(viii) For the three and nine months ended September 30, 2024 and 2023, other, net related to (gain) loss on disposal of assets and (gain) loss on revaluation of derivative liabilities.
(ix) For the nine months ended September 30, 2024, restructuring costs from continuing operations related to shutdown costs at the Cronos Fermentation Facility, as well as employee-related severance costs associated with the Realignment. For the three and nine months ended September 30, 2023, restructuring costs related to employee-related severance costs and other restructuring costs associated with our U.S. operations.
(x) For the three and nine months ended September 30, 2024 and 2023, share-based compensation related to the non-cash expenses of share-based compensation awarded to employees under the Company's share-based award plans.
(xi) For the three and nine months ended September 30, 2024 and 2023, financial statement review costs include costs and reserves taken related to the Restatements, costs related to the Company's responses to requests for information from various regulatory authorities relating to the Restatements and legal costs incurred defending shareholder class action complaints brought against the Company as a result of the 2019 restatement. For the three and nine months ended September 30, 2024, a credit balance is presented due to an insurance recovery.
(xii) For the three and nine months ended September 30, 2023, inventory write-downs relate to product destruction and obsolescence associated with the exit of our U.S. operations.
(xiii) For the three and nine months ended September 30, 2024, inventory step-up recorded to cost of sales represents the portion of the inventory step-up from the Cronos GrowCo transaction that was recorded through the condensed consolidated statements of income (loss) and comprehensive income (loss) in both periods.
Adjusted Gross Profit and Adjusted Gross Margin
To supplement the consolidated financial statements presented in accordance with U.S. GAAP, we have presented Adjusted Gross Profit and Adjusted Gross Margin, non-GAAP measures that exclude the impacts of inventory-related purchase accounting adjustments from the calculations of gross profit and gross margin, which resulted from the Cronos GrowCo transaction. Results are reported as total consolidated results, reflecting our reporting structure of one reportable segment.
Management believes that Adjusted Gross Profit and Adjusted Gross Margin provide useful insight into underlying business trends to facilitate comparisons of period-over-period results by removing the impacts of inventory-related purchase accounting adjustments resulting from the Cronos GrowCo transaction, which reflect a one-time event and do not reflect management's assessment of ongoing business performance.
| (in thousands of USD) | Three months ended September 30, | Change | Nine months ended September 30, | Change | ||||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||||||||||||||
| Net revenue | $ | 34,264 | $ | 24,810 | $ | 9,454 | 38 | % | $ | 87,314 | $ | 63,326 | $ | 23,988 | 38 | % | ||||||||||||
| Gross profit | $ | 3,611 | $ | 3,970 | $ | (359 | ) | (9 | )% | $ | 14,391 | $ | 9,996 | $ | 4,395 | 44 | % | |||||||||||
| Inventory step-up recorded to cost of sales | 7,116 | — | 7,116 | N/M | 7,116 | — | 7,116 | N/M | ||||||||||||||||||||
| Adjusted Gross Profit | $ | 10,727 | $ | 3,970 | $ | 6,757 | 170 | % | $ | 21,507 | $ | 9,996 | $ | 11,511 | 115 | % | ||||||||||||
| Gross margin (i) | 11 | % | 16 | % | N/A | (5)pp | 16 | % | 16 | % | N/A | —pp | ||||||||||||||||
| Adjusted Gross Margin (ii) | 31 | % | 16 | % | N/A | 15pp | 25 | % | 16 | % | N/A | 9pp | ||||||||||||||||
(i) Gross margin is defined as gross profit divided by net revenue.
(ii) Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.
Constant Currency
To supplement the consolidated financial statements presented in accordance with U.S. GAAP, we have presented constant currency adjusted financial measures for net revenue, gross profit, gross profit margin, operating expenses, net income (loss) and Adjusted EBITDA for the three and nine months ended September 30, 2024, as well as cash and cash equivalents and short-term investment balances as of September 30, 2024 compared to December 31, 2023, which are considered non-GAAP financial measures. We present constant currency information to provide a framework for assessing how our underlying operations performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period income statement results in currencies other than U.S. dollars are converted into U.S. dollars using the average exchange rates from the three and nine months comparative periods in 2023 rather than the actual average exchange rates in effect during the respective current periods; constant currency current and prior comparative balance sheet information is translated at the prior year-end spot rate rather than the current period spot rate. All growth comparisons relate to the corresponding period in 2023. We have provided this non-GAAP financial information to aid investors in better understanding the performance of our operations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
The table below sets forth certain measures of consolidated results from continuing operations on a constant currency basis for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 as well as cash and cash equivalents and short-term investments as of September 30, 2024 and December 31, 2023, both on an as-reported and constant currency basis (in thousands):
| As Reported | As Adjusted for Constant Currency | ||||||||||||||||||||||||
| Three months ended September 30, | As Reported Change | Three months ended September 30, | Constant Currency Change | ||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | |||||||||||||||||||
| Net revenue | $ | 34,264 | $ | 24,810 | $ | 9,454 | 38 | % | $ | 34,661 | $ | 9,851 | 40 | % | |||||||||||
| Gross profit | 3,611 | 3,970 | (359 | ) | (9 | )% | 3,608 | (362 | ) | (9 | )% | ||||||||||||||
| Gross margin | 11 | % | 16 | % | N/A | (5)pp | 10 | % | N/A | (6)pp | |||||||||||||||
| Operating expenses | 37,266 | 25,745 | 11,521 | 45 | % | 38,079 | 12,334 | 48 | % | ||||||||||||||||
| Net income (loss) from continuing operations | 7,324 | (1,590 | ) | 8,914 | N/M | 8,219 | 9,809 | N/M | |||||||||||||||||
| Adjusted EBITDA | (6,019 | ) | (15,187 | ) | 9,168 | 60 | % | (6,514 | ) | 8,673 | 57 | % | |||||||||||||
| Nine months ended September 30, | As Reported Change | Nine months ended September 30, | Constant Currency Change | ||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | |||||||||||||||||||
| Net revenue | $ | 87,314 | $ | 63,326 | $ | 23,988 | 38 | % | $ | 88,456 | $ | 25,130 | 40 | % | |||||||||||
| Gross profit | 14,391 | 9,996 | 4,395 | 44 | % | 14,591 | 4,595 | 46 | % | ||||||||||||||||
| Gross margin | 16 | % | 16 | % | N/A | —pp | 16 | % | N/A | —pp | |||||||||||||||
| Operating expenses | 79,555 | 73,160 | 6,395 | 9 | % | 80,415 | 7,255 | 10 | % | ||||||||||||||||
| Net loss from continuing operations | (3,919 | ) | (25,288 | ) | 21,369 | 85 | % | (2,424 | ) | 22,864 | 90 | % | |||||||||||||
| Adjusted EBITDA | (27,739 | ) | (46,774 | ) | 19,035 | 41 | % | (28,022 | ) | 18,752 | 40 | % | |||||||||||||
| As of September 30, | As of December 31, | As Reported Change | As of September 30, | Constant Currency Change | |||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | |||||||||||||||||||
| Cash and cash equivalents | $ | 862,034 | $ | 669,291 | $ | 192,743 | 29 | % | $ | 865,277 | $ | 195,986 | 29 | % | |||||||||||
| Short-term investments | — | 192,237 | (192,237 | ) | (100 | )% | — | (192,237 | ) | (100 | )% | ||||||||||||||
| Total cash and cash equivalents and short-term investments | $ | 862,034 | $ | 861,528 | $ | 506 | — | % | $ | 865,277 | $ | 3,749 | — | % | |||||||||||
Net revenue
| As Reported | As Adjusted for Constant Currency | |||||||||||||||||||
| Three months ended September 30, | As Reported Change | Three months ended September 30, | Constant Currency Change | |||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | ||||||||||||||
| Cannabis flower | $ | 26,328 | $ | 17,414 | $ | 8,914 | 51 | % | $ | 26,601 | $ | 9,187 | 53 | % | ||||||
| Cannabis extracts | 7,789 | 7,268 | 521 | 7 | % | 7,914 | 646 | 9 | % | |||||||||||
| Other | 147 | 128 | 19 | 15 | % | 146 | 18 | 14 | % | |||||||||||
| Net revenue | $ | 34,264 | $ | 24,810 | $ | 9,454 | 38 | % | $ | 34,661 | $ | 9,851 | 40 | % | ||||||
| As Reported | As Adjusted for Constant Currency | |||||||||||||||||||||
| Nine months ended September 30, | As Reported Change | Nine months ended September 30, | Constant Currency Change | |||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | ||||||||||||||||
| Cannabis flower | $ | 64,514 | $ | 44,556 | $ | 19,958 | 45 | % | $ | 65,413 | $ | 20,857 | 47 | % | ||||||||
| Cannabis extracts | 22,580 | 18,495 | 4,085 | 22 | % | 22,823 | 4,328 | 23 | % | |||||||||||||
| Other | 220 | 275 | (55 | ) | (20 | )% | 220 | (55 | ) | (20 | )% | |||||||||||
| Net revenue | $ | 87,314 | $ | 63,326 | $ | 23,988 | 38 | % | $ | 88,456 | $ | 25,130 | 40 | % | ||||||||
| As Reported | As Adjusted for Constant Currency | |||||||||||||||||||
| Three months ended September 30, | As Reported Change | Three months ended September 30, | Constant Currency Change | |||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | ||||||||||||||
| Canada | $ | 24,067 | $ | 18,738 | $ | 5,329 | 28 | % | $ | 24,509 | $ | 5,771 | 31 | % | ||||||
| Israel | 7,259 | 5,673 | 1,586 | 28 | % | 7,201 | 1,528 | 27 | % | |||||||||||
| Other countries | 2,938 | 399 | 2,539 | 636 | % | 2,951 | 2,552 | 640 | % | |||||||||||
| Net revenue | $ | 34,264 | $ | 24,810 | $ | 9,454 | 38 | % | $ | 34,661 | $ | 9,851 | 40 | % | ||||||
| As Reported | As Adjusted for Constant Currency | |||||||||||||||||||
| Nine months ended September 30, | As Reported Change | Nine months ended September 30, | Constant Currency Change | |||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | $ | % | ||||||||||||||
| Canada | $ | 62,781 | $ | 46,767 | $ | 16,014 | 34 | % | $ | 63,553 | $ | 16,786 | 36 | % | ||||||
| Israel | 20,565 | 16,160 | 4,405 | 27 | % | 20,908 | 4,748 | 29 | % | |||||||||||
| Other countries | 3,968 | 399 | 3,569 | 894 | % | 3,995 | 3,596 | 901 | % | |||||||||||
| Net revenue | $ | 87,314 | $ | 63,326 | $ | 23,988 | 38 | % | $ | 88,456 | $ | 25,130 | 40 | % | ||||||
For the three months ended September 30, 2024, net revenue on a constant currency basis was $34.7 million, representing a 40% increase from the three months ended September 30, 2023. For the nine months ended September 30, 2024, net revenue on a constant currency basis was $88.5 million, representing a 40% increase from the nine months ended September 30, 2023. On a constant currency basis, net revenue increased for the three and nine months ended September 30, 2024, primarily due to higher cannabis flower and extract sales in the Canadian market, higher cannabis flower sales in Israel and higher cannabis flower sales in other countries, partially offset by an adverse price/mix in the Canadian adult-use cannabis flower category driving increased excise tax payments as a percentage of net revenue. On a constant currency basis, the Cronos GrowCo transaction contributed $4.3 million of cannabis flower sales in both the three and nine months ended September 30, 2024. No such sales were recognized for the three and nine months ended September 30, 2023.
Gross profit
For the three months ended September 30, 2024, gross profit on a constant currency basis was $3.6 million, representing a 9% decrease from the three months ended September 30, 2023. For the nine months ended September 30, 2024, gross profit on a constant currency basis was $14.6 million, representing a 46% increase from the nine months ended September 30, 2023. On a constant currency basis, gross profit decreased for the three-month comparative periods primarily due to the impact on cost of sales from the inventory step-up from the Cronos GrowCo transaction, partially 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. For the nine month comparative period, the increase was primarily due to higher cannabis flower and extract sales in the Canadian market, higher cannabis flower sales in Israel and higher cannabis flower sales in other countries, partially offset by the impact on cost of sales from the inventory step-up from the Cronos GrowCo transaction. On a constant currency basis, for both the three and nine months ended September 30, 2024, we recognized $7.2 million of inventory step-up from the Cronos GrowCo transaction in cost of sales. No such costs were recognized for the three and nine months ended September 30, 2023.
Operating expenses
For the three months ended September 30, 2024, operating expenses on a constant currency basis were $38.1 million, representing a 48% increase from the three months ended September 30, 2023. For the nine months ended September 30, 2024, operating expenses on a constant currency basis were $80.4 million, representing a 10% increase from the nine months ended September 30, 2023. On a constant currency basis, operating expenses increased for the three and nine months ended September 30, 2024, primarily due to the impairment of the Ginkgo exclusive licenses, partially offset by lower salaries and benefits, professional fees and restructuring costs.
Net income (loss) from continuing operations
For the three months ended September 30, 2024, net income from continuing operations on a constant currency basis was $8.2 million, representing an improvement of $9.8 million from the three months ended September 30, 2023. For the nine months ended September 30, 2024, net loss from continuing operations on a constant currency basis was $2.4 million, representing an improvement of $22.9 million from the nine months ended September 30, 2023.
Adjusted EBITDA
For the three months ended September 30, 2024, Adjusted EBITDA on a constant currency basis was $(6.5) million, representing a 57% improvement from the three months ended September 30, 2023. For the nine months ended September 30, 2024, Adjusted EBITDA on a constant currency basis was $(28.0) million, representing a 40% improvement from the nine months ended September 30, 2023. The improvement in Adjusted EBITDA for the three and nine months ended September 30, 2024 on a constant currency basis was driven by higher cannabis flower and extract sales in the Canadian market, higher cannabis flower sales in Israel and decreases in general and administrative expenses, partially offset by an adverse price/mix in Canada in the cannabis flower category driving increased excise tax payments as a percentage of net revenue.
Cash and cash equivalents & short-term investments
Cash and cash equivalents and short-term investments on a constant currency basis was essentially unchanged at $865.3 million as of September 30, 2024, compared to December 31, 2023.
Foreign currency exchange rates
All currency amounts in this press release are stated in U.S. dollars, which is our reporting currency, unless otherwise noted. All references to "dollars" or "$" are to U.S. dollars. The assets and liabilities of our foreign operations are translated into dollars at the exchange rate in effect as of September 30, 2024, September 30, 2023, and December 31, 2023. Transactions affecting the shareholders' equity (deficit) are translated at historical foreign exchange rates. The condensed consolidated statements of net income (loss) and comprehensive income (loss) and condensed consolidated statements of cash flows of our foreign operations are translated into dollars by applying the average foreign exchange rate in effect for the reporting period as reported on Bloomberg. The exchange rates used to translate from USD to Canadian dollars ("C$") and Israeli New Shekels ("ILS") are shown below:
| (Exchange rates are shown as C$ per $) | As of | ||||
| September 30, 2024 | September 30, 2023 | December 31, 2023 | |||
| Spot rate | 1.3525 | 1.3577 | 1.3243 | ||
| Year-to-date average rate | 1.3601 | 1.3455 | N/A | ||
| (Exchange rates are shown as ILS per $) | As of | ||||
| September 30, 2024 | September 30, 2023 | December 31, 2023 | |||
| Spot rate | 3.7269 | 3.8138 | 3.6163 | ||
| Year-to-date average rate | 3.6994 | 3.6385 | N/A | ||
For further information, please contact:
Anna Shlimak
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
News Provided by GlobeNewswire via QuoteMedia
Trulieve Cannabis Corp . (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended September 30, 2024. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding.
Q3 2024 Financial and Operational Highlights*
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
Recent Developments
Management Commentary
"As voters in Florida cast their ballots across the state today, there is an opportunity to make history by approving cannabis legalization for personal use," said Kim Rivers , Trulieve CEO. "With 156 stores in Florida , scaled production capacity, and sufficient capital to support further investment, if approved, Trulieve is best positioned to fully prepare for the launch of recreational sales next Spring."
Financial Highlights*
Results of Operations | For the Three Months Ended | For the Nine Months Ended | |||||||||||
(Figures in millions except per | September | September | % Better / | June 30, | % Better / | September | September | % Better / | |||||
Revenue | $ | 284 | $ | 275 | 3 % | $ | 303 | (6 %) | $ | 885 | $ | 842 | 5 % |
Gross profit | $ | 173 | $ | 143 | 21 % | $ | 182 | (5 %) | $ | 529 | $ | 435 | 22 % |
Gross margin % | 61 % | 52 % | 60 % | 60 % | 52 % | ||||||||
Operating expenses | $ | 173 | $ | 120 | (44 %) | $ | 132 | (31 %) | $ | 432 | $ | 686 | 37 % |
Operating expenses % | 61 % | 43 % | 43 % | 49 % | 81 % | ||||||||
Net loss** | $ | (60) | $ | (25) | (137 %) | $ | (12) | NMF | $ | (95) | $ | (493) | 81 % |
Net loss continuing | $ | (60) | $ | (23) | (163 %) | $ | (11) | NMF | $ | (94) | $ | (399) | 76 % |
Adjusted net (loss) income | $ | (12) | $ | (15) | 19 % | $ | 0 | NMF | $ | (22) | $ | (47) | 53 % |
Basic and diluted shares | 190 | 189 | 190 | 190 | 189 | ||||||||
EPS continuing operations | $ | (0.32) | $ | (0.12) | (168 %) | $ | (0.04) | NMF | $ | (0.52) | $ | (2.09) | 75 % |
Adjusted EPS | $ | (0.06) | $ | (0.08) | 20 % | $ | 0.00 | NMF | $ | (0.12) | $ | (0.25) | 54 % |
Adjusted EBITDA | $ | 96 | $ | 78 | 24 % | $ | 107 | (10 %) | $ | 309 | $ | 235 | 32 % |
Adjusted EBITDA Margin % | 34 % | 28 % | 35 % | 35 % | 28 % | ||||||||
NMF - No Meaningful Figure |
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. |
**Net loss attributable to common shareholders which excludes non-controlling interest. |
Conference Call
The Company will host a conference call and live audio webcast on November 5, 2024, at 8:30 A.M. Eastern time , to discuss its third quarter 2024 financial results. Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.
North American toll free: 1-844-824-3830 | Passcode: 3735709 | |
International: 1-412-542-4136 | Passcode: 3735709 |
A live audio webcast of the conference call will be available at:
Trulieve Cannabis Corp Q3 2024 Earnings
A powerpoint presentation and archived replay of the webcast will be available at:
https: //investors.trulieve.com/events
The Company's Form 10-Q for the quarter ended September 30, 2024, will be available on the SEC's website or at https://investors.trulieve.com/quarterly-results . The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on https://www.sedarplus.ca/landingpage/ and on its website at https://investors.trulieve.com/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Trulieve Cannabis Corp. Condensed Consolidated Balance Sheets (Unaudited) (in millions, except for share data) | |||
September 30, | December 31, | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 237.7 | $ 201.4 | |
Short-term investments | 80.2 | — | |
Restricted cash | 0.9 | 6.6 | |
Accounts receivable, net | 9.0 | 6.7 | |
Inventories | 220.9 | 213.1 | |
Income tax receivable | 5.8 | — | |
Prepaid expenses | 19.2 | 17.6 | |
Other current assets | 26.6 | 23.7 | |
Notes receivable - current portion, net | 1.8 | 6.2 | |
Assets associated with discontinued operations | 0.9 | 2.0 | |
Total current assets | 603.0 | 477.3 | |
Property and equipment, net | 701.6 | 676.4 | |
Right of use assets - operating, net | 116.1 | 95.9 | |
Right of use assets - finance, net | 65.6 | 58.5 | |
Intangible assets, net | 873.3 | 917.2 | |
Goodwill | 483.9 | 483.9 | |
Notes receivable, net | 5.8 | 7.4 | |
Other assets | 23.0 | 10.4 | |
Long-term assets associated with discontinued operations | 2.0 | 2.0 | |
TOTAL ASSETS | $ 2,874.2 | $ 2,729.1 | |
LIABILITIES | |||
Current Liabilities: | |||
Accounts payable and accrued liabilities | $ 96.1 | $ 83.2 | |
Deferred revenue | 6.7 | 1.3 | |
Notes payable - current portion | 3.3 | 3.8 | |
Operating lease liabilities - current portion | 11.6 | 10.1 | |
Finance lease liabilities - current portion | 9.1 | 7.6 | |
Construction finance liabilities - current portion | 1.8 | 1.5 | |
Contingencies | 4.6 | 4.4 | |
Liabilities associated with discontinued operations | 3.5 | 3.0 | |
Total current liabilities | 136.7 | 114.8 | |
Long-Term Liabilities: | |||
Private placement notes, net | 364.4 | 363.2 | |
Notes payable, net | 112.8 | 115.9 | |
Operating lease liabilities | 113.4 | 92.2 | |
Finance lease liabilities | 68.4 | 61.7 | |
Construction finance liabilities | 135.9 | 136.7 | |
Deferred tax liabilities | 204.2 | 207.0 | |
Uncertain tax position liabilities | 384.1 | 180.4 | |
Other long-term liabilities | 6.5 | 7.1 | |
Long-term liabilities associated with discontinued operations | 39.4 | 41.6 | |
TOTAL LIABILITIES | $ 1,565.8 | $ 1,320.4 | |
MEZZANINE EQUITY | |||
Redeemable non-controlling interest | $ 7.1 | $ — | |
SHAREHOLDERS' EQUITY | |||
Common stock, no par value; unlimited shares authorized. 189,154,228 and | $ — | $ — | |
Additional paid-in-capital | 2,048.0 | 2,055.1 | |
Accumulated deficit | (736.0) | (640.6) | |
Non-controlling interest | (10.7) | (5.9) | |
TOTAL SHAREHOLDERS' EQUITY | 1,301.3 | 1,408.6 | |
TOTAL LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY | $ 2,874.2 | $ 2,729.1 | |
Trulieve Cannabis Corp. Condensed Consolidated Statements of Operations (Unaudited) (in millions, except for share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 284.3 | $ 275.2 | $ 885.3 | $ 842.2 | |||
Cost of goods sold | 111.0 | 132.3 | 356.6 | 407.4 | |||
Gross profit | 173.3 | 142.9 | 528.7 | 434.8 | |||
Expenses: | |||||||
Sales and marketing | 66.7 | 59.4 | 191.0 | 181.2 | |||
General and administrative | 81.9 | 34.5 | 161.5 | 108.7 | |||
Depreciation and amortization | 28.3 | 27.0 | 84.2 | 82.6 | |||
Impairment and disposal of long-lived assets, net of (recoveries) | (4.3) | (1.2) | (4.4) | 5.5 | |||
Impairment of goodwill | — | — | — | 307.6 | |||
Total expenses | 172.7 | 119.6 | 432.3 | 685.6 | |||
Income (loss) from operations | 0.6 | 23.3 | 96.5 | (250.8) | |||
Other income (expense): | |||||||
Interest expense, net | (17.5) | (20.8) | (47.6) | (60.9) | |||
Interest income | 4.2 | 1.9 | 11.5 | 4.3 | |||
Gain on debt extinguishment | — | 8.2 | — | 8.2 | |||
Other (expense) income, net | (0.2) | 1.1 | (4.8) | 5.9 | |||
Total other expense, net | (13.5) | (9.6) | (40.9) | (42.6) | |||
(Loss) income before provision for income taxes | (12.8) | 13.7 | 55.6 | (293.4) | |||
Provision for income taxes | 47.4 | 36.6 | 150.0 | 105.9 | |||
Net loss from continuing operations | (60.2) | (22.9) | (94.4) | (399.3) | |||
Net loss from discontinued operations, net of tax benefit | (1.6) | (2.9) | (4.6) | (99.1) | |||
Net loss | (61.9) | (25.8) | (99.0) | (498.3) | |||
Less: net loss attributable to non-controlling interest | (1.4) | (0.5) | (2.8) | (3.8) | |||
Less: net loss attributable to redeemable non-controlling interest | (0.3) | — | (0.9) | — | |||
Less: net loss attributable to non-controlling interest from | — | — | — | (1.2) | |||
Net loss attributable to common shareholders | $ (60.2) | $ (25.4) | $ (95.3) | $ (493.4) | |||
Earnings Per Share (see numerator reconciliation below) | |||||||
Net loss per share - Continuing operations: | |||||||
Basic and diluted | $ (0.32) | $ (0.12) | $ (0.52) | $ (2.09) | |||
Net loss per share - Discontinued operations: | |||||||
Basic and diluted | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.52) | |||
Weighted average number of common shares used in computing net | |||||||
Basic and diluted | 190.2 | 188.9 | 190.0 | 189.0 | |||
EPS Numerator Reconciliation | |||||||
Net loss attributable to common shareholders (from above) | $ (60.2) | $ (25.4) | $ (95.3) | $ (493.4) | |||
Net loss from discontinued operations, net of tax, attributable to | 1.6 | 2.9 | 4.6 | 97.9 | |||
Adjustment of redeemable non-controlling interest to maximum | (2.1) | — | (9.0) | — | |||
Net loss from continuing operations available to common | $ (60.6) | $ (22.5) | $ (99.7) | $ (395.5) | |||
Trulieve Cannabis Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities | |||||||
Net loss | $ (61.9) | $ (25.8) | $ (99.0) | $ (498.3) | |||
Adjustments to reconcile net loss to net cash provided by operating | |||||||
Depreciation and amortization | 28.3 | 27.0 | 84.2 | 83.6 | |||
Depreciation included in cost of goods sold | 13.3 | 14.5 | 40.1 | 45.4 | |||
Gain on debt extinguishment | — | (8.2) | — | (8.2) | |||
Impairment and disposal of long-lived assets, net of (recoveries) | (4.3) | (1.2) | (4.4) | 5.5 | |||
Impairment of goodwill | — | — | — | 307.6 | |||
Amortization of operating lease right of use assets | 3.0 | 2.5 | 8.3 | 7.8 | |||
Share-based compensation | 5.5 | 4.5 | 15.6 | 7.4 | |||
Allowance for credit losses | 0.5 | 0.5 | 4.9 | 0.9 | |||
Deferred income taxes | (6.2) | (6.5) | (2.7) | (18.7) | |||
Loss from disposal of discontinued operations | — | 0.6 | — | 69.8 | |||
Other non-cash changes | (0.3) | 1.7 | 0.9 | 5.0 | |||
Changes in operating assets and liabilities: | |||||||
Inventories | (13.3) | 26.2 | (8.3) | 66.5 | |||
Accounts receivable | (1.5) | (1.2) | (0.7) | (1.9) | |||
Prepaid expenses and other current assets | 4.9 | 4.3 | (0.9) | 9.3 | |||
Other assets | (1.1) | 0.3 | (6.1) | 2.0 | |||
Accounts payable and accrued liabilities | 4.9 | 8.9 | 4.6 | 4.5 | |||
Income tax receivable / payable | 0.5 | (0.1) | (4.3) | (49.9) | |||
Other liabilities | — | 0.9 | 0.2 | (14.4) | |||
Operating lease liabilities | (1.6) | (2.1) | (6.0) | (6.9) | |||
Deferred revenue | 2.3 | (2.2) | 5.3 | (6.0) | |||
Uncertain tax position liabilities | 51.0 | 50.7 | 203.8 | 61.8 | |||
Other long-term liabilities | 1.8 | (1.8) | (0.7) | (2.6) | |||
Proceeds received from insurance for operating expenses | 4.4 | — | 5.9 | — | |||
Net cash provided by operating activities | 30.3 | 93.4 | 240.8 | 70.4 | |||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (36.9) | (6.3) | (79.0) | (31.0) | |||
Capitalized interest | (1.2) | 0.9 | (0.9) | 0.1 | |||
Purchases of internal use software | (6.8) | (3.4) | (18.3) | (7.7) | |||
Purchases of short-term investments | (80.0) | — | (80.0) | — | |||
Cash paid for licenses | (6.5) | — | (7.0) | (4.0) | |||
Payment for initial direct costs on finance leases | (0.6) | — | (0.6) | — | |||
Proceeds from disposal activities | 0.3 | 3.5 | 1.0 | 11.7 | |||
Proceeds from notes receivable repayments | 0.3 | 0.2 | 0.9 | 0.6 | |||
Proceeds received from insurance recoveries on property and equipment | — | — | 0.5 | — | |||
Net cash used in investing activities | (131.5) | (5.0) | (183.4) | (30.3) | |||
Cash flows from financing activities | |||||||
Payments for taxes related to net share settlement of equity awards | (12.2) | — | (12.3) | — | |||
Payments on finance lease obligations | (1.9) | (1.8) | (5.5) | (5.7) | |||
Payments on notes payable | (1.4) | (0.7) | (3.8) | (5.5) | |||
Payments on construction finance liabilities | (0.9) | (0.7) | (2.5) | (1.3) | |||
Payments and costs related to consolidated VIE settlement transaction | — | — | (5.1) | — | |||
Distributions to subsidiary non-controlling interest | — | — | (1.1) | (0.1) | |||
Payments on private placement notes | — | (47.6) | — | (47.6) | |||
Payments for debt issuance costs | — | (0.4) | — | (0.4) | |||
Proceeds from non-controlling interest holders' subscription | — | — | 3.0 | — | |||
Proceeds from equity exercises | — | — | 0.2 | — | |||
Net cash used in financing activities | (16.4) | (51.3) | (27.1) | (60.6) | |||
Net (decrease) increase in cash, and cash equivalents | (117.5) | 37.2 | 30.3 | (20.5) | |||
Cash, cash equivalents, and restricted cash, beginning of period | 356.1 | 159.9 | 208.0 | 213.8 | |||
Cash and cash equivalents of discontinued operations, beginning of | — | 1.8 | 0.3 | 5.7 | |||
Less: cash and cash equivalents of discontinued operations, end of period | — | (0.1) | — | (0.1) | |||
Cash, cash equivalents, and restricted cash, end of period | $ 238.6 | $ 198.9 | $ 238.6 | $ 198.9 | |||
The consolidated statements of cash flows include continuing operations and discontinued operations for the periods presented. | |||||||
Non-GAAP Financial Measures (Unaudited)
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin %, adjusted net (loss) income, adjusted net (loss) income per diluted share, and free cash flow. The Company calculates EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization; adjusted EBITDA as net income (loss) before net interest expense, interest income, income tax expense, depreciation and amortization and also excludes certain extraordinary items; adjusted EBITDA margin as adjusted EBITDA as % of revenue, adjusted net (loss) income as net income (loss) less certain extraordinary items; adjusted EPS as adjusted net (loss) income divided by basic and diluted shares outstanding; and free cash flow as cash flow from operations less capital expenditures. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures are not, and should not be considered as, measures of liquidity. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.
Reconciliation of Non-GAAP EBITDA and Adjusted EBITDA (Unaudited)
The following table presents a reconciliation of GAAP net loss attributable to common shareholders to non-GAAP EBITDA and Adjusted EBITDA for each of the periods presented:
(Amounts expressed in millions of United States dollars) | Three Months Ended | For the Nine Months Ended | ||||||||
September | September | June 30, | September | September | ||||||
Net loss attributable to common shareholders | $ | (60.2) | $ | (25.4) | $ | (12.0) | $ | (95.3) | $ | (493.4) |
Add (deduct) impact of: | ||||||||||
Interest expense, net | $ | 17.5 | $ | 20.8 | $ | 15.4 | $ | 47.6 | $ | 60.9 |
Interest income | $ | (4.2) | $ | (1.9) | $ | (4.0) | $ | (11.5) | $ | (4.3) |
Provision for income taxes | $ | 47.4 | $ | 36.6 | $ | 47.2 | $ | 150.0 | $ | 105.9 |
Depreciation and amortization | $ | 28.3 | $ | 27.0 | $ | 28.1 | $ | 84.2 | $ | 82.6 |
Depreciation included in cost of goods sold | $ | 13.3 | $ | 14.6 | $ | 13.3 | $ | 40.1 | $ | 42.7 |
EBITDA (Non-GAAP) | $ | 42.1 | $ | 71.8 | $ | 88.0 | $ | 215.0 | $ | (205.5) |
EBITDA Margin (Non-GAAP) | 15 % | 26 % | 29 % | 24 % | (24 %) | |||||
Impairment of goodwill | $ | — | $ | — | $ | — | $ | — | $ | 307.6 |
Impairment and disposal of long-lived assets, net of | $ | (4.3) | $ | (1.2) | $ | 1.2 | $ | (4.4) | $ | 5.5 |
Legislative campaign contributions | $ | 48.4 | $ | 0.5 | $ | 5.0 | $ | 62.7 | $ | 19.6 |
Acquisition, transaction, and other non-recurring costs | $ | 2.6 | $ | 8.5 | $ | 4.3 | $ | 10.6 | $ | 16.1 |
Share-based compensation | $ | 5.5 | $ | 4.5 | $ | 5.0 | $ | 15.6 | $ | 7.4 |
Gain on debt extinguishment | $ | — | $ | (8.2) | $ | — | $ | — | $ | (8.2) |
Other (expense) income, net | $ | 0.2 | $ | (1.1) | $ | 1.8 | $ | 4.8 | $ | (5.9) |
Discontinued operations, net of tax, attributable to | $ | 1.6 | $ | 2.9 | $ | 1.6 | $ | 4.6 | $ | 97.9 |
Adjusted EBITDA (Non-GAAP) | $ | 96.1 | $ | 77.7 | $ | 107.0 | $ | 308.8 | $ | 234.5 |
Adjusted EBITDA Margin (Non-GAAP) | 34 % | 28 % | 35 % | 35 % | 28 % | |||||
Reconciliation of Non-GAAP Adjusted Net (Loss) Income (Unaudited)
The following table presents a reconciliation of GAAP net loss attributable to common shareholders to non-GAAP adjusted net (loss) income, for each of the periods presented:
For the Three Months Ended | For the Nine Months Ended | |||||||||
(Amounts expressed in millions of United States dollars) | September | September | June 30, | September | September | |||||
Net loss attributable to common shareholders | $ | (60.2) | $ | (25.4) | $ | (12.0) | $ | (95.3) | $ | (493.4) |
Net loss from discontinued operations, net of tax, | $ | 1.6 | $ | 2.9 | $ | 1.6 | $ | 4.6 | $ | 97.9 |
Adjustment of redeemable non-controlling interest to | $ | (2.1) | $ | — | $ | 1.9 | $ | (9.0) | $ | — |
Net loss from continuing operations available to common | $ | (60.6) | $ | (22.5) | $ | (8.5) | $ | (99.7) | $ | (395.5) |
Add (deduct) impact of: | ||||||||||
Adjustment of redeemable non-controlling interest to | $ | 2.1 | $ | — | $ | (1.9) | $ | 9.0 | $ | — |
Impairment of goodwill | $ | — | $ | — | $ | — | $ | — | $ | 307.6 |
Impairment and disposal of long-lived assets, net of | $ | (4.3) | $ | (1.2) | $ | 1.2 | $ | (4.4) | $ | 5.5 |
Legislative campaign contributions | $ | 48.4 | $ | 0.5 | $ | 5.0 | $ | 62.7 | $ | 19.6 |
Acquisition, transaction, and other non-recurring costs | $ | 2.6 | $ | 8.5 | $ | 4.3 | $ | 10.6 | $ | 16.1 |
Fair value of derivative liabilities - warrants | $ | — | $ | — | $ | — | $ | — | $ | (0.3) |
Adjusted net (loss) income (Non-GAAP) | $ | (11.9) | $ | (14.7) | $ | 0.2 | $ | (21.9) | $ | (47.0) |
Reconciliation of Non-GAAP Adjusted Net (Loss) Income Per Diluted Share (Unaudited)
The following table presents a reconciliation of GAAP net loss attributable to common shareholders per share to non-GAAP adjusted net (loss) income per diluted share, for each of the periods presented:
For the Three Months Ended | For the Nine Months Ended | |||||||||
(Amounts expressed are per share except for shares | September | September | June 30, | September | September | |||||
Net loss attributable to common shareholders | $ | (0.32) | $ | (0.13) | $ | (0.06) | $ | (0.50) | $ | (2.61) |
Net loss from discontinued operations, net of tax, | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | 0.02 | $ | 0.52 |
Adjustment of redeemable non-controlling interest to | $ | (0.01) | $ | — | $ | 0.01 | $ | (0.05) | $ | — |
Net loss from continuing operations available to common | $ | (0.32) | $ | (0.12) | $ | (0.04) | $ | (0.52) | $ | (2.09) |
Add (deduct) impact of: | ||||||||||
Adjustment of redeemable non-controlling interest to | $ | 0.01 | $ | — | $ | (0.01) | $ | 0.05 | $ | — |
Impairment of goodwill | $ | — | $ | — | $ | — | $ | — | $ | 1.63 |
Impairment and disposal of long-lived assets, net of | $ | (0.02) | $ | (0.01) | $ | 0.01 | $ | (0.02) | $ | 0.03 |
Legislative campaign contributions | $ | 0.25 | $ | 0.00 | $ | 0.03 | $ | 0.33 | $ | 0.10 |
Acquisition, transaction, and other non-recurring costs | $ | 0.01 | $ | 0.05 | $ | 0.02 | $ | 0.06 | $ | 0.09 |
Fair value of derivative liabilities - warrants | $ | — | $ | — | $ | — | $ | — | $ | 0.00 |
Adjusted net (loss) income (Non-GAAP) | $ | (0.06) | $ | (0.08) | $ | 0.00 | $ | (0.12) | $ | (0.25) |
Basic and diluted shares outstanding | 190.2 | 188.9 | 190.3 | 190.0 | 189.0 | |||||
Reconciliation of Non-GAAP Free Cash Flow (Unaudited)
The following table presents a reconciliation of GAAP cash flow from operating activities to non-GAAP free cash flow, for each of the periods presented:
For the Three Months Ended | For the Nine Months Ended | |||||||||
(Amounts expressed in millions of United States dollars) | September | September | June 30, | September | September | |||||
Cash flow from operating activities | $ | 30.3 | $ | 93.4 | $ | 71.3 | $ | 240.8 | $ | 70.4 |
Payments for property and equipment | $ | (36.9) | $ | (6.3) | $ | (26.5) | $ | (79.0) | $ | (31.0) |
Free cash flow (Non-GAAP) | $ | (6.6) | $ | 87.2 | $ | 44.8 | $ | 161.8 | $ | 39.4 |
Forward-Looking Statements
This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, cash flows, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the potential approval of cannabis legalization for personal use in Florida , the Company's growth opportunities and the Company's positioning for the future. Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our periodic reports subsequently filed with the United Sates Securities and Exchange Commission and in the Company's filings on https://www.sedarplus.ca/landingpage/ . Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise.
About Trulieve
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .
Facebook: @Trulieve
Instagram: @Trulieve_
X: @Trulieve
Investor Contact
Christine Hersey , Vice President of Investor Relations
+1 (424) 202-0210
Christine.Hersey@Trulieve.com
Media Contact
Phil Buck , APR, Corporate Communications Manager
+1 (406) 370-6226
Philip.Buck@Trulieve.com
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SOURCE Trulieve Cannabis Corp.
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Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company") will hold its 2024 third quarter earnings conference call on Tuesday, November 12, 2024 at 8:30 a.m. ET. Cronos' senior management team will discuss the Company's financial results and will be available for questions from the investment community after prepared remarks.
To attend the conference call or webcast, participants should register online at https://ir.thecronosgroup.com/events-presentations . To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The webcast of the call will be archived for replay on the Company's website.
About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® and Lord Jones ® . For more information about Cronos and its brands, please visit: thecronosgroup.com .
Forward-looking Statements
This press release may contain information that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, "Forward-looking Statements"). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include statements about Cronos' intention to build an international iconic brand portfolio and develop disruptive intellectual property. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, each of which have been filed on SEDAR+ and EDGAR and can be accessed at www.sedarplus.ca and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.
Cronos Contact
Anna Shlimak
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
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