Cannabis Professional’s daily roundup of industry news. View archive here.
Canopy Rivers posted a net loss of $2.96-million and a comprehensive loss of $8.75-million amid choppy market conditions, while Zenabis announced a “beverage partner” without naming the partner. Aphria Inc. says it’s still “assessing [the] extent of impact” of a fire at its Broken Coast facility last week. iAnthus more than doubled quarterly sales, after MPX acquisition.
– Mark Rendell
Canopy Rivers posts loss amid choppy market conditions
Canopy Rivers Inc. reported a net loss of $2.96-million and a comprehensive loss of $8.75-million, after earning an operating income of $2.69-million, mostly from royalty, interest, and lease income. The investment firm, which has minority stakes in 18 cannabis or cannabis-related companies, made most of its money from “royalty and debenture agreements with Agripharm, Greenhouse Juice, JWC, and Radicle.”
“The Company expects that, in the near term, its net income (loss) and comprehensive income (loss) will continue to be largely driven by net changes in the fair value of financial assets,” the company said in its management discussion and analysis, published Tuesday.
"In turn, the Company expects that these net changes will continue to be largely dependent on the regulatory, business, and capital markets environment in the cannabis industry, which environments will in turn continue to inform the Company’s investment strategy. Given the inherent volatility of valuations of investments in the global cannabis sector, the Company anticipates continued volatility in its financial results,” Rivers said.
Zenabis announces beverage agreement, does not name partner
Zenabis Global Inc. said on Monday that it has signed an agreement with “a Canadian beverage technology company” to produce cannabis-infused drinks — although the company gave little detail about who its partner is, or what kind of products it expects to bring to market. The “beverage partner” will supply Zenabis with “water soluble, odourless, flavourless and colourless cannabis-infused inputs,” Zenabis said in a news release.
“The Beverage Partner will produce the Beverage Inputs using cannabis supplied by Zenabis. At Zenabis' option, the Beverage Partner may also produce finished cannabis-infused beverages for Zenabis by installing a production line for both Beverage Inputs and finished cannabis-infused beverages, at its own cost, at Zenabis Stellarton,” the company said.
Zenabis said it still intends to work with its 51-per-cent-owned subsidiary Hillsboro Corp Inc., to produce CBD-infused kombucha products.
Aphria is ‘assessing extent of impact’ after fire at Broken Coast
Aphria Inc. says it is still “assessing [the] extent of impact” a week after a fire at its Broken Coast facility on Vancouver Island. Last Tuesday, five fire trucks and at least 24 firefighters spent several hours fighting a fire in a multi-unit warehouse used by Broken Coast, according to local newspaper the Cowichan Valley Citizen.
“Thankfully there were no injuries,” Tamara Macgregor, Aphria’s vice president of communications and public affairs, said on Monday in response to questions about the fire. “The management team has identified priorities for the coming days to ensure continuity. We are operational but are currently assessing extent of impact and timeline moving forward."
The Cowichan Valley Citizen reported comments from the municipality’s manager of fire and bylaw services saying that the fire was mostly contained to a drying room, with some smoke damage in the adjacent hallway.
iAnthus sales up in quarter after MPX acquisiton
iAnthus Capital Holdings Inc. more than doubled its revenues in the first full quarter since closing the acquisition of MPX Bioceutical Corp. iAnthus reported US$19.2-million in sales in the three months ending June 30, up from US$9.6-million in the preceding quarter. The company’s net loss was US$9.3-million, and its Adjusted EBITDA loss was $4.7-million (adjusted EBITDA is a non-IFRS accounting measure that differs company to company).
“Sales revenues have increased quarter-over-quarter as a result of the Company’s strategic acquisitions such as the MPX Acquisition which expanded the Company’s footprint on the West Coast, and the expansion of the Company’s wholesale revenue program and additional retail revenue with new dispensary openings in Massachusetts, Florida and New York,” the company said in a news release.
iAnthus operates 26 dispensaries, and expects to have 40 open by the end of the year. It also operates 13 cultivation facilities, and during the quarter the facilities “produced approximately 4,600 pounds of dried and cured cannabis (flower and trim) and approximately 700 pounds of fresh frozen cannabis.”