Canopy’s revenue to top $1 billion this fiscal year, but no clear path to profitability: CEO
Canopy Growth’s revenue will be more than $1 billion this fiscal year, according to the company’s co-CEO Bruce Linton. Speaking on the sidelines of the GMP Securities cannabis conference in Toronto, Linton added that he expects Canopy’s revenue will grow steadily this year, and then spike in the last quarter as more licensed retail outlets. “The rate of growth will accelerate in the fourth calendar quarter just because of more stores and better products — a reason to go to the store,” he said. Meanwhile, analysts expect Canopy’s revenue to reach $840.5 million for fiscal 2020, according to the average of estimates compiled by Bloomberg.
CannTrust expecting 50,000 kg annual production by 2020, highlights cheap per gram output
CannTrust is preparing for a huge spike in its production capabilities. The company received approval from Health Canada on April 8 for an expansion of its perpetual harvest greenhouse in Pelham, Ont. CannTrust CEO Peter Aceto told BNN Bloomberg in a Tuesday interview that the full operation of the greenhouse could push the company’s output capacity to 50,000 kg annually by 2020. So, what does all that weed look like? “I have seen more cannabis of the highest quality than I have ever seen in some time,” Aceto said.
Aurora Cannabis wholly acquires rest of Hempco stake it didn’t own
Aurora Cannabis bulked up its hemp plans after announcingit will acquire the remaining 48 per cent of Hempco Food and Fiber that it does not already own through an exchange of shares. Under a friendly agreement between the companies, Edmonton-based Aurora will pay the equivalent of $1.04 per Hempco share, payable in Aurora shares. Aurora already owns approximately a 52 per cent stake in Hempco, which produces hemp-based foods and nutritional supplements for people and animals. Hemp companies have been in high demand over the past several months following the passage of the U.S. 2018 Farm Bill that legalized the production of industrial hemp across state lines.
Flurry of Cannabis ETFs to launch in the next coming days
The cannabis ETF listings are coming fast and furious these days with the AdvisorShares Pure Cannabis ETF announcing it will undercut competitors when it debuts on Thursday. AdvisorShares’ pot-focused ETF will charge 74 basis points, or US$7.40 for every $1,000 invested, which is also 1 basis point less than the ETFMG Alternative Harvest ETF, known as MJ. The announcement comes after Horizons ETFs Management filed its final prospectus late Monday to launch a new U.S.-focused exchange traded fund while Evolve Funds Group will launch a similar ETF – both of which will trade on the NEO Exchange.
Canadian cannabis retailer NAC reports $16.2M in revenue despite posting $5.6M loss
National Access Cannabis, the biggest cannabis retailer in Canada, reported $16.2 million in revenue in its fiscal second-quarter of 2019, while posting a $5.6 million loss. The company, which operates 23 stores in Alberta and Manitoba, said it generated over $27 million in cumulative recreational cannabis sales since legalization on October. The company also reported margins around 33 per cent during the most recent quarter. NAC plans to enter the Saskatchewan market with one store in Moose Jaw as well as an e-commerce platform and is eyeing a “focused strategy for Ontario”, although it has no firm announcements to enter that particular province.