Palm Beach, FL – May 16, 2023 – FinancialNewsMedia.com News Commentary – The uses of cannabis in various markets has continued to grow in recent years. A report from Grand View Research said that, in the United States, cannabis is often used in the cosmetic, pharmaceutical, and food & beverage industries. The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market. The increasing research on the use of cannabis and its medicinal properties has led to its increased use to treat various chronic conditions. They are found to be effective in treating chronic pain and nausea caused due to chemotherapy. Furthermore, the constant rise in the legitimization of medical cannabis has resulted in the growth of the market. For instance, the Food and Drug Administration (FDA) has approved the use of cannabis-derived drug products such as Epidiolex, Cesamet, etc. for treating seizures, and chemotherapy-induced side effects respectively. Moreover, in December 2020, the U.S. House of Representatives passed the legislation to remove cannabis from “The controlled Substance Act of 1970”. This is anticipated to create enormous opportunities for market growth in the forthcoming years. The report projected that the U.S. cannabis market size was valued at USD 13.2 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 14.2% from 2023 to 2030. Active Companies from around the market with current developments this week include: Leafbuyer Technologies, Inc. (OTCQB: LBUY), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), HEXO Corp. (NASDAQ: HEXO) (TSX: HEXO), SNDL Inc. (NASDAQ: SNDL), Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY).
The Grand View Research report said: “Moreover, a positive attitude of consumers towards the consumption of cannabinoid-based products has led to the increased penetration… For instance, according to the Gallup Survey, 2022, approximately 64% of the U.S. adults were familiar with CBD and CBD products and as per the SingleCare Survey 2020, approximately one-third of Americans used CBD. Also, the increasing number of companies entering the local markets to cater to the growing demand for cannabis is one of the factors supporting the market growth. In addition, a dynamic startup scene in the U.S. boosts the growth of the market for cannabis. Other factors contributing to the growth include the favorable cultivation norms which help cater to the biomass demand in the U.S. Some major states such as Florida, Oregon, Nevada, California, Washington, and Colorado are the major producers of cannabis, owing to favorable climatic conditions and the legalization of medical marijuana. Furthermore, the increasing number of companies in cannabis businesses due to the ease with which wholesale procurement of cannabis can be carried out and product development can be achieved is driving the market growth in the U.S.”
Leafbuyer Technologies, Inc. (OTCQB: LBUY) BREAKING NEWS: Leafbuyer Technologies, Inc. Announces Results: 31% Increase in Quarterly Revenue and 35% Increase in Profit Margin – Leafbuyer Technologies Inc. (“Leafbuyer” or “the Company”) a leading cannabis technology and marketing platform, announced today that quarterly revenue rose 31% year over year in the quarter ending March 31st, 2023. The financial data reflects the GAAP revenue booked in the quarter versus the same quarter of the previous year.
- Revenue rose 31% from $984,010 to $1,286,132 in the third quarter of fiscal year 2023
- Revenue Increase was more than 9X Industry Growth Rate
- Expanding Profit Margins: Gross Margins increased 35% Year to Year
- Gross Profit increased 76% from $292,682 to $516,431 in the same period
- $250,000 reduction in debt and 12% reduction in total liabilities
Kurt Rossner, Chief Executive Officer of Leafbuyer stated, “We continue to drive growth in our core product line with quarterly revenue growth nearly nine times the overall cannabis market. We are also working hard to continue our margin expansion across all our product lines. The second half of this year is exciting as we begin to monetize our total network and continue to build out advanced features to our existing platform.”
The company also reported a reduction of 12% in its total liabilities and a nearly $250,000 paydown in its overall debt. Read this and more news for LBUY at: https://www.leafbuyer.com/investor
In the industry developments and happenings in the market this week include:
Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED) recently announced that it has entered into an exchange agreement (the “Exchange Agreement“) with Greenstar Canada Investment Limited Partnership (“GCILP“), a wholly-owned subsidiary of Constellation Brands, Inc. (“CBI“), in order to extinguish C$100 million (approximately USD$73.9 million) aggregate principal amount of the Company’s outstanding 4.25% unsecured notes due 2023 (the “Existing Notes“).
Pursuant to the Exchange Agreement, the Company agreed to acquire and cancel C$100 million aggregate principal amount of the Existing Notes held by GCILP in exchange for: (i) a cash payment to GCILP in the amount of unpaid and accrued interest owing under the Existing Notes held by GCILP; and (ii) a promissory note (the “Promissory Note“) issuable to GCILP in the aggregate principal amount of C$100 million payable on December 31, 2024 (collectively, the “CBI Transaction“). The Promissory Note will bear interest at a rate of 4.25% per year, payable on maturity of the Promissory Note. The CBI Transaction is expected to close on or about April 14, 2023, subject to customary closing conditions.
Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY), a leading global cannabis and consumer packaged goods company, recently premiered a new infused tea collection by cannabis wellness brand, Solei, marking the brand’s first cannabis infused drink line.
Solei’s new tea collection is a wellness-based product line of caffeine-free teas produced with natural ingredients including cane sugar, premium whole-leaf herbal tea, and tasteful aromatic blends of Peach Ginger, Lavender Chamomile, and Mint, featuring an infusion of unique CBD, CBN, and THC formulations to optimize personal self-care routines. Each premium tea blend is micro-dosed for ease of consumption and is ready to steep however desired – hot or cold, sweetened, or unsweetened, and even as a base to tea inspired mocktails.
HEXO Corp. (NASDAQ: HEXO) (TSX: HEXO) recently announced that in connection with its previously announced arrangement agreement with Tilray Brands, Inc. (“Tilray“) for a transaction whereby Tilray has agreed to acquire all of the issued and outstanding common shares of the Company by way of court-approved plan of arrangement (the “Arrangement“), HEXO has obtained an interim order from the Ontario Superior Court of Justice (Commercial List) providing for, among other things, the holding of a special meeting (the “Special Meeting“) of the holders of common shares of HEXO (the “Shareholders“) to approve the Arrangement under the Business Corporations Act (Ontario). The Special Meeting is scheduled to be held on June 14, 2023 at 10 a.m. (Eastern Time) and the record date for determining Shareholders entitled to receive notice of and vote at the Special Meeting has been fixed as the close of business on May 5, 2023.
The Company expects that the management information circular and related materials in respect of the Special Meeting will be mailed to Shareholders and will be filed and available under HEXO’s profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) in the coming days. The management information circular and related materials will provide details of the Special Meeting and how Shareholders or their duly appointed proxyholders can attend, access and participate in the Special Meeting.
SNDL Inc. (NASDAQ: SNDL) recently reported its financial and operational results for the first quarter ended March 31, 2023. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated. The results for the first quarter of 2023 include the operating results of The Valens Company Inc. (“Valens“) subsequent to the acquisition on January 17, 2023, and the results for the first quarter of 2022 include one day of Alcanna Inc. (“Alcanna“) operations subsequent to the acquisition closing on March 31, 2022. SNDL has also posted a supplemental investor presentation on its website, which can be found at https://sndl.com.
“We are pleased to report progress towards key milestones in all of our operative segments against the backdrop of expected seasonally moderate sales in our retail networks,” said Zach George, Chief Executive Officer of SNDL. “The integration of Valens is proceeding with pace, and we are actively identifying new revenue streams and cost reduction opportunities. The first quarter was impacted by a number of one-time items including $13.5 million to replenish liquor inventory following the seasonal holiday draw in the fourth quarter of 2022, $2.7 million in severance and restructuring costs, and $17.5 million to stabilize Valens and bring overdue accounts payable up to date. We expect additional restructuring charges to impact the second quarter and the results of our team’s hard work to become clear in late 2023. We are focused on improving all aspects of our business with the objective of generating strong free cash flow. The relocation of all cannabis processing activities to our Kelowna complex will drive improved capacity utilization, and we are aggressively reducing our exposure to higher-cost cultivation as we seek low-cost producer status in all relevant product categories. In our retail segments, we are carving a path to higher margins and are excited about the recent launch of our data service programs and the potential for improved consumer engagement through new e-commerce and loyalty capabilities. We look forward to updating investors on our intended dividend of Nova shares, and events related to our SunStream portfolio in the coming weeks. 2023 is shaping up to be another transformational year for our company.”
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