-

It’s time for your Daily Hit of cannabis financial news for June 15, 2021.

On the Site

Fire & Flower

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced its financial and operational results for the fiscal first quarter ending May 1, 2021 with revenue rising 90.7% to $44.1 million. However, Fire & Flower also delivered a net loss of $61.6 million versus last year’s $12.7 million for the same time period. The company blamed the net losses on a $54.1 million loss on the revaluation of derivative liabilities in the current quarter. The company said it was the fourth consecutive quarter of positive Adjusted EBITDA of $2.3 million as compared to an Adjusted EBITDA loss of $1.4 million for the first quarter of 2020. In addition, the company reported a gross profit percentage of 37.5% compared to 32.6% for the same period in 2020.

KushCo

KushCo Holdings, Inc. (OTCQX: KSHB) reported preliminary and unaudited financial results for its fiscal third quarter ended May 31, 2021. KushCo said it expects its preliminary and unaudited fiscal third quarter 2021 revenue to be between approximately $27.5 million and $28.0 million, compared to approximately $22.3 million for its fiscal third-quarter 2020. This is a decline from the $32.9 million in revenue in the second quarter. The 21% to 26% expected increase in revenue is being driven primarily by an increase in sales to KushCo’s top 25 customers, which consist of leading multi-state operators (MSOs), licensed producers (LPs), and brands. Revenue from these top 25 customers is expected to increase 60%+ to at least $20.5 million in revenue in fiscal third-quarter 2021 from $12.7 million in the same year-ago period. KushCo said it expects to report its complete fiscal third-quarter 2021 financial results in early July 2021.

In Other News

Col-Care

Columbia Care (OTC: CCHWF) has entered into a definitive agreement to acquire Medicine Man Denver, a premier vertically integrated cannabis company, in a deal valued at $42M.The upfront consideration of $42M, comprises of $8.4M in cash and $33.6M in stock, representing a multiple of about 4.5x projected 2021 EBITDA.The transaction terms also include a potential additional milestone payment in 2022 if certain performance targets are met, Columbia Care said.The acquisition of Medicine Man further solidifies Columbia Care’s position as the most scaled retailer, cultivator, and manufacturer in Colorado, the company said.The deal will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care’s national footprint.The transaction is expected to close in Q4 2021.

Charlotte’s Web

Charlotte’s Web (OTC: CWBHF) has appointed Wessel Booysen as Chief Financial Officer, to succeed CFO Russ Hammer, who will retire in August at his two-year anniversary with Charlotte’s Web.Mr. Hammer will assist Mr. Booysen in a planned two-month transition, serving as Senior Executive Advisor to the CFO during the transition period.Mr. Booysen is a top-tier executive with more than a decade of global executive leadership in finance, international expansion and strategic M&A at Molson Coors Beverage Company. Most recently served as Chief Executive Officer and Managing Director at Molson Coors Beverage in Melbourne, Australia.

Field Trip

Field Trip Health Ltd. (TSX: FTRP; FTRP.WT; OTCQX: FTRPF) announced that it has completed initial drug metabolism and pharmacokinetic (“DMPK”) studies for FT-104, its novel psychedelic compound in development. In-vitro preclinical studies confirmed that metabolism of FT-104 is rapid and complete in several animal species, converting FT-104 into the active form of the drug with relatively few metabolites, validating FT-104’s action as a prodrug for the underlying molecule (the “active”) from which FT-104 was derived. The active is a known psychedelic molecule which has yet to be disclosed.

The Daily Hit: June 15, 2021 on Green Market Report.