Cannabis
Tilray Brands Reports Third Quarter Fiscal Year 2023 Financial Results and Announces Accretive Acquisition of 100% of HEXO Corp.
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Delivered $145.6 Million in Net Revenue and 16th Consecutive Quarter of Positive Adjusted EBITDA
Maintained #1 Cannabis Market Share Position in Canada, the Largest Federally Legal Cannabis Market in the World; With HEXO Transaction, Poised to Substantially Increase Canadian Revenue
Medical Cannabis Leader in Europe
Achieved Key Efficiency Milestones on Accelerated Path to Positive Cash Flow, Company Reiterates Cash Flow Guidance
LEAMINGTON, Ontario and NEW YORK, April 10, 2023 (GLOBE NEWSWIRE) — Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, today reported financial results for the third fiscal quarter ended February 28, 2023. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Tilray also announces today that it entered into a definitive agreement to acquire HEXO Corp. (NASDAQ: HEXO; TSX: HEXO) for an aggregate purchase price of approximately US$56 million, to be satisfied through the issuance of 0.4352 of Tilray Common Stock for each outstanding HEXO share. The acquisition, which is structured as an arrangement under applicable Canadian laws (the “Arrangement”), builds on the successful strategic alliance between the two companies and positions Tilray for continued strong growth and market leadership in Canada, the largest federally legal cannabis market in the world.
The completion of the Arrangement is subject to customary and negotiated closing conditions, including HEXO shareholder approval and court approval, and is expected to close in June 2023. Further information about the HEXO transaction is included in an investor presentation available on the investor section of Tilray.com and in our Current Report on Form 8-K filed today.
Financial Highlights
- Net revenue increased to $145.6 million compared to $144.1 million in the prior quarter. On a constant currency basis, net revenue was $154.2 million in the third quarter of 2023, up 2% from the prior year quarter.
- Distribution revenue increased 5% to $65.4 million, from the prior year quarter. On a constant currency basis, distribution revenue increased 12% to $70.1 million.
- Gross Profit (Loss) was ($11.7) million, while adjusted gross profit was $44.3 million. Gross margin was negative 8%, while adjusted gross margin rose to 30% from 26% in the year-ago quarter.
- Adjusted cannabis gross profit increased to $22.2 million from $18.0 million in the prior year quarter, while adjusted gross margin percentage increased to 47% from 33%.
- Achieved $22 million in annualized run-rate savings (and $12 million in actual cost savings) as part of $30 million cost optimization plan announced in Q4 of 2022; total annualized cash cost-savings since the closing of the Tilray-Aphria transaction reached $122 million.
- Adjusted EBITDA of $14.0 million, marking 16th consecutive quarter of positive adjusted EBITDA. Currently expecting Adjusted EBITDA in the range of $60 to $66 million, a greater than 30% increase from the prior year.
- Strong financial position with $408.3 million in cash and marketable securities.
- Reiterated expectation to deliver positive free cash flow from operating segments in fiscal 2023.
- Recorded non-cash $1.1 billion net asset reduction resulting from higher interest rates and a decline in market capitalization. This non-cash net asset reduction has no impact on the Company’s compliance with debt covenants, its cash flows or available liquidity.
Irwin D. Simon, Tilray Brands’ Chairman and Chief Executive Officer, stated, “During the quarter, we continued to focus on our highest priorities: sustaining and growing the top-line across core markets and geographies while optimizing the platform to achieve positive free cash flow on an accelerated timeline. We are executing on both fronts and delivered revenue growth despite challenging market dynamics across Canada, Europe, and the U.S, as well as our 16th consecutive quarter of positive adjusted EBITDA.”
Mr. Simon continued, “Looking ahead, we are focused on being the leading, most diversified cannabis lifestyle and CPG company in the world. Our strategy to deliver on this vision is centered on pursuing targeted growth opportunities, as reflected in our opportunistic acquisitions of both Montauk Brewing Company and HEXO, which has made significant strides in driving operating efficiency and improving profitability while continuing to invest in industry-leading brands. We are incredibly excited about our combined prospects moving forward with HEXO and expect a seamless integration of HEXO’s business into our efficient, built-to-last platform. At the same time, we will continue our relentless focus on cost and operational efficiencies and strengthening our industry-leading balance sheet to deliver sustained, profitable growth and shareholder value.”
Mark Attanasio, Chairman of HEXO, said, “Over the past year, HEXO established and has been executing on a rigorous cost-cutting and balance sheet optimization plan. As we began working with Tilray last year, the value that could be achieved through the combination of our businesses in order to compete and drive profitable growth in the highly fragmented Canadian market was immediately clear. With the recent headwinds in the cannabis industry, our Board determined that HEXO shareholders would benefit from being part of Tilray’s diversified business and from the strong plan in place they have to reinforce their industry leadership, continue to strengthen the top and bottom lines, and to drive value creation. With Irwin and his leadership team, we are confident that our brands will continue to grow and thrive as part of Tilray Brands.”
Operating Highlights
Leadership in Global Cannabis Operations, Brands, and Market Share:
- In Canada, despite ongoing challenging cannabis market conditions, quarter over quarter, Tilray maintained its #1 cannabis market share position. With the addition of HEXO’s leading high-growth brands, the Company expects to significantly bolster its position supported by low-cost operations and complimentary distribution across all Canadian geographies. The combined company is expected to strengthen Tilray’s existing Canadian position with 12.9% pro-forma market share and #1 market position across all major markets and a leading share across most product categories. This includes anticipated pro-forma net sales of approximately US$215M and the leading low-cost operations with distribution across all Canadian geographies.
- Capitalizing on the unrivaled platform provided by its cultivation and distribution operations across Portugal and Germany and the leadership team’s depth of commercial and regulatory expertise, Tilray is focused on growing its leading market share in medical cannabis in the countries in which it distributes today and achieving early-mover advantage in new countries as cannabis legalization continues to proliferate across Europe.
Maximizing the High-Growth Potential of U.S. CPG and Craft-Beverage Portfolio:
- In the third quarter, Tilray made substantial strides across its five craft-beverage brands including leaders SweetWater Brewing Company, Breckenridge Distillery, and Montauk Brewing Company, and its wellness brand Manitoba Harvest. By expanding recognition and distribution, Tilray will be well positioned to immediately leverage these brands to drive significant additional revenue in adult-use cannabis, pending federal legalization.
Strategic Growth Actions
- April 2023 – Tilray Medical Expands Footprint in Europe and Broadens Distribution Across the Czech Republic
- April 2023 – SweetWater Brewing Company Expands Across 44 States with Nevada Launch
- April 2023 – Manitoba Harvest Expands Whole Foods Market Distribution
- April 2023 – Breckenridge Distillery Wins Big at Whisky Magazine’s 2023 World Whiskies Awards
- March 2023 – Alpine Beer Opens Taproom at Petco Park Stadium in San Diego
- March 2023 – Breckenridge Distillery Establishes March 31st as National Après Day
- March 2023 – Montauk Brewing Expands Distribution Across the Northeast
- March 2023 – Tilray Brands Stockholders Approve Charter Amendment to Enhance Corporate Governance and Support Strategic Growth Plan
- March 2023 – SweetWater Brewing Company Brings Back Popular Triple Tail Tropical India Pale Ale
- March 2023 – SweetWater Brewing Company Introduces New West Coast Style India Pale Ale
- March 2023 – Potently Canadian Cannabis Brand, CANACA, Introduces New Collection of Terpene Rich Products Across Canada
- February 2023 – Good Supply Cannabis Brand Launches Canada’s Strongest Infused Pre-Rolls
- February 2023 – Breckenridge Distillery Strikes Gold at 2023 World Whiskies Awards
- February 2023 – Good Supply Cannabis Brand Launches New Product Lineup
- February 2023 – SweetWater Announces 420 Fest 2023 Lineup and Venue
- February 2023 – Breckenridge Distillery Launches Limited-Edition Sexy Motor Oil Whiskey for Valentine’s Day
- February 2023 – SweetWater Brewing Company Introduces New Crisp Lager to Year-Round Lineup
- January 2023 – Alpine Beer Launches INFINITE HAZE Hazy IPA
- January 2023 – Solei Cannabis Brand Introduces New Approach to Wellness with New Product Lineup and Brand Refresh
- January 2023 – SweetWater Brewing Company Celebrates 26 Years of Brewing with Throwback Beers, Jam Bands
Live Conference Call and Audio Webcast
Tilray Brands will host a webcast to discuss these results today at 5:00 p.m. ET. Investors may join the live webcast available on the Investors section of the Company’s website at www.tilray.com. The webcast will also be archived after the call concludes.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people’s lives for the better – one person at a time. Tilray Brands delivers on this mission by inspiring and empowering the worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Patients and consumers trust Tilray Brands to be the most responsible, trusted and market leading cannabis consumer products company in the world with a portfolio of innovative, high-quality and beloved brands that address the needs of the consumers, customers and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray Brands’ unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to become the world’s leading cannabis-focused consumer branded company; the Company’s ability to generate its targeted amount of Adjusted EBITDA for the fiscal year ending May 31, 2023; the Company’s expectation to be free-cash flow positive in its operating business units; the Company’s ability to achieve long term profitability; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company’s ability to successfully complete the acquisition of HEXO; the Company’s ability to successfully achieve revenue growth, production and supply chain efficiencies, synergies and cost savings, including with respect to the HEXO acquisition; expansion of medical and recreational sales legalization across the global cannabis industry, including in Europe; and the Company’s anticipated investments and acquisitions, including in organic and strategic growth, partnership efforts, product offerings and other initiatives.
Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Use of Non-U.S. GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including adjusted gross margin, Adjusted gross profit, Adjusted EBITDA, Adjusted net income and free cash flow. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company’s operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company’s Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company’s GAAP financial results.
The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company’s consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.
Adjusted EBITDA is calculated as net income (loss) before income tax expense (recovery); interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; impairments; purchase price accounting step-up; facility start-up and closure costs; lease expense; litigation (recovery) costs; restructuring costs; and transaction (income) costs. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted gross profit, is calculated as gross profit adjusted to exclude the impact of inventory valuation adjustment and purchase price accounting valuation step-up. A reconciliation of Adjusted gross profit, excluding inventory valuation adjustments and purchase price accounting valuation step-up, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted gross margin, excluding inventory valuation adjustments and purchase price accounting valuation step-up, is calculated as revenue less cost of sales adjusted to add back inventory valuation adjustments and amortization of inventory step-up, divided by revenue. A reconciliation of Adjusted gross margin, excluding inventory valuation adjustments and purchase price accounting valuation step-up, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted net income is calculated as net (loss) income plus (minus) non-operating income (expense), net, change in fair value of contingent consideration, impairments; inventory write down, litigation (recovery) costs, restructuring costs, and transaction (income) costs. A reconciliation of Adjusted net income, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Free cash flow is comprised of two GAAP measures deducted from each other which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
For further information:
Media: Berrin Noorata, news@tilray.com
Investors: Raphael Gross, +1-203-682-8253, Raphael.Gross@icrinc.com
Consolidated Statements of Financial Position | ||||||||
February 28, | May 31, | |||||||
(in thousands of US dollars) | 2023 | 2022 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 164,997 | $ | 415,909 | ||||
Marketable Securities | 243,286 | – | ||||||
Accounts receivable, net | 78,342 | 95,279 | ||||||
Inventory | 202,800 | 245,529 | ||||||
Prepaids and other current assets | 69,087 | 46,786 | ||||||
Total current assets | 758,512 | 803,503 | ||||||
Capital assets | 425,263 | 587,499 | ||||||
Right-of-use assets | 6,492 | 12,996 | ||||||
Intangible assets | 994,325 | 1,277,875 | ||||||
Goodwill | 2,005,701 | 2,641,305 | ||||||
Interest in equity investees | 4,638 | 4,952 | ||||||
Long-term investments | 7,620 | 10,050 | ||||||
Convertible notes receivable | 168,356 | 111,200 | ||||||
Other assets | 4,993 | 314 | ||||||
Total assets | $ | 4,375,900 | $ | 5,449,694 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Bank indebtedness | $ | 18,125 | $ | 18,123 | ||||
Accounts payable and accrued liabilities | 163,422 | 157,431 | ||||||
Contingent consideration | 16,219 | 16,007 | ||||||
Warrant liability | 7,414 | 14,255 | ||||||
Current portion of lease liabilities | 2,528 | 6,703 | ||||||
Current portion of long-term debt | 77,892 | 67,823 | ||||||
Current portion of convertible debentures payable | 184,082 | – | ||||||
Total current liabilities | 469,682 | 280,342 | ||||||
Long – term liabilities | ||||||||
Lease liabilities | 8,598 | 11,329 | ||||||
Long-term debt | 89,419 | 117,879 | ||||||
Convertible debentures payable | 223,087 | 401,949 | ||||||
Deferred tax liabilities | 164,412 | 196,638 | ||||||
Other liabilities | 3,335 | 191 | ||||||
Total liabilities | 969,129 | 1,008,328 | ||||||
Commitments and contingencies (refer to Note 17) | ||||||||
Stockholders’ equity | ||||||||
Common stock ($0.0001 par value; 980,000,000 shares authorized; 617,857,031 and 532,674,887 shares issued and outstanding, respectively) | 62 | 53 | ||||||
Series A Preferred Stock ($0.0001 par value; 10,000,000 shares authorized; 120,000 and nil shares issued and outstanding, respectively) | – | – | ||||||
Additional paid-in capital | 5,723,342 | 5,382,367 | ||||||
Accumulated other comprehensive loss | (42,948 | ) | (20,764 | ) | ||||
Accumulated Deficit | (2,276,794 | ) | (962,851 | ) | ||||
Total Tilray Brands, Inc. stockholders’ equity | 3,403,662 | 4,398,805 | ||||||
Non-controlling interests | 3,109 | 42,561 | ||||||
Total stockholders’ equity | 3,406,771 | 4,441,366 | ||||||
Total liabilities and stockholders’ equity | $ | 4,375,900 | $ | 5,449,694 | ||||
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||
For the three months | For the nine months | ||||||||||||||||||||||||||||||
ended February 28, | Change | % Change | ended February 28, | Change | % Change | ||||||||||||||||||||||||||
(in thousands of U.S. dollars, except for per share data) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||||||||||
Net revenue | $ | 145,589 | $ | 151,871 | $ | (6,282 | ) | (4 | )% | $ | 442,936 | $ | 475,047 | $ | (32,111 | ) | (7 | )% | |||||||||||||
Cost of goods sold | 157,288 | 112,042 | 45,246 | 40 | % | 363,139 | 351,497 | 11,642 | 3 | % | |||||||||||||||||||||
Gross profit (loss) | (11,699 | ) | 39,829 | (51,528 | ) | (129 | )% | 79,797 | 123,550 | (43,753 | ) | (35 | )% | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
General and administrative | 38,999 | 38,445 | 554 | 1 | % | 117,385 | 121,401 | (4,016 | ) | (3 | )% | ||||||||||||||||||||
Selling | 6,452 | 8,641 | (2,189 | ) | (25 | )% | 25,792 | 25,283 | 509 | 2 | % | ||||||||||||||||||||
Amortization | 23,518 | 24,590 | (1,072 | ) | (4 | )% | 71,872 | 84,345 | (12,473 | ) | (15 | )% | |||||||||||||||||||
Marketing and promotion | 7,354 | 7,578 | (224 | ) | (3 | )% | 23,137 | 20,163 | 2,974 | 15 | % | ||||||||||||||||||||
Research and development | 171 | 164 | 7 | 4 | % | 502 | 1,464 | (962 | ) | (66 | )% | ||||||||||||||||||||
Change in fair value of contingent consideration | 352 | (30,747 | ) | 31,099 | (101 | )% | 563 | (29,065 | ) | 29,628 | (102 | )% | |||||||||||||||||||
Impairments | 1,115,376 | — | 1,115,376 | NM | 1,115,376 | — | 1,115,376 | NM | |||||||||||||||||||||||
Litigation (recovery) costs | (5,230 | ) | 4,215 | (9,445 | ) | (224 | )% | (1,970 | ) | 6,489 | (8,459 | ) | (130 | )% | |||||||||||||||||
Restructuring costs | 2,663 | — | 2,663 | 0 | % | 10,727 | 795 | 9,932 | 1249 | % | |||||||||||||||||||||
Transaction (income) costs | 5,382 | 5,023 | 359 | 7 | % | (3,882 | ) | 35,653 | (39,535 | ) | (111 | )% | |||||||||||||||||||
Total operating expenses | 1,195,037 | 57,909 | 1,137,128 | 1964 | % | 1,359,502 | 266,528 | 1,092,974 | 410 | % | |||||||||||||||||||||
Operating loss | (1,206,736 | ) | (18,080 | ) | (1,188,656 | ) | 6574 | % | (1,279,705 | ) | (142,978 | ) | (1,136,727 | ) | 795 | % | |||||||||||||||
Interest expense, net | (1,040 | ) | (2,312 | ) | 1,272 | (55 | )% | (8,560 | ) | (22,422 | ) | 13,862 | (62 | )% | |||||||||||||||||
Non-operating income (expense), net | 1,213 | 71,037 | (69,824 | ) | (98 | )% | (50,229 | ) | 186,329 | (236,558 | ) | (127 | )% | ||||||||||||||||||
(Loss) income before income taxes | (1,206,563 | ) | 50,645 | (1,257,208 | ) | (2,482 | )% | (1,338,494 | ) | 20,929 | (1,359,423 | ) | (6,495 | )% | |||||||||||||||||
Income taxes (benefit) expense | (10,811 | ) | (1,830 | ) | (8,981 | ) | 491 | % | (15,313 | ) | (2,739 | ) | (12,574 | ) | 459 | % | |||||||||||||||
Net (loss) income | $ | (1,195,752 | ) | $ | 52,475 | $ | (1,248,227 | ) | (2,379 | )% | (1,323,181 | ) | 23,668 | (1,346,849 | ) | (5,691 | )% | ||||||||||||||
Net loss per share – basic and diluted | $ | (1.90 | ) | $ | 0.09 | $ | (1.99 | ) | (2,214 | )% | $ | (2.20 | ) | $ | 0.00 | $ | (2.20 | ) | (77,239 | )% | |||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
For the nine months | ||||||||||||||||
ended February 28, | Change | % Change | ||||||||||||||
(in thousands of US dollars) | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||
Cash used in operating activities: | ||||||||||||||||
Net (loss) income | $ | (1,323,181 | ) | $ | 23,668 | $ | (1,346,849 | ) | (5691 | )% | ||||||
Adjustments for: | ||||||||||||||||
Deferred income tax recovery | (29,537 | ) | (17,296 | ) | (12,241 | ) | 71 | % | ||||||||
Unrealized foreign exchange loss | 13,711 | 1,699 | 12,012 | 707 | % | |||||||||||
Amortization | 101,156 | 113,824 | (12,668 | ) | (11 | )% | ||||||||||
Loss (gain) on sale of capital assets | (2 | ) | (631 | ) | 629 | (100 | )% | |||||||||
Inventory valuation write down | 55,000 | 12,000 | 43,000 | 358 | % | |||||||||||
Impairments | 1,115,376 | – | 1,115,376 | 0 | % | |||||||||||
Other non-cash items | 12,933 | 962 | 11,971 | 1244 | % | |||||||||||
Stock-based compensation | 29,766 | 27,025 | 2,741 | 10 | % | |||||||||||
Loss (gain) on long-term investments & equity investments | 2,843 | (2,401 | ) | 5,244 | (218 | )% | ||||||||||
Loss (gain) on derivative instruments | 13,534 | (210,653 | ) | 224,187 | (106 | )% | ||||||||||
Change in fair value of contingent consideration | 563 | (29,065 | ) | 29,628 | (102 | )% | ||||||||||
Change in non-cash working capital: | ||||||||||||||||
Accounts receivable | 18,053 | (458 | ) | 18,511 | (4042 | )% | ||||||||||
Prepaids and other current assets | (32,680 | ) | (953 | ) | (31,727 | ) | 3329 | % | ||||||||
Inventory | (11,808 | ) | (16,512 | ) | 4,704 | (28 | )% | |||||||||
Accounts payable and accrued liabilities | (1,419 | ) | (57,947 | ) | 56,528 | (98 | )% | |||||||||
Net cash used in operating activities | (35,692 | ) | (156,738 | ) | 121,046 | (77 | )% | |||||||||
Cash used in investing activities: | ||||||||||||||||
Investment in capital and intangible assets | (8,394 | ) | (28,470 | ) | 20,076 | (71 | )% | |||||||||
Proceeds from disposal of capital and intangible assets | 2,175 | 11,526 | (9,351 | ) | (81 | )% | ||||||||||
Purchase of marketable securities, net | (243,186 | ) | – | (243,186 | ) | 0 | % | |||||||||
Net cash paid for business acquisition | (28,122 | ) | 326 | (28,448 | ) | (8726 | )% | |||||||||
Net cash used in investing activities | (277,527 | ) | (16,618 | ) | (260,909 | ) | 1570 | % | ||||||||
Cash provided by (used in) financing activities: | ||||||||||||||||
Share capital issued, net of cash issuance costs | 129,593 | — | 129,593 | 0 | % | |||||||||||
Shares effectively repurchased for employee withholding tax | (1,189 | ) | (3,149 | ) | 1,960 | (62 | )% | |||||||||
Proceeds from long-term debt | 1,288 | — | 1,288 | 0 | % | |||||||||||
Repayment of long-term debt and convertible debt | (64,658 | ) | (34,570 | ) | (30,088 | ) | 87 | % | ||||||||
Repayment of lease liabilities | (1,114 | ) | (4,672 | ) | 3,558 | (76 | )% | |||||||||
Net increase in bank indebtedness | 2 | 8,779 | (8,777 | ) | (100 | )% | ||||||||||
Net cash provided by (used in) financing activities | 63,922 | (33,612 | ) | 97,534 | (290 | )% | ||||||||||
Effect of foreign exchange on cash and cash equivalents | (1,615 | ) | (2,284 | ) | 669 | (29 | )% | |||||||||
Net decrease in cash and cash equivalents | (250,912 | ) | (209,252 | ) | (41,660 | ) | 20 | % | ||||||||
Cash and cash equivalents, beginning of period | 415,909 | 488,466 | (72,557 | ) | (15 | )% | ||||||||||
Cash and cash equivalents, end of period | $ | 164,997 | $ | 279,214 | $ | (114,217 | ) | (41 | )% | |||||||
Other Financial Information: Key Operating Metrics | ||||||||||||||||
For the three months | For the nine months | |||||||||||||||
ended February 28, | ended February 28, | |||||||||||||||
(in thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net cannabis revenue | $ | 47,549 | $ | 55,045 | $ | 156,017 | $ | 184,269 | ||||||||
Distribution revenue | 65,385 | 62,532 | 186,158 | 198,587 | ||||||||||||
Net beverage alcohol revenue | 20,640 | 19,597 | 62,689 | 48,765 | ||||||||||||
Wellness revenue | 12,015 | 14,697 | 38,072 | 43,426 | ||||||||||||
Cannabis costs | 77,604 | 37,042 | 137,800 | 122,492 | ||||||||||||
Beverage alcohol costs | 10,663 | 8,091 | 32,932 | 20,674 | ||||||||||||
Distribution costs | 57,964 | 57,566 | 165,443 | 178,093 | ||||||||||||
Wellness costs | 8,299 | 9,343 | 26,964 | 30,238 | ||||||||||||
Adjusted gross profit (excluding PPA step-up and inventory valuation adjustments) (1) | 44,310 | 39,829 | 138,020 | 135,550 | ||||||||||||
Cannabis adjusted gross margin (excluding inventory valuation adjustments) (1) | 47 | % | 33 | % | 47 | % | 40 | % | ||||||||
Beverage alcohol adjusted gross margin (excluding PPA step-up) (1) | 53 | % | 59 | % | 53 | % | 58 | % | ||||||||
Distribution gross margin | 11 | % | 8 | % | 11 | % | 10 | % | ||||||||
Wellness gross margin | 31 | % | 36 | % | 29 | % | 30 | % | ||||||||
Adjusted EBITDA (1) | 14,015 | 10,086 | 39,254 | 36,543 | ||||||||||||
Cash and cash equivalents and marketable securities | 408,283 | 279,214 | 408,283 | 279,214 | ||||||||||||
Working capital | 288,830 | 413,358 | 288,830 | 413,358 | ||||||||||||
Net Revenue by Operating Segment | ||||||||||||||||||||||||||||
For the three months | % of Total Revenue | For the three months | % of Total Revenue | For the nine months | % of Total Revenue | For the nine months | % of Total Revenue | |||||||||||||||||||||
(In thousands of U.S. dollars) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | ||||||||||||||||||||||||
Cannabis business | $ | 47,549 | 33% | $ | 55,045 | 36% | $ | 156,017 | 35% | $ | 184,269 | 39% | ||||||||||||||||
Distribution business | 65,385 | 45% | 62,532 | 41% | 186,158 | 42% | 198,587 | 42% | ||||||||||||||||||||
Beverage alcohol business | 20,640 | 14% | 19,597 | 13% | 62,689 | 14% | 48,765 | 10% | ||||||||||||||||||||
Wellness business | 12,015 | 8% | 14,697 | 10% | 38,072 | 9% | 43,426 | 9% | ||||||||||||||||||||
Total net revenue | $ | 145,589 | 100% | $ | 151,871 | 100% | $ | 442,936 | 100% | $ | 475,047 | 100% | ||||||||||||||||
Net Revenue by Operating Segment in Constant Currency | ||||||||||||||||||||||||||||
For the three months | For the three months | For the nine months | For the nine months | |||||||||||||||||||||||||
February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | ||||||||||||||||||||
Cannabis business | $ | 51,007 | 33% | $ | 55,045 | 36% | $ | 164,746 | 34% | $ | 184,269 | 39% | ||||||||||||||||
Distribution business | 70,144 | 45% | 62,532 | 41% | 211,676 | 44% | 198,587 | 42% | ||||||||||||||||||||
Beverage alcohol business | 20,640 | 14% | 19,597 | 13% | 62,689 | 13% | 48,765 | 10% | ||||||||||||||||||||
Wellness business | 12,385 | 8% | 14,697 | 10% | 39,144 | 8% | 43,426 | 9% | ||||||||||||||||||||
Total net revenue | $ | 154,176 | 100% | $ | 151,871 | 100% | $ | 478,255 | 99% | $ | 475,047 | 100% | ||||||||||||||||
Net Cannabis Revenue by Market Channel | ||||||||||||||||||||||||||||
For the three months | % of Total Revenue | For the three months | % of Total Revenue | For the nine months | % of Total Revenue | For the nine months | % of Total Revenue | |||||||||||||||||||||
(In thousands of U.S. dollars) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | ||||||||||||||||||||||||
Revenue from Canadian medical cannabis products | $ | 6,035 | 13% | $ | 7,050 | 13% | $ | 18,920 | 12% | $ | 23,353 | 13% | ||||||||||||||||
Revenue from Canadian adult-use cannabis products | 45,318 | 96% | 43,504 | 79% | 156,063 | 100% | 162,632 | 87% | ||||||||||||||||||||
Revenue from wholesale cannabis products | 58 | 0% | 2,804 | 5% | 686 | 0% | 6,763 | 4% | ||||||||||||||||||||
Revenue from international cannabis products | 9,707 | 20% | 15,820 | 29% | 27,834 | 18% | 39,792 | 22% | ||||||||||||||||||||
Less excise taxes | (13,569 | ) | -29% | (14,133 | ) | -26% | (47,486 | ) | -30% | (48,271 | ) | -26% | ||||||||||||||||
Total | $ | 47,549 | 100% | $ | 55,045 | 100% | $ | 156,017 | 100% | $ | 184,269 | 100% | ||||||||||||||||
Net Cannabis Revenue by Market Channel in Constant Currency | ||||||||||||||||||||||||||||
For the three months | For the three months | For the nine months | For the nine months | |||||||||||||||||||||||||
February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | ||||||||||||||||||||
Revenue from Canadian medical cannabis products | $ | 6,442 | 13% | $ | 7,050 | 13% | $ | 20,093 | 12% | $ | 23,353 | 13% | ||||||||||||||||
Revenue from Canadian adult-use cannabis products | 48,721 | 96% | 43,504 | 79% | 162,777 | 99% | 162,632 | 87% | ||||||||||||||||||||
Revenue from wholesale cannabis products | 62 | 0% | 2,804 | 5% | 726 | 0% | 6,763 | 4% | ||||||||||||||||||||
Revenue from international cannabis products | 10,269 | 20% | 15,820 | 29% | 31,627 | 19% | 39,792 | 22% | ||||||||||||||||||||
Less excise taxes | (14,487 | ) | -28% | (14,133 | ) | -26% | (50,477 | ) | -31% | (48,271 | ) | -26% | ||||||||||||||||
Total | $ | 51,007 | 100% | $ | 55,045 | 100% | $ | 164,746 | 100% | $ | 184,269 | 100% | ||||||||||||||||
Other Financial Information: Gross Margin and Adjusted Gross Margin | ||||||||||||||||||||
For the three months ended February 28, 2023 | ||||||||||||||||||||
(In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
Net revenue | $ | 47,549 | $ | 20,640 | $ | 65,385 | $ | 12,015 | $ | 145,589 | ||||||||||
Cost of goods sold | 80,362 | 10,663 | 57,964 | 8,299 | 157,288 | |||||||||||||||
Gross profit | (32,813 | ) | 9,977 | 7,421 | 3,716 | (11,699 | ) | |||||||||||||
Gross margin | -69% | 48% | 11% | 31% | -8% | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Inventory valuation adjustments | 55,000 | – | – | – | 55,000 | |||||||||||||||
Purchase price accounting step-up | – | 1,009 | – | – | 1,009 | |||||||||||||||
Adjusted gross profit | 22,187 | 10,986 | 7,421 | 3,716 | 44,310 | |||||||||||||||
Adjusted gross margin | 47% | 53% | 11% | 31% | 30% | |||||||||||||||
For the three months ended February 28, 2022 | ||||||||||||||||||||
(In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
Net revenue | $ | 55,045 | $ | 19,597 | $ | 62,532 | $ | 14,697 | $ | 151,871 | ||||||||||
Cost of goods sold | 37,042 | 8,091 | 57,566 | 9,343 | 112,042 | |||||||||||||||
Gross profit | 18,003 | 11,506 | 4,966 | 5,354 | 39,829 | |||||||||||||||
Gross margin | 33% | 59% | 8% | 36% | 26% | |||||||||||||||
For the nine months ended February 28, 2023 | ||||||||||||||||||||
(In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
Net revenue | $ | 156,017 | $ | 62,689 | $ | 186,158 | $ | 38,072 | $ | 442,936 | ||||||||||
Cost of goods sold | 137,800 | 32,932 | 165,443 | 26,964 | 363,139 | |||||||||||||||
Gross profit | 18,217 | 29,757 | 20,715 | 11,108 | 79,797 | |||||||||||||||
Gross margin | 12% | 47% | 11% | 29% | 18% | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Inventory valuation adjustments | 55,000 | – | – | – | 55,000 | |||||||||||||||
Purchase price accounting step-up | – | 3,223 | – | – | 3,223 | |||||||||||||||
Adjusted gross profit | 73,217 | 32,980 | 20,715 | 11,108 | 138,020 | |||||||||||||||
Adjusted gross margin | 47% | 53% | 11% | 29% | 31% | |||||||||||||||
For the nine months ended February 28, 2022 | ||||||||||||||||||||
(In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
Net revenue | $ | 184,269 | $ | 48,765 | $ | 198,587 | $ | 43,426 | $ | 475,047 | ||||||||||
Cost of goods sold | 122,492 | 20,674 | 178,093 | 30,238 | 351,497 | |||||||||||||||
Gross profit | 61,777 | 28,091 | 20,494 | 13,188 | 123,550 | |||||||||||||||
Gross margin | 34% | 58% | 10% | 30% | 26% | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Inventory valuation adjustments | 12,000 | – | – | – | 12,000 | |||||||||||||||
Adjusted gross profit | 73,777 | 28,091 | 20,494 | 13,188 | 135,550 | |||||||||||||||
Adjusted gross margin | 40% | 58% | 10% | 30% | 29% | |||||||||||||||
Other Financial Information: Adjusted Earnings Before Interest, Taxes and Amortization | ||||||||||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||||||||||
ended February 28, | Change | % Change | ended February 28, | Change | % Change | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
Net (loss) income | $ | (1,195,752 | ) | $ | 52,475 | $ | (1,248,227 | ) | (2,379 | )% | $ | (1,323,181 | ) | $ | 23,668 | $ | (1,346,849 | ) | (5,691 | )% | ||||||||||
Income taxes (benefit) expense | (10,811 | ) | (1,830 | ) | (8,981 | ) | 491 | % | (15,313 | ) | (2,739 | ) | (12,574 | ) | 459 | % | ||||||||||||||
Interest expense, net | 1,040 | 2,312 | (1,272 | ) | (55 | )% | 8,560 | 22,422 | (13,862 | ) | (62 | )% | ||||||||||||||||||
Non-operating income (expense), net | (1,213 | ) | (71,037 | ) | 69,824 | (98 | )% | 50,229 | (186,329 | ) | 236,558 | (127 | )% | |||||||||||||||||
Amortization | 33,769 | 37,020 | (3,251 | ) | (9 | )% | 101,156 | 113,824 | (12,668 | ) | (11 | )% | ||||||||||||||||||
Stock-based compensation | 9,630 | 9,355 | 275 | 3 | % | 29,766 | 27,025 | 2,741 | 10 | % | ||||||||||||||||||||
Change in fair value of contingent consideration | 352 | (30,747 | ) | 31,099 | (101 | )% | 563 | (29,065 | ) | 29,628 | (102 | )% | ||||||||||||||||||
Impairments | 1,115,376 | – | 1,115,376 | NM | 1,115,376 | – | 1,115,376 | NM | ||||||||||||||||||||||
Purchase price accounting step-up | 1,009 | – | 1,009 | NM | 3,223 | – | 3,223 | NM | ||||||||||||||||||||||
Facility start-up and closure costs | 2,100 | 2,500 | (400 | ) | (16 | )% | 6,900 | 10,400 | (3,500 | ) | (34 | )% | ||||||||||||||||||
Lease expense | 700 | 800 | (100 | ) | (13 | )% | 2,100 | 2,400 | (300 | ) | (13 | )% | ||||||||||||||||||
Litigation (recovery) costs | (5,230 | ) | 4,215 | (9,445 | ) | (224 | )% | (1,970 | ) | 6,489 | (8,459 | ) | (130 | )% | ||||||||||||||||
Restructuring costs | 2,663 | – | 2,663 | NM | 10,727 | 795 | 9,932 | 1249 | % | |||||||||||||||||||||
Transaction (income) costs | 5,382 | 5,023 | 359 | 7 | % | (3,882 | ) | 35,653 | (39,535 | ) | (111 | )% | ||||||||||||||||||
Adjusted EBITDA | $ | 14,015 | $ | 10,086 | $ | 3,929 | 39 | % | $ | 39,254 | $ | 36,543 | $ | 2,711 | 7 | % | ||||||||||||||
Other Financial Information: Adjusted Net Loss | ||||||||||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||||||||||
ended February 28, | Change | % Change | ended February 28, | Change | % Change | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
Net (loss) income | $ | (1,195,752 | ) | $ | 52,475 | $ | (1,248,227 | ) | (2,379 | )% | $ | (1,323,181 | ) | $ | 23,668 | $ | (1,346,849 | ) | (5,691 | )% | ||||||||||
Non-operating income (expense), net | (1,213 | ) | (71,037 | ) | 69,824 | (98 | )% | 50,229 | (186,329 | ) | 236,558 | (127 | )% | |||||||||||||||||
Change in fair value of contingent consideration | 352 | (30,747 | ) | 31,099 | (101 | )% | 563 | (29,065 | ) | 29,628 | (102 | )% | ||||||||||||||||||
Impairments | 1,115,376 | – | 1,115,376 | NM | 1,115,376 | – | 1,115,376 | NM | ||||||||||||||||||||||
Inventory valuation adjustments | 55,000 | – | 55,000 | NM | 55,000 | 12,000 | 43,000 | 358 | % | |||||||||||||||||||||
Litigation (recovery) costs | (5,230 | ) | 4,215 | (9,445 | ) | (224 | )% | (1,970 | ) | 6,489 | (8,459 | ) | (130 | )% | ||||||||||||||||
Restructuring costs | 2,663 | – | 2,663 | NM | 10,727 | 795 | 9,932 | 1249 | % | |||||||||||||||||||||
Transaction (income) costs | 5,382 | 5,023 | 359 | 7 | % | (3,882 | ) | 35,653 | (39,535 | ) | (111 | )% | ||||||||||||||||||
Adjusted net loss | $ | (23,422 | ) | $ | (40,071 | ) | $ | 16,649 | (42 | )% | $ | (97,138 | ) | $ | (136,789 | ) | $ | 39,651 | (29 | )% | ||||||||||
Adjusted net loss per share – basic and diluted | $ | (0.04 | ) | $ | (0.08 | ) | $ | 0.04 | (54 | )% | $ | (0.16 | ) | $ | (0.29 | ) | $ | 0.13 | (44 | )% | ||||||||||
Other Financial Information: Free Cash Flow | ||||||||||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||||||||||
ended February 28, | Change | % Change | ended February 28, | Change | % Change | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
Net cash used in operating activities | $ | (18,632 | ) | $ | (46,390 | ) | $ | 27,758 | (60 | )% | $ | (35,692 | ) | $ | (156,738 | ) | $ | 121,046 | (77 | )% | ||||||||||
Less: investments in capital and intangible assets, net | (842 | ) | (1,352 | ) | 510 | (38 | )% | (6,219 | ) | (16,944 | ) | 10,725 | (63 | )% | ||||||||||||||||
Free cash flow | $ | (19,474 | ) | $ | (47,742 | ) | $ | 28,268 | (59 | )% | $ | (41,911 | ) | $ | (173,682 | ) | $ | 131,771 | (76 | )% | ||||||||||
Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
![](https://grassnews.net/wp-content/uploads/2024/07/verano-announces-the-opening-of-zen-leaf-fairless-hills-the-companys-newest-affiliated-dispensary-in-pennsylvania-in-prime-new-location.gif)
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking 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 statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
![](https://grassnews.net/wp-content/uploads/2024/07/unlocking-new-horizons-in-health-tnr-the-niche-research-reveals-the-transformative-power-of-minor-cannabinoids.gif)
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
Market Value in 2023 |
US$ 17.8 Bn |
Market Value Forecast by 2034 |
US$ 42.3 Bn |
Growth Rate
|
8.2% |
Historical Data
|
2016 – 2022 |
Base Year
|
2023 |
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
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Cannabis
Global Agricultural Textiles Market Size To Worth USD 25.02 Billion By 2033 | CAGR of 4.70%
![](https://grassnews.net/wp-content/uploads/2024/07/global-agricultural-textiles-market-size-to-worth-usd-25-02-billion-by-2033-cagr-of-4-70.png)
New York, United States , July 23, 2024 (GLOBE NEWSWIRE) — The Global Agricultural Textiles Market Size is to Grow from USD 15.8 Billion in 2023 to USD 25.02 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 4.70% during the projected period.
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Products made of agricultural textiles, or agro textiles, increase productivity, shield farmers from harmful chemicals and pesticides, and keep soil from drying out. The word “agro-textile” has been used recently to refer to materials used in horticulture and agriculture that are knitted, woven, and non-woven. Reducing the use of hazardous pesticides and herbicides promotes a sustainable farming culture and is also good for the environment. Agricultural textiles have remarkable mechanical potential, environmental resistance, simplicity of processing, and durability features that can enhance the safety, quantity, and quality of agricultural products. Textile textiles have been utilized in agriculture for a very long period. Most textile materials are woven or nonwoven in manufacture and are made of synthetic materials in a variety of decompositions. Furthermore, future expansion in the worldwide agricultural textiles market is anticipated to be driven by the rising demand for agricultural products. Any agricultural commodity or product, whether raw or processed, that is derived from livestock is referred to as an agricultural product. Agricultural textiles are used to protect crops from insects and birds, as well as to provide shade for plants, which increases crop yield. Furthermore, going forward, the market for agricultural textiles is expected to be driven by the rise in sustainable agriculture methods. Sustainable farming operations employ socially and environmentally conscious farming methods to increase crop output over the long term, reducing adverse environmental effects, and fostering equitable working conditions for farmers. However, increased raw material costs substantially impede the expansion of the worldwide agricultural textile industry. The rising cost of raw materials is creating challenges for the sector.
Browse key industry insights spread across 193 pages with 112 Market data tables and figures & charts from the Report on the “Global Agricultural Textiles Market Size, Share, and COVID-19 Impact Analysis, By Product (Woven, Knitted, Non-Woven, and Others), By Material (Nylon, Polyethylene, Polypropylene, Polyesters, and Others), By Application (Agriculture, Horticulture, Forestry, Aquaculture, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.”
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The knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe.
Based on the product, the global agricultural textiles market is divided into woven, knitted, non-woven, and others. Among these, the knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe. The fabric’s multiple applications such as wind control, hail protection, and bird netting are what provide the majority of its revenue. The variety of textiles produced by knitting techniques and the ease of handling knitted fabric has led to a growth in demand for the product. Non-woven fibers can be produced by a variety of techniques, such as chemical bonding, thermal fusion, and mechanical entanglement. A web is created throughout manufacture, adding first mechanical strength and later other properties according to the fiber’s intended use.
The polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe.
Based on the material, the global agricultural textiles market is divided into nylon, polyethylene, polypropylene, polyesters, and others. Among these, the polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Thermoplastic polymer polyethylene has a volatile crystalline structure and a wide range of uses, depending on the kind. One of the most widely used materials for agricultural textiles is polyethylene, which is somewhat more expensive than polypropylene. Farm products are covered in HDPE fabrics, which shield them from UV radiation and inclement weather. HDPE Yarns are a useful foundation material for applications including braiding, twisting, and weaving. Technically, they are resistant to both alkalis and acids.
The aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period.
Based on the application, the global agricultural textiles market is divided into agriculture, horticulture, forestry, aquaculture, and others. Among these, the aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period. The demand for seafood is rising, and this has led to an increase in aquaculture and the growth of the fishing net industry. Other industries that have benefited from this growth include nutraceuticals, pharmaceuticals, and cosmetics. The crops that grow under shade nets are chosen depending on how well they tolerate light. They also help to reduce damage from excessive heat and increase agricultural yield in the summer. They are used in a variety of procedures, such as floriculture, nursery operations, and vermicomposting.
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Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period.
Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period. The region’s noteworthy share can be attributed to the rising demand for agricultural products resulting from changing consumer preferences and population expansion. Due to the significant demand generated by the developing economies of China and India. In addition, China is the biggest consumer since it uses a lot of these textiles for its agricultural and aquaculture sectors. These uses include using nets, mulches, and storage bags to save aquatic life and crops.
North America is predicted to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Research into more sustainable agriculture practices and consumer interest in organic products will both rise. China is the top region in terms of the agricultural textile market. The region’s expanding aquaculture sector, which generates fish oils, shell meats, and other products, as well as increased domestic consumption, accounts for this development. Policies that support aquaculture at the federal level will drive up demand for these textiles.
Competitive Analysis:
The report offers the appropriate analysis of the key organizations/companies involved within the global market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. Major vendors in the Global Agricultural Textiles Market include Beaulieu Technical Textiles, Belton Industries, Meyabond, Capatex, Neo Corp International, Garware Technical Fibres, HUESKER Synthetic, Maccaferri, Koninklijke Ten Cate, DuPont de Nemours Inc., Leggett & Platt, SRAM & MRAM Group, Bonar Technical Fabrics, Visaka Industries Limited, and Others.
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Recent Developments
- In June 2024, Beaulieu Technical Textiles highlighted performance and sustainability when introducing their Recover and Recover Pro ground covers at GreenTech Amsterdam 2024. Recover uses recycled materials to reduce CO2 emissions and increase durability, while Recover Pro uses volcanic lava rock to improve plant health and water management. The line provides longevity, cannabis, and UV protection.
Market Segment
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Agricultural Textiles Market based on the below-mentioned segments:
Global Agricultural Textiles Market, By Product
- Woven
- Knitted
- Non-Woven
- Others
Global Agricultural Textiles Market, By Material
- Nylon
- Polyethylene
- Polypropylene
- Polyesters
- Others
Global Agricultural Textiles Market, By Application
- Agriculture
- Horticulture
- Forestry
- Aquaculture
- Others
Global Agricultural Textiles Market, Regional Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- Uk
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa
Browse Related Reports
Global Agriculture Supply Chain Management Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Solutions, and Services), By Solution (Manufacturing Execution System, Procurement & Sourcing, Transportation Management System, Supply Chain Planning, and Warehouse Management System), By Deployment (On-Demand & Cloud-Based, and On-Premise), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033Global Agriculture Supply Chain Management Market Insights Forecasts to 2033
Global Agricultural Haying and Forage Machinery Market Size, Share, and COVID-19 Impact Analysis, By Type (Forage Harvesters, Conditioners, Balers, Mowers, and Others), By Application (Small Farms, Medium Farms, and Large Farms), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
Global Agricultural Enzymes Market Size, Share, and COVID-19 Impact Analysis, By Product (Phosphatases, Sulfatases, and Dehydrogenases), By Crop Type (Cereals & Grains, Fruits & Vegetables, Turf & Ornamentals, Oilseeds & Pulses, and Others), By Functionality (Plant Growth Regulation, Crop Protection, and Fertility products), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
Global Agricultural Disinfectants Market Size, Share, and COVID-19 Impact Analysis, By Type (Chemical Disinfectants, Physical Disinfectants, Biological Disinfectants, and Others), By Form (Liquid, Powder, and Others), By Application (Surface, Aerial, Water Sanitizing, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
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