Shares of Curaleaf Holdings (OTC:) (CSE:) dropped slightly in after-hours trading yesterday following the cannabis grower’s reported first quarter results after the close.
The Massachusetts-based company, which is currently ranked the second largest multi-state operator in the US, revenues of US$313 million for the three-month period that ended Mar. 31. The figure represents a year-over-year increase of 20%.
Retail revenues were up in the first quarter, hitting US$226 million, a 21% increase for the period. In its press release, the company stated:
“The company’s year-over-year revenue growth primarily reflects continued organic growth driven by new retail store openings, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities.”
Curaleaf operates in 23 states, giving it one of the largest geographic footprints in the United States in the cannabis space. As CEO Boris Jordan explained:
“Our national footprint has always been a key advantage of our growth strategy, and despite a tough macro environment during the first quarter, Curaleaf continued to grow share in several important markets.
“We saw strong month-over-month growth beginning in March and heading into the second quarter, boosting confidence in our ability to hit full year revenue guidance of $1.4 billion – $1.5 billion.”
During the first quarter, the company opened 11 new retail dispensaries, bringing its total number of retail outlets to 128.
One highlight that dragged on the overall results was the net loss of US$20 million for the quarter, higher than the US$15 million net loss posted in the same quarter in 2021.
Since January, shares of Curaleaf have lost about 32.5%. In the last year, the stock has dropped more than 60%.
The troubled Canadian cannabis grower CannTrust Holdings (TSX:) got a new name last week.
The company will now go by Phoena Holdings, and as the company’s announcement states, that is pronounced ‘fee-nah.’
Investors led by a subsidiary of Netherlands-based Kenzoll will own 90% of the newly named company, while the remaining 10% will be held by CannTrust Holdings.
The new title, according to management, marks the beginning of a new phase for the company that was removed from creditor protection in March.
In January, the beleaguered company issued a statement outlining a settlement of a class action lawsuit it was hit with, which included an admission it was running short on cash reserves.
The admission of a liquidity shortfall was the last leg of an epic slide for the marijuana grower that spanned a few years. In April 2020, it was delisted from New York Stock Exchange, followed by the delisting on the Toronto Stock Exchange in May 2020 in the wake of seeing its growing licenses suspended after the company was caught growing pot in unlicensed space in its growing facilities in Ontario.
Although its licenses were reinstated, the situation triggered legal problems with investors and led to the class-action suit, that cost more than $50 million to settle.
Switzerland Launches Cannabis Trial
Switzerland will launch a recreational cannabis trial program in August, according to a report by Forbes.
The goal is to collect information on the effects of controlled access to marijuana and consumer behavior. The trial will be run in Basel, the country’s third largest city and only involve 400 people.
According to Forbes, the pilot program is expected to be closely watched by other European countries, many of which are looking to ease restrictions on cannabis use.
Germany plans soon to allow recreational use, while France is already conducting a trial of medical cannabis.
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