Transparency can go a long way
VRNOF is a LONG; nothing to see in the earnings delay
Yesterday, VRNOF said it would be rescheduling its 4Q21 earnings release. The transparency and context of the company were necessary, given the negative implication of such a move. In 2021, VRNOF completed an RTO and announced 18 acquisitions. Rolling up any business can be difficult, but cannabis is exceptionally hard, given each state effectively operates in a silo. The company is also transitioning to a new auditor and converting three years of IFRS financials to U.S. GAAP. A lot is going on. Between the two accounting firms, the company "occasionally had differing opinions regarding technical accounting methodology on certain issues," which resulted in delays to the audit timeline. Something not in the company's control. The company explained on a call that differing opinions "has to do with one transaction in a single dispensary that happened in 2019, has no bearing at 2021." It's just a differing opinion on consolidation between two different auditing firms.
Industry Sales Tracker
- In February sales in Medial Hedgeye tracked states accelerated MoM to +34.9% from 30.9%
- In February sales in Adult-use Hedgeye tracked states accelerated MoM to +13.2% from 10.7%. Excluding CA, CO & OR for the month of February sales increased +51.6% down from +55.6% in January
TerrAscend
TerrAscend Corp. announced that its subsidiary, Gage Cannabis Co. ("Gage"), will open a Cookies dispensary in Ann Arbor and host a grand opening celebration on April 8th. Located in the heart of Ann Arbor at 2460 W. Stadium Blvd., the new flagship cannabis provisioning center will be operated by Gage in exclusive partnership with Cookies.
