Tick Tok - ACB
Aurora Cannabis (ACB) saw its fiscal 2022 Q4 net loss balloon to C$618.8M from C$134M in the prior-year period due to non-cash impairment charges of C$505.1M. Those charges stemmed from bad management unable to manage changes in cannabis market conditions and the capital market environment characterized by higher borrowing rates and lower foreign exchange rates. Net revenue fell 8% to C$50.2M year over year. Consumer cannabis net revenue was particularly hard hit as it declined 35% in the quarter to C$12.6M compared to FQ4 2021. Medical cannabis showed a modest 4% year-over-year increase. (ACB) ended FQ4 -- June 30, 2022 -- with C$488.8M in cash.
NY COMING SOON.
Its been over a year and a half since New York signed into law a bill that legalized adult-use cannabis in the state. Chris Alexander, executive director of the New York State Office of Cannabis Management, told Capital Tonight that the office is working on licensing retailers for the legal cannabis market with a prioritization of small and medium businesses. Alexander said the first retailers are “fully on track” to open by the end of 2022 with more on the way in the new year. The illegal market will still be a factor in New York even with legal retailers operating in the Empire State. Alexander argues, citing other states that have legalized cannabis, that a successful legal market along with enforcement will slowly erode the black market but not completely eliminate it. On the issue of people selling cannabis outside of the legal market, Alexander says “by jumping the gun now, you put your future in this market at risk” and encourages retailers to achieve stability by going through the legal route. Some cannabis CEOs have commented that the New York black market is bigger and will be harder to reduce than California. We believe the black market issues in New York are much greater and will need more focus than Alexander is thinking currently. spectrumlocalnews.com
CLEVER Gets a new partnership.
Clever Leaves Holding (CLVR) announced today a partnership with U.S. cannabis-branded genetic company, House of Kush. As the exclusive grower for House of Kush globally, Clever Leaves will cultivate and commercialize House of Kush proprietary genetics in its Colombia and Portugal facilities for the duration of the three-year agreement, after completing an initial evaluation and adaptation phase of the genetics for each production location.
