SHAKEOUT CONTINUING IN CANADA
Numerous cannabis retailers in Canada have not met their revenue projections and are closing in the COVID-19 period, pressured by high rents. Competition in Canada has been intense with many new products, pricing pressure, and an improvement in product quality. According to Statistics Canada, in Q4, 16.7% of Canadians used cannabis in the past three months. Nova Scotia residents had the highest percentage of usage at 27.5%. Retail sales in March were up 19% from February, and many retailers are having success, especially some of the 25 that were able to open in the entire province of Ontario last year.
CWEB: CN HITS THE BID
CWEB: CN is having a good quarter with the stock up 20%. Not surprisingly, yesterday, the Company announced an ATM offering, with the final terms of the Offering to be determined at the time of pricing. Also, the Company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the proposed Offering on the same terms and conditions. Net proceeds from the Offering are expected to be used primarily to fund the Company's business development and for general working capital purposes. Revenue growth is estimated to slow to 21% in 2020, and EBITDA losses accelerate to a loss of C$19 million from a loss of C$2 million last year.
SELECT COMES TO CT
Yesterday, CURLF announced it would expand its line of Select brand products into Connecticut. Select Elite Live cartridges will be available at local medical dispensaries across the state. Select, which was acquired by Curaleaf in February 2020, is available in Oregon, California, Arizona and Nevada, and recently expanded to Colorado, Michigan, Maryland, and Oklahoma. Curaleaf will expand its product line in the coming months across several states to include Select Elite Live cartridges, oil infused with freshly harvested live resin terpenes. There are currently 40,000 patients in Connecticut. Recently CT added chronic pain and Ehlers-Danlos Syndrome to its list of MMP qualifying conditions.