Liberty Health Sciences (LHSIF) reports strong fiscal 2021 results, suggestive of outperformance for other Florida operators
Liberty Health Sciences (LHSIF), a producer and retailer of cannabis products with primary operations in Florida, reported their financial results for the first quarter ended May 31, 2020. Consolidated net sales for Q1 FY2021 grew 235% at C$18.4M, compared with C$5.5M for the comparable period in 2019. The significant jump in revenue was driven by the company’s YoY increase of dispensaries locations, the expansion of the product portfolio, an increase in smokable flower sales, and the overall increase in qualified patients in Florida’s medical marijuana program. Adjusted EBITDA was C$4.6M, a significant improvement from negative adjusted EBITDA of -C$3.6M for the quarter ended May 31, 2019. EPS slightly improved at C$0.1 for Q1 FY2021 vs -CA$0.1 for Q1 FY2020.
In the most recent Florida Office of Medical Marijuana Use (OMMU) data for the week ending July 24, LHSIF had a 10% market share in retail units, a 5.9% share of mgs THC sold, a 3.2% share in mgs CBD sold, and a 4.7% share of flower (oz) sold. The company presently has 26 dispensaries throughout the state of Florida, with signed lease agreements to open ten new locations – the company’s stated goal is to have 35 dispensaries by the end of fiscal 2021.
Germany medical cannabis flower imports grow 32% sequentially in Q2 2020
The German Federal Institute for Drugs and Medical Devices (BfArM) reported a total of 4,126 KG of medical cannabis flower imports in H1 2020. Sequentially, Q1 2020 imports grew 16% while Q2 2020 imports grew 32%. H1 2020’s 4,162 KG of medical cannabis flower, primarily for pharmacy dispensing, grew 63% over H1 2019 total imports.
MJBizDaily estimates that by year end 2019, Germany imported 54% of its medical cannabis flower from Canada, 38% from the Netherlands, and 8% from Portugal. In early 2020, Germany authorized imports from Spain and Denmark to lessen their supply reliance on a small number of countries.
Germany is expected to be exclusively dependent on imports until year end 2020, by which time local production of medical cannabis flower is anticipated to be ready.
The U.S. House votes for state protections against federal interventions
The U.S. House of Representatives passed an amendment yesterday strengthening protections for state adult-use marijuana programs. The amendment restricts the DOJ from using taxpayer money from enforcing federal laws on marijuana legality on a state-wide level.
While the provision likely won’t past the Republican-controlled Senate, the fact that it passed at 254-163 with 31 Republicans in favor indicates sustained bipartisan support to protect legal state marijuana programs against federal interventions.
Justin Strekal, Political Director of the cannabis advocacy group NORML, commented, “This is the most significant vote on marijuana policy reform that the House of Representatives has taken this year. The importance of this bipartisan vote cannot be overstated as today; nearly one in four Americans reside in a jurisdiction where the adult use of cannabis is legal under state statute. It is time for Congress to acknowledge this reality and retain these protections in the final spending bill.”
