AYRWF Earnings
AYRWF is a LONG
Ayr Wellness reported Q4 revenue and EBITDA essentially in-line with expectations, as revenue growth accelerated QoQ to 48% from 41%. Over the next two quarters, we will see a sharp acceleration in revenue growth to 145% and 425%, respectively. The quarter's revenue was $47.8M, up 48% YOY vs. a consensus of $48.3M. Adjusted EBITDA was $19.4M, up 111% YOY vs. consensus of $19.8M. Nevada sales grew 21% YOY. Massachusetts retail revenues grew 136%, while wholesale grew 109%. In Pennsylvania, management expects its first harvest to be in the spring, and two dispensaries recently opened. Ayr Wellness has made a series of investments in recent months. The company raised $110M in debt, $48M in warrant exercise, and $128M in equity. Utilizing the funds, it closed on two acquisitions in Pennsylvania, closed the acquisition of Liberty Health Sciences, and is expected to close on the Arizona and Ohio acquisitions this month. In one year, the company has gone from two state markets to seven.
We have more detail on the AYR quarter following the earnings call.
Organigram Holdings Inc. gets a C$221M strategic investment from BAT.
The OGI/BAT deal is the second big cannabis deal in the past three years. With CL doing Hemp toothpaste, more and more CPG companies will be entering the space. Organigram and BAT have also entered into a Product Development Collaboration agreement. A "Center of Excellence" will be established to focus on developing the next generation of cannabis products with an initial focus on CBD. The Center of Excellence will be located at Organigram's indoor facility in Moncton, New Brunswick, which holds the Health Canada licenses required to conduct research and development activities with cannabis products.
Both companies will contribute scientists, researchers, and product developers to the Center of Excellence, which will be governed and supervised by a steering committee consisting of an equal number of senior members. Under the terms of the PDC agreement, both Organigram and BAT have access to certain of each other's intellectual property and, subject to certain limitations, have the right to independently, globally commercialize the products, technologies, and IP created by the Center of Excellence according to the PDC agreement. The BAT subsidiary has subscribed for approximately 58.3M common shares of OGI, representing a 19.9% equity interest on a post-transaction basis for total proceeds of approximately C$221M at a price per share of C$3.792, based on a five-day VWAP on the TSX ending 9-Mar-21. BAT's board representation rights under the Investor Rights agreement entitle BAT to appoint (i) 20% of the board for so long as it holds at least 15% of the issued and outstanding common shares in OGI from time to time and (ii) 10% of the board so long as BAT holds at least 10% of the issued and outstanding common shares of Organigram from time to time
Alabama lawmakers are holding a public hearing on medical marijuana legislation.
The House Judiciary Committee is holding a public hearing on the Senate-passed bill on Wednesday afternoon. The bill by Republican Sen. Tim Melson would allow people with a qualifying medical condition to purchase marijuana after getting a doctor's recommendation. The Alabama Senate approved the bill by a 21-8 vote last month. However, the House of Representatives has previously been more skeptical of medical marijuana proposals. People could get a doctor’s recommendation to use medical marijuana for 17 types of conditions — including cancer, anxiety, epilepsy, menopause, a terminal illness, and chronic pain. The bill would allow marijuana in forms such as pills, skin patches, and creams but not in smoking or vaping products.
