Welcome to Cultivated, our weekly newsletter where we’re bringing you an inside take a look at the deals, patterns, and personalities driving the multibillion-dollar international marijuana boom.
Happy Valentine’s Day Cultivated readers,
We’ve been very mindful that V-Day was around the corner for a while now due to the fact that of all the themed news release that have been sent our way. From pre-rolls in the shape of actual flowers to cannabis-based massage oil, there appears to be a lot out there for all the romantics.
Anyhow, let’s come down to it.
We have actually updated our list of ongoing layoffs in the cannabis industry again this week with the addition of Supreme Cannabis, which cut around 15%of its workforce on Tuesday. And with Aurora’s 500 cuts last week, our tally for cannabis layoffs stands at around 2,000
Canopy Development and Aurora Cannabis likewise reported incomes this week. Aurora’s revenues, experts say, were no surprise after the guidance they released recently.
Both Canopy Development and its endeavor capital division Canopy Rivers published quarterly earnings today, which we covered in our post here.
Canopy Growth shocked investors with a 49%jump in net profits to C$1238 million in the last 3 months of2019 Canopy’s stock skyrocketed about 12% in trading and other companies, like Tilray and Aurora, rode the wave also.
Jeremy’s off snowboarding in Utah this weekend, so Yeji is on point for earnings coverage. More to come!
– Jeremy and Yeji
Here’s what we composed about today:
A cannabis-tech platform that quietly manages $1 billion in sales every year is the hottest start-up that the market’s investors are eyeing
The buzziest start-up in marijuana doesn’t even offer marijuana.
Flowhub, a cannabis-tech company that assists sellers track inventory and process sales, topped Business Expert’s current list of the hottest startups in the industry. Founded in 2015, Flowhub has raised $27 million from financiers and now works with more than 900 dispensaries in the US.
The US cannabis market is projected to reach $85 billion by 2030, up from $51 billion now, and Flowhub– which currently runs across 12 states– is set to benefit as more states legalize marijuana.
Legal marijuana is strenuously tracked, according to Flowhub creator and CEO Kyle Sherman. He stated he likes to inform legislators on Capitol Hill that the US tracks legal cannabis much better than it does uranium.
From officers to budtenders, 2,000 people have actually lost their tasks in cannabis. We’re monitoring all the task cuts throughout the industry here.
The once red-hot marijuana market is returning down to earth.
In the past few months, cannabis companies– consisting of venture-backed start-ups like Pax and giants like MedMen– have announced a series of job cuts, totaling up to over 2,000 workers in the sector as a whole.
Supreme Cannabis, a Canadian marijuana grower, on Tuesday stated it was getting rid of 15%of its labor force, including one-third of corporate positions, in an effort to cut expenses.
The world’s greatest cannabis business just offered a big signal that the marijuana decline may be concerning an end
Canopy Growth’s latest incomes might just be signifying the end of the long downturn in the marijuana industry.
In its monetary outcomes on Friday, the business reported an unforeseen 49%dive in net income to C$1238 million in the last 3 months of2019 The company also reported a narrower loss than analysts anticipated, according to estimates collected by Bloomberg News. That sent out the stock soaring about 12% in trading on Friday.
The results come as a sign of good news for the industry. Other cannabis firms that have faced a tough couple of months likewise saw their stocks increase.
Capital raises, M&A activity, collaborations, and launches
- European medical cannabis cultivator Sanity Group closed a $22 million Series A financing round led by Calyx and HV Holtzbrinck Ventures. Other investors include Scooter Braun’s TQ Ventures.
- Acreage Holdings protected a $100 million credit facility from undisclosed financiers, a $50 million private loan partially from CEO Kevin Murphy, and a $30 million private placement.
- KushCo, a publicly-traded maker of marijuana devices, raised $16 million through a direct offering.
- Disturbance Labs, the parent business to CBD company Reset Biosciences closed a $3.8 million seed round led by Andrew Garnock/AJR Consulting, a household office that has previously purchased the medical marijuana space.
- Flowhub worked with Craig Gomulka as CFO and Scott Schell as CTO. You can learn more about Flowhub in Yeji’s story here
- Former Molson Coors marketing executive Greg Butler has joined Cresco Labs as the business’s chief commercial officer.
- Aaron Keefer, the cooking garden enthusiast for the renowned dining establishment The French Laundry, has joined Sonoma Hills Farm as VP of Cultivation.
Chart of the week
The legal cannabis industry supports 243,700 full-time tasks in the US. Nearly 40,000 of those remain in California, accounting for about 16%of all legal cannabis tasks in the country.
Take a look at the information from Leafly’s tasks report here:
What we read
Q&A: The Food Giants Push For “Smart Policy” of CBD(Marijuana Wire)
Nepal legislators look for to legislate growing, using cannabis(Associated Press)