Investor
Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 429 (TSX: $FAF.TO)
(OTCQX: $FFLWF) (OTCQB: $SGMD)
(OTC: $HEMP)
Delta, Kelowna, BC, June 16, 2020 (Investorideas.com Newswire)
www.Investorideas.com, a global news source covering leading sectors including
marijuana and hemp stocks and its potcast site, www.potcasts.ca release today’s podcast edition of cannabis news and stocks to watch plus insight
from thought leaders and experts.
Listen to the podcast:
Read this in full
at https://www.investorideas.com/news/2020/cannabis-potcasts/06161FAF-FFLWF-SGMD-HEMP.asp
Today’s podcast overview/transcript:
Good
afternoon and welcome to another episode of Investorideas.com
"Potcast" featuring cannabis news, stocks to watch as well as
insights from thought leaders and experts.
In
today’s podcast we look at a few public and private company announcements.
Fire
& Flower Holdings Corp. (TSX:
FAF)
(OTCQX:
FFLWF), today
announced its financial and operational results for the
thirteen-weeks ended May 2, 2020.
Some of the Financial and
Operational Highlights for the Thirteen Weeks Ended May 2, 2020 included:
● Total
revenue of $23.1 million at a gross profit of 32.6%, compared to revenue of
$9.5 million in Q1-2019 at a gross profit of 38.5% - representing a 142%
increase in revenue year-over-year.
● 83%
increase in wholesale revenue through Open Fields Distribution in Saskatchewan
from $2.1 million in Q4-2019 to $3.9 million in Q1-2020.
● Completed
two financings for aggregate gross proceeds of up to $28 million with Green
Acre Capital LP as lead investor and AltaCorp Capital Inc. acting as the
exclusive financial advisor to Fire & Flower. Additionally, Alimentation
Couche-Tard Inc., through an indirectly wholly-owned subsidiary exercised its
participation rights in respect of the offerings.
● Entered
into a commitment letter for an aggregate amount of up to $10 million with an
option for an additional $5 million for non-dilutive credit facilities with ATB
Financial, the largest Alberta-based financial institution.
● Amended
the provisions of certain debentures and forced conversion of all remaining
principal amounts and accrued unpaid interest through the issuance of 12,223,638
common shares of the Company.
● Maintained
business continuity during the COVID-19 public health crisis through rapidly
implementing safety operating procedures and the ability to continue to serve
customers through the Hifyre Digital Retail and Analytics Platform including
the Spark Fastlane™ "click-and-collect" service, curbside pickup and
home delivery in select provinces.
● Began
home delivery in the province of Ontario through the Hifyre™ Digital Retail and
Analytics Platform as permitted by the Government of Ontario's emergency order.
Subsequent Financial and Operational
Highlights post May 2, 2020
● Hifyre's
Spark Perks™ member program achieved the milestone of more than 100,000 members
who are typically more valuable customers as they exhibit more frequent
transactions with higher basket sizes, compared to non-members.
● Continued
to commercialize the Hifyre IQ cannabis data program through building ongoing
monthly recurring revenue.
● Began to
realize positive financial and operational results from the restructuring plan
in the Retail Platform as part of normal-course retail operations announced
during Q4-2019.
"Fire & Flower's financial
and operational results for the first quarter, fiscal 2020 demonstrate that the
Company continues to show positive growth quarter over quarter and over its
previous fiscal year. We will continue to work towards positive operating
EBIDTA delivered through four-wall retail economics," shared Trevor
Fencott, Chief Executive Officer of Fire & Flower. "The Ontario market
presents a key growth opportunity for the Company and we will continue to focus
on all major markets for private retail across Canada. Both the Open Fields
Distribution Platform and Hifyre Digital Retail and Analytics platform provide
additional independent revenue opportunities for the Company."
The
Medical Cannabis by Shoppers™ team announced the
launch of same-day delivery for medical cannabis patients in cities in and
around the Greater Toronto Area (GTA).
Medical Cannabis by Shoppers is
Shoppers Drug Mart's online platform for the sale of medical cannabis. The
service provides patients convenient access to a broad range of products
through a single source, alongside expert advice and counsel from trusted
healthcare professionals.
The launch of same-day delivery in
the GTA will help ensure that medical cannabis patients have continuous access
to the treatment they need.
"Similar to traditional
medications, disruption in a medical cannabis patient's access to treatment can
be damaging. Medical cannabis requires
the same level of timely adherence to scheduled dosing as any prescribed
medication," said Ken Weisbrod, VP, Pharmacy Business Development &
Initiatives, Shoppers Drug Mart. "As part of our commitment to patients
and customers to ensure the safe, timely and reliable access to their medical
cannabis, we've implemented same-day delivery service for cities in and around
the GTA."
Medical Cannabis by Shoppers has
partnered with Pineapple Express
Delivery, a leading logistics technology company offering specialized
delivery services for the legal cannabis industry. Starting this week, customers in areas
serviced by same-day delivery will automatically have the option to select the
service on check-out. Same-day delivery
will be provided free of charge for medical cannabis orders over $100 placed
until July 15, 2020.
Sugarmade,
Inc. (OTCQB:SGMD), and
its BudCars Cannabis Delivery Service, announced record
growth in gross profits and gross profit margins for BudCars sales during the
month of May (up 46% on a sequential month-over-month basis), and continued
strong signals so far during the first half of June, with gross profits growing
9.9% on a week-over-week basis.
The Company believes this
performance data provides a template for its per unit operational performance
anticipated as it gears up to launch its first Los Angeles hub next month. The
Los Angeles cannabis market is arguably the biggest municipal legal cannabis
market in the world, and the Company conservatively estimates that its first LA
hub will add at least $20 million in annualized sales, with a similar
anticipated gross margin profile.
“As we gear up to open our first new
hub in the Los Angeles regional market, we continue to see very good signs from
our Sacramento hub, with the very rapid topline growth clearly translating to
the bottom line as margins hold up and even improve,” commented Jimmy Chan, CEO
of Sugarmade. “As we recently reiterated, BudCars is not a delivery business
comparable to GrubHub or Uber Eats. It is a top cannabis retail business with
very consistent 46-52% gross margins on a wholesale inventory with very secure
logistical underpinnings. This differentiation has been a source of
misunderstanding, and it is critical to fully appreciating our value proposition
and our strategy as a Company moving forward.”
Management notes that May was the
Company’s best month on record as far as total gross profits since taking
operational control of BudCars, a mark that looks certain to be surpassed by
the Company’s performance in June, as growth in sales and gross profits
continues to race ahead at approximately 10% on a week-over-week basis.
As noted in the Company’s June 4
press release, BudCars will surpass $10 million in annualized sales by the
month of August at its Sacramento location provided the Company maintains its
current pace of growth.
In addition, management believes
that performance seen at the BudCars Sacramento hub provides a strong basis for
understanding key dynamics that will shape operational performance at the
Company’s initial southern California BudCars hub, as the Company moves toward
the opening of its first Los Angeles location.
Hemp,
Inc.
(OTC:
HEMP), a global leader in the industrial hemp industry with
bi-coastal processing centers, including the 85,000 square foot multipurpose
industrial hemp processing facility on 9 acres in Spring Hope, NC, a 55,000
square foot state of the art local processing center in White City, Oregon, a
500 acre hemp growing Veteran Village Kins Community in Golden Valley, Arizona,
two model “Small Family Hemp Farms” in North Carolina and Arizona, a hemp
pre-roll blending manufacturing facility in Las Vegas, NV, a 5,000 square-foot
retail store (The King of Hemp Store™) in Kingman, Arizona and recently
surpassed over $1 million in sales of their pre-98 OG Bubba Kush buds, announced that
the King of Hemp™ website has been updated and enhanced.
The recent website update includes a
revamped user interface, Bruce Perlowin’s fascinating biography, thorough COA
reports, a portal to sign up for a loyalty rewards membership and a more easily
navigable online store.
The online store is home to Hemp,
Inc. CEO Bruce Perlowin’s King of Hemp™ pre-roll line, which offers high-end
products that are an effective and flavorful, smokeable alternative to
cigarettes and other hemp consumption methods. Bruce Perlowin’s recently
launched King of Hemp™ pre-rolls use A and B hemp colas which are derived from
Pre-98 OG Bubba Kush, one of the top selling cultivars on the market. Oregon’s
highly skilled hemp cultivators and unique climate, the strain and rich soil
lend themselves to the colas being among the highest quality buds on the
market, positioning them to be some of the best tasting for consumption.
The King of Hemp™ pre-rolls are
compliant with the 2018 Farm Bill, federal regulations, and regulations in the
markets where they are available for purchase. The pre-rolls can be purchased
individually or in packs of 6 on the newly renovated website. Each pre-roll is
1 gram and does not exceed 0.3% THC.
The Company’s website also has CBD
oil tinctures available for purchase. The tinctures are available in various
potencies and come in two flavors, Natural and Peppermint. The King of Hemp™
tinctures contain full-spectrum hemp oil extracted from the flowers and leaves
of hemp plants, are sustainably sourced from Colorado, and are compliant with
the regulations created by the Colorado Department of Agriculture in regards to
industrial hemp. The tinctures contain .3% or less THC and are compliant with
the 2018 Farm Bill.
“We were so excited to bring the
King of Hemp™ pre-roll line and the CBD tinctures to market. They have been in
such high demand so we decided to roll out with the online shop so customers
could have access to them. This has been a priority for us,” said Bruce
Perlowin, CEO of Hemp, Inc. “Now that all of our current products are
available, we have been able to troubleshoot and receive feedback. We decided
to implement the constructive feedback by revamping our site, adding COA
reports, breaking out the product offerings. We also added my full biography to
the website since I wanted to provide insight about my journey and add a
personal touch to the King of Hemp™ experience.”
Investor ideas reminds all
listeners to read our disclaimers and disclosures on the Investorideas.com
website and that this podcast is not an endorsement to buy products or services
or securities. Investors are reminded all investment involves risk and possible
loss of investment.
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