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📱 Eaze App is now Shoppable
Terra Tech closes Merger with Unrivaled and Rebrands as Unrivaled Brands. Trulieve completes $60M Acquisition of Keystone Shops (PA). Illinois reports $115.6M for June Adult Use Cannabis Sales.
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Eaze App in App Store is now Shoppable. The shoppable Eaze app is a major milestone for the legal cannabis market and consumers. Apple has long prohibited full e-commerce functionality, forcing customers to complete transactions through the Eaze.com website. Apple recently changed that policy, enabling Eaze to create a shopping experience that is easier, more fun, and reflects how many people actually shop today. The Eaze app allows customers to complete all aspects of delivery seamlessly: registration, ID verification, product selection, payment, and receipt to the doorstep. The app has a 4.7-star rating from over 4,300+ reviews.
Illinois Adult Use Cannabis — June Sales Remain Flat.
Terra Tech — Successful Closing of Merger with Unrivaled and Rebranding as Unrivaled Brands. The merger with Unrivaled brings together two California-based companies with combined operations in California, Oregon and Nevada. Collectively, the Company operates a broad array of cannabis assets involving cultivation, distribution, brands, processing and dispensaries. The combined Company’s portfolio includes well-respected brands in cannabis, including Korova, Sticks, Cabana, Blüm and The Spot. In connection with the merger with Unrivaled, the Company changed its name to Unrivaled Brands, and as part of the Company’s rebranding, the Company will start trading under its new ticker symbol, “UNRV”, on the OTCQX market at the market opening on Thursday, July 8, 2021. On a combined basis the Company expects to generate $70M+ in revenues in 2021 and be cashflow positive in Q4 of 2021. The Company has ~$40M of cash on their balance sheet following the monetization of their Hydrofarm investment
Trulieve — Completes Acquisition of Keystone Shops in Pennsylvania. Total transaction consideration was $60M satisfied through the payment of $20M in cash and by the issuance of 1,009,336 shares which are subject to lockup periods of up to 18 months following the closing date of the transaction. The deal does not carry a deferred payment or an earn-out period and provides for an additional $5M in consideration which is contingent upon the enactment, adoption or approval of laws allowing for adult-use cannabis in Pennsylvania. The acquisition adds to Trulieve's footprint of 91 dispensaries nationally.
📄Earnings / Company Updates
KushCo Holdings — Fiscal Third Quarter 2021 Results
Revenue increased 27% Year-over-Year to $28.3M, Driven By Continued Success in Penetrating Top MSOs, LPs, and Leading Brands
Gross Profit was 15%, compared to 11% in the prior year period (GAAP)
SG&A expenses were ~$9.1M, compared to $12.7M in the prior year period
Net loss was (~$8.0M), compared to (~$13.5M) in the prior year period (GAAP)
Cash was ~$1.1M as of May 31, 2021, compared to ~$35.0M as of February 28, 2021. The sequential decrease in cash was primarily driven by the Company using a portion of its proceeds from its $40M equity raise in February 2021 to pay off its $17M term debt and existing balance on its revolving line of credit. As of May 31, 2021, the Company had $0.7M of total debt outstanding
Ayr Wellness — adds to its Florida Footprint, Opens New Dispensary in Key West. The Liberty Health Sciences Key West store will be the Company’s 37th opened dispensary in Florida. The Florida medical marijuana market continues to show robust growth with the Florida Office of Medical Marijuana Use reporting over 582,883 registered patients as of July 2, 2021, up 61% year-over-year.
HERBL — CEO Mike Beaudry Sees a Natural (Food) Arc in Cannabis Distribution. The company started in mid-2018, doing ~$5 million in GMV that year. In 2019, that number jumped to more $100 million GMV and then to more than $250 million GMV in 2020.
“It happens logically with the number of SKUs and the number of touchpoints that a retailer has, where the retailer ultimately decides how this works. And in my experience, the retailer is going to say, ‘Hey, I can see 100 different vendors, or I can see five or 10.”
Bespoke Financial — CEO George Mancheril
We have a handful of cases studies and client success stories here on our website. One of the most exciting growth stories we have seen has been our client DreamFields whose in-house brand, Jeeter, is now the #1 pre-roll brand in the state of California. Prior to working with Bespoke, the brand was not ranked in the top 25 but was able to grow sales over 1,000% within the first year of working with us and achieve the #1 spot in their product category.