🧾 MSOs Continue Earnings Beat

Earnings (Quarterly Revenue) — GTI ($221.9M), Trulieve ($215.1M), Columbia Care ($109.7M), Flower One ($18.3M). Superette unveils Sip ‘N’ Smoke, “express” dispensary concept.

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🌿Industry

Recreational cannabis store licenses remain in limbo while court fights continue. One group alleges it was mistakenly kept out of lottery. A judge continued to keep in limbo new cannabis store licenses in Illinois while one applicant alleges that the state mistakenly kept it out of the first lottery to award licenses. Cook County Judge Moshe Jacobius has ordered that the state not award any new dispensary licenses, including for medical cannabis, until he rules on a lawsuit before him. The state plans to hold the last of three lotteries to award licenses Aug. 19, but the judge’s order means the winners won’t get any of the 185 new licenses until the judge rules. State officials noted that lottery results may change as a result of further court orders or administrative review. Wah and Haaayy LLC have claimed that the state process for scoring cannabis license applications was flawed, and unfairly required veteran ownership to achieve a perfect score and qualify for all lotteries. The next court hearing is set for Monday — Chicago Tribune

Splash House's Groundbreaking Cannabis Sponsorship Could Hint at the Future of Festivals. The deal between Splash House and Green Dragon dispensary—which includes a consumption lounge, interactive kiosks, branded merchandise and a mobile app for orders and deliveries—continues to usher in the return of in-person events and signals a renewed appetite for cannabis tie-ins. The fest may serve as a model for other partnerships between entertainment events and Cannabis brands, its organizers say. — ADWEEK


📄Company Updates / Earnings

Green Thumb Industries — Q2 2021 Results

  • Revenue increased 14.1% sequentially and 85.4% Y/Y to $221.9 million

  • First half 2021 revenue increased 87.3% to $416.3 million

  • Fourth consecutive quarter of positive GAAP net income, delivering $22.1 million or $0.10 per basic and diluted share

  • Adjusted Operating EBITDA grew 11.1% sequentially and more than doubled year-over-year to $79.3 million or 35.7% of revenue

  • Sixth consecutive quarter of positive cash flow from operations, delivering $48.3 million year-to-date

  • On April 30, 2021, Green Thumb raised $216.7 million in senior secured debt at 7%. The proceeds were used to retire $105.5 million in senior secured debt (at 12%) and the remainder will be used for general working capital and growth-driving initiatives

  • As of June 30, 2021, cash and cash equivalents of $359.2 million. Total debt outstanding was $197.6 million

Trulieve — Q2 2021 Results

  • Revenues of $215.1 million, a sequential increase of ~$21 million

  • Gross profit of $144.5 million and gross margin of 67%

  • Adjusted EBITDA of $94.9 million

  • Net income of $40.9 million

Columbia Care — Q2 2021 Results

  • Revenue: $109.7 Million, an Increase of 232% YoY, 19% QoQ

  • Adjusted Gross Profit: $47.7 Million, an Increase of 300% YoY, 26% QoQ, Gross Margin of 43%, an Increase of 737bps YoY, 266bps QoQ

  • Adjusted EBITDA of $16.4 Million, an increase of $21.1 Million YoY, 58% QoQ

  • Adjusted EBITDA Margin of 15%, an increase of 2,930bps YoY, 371bps QoQ

  • Reaffirms 2021 Revenue Guidance of $500 - $530 Million and Adjusted EBITDA Guidance of $95 - $105 Million

  • Raised $74.5M in Q2 of 6.00% Convertible Debt, reflecting the lowest priced debt in the Company’s history; Ended Q2 with Cash Balance of $149.2 Million

Flower One — Q2 2021 Results

  • Revenue of $18.3M, ahead of its guidance of $16M-$18M, up 373% Y/Y and a sequential increase of 32% compared to the first quarter 2021

  • The Company holds two of the top three flower brands in Nevada (Cookies and in-house brand, NLVO), while its various bulk and white label offerings represent more sales by volume than the top selling brands in the state

  • Adjusted EBITDA loss was $0.6M compared with Adjusted EBITDA loss of $1.9M Y/Y and an Adjusted EBITDA loss of $1.3M during Q1

  • The Company consummated the restructuring of its Convertible Debentures, significantly reducing the Company’s debt and ongoing debt service obligations for those Convertible Debentures.

  • Subsequent Events: Executive & Advisory Board Appointments — Kellen O’Keefe named as full-time CEO and Salpy Boyajian as Executive Vice President in addition to her position as the Chairman of the Board

GrowGeneration — Q2 2021 Financial Results

  • Revenue increased 190% to $125.9 million;

  • Net Income of $6.7 million up 161%;

  • Adjusted EBITDA of $14.5 million, a 229% increase;

  • 2021 Revenue Guidance Raised to $455 to $475 Million

Agrify — Second TTK Partnership with True House Cannabis. The Company signed its second Total Turn-Key Solution (Agrify TTK Solution) customer, True House Cannabis (THC). THC is a minority-owned cannabis venture and an economic empowerment applicant that has recently applied to become a fully integrated tier-two licensed cultivator in Haverhill, MA, which is located ~30 minutes outside the city of Boston. Upon regulatory approval, THC plans to open two retail locations in Haverhill, MA and Methuen, MA. Under the terms of the Agreement, Agrify will work with THC on the build-out of its 22,000 square foot facility, including the installation of 159 of Agrify’s Vertical Farming Units (VFUs) along with integrated catwalks, integrated grow racks, and pest mitigation solutions. Agrify will also provide senior financing of up to $7 million to fund the construction of the Facility, which is expected to be repaid within 30 months following the commencement of the first commercial production at the Facility. In addition, Agrify will receive fixed SaaS revenue derived from THC’s use of the Agrify Insights™ cultivation software, as well as additional production-based fees and brand licensing fees. The deal is expected to generate up to $45.3 million in revenue over the 10-year contract period.

Clever Leaves — Commitment to the University of Missouri to Provide CBD Isolate at No Cost Under Project Change Lives Campaign. This project will be one of the first sponsored research partnerships under Clever Leaves’ recently announced Project Change Lives Campaign, whereby the Company has pledged to contribute up to US $25 million retail value of medical cannabis products to any eligible U.S. organization in order to help advance scientific research into the medical benefits of cannabinoids.

Harvest Health & Recreation — Results of Annual and Special Shareholder Meeting. The Harvest Shareholders voted in favor of the following agenda items:

  • A special resolution approving the Arrangement under Division 5 of Part 9 of the Business Corporations Act (British Columbia) whereby, among other things, Trulieve will acquire all of the issued and outstanding shares of the Company, all as more particularly described in detail in the Company's definitive proxy statement/information circular dated July 12, 2021;

  • fixing the number of directors for the ensuing year at six and electing each of Steve White; Elroy Sailor; Mark Neal Barnard; Eula Adams; Scott Atkison; and Ana Dutra as directors of Harvest; and

  • appointing Haynie & Company as the auditors of Harvest for the ensuing year and authorizing the directors of Harvest to fix their remuneration


🏬Retail

Trulieve — Grand Opening of Worcester Dispensary. The Worcester dispensary will open on Saturday, August 14 and is the company's 97th store. This follows the June opening of Trulieve's first Massachusetts location in Northampton.

Superette — unveils Sip ‘N’ Smoke, a first of its kind “express” cannabis retail concept located in Toronto’s Trinity-Bellwoods park. Sip ‘N’ Smoke is a 690 sq ft kiosk serving only pre-rolls and infused beverages that are meant to be enjoyed at the park. Superette Bellwoods’ walk-up location and cafeteria-style shopping experience pushes the boundaries to demonstrate true innovation in customer journey, product curation, and retail principles for an easy-access, smaller-footprint cannabis shop. The concept takes inspiration from European outdoor kiosks known as Trinkhalle, along with classic corner and convenience stores.


🌱Product

Pantry Food Co. — Blends Functional Mushrooms, Adaptogens and Cannabis in Good Day and Nite Bites. Pantry Food Co., a functional cannabis-infused food brand created with wellness top of mind, has introduced new Superfood Bites. The new Good Day Bites and Nite Bites boldly blend nutrition and cannabis, harnessing the benefits of CBD, CBN, THC paired with functional mushrooms and adaptogens to help people live better lives. 

We tried it: Kiva Lost Farm gummies review. A good edible should offer a streamlined facsimile of the cannabis high without diluting the experience that the actual plant provides. A natural cannabis high should be multifaceted and honor the intricate, nuanced biology of the plant. If you're looking for a nuanced, powerful high from a discreet product that permeates the body and mind the way real cannabis should, look no further than Kiva Confections' Lost Farm line.

Method Man brings cannabis line to Colorado just in time for Wu-Tang’s Red Rocks show. Method Man partnered with Boulder-based Vera Cultivation to grow three strains — Sweet Grease, Free MAC and Orange Cookie Kush — under the artist’s TICAL brand. TICAL is an acronym for “taking into consideration all lives,” and also the title of Method Man’s 1994 solo album. — Denver Post


🧔People | 💻Hiring

PAX Head of Firmware Engineering (SF)

Curaleaf — Director, Key Accounts (LA)


🎙️Interviews

Alan Brochstein: The Longer Legislation Takes, The Better For Cannabis Companies


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