High Tide to merge with Meta Growth in deal to create a Canadian cannabis retailer giant
Canada’s burgeoning cannabis retail sector got a big shot in the arm on Friday after High Tide announced it would merge with fellow retailer Meta Growth. The all-stock deal, once approved by shareholders, would create a Canadian pot shop giant with 63 locations across the country and with plans to double that number by the end of next year. Much of the merged company’s focus will be in the Ontario market, which is still growing despite a slow amount of stores able to open in the province. “[Ontario] is a tough area to do business in,” High Times CEO Raj Grover told BNN Bloomberg. “Right now, the entire retail industry is focused in Ontario.”
Canada pot sales climb 7.9% in June to $201.1M: StatsCan
Canada’s cannabis retailers sold about $201.1 million of legal pot in June, according to Statistics Canada on Friday. Canada’s legal recreational cannabis industry now operates at an annual run rate of about $2.41 billion, while retail sales rose by 7.9 per cent in June from the prior month. All 10 provinces and the two territories which reported sales data showed a monthly gain in June. PEI led gains with nearly double the sales in the month. Sales in Ontario rose nearly 19 per cent, a result of increased store openings in the province, according to BMO Capital Markets.
Cresco Labs beats Q2 expectations with US$94.3M in revenue
U.S. cannabis operator Cresco Labs reported second-quarter results late Thursday, posting a 42 per cent increase in revenue to US$94.3 million, while recording US$16.5 million in adjusted EBITDA. The company still posted a US$4.7 million net loss in the quarter, which it attributed to unrealized gains and losses on mark-to-market instruments. The company’s results beat expectations and its operations are “well positioned to capitalize on current market dynamics,” according to AltaCorp Capital analyst Kenric Tyghe.
California cannabis growers at risk of disaster amid spreading wildfire
Some small Californian cannabis producers are feeling the heat from the series of wildfires ravaging the U.S. state. MJBizDaily reports that several marijuana farms have seen major damage from the fires, with one operator describing the scene as a “wasteland.” Other cannabis growers are preemptively evacuating their area before the wildfires get worse, something they say could put them out of business if their entire operations are affected.
The price of a gram of cannabis in Canada, up 3.8 per cent from the prior week, according to the Cannabis Benchmark’s Canada Cannabis Spot Index. This equates to US$2,220 per pound at current exchange rates.