It’s time for your Daily Hit of cannabis financial news for January 12, 2021.

On The Site

KushCo

KushCo (OTC: KSHB) stock was falling over 6% to lately sell at $1.11 after the company reported the numerous challenges affecting the company. After the market closed on Monday, KushCo announced financial results for its fiscal first-quarter ending November 30, 2020, with net revenue decreasing 23% from the prior-year period to $26.8 million. On a positive note, the net loss was trimmed to $4.5 million from $12.5 million in the prior-year period. The basic loss per share was $0.03 compared to $0.12 in the prior-year period.

Many of the company’s challenges stem from the decision to right-size the business, which resulted in tighter credit terms being extended to smaller and less creditworthy customers. In addition to that, the company faced problems at the ports, where increased shipments to the U.S. combined with fewer port workers due to COVID issues causing delays.

Organigram

Organigram Holdings Inc. (NASDAQ: OGI)  released its results for the first quarter ended November 30, 2020, causing the stock to tumble in early trading. A shift to value products has hurt the company, which also warned that the second-quarter revenue could be impacted as well. The stock was falling over 7% to lately sell at $1.64.

The company delivered net revenue of $19.3 million for the first fiscal quarter of 2021 versus last year’s $25.2 million, which the company blamed on significantly lower wholesale revenue from licensed producers and a lower average selling price in the quarter.

Holiday Sales

A consumer poll conducted by vertically integrated cannabis and hemp company Glass House Group, prior to the holidays found that a significant number of customers planned on giving the gift of cannabis. With more than 630 respondents citing flower, edibles, and pre-rolls as top choices for their holiday gifts, results suggested that cannabis gifting was among Christmas 2020’s hottest consumer trends. This pointed to the mainstreaming of cannabis and it turns out the polls were true.

According to data from Akerna (NASDAQ: KERN) the Christmas holiday period (12/18-12/24) generated $427 million. Typically, the Friday before Christmas is the biggest sales day of the holidays, but this year Christmas was on a Friday. So it was the Wednesday before Christmas that got the most significant bump in sales with a 76% increase in daily sales. With $87.3 million pouring in, the Wednesday before Christmas became the third-largest sales day of the year. It was only beaten by Green Wednesday which turned in $87.4 million.

In Other News

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF), a leading announced the closing of US$10,000,000 in additional gross proceeds under its senior secured convertible facility led by funds affiliated with Gotham Green Partners together with certain additional amendments to the facility and to the securities previously issued

Planet 13

Planet 13 Holdings Inc. (OTCQB: PLNHF) has amended the terms of its previously announced offering of units of the Company. Under the amended terms of the Offering, a syndicate of underwriters co-led by Beacon Securities Limited and Canaccord Genuity Corp. has agreed to purchase, on a bought deal basis, 8,575,000 units in the capital of the Company at a price of $7.00 per Unit for aggregate gross proceeds to the Company of $60,025,000. (All figures are in Canadian dollars unless otherwise stated).

Ayr

Ayr Strategies Inc. (CSE: AYR.A) (OTCQX: AYRWF) announced today the pricing of its previously announced overnight marketed offering of an aggregate of 4,000,000 subordinate voting shares, restricted voting shares, or limited voting shares at a price of C$34 .25 per share for total gross proceeds of approximately C$137,000,000.

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) has been granted U.S. Utility Patents for its hemp genetics by the United States Patent and Trademark Office. The newly issued patents cover two of the Company’s new feminized seed hybrid hemp varieties developed under the Company’s breeding program; ‘Kirsche’ (US Patent No. 10,888,060) and ‘Lindorea’ (US Patent No. 10,888,059).  ‘Lindorea’ and ‘Kirsche’ are the world’s first two allowed U.S. Utility Patents reading on feminized hybrid hemp plants.