💸 The Tape

Village Farms International, Inc. (NASDAQ: VFF) dropped its 2024 financial report card, and it’s a bit like a farmer’s market haul—mostly fresh, with a couple of bruised apples. The numbers took a $10.5 million hit from a non-cash impairment charge after some Canadian Cannabis non-flower inventory failed the quality test—oops! Strip that out, though, and Q4 Adjusted EBITDA would’ve strutted to $7 million, with the full year at $12.2 million. Not too shabby for a company that’s been pruning its way to profitable growth.

CEO Michael DeGiglio’s puffing his chest a bit, and why not? Canadian Cannabis is a market-share champ, raking in positive cash flow while others are still fumbling with their lighters. Q4 sales climbed 11% to $82.6 million, and cash flow from operations flipped from a $1.5 million loss to a $0.4 million gain—small potatoes, but trending up. The net loss shrank 66% to $8.6 million, or $0.08 per share, which beats last year’s $25.5 million. Canadian Cannabis alone saw net sales sprout 10% to C$48 million, though that pesky inventory write-down dragged gross margin to a measly 2% (33% without it).

Globally, Village Farms is blooming. International medicinal sales spiked 127%, with Germany, Australia, the UK, and newbie New Zealand gobbling up product. DeGiglio’s betting big on tripling export sales in 2025—talk about high ambitions! Meanwhile, they’re breaking ground on a swanky Phase II expansion in the Netherlands, set to quintuple production by Q4. It’s like they’re building a cannabis castle in Groningen.

Back home, Canadian operations are getting a tune-up, syncing Pure Sunfarms and Rose for efficiency. U.S. Cannabis and Fresh Produce chipped in too, helping full-year cash flow hit $10.3 million. With a tidier balance sheet and a stash of good inventory, Village Farms is feeling perky about 2025. Sure, Q4 cash flow took a hit from a double whammy of excise tax payments (C$44.8 million total), but they’re shrugging it off like seasoned growers.

In the grand scheme, Village Farms is planting seeds for a global cannabis takeover. They’re not just surviving the regulated jungle—they’re aiming to rule it. If 2025 goes as planned, they might just harvest a bumper crop of profits. Time to watch this garden grow!

📈 Dog Walkers.

Verano Dabble In Innovation

What’s Going On Here: Verano Holdings Corp. is rolling out a cannabis product blitz that’s got the industry buzzing like a vape on overdrive. With new goodies like Extra Savvy 2-gram vape carts, Savvy Strut all-in-one vapes, diamond-dusted Savvy 100 Proof pre-rolls, and (the) Essence J’s barrel-style joints, they’re hitting the sweet spot of the market’s fastest-growing categories—vapes and pre-rolls, up over 400% in 2024 alone! Verano’s flexing its innovation muscles, using slick tech and in-house talent to churn out potent, wallet-friendly options. From Illinois to Arizona, these goodies are landing at Zen Leaf and MÜV stores, proving Verano’s not just keeping up—it’s strutting ahead.

Why Should You Care: Something’s got to budge at Verano, where revenue and margins are wilting, and the share price is taking a matching tumble. I’ll give them a nod for the tree they’re climbing—those new products have a certain leafy charm—but they still feel a bit too novel, like a strain that sounds cool but might not hit the spot. Will consumers roll with it? We shall see.

AFCG Reports Fiscal 2024

Whats Going On Here: Advanced Flower Capital Inc. (NASDAQ: AFCG) dropped its 2024 earnings, and it’s a bit of a rollercoaster—think less “high” and more “hang on tight.” The fourth quarter coughed up a $1 million GAAP net loss (that’s $0.05 per share), though Distributable Earnings bloomed at $6.3 million ($0.29 per share). For the full year, they flipped the script with a $16.8 million net income ($0.78 per share) and $34.9 million in Distributable Earnings ($1.68 per share). CEO Daniel Neville’s betting on a cannabis capital crunch to snag juicy deals, keeping AFC’s wallet safe while tossing debt to seasoned operators. Dividend? $0.23, coming April 15—mark your calendars, shareholders!

Why Should You Care: It’ll be a real popcorn-worthy show watching how lenders hold up over the next few quarters, especially with Pharmacann stirring the pot a few months ago and more payment slip-ups almost certainly lurking around the corner.

🗞️ The News

📺 YouTube

NBA's Evolving Cannabis Policies: Al Harrington Discusses Why | Trade to Black

What we will cover:

✅ On our latest Trade to Black podcast, hosts Shadd Dales and Anthony Varrell will be joined by former NBA player and CEO of Viola Brands, Al Harrington, along with Avicanna (TSX: AVCN) CEO, Aras Azadian.

The episode discusses the partnership between Viola Brands, led by Al Harrington, and Avicanna, focusing on cannabis-based medicines. Harrington will highlight the changing stigma around cannabis and its benefits for athletes, noting the NBA's relaxed testing standards. The partnership aims to develop effective, THC-free CBD topicals for pain relief, backed by clinical trials.

Aras Azadian will outline how the need for scientific evidence to legitimize cannabinoid-based medicines is what will be required for CBD brands moving forward.

We’ll also learn how Al Harrington entered into the cannabis industry in 2011, where he was motivated by medicinal cannabis benefits inspired by his grandmother's experience by developing Viola Brands and Replay product line.

In addition we’ll discuss the collaboration between Avicanna and Viola Brands where they focus on developing evidence-based, THC-free products for pain management and athlete recovery, expanding into international markets.

Plus, and important topic on how the NBA is relaxing cannabis testing standards signal growing acceptance among athletes, and the importance of cannabis rescheduling, potential pharmaceutical developments, expanding research into cannabinoid applications for medical conditions like sleep, pain, and anxiety.