💸 The Tape

Acreage Reports Shaky Quarter

Acreage Holdings Inc. is grappling with significant financial challenges as it reports a net loss of $22.2 million for the third quarter ending September 30, a sharp increase from the $7.9 million loss recorded in the same period last year. Revenue fell by 30% to $39.6 million from $56.5 million, although it managed a modest 2% uptick from the previous quarter—offering a faint glimmer of hope in a tough market.

Despite the financial setbacks, the multi-state cannabis operator is not slowing down its expansion plans. Acreage recently launched adult-use cannabis sales in Ohio, where recreational revenue now accounts for 38% of the company's total sales in the state. With five dispensaries under The Botanist brand in cities like Akron and Columbus, CEO Dennis Curran remains optimistic. "With our strengthened financial position, we have bolstered our capacity to pursue opportunities in these markets as they continue to mature," he stated, expressing confidence in the company's strategic direction.

Looking ahead, Acreage is eyeing its pending acquisition by Canopy USA, LLC, which is expected to close by the first half of 2025. This deal would integrate Acreage into a joint venture alongside cannabis industry leaders Jetty and Wana. Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) CEO David Klein emphasized a strategy focused on "deeper, not wider" market penetration, aiming to strengthen existing markets rather than overextending resources.

In an effort to stabilize its finances, Acreage secured additional funding through an amended credit agreement, netting approximately $8 million. The agreement includes a $65 million advance from a new lender at a hefty 13.5% annual interest rate, maturing in 2027. With total liabilities standing at $419.3 million against assets of $293.1 million, the company faces a $126.1 million deficit, highlighting the urgency for effective financial management.

In the volatile cannabis industry, Acreage Holdings is experiencing notable growing pains. However, with the Canopy acquisition on the horizon and strategic moves to strengthen its market position, the company may be poised for a turnaround. Investors will be watching closely to see if these efforts will cultivate a return to profitability or if financial challenges will continue to overshadow growth prospects.

📈 Dog Walkers

High Tide to Open Third Canna Cabana in Hamilton, Ontario

High Tide Inc. is leveling up—literally turning a former GameStop into its 187th Canna Cabana store, now selling recreational cannabis in Hamilton, Ontario. This marks their third store in Hamilton and 73rd in Ontario, strategically located in Upper James Square, a hotspot with over 150,000 potential customers within a 5-kilometer radius. With few competitors nearby and surrounded by universities and research companies, High Tide is clearly aiming high. CEO Raj Grover is ecstatic, noting they've already surpassed their goal of 20 new stores this year, hitting 25 with six weeks still on the clock. While brick-and-mortar remains their bread and butter, they're teasing some e-commerce innovations that could make waves internationally. Looks like High Tide is riding a wave that's nowhere near crashing.

Avicanna Reports Q3

Avicanna Inc. is turning heads in the biopharmaceutical world with its Q3 2024 results that could make even a seasoned analyst smirk. Revenue nudged up to $6.3 million—a modest 0.34% increase—but the devil's in the details. They've pumped up their consolidated gross margin to a hearty 57% from last year's 46%, and slashed their adjusted EBITDA loss by 38% to just $293,931. They also wiped out a $1.3 million debt under a non-convertible debenture—because who doesn't love a clean balance sheet? With a shiny new U.S. patent for a deep-penetrating topical cannabinoid (say that three times fast) and a 42% jump in units sold, Avicanna is flexing its financial muscles.

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🗞️ The News

High Tide to Open Third Canna Cabana in Hamilton, Ontario

Avicanna Reports Q3 2024

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📺 YouTube

Trump, Gaetz, and Cannabis: A High-Stakes Political Move | Trade to Black

What we covered:

✅ On our latest Trade To Black podcast, Anthony Coniglio, CEO of NewLake Capital (OTC: NLCP), will join us to discuss the company’s latest earnings.

Unlike many cannabis stocks in 2024, NewLake Capital has performed strongly year-to-date, with the stock up over 20%. Well learn whether this momentum can continue heading into 2025.

Additionally, cannabis lobbyist Don Murphy will share his insights on some of this week’s appointments in Donald Trump’s administration, including the selection of Matt Gaetz as Attorney General. We’ll delve into why Trump chose Gaetz and what this could mean for the cannabis industry.

Finally, Dan from The Chart Guys will check in to explain why he’s currently investing in psychedelic stocks.