In the marijuana market this week, a new report revealed stats on cannabis executive salaries, quantifying the management changes that have punctuated the industry over the last year or so. 

Meanwhile, a major name in the space released disappointing quarterly results, and a company that has become a cautionary tale for industry participants got a bit of positive news.

Read on for a closer look at some of the biggest cannabis news over the last five days.

Cannabis CEO salary stats revealed in new report

Cannabis market participants have likely noticed the high turnover rate for executives in the space in the last year or so. In a new report, executive search firm Bedford Consulting Group crunches the numbers, noting that 35 percent of cannabis company CEOs were replaced in 2019.

The report, which focuses on executive and board compensation in the North American cannabis industry, also states that total CEO compensation was C$1.7 million for companies with market caps of over C$1 billion. For those with market caps under C$100 million, the amount was C$226,250. 

Brendan Kennedy of Tilray (NASDAQ:TLRY) pulled in the highest total compensation last year at over C$31 million; most of it (97 percent) was equity compensation. 

Click here to skip to the Investing News Network’s overview of Bedford’s cannabis report.  

Among other points, the report notes that 41 percent of the cannabis CEOs researched by Bedford had termination without cause agreements, while 33 percent had change of control arrangements in place.

Most termination without cause deals stipulated 12 months of salary and zero months of bonus; for changes of control the most common setup was 24 months of salary plus 24 months of bonus.

The report from Bedford includes data from 96 cannabis companies listed on TSX, TSXV, CSE, NYSE, NASDAQ and ASX. Information was collected on 449 board members and 437 cannabis industry executives, including CFOs and COOs in addition to CEOs. For context, Bedford compares figures in the cannabis space with stats from both the dietary supplements and food and beverage industries.

Canopy disappoints with latest quarterly results

Canopy Growth (TSX:WEED,NYSE:CGC) is the latest major cannabis company to share its most recent quarterly results. It released the Q4 and full-year report for its 2020 fiscal year on Friday (May 29).

According to the company, its net revenue came in at C$107.9 million for the quarter, down 13 percent from its third fiscal quarter, but up 15 percent from the year-ago period. Canopy also reported a net loss for the quarter of C$1.3 billion and an adjusted EBITDA loss of C$102 million.

BNN Bloomberg states that analysts had been expecting a net loss of about C$222 million, with revenue expected to rise about 5 percent from the prior quarter to C$128.9 million.

The reaction to Canopy’s results was quick, with the company opening at C$23.50 on the TSX on Friday — that’s compared to Thursday’s (May 28) close of C$30.57. Canopy ended Friday at C$24.21.

Canopy is one of many cannabis companies that has embarked on a turnaround recently, with CEO David Klein announcing a major strategic shift in April.

The company was in the news earlier this month when alcoholic beverage company Constellation Brands (NYSE:STZexercised warrants to purchase common shares of Canopy; its stake in the company now stands at 38.6 percent. Some market watchers saw it as a vote of confidence for Canopy.

Troubled CannTrust gets Pelham licenses back

Beleaguered marijuana company CannTrust Holdings got some good news this week when Health Canada reinstated the licenses for its Fenwick Perpetual Harvest Facility in Ontario’s Pelham area.

According to the company, it has been working for months to address regulatory deficiencies at the facility and was able to complete remediation activities on February 14.

CannTrust has been on a long and difficult journey since midway through last year, when Health Canada discovered that it was growing marijuana in unlicensed rooms at the Fenwick facility.

More turmoil for the company developed after CEO Peter Aceto was fired, and after additional illegal growing was discovered at CannTrust’s facility in Vaughan, Ontario. Recently, the company has received creditor protection and been delisted from both the TSX and NYSE.


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According to CannTrust’s Friday release, operations will now start back up at Fenwick, but because it is still waiting for its Vaughan facility license to be reinstated, the company does not know when its products will hit the market again. CannTrust made its license reinstatement submission for the Vaughan facility later than the one for the Fenwick facility.

The company also said in the release that it “remains without meaningful revenues and has terminated or laid-off a significant portion of its workforce.”

Cannabis company news

  • In a corporate update, Canopy Rivers (TSX:RIV,OTC Pink:CNPOF) announced a number of measures designed to “optimize its organizational structure, streamline operations, and preserve and maximize cash-on.” It plans to reduce its operating costs by at least 35 percent.
  • Cresco Labs (CSE:CL,OTCQX:CRLBF) shared its latest quarterly results, reporting revenue of US$66.4 million, up 60 percent from the previous quarter. The company also achieved its fourth quarter in a row of positive adjusted EBITDA, with the amount coming in at US$3.2 million.
  • TerrAscend (CSE:TER,OTCQX:TRSSF) also released its results for the most recent quarter, saying that its net sales increased 139 percent year-on-year to reach C$34.8 million. It reported adjusted EBITDA of C$4.9 million; CEO and Executive Chairman Jason Ackerman described reaching a positive adjusted EBITDA number as a “transformational milestone” for the company. TerrAscend also announced the closure of an oversubscribed US$37 million non-brokered private placement.
  • The Green Organic Dutchman Holdings’ (TSX:TGOD,OTCQX:TGODF) latest quarterly results came out as well, with revenue clocking in at $3.06 million, a rise of 27 percent from the year-ago period. According to the company, it is on track to be cash flow positive later this year, and has made “significant progress” on executing its strategic plan, which was announced last October.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.


US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

  • Company surpassed 5,600 patient prescriptions for its medical cannabis products in Colombia . Prescriptions filled increased over 450% in Q3 2020 over Q2 2020
  • Khiron declared a National Strategic Project by the Government of Colombia , simplifying and accelerating administration and processes for the Company in executing strategic projects in Colombia and for export
  • Subsequent to the quarter, the Company completed a bought deal financing on November 26, 2020 , selling 32,200,000 units at a price of $0.45 per unit for aggregate gross proceeds of $14,490,000 CAD
  • Khiron signed partnerships with 15 clinics and health centres in Colombia , extending education and sales reach further across the country
  • As a result of the Company’s Doctor Zerenia TM telehealth platform more than 25% of the Company’s medical cannabis prescriptions came from outside of Bogota , expanding geographic presence of its Colombian clinics
  • Company achieved first sales of High CBD medical cannabis through private pharmacies in Peru . Additional approval received from Peru’s drug regulatory authority for Company’s High THC cannabis, with first prescriptions anticipated in Q1 2021
  • Expanded medical cannabis E-Learning platform to UK market in partnership with Medical Cannabis Clinicians Society (“MCCS”)
  • Entered an exclusive partnership with Rappi SAS, Latin America’s largest home multi-vertical app platform to distribute the Company’s CPG product portfolio, introducing Kuida products to Rappi users across the LatAm region
  • Signed agreement to distribute the Company’s Kuida TM CBD skincare brand through pharmacy, beauty retail and online markets serving the Hong Kong territory, with first orders expected in Q4 2020
  • Prudent cash use of $5 million in Q3 2020, compared with $4 million in Q2 2020, $12 million in Q1 2020 and $10 million in Q4 2019

 Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN ), (OTCQX: KHRNF), ( Frankfurt : A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe announced today its financial results for the quarter ended September 30, 2020 . These filings are available for review on the Company’s SEDAR profile at www.sedar.com All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

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  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

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  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

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Shareholders with losses exceeding $50,000 are encouraged to contact the firm

The Law Offices of Frank R. Cruz reminds investors of the upcoming December 1, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Aurora Cannabis, Inc. (“Aurora” or the “Company”) (NYSE: ACB ) securities between February 13, 2020 and September 4, 2020 , inclusive (the “Class Period”).

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Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce the launch of preclinical research studies using psilocybin and N-Acetylcysteine (“NAC”) for the treatment of mild traumatic brain injuryconcussion (“mTBI”) with post-traumatic stress disorder (“PTSD”). The study is in collaboration with a multidisciplinary team of scientists and physicians at the University of Miami Miller School of Medicine under the lead of Michael E. Hoffer, M.D., professor of otolaryngology and neurological surgery.

NAC has been shown to be safe and efficacious in a phase I human clinical study in treating military personnel who had suffered mTBI. The initial research focus is to demonstrate the safety and efficacy of the combination of psilocybin and NAC using broadly accepted rodent models. Final results are expected in 2021. Once this is established, more specific work can examine dose response, medicine uptake, and medicine levels. The research team at the Miller School of Medicine has conducted prior studies involving NAC with mTBI and has a license from the United States Drug Enforcement Administration to conduct research using Schedule I controlled substances, which includes psilocybin.

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