CANN OR BET?
The pros and cons of cannabis investing vs. sports betting
Since regulators aren’t overly keen on legalizing either, which is the better buy: sports betting or cannabis MSOs, asks Baystreet.
The argument
- Cannabis isn’t federally legal in the US, with no signs of changing any time soon. With limited growth potential, ETFs may be the smarter way to go
- DraftKings (DKNG) is one of the better sports-betting picks, but is predicted to lose significant EBITDA in 2022, and rising costs that could outsize revenues
The takeaway
“Between the two sectors, MSOs are a better buy,” concludes Baystreet. “Without federal legalization, many MSOs are still profitable. They are not overspending or over-expanding through store openings. Their acquisitions are conservative. This will pay off for investors in the end.”
Enjoy Cannabis Daily each morning at 7 a.m.
UP AND DOWN
The highs and lows of earnings season
US MSO Green Thumb’s revenues beat its fourth quarter estimates, while Village Farms cannabis flower has maintained its top-selling spot in Ontario, Alberta and BC. Cronos, meanwhile, announced the closure of its Stayner, Ont. cultivation facility.
The highlights
- Green Thumb revenues jumped by 37.4%, thanks to new store openings, M&A and better-than-anticipated sales (Globe and Mail)
- Village Farms cannabis sales increased by 10% to $USD $34.4 million (New Cannabis Ventures)
- Cronos Group reported a CAD $133.9 million net loss, and will move all of its cultivation to its Cronos GrowCo joint venture and contract growers (The Deep Dive)
COOKIES FOR EVERYONE
Pure Sunfarms, NOYA bring Cookies concentrates north of the border
California’s Cookies brand continues its Canadian invasion, this time with concentrates made in partnership with Pure Sunfarms and NOYA, according to Financial Post.
The details
- Cookies genetics came via NOYA
- Pure Sunfarms grew the strains and processed four initial product offerings: GP20 Diamonds, GP20 Sauce, Georgia P Diamonds, and Georgia P Sauce
- All four are now available in Ontario
“The response from the Canadian market has been incredible and I’m excited to expand the Cookies product portfolio with a fire menu of strain specific concentrates,” said Cookies co-founder and CEO, Berner.
LISTED ON LSE
Summerway relaunches on the LSE
Last October, UK-based Summerway Capital announced it was buying one of the only high-THC medical cannabis growers in the UK, Vertigrow Technology, for £80 million.
Now, after relaunching its shares on the LSE’s Alternative Investment Market, the company has raised an additional £8.5 million to fulfill its goals to serve 50,000 medical consumers and generate an estimated £90 million in annual revenues via Vertigrow, reports BusinessCann.
“The opportunity to create a substantial UK based pharmaceutical business contributing to life changing treatments to chronic pain sufferers is as compelling as ever, and I would like to take this opportunity to thank the new and existing investors that are going to support us on our journey,” said Vertigrow CEO Jim Short.
