Earnings Update: Aleafia Posts Net Loss, Harvest Health Raises Target Revenue, TGOD Hires New CEO

Aleafia Posts Q3 Net Loss, Optimistic About Next Quarter

Aleafia Health Inc. AHALEAF posted third-quarter financial results. Net revenue hovers $4.97 million, compared to revenue of $4.96 million in the same quarter of 2019.

The cannabis company also posted an adjusted EBITDA loss for the quarter of $5.65 million, versus an adjusted EBITDA loss of $2.5 million in the corresponding quarter of 2019.

For the three-month period ending Sept. 30, Aleafia had a net loss of $19.76 million, which stands against a net income of $1.86 million in the same period of the prior year. The company also noted that the net loss could be attributed mostly to “the non-cash $14.3 million adjustment of saleable inventory to net realizable value during the quarter."

Aleafia anticipates for the sale of packaged cannabis products in the adult-use and medical channels to account for the majority of its cannabis revenue.

During the quarter, Aleafia launched AssureHome Delivery Same-Day Service, gaining authorization to start cannabis sales in Germany, and launching Cannabis 2.0 portfolio with 510 Vape Cartridges.

"We expect to have our strongest quarter to date in Q4 2020 as we progress towards significant sequential growth in medical, adult-use, wholesale and international cannabis sales," stated Aleafia Health CEO Geoffrey Benic. "The strategic path we've executed upon, from building out facilities, to receiving three major licences in 2020, to formulating new products, is now bearing fruit." 

Harvest Health Posts Positive Adjusted EBITDA

Arizona-based cannabis company Harvest Health & Recreation Inc. (CSE: HARV) HRVSF reported Tuesday its third-quarter total revenue of $61.6 million, up by 86% from the same period last year.

For the same quarter, the company posted a net loss of $2.1 million, which compares to a net loss of $39.1 million.

Harvest achieved positive adjusted EBITDA in the quarter of $10.5 million, versus an adjusted EBITDA loss of $10.9 million in the corresponding quarter of 2019.

During the third quarter, Harvest opened two new dispensaries, one in Phoenix, Arizona, and the other in Cranberry Township, Pennsylvania.

What’s more, the company revised its outlook, raising target revenue for the full 2020 to more than $225 million, from the previous $215-220 million range.

"Our third quarter results demonstrate further progress toward our primary goal of returning to profitability through revenue growth, cost controls, and investments in our core markets of Arizona, Florida, Maryland, and Pennsylvania," stated CEO Steve White. "We are focused on preparing for recreational cannabis in Arizona in 2021 and continuing to build on this positive momentum as we execute on our plan."

The Green Organic Dutchman Posts Q3 Earnings, Leadership Changes

Organically grown cannabis company, The Green Organic Dutchman Holdings Ltd. TGODF announced third-quarter financial results with revenue of $5.71 million — up by 119% over the same quarter of 2019.

It also posted a net loss of $76.24 million, which can be mostly attributed to a non-cash impairment charge of $67.84 million that made no direct impact on the company’s liquidity.

Furthermore, The Green Organic Dutchman revealed leadership changes, such as Brian Athaide resigning from the CEO position, upon which the company’s CFO, Sean Bovingdon, has been named Interim CEO. Michel Gagné, the company’s Vice President of Operations, has also been hired as COO.

"We saw encouraging numbers in October as we sold more flower, additional RIPPLE and tea variants, and launched hash in Quebec," stated Sean Bovingdon, Interim CEO of TGOD. "We are looking to build on this growth while focusing on financial discipline throughout the Company."