Article by BNN Bloomberg
Cannabis sales fall in April after March stockpile
Canada’s licensed cannabis retailers sold about $180.2 million of pot in April, according to data from Statistics Canada released Friday. Pot retail sales fell slightly by 0.6 per cent from March, edging lower a month after Canadians stockpiled cannabis amid concerns of an inventory shortfall due to the COVID-19 pandemic. Eight provinces and territories reported a monthly sales decline in April, the data showed. Prince Edward Island led declines with a 64-per-cent plunge in sales. Meanwhile, sales in Ontario, the country’s biggest consumer market, fell about 10 per cent to $42.8 million. Canada’s legal recreational cannabis industry currently operates at an annual run rate of about $2.16 billion.
Albertans launch labelling lawsuit against a spate of pot companies
Aurora Cannabis, Hexo Corp. and Tilray are just three of the 15 Canadian cannabis companies named in a class-action lawsuit filed in Alberta this week, alleging the amount of THC and CBD in their products is “drastically” different from the amount that is cited on their respective labels. According to a CTV News report, the plaintiffs are seeking compensation for medicinal pot purchased as far back as 2010, and for recreational products purchased since federal legalization in October 2018.
Decibel announces first results after We Grow-Westleaf merger
Calgary-based cannabis producer and retailer Decibel announced its first-quarter financial results Friday, the company’s first after We Grow BC completed its reverse takeover of Westleaf to form the merged entity. The company said its total net revenue for the first quarter, ended March 31, totalled $5 million, up from $0.5 million from the same period a year earlier. However, the company booked an adjusted EBITDA loss of $0.4 million during Q1. Decibel also announced it amended its credit agreement with ATB Financial on May 22, in a move the company said “provides financial flexibility over the near term.”