Industry Overview - The cannabis industry is experiencing significant growth globally, with legal cannabis expanding rapidly [1] - Despite the industry's growth, marijuana stocks have not seen comparable success, but there is potential for profitability in the future [1][2] - Companies are expanding operations and forming partnerships to meet increasing consumer demands [1] Market Sentiment - There is a cautious sentiment among investors regarding the long-term advantages of owning marijuana stocks, as the sector has not shown a consistent recovery [2] - Short-lived trading jumps have made it difficult for investors to capitalize on profits, leading to speculation about future performance [3] Company Highlights - **GrowGeneration Corp.**: Operates retail hydroponic and organic gardening stores in the U.S. and has entered a distribution agreement with V1 Solutions to expand into the European Union and Costa Rica [4][6] - **Hydrofarm Holdings Group, Inc.**: Manufactures and distributes hydroponics equipment in the U.S. and Canada [7] - **The Scotts Miracle-Gro Company**: Engages in the manufacture and sale of gardening products and has reaffirmed its fiscal year 2025 guidance [10][12] Financial Performance - The Scotts Miracle-Gro Company reported a decrease in net sales to $40.5 million from $54.2 million, with a gross profit margin decline to 17.0% from 20.2% [13] - The company experienced an increase in net loss to $14.4 million compared to $12.6 million, and adjusted EBITDA was $(2.4) million compared to $0.3 million [13] - U.S. consumer net sales showed low single-digit growth, with a non-GAAP adjusted EBITDA forecast of $570 million to $590 million [14]

Financial Data and Key Metrics Changes - Gross investment income for Q1 2025 was $11.9 million, a decrease from $12.7 million in Q4 2024 [11] - Net investment income was $7.6 million or $0.34 per share, compared to $8.0 million or $0.35 per share in the previous quarter [12] - Net expenses were $4.3 million, slightly down from $4.4 million in the last quarter [12] - Net assets at quarter end were $301 million, with NAV per share at $13.19 [12] Business Line Data and Key Metrics Changes - The company has 31 portfolio companies, with 21% of the portfolio invested outside of cannabis [12] - The average debt position size is 3% of the debt portfolio, with 76% of the portfolio being floating rate [13] - The gross weighted average yield on company debt investments is approximately 16.6% [13] Market Data and Key Metrics Changes - The company has originated $52.8 million in gross fundings since October 1, 2024, with $32.3 million committed and $20.8 million funded in Q1 2025 [7] - The pipeline includes approximately $590 million in potential debt transactions across 35 unique companies, with $462 million in cannabis opportunities and $128 million in non-cannabis investments [16] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and other underserved markets, aiming to deploy capital with differentiated risk-reward profiles [5] - The strategy includes maintaining a disciplined underwriting approach and being selective with borrowers to build durable investment portfolios [19] - The company aims to grow its dividend component as it scales its platform, having declared a total of $1.27 in dividends over the last four quarters [8] Management's Comments on Operating Environment and Future Outlook - Management believes the outlook for common sense reforms in the cannabis industry is positive, but the timing remains unpredictable [10] - The company is positioned well for 2025, focusing on proven operators and strong markets to support growth initiatives [10] - Management emphasizes a long-term view of partnership building with operators, regardless of broader market conditions [23] Other Important Information - The company has no non-accruals compared to an industry average of 3.9% [7] - A new $100 million credit facility was closed during the quarter, providing ample liquidity for future investments [14] Q&A Session Summary Question: General macro outlook and deployment readiness - The company maintains a focus on individual state markets rather than the broader U.S. cannabis industry, allowing for disciplined deployment of capital [23][25] Question: Pipeline activity comparison to previous quarters - There is no significant difference in the ratio of cannabis to non-cannabis investments, with fluctuations being ordinary [26] Question: Flexibility to increase the credit facility - The company sees room to grow its senior secured credit facility and add modest unsecured notes in a disciplined manner [27] Question: Debt leverage threshold - The company expects to remain well below industry averages for debt leverage in the foreseeable future [28] Question: Dividend growth expectations - The company does not provide specific dividend guidance but will distribute nearly all of its income by the end of the year [30]

VANCOUVER, British Columbia, May 01, 2025 (GLOBE NEWSWIRE) -- LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF) (the “Company” or “LEEF Brands”), one of California’s largest and most sophisticated cannabis companies, today announced its financial results for the first quarter ended March 31, 2025, and full-year results for the year ended December 31, 2024. First Quarter 2025 Financial Highlights vs. First Quarter 2024: Revenue of $9.4 million, up 19% from $7.9 million, reflecting strengthening market demand and i ...

Alan Brochstein, CFA, is one of the first investment professionals to focus exclusively on the cannabis industry. Alan got his start as a financial professional in the securities industry in 1986, managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent consulting to registered investment advisors. He is also the managing partner of New Cannabis Ventures, a leading provider of relevant financial information in the cannabis industry si ...