Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, having focused exclusively on this industry since 2007 [1] - He founded AB Analytical Services to provide independent consulting to registered investment advisors [1] - Alan is the managing partner of New Cannabis Ventures, which has been a key provider of financial information in the cannabis industry since 2015 [1] Group 2 - Alan has led the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks [2] - The group covers 20 stocks, providing investment news, earnings report previews, and post-report analyses [2] - Additional features of the group include a model portfolio, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat for questions [2]

Core Viewpoint - Nevis Brands has signed a significant distribution agreement with ZT Distribution, allowing the company to expand its market presence by placing its hemp-derived THC beverages in nearly one thousand grocery and convenience stores across several Midwestern states [1][2][4]. Company Developments - The partnership with ZT Distribution marks a pivotal shift for Nevis Brands, transitioning from primarily operating in the dispensary market to mainstream retail environments, similar to where soft drinks and groceries are sold [4]. - The company is producing a ten-milligram version of its Happy Apple beverage, which is expected to be available in the market by mid-August [6]. Market Dynamics - The demand for hemp-derived THC beverages is increasing due to the mass acceptance and destigmatization of cannabis in the U.S., particularly in states like Wisconsin, Minnesota, and Illinois [5]. - The distribution of these products in grocery and convenience stores aligns with the trend of treating low-dose cannabis beverages similarly to beer, enhancing accessibility for consumers [5][6]. Financial Performance - Nevis Brands reported modest quarter-over-quarter revenue growth in its second quarter, although currency translation issues impacted overall financial results [7]. - The company is focused on cost management and driving EBITDA growth, aiming to improve its financial model by controlling production and wholesale pricing rather than relying solely on royalties [6][8][9].

Industry Overview - The Canadian cannabis market is gaining investor attention as the U.S. cannabis industry continues to grow rapidly, with legal cannabis sales projected to reach nearly $39 billion in 2024 and potentially exceed $44 billion in 2025 [1] - Despite the growth, federal legalization in the U.S. remains stalled, but several states are advancing their own reform efforts, which is attracting interest in Canadian companies with U.S. exposure [1] Company Highlights - **Tilray Brands Inc. (TLRY)**: - Tilray has expanded significantly in the U.S., owning over 150 dispensaries in key markets like California and Michigan, and has diversified into the wellness and THC-infused beverage sectors [4][7] - The company reported a 13% increase in net revenue to $200 million, with its cannabis segment generating $61 million at a 40% gross margin, and a 132% year-over-year growth in the beverage segment [7] - Although Tilray posted a net loss, it narrowed that loss and achieved an adjusted EBITDA of $9 million, indicating improving fundamentals [7] - **Canopy Growth Corporation (CGC)**: - Canopy operates approximately 120 dispensaries in the U.S. and owns the vaporizer company Storz & Bickel, focusing on both recreational and medical markets [8][10] - The latest quarterly report showed net revenue of around C$66 million, a slight decrease from the previous year, but gross profit rose over 65% to achieve a 35% gross margin [10] - Canopy has cut its total debt by nearly 50% over the fiscal year, reflecting a strong focus on long-term sustainability and operational efficiency [10] - **Cronos Group Inc. (CRON)**: - Cronos has a growing presence in the U.S. with distribution deals supplying products to around 80 dispensaries, focusing on cannabinoid innovation [11][13] - The company reported net revenue of over $32 million, reflecting year-over-year growth, and gross profit rose to $13.7 million due to better cost management [13] - Cronos is investing in research and development to position itself for long-term success in the competitive U.S. market [13] Strategic Insights - The three Canadian cannabis companies—Tilray, Canopy Growth, and Cronos—are strategically expanding their U.S. footprint and improving financial health, making them key players to watch as U.S. legalization discussions continue [14]

Core Viewpoint - AYR Wellness Inc. has extended its Limited Waiver Agreement with senior secured note holders to July 25, 2025, allowing for continued negotiations and exploration of strategic options to strengthen its capital structure [1][3]. Group 1: Limited Waiver Agreement - The Majority Holders have provided a waiver for certain events of default related to AYR's delay in filing interim financial statements for Q1 2025 and specific payment defaults under other indebtedness [2]. - The extension does not permanently waive existing defaults but facilitates ongoing dialogue and strategy exploration to address financial obligations [3]. Group 2: Business Operations - AYR continues to operate its business normally and is evaluating growth opportunities in key markets [4]. - The company operates over 90 licensed dispensaries and offers a range of cannabis consumer packaged goods (CPG) brands [6].

Core Insights - Green Thumb Industries (GTBIF) has seen a persistent decline in its stock despite being one of the largest cannabis operators by market capitalization, primarily due to regulatory challenges and increasing competition [1][9] - The company's revenue growth appears positive, but profitability is under pressure from rising costs and pricing compression [1][10] Company Fundamentals - GTBIF's first-quarter 2025 revenue increased by only 1% year-over-year to $280 million, with a 14% growth in consumer packaged goods (CPG) partially offset by a 2.5% decline in retail sales due to price compression [3][10] - Gross profit margins fell to 51.3%, down 80 basis points from the previous year, indicating challenges in maintaining profitability [4] - Selling and operating expenses rose by 11%, and the effective tax rate increased sharply to 79% from 51% in the prior year, contributing to a significant decline in net income and earnings per share (EPS) [5] Market Conditions - The cannabis market is becoming increasingly competitive, with GTBIF facing stiff competition from peers like Aurora Cannabis, Cresco Labs, and Curaleaf Holdings, all pursuing similar strategies [7] - Competitors are expanding internationally, which provides them with an advantage over GTBIF, which remains reliant on the saturated U.S. market [8] Future Outlook - The company is expected to face continued pressure from pricing compression in maturing markets, with management anticipating flat sequential revenue growth in the second quarter and adjusted EBITDA margins likely to remain below 30% [6][10] - The investment case for GTBIF appears weak for risk-averse investors, especially given the lack of international diversification and ongoing domestic challenges [12]

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Core Viewpoint - Red White & Bloom Brands Inc. has filed its consolidated audited financial statements for the year ended December 31, 2024, and is working to finalize its interim financial statements for Q1 2025 after a delay that resulted in a cease trade order [1][2][3]. Financial Performance Summary 2024 Fourth Quarter ("2024-Q4") Results - Revenues for 2024-Q4 were $18.7 million, an increase of $2.8 million from restated 2023-Q4 revenues of $15.9 million [7]. - Gross profit for 2024-Q4 was $5.4 million, a decrease of $5.1 million from restated 2023-Q4 gross profit of $10.6 million [7]. - Operating expenses totaled $9.1 million for 2024-Q4, down $3.7 million from restated 2023-Q4 operating expenses of $12.8 million [7]. - EBITDA for 2024-Q4 was $6.3 million, an increase of $97.6 million compared to restated 2023-Q4 negative adjusted EBITDA of $91.3 million, which included $94.6 million in non-cash impairments [7]. Fiscal Year 2024 ("2024-YTD") Results - Revenues for 2024-YTD were $80.2 million, reflecting a $10.6 million increase compared to restated 2023-YTD revenues of $69.6 million [7]. - Gross profit for 2024-YTD was $28.4 million, an increase of $3.4 million from restated 2023-YTD gross profit of $25.0 million [7]. - Operating expenses for 2024-YTD were $40.4 million, an increase of $9.4 million compared to restated 2023-YTD operating expenses of $31.0 million [7]. - EBITDA for 2024-YTD was $10.8 million, a net increase of $99.76 million compared to 2023-YTD negative adjusted EBITDA of $89.0 million, which also included $94.6 million in non-cash impairments [7]. Company Overview - Red White & Bloom Brands Inc. is a multi-state cannabis operator focusing on major U.S. markets, including California, Florida, Missouri, Michigan, and Ohio, as well as Canadian and international markets [6].

Core Viewpoint - Red White & Bloom Brands Inc. has filed its consolidated audited financial statements for the year ended December 31, 2024, and is working to finalize its interim financial statements for Q1 2025 after a delay that resulted in a cease trade order [1][2][3]. Financial Performance - For Q4 2024, revenues were $18.7 million, an increase of $2.8 million compared to Q4 2023 revenues of $15.9 million [8]. - Gross profit for Q4 2024 was $5.4 million, a decrease of $5.1 million from Q4 2023 gross profit of $10.6 million [8]. - Operating expenses for Q4 2024 totaled $9.1 million, a decrease of $3.7 million compared to Q4 2023 operating expenses of $12.8 million [8]. - EBITDA for Q4 2024 was $6.3 million, an increase of $97.6 million compared to the negative adjusted EBITDA of $91.3 million in Q4 2023, which included $94.6 million in non-cash impairments [8]. - For the fiscal year 2024, revenues were $80.2 million, reflecting a $10.6 million increase compared to $69.6 million in 2023 [8]. - Gross profit for the fiscal year 2024 was $28.4 million, an increase of $3.4 million from $25.0 million in 2023 [8]. - Operating expenses for the fiscal year 2024 were $40.4 million, an increase of $9.4 million compared to $31.0 million in 2023 [8]. - EBITDA for the fiscal year 2024 was $10.8 million, a net increase of $99.76 million compared to the negative adjusted EBITDA of $89.0 million in 2023, which also included $94.6 million in non-cash impairments [8]. Company Overview - Red White & Bloom Brands Inc. is a multi-state cannabis operator focusing on major U.S. markets, including California, Florida, Missouri, Michigan, and Ohio, as well as Canadian and international markets [6].

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