06:26:18 EDT Sun 27 Sep 2020
Enter Symbol
or Name

Login ID:

Cannabis Summary for Nov. 13, 2019

2019-11-13 21:32 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The Canadian Securities Exchange Composite Index slipped 3.07 points to 401.76 Wednesday. United States-based CBD producer Charlotte's Web Holdings Inc. (CWEB) fell $1.00 to $12.28 on 1.22 million shares after releasing its third quarter results. The drop continues a painful two weeks for the company; it has now fallen to $12.28 from $18.18 in just over two weeks. The hemp-based CBD producer lost $1.3-million (U.S.) on revenue of $25.1-million (U.S.). That compares unfavourably with the second quarter, in which Charlotte's Web earned $2.1-million (U.S.) on revenue of $25-million (U.S.). In fact, Charlotte's Web was one of the few cannabis companies that seemed able to consistently turn a profit. In 2018, it earned $11.8-million (U.S.). Charlotte's Web was again profitable in Q1 of 2019, earning $2.3-million (U.S.), before the above-mentioned $2.1-million (U.S.) profit in Q2.

One reason Charlotte's Web lost money in the third quarter is its increased spending; the CBD producer spent $13-million (U.S.) on general and administrative (G&A) expenses in Q3, up from $9-million (U.S.) in Q2 (over half of Charlotte's Web's G&A expenses are made up of wages). Indeed, the company paid $7.2-million (U.S.) to its staff in Q3, $1.7-million (U.S.) more than it paid in Q2. The company's revenue, of course, did not expand at a similar rate.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2020 Canjex Publishing Ltd. All rights reserved.

Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.