Review

Two of the five states voting to legalize cannabis for adult-use, Maryland and Missouri, passed it, while three others, Arkansas, North Dakota and South Dakota, voted against doing so.

I distributed this written material to 420 Investor subscribers during the week:

• 420 Investor Weekly Review 11/04/22

• 420 Investor Model Portfolio Composition 11/04/22

• Cannabis Sub-Sector Review - 11/04/22

• Previews of Q3 Financial Reports for Canopy Growth, Charlotte's Web, Curaleaf, GrowGeneration, Village Farms and WM Technology

• Previews of Q3 Financial Reports for Ayr Wellness, Hydrofarm, Lowell Farms and Trulieve

• Previews of Q3 Financial Reports for Ascend Wellness, Aurora Cannabis (Q1), Jushi Holdings, Planet 13, urban-gro and Verano Holdings

• Ascend with TerrAscend

Here are some of this week's highlights for Focus List names:

• AAWH revenue of $111.2 million grew 18% with adjusted EBITDA of $27.8 million.
• ACB Q1 revenue fell 18% to C$49.3 million with adjusted EBITDA of -C$8.7 million.
• AYRWF grew revenue 24% to $119.6 million with adjusted EBITDA of $21.7 million.
• CCHWF announced a new dispensary in Richmond, Virginia, its fifth in the state.
• CEAD announced a partnership with Hydrobuilder Holdings to create an offering for growers.
• CGC posted revenue of C$118 million, ahead of expectations, but this was due to strength at BioSteel. The level was -10% from a year ago. Its adjusted EBTIDA of -C$78 million was worse than expected though a lot better than a year ago.
• CRON saw revenue shrink again, with sales of $20.9 million up only 3% from a year ago and beneath analyst forecasts.
• CURLF revenue of $340 million was in line with expectations, growing 1% sequentially and 7% from a year ago.
• CWBHF announced European company Stark Foods International will distribute its CBD.
• FFLWF announced six additional locations with Couche-Tard in Ontario.
• GRWG exceeded expectations in revenue due to strength in its wholesale business, with revenue of $70.9 million falling 39% from a year ago. It also acquired a hydroponics store in St. Louis.
• HYFM revenue was ahead of expectations at $74.2 million, down 40% from a year ago.
• LOWLF revenue of $8.7 million was below expectations and down 34% from a year ago, partially due to an accounting change.
• MAPS revenue of $50.5 million was close to expectations, but the adjusted EBITDA of -$9.6 million was below expectations as the company wrote down additional receivables. CEO Beals departed the company.
• PLNHF Q3 revenue fell 22% from a year ago to $25.6 million with adjusted EBITDA of $0.4 million.
• STHZF is expanding its offerings of California brands in its stores.
• TCNNF missed expectations as it reported revenue of $301 million, up 34% from a year ago.
• TLLTF will be manufacturing and distributing the Liquid Que vaporizer to Curaleaf International. The company will be bringing the Coda Signature chocolate brand to Massachusetts and then to Ohio.
• TLRY acquired a New York-based craft beer company, Montauk Brewing, for 1.7 million shares. Former CEO Brendan Kennedy sold another 350K shares at $3.78, with 6.4 million shares now held. It launched new products under CANACA, a Canadian brand.
• UGRO revenue was ahead of expectations and guidance at $12.4 million, down 32%, with adjusted EBITDA of -$2.3 million.
• VFF became the first LP to adopt hang dry at scale. Its Q3 financials were negatively impacted by its produce business. Cannabis, which represented about half of the overall revenue, saw sales of $35.5 million and adjusted EBITDA of $5.4 million. Pure Sunfarms introduced a new brand, Soar.

Please check the Focus List, (which has technical, fundamental and valuation ratings as well as a market-cap table). To help track market caps, we maintain tables for the Canadian LPs and the American cannabis operators and ancillary companies.

There were comments in over 140 discussions in the Forum. Don't miss out on this most informative part of 420 Investor! Not familiar with the the Forum? This video will help! This is a great way to track your favorite tickers, even those not on the Focus List, and to get your questions answered quickly.

Market Performance

The Global Cannabis Stock Index remained far above its all-time closing low of 11.26 from 9/30. It rose to 13.32 this Friday, lifting 4.7% during the week. This was a little worse than the 5.9% gain in the S&P 500, which is up 3.2% so far in November. The cannabis index has rallied 1.1% this month-to-date, slightly behind the S&P 500, and it has rallied 18.6% thus far in Q4. This is more than the 11.6% return in the S&P 500.

Tickers: GRWG CRON CGC TLRY PLNHF TCNNF CWBHF ACB CURLF FFLWF VFF CCHWF TLLTF HYFM LOWLF AYRWF UGRO MAPS AAWH CEAD STHZF