Cannabis

DCM’s reported revenue in Q4/2021 of $60.9 million which was slightly higher than the revenue in Q4/2020. It was the first time since the pandemic started that quarterly revenue improved year-over-year. The Company continues to see “return to work” indications and believes that revenue will continue to trend higher in 2022. [more]

The U.S. House of Representatives passed the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act on March 25th and that initially led investors hoping for quick passage of a Senate bill to match the bill passed in the House. Last week, however, Senate Majority Leader Chuck Schumer said he would not be introducing the Senate’s version of the House’s act, called the Cannabis Administration & Opportunity Act (CAOA), until toward the end of April. [more]

We have written a 19-page Update Report on DCM. The communications and marketing solutions provider continues its “Digital-First” strategy and leveraging its existing platforms for direct-to-print applications, marketing and workflow management, and DAM solutions. Revenue was $56.9M, up 3.1% from $55.2M in Q2/2021. Adjusted EBITDA was $9.4M and improved cash flow reduced debt in the quarter by $2.8M. We are maintaining a Buy rating and increasing the one-year price target to $3.75/share from $3.60/share. [more]

The cannabis company, Leafly Holdings has announced to go public in a SPAC deal with Merida Merger Corp. I, a company sponsored by Merida Capital Holdings. The deal is expected to raise up to $161.5M in cash and should help Leafly expand its business in newly legalized markets. [more]

DCM is a Canadian-based communications and marketing solutions provider that offers comprehensive online and offline communications and marketing solutions to businesses. The Company is implementing a “Digital-First” strategy and leveraging its existing platforms for direct-to-print applications, marketing and workflow management, and Digital Asset Management (DAM) solutions. We are Initiating Coverage on DCM with a Buy rating and one-year price target of $3.60/share. [more]

The cannabis industry is dominated by the big four companies and these companies have emerged as the industry leaders. They benefit from factors including access to the lowest cost of institutional capital, scale, proven management talent, track records, strong balance sheets, and licensing credibility. [more]

After its public listing last October, shares in Canbud appear poised to move higher as it executes on its three-pronged business model: 1) Hemp for cannabinoids (CBD) production, (2) Mushrooms for both psychedelic pharmaceuticals and non-psychedelic nutraceuticals, and (3) Plant-based products. [more]

The cannabis industry recently saw heightened activity as the United States moved closer towards federal regulation while several M&A deals were announced. In addition, the cannabis edibles market sharply increased as more consumers tried edibles for the first time. [more]