With major victories announced in recent days on the legalization of marijuana, pot stocks are starting to come back to life of late. Today we are highlighting a couple of pot related announcements that are moving in the small-cap space.
Schwazze, formerly operating as Medicine Man Technologies Inc. (OTCQX:SHWZ), today provided an acquisition update for Star Buds and the Company released strong preliminary unaudited financial results for its third quarter ended September 30, 2020.
As previously disclosed, Schwazze has entered into definitive agreements to purchase 14 Star Buds Colorado locations. Star Buds is one of the most recognized and successful retail cannabis operators in North America based on revenue-per-location and profit.
In preparation for the anticipated closing of these acquisitions, Star Buds has approved the Company’s proof of funds in advance of closing. This acknowledgment enables both companies to begin preparing for a fourth quarter closing of the acquisitions.
Also, in preparation of Schwazze’s third quarter 2020 earnings, the Company has released preliminary unaudited financial results. The Company anticipates revenue to be approximately $7.4M during the three months ended September 30, 2020, representing an increase of approximately 140% as compared to $5.4M quarter over quarter.
The increase can largely be attributed to the revenues associated with modest growth in the Success Nutrients business coupled with the Mesa Organics acquisition in April 2020, with Mesa Organics and Purblebee’s seeing an increase in more than 50% of average day sales prior quarter to current quarter.
Today’s announcement has perked interest in the stock with shares of SHWZ currently up 8.26% at $1.31 in late-morning trading.
In other news, Next Green Wave Holdings Inc. (CSE:NGW) (OTCQX:NXGWF) announced that in October 2020, the Company's Adjusted EBITDA* was approximately US$1,000,000 while the Company surpassed US$1.7 Million of revenues that same month. The total cash costs incurred to generate October revenue was approximately US$700k*.
Commenting on the financial update, Mike Jennings, the CEO of Next Green Wave stated, "The large revenue increase from September to October is the result of our additional product offerings, combined with higher flower yields and enhanced operational efficiencies. As a result, I expect to sustain similar revenue numbers for the foreseeable future and anticipate consistent top line growth as our branded derivatives continue to penetrate the market."
U.S listed shares of Next Green Wave have been rallying since the Spring and that rally continued with shares currently up 17.27% at $0.3049 in late-morning trading.