Ontario online pot orders hit high, keep steady amid coronavirus-related stockpiling
Cannabis stockpiling in Ontario led to some heavy sales last month, and early signs show that the demand may be sticking around. Data provided by the Ontario Cannabis Store showed daily online orders hovered in the mid-2,000 range for the first half of last month, tripling when Canada moved to restrict U.S. border access and spiking to a high of nearly 14,000 when Ontario announced pot shops would be a non-essential business, requiring their temporary closure. Two weeks later, daily sales have held steady around the 9,000 level, almost five times the amount made prior to the start of the pandemic. While it may be too early to really gauge how COVID-19 will impact legal cannabis sales over the long term, the OCS numbers provide a highly precise glimpse at how people are consuming cannabis during the pandemic.
Canopy Growth restructures operations, to exit Africa while ceasing Colombia, NY cultivation
Canopy Growth is undertaking another round of restructuring, the second such move in as many months, as it looks to turn the company’s business around following several unprofitable quarters. Canopy said Thursday that it would lay off about 85 staff. Meanwhile, the company will exit its African play, end cultivation in Colombia, close its Saskatchewan production facility, and stop hemp cultivation in New York. The moves are part of Canopy’s plans to report a charge of up to $800 million when the company reports its upcoming quarterly results. Last month, Canopy said it would shut down two major cannabis production facilities in B.C. and lay off about 500 staff.
Meta Growth to temporarily lay off eight workers, delays Q2 results due to COVID-19
Canadian cannabis retailer Meta Growth said it will temporarily lay off eight corporate employees in a move aimed at conserving cash. The company said it has $15.2 million in cash available, as well as $7 million in a debt draw-down facility earmarked for future store construction. As a result of COVID-19 and the “inefficiencies in transitioning to a work-from-home model,” Meta will delay the release of its second-quarter results to no later than May 22.
Sundial granted extension on credit facility waiver agreement
Shares of Sundial Growers led declines among major cannabis stocks on Thursday after the Calgary-based company announced its lenders amended the terms of its credit facility waiver agreements. The terms of the waivers – obtained after Sundial stated it was not in compliance with its debt covenants – are now extended 15 days to April 30. The company’s waiver is contingent on selling its U.K. operations as well as fulfilling a term sheet outlining its financing plans to meet its covenant conditions. RBC Capital Markets analyst Douglas Miehm said in a report that investors are likely to remain focused on Sundial’s liquidity concerns, while the structure of its refinancing remains uncertain.
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new — and controversial — Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.