🌅 Canopy Seeks New CEO: A New Era Dawns?

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Good Morning and Happy Monday Benzinga family, we are Nicolás Rodríguez and Patricio Liddle, cannabis journalists and policy analysts. We’re thrilled to collaborate on this Benzinga newsletter, bringing you the news you should be reading today to stay ahead of the pulse of the cannabis and psychedelic industries.

As we kick off this week, it's time to reflect on the earnings season that just wrapped up and what it signals for the cannabis industry. We'll also dive into the big news of Canopy Growth, the Canadian cannabis giant on NASDAQ, where a leadership change could mean significant shifts for the company and its investors.

Plus, we're keeping a close eye on the political landscape in Florida and Ohio, where cannabis legalization is heating up with major implications for the industry.

But first, earnings... we took a look at the highlights of last week.

Q2 Profit Harvest 

• Acreage Holdings reported a challenging Q2 with revenue down 33% year-over-year to $39 million, and a net loss widening to $24.1 million. Despite this, the company improved its gross margin to 43% and expects Ohio's market expansion to double revenue by 2025.

• Glass House Brands set a new record with $53.9 million in Q2 revenue, driven by strong biomass production. However, the company still reported a net loss of $10 million, which was an improvement from the previous quarter.

• Schwazze saw a modest 2% revenue increase to $43.24 million, but its net loss grew to $13.9 million, highlighting ongoing financial pressures despite operational progress in retail.

• Auxly Cannabis had its best Q2 ever, with revenue up 33% year-over-year to CA$29.2 million. The company's gross profit soared to CA$ 15.9 million, reflecting a 55% gross margin and net income reached CA$ 2 million, a significant turnaround from last year's loss.

• Organigram posted a solid Q3 with a 25% revenue increase to CA$41.1 million and net income of CA$2.8 million, a significant rebound from last year's massive loss.

Now, let’s take a quick ride through the latest and greatest in U.S. cannabis from last week:

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New Markets Season: Florida & Ohio 

The political landscape in Florida is as charged as ever with conflicting polls stirring the pot ahead of November’s ballot. One poll from USA Today/Suffolk University/WSVN shows a promising 63% leaning towards Amendment 3, which aims to legalize adult-use cannabis, while another from FAU suggests a different story, hinting at a tighter race with only 56% in favor.

Amidst this polling storm, Florida's political figures are not shying away from making their stances known. Governor Ron DeSantis (R) has sharpened his stance against the amendment, recently criticizing Trulieve’s (OTC: TCNNF) alleged ‘Canadian’ ties, a claim swiftly debunked by the company’s Floridian roots. On the national front, Donald Trump’s ambiguous yet supportive comments on legalization contrast with DeSantis's firm stance, adding another layer to the political drama unfolding as November approaches.

Turning our gaze north to Ohio, the first week of adult-use sales exploded, amassing $11.5 million and setting a promising pace for an industry expected to bloom to $1.3 billion annually. This economic boon coincides with whispers of federal cannabis rescheduling, potentially within the next year.

Canadian Cannabis Giant On The Nasdaq Is Seeking A CEO. Are You Up To The Position? 

Big news from Canopy Growth Corporation: CEO David Klein is set to retire by March 2025, opening the door for new leadership as the company continues its push toward profitability. Klein, who has led the company through significant transformations, will oversee the transition while ensuring Canopy stays on course.

With a 67% jump in gross profit in Q1, Canopy is positioning itself for a strong future. Want to know what this leadership change could mean for investors and the company’s next steps?

Story In The Spotlight 

California Senate Moves Forward With Bill To Allow Cannabis Sales And Consumption At Farmers Markets By Franca Quarneti.

Our Writers Today

Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development. Currently, he lives in Argentina where conducts fieldwork for his doctoral dissertation. 

Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over fifty years of drug prohibition. Beyond his professional expertise, Patricio is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies. He is located in Buenos Aires, Argentina.

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