Earnings Update: Cronos Confirms 96% Revenue Growth, New CEO; IIP Generates $34.3M In Q3
Cronos Touts Uptick In Revenue, Appoints New CEO
Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) revealed Thursday its consolidated net revenue for the third quarter amounted to approximately $11.4 million. That's up by $5.6 million or 96% on a yearly basis.
For the nine months ended Sept. 30, net revenue was $29.7 million. That's an 80% year-over-year increase.
The revenue increase can be attributed to the growth in the adult-use Canadian cannabis market, incorporation of the Redwood acquisition in the company's financial results, and contributions from the Israeli medical cannabis market.
The Toronto-based company opted to purchase four of Redwood Holding Group's subsidiaries last year for $300 million.
Cronos also reported a gross loss of $1.5 million in the quarter, down by 51% compared to the same period last year.
In addition, its operating loss was $41.2 million, up by 31% year-over-year.
In September, the company welcomed consumer goods industry veteran Kurt Schmidt as its new CEO, replacing Mike Gorenstein, who was appointed to Executive Chairman.
"We look forward to continuing to launch innovative cannabinoid products in Canada and to expand our portfolio of U.S. hemp-derived CBD brands," Schmidt disclosed.
Meantime, last month, the company launched a new CBD skincare brand dubbed Happy Dance. The brand is co-founded with Kristen Bell, an actress, and New York Times best-selling author.
IIP Q3 Revenue Spikes 197% YoY, Investments To Drive Growth
On the heels of entering into a sale-leaseback deal with Phoenix-based 4Front Ventures Corp. (CSE:FFNT) (OTCQX:FFNTF), Innovative Industrial Properties, Inc. (NYSE:IIPR) reported Wednesday its total revenues spiked 197% year-over-year to $34.3 million in the third quarter.
For the quarter, net income was $18.9 million. In addition, adjusted funds from operations were at roughly $27.9 million.
As of Sept. 30, the Sand Diego cannabis REIT had around $161.1 million in cash and cash equivalents and approximately $451.2 million in short-term investments.
Over the quarter, IIP purchased five properties located in Florida, Michigan, and New Jersey and provided additional funding for building out and expansion of facilities at seven properties across Illinois, Michigan, Ohio, and Pennsylvania. The total price of transactions amounted to $180.3 million.
The facilities are operated by IIP's tenants, including Columbia Care Inc. (NEO: CCHW) (OTCQX:COLXF), Curaleaf Holdings Inc. (CSE:CURA) (OTCQX:CURLF), Holistic Industries Inc., Parallel, and PharmaCann Inc., to name a few.
The most recent deals include a $6.2 million lease deal with Holistic for a property in Detroit's vicinity and a $19.6 million purchase of a property in Lakeland, Florida, under the agreement with Parallel's associate.
In July, IIP entered into long-term triple-net leases with Columbia Care’s subsidiaries for the two properties in New Jersey, on the heels of a $5.5 million deal with Curaleaf for a property in Blue Anchor.
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