A recently conducted analysis has determined that people who had used psychedelics at some point in their lives experienced less psychological distress. The analysis also revealed that this link was highest in single people and significantly reduced in individuals who were married, divorced or widowed.
Psychedelics are psychoactive drugs that are known to alter an individual’s mood and perception, among other things. These drugs often induce introspective experiences and powerful auditory and visual hallucinations.
Different studies have found positive links between psychedelic substances and health, with some highlighting the drugs’ potential therapeutic effects in the treatment of some mental-health conditions.
For this recent study, Sean M. Viña, the study’s author, focused on the link between psychedelic use, distress, marital status and size of households. He theorized that married people who had previously tried psychedelics experienced less distress while individuals living in bigger households would have higher distress levels. He also hypothesized that psychedelics’ positive effects on distress would be extremely low among people in larger households.
Viña began by analyzing data obtained from the National Survey on Drug Use and Health, centering on data about distress levels, use of psychedelics, household size and marital status. His findings demonstrated that married individuals had lower distress levels in comparison to divorced and single persons, while widowed individuals had similar levels of distress to married people.
Additionally, divorced persons had very high drug-use levels across several substances of all groups surveyed, including cocaine, tobacco, inhalants, tranquilizers, heroin, cannabis and pain relievers. They had also begun drinking at earlier ages in comparison to the other groups.
People who admitted to using psychedelics reported that they experienced lower levels of psychological distress. The researcher observed that the link was still present even after household size and marital status was accounted for.
In his conclusion, Viña stated that his findings confirm the forecasts that lifetime use of classic psychedelics worsened unpleasant consequences of household sizes for household heads who were widowed, married or divorced. He added that his findings also suggested that bigger households were, regardless of marital status, linked to harm.
Further, he asserted that while widowed users of psychedelics could gain some benefit from living with other individuals, these benefits diminished as the size of household grew.
This research gives insight on the association between psychological distress and use of classic psychedelics. The analysis’ findings were reported in “PLOS ONE.”
Whether or not those family dynamics exert a significant influence on the efficacy of the treatments being developed by entities such as Seelos Therapeutics Inc. (NASDAQ: SEEL) remains a question that clinical studies could answer in future.
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(CNW) Toronto — Ghost Drops, a leading Canadian cannabis brand, is poised to disrupt the global cannabis market via an exclusive partnership with SOMAÍ Group, an established international cannabinoid biopharma company with premiere distribution channels. Per the supply and distribution agreement, Ghost Drops-branded products will initially be rolled out across Europe, the United Kingdom, and Australia. The deal perfectly positions the company to capture market share in cannabis markets across Europe and beyond.
The partnership allows SOMAÍ Group, a leading global brand with the most robust pipeline of innovative cannabis-based products, to import high-quality Ghost Drops-branded cannabis for medical use in several international markets. All products bearing the Ghost Drops branding will be meticulously curated by the Ghost Drops team and cultivated in Canada by the brand’s exclusive craft producer partners. The partnership rollout begins in Germany, subsequently bringing Ghost Drops cannabis products into emerging markets such as in the rest of Europe, the U.K., and Australia. Taken together, the target regions represent massive growth potential as local legalization efforts progress.
“We seek highly successful, well-positioned cannabis companies to prioritize for global brand partnerships, and Ghost Drops is precisely that,” said Tom Flow, managing director of SOMAÍ Group’s subsidiary RPK Biopharma. “Together, SOMAÍ Group and Ghost Drops will introduce European, U.K., and Australian markets to top-tier Canadian cannabis products, bringing quality relief to patients internationally.”
Ghost Drops has seen tremendous success within the Canadian market, cultivating a dedicated following of loyal consumers since pre-legalization. Ghost Drops’ launch into the regulated market was met with extreme excitement and has been credited for transitioning many illicit consumers into the legal space. Years later, the brand still holds the title of the two fastest-selling SKUs in Canadian history and the two fastest-selling SKUs in the premium category. With a demonstrated ability to drive hype, awareness, and sales, Ghost Drops is poised to replicate these successful strategies in foreign markets.
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“We are excited to expand the Ghost Drops brand globally and look forward to working with the SOMAÍ team to rapidly scale in the European market,” says Ghost Drops CEO Gene Bernaudo.
“As a premier legacy-to-legal cannabis brand, Ghost Drops continues to pave the way for independent Canadian cannabis brands to expand globally,” said Bernaudo. “With a proven formula and turnkey business model, we have an opportunity to establish formidable roots to dominate the European and new emerging recreational markets.” Having already established the brand as a top-selling brand in the Ultra-Premium category domestically, Ghost Drops is committed to the same level of quality as we look to expand internationally.”
Germany presents a notable expansion opportunity for Ghost Drops and SOMAÍ Group, especially following the recent Cannabis Decriminalization Act by the government on April 1. This legislation removes cannabis from Germany’sNarcotics List, allowing adults to possess up to 25 grams for personal use and grow up to 3 plants at home. Cannabis reclassification also impacts the medical prescription of cannabis-containing medicines. Now, medicinal cannabis can be prescribed on a regular prescription — an essential change for patients that enables easier access to cannabis therapy.
SOMAÍ Group brings extensive experience with the regulatory and cultural movements of European markets, including Australia, to the Ghost Drops distribution partnership. “A global regulatory change is taking place, and SOMAÍ’s concentration on direct sales and distribution in all major countries will allow for the greatest reach of the Ghost Drops brand,” said SOMAÍ Group founder and CEO Michael Sassano. “Ghost Drops is an outstanding legacy brand that deserves to be at the forefront of the next big international cannabis boom. SOMAÍ Group couldn’t be more thrilled to bring Ghost Drops’ full product lines to the global medical cannabis world.”
Ghost Drops has continued to expand and innovate since the company’s transition to the regulated market in 2018. Its story and branding are unique and will undoubtedly resonate with consumers in emerging markets. This international expansion is a natural subsequent step in the brand’s progression, marking a significant moment for Ghost Drops and bringing true cannabis culture to a worldwide stage.
(CNW) Toronto and Gail Yam, Israel – IM Cannabis Corp., a leading medical cannabis company with operations in Israel and Germany, announces the termination of the preliminary term sheet signed on February 13, 2024 with Kadimastem Ltd a public company traded on the Tel Aviv Stock Exchange under the symbol (TASE:KDST).
“After the April 1st legalization in Germany, we are seeing that the accelerated growth in April is continuing through May. We believe this is just the beginning, as we anticipate that Germany could become one of the most significant legal markets in the world,” said Oren Shuster, CEO of IMC. “We are continuing to explore all options, focusing on providing the best value for our shareholders.”
According to the separation agreement signed with Kadimastem, as a result of this termination, the loan provided to IMC Holdings Ltd by Kadimastem in a total amount of 300,000$ will be repaid together with 9 per cent annual interest accrued thereon, in three installments by July 31st, 2024.
In connection with the filing of the NOI, the Company has entered into an agreement with its existing senior creditor, Evergreen Gap Debt GP Inc, as Agent for and on behalf of Evergreen Gap Debt LP and Gap Debt III LP, pursuant to which the DIP lender will advance a debtor-in-possession loan to the Company in the amount of up to $580,000 to generally fund working capital needs and expenses related to the NOI proceedings. The DIP Loan is conditional on, among other things, approval from the Ontario Superior Court of Justice.
The Company intends to seek an order from the Court approving the terms of the SISP and DIP loan. The Company’s objective is to complete the SISP by the end of July 2024. It is important to note that the Company is not bankrupt. If the DIP agreement is approved, the Company believes it has sufficient resources to fund its operations during the SISP and its stores will remain open for business during that time, subject to any restructuring steps that the Company may take during the process. Pursuant to the BIA, upon filing the NOI, there is an automatic stay of proceedings in respect of all creditor claims and actions against the Company that will protect the Company and its assets from the claims of creditors and others during the pendency of the proposal proceedings.
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Anyone interested in obtaining more information about the SISP should contact the Proposal Trustee at: Nerina Jahja – njahja@brileyfin.com.
ShinyHealth also announces that its wholly-owned subsidiary, mihi Health and Wellness Inc., has received, in connection with a guarantee provided by mihi in favour of its wholly-owned subsidiary that owns the Cotton Mill Pharmacy, a demand from the lender to such subsidiary for immediate payment of unpaid loan amounts. The Cotton Mill Pharmacy is currently temporarily closed. ShinyHealth is reviewing the merits of this demand and financial circumstances of mihi.
As a result of the NOI and financial resource constraints, ShinyHealth also announces that it is expecting not to file its annual financial statements and accompanying management’s discussion and analysis for the fiscal year ended January 31, 2024 by the prescribed deadline of May 30, 2024. ShinyHeath’s ability to complete the audit and filing of its annual financial statements and related management’s discussion and analysis will be dependent upon the results of the NOI process.
As a result of the prior resignations of Meris Kott and Jonathan Hemi, the remaining directors of ShinyHealth are Brad Kipp (non-independent) and Lyn Christensen (independent), and the remaining officers are Brad Kipp (Interim CEO) and Dominic Lavallée (Interim CFO). As a result of ShinyHealth currently having only two directors, it does not currently meet the minimum number of directors required under applicable law as a reporting issuer or pursuant to the policies of the TSX Venture Exchange. In light of this, ShinyHealth has been advised by the TSXV that trading of its shares will remain halted and failure to remedy the deficiency within 10 business days will result in a suspension in trading of the ShinyHealth shares. ShinyHealth confirms that its transfer agent, Computershare, continues to act as its transfer agent.
Humans have been using cannabis for thousands of years, but it wasn’t until the 1970s that we started to focus on plants producing higher and higher amounts of THC. It wasn’t until 1964 that we even knew what THC was when the molecule was first isolated by biologist Dr. Raphael Mechoulam.
Before that, all we knew was that cannabis affected us in a seemingly positive way — whether it was eaten or inhaled — and researchers weren’t sure if it was one chemical or a series of compounds causing the psychoactive effects.
According to Health Canada, THC levels in cannabis have increased “from an average of (3%) in the 1980s to around 15 (%) today.”
“Legalization in Canada and also in the U.S., the state-by-state legalization, has led to a lot of competition and that competition has resulted in improvements in agricultural practices and growing.”
Jon Page, Adjunct Professor, University of British Columbia
When cannabis was first legalized in 2018, around 20% THC was considered strong, but today, that number has jumped to around 30%. Some pre-rolls are now being marketed as having upward of 44% THC.
The increase in THC happened in phases over the last five decades, says Jon Page, a well-known botanist and plant biochemist who is also an adjunct professor at the University of British Columbia.
“At a certain point (in history), drug production in Lebanon and Afghanistan and India started to value THC because people were after that effect,” he said. “So there was probably this kind of low-level selection for higher THC, and that would take you up to about the 1970s. Then the globalization of cannabis kind of started, when you had hippie travellers on the Silk Road going to India and taking seeds back to wherever they were from.
“This led to the ascendency of Humbolt County, where the hippie growers in Northern California and other places too, like Amsterdam, were bringing seeds back and they were selecting seeds from places that had high potency. Then they were starting to cross-breed from there.”
Page spent several years in the cannabis sector and is a former chief science officer of Aurora. Today, he runs the Kelp Rescue Initiative in BC, a program he launched.
The push for more and more THC, says Page, was primarily the result of producers following consumer behaviour.
“I’ve met some of these guys in California who brought seeds back and started growing, and this was when people would smoke a joint and say, ‘Whoa, there’s something really there,’ they really got high,” he said.
“They didn’t need labs to tell them that, and they started crossing things and consuming different outputs from the crosses and selecting stuff.”
Along with an increase in black market growing during the 1970s came an increase in law enforcement, with the U.S. government launching the War On Drugs. That led to state policies like CAMP — the Campaign Against Marijuana Production — in California, which forced growers to take countermeasures.
One of those countermeasures was to move growing underground, leading to the advent of hydroponics and indoor grow lights during the 1980s, 90s and early 2000s.
“That pushed the plant, it had the genetic potential before, then suddenly the agricultural potential was met,” said Page. “And this was the age of BC Bud and all sorts of other places in the world that were growing high-quality cannabis, so that pushed the THC levels up into the 20-25% range.”
The latest phase is the one we see post-legalization, with investors involved.
“Legalization in Canada and also in the U.S., the state-by-state legalization, has led to a lot of competition and that competition has resulted in improvements in agricultural practices and growing,” said Page.
So how much THC can a cannabis plant produce?
One way of thinking about it is THC and other cannabinoids are found on cannabis rather than in cannabis.
Cannabinoids are produced in trichomes (from the ancient Greek word for hair) of the cannabis plant, which mainly grow on buds formed during the flowering stage.
During the first weeks of a plant’s life cycle, it grows in what is known as the ‘vegetative stage.’ During this time, it will develop its tell-tale five-point leaves, but not cannabinoids like THC and CBD.
That happens when the plant switches from the vegetative stage to the flowering stage, which is caused by a reduction in the number of hours of light it receives. Cannabis plants are often given 18 hours of light and six hours of dark during the vegetative stage when grown indoors, then that is switched to 12 hours of light and 12 hours of dark, causing it to begin flowering.
A good rule of thumb is:
0-5% THC is negligible
5-10% THC is low
10-15% THC is medium
15-20% THC is strong
20-plus% THC would be very strong.
Saying that cannabis is 10, 20, or 30% THC means that after the bud is dried, that percentage of its overall weight is THC.
Most botanists and plant scientists will tell you the upper limit for THC in a cannabis plant is about 30%, and the reason comes down to simple biology and logistics, says Prof. Lacey Samuels from the botany department at UBC.
“I think it’s worthwhile to consider, if you have 25% THC in a flower, what’s the other 75%?” she said.
“You’re always going to need a certain amount of cellulose and pectin and wax that wraps around the resin droplet in the trichome to keep it together in the plant … You need to have the rest of the flower to support it to do the photosynthesis, all that stuff.”
Trichomes have disc cells inside, where the cannabinoids are produced, and then there is a cap on top, “which looks like the top of a mushroom,” said Samuels.
“The breeding that’s gone on over the last 50 years probably has led to a really high density, compared to what would have been found back 5,000 years ago when the plant was evolving to keep off the bugs. It’s like any other kind of breeding.”
It’s the higher density of the trichomes that gives cannabis higher amounts of THC.
How much do consumers know about THC?
David Hammond, a professor in the School of Public Health at the University of Waterloo, says polling done across North America suggests about three-quarters of cannabis users have no idea what the THC level is in the products they consume.
Of the quarter who say they know, Hammond says most of those people don’t know. “They’ll give us numbers from zero to 100% for flower,” he said.
“People are a little bit better for oral liquids (oils) as some of them are more on the medical side … but in general, it’s not very good. Interestingly, for edibles, because we have that limit of 10 milligrams per package, that makes it a little easier for folks.”
As a result, most consumers “don’t even have a general frame of what’s low, medium or high,” when it comes to THC, he said.
“We’ve asked this many different ways, these are big, national surveys with tens of thousands of people. For most people it’s like throwing darts at a dartboard whether they think 30% in flower is medium, high or low.”
Cannabis being illegal for nearly a century in Canada meant people had to get it from black market dealers and other surreptitious sources, where there was no testing or quality control.
Rather than putting THC levels on packaging, Hammond would like to see something like a “THC unit” identified, so people can better understand how much to consume for a desired effect. It would be similar to alcohol, he said, where even though beer, wine and spirits have different percentages, most people understand that a bottle of beer is equivalent to a glass of wine or shot of whisky.
“The idea is to do something like that for cannabis products, so the experience is always going to be different but you have some way of comparing an edible versus flower versus a concentrate,” said Hammond.
“There’s some principles there. One principle is if you think of one standard drink, there are maybe people who have never had alcohol and if they have one drink they feel kind of drunk, but for most people, they might feel the effects, but it’s below the threshold where you feel intoxicated. We probably want the THC level at the same point. The idea is to get units or numbers that mean the same thing across products and it just gives consumers a basis to start with.”
More than a third of Canadians aged 18-24 reported using cannabis in 2023, according to Statistics Canada, along with 38.4% of those aged 24-44 and 15.5% of those 45 and above.
Canadians spent $4.7 billion on legal cannabis products in 2023, with 64.9% of that on dried flower.
The Alberta Government is looking into the impact of cannabis legalization on young people in the province.
The provincial government made their announcement on May 27, saying that now that more than five years have passed since cannabis was legalized in Canada, Alberta’s government is working with drug policy experts, doctors, and professors to examine the impacts of cannabis on people 25 and under.
The provincial government says it is providing a one-time grant of about $280,000 to conduct a review of the available evidence and data regarding the impacts of cannabis use on youth, in coordination with experts from the University of Alberta, University of Calgary, Dalhousie University, Harvard Medical School, and the University of Birmingham.
“We owe it to young Albertans and their families to make sure we fully understand the effects of legal cannabis,” says Dan Williams, Minister of Alberta Mental Health and Addiction. “We’re proud to bring together this group of respected health experts to provide insight and advice as we continue to navigate this evolving area of health care.”
The research team will report to the Minister of Mental Health and Addiction, and the work is expected to be completed in summer 2024. Alberta has the lowest age of access in Canada at 18. All other provinces and territories have an age of access of 19, except for Quebec, which has set the age of access at 21.
The government says the review could potentially inform future policy changes in Alberta and could recommend policy changes to ensure children and youth are protected from the harms of cannabis.
“As cannabis products have become more widely available, we must continue to evaluate their health impacts—particularly on young people whose brains are still developing,” says Blair Gibbs, a former advisor to the Prime Minister of the United Kingdom and policy consultant who is advising on the project. “I look forward to working with leading experts from around the world to closely examine the evidence and help inform decisions in the best interest of Albertans.”
In addition to Gibbs, the province lists Dr. Sebastian Straube, professor and division director, Division of Preventive Medicine, Department of Medicine, University of Alberta, Dr. Philip Tibbo, professor in the Department of Psychiatry with a cross-appointment in Psychology and Neuroscience at Dalhousie University, Dr. Charl Els, fellowship-trained addiction psychiatrist and occupational physician, clinical professor, Department of Psychiatry and Medicine, University of Alberta, Dr. Emily Hennessy, associate director of Biostatistics, Recovery Research Institute and assistant professor, Harvard Medical School, Dr. Victoria Burns, associate professor, University of Calgary, and director, University of Calgary Recovery Community and Recovery on Campus Alberta, and Dr. Ed Day, United Kingdom government’s drug recovery champion and clinical reader in Addiction Psychiatry at the Institute for Mental Health at the University of Birmingham.
The government of Alberta says it spends more than $1.55 billion annually on addiction and mental health care and supports, including prevention, intervention, treatment and recovery.
A recently published study looking at cannabis use rates in Ontario estimates that teens using cannabis are at an 11 times higher risk of developing a psychotic disorder compared to teens not using cannabis.
The study found a “strong but age-dependent association between cannabis use and psychotic disorders, consistent with the theory that adolescence is a particularly vulnerable time to use cannabis as the brain is still developing,” arguing that more evidence-based cannabis prevention strategies for adolescents are needed as more jurisdictions move to “liberalize cannabis use and perception of harm declines among youth.”
Younger Canadians are twice as likely to use cannabis than older Canadians, according to data from Statistics Canada, although this rate depends on the age demographic. In 2023, 38% of adults aged 18 to 24 years and 35% aged 25 to 44 years reported having used cannabis in the previous 12 months, compared with just 15.5% of adults aged 45 years and older.
In 2023, about 1 in 10 adults aged 18 to 24 years (8.7%) and 25 to 44 years (10.3%) reported having used cannabis daily or almost daily in the previous 12 months, compared with 4.8% of adults aged 45 years and older.
Simply Solventless Concentrates (SSC) brought in $502,536 in net revenue in the first three months of 2024 from gross revenue of $3.1 million and net revenue after taxes of $2.3 million.
The Alberta-based company is behind cannabis brands Astrolab, Frootyhooty and the recently acquired Lamplighter, all available in Alberta, Ontario, and Saskatchewan with infused pre-rolls and vapes. Simply Solventless acquired Lamplighter on January 17, 2024. The company is looking to enter Manitoba and hopes to enter BC soon.
SSC says it has been experiencing rapid revenue growth, with average gross revenue of approximately $233,281 per month in 2022, around $581,117 per month in 2023, and $1,033,334 per month in the first three months (Q1) of 2024.
Excise tax on the $3.1 million in gross revenue for the first three months of 2024 was $823,959. The cost of goods sold in the net revenue of $2.3 million was nearly $1.2 million for a gross profit of $1.1 million. Adjusted EBITDA for Q1 2024 was $611,571. The company has reported positive adjusted EBITDA for the past seven quarters.
This represents an increase in gross and net revenue for the company compared to Q1 2023. However, the company reported lower gross profit and net income than in the same period, as excise taxes were not listed as remitted in Q1 2023.
Net and comprehensive income was $502,536 in Q1 2024, compared to $758,828 in Q1 2023 and a loss of $1 million in Q3 2023.
Salaries and wages also increased significantly in the most recent quarter (246%) compared to the similar period of 2023 due to a higher number of employees in sales and management roles.
SSC lists $9.5 million in raw material and processed intermediates in its inventory as of March 31, 2024, compared to $7.7 million as of December 31, 2023. The company says this increase is due to its acquisition of Lamplighter and in preparation for increased sales volumes.
As of March 31, 2024, SSC had a working capital surplus of $4.3 million, up from $3.7 million as of December 31, 2023.
“What we want to do is we want to bring solventless products to larger markets. And the largest markets in cannabis right now are infused pre rolls, vapes, and its predominantly flavoured distillate.”
Agrify Corporation, a leading provider of innovative cultivation and extraction solutions for the cannabis industry, announced financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial Results Summary
Revenue was $2.6 million for the first quarter of 2024, compared to $5.8 million for the first quarter of 2023.
Gross profit was $0.73 million for the first quarter of 2024, compared to a gross profit of $1 million for the first quarter of 2023.
Operating loss was $0.8 million for the first quarter of 2024, compared to $7.6 million in the first quarter of 2023.
Net loss for the first quarter of 2024 was $0.04 million, compared to $10 million in the first quarter of 2023.
“Following our first positive quarter in the fourth quarter of 2023, we are pleased to witness a sustained improvement in our business, marking another near break-even quarter. We have observed a notable uptick in extraction sales, particularly among prominent multi-state operators (MSOs). Additionally, consumable and part sales are on the rise as the supply of second-hand equipment diminishes, compelling operators to upgrade or replace their existing machinery. The success of our customer’s Las Vegas facility using our VFU technology has reignited interest in our VFUs, attracting both new and existing operators seeking advanced cultivation technology to enhance flower quality” stated Raymond Chang, Chairman and CEO of Agrify.
About Agrify Agrify is a leading provider of innovative cultivation and extraction solutions for the cannabis industry, bringing data, science, and technology to the forefront of the market. Agrify’s proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce the highest quality products with unmatched consistency, yield, and ROI at scale. Agrify’s comprehensive extraction product line, which includes hydrocarbon, ethanol, solventless, post-processing, and lab equipment, empowers producers to maximize the quantity and quality of extract required for premium concentrates. For more information, please visit Agrify at http://www.agrify.com.
WM Technology, Inc., a leading technology and software infrastructure provider to the cannabis industry, today announced its financial results for the first quarter ended March 31, 2024 and the full year ending December 31, 2023.
With the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K”) and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the “Form 10-Q”) the Company will be current in its periodic reporting requirements for purposes of compliance with applicable Nasdaq Stock Market rules.
As previously disclosed, the delay to the filing of the Company’s Form 10-K was due to recent personnel changes in the Company’s executive finance leadership and corresponding delay in the preparation of the Company’s financial statements to be included in the Form 10-K. In connection with the preparation of the Company’s Form 10-K, the Company discovered that it had an inadequate policy associated with its revenue recognition related to the cash collection of a certain subset of its customers that had been placed on cash basis in 2023. The Company determined that it improperly recognized revenue related to satisfied performance obligations and should have instead recognized a credit loss recovery related to these cash receipts. As a result, the Company has included restated financial information in its statements of operations as of and for the periods ended March 31, 2023, June 30, 2023 and September 30, 2023 in the Company’s Form 10-K below. There was no impact to operating income (loss), net income (loss), net income (loss) per share, net cash provided by operating activities, or Adjusted EBITDA for any periods presented.
“I am proud of the progress and results our team was able to deliver to start the year, and more importantly, we are pleased that the net effects of our revenue recognition review were relatively minimal,” stated Doug Francis, Executive Chair of WM Technology. “We believe our continued focus on developing strong client relationships and commitment to operational efficiency have positioned the Company to continue to profitably build its base of quality clients in this dynamic industry over time.”
First Quarter 2024 Financial Highlights
Revenue for the first quarter ended March 31, 2024 was $44.4 million as compared to $46.4 million in the first quarter of 2023 due to our clients continuing to face constrained marketing budgets and the ongoing consolidation of our industry.
Average monthly paying clients(1) of 4,937 was down from 5,641 in the prior year period, largely due to the removal of non-paying clients and from the loss of certain clients following the discontinuation of certain SaaS products in the fourth quarter of 2023.
Average monthly revenue per paying client(2) increased to $2,997 from $2,743 in the prior year period, driven by the removal of non-paying clients with lower spend and the loss of certain clients with lower average monthly spend following the discontinuation of certain SaaS products.
Net income increased to $2.0 million as compared to a net loss of $4.0 million in the prior year period.
Adjusted EBITDA(3) increased to $9.6 million from $7.1 million in the prior year period.
Total shares outstanding across Class A and Class V Common Stock were 150.5 million as of March 31, 2024.
Cash increased to $35.7 million as of March 31, 2024, as compared to $25.9 million from March 31, 2023.
Full Year 2023 Financial Highlights
Revenue was $188.0 million for the year ended December 31, 2023, as compared to $215.5 million in the prior year.
Average monthly paying clients(1) was 5,419, as compared to 5,457 in the prior year.
Average monthly revenue per paying client(2) was $2,891, as compared to $3,291 in the prior year.
Net loss was $15.7 million as compared to net loss of $82.7 million in the prior year.
Adjusted EBITDA(3) was $36.9 million as compared to $(9.6) million in the prior year.
Reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
For further details, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 which will be filed on May 24, 2024 with the Securities and Exchange Commission (“SEC”). The full 10-K report will be available on the SEC Filings section of the Investor Relations section of the Company’s website at https://ir.weedmaps.com/.
(CNW) Calgary — Simply Solventless Concentrates Ltd. (TSXV: HASH) is pleased to provide Q2 2024 gross revenue, adjusted EBITDA and net income guidance including record projected quarterly gross revenue and the continuation of SSC’s quarterly positive adjusted EBITDA and normalized net income streak to nine and seven quarters respectively.
Q2 2024 Guidance
SSC projects record quarterly gross revenue during Q2 2024 of approximately $4,000,000 (Q1 2024 – $3,122,232), representing a growth rate of 28 per cent quarter over quarter. SSC’s continued revenue growth is primarily attributable to SSC’s brands Astrolab, and Frootyhooty, and SSC’s acquisition of Lamplighter in January 2024.
SSC also projects Q2 2024 adjusted EBITDA of approximately $850,000 (Q1 2024 – $611,571) (see Non-IFRS Financial Measures, below), representing a growth rate of 39 per cent quarter over quarter, and net income of approximately $750,000(Q1 2024 – $502,536), representing a growth rate of 49 per cent quarter over quarter. SSC’s streak of positive adjusted EBITDA and normalized net income is expected to extend to nine and seven quarters respectively.
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Jeff Swainson, president and CEO of SSC, stated: “On the heels of our oversubscribed $800,000 unit offering completed in April, we expect record Q2 2024 revenue of $4,000,000 and our seventh straight quarter of normalized net income. We are encouraged by our trajectory and our focus remains on profitable revenue growth both organically and through opportunistic acquisitions.”
SSC has no long-term debt and approximately 53.8 million common shares outstanding (basic), of which approximately 30% are held by insiders. Of SSC’s outstanding common shares, approximately 17.0 million (32 per cent) are escrowed pursuant to TSX Venture Exchange policies. Further details with respect to SSC’s escrowed securities can be found in SSC’s filing statement dated October 31, 2023. SSC also advises that it has filed a revised 2023 annual MD&A and Q1 2024 MD&A to correct a data entry error on the quarterly results summary pages. SSC’s filing statement and the revised MD&As are available on SSC’s SEDAR+ profile at www.sedarplus.ca.
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