MjLink Cannabis Business News and Press
Israel net revenue increased by 263% year-over-year to $9.1 million in Q1 2022Increased market share in Canada and Israel in Q1 2022Mike Gorenstein returned as CEO
TORONTO, May 10, 2022 – PRESS RELEASE – Cronos Group Inc., an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development, announced its 2022 first quarter business results.
“I founded Cronos because of the once-in-a-lifetime opportunity to help build and shape an industry that has the potential to improve countless lives. As CEO, I am committed to re-instilling a start-up culture with a founder’s mentality across all levels of the organization,” said Mike Gorenstein, chairman, president and CEO at Cronos Group. “The strategic realignment we announced in the first quarter of 2022 reset the organization to this mindset and we are seeing the benefits show through in our performance.”
“Our execution in product development, manufacturing, and go-to market strategy resulted in strong growth in both net revenue and gross profit in the first quarter of 2022, proving that we are headed in the right direction. Our Spinach brand is one of the most sought-after brands in the Canadian adult-use market, known for bringing high quality and differentiated products to the consumer. We are also winning with branded products in Israel, with Peace Naturals driving significant revenue growth in the first quarter of 2022. As we execute our strategic realignment, I am encouraged with the progress we are making by increasing our market share in both Canada and Israel, and continuing to bring disruptive branded products to market. In combination with our industry leading balance sheet, our borderless products, such as SOURZ by Spinach winning in Canada, is one of the best ways to be prepared for legalization in the U.S.”
Full details of financial results for the period ending March 31 can be viewed here.
First Quarter 2022
Cleveland leaders’ attempt to expunge cannabis possession convictions en masse has run into a legal wall, one month after Mayor Justin Bibb and other city officials carried boxes of filings to the Justice Center to expunge over 4,000 convictions.
Now, the city’s government is changing course. State law requires that residents make their own requests to expunge their criminal records, according to Ideastream Public Media. So, Cleveland’s law department plans to file motions in municipal court this week to dismiss charges and vacate convictions, per the news outlet.
The new approach is different from expungement because the initial arrest record remains on file. What’s more, the city “would likely owe court costs and fines paid back to the defendant,” according to the Cleveland Scene, citing Cleveland Municipal Judge Michelle Earley and Cleveland.com.
]]>Two Arkansas groups are collecting signatures to send competing adult-use cannabis legalization proposals to the state’s November ballot.
Responsible Growth Arkansas and Arkansas True Grass must gather roughly 89,000 signatures before a July deadline to get their proposed constitutional amendments before voters this year, according to a local KUAR report.
RELATED: Voters in These 9 States Could Decide Cannabis Fate in 2022
Responsible Growth Arkansas’ measure would expand the number of cannabis cultivation licenses in the state to 20 and the dispensary licenses to 40, the news outlet reported.
“It will allow for an opportunity for us to see more nuances in the Natural State for lower yield, higher quality [and] better products that will hopefully be in the market for customers to consume,” Responsible Growth Arkansas Chairman Eddie Armstrong told KUAR.
A new study on California’s cannabis tax structure and low participation in the state’s legal market suggests that lawmakers should consider repealing or suspending the cultivation tax—a revenue stream that grossed more than $163 million in 2021.
The six-part study was published May 4 in a 42-page report by Los Angeles-based Reason Foundation, a nonprofit libertarian think tank. It provides an empirical model to estimate the degree to which California’s tax regime affects participation within its commercial cannabis market.
One key finding was that keeping the state’s current tax structure would generate slightly more revenue than reducing tax rates, based on market growth projections for December 2024. However, eliminating the cultivation tax would bolster enough market growth to yield similar revenue results over the same time period (see full details below).
The study also provides further insights on California’s various tax structures and examines consumer decisions to participate in the legal or illegal market in an effort to quantify the impact of taxes on participation.
“Taxes affect both consumers’ and producers’ decisions in the legal market primarily by introducing a price disparity between legal cannabis products and comparable cannabis products offered through the illicit market,” wrote Geoffrey Lawrence, the foundation’s managing director of drug policy, who authored the report.
“Similarly, local bans on legal sales over extended geographic areas can drive consumers without access to legal products within a reasonable distance of their homes to purchase substitute goods on the illicit market,” he added.
Oklahoma lawmakers are taking aim at a state law that penalizes medical cannabis diversion with an administrative fine with legislation that would increase the penalty for such offenses.
The Oklahoma Senate approved Senate Bill 1367 May 5, sending it to Gov. Kevin Stitt, according to a local KFOR report.
The bill, which cleared the House last month, would increase the penalties for registered patients who purchase medical cannabis and then sell it to non-cardholders, the news outlet reported.
The legislation would up the fine for individuals who divert medical cannabis from $200 to $400 for the first offense and from $500 to $1,000 for the second offense, according to KFOR.
“As many Oklahomans know, when State Question 788 was passed to legalize medical marijuana, we were quickly thrown into a situation where we needed to create the framework and guidelines for this industry,” Sen. Lonnie Paxton, R-Tuttle, one of the bill’s sponsors, told the news outlet. “Unfortunately, this led to the inadvertent mixing of medical marijuana legislation and criminal justice reform legislation, resulting in the ability for someone to buy marijuana product legally, but then re-sell it to a child or someone who doesn’t have their card, with only an administrative fine. Ultimately, this is drug dealing, but only with the equivalent offense of a traffic ticket. S.B. 1367 fixes this loophole and makes this practice a criminal offense.”
As cannabis and hemp producers navigate the nuances of cannabinoids, one industry segment that is attracting fresh attention is pet CBD. Consumer insights data firm Brightfield Group currently tracks 63 brands operating in the pet CBD market. According to the group’s 2021 Pet CBD Survey, sales of CBD intended for pet use accounts for more than 9% of the total CBD market. That’s roughly $430 million in a market now hitting $4.7 billion annually. But for producers and manufacturers considering pet-destined cannabinoids, market potential is only part of the equation.
Who’s Buying Pet CBD and Why?
Brightfield data for all CBD consumers reveals that 28% of those who have pets report giving their pets CBD. Brightfield Senior Insights Manager (and former Cannabis Business Times managing editor) Brian MacIver shares that pet CBD buyers skew toward urban and suburban women who use CBD themselves. Pet CBD purchasers also tend to be mid- to high-income earners, with 60% of respondents to a Brightfield survey earning more than $50,000 per year. While pet CBD buyers span all generations, millennials make up more than half of pet CBD buyers.
When it comes to pets enjoying CBD benefits, dog lovers dominate the pet CBD market. Based on Brightfield data, more than three out of every four pet CBD purchases are for dogs. While purchases for cats cruise into second place, at roughly 20% of purchases, consumers with less conventional pets are turning to pet CBD, too: Rabbits, fish, horses, rodents and reptiles were all represented.
MacIver shares that pet owners who use CBD for their companions most often report using it to relieve general or situational stress or anxiety. Respondents to the 2021 Pet CBD Brightfield survey also noted that they use pet CBD, similar to a supplement, to improve their pet’s wellbeing. “In terms of specific ailments, nearly one in four pet CBD users treat their pet’s arthritis with these products,” MacIver adds. And while veterinarian opinions typically matter to pet CBD buyers, many can’t freely discuss cannabinoid treatments with their family vet.
Where Does Veterinary Medicine and Cannabinoid Research Stand?
Brightfield’s 2021 Pet CBD Survey found that 70% of surveyed pet owners reported talking with their pets’ veterinarians about pet CBD. The vast majority said they were met with positive responses; however, many veterinarians typically hesitate to initiate conversations about CBD.
Cornell University College of Veterinary Medicine Professor Joseph J. Wakshlag, DVM, Ph.D., explains that many veterinarians don’t feel they know enough or have enough clinical data about cannabinoids to recommend them. For many others, the American Veterinary Medical Association (AVMA) warns against prescribing cannabis- or hemp-derived products for animals.
SALINAS, Calif., May 10, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF), a California-born innovator in cannabis cultivation and maker of the brand Lowell Smokes, announces unaudited revenue and operating results for the first quarter and fiscal year (ended March 31, 2022). All figures stated are in US Dollars.
First Quarter Financial Highlights:
Revenue generated for the three-month period ended March 31, 2022 was $12.4 million; an increase of 13% from Q1 2021.CPG revenue increased 10% sequentially, primarily due to increases in pre-roll and packaged flower revenue.As expected, Lowell Farm Services (LFS) revenue declined $2.8 million from fourth quarter seasonal high levels.Gross margin as reported was 12.7% in the first quarter compared to negative 12.3% sequentially and negative 13.4% year over year.Operating expenses were $4.0 million or 33% of sales for the quarter, compared to $6.3 million or 42% of sales in the fourth quarter last year and $4.2 million or 38% of sales in the first quarter last year, reflecting cost reductions realized in the current quarter.The operating loss in the first quarter was $2.5 million compared to an operating loss of $8.2 million sequentially and an operating loss of $5.7 million year over year, reflecting the favorable impact from increased sales, cost reductions and efficiencies.Net loss for the first quarter was $4.1 million compared sequentially to a net loss of $10.0 million, which compares to a net loss of $6.7 million in the first quarter last year.Adjusted EBITDA in the first quarter was negative $0.9 million compared sequentially to adjusted EBITDA of negative $3.6 million and negative adjusted EBITDA of $4.6 million year over year. Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Information” below for further information and a detailed reconciliation to Net Loss, the closest comparable GAAP measure.| Revenue Summary ($’s in ‘000) |
| Q/Q | Q/Q | |||||||||
| Dec 31, 2021 | March 31, 2022 | % Change | $ Change | |||||||
| CPG Revenues | $ | 8,219 | $ | 9,077 | 10 | % | 858 | |||
| Bulk Product | $ | 2,609 | $ | 2,259 | -13 | % | (350 | ) | ||
| LFS | $ | 3,153 | $ | 350 | -89 | % | (2,803 | ) | ||
| Out-of-State Licensing | $ | 1,092 | $ | 723 | -34 | % | (369 | ) | ||
| Net revenue | $ | 15,073 | $ | 12,409 | -18 | % | (2,664 | ) | ||
“For the second quarter in a row, Lowell Farms has taken the lead as California’s largest combined seller of packaged flower and all-flower pre-rolls in California per Headset,” says Co-Founder and Chief Executive Officer Mark Ainsworth. “You get there by selling a consistent, quality product that consumers have learned to trust and that is exactly what we sell.
“We also continue to make great strides with our out-of-state licensing partnerships, rising to become one of the top players in both of those markets for pre-rolls. That is a strong statement about the power of that brand.”
Subsequent events to the first quarter ended March 31, 2022:
(Mendocino County, CA) - PRESS RELEASE - The inaugural Mendocino Craft Farmers Auction (MCFA) presented by the Mendocino Cannabis Alliance (MCA) and the Mendocino Producers Guild (MPG) will be held on July 16 in Mendocino County. This first-of-its-kind event will be hosted courtesy of Jim Roberts and Brian Adkinson of The Bohemian Chemist cannabis brand, who also own The Brambles, an event venue in the heart of the redwoods in the Anderson Valley of southern Mendocino County.
MCFA is a charity auction, with proceeds going to support the invaluable resources made available within Mendocino County by Redwood Community Services Crisis Response. This is an opportunity for the cannabis community of Mendocino to give back to the broader community and the county, while at the same time raising consciousness about the high quality of the cannabis produced here and the incredible people who produce it.
Auction items will include rare opportunities such as visits and overnight stays at some of the top local cannabis producers farms, health and wellness experiences, fine dining and adventures in our world-famous wilderness. Other items offered will include locally made crafts, gift certificates from local businesses, farm products and more. Generous donors should not be surprised if their generosity is matched by growers who want to share from their Private Reserve for a truly unique and coveted experience.
The affair will start in the late afternoon when guests can explore items featured both on the silent and live auctions, sip local wines from Maple Creek Winery and sample some of the finest cannabis in the world, shared by Mendocino farmers. An elegant supper will follow catered by Chef Dan Hagopian of Sonoma Market. The Live Auction will kick off during dessert, to be followed by lively dancing under the stars and the redwoods with music provided by DJ Mo Magic, herself a small farmer from Covelo in northeastern Mendocino.
This is a great way for visitors to discover the eclectic wonders of Mendocino County. Accommodations will be available on site at the Brambles and their sister location, The Madrones, as well as in nearby hotels. Upon purchase of your ticket you will receive details about special discounts for those attending the event.
The New Jersey Supreme Court is set to decide on how law enforcement and employers measure cannabis impairment.
The case, State v. Olenowski, has questioned the use of specially trained officers, called Drug Recognition Experts (DREs) who perform cannabis sobriety tests, as well as the protocol used by these officers, according to an NJ.com report.
The state Office of the Public Defender (OPD) has challenged the scientific validity of how police officers detect drug impairment, including the detection of drivers suspected to be under the influence of THC, the news outlet reported.
The outcome of the case could ultimately impact other provisions in New Jersey’s law that require drug testing in the workplace, NJ.com reported, since employers' testing protocols often mirror those used by DREs in law enforcement.
Krista Nash, a member of the New Jersey Cannabis Regulatory Commission (CRC), said May 7 during a cannabis business event hosted by CBD delivery company Roll-Up Life that regulators are awaiting the outcome of the case before writing rules governing how cannabis impairment is measured, according to NJ.com.
Vermont lawmakers voted last week to limit the potency of solid cannabis concentrates in the state’s forthcoming adult-use marketplace.
The House Committee on Government Operations voted May 5 to amend H. 548 with a provision that would prohibit solid cannabis concentrates containing over 60% THC from the adult-use market, according to the VT Digger.
H. 548 is one of four bills aimed at establishing Vermont’s commercial adult-use market, which is set to launch in October, the news outlet reported.
Rep. John Gannon, D-Wilmington, proposed the amendment to cap the potency in solid cannabis concentrates and the change was approved in a voice vote last week, according to the VT Digger.
Senators then expressed their displeasure at the amendment May 6 before moving the legislation to a conference committee with the House to settle their differences over the THC cap, the news outlet reported.
Has your business added hemp-derived delta-9 THC products to its menu?
Many U.S. hemp companies have begun selling products that contain delta-9 THC, the cannabinoid that differentiates hemp from cannabis. These companies market these products as hemp-derived and federally compliant under the 2018 Farm Bill, claiming they contain less than the 0.3% THC limit set for hemp.
How are these products getting on shelves?
As previously reported by Cannabis Business Times, companies are creating these delta-9 products by making them weigh enough using other ingredients to remain within that 0.3% THC limit.
Still, there is much legal controversy around these products and how a "dry-weight" basis is measured.
RELATED: Delta-9 in Edible Hemp Products: What's a 'Dry Weight Basis' Anyway?
Competition for Connecticut’s First Dozen Cannabis Retail Licenses Includes 15,600-Plus Applications
The competition to win one of 12 adult-use cannabis retail licenses in Connecticut is fierce, but some applicants have greater odds than others for an upcoming lottery.
Overall, there were 8,357 applications submitted for the first six social equity licenses ahead of the May 4 deadline, and there were another 7,245 license applications submitted for the first six general licenses, according to figures released by the Connecticut Department of Consumer Protection (DCP).
While there’s less than a 1-in-1,000 chance for each application in a lottery expected to take place this week, not all applicants have the same odds of winning, CT News Junkie reported.
“They can apply as much as they want, but they have to pay a fee every time,” DCP Communications Director Kaitlyn Krasselt told the news outlet.
The nonrefundable application fees were $500 for general retail licenses and $250 for social equity retail licenses, according to DCP. Social equity applications not selected in the social equity lottery will be added to the general lottery, Krasselt said.
While the social equity licenses are reserved, in part, for those who had an average household income of less than three times the state median household income over the last three tax years, Connecticut’s application system favors those who can afford to pay for multiple applications.
SARASOTA, Florida, May 10, 2022 - PRESS RELEASE - Grower's Ally, a producer of safe and effective pesticides for cannabis and hemp, announced the release of its newest addition to the Grower's Ally product family.
Crop Defender 3 is a triple-action crop protection formula made with a synergistic blend of botanical oils and a surfactant. The OMRI Listed miticide, insecticide, and fungicide contain active ingredients from nature that are scientifically proven to kill powdery mildew, spider mites, russet mites, thrips, aphids, and other soft-bodied insects as well as their eggs on contact.
"We committed to launching a 3-in-1 product that makes no compromises," said Scott Allshouse, Grower's Ally CEO and president. "Crop Defender 3 is an exceptional product for controlling common cannabis pests. In independent lab testing, Crop Defender 3 was significantly better than competitors at controlling powdery mildew and eliminating mite populations after just one application."
The active ingredients in the highly effective FIFRA 25(b) formula are thyme oil, rosemary oil, clove oil, and peppermint oil. The foliar spray can be safely applied up until the day of harvest, leaving behind zero pollutants.
]]>VANCOUVER, BC, May 10, 2022 /CNW/ - PRESS RELEASE - Village Farms International, Inc. today announced its financial results for the first quarter ended March 31, 2022. All figures are in U.S. dollars unless otherwise indicated.
Management Commentary
"The first quarter of 2022 once again demonstrated the strength and earnings power of both our Canadian and U.S. Cannabis businesses," said Michael DeGiglio, Chief Executive Officer, Village Farms International. "In what is a typically soft season for retail sales in Canada, both Pure Sunfarms and Rose gained share in their respective focus markets, and delivered a 14th consecutive quarter of positive adjusted EBITDA for Canadian Cannabis. Pure Sunfarms' products continue to resonate with consumers, as our continued focus on quality, innovation and new product launches strengthen what has become one of the most respected and trusted brands in the Canadian market. In Quebec, we estimate that Rose is now a top three Licensed Producer by sales following strong market share gains since retail launch early last year. Rose is well positioned to continue this momentum throughout 2022, further benefitting from the many opportunities for collaboration with Pure Sunfarms. With our Canadian Cannabis business continuing to grow sales and market share domestically, we look forward to capitalizing on Pure Sunfarms' recent EU GMP certification to commence exportation to international markets.
"Our U.S. Cannabis segment delivered a solid performance, highlighted by a strong gross margin and positive adjusted EBITDA contribution. The integration of Balanced Health into the Village Farms family is progressing very well and confirms our belief in both the potential within the existing cannabinoid business and the significant near- and long-term opportunities in both the low-THC and high-THC product categories.
"As our Cannabis operations continued to deliver strong growth and profitability, Village Farms Fresh (Produce) faced one of the most difficult macro environments in its history. Strong revenue growth was more than offset by the inflationary impact of freight, labor, fertilizer, packaging and other cost increases. An industry-wide supply imbalance limited the producer's ability to pass along pricing to customers. We are evaluating new initiatives, including marketing partnerships to build more scale, spread costs and diversify product offerings. However, even in the currently negative EBITDA environment, we maintain the highest conviction that our U.S. cultivation footprint is a powerhouse opportunity for legal recreational cannabis when we can participate."
DeGiglio concluded, "Consumer takeaway trends during the first quarter further validated our brand and cultivation strategies. We expect continued momentum throughout 2022 and beyond as each of our cannabis businesses continues to launch innovative new products that address evolving consumer demand. We remain focused on seizing opportunities to continue to deliver top-tier profitability and market share in the high-growth global cannabis market."
The Humboldt County Civil Grand Jury has recommended tweaks to the California county’s cannabis permitting process.
The grand jury released a report May 8 that summarizes the county’s cannabis licensing process and issues seven recommendations for Humboldt County’s Public Works Department, Planning and Building Department and Board of Supervisors to change it, according to a Times-Standard report.
The report recommends that the Board of Supervisors approve funding for the Planning and Building Department to upgrade Accela, the county’s online permit submission system, to ensure that applicants can complete the application and pay the associated fees online, the Times-Standard reported.
The grand jury also recommended that “the Public Works Department determine the funding needed and submit a budget request to build out Accela modules for Planning and Building Department referrals for (1) encroachment permitting, (2) legal document review, (3) map review, (4) a drainage fee calculator, (5) encroachment violation and tracking, (6) reporting tools for each module and other modules determined to be necessary,” according to the news outlet.
LOS ANGELES, May 10, 2022 — PRESS RELEASE — Final Bell, a provider of end-to-end supply chain solutions for cannabis brands, and SHERBINSKIS, a California-based cannabis company, have partnered to bring SHERBINSKIS products to new geographies, beginning with Canada. The first highly anticipated product launch, Orange Sherbs Live Resin All-in-One Vape, quickly sold out upon release in Ontario.
Final Bell is responsible for the end-to-end manufacturing, compliance and go-to-market of SHERBINSKIS’ highly coveted cannabis products in the Canadian market. The brand’s legendary Gelato was deemed, “The World’s Most Sought-After Cannabis Strain” by streetwear and culture authority Highsnobiety.
“Final Bell’s industry expertise, multi-geographical end-to-end supply chain for hardware and packaging, and seed-to-sale compliance infrastructure will allow SHERBINSKIS to provide the same high-end customer experience in Canada that established their brand in California,” said Greg Boone, CEO of Final Bell Canada. “This partnership solidifies a long-standing relationship, born from a shared vision to provide a consistent, high-end cannabis brand experience that begins with incredible product.”
Credited with producing some of the most influential genetics in modern cannabis including Sunset Sherbert, Mochi, and Bacio Gelato, this partnership with Final Bell will expand the brand’s availability into new markets. This will mark the first time SHERBINSKIS products are available outside of California and Michigan, and its successful foray into Canada sets expectation of continued acceleration of sales.
“A key component to our continued success is ensuring we’re offering our discerning customers consistency and quality every time they interact with our brand,” said Mario Guzman, founder of SHERBINSKIS. “That obviously goes for our cannabis but also the hardware and packaging we put it in. Final Bell brings best-in-class industry know-how in extraction, manufacturing, logistics and scalability to help carry our vision forward to a much wider audience of cannabis connoisseurs.”
As support for cannabis legalization continues to rise internationally, government officials in Germany indicate they’re ready to take meaningful steps toward enacting reform.
Amidst the transition of the country’s governing coalition in late 2021, when Olaf Scholz, a member of the Social Democratic Party, took over as the chancellor of Germany, leaders from three top parties indicated they would introduce legislation to legalize adult-use cannabis following the power shift.
In addition to the Social Democrats, the Freedom Democrats and The Greens officially signed a three-party coalition deal in December.
RELATED: Germany’s New Coalition Supports Adult-Use Cannabis Legalization
While leaders from those political parties included full cannabis legalization on their agenda leading up to the coalition deal, they offered few details on what a new industry would look like in a country of roughly 83 million people—the largest in the European Union.
But those details will be brought to the forefront soon per top government officials, Forbes reported.
The Massachusetts Cannabis Control Commission (CCC) recently underwent a change in leadership, with former Chairman Steve Hoffman resigning and Deputy Treasurer Sarah Kim appointed as the interim chairwoman.
The CCC announced May 2 that Hoffman resigned April 25, roughly four months before his five-year inaugural term was set to expire, according to a WBUR report.
Hoffman, a retired business executive and former Bain and Company partner, was appointed as chairman in 2017 by Massachusetts Treasurer Deborah Goldberg, according to the news outlet. He had been the only original member left on the commission for nearly a year and a half.
“Chairman Hoffman’s contributions over the past four and a half years were integral to the growth and maturation of the commission and the legal cannabis industry in Massachusetts,” a CCC spokesperson told WBUR. “The agency thanks the chair for his commitment to ensuring a safe, effective and accessible marketplace in our state.”
Goldberg is responsible for appointing Hoffman’s successor, who must have corporate management, finance or securities experience, the news outlet reported.
Kansas’ cannabis laws will likely remain some of the strictest in the nation when the state’s Legislature adjourns later this month.
Despite multiple efforts to legalize medical cannabis this legislative session, including a House-passed bill that stalled in the Senate, and a Senate bill introduced by Republican Sen. Rob Olson in March, Kansas lawmakers appear unlikely to advance reform when they convene for one final day of work on May 23, NBC-affiliate KSNT reported.
Most recently, a group of House and Senate conference committee lawmakers met on April 27 to draft a new medical cannabis legalization proposal that both chambers could support. Olson chairs the six-member committee.
RELATED: Kansas Lawmakers Begin Final Medical Cannabis Negotiations
But the conference committee’s effort likely won’t progress further when lawmakers wrap up their legislative session May 23, Senate leadership spokesman Mike Pirner told Kansas Capitol Bureau on May 9.
“Given we plan to only be there one day, it’s unlikely that work could be completed on that item,” Pirner said.
WAKEFIELD, Mass., May 9, 2022 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, announced that Matt Darin will become Chief Executive Officer of Curaleaf, effective May 9, while outgoing CEO Joe Bayern will launch and run a new division of Curaleaf developing a new consumer packaged goods (CPG)-based business model. Darin will report to the board and will work closely with Bayern during the transition period through the second quarter.
The announcement was made in conjunction with the company’s quarterly earnings call, during which Curaleaf reported first quarter revenue with year-over-year revenue growth of 20% to $313 million, and year-over-year adjusted EBITDA growth of 16% to $73 million with operating cash flow of $57 million.
Executive Chairman Boris Jordan said, "When we named Matt president in January, it was a deliberate move to strengthen our leadership bench to support our growth strategy and build a succession plan for the future. The board and I are all incredibly grateful for Joe's accomplishments during his tenure as CEO. He brought us into a new way of working and thinking strategically as a CPG company. His experience as a brand builder and CPG leader will be instrumental for our new venture at a time when the opportunities in the marketplace are only just being realized. We'll be sharing more on the new division and its role in our strategy soon."
Jordan added, "Matt has been an essential leader in our day-to-day operations, commercialization strategy, and in streamlining our reporting structure and decision-making process. He's excelled in every role since joining Curaleaf, and I am highly confident in his vision and abilities to lead the company in its next phase of growth. This move positions us well on several fronts; we will benefit from Matt's proven track record of building winning teams and cannabis industry experience, and Joe Bayern's extensive experience driving CPG strategy to launch our new division. I have the utmost confidence that this change is the natural next step in Curaleaf's journey as the leading global cannabis company serving both the adult-use and health-and-wellness markets. In fact, we've never been more bullish about our future."
Darin brings dynamic leadership skills, an entrepreneurial mindset and experience as a first-class operator in the cannabis industry. As a founder of Grassroots, he was a first entrant in some of the top cannabis markets in the U.S., including Illinois and Pennsylvania. Since joining Curaleaf in July 2020, he led the Central region, the company's largest by footprint and revenue. In 2021 he added the Southeast region to his responsibilities, helping increase Curaleaf's market share by 55%.
Darin said, "I firmly believe we are building the best team in cannabis, and I'm energized and humbled to lead Curaleaf at this pivotal moment. We've built the foundation to continue to be the industry leader for the long term with a focus on operational excellence in every aspect of our business. We are leveraging the power of our 131 highly productive dispensaries and the accelerating distribution of our brands in 2,200 wholesale accounts throughout the U.S. I'm grateful to the board for their confidence in me as we move to the next phase of our journey."
