Cantourage Reveals 2023 Revenue Boost, Last European Cannabis ETF Closes & SEED Innovations Interim Results
- Cantourage Group, a German-listed cannabis distributor, reported Q3 revenues of €6.1m, up from €3.4m in the same period a year earlier. However, EBITDA fell to a loss of €0.6m, compared to a loss of €1.2m the previous year. The company attributed the loss to delays in the approval of new production facilities and other factors, but maintained its forecast of a balanced EBITDA and double-digit revenue increases year-on-year.
- The Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR), Europe’s last remaining cannabis-focused ETF, is set to close in December. The closure is part of new management’s efforts to streamline its portfolio. The cannabis fund, launched in 2020, currently holds nearly $14m in net assets. This closure follows the closure of Europe’s first cannabis-specific ETF, the Medical Cannabis and Wellness UCITS ETF (CBDX) by HANetf, which is set to be merged with a wider healthcare ETF.
- SEED Innovations, the AIM-listed cannabis investment company, reported a decrease in the net asset value (NAV) of its portfolio from £16m to £14.6m during the six months to September 30, 2023. The decline was attributed to the negative revaluations of its investee companies due to raising funds at discounted prices, and a decline in the market price of Little Green Pharma and Portage. However, the company’s CEO, Ed McDermott, believes the company is significantly undervalued, with its shares trading at approximately a 64% discount to net asset value.
Cantourage’s Q3 Financials
Cantourage Group revealed its Q3 results, marking significant revenue growth in 2023, but slipping into the red following a positive EBITDA report in July. The German-listed cannabis distributor announced Q3 revenues of €6.1m, a notable increase from €3.4m year-on-year.
Cantourage’s revenue for the first three quarters of 2023 reached €17.2m, an 85% increase from 2022. EBITDA for Q3 dropped to a loss of €0.6m, a significant decrease from the €1.2m loss year-on-year. The cause of this loss is attributed to delays in new production facilities’ approval. However, the company maintains a balanced EBITDA forecast and anticipates double-digit revenue growth year-on-year.
The CFO, Bernd Fischer, expressed optimism due to expected efficiency gains in the growing market, the effects of which are expected to be felt in the current quarter. Post period, Cantourage also highlighted its recent collaboration with Astrasana.
Rize Medical Cannabis ETF Closes
The Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR), the last cannabis-focused ETF in Europe, is set to close in December. According to ETF Stream, the closure reflects the new management’s efforts to streamline its portfolio. The move also follows the closure of the first cannabis-specific ETF in Europe, HANetf’s Medical Cannabis and Wellness UCITS ETF (CBDX) fund.
SEED Innovations Reports
AIM-listed cannabis investment company, SEED Innovations, reported this week’s financial figures, for the period until September 30, 2023. The company’s net asset value (NAV) declined from £16m to £14.6m due to negative revaluations of its investee companies. Despite this, CEO Ed McDermott highlights the company’s NAV is still higher than its current market cap of £6m.
Northern Leaf, SEED’s investee company, announced a successful first commercial shipment of medical cannabis to the UK. Despite some setbacks, SEED remains hopeful about Northern Leaf’s potential IPO.
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