공고 • Jul 16
FIKA entered into a binding term sheet agreement to acquire Cannabis retail store business and the logistics and distribution business of Delta 9 Cannabis Inc. (TSX:DN). FIKA entered into a binding term sheet agreement to acquire Cannabis retail store business and the logistics and distribution business of Delta 9 Cannabis Inc. (TSX:DN) on July 15, 2024. MLT Aikins LLP acted as legal advisor to Delta 9 Cannabis Inc. Reported Earnings • May 17
First quarter 2024 earnings released: CA$0.02 loss per share (vs CA$0.02 loss in 1Q 2023) First quarter 2024 results: CA$0.02 loss per share (in line with 1Q 2023). Revenue: CA$16.5m (down 2.4% from 1Q 2023). Net loss: CA$5.07m (loss widened 70% from 1Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Pharmaceuticals industry in Germany. 공고 • Apr 20
Delta 9 Cannabis Inc., Annual General Meeting, Jun 28, 2024 Delta 9 Cannabis Inc., Annual General Meeting, Jun 28, 2024. Reported Earnings • Apr 02
Full year 2023 earnings released: CA$0.10 loss per share (vs CA$0.22 loss in FY 2022) Full year 2023 results: CA$0.10 loss per share (improved from CA$0.22 loss in FY 2022). Revenue: CA$71.1m (up 12% from FY 2022). Net loss: CA$17.5m (loss narrowed 36% from FY 2022). Revenue is forecast to grow 10.0% p.a. on average during the next 2 years, compared to a 3.4% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 54% per year, which means it is performing significantly worse than earnings. New Risk • Feb 14
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 50% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (94% average weekly change). Negative equity (-CA$606k). Earnings have declined by 46% per year over the past 5 years. Shareholders have been substantially diluted in the past year (50% increase in shares outstanding). Market cap is less than US$10m (€3.10m market cap, or US$3.32m). New Risk • Nov 17
New major risk - Negative shareholders equity The company has negative equity. Total equity: -CA$606k This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (34% average weekly change). Negative equity (-CA$606k). Earnings have declined by 46% per year over the past 5 years. Market cap is less than US$10m (€4.82m market cap, or US$5.22m). Minor Risk Shareholders have been diluted in the past year (38% increase in shares outstanding). Reported Earnings • Nov 17
Third quarter 2023 earnings released: CA$0.03 loss per share (vs CA$0.06 loss in 3Q 2022) Third quarter 2023 results: CA$0.03 loss per share (improved from CA$0.06 loss in 3Q 2022). Revenue: CA$18.4m (up 18% from 3Q 2022). Net loss: CA$5.48m (loss narrowed 26% from 3Q 2022). Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has fallen by 61% per year, which means it is performing significantly worse than earnings. 공고 • Oct 31
Delta 9 Cannabis Inc. to Report Q3, 2023 Results on Nov 14, 2023 Delta 9 Cannabis Inc. announced that they will report Q3, 2023 results After-Market on Nov 14, 2023 New Risk • Aug 24
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 60% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (22% average weekly change). Earnings have declined by 42% per year over the past 5 years. Shareholders have been substantially diluted in the past year (60% increase in shares outstanding). Market cap is less than US$10m (€6.16m market cap, or US$6.66m). Minor Risk Significant insider selling over the past 3 months (€132k sold). Reported Earnings • Aug 15
Second quarter 2023 earnings released: CA$0.02 loss per share (vs CA$0.04 loss in 2Q 2022) Second quarter 2023 results: CA$0.02 loss per share (improved from CA$0.04 loss in 2Q 2022). Revenue: CA$18.3m (up 4.3% from 2Q 2022). Net loss: CA$2.82m (loss narrowed 41% from 2Q 2022). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has fallen by 55% per year, which means it is performing significantly worse than earnings. 공고 • Jul 28
Delta 9 Cannabis Inc. to Report Q2, 2023 Results on Aug 14, 2023 Delta 9 Cannabis Inc. announced that they will report Q2, 2023 results After-Market on Aug 14, 2023 Recent Insider Transactions • Jun 23
Co-Founder recently sold €68k worth of stock On the 19th of June, John Arbuthnot sold around 2m shares on-market at roughly €0.039 per share. This transaction amounted to 12% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. John has been a net seller over the last 12 months, reducing personal holdings by €197k. Reported Earnings • May 17
First quarter 2023 earnings released: CA$0.02 loss per share (vs CA$0.037 loss in 1Q 2022) First quarter 2023 results: CA$0.02 loss per share (improved from CA$0.037 loss in 1Q 2022). Revenue: CA$16.9m (up 35% from 1Q 2022). Net loss: CA$2.99m (loss narrowed 28% from 1Q 2022). Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has fallen by 52% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 17
Third quarter 2022 earnings released: CA$0.06 loss per share (vs CA$0.011 loss in 3Q 2021) Third quarter 2022 results: CA$0.06 loss per share (further deteriorated from CA$0.011 loss in 3Q 2021). Revenue: CA$15.7m (up 3.3% from 3Q 2021). Net loss: CA$7.40m (loss widened CA$6.28m from 3Q 2021). Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 45 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 17
Second quarter 2022 earnings released: CA$0.04 loss per share (vs CA$0.014 loss in 2Q 2021) Second quarter 2022 results: CA$0.04 loss per share (down from CA$0.014 loss in 2Q 2021). Revenue: CA$17.5m (up 4.4% from 2Q 2021). Net loss: CA$4.83m (loss widened 249% from 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 39 percentage points per year, which is a significant difference in performance. Reported Earnings • May 17
First quarter 2022 earnings released: CA$0.04 loss per share (vs CA$0.042 loss in 1Q 2021) First quarter 2022 results: CA$0.04 loss per share (up from CA$0.042 loss in 1Q 2021). Revenue: CA$12.5m (down 5.7% from 1Q 2021). Net loss: CA$4.17m (loss narrowed 2.8% from 1Q 2021). Over the next year, revenue is forecast to grow 49%, compared to a 6.3% growth forecast for the industry in Germany. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 01
Full year 2021 earnings released: CA$0.11 loss per share (vs CA$0.072 loss in FY 2020) Full year 2021 results: CA$0.11 loss per share (down from CA$0.072 loss in FY 2020). Revenue: CA$62.3m (up 20% from FY 2020). Net loss: CA$11.2m (loss widened 74% from FY 2020). Over the next year, revenue is forecast to grow 24%, compared to a 8.2% growth forecast for the pharmaceuticals industry in Germany. Board Change • Dec 06
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 17
Third quarter 2021 earnings released: CA$0.01 loss per share (vs CA$0.07 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: CA$15.2m (up 16% from 3Q 2020). Net loss: CA$1.12m (loss narrowed 81% from 3Q 2020). Recent Insider Transactions • Oct 28
Independent Director recently sold €88k worth of stock On the 21st of October, Joanne Duhoux-Defehr sold around 326k shares on-market at roughly €0.27 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €108k more than they bought in the last 12 months. Reported Earnings • Aug 18
Second quarter 2021 earnings released: CA$0.014 loss per share (vs CA$0.01 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CA$16.8m (up 29% from 2Q 2020). Net loss: CA$1.39m (loss widened 64% from 2Q 2020). Recent Insider Transactions • May 29
Co-Founder recently sold €93k worth of stock On the 26th of May, John Arbuthnot sold around 270k shares on-market at roughly €0.35 per share. This was the largest sale by an insider in the last 3 months. John has been a seller over the last 12 months, reducing personal holdings by €121k. Recent Insider Transactions • May 22
Co-Founder recently sold €78k worth of stock On the 18th of May, John Arbuthnot sold around 230k shares on-market at roughly €0.34 per share. This was the largest sale by an insider in the last 3 months. John has been a seller over the last 12 months, reducing personal holdings by €206k. Reported Earnings • May 18
First quarter 2021 earnings released: EPS CA$0.04 (vs CA$0.023 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and weaker control over costs, although revenues improved. First quarter 2021 results: Revenue: CA$13.2m (up 13% from 1Q 2020). Net loss: CA$4.29m (down 309% from profit in 1Q 2020). Reported Earnings • Apr 02
Full year 2020 earnings released: CA$0.07 loss per share (vs CA$0.16 profit in FY 2019) The company reported a mediocre full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: CA$52.0m (up 64% from FY 2019). Net loss: CA$6.42m (down 147% from profit in FY 2019). Is New 90 Day High Low • Feb 12
New 90-day high: €0.46 The company is up 50% from its price of €0.31 on 13 November 2020. The German market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €2.68 per share. Is New 90 Day High Low • Jan 26
New 90-day high: €0.38 The company is up 19% from its price of €0.32 on 28 October 2020. The German market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €2.67 per share. Recent Insider Transactions • Dec 24
Co-Founder recently bought €62k worth of stock On the 21st of December, John Arbuthnot bought around 176k shares on-market at roughly €0.35 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, John has been a net seller over the last 12 months, reducing personal holdings by €206k. Is New 90 Day High Low • Dec 23
New 90-day low: €0.29 The company is down 8.0% from its price of €0.32 on 24 September 2020. The German market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.98 per share. Reported Earnings • Nov 13
Third quarter 2020 earnings released: CA$0.07 loss per share The company reported a mediocre third quarter result with increased losses and weaker control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: CA$13.1m (up 97% from 3Q 2019). Net loss: CA$5.85m (loss widened 307% from 3Q 2019).