Duyuru • Aug 13
Nova Shares to Be Delisted from the TSX SNDL Inc. ("SNDL") and Nova Cannabis Inc. ("Nova") announced that they have entered into an arrangement agreement (the "Agreement") pursuant to which SNDL will acquire all of the issued and outstanding common shares in the capital of Nova ("Nova Shares") not already owned by SNDL, representing approximately 34.8% of Nova Shares, by way of a statutory plan of arrangement (the "Transaction") for aggregate consideration of approximately $40 million (the "Consideration"). The Transaction has been approved by the boards of directors of both SNDL and Nova and is expected to close on or before October 18, 2024. Following the closing of the Transaction, the Nova Shares are expected to be delisted from the TSX and Nova will apply to cease to be a reporting issuer in all provinces and territories of Canada. Reported Earnings • Aug 04
Second quarter 2024 earnings released: EPS: CA$0.01 (vs CA$0.018 in 2Q 2023) Second quarter 2024 results: EPS: CA$0.01 (down from CA$0.018 in 2Q 2023). Revenue: CA$69.2m (up 8.1% from 2Q 2023). Net income: CA$859.0k (down 17% from 2Q 2023). Profit margin: 1.2% (down from 1.6% in 2Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Specialty Retail industry in Canada. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Duyuru • Jul 20
Nova Cannabis Inc. to Report Q2, 2024 Results on Aug 01, 2024 Nova Cannabis Inc. announced that they will report Q2, 2024 results After-Market on Aug 01, 2024 Duyuru • Jul 16
Nova Cannabis Inc. Announces Chief Executive Officer Changes, Effective August 1, 2024 Nova Cannabis Inc. announced that Marcie Kiziak, Chief Executive Officer and a Director of Nova, will be stepping down from her role of Chief Executive Officer, effective August 1, 2024. Ms. Kiziak will continue to serve as a Director of Nova until second quarter 2024 financial results are announced. This decision comes in connection with the restructuring announced by SNDL Inc. earlier July 16, 2024. Ms. Kiziak successfully led Nova through the early years of Canadian federal legalization and worked to build a unique and highly disruptive discount strategy in Cannabis retail. Nova's success prompted a number of retail operators to follow suit, bringing greater value and convenience to consumers. Under her leadership, the Nova team has grown the Value Buds portfolio to more than 100 stores through a combination of organic and inorganic growth. Taking the reins as Interim Chief Executive Officer will be Grant Sanderson, Nova's current Chief Operating Officer. Sanderson's appointment will take effect upon Ms. Kiziak's departure. Duyuru • May 17
Nova Cannabis Inc., Annual General Meeting, Jun 20, 2024 Nova Cannabis Inc., Annual General Meeting, Jun 20, 2024. New Risk • May 16
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.6% This is considered a minor 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: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (8.6% increase in shares outstanding). Market cap is less than US$100m (CA$76.4m market cap, or US$56.1m). Duyuru • May 01
Nova Cannabis Inc. to Report Q1, 2024 Results on May 07, 2024 Nova Cannabis Inc. announced that they will report Q1, 2024 results After-Market on May 07, 2024 Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CA$1.42, the stock trades at a trailing P/E ratio of 26.9x. Average forward P/E is 3x in the Specialty Retail industry in Canada. Total loss to shareholders of 45% over the past three years. Reported Earnings • Mar 27
Full year 2023 earnings released: EPS: CA$0.05 (vs CA$0.20 loss in FY 2022) Full year 2023 results: EPS: CA$0.05 (up from CA$0.20 loss in FY 2022). Revenue: CA$259.3m (up 14% from FY 2022). Net income: CA$3.03m (up CA$14.2m from FY 2022). Profit margin: 1.2% (up from net loss in FY 2022). Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Specialty Retail industry in Canada. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Duyuru • Mar 13
Nova Cannabis Inc. to Report Q4, 2023 Results on Mar 25, 2024 Nova Cannabis Inc. announced that they will report Q4, 2023 results After-Market on Mar 25, 2024 Reported Earnings • Nov 11
Third quarter 2023 earnings released: EPS: CA$0.04 (vs CA$0.027 loss in 3Q 2022) Third quarter 2023 results: EPS: CA$0.04 (up from CA$0.027 loss in 3Q 2022). Revenue: CA$67.7m (up 15% from 3Q 2022). Net income: CA$2.10m (up CA$3.63m from 3Q 2022). Profit margin: 3.1% (up from net loss in 3Q 2022). Duyuru • Nov 01
Nova Cannabis Inc. to Report Q3, 2023 Results on Nov 08, 2023 Nova Cannabis Inc. announced that they will report Q3, 2023 results After-Market on Nov 08, 2023 New Risk • Aug 11
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 8.9% per year over the past 5 years. Minor Risk Market cap is less than US$100m (CA$30.3m market cap, or US$22.6m). Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: CA$0.02 (vs CA$0.024 loss in 2Q 2022) Second quarter 2023 results: EPS: CA$0.02 (up from CA$0.024 loss in 2Q 2022). Revenue: CA$64.0m (up 14% from 2Q 2022). Net income: CA$1.04m (up CA$2.41m from 2Q 2022). Profit margin: 1.6% (up from net loss in 2Q 2022). Duyuru • Aug 04
Nova Cannabis Inc. to Report Q2, 2023 Results on Aug 09, 2023 Nova Cannabis Inc. announced that they will report Q2, 2023 results After-Market on Aug 09, 2023 Reported Earnings • May 12
First quarter 2023 earnings released: CA$0.01 loss per share (vs CA$0.062 loss in 1Q 2022) First quarter 2023 results: CA$0.01 loss per share (improved from CA$0.062 loss in 1Q 2022). Revenue: CA$60.2m (up 21% from 1Q 2022). Net loss: CA$544.0k (loss narrowed 85% from 1Q 2022). Duyuru • May 05
Nova Cannabis Inc. to Report Q1, 2023 Results on May 10, 2023 Nova Cannabis Inc. announced that they will report Q1, 2023 results After-Market on May 10, 2023 Reported Earnings • Mar 31
Full year 2022 earnings released: CA$0.20 loss per share (vs CA$0.39 loss in FY 2021) Full year 2022 results: CA$0.20 loss per share (improved from CA$0.39 loss in FY 2021). Revenue: CA$226.4m (up 69% from FY 2021). Net loss: CA$11.2m (loss narrowed 46% from FY 2021). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Specialty Retail industry in Canada. Board Change • Nov 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Independent Director Ron Hozjan is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 09
Third quarter 2022 earnings released: CA$0.03 loss per share (vs CA$0.11 loss in 3Q 2021) Third quarter 2022 results: CA$0.03 loss per share (improved from CA$0.11 loss in 3Q 2021). Revenue: CA$58.9m (up 52% from 3Q 2021). Net loss: CA$1.54m (loss narrowed 75% from 3Q 2021). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Specialty Retail industry in Canada. Duyuru • Nov 03
Nova Cannabis Inc. to Report Q3, 2022 Results on Nov 07, 2022 Nova Cannabis Inc. announced that they will report Q3, 2022 results at 4:00 PM, US Eastern Standard Time on Nov 07, 2022 Major Estimate Revision • Aug 18
Consensus estimates of losses per share improve by 40% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CA$255.1m to CA$259.4m. EPS estimate increased from -CA$0.15 per share to -CA$0.09 per share. Specialty Retail industry in Canada expected to see average net income decline 5.7% next year. Consensus price target down from CA$3.25 to CA$2.25. Share price fell 14% to CA$1.01 over the past week. Breakeven Date Change • Aug 15
Forecast to breakeven in 2024 The analyst covering Nova Cannabis expects the company to break even for the first time. New forecast suggests the company will make a profit of CA$2.00m in 2024. Average annual earnings growth of 89% is required to achieve expected profit on schedule. Reported Earnings • Aug 12
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: CA$0.02 loss per share (up from CA$0.12 loss in 2Q 2021). Revenue: CA$56.3m (up 90% from 2Q 2021). Net loss: CA$1.37m (loss narrowed 81% from 2Q 2021). Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) exceeded analyst estimates by 67%. Over the next year, revenue is forecast to grow 38%, compared to a 13% growth forecast for the industry in Canada. Duyuru • Aug 04
Nova Cannabis Inc. to Report Q2, 2022 Results on Aug 11, 2022 Nova Cannabis Inc. announced that they will report Q2, 2022 results at 4:00 PM, US Eastern Standard Time on Aug 11, 2022 Recent Insider Transactions Derivative • May 18
CEO & Director exercised options to buy CA$43k worth of stock. On the 12th of May, Marcie Kiziak exercised options to buy 33k shares at a strike price of around CA$1.50, costing a total of CA$50k. This transaction amounted to 196% of their direct individual holding at the time of the trade. Marcie currently holds less than 1% of total shares outstanding. This was the only transaction from an insider over the last 12 months. Reported Earnings • May 10
First quarter 2022 earnings released: CA$0.06 loss per share (vs CA$0.058 loss in 1Q 2021) First quarter 2022 results: CA$0.06 loss per share (down from CA$0.058 loss in 1Q 2021). Revenue: CA$49.8m (up 171% from 1Q 2021). Net loss: CA$3.53m (loss widened 59% from 1Q 2021). Over the next year, revenue is forecast to grow 91%, compared to a 15% growth forecast for the industry in Canada. Duyuru • May 07
Nova Cannabis Inc. to Report Q1, 2022 Results on May 09, 2022 Nova Cannabis Inc. announced that they will report Q1, 2022 results After-Market on May 09, 2022 Price Target Changed • Apr 27
Price target increased to CA$5.50 Up from CA$5.00, the current price target is provided by 1 analyst. New target price is 224% above last closing price of CA$1.70. Stock is down 30% over the past year. The company posted a net loss per share of CA$0.39 last year. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Ron Hozjan is the most experienced director on the board, commencing their role in 2018. Lead Independent Director Anne Fitzgerald was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Aug 18
Second quarter 2021 earnings released: CA$0.12 loss per share (vs CA$0.10 profit in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CA$29.7m (up 86% from 2Q 2020). Net loss: CA$7.02m (down CA$8.40m from profit in 2Q 2020). Duyuru • Jun 03
Nova Cannabis Inc. (TSXV:NOVC) signed an agreement to acquire Six retail store locations in Ontario. Nova Cannabis Inc. (TSXV:NOVC) signed an agreement to acquire Six retail store locations in Ontario on June 2, 2021. All six of these stores have received RSAs from the AGCO and will open to the public upon receiving approval to open from the AGCO.