Cannabis companies in Canada benefited from millions of {dollars} in pandemic-related subsidies through the federal authorities, based on analysis by the publication the Deep Dive and verified by Marijuana Business Daily.

Other companies tapped into interest-free loans and lending supplied by the agricultural lender Farm Credit Canada (FCC), based on monetary statements.

At least 18 cannabis companies, starting from producers to extractors, collected over 25 million Canadian {dollars} ($19 million) from the federal authorities’s Canada Emergency Wage Subsidy (CEWS) program up to now.

The CEWS program offers a 75% wage subsidy for companies struggling a lower in revenues, and was initially retroactive to March 15.

The authorities has signaled it plans to increase CEWS to next summer.

In April, MjBizDaily reported that the subsidy might probably profit cannabis firms of all sizes, relying on their monetary conditions.

George Smitherman, CEO of business group Cannabis Council of Canada, stated cannabis companies accessing CEWS, “is encouraging evidence of companies responding to the remarkable challenges of COVID 19.”

“Preserving employment during a period of rapidly increasing operating costs was the objective and result of the Wage Subsidy Program.”

Canadian retail gross sales of adult-use cannabis reached a file of CA$256 million in September, implying an annualized market price roughly CA$three billion.

Despite that, many Canadian producers have misplaced appreciable quantities of cash in latest quarters, principally because of missteps, reminiscent of:

Most regulated cannabis corporations benefiting from the CEWS program have reported solely by means of June, so the general determine will rise in the approaching months with extra monetary disclosures.

The figures are taken from regulatory filings for publicly traded corporations, so the full quantity doesn’t replicate any subsidy received by privately-owned cannabis companies.

The high recipient of the CEWS program up to now this 12 months was the struggling Vancouver, British Columbia-based producer Zenabis.

Zenabis received nearly CA$6 million in authorities subsidies as of Sept. 30, based on a monetary disclosure. The firm recorded a internet lack of CA$30.Four million up to now this 12 months.

Another producer, Sundial, received CA$4.1 million.

“The company became eligible for the CEWS based on decreases in revenue during the three months ended June 30, 2020 and has received the subsidy for the periods June 6 to July 4, 2020, July 5 to August 1, 2020, August 2 to August 29, 2020 and August 30 to September 26, 2020,” it stated in a regulatory submitting.

Sundial noticed a internet lack of CA$142 million by means of the 9 months ended Sept. 30.

The federal authorities additionally offers lending through Farm Credit Canada.

Cannabis producer Canopy Growth elevated its revolving traces of credit score with Farm Credit Canada to CA$40 million this 12 months, up from CA$6 million in 2019.

It’s not recognized whether or not that capital got here from the company’s pre-pandemic portfolio or the emergency pandemic-related capability supplied to FCC by the federal authorities.

FCC’s mortgage to Canopy accounted for nearly a 3rd of its cannabis sector publicity.

The Crown company’s lending to the marijuana business sat at round CA$140 million as of September, which accounted for 0.24% of its complete portfolio, MJBizDaily beforehand reported.

Separately, Adastra Labs Holdings and Nextleaf Solutions each disclosed small loans from the Canadian authorities.

Matt Lamers is Marijuana Business Daily’s worldwide editor, based mostly close to Toronto. He might be reached at [email protected].

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