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Red or black: A roundup of cannabis financial news

Published on July 3, 2026 by Pat Bulmer

Photo: Contributed

Cannabis financial news: Canopy Growth makes gains; Mercanto does OK after pulling products; High Tide accelerates German timeline; Simply Solventless delays again

Recreational and medical sales up

Recreational and medical cannabis sales were both up — and by roughly equal amounts — in the fiscal year just ended for Canopy Growth.

Adult-use net revenue was up 20% in fiscal 2026 and medical net revenue rose 18% for the Smiths Falls, Ont. company.

Cannabis net revenue was $54.5 million in the fourth quarter and $213.9 million for the full year, increases of 20% and 15%, respectively, compared the prior-year periods, the quarterly and year-end financial statement reported.

Canadian medical cannabis net revenue in the fourth quarter was $25.3 million, an increase of 27% compared to the three months ended March 31, 2025. The increase was “driven by growth in the number of insured patients and a larger assortment of cannabis product choices offered to our customers.”

Full-year Canadian medical cannabis net revenue increased 18%.

Canadian adult-use cannabis net revenue in the quarter was $20.6 million, a rise of 1% over last year “due to strong performance in vapes and infused pre-roll joints.”

For the year, adult-use cannabis net revenue increased 20% “driven by growth in infused PRJ (pre-rolled joints) offerings and new All-In-One vaporizers launched early in the fiscal year.”

For the year, international markets cannabis net revenue decreased 7% “as the company addressed supply chain challenges in Europe experienced earlier in the fiscal year.”
Fiscal 2026 was also the year Canopy bought out MTL Cannabis.

“In fiscal 2026, we reset the business, laid a disciplined foundation, and made deliberate investments, including acquiring MTL Cannabis, that will drive the next phase of growth. We modernized our approach to innovation, and our business structure was optimized around a clear strategy,” said CEO Luc Mongeau. “As the leading medical cannabis business in Canada by revenue, we are well positioned to extend that leadership into Europe.”

“We took meaningful steps to reduce costs and focus resources where they can drive the best returns,” said CFO Tom Stewart.

The company has a large vapourizer business, Storz and Bickel, in Germany and sells medical cannabis in Europe and Australia.

Some additional numbers and spin:

— Net loss from continuing operations for the year  narrowed by 49% year-over-year. Net loss in the quarter  was 21% less than in 2025.

— Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $20.2 million for the year was $3.3 million or 14% less than in 2025. Adjusted EBITDA loss for the quarter was $6.3 million, an improvement of $2.9 million or 32% over the equivalent 2025 quarter.

— Consolidated net revenue for the year was $284.6 million, up 6% over a year ago. Consolidated net revenue of $71.2 million in the quarter increased 10% over a year ago.

Looking ahead, “the company expects to reach positive adjusted EBITDA during FY (fiscal year) 2027. With MTL Cannabis integration activities ongoing in the first half of 2027, the year-over-year improvements are expected to be more pronounced in the second half of the fiscal year,” the statement said.

Variety, Quebec focus work for Mercanto

A widespread cannabis portfolio helped Quebec’s Mercanto Holdings increase profits in the latest quarter, despite volatility in the vaping market and pulling some edibles off the shelves.

Quebec’s government-run retailer and wholesaler cut back on vaping orders after buying big quantities last fall in anticipation of a sales rush as products were sold in the province for the first time.

“Provincial orders pulled back while the launch inventory was drawn down,” said Mercanto CFO Scott Jardin in the latest financial statement.

Mercanto also suspended sales of its THC-infused beef jerky and saucisson products “as a sharp rise in Canadian meat prices would have required retail pricing the company was unwilling to pass on to purchasers,” the statement said.

“Notwithstanding these two category-specific headwinds, total revenue still grew approximately 38% year-over-year. Management attributes this resilience to the breadth of the company’s portfolio, which spans multiple cannabis categories — including vape cartridges and batteries, hash, capsules and infused edibles.”

Mercanto does most of its business in Quebec with some niche and medical products sold beyond.

“Management believes the data supports that focus. According to the Société québécoise du cannabis (SQDC), Québec cannabis sales reached approximately $809.5 million in the year ended March 28, 2026, up roughly 9% year-over-year, while national retail cannabis sales grew only about 4% in calendar 2025 and the two largest markets, Ontario and Alberta, were flat to lower.”

Mercanto said it is in a healthy position while other cannabis companies are struggling.

“The broader industry is consolidating, with cannabis-sector insolvency filings accelerating — frequently triggered by unpaid excise duty … The Canada Revenue Agency has now shifted from accommodation to enforcement … Management expects further bankruptcies and consolidation, and believes disciplined, profitable operators are positioned to capture a larger share of the market over time.” Mercanto is all paid up on its excise tax obligations.

Mercanto expects to launch a CBD 10 mg capsule in August 2026 and will have other products to unveil after participating in the province’s autumn product call.

Some numbers for the quarter ending April 30:

• Net revenue, after excise taxes, was $1.9 million, up approximately 44% from the same quarter a year ago
• Gross profit was $410,276, compared to $170,448 a year ago
• Net income was $119,493, compared to a net loss of $88,366 in the equivalent 2025 quarter
• Year-to-date (nine months ended April 30) revenue is $4.2 million, up approximately 55% from last year. Year-to-date net income is $145,212 compared to a net loss of $254,438 a year earlier;
• EBITDA for the quarter was $158,038;
• Cash on hand is $542,380, up approximately 108% over the same time last year;
• Mercanto has no long-term debt, other than lease liabilities.

German acquisition already fitting in

High Tide’s new German medical cannabis distributor is being integrated into the company faster than expected.

High Tide bought a majority share in Remexian in September and immediately began merging the two companies’ operations

“Through the continued integration of Remexian, we have expanded our supply chain capabilities, eliminated unnecessary intermediaries, and are procuring biomass at materially lower costs than Remexian could on its own, enabling us to achieve key operational and financial objectives approximately 90 days ahead of our internal expectations,” said High Tide CEO Raj Grover in a quarterly financial statement.

“Remexian is bringing premium Canadian medical cannabis products to German patients and pharmacies, further strengthening its position as a leading importer and distributor in one of the world’s fastest-growing medical cannabis markets,” High Tide said in another release that touted the companies’ appearances at the Mary Jane Berlin 2026 trade show.

“At the event, Remexian featured medical cannabis products from Tribal, Highly Dutch Organic, Weed Me, The Loud Plug, Joi Botanicals and Castle Rock Farms, highlighting its growing portfolio of exclusive brand distribution agreements and connecting these Canadian brands directly with pharmacies, healthcare professionals, patients and other key stakeholders across Germany’s rapidly expanding medical cannabis ecosystem,” the release said.

“Through Remexian, we are bringing some of Canada’s most recognized and in-demand cannabis brands directly to this growing patient base,” said Grover more simply.

Remexian distributed a record 7.6 tonnes of medical cannabis during the second quarter of 2026, marking the highest quarterly distribution volume in the company’s history, according to the statement.

In the financial report, High Tide revealed it now has 2.65 million members in its Cabana Club, up 39% from last year. High Tide owns 224 Canna Cabana stores across Canada after opening two recently in Calgary and Welland, Ont. Alberta-based High Tide also announced it is acquiring four retails stores in Ontario following its purchase of Northern Helm for $7.74 million. Final approvals are still pending. Most of High Tide’s stores are in Alberta and Ontario.

In the second-quarter financial report, High Tide reported:

— Revenue was a record $179.3 million for the three months ended April 30, compared to $137.8 million during the same period last year, an increase of 30%

— Gross profit was a record $48.4 million for the quarter, up 36% compared to the previous year’s quarter and up 9% from the last quarter.

— Adjusted EBITDA was a record $13.9 million. This was up 73% from last year.

— The company generated $1.5 million in free cash flow.

— Income from operations was a record $6.1 million. This was up 554% from last year, and up 157% from the first quarter of the year.

— Cash and cash equivalents totalled $36.5 million, compared to $34.7 million in the prior year.

— Canna Cabana maintained a 12% market share. “For the 12 months ended March 2026 … total Canna Cabana sales were up 13% during this period.”

— The company secured a $40 million in credit from the Bank of Montreal.

Financial report delayed again

Simply Solventless Concentrates is having trouble getting its latest financial numbers published.

The Calgary-based cannabis company’s 2025 year-end statement and quarterly statement for the first portion of 2026 were now expected to be filed by July 3, the company said in June 18 press release.

“The delay in completing and filing the annual filings and Q1 filings is due to management time constraints caused by the previously announced Companies’ Creditors Arrangement Act (Canada) proceedings involving the company’s wholly owned subsidiaries, ANC Inc., CannMart Inc. and Massive Hash Factory Ltd.,” the press release said. “The company continues to work diligently with its auditor to complete the outstanding audit matters in a timely manner.

Company management is barred from trading in shares until these financial obligations are met.

Red Deer-based CanadaBis Capital (aka StigmaGrow) is also in CCAA proceedings.