On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) Earns BUY Rating, Coverage from Fundamental Research Corp

  • New report cites new management, very good customer ratings and record revenue in initiating CHAL coverage
  • Chalice Brands acquisition of Homegrown Oregon also noted
  • CHAL’s consistent increase in financial numbers key to BUY rating as well

A recent Fundamental Research Corp. report has initiated coverage of Chalice Brands (CSE: CHAL) (OTCQB: CHALF) with a BUY rating and a fair value estimate of C$2.46 (https://nnw.fm/0E80I). CHAL closed at C$1.37 on June 8, 2021.  Chalice is a leader in retail, marketing and craft cultivation supported by fully integrated processing and distribution.

“New management has demonstrated their ability by significantly growing the company’s revenue and margins in 2020,” the Fundamental Research Corp. report stated. “Another testimonial for the team is that all of their stores have very good customer ratings. We are expecting record revenue in 2021, driven by organic growth and the recent acquisition. We are also expecting a bump in valuations of U.S. cannabis players as the sector moves closer to federal legalization.”

As a basis for its BUY rating, the report noted the management overhaul, which includes key team members from Fortune 25 companies and brings experiences from companies such as Microsoft (NASDAQ: MSFT), Kraft Foods (NASDAQ: KHC), Dell (NYSE: DELL), Merrill Lynch and PepsiCo (NASDAQ: PEP) to Chalice. The report also cited the company’s seven retail stores in Oregon, which accounted for 90% of the company’s 2020 revenues. 

In addition, “the company recently announced it acquired a five-store retail chain, ‘Homegrown Oregon,’ valued at US$9.75M,” the report observed. “Homegrown had $2.7M in revenue and $364K in adjusted EBITDA for the quarter ended March 31, 2021, per management. The implied EV/R of the transaction is 0.9x vs the peer group average of 4x.”

The report also pointed to CHAL’s 2020 revenues, which were $22 million, a 39% year-over-year increase through organic growth, as well as the fact that its Q4 2020 numbers noted positive EBITDA. “In Q1 2021, revenue increased 18% YoY to $5.5M,” the report continued. “EBITDA was positive in Q1 2021 as well. In 2021, CHAL raised C$13.75M through private placements.”

Finally, the report noted that both the Oregon and California cannabis market saw record sales in 2020, with Oregon reporting $1.1 billion in sales and California posting $4.4 billion in sales, a year-over-year increase of 38% and 57% respectively. “U.S.-based cannabis stocks are currently trading at a discount over their Canadian peers,” the report stated. “We expect this trend to change with federal legalization in the U.S. and anticipate CHAL to directly benefit. We are expecting record revenue for CHAL in 2021. Management is targeting to capture 5% of the Oregon retail cannabis market, which we believe is a feasible target.”

Chalice Brands is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with seven dispensaries in Portland, Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Chalice operates nationally through Fifth and Root and has operations in Oregon and California. 

For more information, visit the company’s website at www.ChaliceBrandsLtd.com

NOTE TO INVESTORS: The latest news and updates relating to CHALF are available in the company’s newsroom at https://nnw.fm/CHALF

About NetworkNewsWire

NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)

For more information, please visit https://www.NetworkNewsWire.com

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

NetworkNewsWire (NNW)
New York, New York
212.418.1217 Office

NetworkNewsWire is part of the InvestorBrandNetwork.


Select A Month

NetworkNewsWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 212.418.1217