The cannabis-delivery company that once said it planned to deliver $1 billion worth of cannabis in 2020 is now headed for a much smaller target: less than $500 million.
Eaze Technologies Inc. will sell roughly $412 million worth of pot across its platform in 2020, based on documents obtained by MarketWatch, a fraction of the audacious expectations in the company’s previous funding round. The fresh documents are part of a fundraising round in which Eaze is attempting to raise up to $50 million with a fully diluted pre-money valuation of between $350 million and $400 million.
“There is overwhelming interest to have us come in and talk about the deal,” David Mack, Eaze’s senior vice president of communications, told MarketWatch by phone. “We’re not going to comment on the financials.”
Privately held Eaze at its core is delivery technology, offering on-demand service in dozens of large markets across California. It’s in something of an enviable position as a delivery platform — restrictive local laws have limited the number of bricks-and-mortar retail stores, allowing Eaze to satisfy demand away from pot shops and grow into one of the largest distribution platforms in the state.
Eaze scaling back its ambitious projections comes amid somewhat of a reckoning in the cannabis sector. Pot companies have made bold promises about the riches they will obtain selling weed, but the first batches of earnings have largely disappointed investors — Tilray Inc.Aurora Cannabis Inc. and Aphria Inc.have all fallen from the Oct. 17 highs they enjoyed. And recently, Corona-maker Constellation Brands Inc.ousted the co-chief executive of the world’s largest pot company, Canopy Growth Corp. because it is looking to transform the pot company’s startup-like mentality.
That appears to be happening among privately held companies too. During this round of fundraising, Eaze did not provide the gross transaction value projections for 2020 that were included as a rough equivalent in the last round, though it did offer a projected gross transaction value of $205 million for 2019.
According to the documents, gross transaction value is the total value of transactions, including all fees to service providers.
Eaze’s sales are still growing strongly, according to financial information in the documents, but nowhere close to the rate it needed to reach its $1 billion projection. In the fourth quarter of 2018, the gross transaction value moving across its platform was $36 million, up from $15.2 million in the first quarter.
Eaze’s gross transaction value appears to be roughly three times projected revenue in 2019, suggesting that the company’s 2020 gross transaction value will be far less than $500 million.
The company’s revenue rose 83% to $8.8 million in the fourth quarter from $4.8 million in the first quarter, according to the materials.
Eaze’s losses are growing at an even more rapid pace, however. When MarketWatch received Eaze’s previous investor deck in 2017, the company was losing roughly $1 million a month. That rate has roughly tripled, with operating losses — “net burn,” according to the documents — of $13.1 million in the fourth quarter, widening from $11.7 million in the first quarter.
The San Francisco-based company recently began delivery tech services in Oregon as it looks to expand. As a part of the current 2020 projections, Eaze plans to launch in Michigan, Florida, Arizona and Colorado, according to the materials. It also offers an online shop for cannabidiol, or CBD, products that it ships to dozens of states.
The documents show Eaze is projecting it will bank second-quarter 2019 sales of $15.9 million, up from $10.7 million in the first quarter. For full-year 2019, it projects revenue of $68.9 million.
The company’s bankers are marketing shares for $8.02 to $9.16 each, according to the documents.
根据 MarketWatch 获得的文件， Eaze Technologies Inc .将在2020年在其平台上出售价值约4.12亿美元的大麻，这只是该公司上一轮融资大胆预期的一小部分。这些新文件是 Eaze 筹资回合的一部分，该轮筹资中， Eaze 正试图通过完全摊薄的3.5亿至4亿美元的资金前估值筹集至多5000万美元。
Eaze 负责沟通事务的高级副总裁戴维•麦晋桁( David Mack )通过电话向市场观察( MarketWatch )表示：“让我们进来讨论这笔交易，是绝对有兴趣的。”“我们不会对金融机构发表评论。”
Eaze 的核心是交付技术，在加州的几十个大市场提供按需服务。作为一个配送平台， Eaze 处于令人羡慕的地位——限制性的地方法律限制了实体零售店的数量，从而使 Eaze 能够满足远离罐装店的需求，并成长为该州最大的配送平台之一。
在大麻行业出现某种程度的算计之际，中国政府放宽了雄心勃勃的预测。Pot 公司对他们出售大麻所得的财富做出了大胆承诺，但第一批收益令投资者失望—— Tilray Inc 。奥罗拉（Aurora） Cannabis 公司。和 Aphria 公司。
全球最大的大麻公司 Canopy Growth Corp .的联席首席执行官被赶下台。
私人控股公司似乎也在发生这种情况。在本轮融资中， Eaze 没有提供上一轮融资中包含的2020年交易总值预测，尽管它的确提供了2019年交易总值2.05亿美元的预测。
文件中的财务信息显示， Eaze 的销售额仍在强劲增长，但远不及达到10亿美元预期所需的速度。2018年第四季度，其平台上移动的总交易额为3600万美元，高于第一季度的1520万美元。
然而， Eaze 的损失正以更快的速度增长。当 MarketWatch 在2017年收到 Eaze 的前一批投资者时，该公司每月损失约100万美元。这一比例大约增加了两倍，第四季度的运营亏损——文件显示，“净亏损”——为1310万美元，高于第一季度的1170万美元。
这家总部位于旧金山的公司最近开始在俄勒冈州提供技术服务，希望扩大业务。这些材料显示，作为目前2020年预测的一部分， Eaze 计划在密歇根州、弗洛里达州、亚利桑那州和科罗拉多州上市。它还提供了一家网上商店，以供运送到几十个州的大麻，或 CBD 产品。
文件显示， Eaze 预计2019年第二季度销售额将达到1590万美元，高于第一季度的1070万美元。2019年全年，该公司预计收入为6890万美元。