The Week In Cannabis: CannTrust Continues Fall, Earnings A Mixed Bag, Clio Goes Green

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CannTrust Holdings Inc (NYSE: CTST) plummeted last week after issuing a press release acknowledging it hat failed a Health Canada inspection in July. The company said it accepts the findings and is already taking actions to fix its wrongdoings.

Meanwhile, Greenlane Holdings, Inc. (NASDAQ: GNLN) posted a net sales increase of 30.6% in the second quarter of 2019, with sales totaling $53 million, and Canopy Growth Corp (NYSE: CGC) tumbled after reporting an adjusted EBITDA loss of CA$92 million ($69.1 million), up from CA$22.5 million ($16.8 million) last year. Canopy's first-quarter net loss rose from CA$90.9 million a year ago to CA$1.281 billion.

Commenting on Canopy’s results Patrick Sanders, assistant managing editor for investing at U.S. News & World Report, told Benzinga, “The markets overreacted when CGC reported losing more than $1 billion in the last quarter. It was a sexy headline and made for a great talking point, but the reality is that investors and analysts should be expecting these big losses now. Canopy is spending lots of money paying off its investment in Constellation Brands, building out its infrastructure and making sure it will be a leader as the U.S. market as more states legalize marijuana use. That’s exactly what it should be doing if it’s going to get a piece of the projected $20 billion market the U.S. will offer in by 2024.

“Moving forward, investors should be looking at three things when they consider CGC stock: how quickly it is increasing sales; how quickly it is increasing its harvest, and who will be the permanent CEO. I think the next two quarters are going to be pivotal for Canopy Growth.”

For its part, Tilray Inc (NASDAQ: TLRY) reported second-quarter revenue of $45.9 million, up 371% year-over-year, beating the consensus estimate of $41.1 million. The revenue increase was driven by the acquisition of hemp foods manufacturer Manitoba Harvest, legalization of adult-use marijuana in Canada, and growth in international medical markets.

On Thursday, Benzinga hosted in Cannabis Capital Conference in Detroit, Michigan. Find a comprehensive list of takeaways below, in addition to wo big announcements:

  • Jeffrey Radway, CEO and co-founder of Green Peak Innovations, announced the company is partnering with Short's Brewing Company to bring CBD-infused beer and edibles to market. Green Peak is Michigan’s largest cannabis grow operation.

  • Two former Detroit Lions, Calvin Johnson and Rob Sims, announced they will be working with Harvard University in the hopes of increasing the understanding of the role cannabis may play in treating the debilitating the brain damage that strikes many football players.