A week with mixed performance among cannabis stocks came with a wide array of news.
Canopy Growth Corp. (NYSE: CGC) CFO Mike Lee joined the board of directors of Canopy Rivers Inc. (TSX: RIV) (OTC: CNPOF). Prior to Canopy Growth, Lee served as the company's vice president of finance. Before that, he spent more than five years working at beer and spirits manufacturer Constellation Brands, Inc. (NYSE: STZ).
A study by Oasis Intelligence suggested 76% of the 20,000 cannabis consumers polled support the removal of felony records for cannabis offenses.
On the flip side, Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) confirmed co-founder Steve Dobler will no longer serve as the company's president and director effective June 30.
Perrigo Company PLC (NYSE: PRGO), one of the world’s largest producers of over-the-counter self-care products, is entering the CBD business. Perrigo will acquire an equity stake of roughly 20% in Kazmira for $50 million.
A total of $15 million will be paid upon the closing of the transaction, with the balance due within an 18-month period.
The company said the move will be enabled by a strategic minority investment and long-term supply deal with hemp-based CBD producer Kazmira LLC.
On Monday, Canadian CBD extraction company Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) launched an electronic device that monitors the oxygen saturation levels and pulse rate of patients. The company claims that its new pulse oximeter — developed by the company's health and wellness innovations division — is essential in the fight against coronavirus.
Over the five trading days of the week:
• The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 1.5%.
• The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): rose 1.7%.
• The Cannabis ETF (NYSE: THCX): tumbled 4.7%.
• The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 1.7%.
Benzinga Cannabis content is now available in Spanish on El Planteo.
Charlotte's Web Holdings Inc. (OTC: CWBHF)(TSX: CWEB) completed the acquisition of Abacus Health Products Inc. (CSE:ABCS). Benzinga’s Anthony Noto spoke with CEO Deanie Elsner. Check out the story "Charlotte's Web Snares Abacus, CEO Looks Forward To 'B Market Opportunity.'"
We saw MedMen's (OTC: MMNFF) founders ousted from the company’s board of directors and Acreage Holdings Inc. (CSE: ACRG) (OTC: ACRGF) securing $15 million in financing under less-than-favorable conditions.
“We're continuing to see more disruption within the industry. MedMen booted the founders from the company's board of directors and Acreage took a financing deal that was probably worse than a payday loan,” Debra Borchardt, editor-in-chief of Green Market Report, told Benzinga. “I expect that as we get further into 2020, more big players will crumble and new leaders will step up.”
4Front Ventures Corp. (CSE: FFNT) (OTC: FFNTF) reported a major year-over-year sales spike, including “total systemwide pro forma sales" of $63.5 million for 2019, up 786% year-over-year. For the fourth quarter, 4Front posted a 525% year-over-year increase in sales, reaching $17.5 million. IFRS Sales increased by 361% during the same period, to $12.9 million.
First-quarter revenue for Fire & Flower Holdings Corp. (TSX: FAF) (OTC: FFLWF) spiked 142% year-over-year, generating CA$23.1 million (US$17 million) at a gross profit of 38.5%.
Vireo Health International Inc. (CSE: VREO) (OTC: VREOF) released first-quarter financial results, with revenue of $12.1 million, up 110% year-over-year.
Also reporting earnings this week were High Tide Inc.(CSE: HITI) (OTC: HITIF) and Decibel Cannabis Company Inc. (TSXV: DB) (OTC: DBCCF).
See all details on cannabis earnings in Benzinga’s cannabis earnings center.
Biopharmaceutical and psychedelics research company Mind Medicine Inc. (NEO: MMED) (OTC: MMEDF) announced Thursday that it will begin studying DMT’s effects on humans in a Phase 1 clinical trial conducted in collaboration with University Hospital Basel in Switzerland.
California Street Cannabis and Weekenders Cannabis, in partnership with the Brownie Mary Democratic Club, launched an all new HIV+ Compassion Program. Serving HIV+ low-income individuals in San Francisco, this program provides free cannabis product to those in need.
The city of Portland, Oregon named Dasheeda Dawson as its new cannabis program supervisor.
Along with overseeing Portland’s cannabis regulations and licensing, the cannabis program also administers the city’s social equity grants, which provide funding to support neighborhood small businesses, especially women-owned and minority-owned businesses, and provides economic opportunity and education to communities disproportionately impacted by cannabis prohibition.
“Understanding the role marijuana prohibition has played in my own life has fueled my global cannabis strategy, education and advocacy work for the past four years. I look forward to actively collaborating with all partners and stakeholders to continue building and elevating both the cannabis community and the City of Portland,” Dawson said in her welcome statement to agency partners.
Curaleaf (OTC: CURLF) launched its Select brand products in Connecticut this week. The brand, which was acquired by Curaleaf in February, is continuing to expand across the country in the 17 states where Curaleaf operates.
"Curaleaf is dedicated to prioritizing the wellbeing of our patients by continuing to develop safe, consistent and quality cannabis oil," said Curaleaf President Joe Bayern. “We look forward to working with local Connecticut dispensaries and providing medicine to qualifying patients, now including those suffering from chronic pain and Ehlers-Danlos Syndrome.”
Alt36, a compliant payments processor specifically targeting dispensaries and other customer-facing businesses in the cannabis market, partnered with Drop Delivery, an all-in-one delivery management platform, to alleviate many of the payment and compliance issues facing cannabis companies.
"We are excited to partner with a sophisticated technology company like Alt Thirty Six. Our mission is to help cannabis retailers deliver more not only in sales but in the overall shopping experience they provide and this is made even more possible with Alt Thirty Six," Drop Delivery CEO Vanessa Gabriel told Benzinga.
"Now our client's customers will be able to easily pay straight from the app making it easy, convenient, and most of all safe."
Open Book Extracts, a processor of cannabinoid products, has acquired Chilmark Labs, a minor cannabinoid processor, and its Israeli research affiliate, Beetlebung Pharma Ltd.
The acquisitions put Open Book Extracts in a position to become a leader in function-specific, research-driven cannabinoid ingredients and products. In addition, the purchases align with the shift in consumer preference from a single-cannabinoid products like isolated CBD oils to a combination of cannabinoids — CBN, THCV, CBC and CBDV — believed to enhance the efficacy and therapeutic potential of products in conditions ranging from inflammation to anxiety to insomnia, said CEO Dave Neundorfer.
“The Chilmark team has spent over three years developing and refining their large-scale, minor cannabinoid processing methods,” he said. “We are excited to incorporate their all natural process to bring 99%+ pure and solvent-free cannabinoids to market, a feat for OBX and the industry writ large.”
High Grade Hemp Seed, a Colorado-based hemp genetics company committed to farming top-quality, consistent strains of hemp, secured a distribution partnership with Switzerland-based Swiss Cannabinoid, making its entire catalog of cultivars available internationally.
The partnership facilitates access to previously difficult-to-obtain premium genetics, and creates a pathway for easier and faster fulfillment and shipping throughout Europe.
Entering into international markets, especially in the early stages of the hemp industry, "has its share of challenges," said High Grade Hemp Seed CFO Isaac Cohen.
"But, we are also positioning ourselves to help shape the supply chain, influence policy and develop operational standards that are the markers of a mature market."
Body and Mind Inc. (OTC: BMMJ) (CSE: BAMM) finalized a licensing production agreement with cannabis accessory and CBD line Her Highness.
Investment company Red White & Bloom Brands Inc. (CSE: RWB) (OTC: TDRYD) began trading on the OTCQX Best Market on Thursday.
Top Stories Of The Week
Check out the top stories on Benzinga Cannabis this week:
Check out these and many other cannabis stories on Benzinga.com/cannabis
Events Calendar
Benzinga will be hosting a virtual Cannabis Capital Conference in August. Check out details here.
June 25: Conscious Capitalism, a movement with chapters in 14 countries, all focused on business that elevates humanity, is hosting a webinar titled “Conscious Cannabis: Business As A Force For Good.”
At 3 p.m. EST, panelists Al Harrington (Viola Brands), Gaynell Rogers (Treehouse Global Ventures), Marc Gare (co-founder Advanced Grow Labs, now The Gare Group) and Melany Dobson (Hudson Hemp) will speak to industry trends now through the lens of advocacy, investing, medical access and environmental impact. Register here.
Lead image by Ilona Szentivanyi. Copyright: Benzinga.
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