Business

The Week In Cannabis: PA, MD, Big Tobacco, GTI, Sundial, MedMen, Earnings, Financings And More

April 30, 2021

Cannabis shares traded largely within the inexperienced this week, as we bought into earnings season.

“While there were a lot of companies reporting earnings, like Turning Point Brands who gave guidance of $422 million for 2021, I thought the biggest piece of data came from Pennsylvania,” Debra Borchardt, editor-in-chief of Green Market Report, instructed Benzinga. “The state reported that in one year it had sold over $900 million in medical marijuana. This demonstrates the demand for cannabis in this state and bodes well for any future adult-use legalization. This is also a big number when one considers that the program has only just gotten underway.”

And, whereas Pennsylvania gross sales surpassed $900 million in a single 12 months, Maryland gross sales lastly hit $1 billion, greater than three years after the medical hashish program launched in December of 2017.

Meanwhile, the Swiss-American multinational Philip Morris International Inc. (NYSE: PM), maker of Marlboro cigarettes, stated it is contemplating moving into the hashish business. The firm is at the moment analyzing key parts of the business, such because the “toxicity of cannabis, efficacy and differences between pharmaceutical and consumer options.”

CEO Andre Calantzopoulos reportedly stated, “We are doing all this work and will determine one day what avenues to pursue… But our priority is what we’re doing with our smoke-free products, and that’s where I would stay on cannabis.”

Benzinga Cannabis’ content material is now accessible in Spanish on El Planteo.

This isn’t the primary foray of massive tobacco into the hashish business. In 2018, Altria Group, Inc. (NYSE: MO) invested CA$2.Four billion ($1.Eight billion) in Cronos Group, Inc. (NASDAQ: CRON), and solely final month, British American Tobacco PLC (NYSE: BTI) confirmed a CA$221-million funding in OrganiGram Holdings, Inc. (NASDAQ: OGI)

ETFs posted largely constructive performances. Over the 5 buying and selling days of this week:

The ETFMG Alternative Harvest ETF (NYSE: MJ): gained 1%.
The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): superior 2.8%.
The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): rose 6.7%.
The Cannabis ETF (NYSE: THCX): was up 1.8%.
The Amplify Seymour Cannabis ETF (NYSE: CNBS): was down 0.37%.
The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the week nearly flat.

On the coverage entrance, U.S. lawmakers launched a bipartisan, bicameral invoice to check the varied impacts of state-legalized hashish packages. The invoice would assess each medical and leisure hashish packages and their financial, public well being, prison justice and office results.

The research would additionally have a look at income streams generated by authorized marijuana markets, how the income is used and the way it impacts state budgets.

Aside from monetary metrics, the research would have a look at consumption amongst inhabitants teams, medicinal utilization and the affect of hashish on the opioid disaster.

Policy, Science And Data

According to a latest report from the Brightfield Group, the U.S. hashish market is about to achieve $30.6 billion by 2025.

In Florida, two companies trying to open medical hashish dispensaries in downtown Miami have filed lawsuits in opposition to the town, which has refused to authorize dispensary openings, even supposing the state legalized medical hashish in 2016 by the use of a constitutional modification that was handed with a 71% approval price.

Texas continues to ease restrictions for its medical hashish program. This week, a number of cannabis-related measures had been authorised within the House, together with a proposal to analysis the potential of psychedelics comparable to psilocybin and MDMA and to develop the state’s medical hashish program by including extra qualifying circumstances to the record.

Under this invoice, the Department of State Health Services would add most cancers, power ache and post-traumatic stress dysfunction (PTSD) to its record of qualifying circumstances. It may additionally increase the THC cap for medical hashish merchandise from 0.5% to five%.

Financings And M&A

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) raised $217 million to retire its present $105-million senior secured debt due May 2023, finalizing a senior non-brokered personal placement financing by way of the issuance of senior secured notes.

Sundial Growers Inc. (NASDAQ: SNDL) upped its monetary dedication to SunStream Bancorp Inc. to $188 million – from the beforehand introduced $100 million.

Back in March, the corporate first introduced it has agreed to ascertain a 50/50 three way partnership with the SAF Opportunities LP (a member of the SAF group) by way of a brand new company, SunStream Bancorp. The three way partnership was created with a objective to provide funding alternatives within the hashish sphere, by providing publicity to engaging debt, fairness, and hybrid investments.

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) canceled warrants to accumulate 97,785,140 Class B Subordinate Voting Shares of the corporate. The transfer comes after two consecutive quarters of constructive retail money move.

Ascend Wellness Holdings, Inc. is poised to go public by an preliminary public providing of some 10 million shares of its Class A typical inventory at $Eight per share, for complete gross proceeds of $80 million.

The firm expects to shut the providing after which debut on the Canadian Securities Exchange on Tuesday, May Four underneath the ticker image “AAWH.” An OTCQX Best Market itemizing can also be anticipated.

Also this week, Ascend opened a brand new retailer in downtown Boston.

Acreage Holdings, Inc. (OTCQX: ACRGF) offered its Florida operations to Red White & Bloom Brands, Inc. (CSE: RWB) (OTCQX: RWBYF) for $60 million in money, inventory and vendor take-back promissory notes.

Columbia Care, Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) acquired a 34-acre cultivation facility in Long Island, New York in a $42.5-million stock-and-cash deal.

The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) is poised to take over Green Roads in a cash-and-stock transaction valued at $40 million.

Headset raised $1.825 million in a spherical led by Silverleaf Venture Partners. WGD Capital, L.P. and Poseidon additionally participated within the financing.

IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC)’s Israeli subsidiary, IMC Holdings Ltd., will purchase a buying and selling home and in-house pharmacy actions from the Panaxia Labs Israel, Ltd. group of firms for $7.2 million.

Acquired Sales Corp. (OTCQX: AQSP) subsidiary Lifted Made and Savage Enterprises partnered to create an equally-owned new entity referred to as LftdXSvg LLC to make and promote merchandise containing hemp-derived THCV (tetrahydrocannabivarin).

Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) (FSE: A9KN) and Red Light Holland Corp. (CSE: TRIP) (FSE:4YX) (OTC: TRUFF) are forming a 50/50 three way partnership.

Red Light Oregon, Inc. is poised to maintain monitor of regulatory updates associated to Oregon’s Measure 109, in addition to kind a administration workforce and develop a commercialization technique. It will likely be funded with $50,000 from every celebration.

Medical hashish tech accelerator TechforCann Europe raised 2.5 million euros ($three million) from Malta Enterprise, the island’s governmental innovation company.

Earnings Reports

Harborside Inc (CSE: HBOR) (OTCQX: HBORF) reported that gross income grew by 29.4% year-over-year to roughly $63.Four million in fiscal 2020. Adjusted EBITDA got here in constructive, at $7.Four million for a similar interval, in comparison with an $8.9 million loss in 2019.

Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) reported it has generated CA$128.1 million (CA$103.2 million) in income at a gross revenue of 35.5% in fiscal 2020. This represents 150% year-over-year development.

Adjusted EBITDA got here in constructive, at CA$20,000 for a similar interval, in comparison with a CA$16.three million loss within the fiscal 12 months ended February 1, 2020.

Namaste Technologies Inc. (TSXV: N) (OTCQB: NXTTF) stated that its gross income grew by 13% year-over-year to CA$6.15 million ($4.96 million) within the first quarter of 2021.

Net income for the primary three months of the fiscal 12 months amounted to CA$5.5 million, in comparison with CA$5.three million in the identical quarter of 2020, and CA$7.2 million within the prior quarter.

Growth Corp. (CSE: GAGE) generated $39.9 million in income at a gross margin of 30.8% in fiscal 2020, representing a 1,972% year-over-year improve.

The Ferndale, Michigan-based firm, led by veteran hashish business govt Bruce Linton, additionally disclosed that its fourth-quarter income spiked 615% over the identical interval to $10.5 million.

Turning Point Brands, Inc. (NYSE: TPB), maker of Zig-Zag papers, stated fourth quarter web gross sales grew by 31.2% to $105.three million. Net revenue rose from $25.Zero million to $12.7 million.

Guidance was additionally sturdy. The firm stated it expects web gross sales of $412 to $432 million for 2021.

Find all the small print on these and different earnings studies on Benzinga Cannabis’ Earnings Center.

Other News

The U.S. Department of Agriculture (USDA) entered into a brand new settlement with a chemical manufacturing firm, Midwest Bioprocessing Center (MBC) to assist develop the hemp seed oil-based beauty market.

TIME revealed its first-ever “TIME100 Most Influential Companies” record that highlights companies making a rare affect all over the world. Included within the record was none aside from Tilray Inc (NASDAQ: TLRY).

“Irwin Simon was best known for creating a health-food giant before signing on to head Aphria, a cannabis company based in Canada, where recreational marijuana is legal. Separately, Brendan Kennedy went to Nanaimo, British Columbia, to launch Tilray after co-founding a private-equity firm to buy cannabis startups. Now they’re merging the two to form the world’s largest cannabis company by annual revenue—more than $685 million,” stated the journal.

CBDistillery and Releaf app introduced a strategic partnership for 2021. Together, the businesses will analyze the efficacy of CBDistillery’s product catalog in addressing signs of stress, sleep, bodily ache/discomfort, and anxiousness. The first two research targeted on stress and sleep are accepting 1,000 volunteers for enrollment. Participants will obtain merchandise at no cost.

Tony Schwartz, director of strategic partnerships at CBDistillery, instructed Benzinga, “The alignment between Releaf app and CBDistillery is ideal in that we both are vested in providing consumers with trustworthy, objective, and reliable information on their journeys with CBD, CBG, and CBN.”

CanaQuest Medical Corp’s (OTC: CANQF) Mentanine demonstrated not less than 10-times (10X) the efficacy in comparison with “Pharma Grade CBD” in preclinical trials undertaken by CanaQuest’s analysis companion in Ontario, Canada, Western University. Neuroscientist Dr. Steven Laviolette and his 13-member college analysis workforce managed the preclinical trials, which proved to be statistically important.

“Our CBD-based Mentanine discovery works synergistically and has multiple times the efficacy compared to pure CBD products on the market. Evidence found that this formulation targeted a specific nuclear cellular receptor involved in anti-inflammatory mechanisms indicating that this formula may also treat inflammatory disorders,“ Western University neuroscientist Dr. Steven Laviolette told Benzinga.

Abaca announced a partnership with Staley Technologies and CIMA with the goal of digitizing cash management. The partnership delivers an integrated solution to cannabis operators, financial controllers, and CFOs with secure cash custody processes and real-time visibility on company cash across the organization.

“Abaca’s proud to offer a tech-forward solution to one of the last remaining analog aspects of the industry. Whether you are a multistate operator or a single dispensary, our partnership with Staley and CIMA brings our clients a seamless solution,” Abaca chief strategy officer Brian Bauer told Benzinga. “Authorized employees across the organization can log into Abaca Online Banking and see a real-time cash position and transaction log, in addition to being able to manage financial operations and send money.”

GCorp, a management and consulting services company founded by New York’s philanthropic Gilder Family, and Grow Industries Inc. (formerly ClimaGrow) entered into a definitive agreement, pursuant to which the Grow Industries brand will join GCorp’s portfolio of services.

Grow Industries founder Jesse Elkins told Benzinga, “Our industry is rapidly expanding, which means that operators need to overcome unique barriers, such as limited resources, finite bandwidth capacity and a lack of topic experts across the value chain. Our services at Grow Industries give MSOs, licensed producers and cannabis brand specialists the financial and technical solutions needed to thrive in both the short and the long term. The glaring marketplace gap between supply and demand for true, quality cultivation and manufacturing facilities is where we come in, allowing our clients to get that leg up they are looking for and take things to new heights.”

C3 Industries introduced its High Profile Grand Rapids location has transformed from medical to adult-use. CEO Ankur Rungta defined, “With the Michigan adult-use market hitting record sales in March, we’re thrilled to now offer our curated selection of premium cannabis products at High Profile to recreational consumers in Grand Rapids, Kentwood and Wyoming. Whether long-time cannabis connoisseurs or new to the plant, our experienced budtenders can help consumers find the best products to fit their needs and desires. As Michigan is our home, we look forward to bringing six more High Profile locations to the state throughout 2021, expanding convenient access to quality flower and products as demand continues to surge.”

Executive Moves

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