Despite some good news out of specific companies, this was not a great week for cannabis stocks overall.
Over the five trading days of the week:
- ETFMG Alternative Harvest ETF (NYSE: MJ): had lost 4.5%.
- AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was mostly flat.
- Cannabis ETF (NYSE: THCX): had dropped 2.9%.
- Amplify Seymour Cannabis ETF (NYSE: CNBS): had declined 2.7%.
- SPDR S&P 500 ETF Trust (NYSE: SPY) was down 0.2%.
The big news this week came out of U.S. Congress. A measure included in a package of amendments to the National Defense Authorization Act (NDAA) stipulated that the Secretary of Defense may not prohibit “the possession, use, or consumption” of hemp or hemp-derived product (including CBD) to a “member of the Armed Forces” as long as the crop meets federal standards.
Meanwhile, the U.S. Food and Drug Administration issued a nine-page document to lead and encourage cannabis research. The document expands on the FDA’s position regarding clinical research linked to the development of new drugs containing cannabis or cannabis derivatives. This includes extracts, botanical raw materials, and highly purified substances. It does not address the development of synthetic substitutes know as cannabis-related compounds.
In the corporate world, the news was dominated by Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF), which secured an additional CA$6. 8 million (US$5 million) in financing through the second tranche of its private placement offering announced earlier this month. The total value of the placement surged to CA$34.06 million.
Also this week, the company closed its acquisition of Grassroots, naming its founder and CEO Mitchell Kahn to Curaleaf’s board of directors.
“With so many acquisitions getting terminated it was refreshing to see Curaleaf close its deal with Grassroots. They are quickly rising to the top of the charts for cannabis company revenue,” Debra Borchardt, Editor-In-Chief of Green Market Report, told Benzinga.
LeafLink announced that its supply chain financing solution, LeafLink Financial, received a $250 million senior secured credit facility from a private commercial lender.
This investment is one of the largest debt financing deals ever completed in cannabis.
Benzinga Cannabis’ content is now available in Spanish on El Planteo.
Bio-pharma company MGC Pharmaceuticals (ASX: MXC) (OTCPK: MGCLF) entered the Australian market through the acquisition of Medicinal Cannabis Clinic (MCC) for $1.4 million.
Cannabis REIT Innovative Industrial Properties Inc. (NYSE: IIPR) acquired two properties in New Jersey, just a week after it purchased a property in Blue Anchor for $5.5 million. The San Diego company entered into long-term triple-net leases with Columbia Care Inc.’s (CSE: CCHW) (OTCQX: CCHWF) subsidiaries for both properties, which will be sold at $12.4 million.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) posted its third-quarter results for fiscal 2020, including a year-over-year revenue drop of around 27% to $18 million.
Earlier this month, the company laid off 220 employees.
Driven Deliveries Inc.(OTCQB: DRVD) said its revenue increased by 158% sequentially, reaching $5.6 million in the second quarter of 2020.
Namaste Technologies Inc. (TSXV: N)(OTCQB: NXTTF) disclosed that the net segment revenue for CannMart, its wholly owned subsidiary, spiked around 1500% year-over-year to CA$2.4 million (US$1.8 million). Compared to the previous quarter, CannMart’s revenue increased by 82%, the company said Friday.
The Toronto-based company also reported its overall net revenue amounted to CA$6.9 million in the second quarter of fiscal 2020, up by 73% compared to the same quarter last year.
More on this week’s results at Benzinga Cannabis’ Earnings Center.
Vertical Wellness continues to expand despite the daunting challenges being faced amid the unprecedented coronavirus pandemic and current economic downturn.
The company, faced with its own challenges, inked several partnerships aimed at establishing itself as a leader in the hemp and CBD industry.
Vertical Wellness expanded its strategic processing and extraction partnership with GenCanna. As part of the agreement, GenCanna will deliver more than 15 million pounds of unprocessed hemp to Vertical Wellness’ production facility in Cadiz, Kentucky.
In addition, Vertical acquired Tech Holdings, a company that invented and patented a procedure that allows delivering cannabinoid ingredients in a way that makes them more effective and faster acting.
Finally, Vertical signed a licensing partnership with Kathy Ireland Worldwide for a CBD product line.
Red White & Bloom Brands (CSE: RWB) (OTC: RWBYF) agreed to acquire Platinum Vape in a transaction valued between $35 million and $60 million.
Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) received all regulatory approvals to commence the import, distribution, and commercialization of full-spectrum, high-CBD medical cannabis products to Peru.
EMMAC Life Sciences, one of Europe’s largest cannabis companies, announced its plans to go public in the U.S. It will list on the Nasdaq exchange through a merger with Andina Acquisition Corp. III (NASDAQ: ANDA) (NASDAQ: ANDAW) (NASDAQ: ANDAU).
Gage Cannabis opened its first recreational location in Adrian, Michigan. This provisioning center joins the four other medical dispensaries in Ferndale, Lansing, Traverse City and the Cookies Michigan location in Detroit.
“We are looking forward to the day when all of our locations can serve Michigan’s recreational customer,” said Dave Malinoski, Gage Cannabis license holder.
Read our weekly psychedelics news recap: ‘Psyched’: Atai Launches DMT Subsidiary, NeuroPharm Collaborates With Dutch University
Metrc earned a recognition from Great Places to Work, a global workplace culture company that uses proprietary surveys and benchmark data to certify companies as “great places” or “best places” to work through its platform and for other publications – such as Fortune’s – annual “best companies for…” lists. Metrc is the only cannabis or cannabis-related company to have earned this distinction.
CEO Jeff Wells told Benzinga, “Metrc strives to be nimble and fiercely protective of our workers who are continuing to work during these unprecedented times. We are proud to know the Metrc team – which has grown over 60% in the past year – trusts and values the direction of the company and our commitment to our state clients. Metrc has proven to be flexible, resilient, and capable of operating under increasingly difficult economic conditions all while protecting the safety and well being of our employees and customers. We are honored to receive this recognition not only from Great Place to Work, but our own staff.”
Greenlane Holdings Inc. (NASDAQ: GNLN) partnered up with NEO Plastics, a packaging company providing an entirely new sustainable solution for discarded plastics. This partnership will be exclusive to Greenlane customers, adding an environmentally friendly offering to Greelane’s existing packaging lines.
“We’re proud to partner with NEO plastics in a time of global demand for sustainable solutions in both the cannabis space and beyond. We’re honored for the opportunity to extend NEO’s forward-thinking packaging to our customers and help spread awareness about the world’s environmental needs,” said Aaron LoCascio, co-founder and CEO of Greenlane Holdings.
Catalyst Cannabis Co. is rebranding its current Connected Cannabis Southern California retail store chain. A previous licensing agreement enabling Catalyst Cannabis Co. to utilize the Connected International name is coming to end as Connected moves away from retail to concentrate on product driven initiatives in Southern California.
To celebrate the name change Catalyst hosted a safe socially distanced performance by The Luniz. The rap duo from Oakland, California, formed by Yukmouth and Numskul performed the 1995 hit “I Got 5 on It,” to coincide with their $5 eight promotions in all storefronts. Catalyst Cannabis Co. and Connected Cannabis will continue to work together on the product end still carrying the latest product and strain drops.
“Establishing the Catalyst name in the cannabis retail market is an important step in the expansion of our company. With the goal of continuing to open in cities across California, all Catalyst Cannabis Co. retail storefronts will continue to provide top of the line curated product at the lowest possible price point to the customers,” said Elliot Lewis, CEO of Catalyst Cannabis Co.
Catalyst Cannabis Co. will now be the featured name on all retail locations moving forward.
NuggMD announced is providing telemedicine services to patients in Ohio for $139. Normally Ohio bars the use of telemedicine for medical marijuana evaluations. This restriction has been lifted for the duration of the pandemic emergency orders.
“We are so happy to provide NuggMD telemedicine services in Ohio. With telemedicine being an incredibly valuable tool we are hoping that Ohio will see the benefit of having medical marijuana telemedicine services available for at-risk patients and continue these services for the long term,” said Alex Milligan, NuggMD co-founder and CMO.
Top Stories Of The Week
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Lead image by Ilona Szentivanyi. Copyright: Benzinga.
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