Remember last month, when users of Reddit’s popular WallStreetBets forum caused GameStop Corp. (NYSE: GME) to increase, creating a massive tightening in stocks. The group also directed AMC Entertainment Holdings Inc (NYSE: AMC).
This forced short sellers to buy more to avoid massive losses, driving stock prices to a meteoric rise.
Well, last week, your eyes were on cannabis.
Swaggy Stocks – a website that tracks ticker sentiment on WallStreetBets – noted Sundial Growers Inc (NASDAQ: SNDL), Tilray Inc. (NASDAQ: TLRY) and Aphria Inc. (NASDAQ: APHA) went along with the tour:
- Sundial jumped 79% on Wednesday
- Tilray increased 51%
- Aphria grew by 11%.
This was short-lived. On Thursday, Tilary fell 50%, Aphria fell 36% and Sundial closed 19%.
On Friday, Tilray shares closed down 9.83%, while Sundial closed down 12.61%. Aphria rose slightly by 0.36%.
Benzinga Cannabis content is now available in Spanish at El Planteo.
Other cannabis spikes
ETFs have burst. In the last five trading days:
- THE ETFMG Alternative Harvest ETF (NYSE: MJ): gained 70.73%
- THE AdvisorShares Pure Cannabis ETF (NYSE: YOLO): up 59.18%
- THE Cannabis ETF (NYSE: THCX): increased 84.6%
- THE Amplify Seymour Cannabis ETF (NYSE: CNBS): 99% advanced
- THE SPDR S&P 500 ETF Trust (NYSE: SPY) was up 5%.
Regulatory updates
Cannabis reform legislation in Minnesota is about to receive its first hearing on the Chamber’s Trade Policy and Finance Committee on Wednesday, February 17.
Cannabis business owners in Iowa you can get some financial relief if the Iowa Department of Public Health and the University of Iowa agree to reduce rates for medical marijuana patients and suppliers to $ 2,000 a year and establish an income tax deduction for expenses.
Colorado granted High Country Supply its first recreational marijuana delivery license. The company noted that it expects to start deliveries on March 1.
Wisconsin Governor Tony Evers will include marijuana legalization in his budget proposal to ensure “a controlled market and a safe product are available for recreational and medicinal users”. The program could earn about $ 165 million a year, starting in fiscal year 2023, he says.
New Jersey Governor Phil Murphy signed a bill that modifies penalties for carrying magic mushrooms. The new bill reduces the sentence for those caught with less than 30 grams of psilocybin mushrooms from up to five years in prison to just six months. Fines up to $ 35,000 would drop to $ 1,000. Previously, it was a third-degree crime. Now, less than 30 grams is considered an offense to a rowdy person.
South DakotaThe results of the November 3 vote were deemed unconstitutional by a judge. The decision is in line with disputes made by Governor Kristi Noem, who ordered a lawsuit to overturn the adult use portion of the voting results last month.
Financing and mergers and acquisitions
- Auxly Cannabis Group Inc. (TSXV: XLY) (OTCQX: CBWTF) raised $ 20 million as part of a share offering co-led by ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corp. Auxly plans to use the net proceeds collected for working capital and other purposes.
- Beam, which produces 100% THC-free CBD products, completed its $ 5 million Series A financing round led by C2 Ventures. The startup is also supported by Obvious Ventures, Camwood Capital and athletes, including Danica Patrick, Kevin Hayes and Brooks Laich. Several new investors, such as The Yard Ventures, Litani Ventures and Carter Comstock, have also chosen to join the effort.
- BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF), a cannabinoid-infused beverage manufacturer in Vancouver, has agreed to acquire Naturo Group Inc.
- Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) raised about CA $ 25.2 million (US $ 19.8 million) in financing through a private placement agreement. Under the agreement, the New York cannabis company agreed to sell about 2.8 million of its common shares to Canaccord Genuity Corp. at CA $ 9 ($ 7.1) per share.
- Green check checked, a regtech company focused on compatible marijuana banking solutions and services, announced an excess $ 2.4 million convertible note funding. The round was led by Flatiron Venture Partners. Bravos Capital, Basecamp, Silverleaf Venture Partners and Fenway Summer also joined the effort.
- Cannabis CPG company Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) secured $ 100 million from an undisclosed institutional investor. Rumor is it is Black stone (NYSE: BLK). Click here to learn more.
- Jushi Holdings Inc. (CSE: JUSH) (OTCQB: JUSHF) priced its overnight traded offering out of a total of 6.5 million voting subordinated shares at CA $ 10 per share, for total gross revenue of CA $ 65 million (US $ 51 millions).
- NBA legend Isiah Thomas invested $ 3 million in producer of marijuana and cannabis ingredients One World Pharma Inc. (OTCQB: OWPC). The former player who became a Detroit Pistons businessman, who was named CEO of One World Pharma last June, invested through his holding company, Isiah International. The funds will enable One World Phara to build a THC and CBD extraction facility in Colombia and subsidize future growth.
Earnings reports
- Aurora Cannabis (NYSE: ACB) reported that total net cannabis revenue in the second quarter fluctuated around $ 70.3 million. This represents an 11% increase over the second quarter of 2020. Net revenue from medical cannabis reached $ 38.9 million – a 42% increase over the second quarter of 2020, thanks to a 562% increase in high-margin international medical sales. The Edmonton, Canada-based cannabis producer experienced a loss of adjusted EBITDA of $ 12.1 million. This is an improvement of $ 53.1 million over the second quarter of 2020.
- Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) saw net revenue increase 23% year over year, to $ 153 million. The Smith Falls, Canada-based company reported a net loss of $ 829 million. Adjusted EBITDA was also a loss of $ 68 million against a loss of $ 97 million in the corresponding quarter of 2020.
- The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) expects fourth quarter revenue to reach $ 10.9 million, representing year-on-year and sequential growth of 235% and 91%, respectively. According to a preliminary financial report, Canadian operations and sales accounted for $ 8.6 million of total gross revenue for the period.
- Canopy Rivers Inc. (OTC: CNPOF) reported that total comprehensive income reached $ 82.2 million in the third quarter of this fiscal year, compared to a loss of $ 40 million in the same period last year. The Toronto-based company attributes the growth to a $ 11.4 million increase in the value of its TerrAscend Canada Inc. (CSE: TER) (OTCQX: TRSSF) investment.
- Turning Point Brands Inc. (NYSE: TPB) says net sales increased 31.2% year on year, to $ 105.3 million in the fourth quarter. Adjusted EBITDA increased 80.9% to $ 25.8 million in the period. In the year, net sales totaled US $ 405.1 million. Net income increased by $ 19.3 million for the year.
- CbdMD Inc. (NYSE: YCBD) says direct consumer e-commerce sales increased 41% year-over-year and 13% sequentially to reach a record $ 9.7 million in the first fiscal quarter of 2021. The Charlotte-based company , North Carolina says net sales in the first three months of this year increased 22% year on year, to $ 12.3 million. The gross profit margin for the period went from 63.5% to 72.2%. Operating expenses decreased 15% year on year and 2% sequentially to $ 10.7 million. Losses from operations were $ 1.8 million, down 71% compared to the corresponding quarter last year.
- Pyxus International Inc. (NYSE: PYX) Revenues increased 4.5% year on year, to $ 379.6 million in the third quarter of fiscal year 2021. Adjusted EBITDA also improved, increasing 64.9% to $ 39.9 million, against a positive adjusted EBITDA of $ 24.2 million in the corresponding quarter last year.
- The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) generated approximately $ 21.7 million in gross revenue and $ 18.3 million in net revenue in the second fiscal quarter of 2021. In the same period, net recreational revenue increased 70% to $ 12.7 million. Wholesale net revenue, including the international medical cannabis segment, increased 28% in the quarter to $ 5.6 million.
Movers & Shakers
- Curaleaf Holdings Inc. (OTCQX: CURLF) announced an initiative called “Rooted In Good”. The Wakefield, Massachusetts-based company pledges to do at least 10% of its 2021 hires to those who were previously burdened with cannabis-related crimes or criminal records.
- National Cannabis Roundtable (NCR) welcome Kathleen Sebelius, the secretary of the US Department of Health and Human Services under former President Barack Obama, to be honorary co-chair. For more information click here.
More headlines this week
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