By Ciara Linnane, MarketWatch
How California's 'Weed Nuns' turned CBD into a million-dollar business
California's 'Weed Nuns' are in battle with law enforcement, big banks and right-wing pastors for a place in the lucrative CBD market. Meanwhile, the FDA has deemed CBD a drug, banning its use in food and health products without official approval.
Cronos Group stock /zigman2/quotes/206842762/composite CRON -0.38% /zigman2/quotes/202715342/delayed CA:CRON +0.69% was down 1.4%. The company said earlier its Cronos Australia joint venture with NewSouthern Capital Pty Ltd. is planning to go public in November. The venture will offer 40 million shares priced at AUD$0.50 ($0.34) a share. Once the deal has been completed, Cronos will own a 31% stake in Cronos Australia, which is expected to have an initial market capitalization of AUD$64.4 million.
Hexo shares /zigman2/quotes/206508254/composite HEXO +2.18% were down 1%, after it announced plans for a value cannabis brand called Original Stash, that it said will be priced at “black market prices.” The move is a shift away from Hexo’s original strategy which was to specialize in premium product at premium prices, according to a 2016 investor deck viewed by MarketWatch.
The company said adult-use consumers can buy 28 grams, or one ounce, of Original flash dried flower for C$125.70 ($95.11) including taxes, or the equivalent of C$4.49 a gram.
“Our aim with Original Stash is to disrupt the illicit market, educate consumers about the value of a regulated and tested product, and drive them to purchase their cannabis legally,” said Hexo Chief Executive Sebastien St-Louis.
Just last week, Statistics Canada released crowdsourced price data for the black and legal markets that found an average legal price in the third quarter of C$10.23 a gram, almost double the black market average price of C$5.59 a gram. That price differential has kept the black market strong and hampered the development of the legal market in Canada and the U.S. states that have legalized.
Valens GroWorks stock /zigman2/quotes/202694451/delayed VGWCF -0.63% was up 2.2%, after the company posted third-quarter earnings that showed net income of C$5.9 million on revenue of C$16.5 million.
Aleafia /zigman2/quotes/203485112/delayed ALEAF +3.04% /zigman2/quotes/200214885/delayed CA:ALEF +1.54% was up 0.3%, /zigman2/quotes/209289540/lastsale OGI -2.10% was down 0.6% and KushCo /zigman2/quotes/209165034/delayed KSHB +1.83% was up 0.7%. Akerna /zigman2/quotes/202667634/composite KERN +2.37% was down 1.5%, Green Thumb Industries was down 1.1% and Green Organic Dutchman was down 4.5%.
The ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ -0.04% was down 1.1%, while the Horizons Marijuana Life Sciences ETF /zigman2/quotes/208856346/delayed CA:HMMJ +0.45% was down 1.7%.