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May 19, 2019, 2:22 p.m. EDT

The Week In Cannabis: Big Earnings Reports, Biden's Change Of Heart, New Report On Dispensaries

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By Benzinga.com

As the presidential race continues to heat up, Democratic contender and former Vice President Joe Biden has come out in support of decriminalizing cannabis — but not of full legalization. “Nobody should be in jail for smoking marijuana,” he said.

While it was a big step for someone who had been opposed to cannabis for three decades, it still remains a half-step.

In the words of the cannabis writer Bruce Barcott: “By embracing decriminalization, Biden takes what many in the drug reform community consider the coward’s way out ... these half-steps leave law enforcement free to continue the racially biased policing tactics, using marijuana as a pretext to stop people of color as they go about their business.”

A myriad of cannabis-related bills were submitted in the House of Representatives, most of them aimed at protecting certain groups using medical marijuana, from military veterans to students.

Leafly released a report looking into the impact of dispensary openings on crime rates and property values. Benzinga broke this story with a write-up by Leafly’s California bureau chief David Downs.

“The vast majority of current research suggests that allowing regulated cannabis stores actually improves community safety, health and property values," he said. 

On the markets front, we saw some of the biggest cannabis companies in the world report their quarterly results.

CannTrust Holdings Inc posted quarterly revenue of CA$16.9 million ($18.9 million), up 115 percent from the first quarter of 2018. Sixty-seven percent of the growth came from the medical channel, while 33 percent came from its recreational arm.

Tilray Inc /zigman2/quotes/209129655/composite TLRY -1.12% posted an adjusted loss of 27 cents per share, in line with consensus estimates, on sales of $23.04 million. Revenue surged by 195 percent on the year and was considerably above analyst estimates of $20.16 million. CEO Brendan Kennedy told CNBC: “You are going to see some daily volatility, but our objective is to invest for the long-term.”

Aurora Cannabis Inc /zigman2/quotes/210559470/composite ACB -0.62% reported deep losses on a year-over-year basis and net sales of CA$65.145 million ($48.4 million) versus $16.1 million in sales in the third quarter of 2018. 

Aurora said it lost CA$158.35 million in the first quarter, down from the second-quarter loss of CA$237.75 million but up 724 percent from its CA$19.2-million loss one year ago. Executive Chairman Michael Singer said getting to positive EBITDA would be a “game-changer.” Options traders made some big moves following the earnings report. The largest trades suggest the Aurora rally could soon run out of steam.

“I believe cannabis investors are starting to expect execution from the industry. Companies have been on an acquisition and going public binge, which has proven to be expensive," Green Market Report CEO Debra Borchardt told Benzinga. 

"Now shareholders want to see revenues rising and losses declining. Patience will begin to wear thin as we move through the quarters this year.”

Finally, we learned that Jakob Ripshtein, President of Aphria Inc , will resign from the company June 7 amid a wide management reshuffle.

Check out our story of the week: PTSD, Veterans And Suicide: Action Is Needed, And Cannabis May Help

Over the last five trading days:

• The Horizons Marijuana Life Sciences Index ETF /zigman2/quotes/200444869/composite HMLSF -3.45% /zigman2/quotes/208856346/delayed CA:HMMJ -2.23% lost almost 1 percent.

• The ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ -1.63% tumbled 1.8 percent.

• The AdvisorShares Pure Cannabis ETF /zigman2/quotes/211349815/composite YOLO -2.90% gained 0.1 percent.

• The SPDR S&P 500 ETF Trust /zigman2/quotes/209901640/composite SPY -1.62% closed the period down 0.8 percent.

Top marijuana stocks with market caps above $500 million trading on U.S. exchanges performed as follows over the last five trading days: 

• Acreage Holdings : down 8.2 percent.

• Aphria Inc : down 5.4 percent.

• Aurora Cannabis Inc /zigman2/quotes/210559470/composite ACB -0.62% : up 3.95 percent.

• CannTrust Holdings Inc : down 0.3 percent.

• Canopy Growth Corp /zigman2/quotes/200603886/composite CGC -3.03% : down 6 percent.

• Cronos Group Inc. /zigman2/quotes/206842762/composite CRON +1.55% : down 3.05 percent.

• Curaleaf Holdings Inc /zigman2/quotes/205334348/composite CURLF -4.33% : down 13.6 percent.

• Green Growth Brands Inc /zigman2/quotes/204912440/composite GGBXF +1,900% : down 9.9 percent.

• Green Organic Dutchman Holdings Ltd /zigman2/quotes/204266798/composite TGODF -8.65% :down 4.3 percent.

• Green Thumb Industries Inc /zigman2/quotes/204912440/composite GGBXF +1,900% : down 9.9 percent.

• GW Pharmaceuticals PLC- ADR : down 1.8 percent.

• Hexo Corp /zigman2/quotes/206508254/composite HEXO -1.79% : down 3.1 percent.

• Harvest Health & Recreation Inc : down 5.2 percent.

• iAnthus Capital Holdings Inc /zigman2/quotes/201709321/composite ITHUF -4.09% : down 6.5 percent.

• Marimed Inc /zigman2/quotes/209406908/composite MRMD -6.51% : up 0.8 percent.

• MedMen Enterprises Inc. /zigman2/quotes/201940908/composite MMNFF -1.36% : down 4.6 percent.

• OrganiGram Holdings Inc : up 12.7 percent.

• Scotts Miracle-Gro Co /zigman2/quotes/200553749/composite SMG -8.32% : down 2.1 percent.

• Tilray Inc /zigman2/quotes/209129655/composite TLRY -1.12% : down 8.4 percent.

Cannabis industry infrastructure services provider Helix TCS Inc. announced the receipt of its application to list on the Canadian Stock Exchange, in addition to the company’s active OTCQB listing.

“As we set the stage for a global cannabis marketplace and the industry begins to attract broader financial and investor interest, we are excited about the prospect of listing on the CSE as it will bring our current and future investors increased liquidity, regardless of where they are located,” Zachary Venegas, executive chairman and CEO of Helix TCS, told Benzinga.

To receive this column every week, please subscribe to https://tinyletter.com/javierhasse. We promise we won’t send spam.

Arizona-based Harvest Health & Recreation announced it closed the first tranche of its brokered private placement for gross proceeds of $100 million. Full story here.

Wholesale marketplace LeafLink began offering Metrc integration, allowing its clients to consolidate their Metrc and LeafLink workflows. The integration syncs with Metrc accounts, allowing users to view and manage Metrc data throughout the LeafLink experience.

Media veteran Felicia Palmer, founder of SOHH.com, the longest-running hip-hop website in the world, and her new company, Cannaramic, are suing Facebook Inc /zigman2/quotes/205064656/composite FB -3.39% after the social media behemoth rejected some ads around their upcoming Cannaramic Online Summit and temporarily suspended the event’s page.

The plaintiffs are being represented pro bono by attorney David Holland, the executive director for the New York chapter of marijuana advocacy organization NORML;they are seeking a jury trial to challenge Facebook’s stance on legal cannabis.

Hemptown Organics Corp., a hemp company that does business as Hemptown USA, said it raised CA$23.3 million ($17.2 million) to fund an expansion of its operations. Full story here.

Steven Ernest, former co-founder of Mazakali and JPMorgan Wealth Manager, joined Viridian Capital Advisors as director of business development. Alongside the accelerating growth and consolidation of the cannabis industry, Viridian is attracting top talent to its team as it continues to prove itself a leader in the cannabis capital markets.

Contract cannabis manufacturer Natura Life + Sience completed a $91-million private round of financing for the construction of a large, vertically integrated cannabis campus in California. Full story here.

Driven Deliveries Inc expanded its cannabis delivery operations from California to Nevada. Driven will service the Las Vegas area in Nevada while maintaining its operations in California.

“We are excited to launch our services in Nevada as we continue on our growth trajectory to enter the neighboring states of California, and eventually, the rest of America," President Brian Hayek told Benzinga.

"We look forward to reaching a new customer base in a fast and convenient manner. Our partnership with Shango Marijuana Dispensary will provide quality products on demand across the state of Nevada.”

MediPharm Labs Corp. /zigman2/quotes/203412746/composite MEDIF -4.62% agreed to a multiyear supply deal with Cronos Group. Full story here.

Tikun Olam said its brand was approved by The Realm of Caring Foundation in Florida. 

“Realm of Caring has a track record of making a powerful impact on families through their innovative programs, especially by providing personalized product and dosing recommendations through the guidance of trained specialists," Tikun Olam CMO Stephen Gardner said in a press release.

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$ 10.14
-0.12 -1.12%
Volume: 18.34M
Nov. 30, 2021 3:24p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.75 billion
Rev. per Employee
$244,326
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/zigman2/quotes/210559470/composite
US : U.S.: Nasdaq
$ 6.40
-0.04 -0.62%
Volume: 3.90M
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.27 billion
Rev. per Employee
$108,554
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US : U.S.: OTC
$ 5.46
-0.19 -3.45%
Volume: 4,602
Nov. 30, 2021 2:37p
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CA : Canada: Toronto
$ 7.02
-0.16 -2.23%
Volume: 116,016
Nov. 30, 2021 3:05p
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/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 12.07
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Nov. 30, 2021 3:23p
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/zigman2/quotes/211349815/composite
US : U.S.: NYSE Arca
$ 14.40
-0.43 -2.90%
Volume: 127,916
Nov. 30, 2021 3:21p
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/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 457.07
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Volume: 94.33M
Nov. 30, 2021 3:24p
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/zigman2/quotes/210559470/composite
US : U.S.: Nasdaq
$ 6.40
-0.04 -0.62%
Volume: 3.90M
Nov. 30, 2021 3:23p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.27 billion
Rev. per Employee
$108,554
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/zigman2/quotes/200603886/composite
US : U.S.: Nasdaq
$ 10.73
-0.34 -3.03%
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.34 billion
Rev. per Employee
$126,876
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/zigman2/quotes/206842762/composite
US : U.S.: Nasdaq
$ 4.53
+0.07 +1.55%
Volume: 2.55M
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.65 billion
Rev. per Employee
$70,043
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/zigman2/quotes/205334348/composite
US : U.S.: OTC
$ 9.29
-0.42 -4.33%
Volume: 515,031
Nov. 30, 2021 3:08p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.85 billion
Rev. per Employee
N/A
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/zigman2/quotes/204912440/composite
US : U.S.: OTC
$ 0.0002
+0.0002 +1,900%
Volume: 1,413
Nov. 30, 2021 2:11p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.14 million
Rev. per Employee
N/A
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/zigman2/quotes/204266798/composite
US : U.S.: OTC
$ 0.10
-0.0092 -8.65%
Volume: 1.07M
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P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$55.84 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/204912440/composite
US : U.S.: OTC
$ 0.0002
+0.0002 +1,900%
Volume: 1,413
Nov. 30, 2021 2:11p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.14 million
Rev. per Employee
N/A
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/zigman2/quotes/206508254/composite
US : U.S.: Nasdaq
$ 1.10
-0.02 -1.79%
Volume: 8.63M
Nov. 30, 2021 3:23p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$343.50 million
Rev. per Employee
$76,056
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/zigman2/quotes/201709321/composite
US : U.S.: OTC
$ 0.16
-0.0069 -4.09%
Volume: 361,660
Nov. 30, 2021 2:20p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$27.52 million
Rev. per Employee
$165,578
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/zigman2/quotes/209406908/composite
US : U.S.: OTC
$ 0.68
-0.05 -6.51%
Volume: 1.18M
Nov. 30, 2021 3:04p
P/E Ratio
13.36
Dividend Yield
N/A
Market Cap
$243.20 million
Rev. per Employee
$218,434
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/zigman2/quotes/201940908/composite
US : U.S.: OTC
$ 0.23
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Volume: 1.92M
Nov. 30, 2021 3:07p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$297.33 million
Rev. per Employee
$165,789
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/zigman2/quotes/200553749/composite
US : U.S.: NYSE
$ 146.21
-13.27 -8.32%
Volume: 648,296
Nov. 30, 2021 3:23p
P/E Ratio
16.48
Dividend Yield
1.79%
Market Cap
$8.90 billion
Rev. per Employee
$674,658
loading...
/zigman2/quotes/209129655/composite
US : U.S.: Nasdaq
$ 10.14
-0.12 -1.12%
Volume: 18.34M
Nov. 30, 2021 3:24p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.75 billion
Rev. per Employee
$244,326
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 326.56
-11.47 -3.39%
Volume: 16.48M
Nov. 30, 2021 3:24p
P/E Ratio
23.32
Dividend Yield
N/A
Market Cap
$940.32 billion
Rev. per Employee
$1.47M
loading...
/zigman2/quotes/203412746/composite
US : U.S.: OTC
$ 0.16
-0.0079 -4.62%
Volume: 227,346
Nov. 30, 2021 3:03p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$46.49 million
Rev. per Employee
$131,611
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