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3:31 a.m. Sept. 3, 2021 - By Steve Gelsi
Jefferies upgrades Aurora Cannabis to hold as share prices 'better reflect reality'Jefferies on Friday upgraded shares of Aurora Cannabis Inc. to hold from underperform after the stock has fallen 10.5% so far this year. The U.S.-listed shares rose 0.9% in premarket trading. Analyst Owen Bennett said recent trading levels of the stock "better reflect reality" of operational weakness and the value of the company's prospects to expand into the U.S. market from the Canadian market. "The main bull argument for much of the Canadian names in recent times has been U.S. optionality [and] ACB is no different," Bennett said. He cut his price target for Aurora Cannabis by 9% to $8.56. The stock's weakness this year comes as the Cannabis ETF has rallied 17.9% and the S&P 500 has gained 20.8%.
7:10 a.m. Aug. 31, 2021 - By Steve Gelsi
Valens buys craft grower Stash CannabisThe Valens Company Inc. shares fell 0.7% on Tuesday after the cannabis company said it agreed to acquire all of the outstanding shares of premium marijuana brand Citizen Stash Cannabis Corp. in a deal that values the target company at about $43 million on an enterprise value basis. Shares of Citizen Stash rose 11.8%. Under terms of the deal, Citizen Stash shareholders will receive 0.1620 of a Valens common share for each Citizen Stash common share. Valens said the transaction will add to earnings in 2021 and 2022 before synergies, along with an expansion into premium flower and pre-rolled cigarettes, which account for more than 70% of retail sales. Valens Company CEO Tyler Robson said the acquisition will help the company "significantly expand its presence in the recreational market."
2:52 a.m. Aug. 25, 2021 - By Tomi Kilgore
Organigram launches new 'SHRED'ems' lineup of cannabis-infused gummiesOrganigram Holdings Inc. announced Wednesday the launch of its "SHRED'ems" lineup of "high-quality and bold" cannabis-infused gummies. The parent of Canada-based cannabis producer Organigram Inc., said "SHRED'ems" adds to its value-priced "SHRED" portfolio. The company said the vegan-friendly "SHRED'ems" will be available in three flavors, Wild Berry Blaze (Hybrid), Sour Cherry Punch (Indica) and Sour Megamelon (Sativa). The company said gummies currently represent 74% of the edibles category. "The launch of SHRED'ems is a significant milestone for Organigram," said Chief Revenue Officer Tim Emberg. "As a company, we remain dedicated to developing industry-leading products that meet consumer needs, and the launch of SHRED'ems is the first of many new innovations we anticipate coming from our strategic acquisition of EIC." Organigram's stock, which shed 4.9% in premarket trading, has run up 99.3% year to date through Monday, while the Cannabis ETF has gained 17.8% and the S&P 500 has advanced 19.4%.
9:32 a.m. Aug. 23, 2021 - By Tonya Garcia
Pumpkin spice lattes heading back to the Starbucks menu on TuesdayFall is coming at Starbucks Corp. whether customers are ready or not. The pumpkin spice latte will be back on the menu in the U.S. and Canada starting Tuesday, along with the Pumpkin Cream Cold Brew. This is the 18th year that Starbucks has featured the PSL on its menu, with 500 million sold in the U.S. since 2003. And this is the 3rd year for the Pumpkin Cream Cold Brew, with more than 90 million sold. According to Starbucks, the Pumpkin Cream Cold Brew outsold the PSL last year. A pumpkin scone, pumpkin loaf and pumpkin cream cheese muffin are also heading to the food menu. For those who want to brew their own, Starbucks Reserve Vietnam Da Lat and Starbucks Reserve Costa Rica Naranjo are also coming. Coffee prices due to an unusual frost in Brazil, putting a further premium on a good cup of coffee. Starbucks shares are up 7.8% for the year to date while the S&P 500 index has gained 19.5% for the period.
5:20 a.m. Aug. 20, 2021 - By Tomi Kilgore
Hexo stock tumbles after $140 million share offering pricingThe U.S.-listed shares of Hexo Corp. tumbled 18.4% in premarket trading Friday, after the Canada-based cannabis company announced the pricing of its previously announced public share offering, in which the company raised $140 million. The company said it sold 47.46 million units in the offering, consisting of one share of common stock and one half of one common share purchase warrant, at $2.95 per unit. Each warrant will be exercisable to buy one common share at an exercise price of $3.45 for a period of five years. The stock's Thursday's closing price was $3.20. Plans for the offering were announced after Thursday's closing bell. A.G.P./Alliance Global Partners and Cantor Fitzgerald Canada were the lead underwriters of the offering. Hexo plans to use the proceeds from the offering to help pay for the Redecan acquisition. Hexo's stock has plunged 44.9% over the past three months through Thursday, while the Cannabis ETF has dropped 13.6% and the S&P 500 has gained 5.9%.
8:20 a.m. Aug. 12, 2021 - By Myra P. Saefong
Wheat climbs to its highest price since May as USDA cuts U.S. supply forecastWheat prices extended their rally Thursday after its U.S. and global supply forecasts for the 2021/2022 marketing year. The USDA forecast s U.S. all wheat production at 1.697 billion bushels, down 49 million bushels from the previous forecast. It also reduced its global wheat supply forecast to 1.0657 billion tons, down 16.8 million tons from its previous forecast, citing lower production for Russia, Canada and the United States. The most-active September wheat contract was up 20 cents, or 2.8%, at $7.47 1/2 a bushel in Thursday dealings after touching a high at $7.57 1/4. Prices haven't traded at levels this high since the first half of May. Prices were trading at $7.33 shortly before the USDA report.
7:01 a.m. Aug. 10, 2021 - By Tonya Garcia
Beyond Meat expands partnership with Pizza Hut for Beyond Pepperoni PizzaBeyond Meat Inc. said Tuesday that it has expended its partnership with Pizza Hut to offer plant-based Beyond Pepperoni topping. Beyond Pepperoni Pizza will be available starting today at nearly 70 locations across five U.S. markets: Albany, N.Y.; Columbus and Macon, Ga.; Houston, Tex.; and Jacksonville, Fl. Beyond Meat became a permanent addition to the last month, and expanded on the Pizza Hut menu in . Pizza Hut is part of the Yum Brands Inc. portfolio. Yum shares are up 23% for the year to date. Beyond Meat stock is up 1.7% for the period. And the S&P 500 index has gained 18%.
3:30 a.m. Aug. 6, 2021 - By Ciara Linnane
Canopy Growth revenue falls short of estimatesCanopy Growth Corp. shares rose 0.8% in premarket trade Friday, after the Canadian cannabis company posted a profit for its fiscal first quarter, thanks to noncash fair value changes in some of its holdings of more than C$600 million ($479.9 million). The company posted net income of C$392.4 million, or 84 cents a share, for the quarter to June 30, after a loss of C$108.5 million, or 30 cents a share, in the year-earlier period. Earnings were boosted by other income that totaled C$581 million, primarily due to non-cash fair value changes of $601 million. Revenue net of excise taxes came to C$136 million, up 23% from the year-earlier period. The FactSet consensus was for a loss of 23 cents a share and revenue of C$151 million. "While we're encouraged by regulatory advancement in the U.S., Canopy is not waiting as we continue to scale our business on both sides of the border with an exciting product pipeline planned for the coming quarters," Chief Executive David Klein said in a statement. Revenue was driven by double-digit growth in Canadian cannabis and other consumer products, which offset a decline in international sales. The company said CBD business in the U.S., led by the Martha Stewart line, continued to built momentum. The company is still aiming for positive adjusted EBTIDA by the end of fiscal 2022, driven by higher revenue, cost savings and improved price/mix. Shares have fallen 22% in the year to date, while the Cannabis ETF has gained 21% and the S&P 500 has gained 18%.
3:52 a.m. July 29, 2021 - By Tonya Garcia
Keurig Dr. Pepper earnings and sales beat expectationsKeurig Dr. Pepper Inc. reported second-quarter net income of $448 million, or 31 cents per share, up from $298 million, or 21 cents per share, last year. Adjusted EPS of 38 cents beat the FactSet consensus for 37 cents. Sales of $3.14 billion were up from $2.86 billion and also ahead of the FactSet consensus of $3.06 billion. Keurig Dr. Pepper maintained its adjusted EPS guidance for growth in the range of 13% to 15%. FactSet is guiding for EPS of $1.60, implying 14.6% growth. In addition to the namesake brands, Keuring Dr. Pepper's portfolio includes Green Mountain Coffee Roasters, Canada Dry and Snapple. Keurig Dr. Pepper stock edged up 0.5% in Thursday premarket trading, and has gained 10.4% for the year to date. The S&P 500 index is up 17.2% for the period.
4:44 a.m. July 28, 2021 - By Ciara Linnane
Tilray swings to profit in latest quarter, sending stock up 5.9% premarketShares of Canadian cannabis company Tilray Inc. jumped 5.9% in premarket trade Wednesday, after it swung to a profit in its fiscal fourth quarter. Tilray said it had net income of $33.5 million in the quarter to May 31, or 18 cents a share, after a loss of $84.3 million, or 39 cents a share, in the year-earlier period. Revenue rose to $142.2 million from $113.5 million a year ago. The FactSet consensus was for a loss of 12 cents a share and revenue of $199 million. Revenue was boosted by 36% growth in cannabis revenue to $53.7 million, which included four weeks of contribution from legacy-Tilray, a 10% decline in distribution revenue, net beverage alcohol revenue of $15.9 million following the SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest, the company said in a statement. The company remained loss-making on a full-year basis, recording a loss of $336 million, wider than the loss of $100.8 million posted in fiscal 2020. The loss was driven by $63.6 million in transaction costs, following its merger with Aphria, and $170.5 million of non-cash unrealized loss on convertible bonds. The company has achieved $35 million in synergies on the Aphria deal and expects to reach its goal of about $80 million within 18 months of closing. U.S.-listed shares have gained 54% in the year to date, while the Cannabis ETF has gained 17% to match the S&P 500's gain.
2:15 a.m. July 13, 2021 - By Ciara Linnane
Organigram tops revenue estimates in fiscal Q3 as loss narrowsCanadian cannabis company Organigram Holdings Inc. posted a narrower loss for its fiscal third quarter than in the same period a year ago as revenue topped estimates. The company posted a loss of C$4 million ($3.20 million) for the quarter to May 31, after a loss of C$89.9 million in the same period a year ago. It did not offer any per-share numbers. Revenue net of excise taxes came to C$20.2 million, up from C$18.0 million a year ago. The FactSet consensus was for revenue of C$17.2 million. Chief Executive Paolo De Luca said the company was better staffed in the quarter to fulfill demand for its products, after shortages during the pandemic. Adult-use recreational cannabis revenue rose 40% from the prior quarter and was up 10% from a year ago. The company is now expecting sequentially higher revenue and improved adjusted gross margins in the fourth quarter, as COVID-19 restrictions lift and the number of retail stores grows. Shares were up 6% premarket, and have gained 99% in the year to date, while the Cannabis ETF has gained 30% and the S&P 500 has gained 16.7%.
4:28 a.m. July 7, 2021 - By Tomi Kilgore
Tilray completes first harvest of medical cannabis for distribution at German pharmaciesTilray Inc. said its Germany-based subsidiary Aphria RX GmbH has completed the first successful harvest of medical cannabis, which was cultivated in Germany, for distribution to pharmacies. Tilray's stock rose 0.4% in premarket trading. The Canada-based cannabis company said the harvest if the first cultivated at its indoor growing facility in Neumunster, Germany. The distribution was carried about by a distributor on behalf of the German Cannabis Agency. "Our harvest in Germany represents an important milestone in granting access to high-quality and trustworthy medical cannabis to patients and healthcare professionals in Germany," said Tilray's Chief Strategy Officer Denise Faltischek. Shares of Tilray, which is the world's largest cannabis company by revenue following the recent completion of its merger with Aphria, have soared 102.4% year to date through Tuesday, while the Cannabis ETF has rallied 33.1% and the S&P 500 has gained 15.6%.
3:25 a.m. June 29, 2021 - By Ciara Linnane
Tilray CEO seeks shareholder approval to increase stock and give it ammunition to make acquisitionsTilray Inc. Chief Executive Irwin Simon called on shareholders to support a proposal at the company's annual shareholder meeting that will allow the Canadian cannabis company to increase the number of authorized shares of common stock, enabling it to make acquisitions for growth. "Importantly, approval does not mean that the authorized shares will be issued, only that they are available if needed in pursuit of these important corporate initiatives to drive shareholder value,' Simon wrote in a letter to shareholders. Tilray has recently completed its merger with Aphria to create the biggest cannabis company in the world, measured by revenue. The company is also seeking to expand shareholder rights at a meeting scheduled for July 29. U.S.-listed shares were up 1.3% premarket and have gained 126% in the year to date, while the Cannabis ETF has gained 39% and the S&P 500 has climbed 14%.
3:12 a.m. June 17, 2021 - By Ciara Linnane
Philip Morris unveils new structure for the Americas as it works toward smoke-free futurePhilip Morris International Inc. unveiled a new structure for the Americas on Thursday and named Deepak Mishra president of the region, replacing Martin King, who is retiring after 30 years. Mishra, who has been with the company for three years, is a former managing director at private-equity firm Centerbridge Partners LP, and has also done stints at McKinsey & Co., Procter & Gamble and Accenture . He will take up his new role on July 1. The new Americas structure will focus on building out Philip Morris' presence in Latin America and Canada as it moves toward a smoke-free future, on expanding reduced risk products in the U.S. and building a launchpad for the "beyond nicotine" strategy in the U.S. Philip Morris shares were flat premarket, but have gained 21% in the year to date, while the S&P 500 has gained 12.5%.
3:06 a.m. June 15, 2021 - By Ciara Linnane
Hexo stock price target cut by Stifel and AGP after earnings disappoint, but pending deals are viewed as positiveStifel analysts reiterated their hold rating on shares of Canadian cannabis company Hexo Corp. on Tuesday and lowered their price target to C$7.50 ($6.15) from C$10.00, after disappointing earnings led them to a "more cautious approach" to the stock. The report released Monday was similar to results from peers, most of whom have seen sequential and year-over-year declines in revenue in their latest quarter, said analysts led by W. Andrew Carter. "But the underperformance related to specific company issues in Quebec where HEXO's supply chain limitations drove the weaker sales performance," Carter wrote in a note to clients. "Up until F3Q21, HEXO's consistent sales growth while rationalizing its cost structure has differentiated the company." Hexo will likely be an a different position next year, after a flurry of M&A activity this year, but "the magnitude of the underperformance drives scrutiny for the core business and the ability to realize value from over C$1.1 billion deployed towards M&A," said the note. Hexo posted Hexo announced its in late May with news that it is acquiring privately held Redecan for C$925 million in cash and stock. That comes after the February news of the purchase of Zenabis Global Inc. for C$235 million in stock, and earlier in May, it announced the acquisition of 48North Cannabis Corp. for C$50 million in stock. Alliance Global Partners analysts also lowered their stock price target, to C$12 from C$14, but reiterated a buy rating given the pending deal closures. Hexo shares were not active premarket, but have gained 68% in the year to date, while the Cannabis ETF has gained 40% and the S&P 500 has gained 13%.
4:09 a.m. June 14, 2021 - By Ciara Linnane
Hexo shares slide almost 5% premarket after third-quarter earnings fall far short of estimatesHexo Corp. shares slid 4.8% in premarket trade Monday, after the Canadian cannabis company posted a wider-than-expected loss for its fiscal third quarter and revenue that fell short of estimates. Ottawa-based Hexo said its loss widened to C$20.7 million ($17 million), or 17 cents a share, in the quarter to April 30, from C$19.5 million, or 38 cents a share, a year ago. Revenue climbed to C22.7 million from C$22.1 million. The FactSet consensus was for a loss of 6 cents a share and revenue of C$34.5 million. "While this was a challenging quarter, we maintained our number one position in the beverage category and increased our net sales outside of Quebec by 169% over last year, including 14% sequential quarterly growth in Ontario, while continuing to maintain our number one position as the preferred supplier to Quebec," Chief Executive Sebastien St-Louis said in a statement. "Moving forward, we are committed to rebuilding our strain strategy and brand mix in the province of Quebec to ensure we meet consumer needs and maintain our dominant position in the province." Hexo announced its in late May with news that it is acquiring privately held Redecan for C$925 million in cash and stock. That comes after the February news of the purchase of Zenabis Global Inc. for C$235 million in stock, and earlier in May, it announced the acquisition of 48North Cannabis Corp. for C$50 million in stock. Hexo shares have gained 80% in the year to date, while the Cannabis ETF has gained 44% and the S&P 500 has gained 13%.
3:45 a.m. June 14, 2021 - By Ciara Linnane
Canadian cannabis company Cronos purchases option to acquire 10.5% stake in PharmaCann for $110.4 millionCronos Group Inc. said Monday it has purchased an option to acquire a 10.5% stake in U.S. cannabis company PharmaCann in a deal valued at $110.4 million. Under the terms of the deal, the option can be exercised upon various factors, including the status of U.S. federal cannabis legalization, as well as regulatory approvals, including in states where PharmaCann operates. PharmaCann has six production facilities and 23 dispensaries operating under the Verilife brand in six states, namely New York, Illinois, Ohio, Maryland, Pennsylvania and Massachusetts. "Our U.S. growth strategy focuses on delivering long term shareholder value by assembling a best-in-class brand and intellectual property portfolio and positioning to deploy our products in the U.S. market through investments and opportunities with U.S. leaders who share our vision and commitment to responsibly distributing disruptive cannabinoid products that improve people's lives," said Cronos CEO Kurt Schmidt in a statement. Cronos' U.S.-listed shares were slightly lower premarket, but have gained 28% in the year to date, while the Cannabis ETF has gained 41% and the S&P 500 has gained 13%.
10:10 a.m. June 10, 2021 - By Tomi Kilgore
IM Cannabis stock rallies toward an 8-day win streak after bullish analyst callThe U.S.-listed shares of IM Cannabis Corp. rallied 3.2% in afternoon trading Thursday, putting them on track for an eighth straight gain, after a bullish call from Alliance Global Partners analyst Aaron Grey, saying the Israel-based cannabis company is an "international play" on legal cannabis. The stock, on track to close at a five-week high, has run up 36.86% during its win streak. Grey initiated coverage of the company with at buy rating and stock price target of $10, which is about 66% above current levels. He said he believes IM Cannabis is "particularly well positioned" to benefit from the growing Israeli medical cannabis market. "Additionally, we look for [IM Cannabis] to grow its business in the German medical market, with recent acquisitions positioning it in Canada's premium segment (and allowing for exports, in time)." The stock is rallying despite broad weakness in the cannabis sector, as the Cannabis ETF dropped 1.7% with 26 of 32 equity components losing ground. Year to date, IM Cannabis shares have slumped 22.9% while the Cannabis ETF has soared 42.0% and the S&P 500 has gained 13.0%.
2:55 a.m. June 8, 2021 - By Tonya Garcia
Hexo to offset carbon emissions and plastics packaging by September 2021Hexo Corp. announced Tuesday its commitment to offsetting all of its operational carbon emissions and the carbon emissions of its 1,200 staff members, including powering their homes and food consumption, by September 2021. The cannabis company will also offset its plastic use through a partnership with Plastic Bank. With help from Offsetters, a Canadian carbon management company, Hexo will measure corporate carbon emissions from 2020, becoming carbon neutral by September. So far, in conjunction with its plastic packaging supplier Dymapak, the company has offset 63,000 kilograms of plastic in 2021. Hexo stock has rallied nearly 89% for the year to date while the S&P 500 index is up 12.5% for the period.
3:43 a.m. June 4, 2021 - By Ciara Linnane
Canadian cannabis company Cronos amends agreement with Ginkgo, to issue up to 14.7 million shares Canadian cannabis company Cronos Group Inc. said Friday it has amended its agreement with Ginkgo Bioworks Inc. to accelerate the commercialization of cultured cannabinoids at scale. Cronos has had a research partnership with Ginkgo for several years with the aim of producing rare strains of cannabis that feature some of the 100 different cannabinoids, the compounds in the plant. Under the terms of the new deal, Cronos will issue to Ginkgo up to 14.7 million common shares once Ginkgo can show that certain microorganisms are capable of producing eight target cannabinoids above specified minimum productivity levels. The amended agreement "will enable Cronos Group to commercialize products using cultured cannabinoids ahead of reaching the originally stated productivity targets, while maintaining the incentives to continue to develop towards and achieve the previously agreed upon efficiency and cost goals," the company said in a statement. It expects to be the first to bring cultured cannabinoid products to market in Canada. Cronos U.S.-listed shares were up 09.4% premarket and have gained 23% in the year to date, while the Cannabis ETF has gained 42% and the S&P 500 has gained 11.6%.
3:11 a.m. June 4, 2021 - By Ciara Linnane
Tilray rated overweight at Cantor after Aphria merger closesCantor Fitzgerald assigned Tilray Inc. an overweight rating this week and said the new company -- it recently closed its merger with Aphria Inc. -- is alone among Canadian licensed producers with domestic scale and a credible overseas platform. Analyst Pablo Zuanic assigned the stock a $22 price target that is down from $30.25 before the merger, but about 11.5% above its current trading level. "Except in recent months (deal-related distraction?), Aphria was one of the best performers in Canada recreational (cannabis) achieving a #1 position (speaking in organic terms, and did so while achieving positive cannabis EBITDA), and Tilray ran ahead of peers in the export cannabis markets," Zuanic wrote in a note to clients. "We do not see another LP that can make these combined claims." Questions do remain however, about how the combined entity will meet some of its guidance, including a 30% share of the Canadian recreational market and a C$100 million ($82.4 million) cost synergy target, he wrote. Cantor is expecting the Canadian sector to enjoy favorable headwinds in the months ahead as consumer demand recovers from COVID and assuming some U.S. deregulation. Tilray shares were up 0.7% premarket and have gained 139% in the year to date, while the Cannabis ETF has gained 42% and the S&P 500 has gained 11.6%.
3:23 a.m. June 1, 2021 - By Tomi Kilgore
Canopy Growth reports wider-than-expected loss, but stock gainsThe U.S.-listed shares of Canopy Growth Corp. rose 0.8% in premarket trading Tuesday, even after the Canada-based cannabis company reported a wider-than-expected fiscal fourth-quarter loss and revenue that rose less than forecast. The net loss for the quarter to March 31 narrowed to C$700.0 million ($581.5 million), or $1.85 a share, from loss of $1.30 billion, or $3.72 a share, in the same period a year ago. The FactSet consensus for net losses per share was 25 cents. Net revenue rose 37.6% to C$148.4 million ($123.3 million), below the FactSet consensus of C$151.4 million, as total net cannabis revenue rose 27% to C$101 million. Canadian recreational cannabis revenue was C$61.1 million, up 39% from the sequential fourth quarter, while Canadian medical cannabis revenue grew 30% go C$74.8 million. Gross margin percentage was 6.6%, compared with negative 85.1% a year ago. The company said its cost-savings program is on track to deliver C$150 million to C$200 million of savings within the next 18 months, and the company remained committed to its path to profitability by the end of fiscal 2022. "We made tremendous progress improving our supply chain and right-sizing our manufacturing footprint, bringing supply and demand into balance," said Chief Executive David Klein. The stock has gained 5.9% year to date through Friday, while the Cannabis ETF has rallied 42.8% and the S&P 500 has gained 11.9%.
4:38 a.m. May 28, 2021 - By Ciara Linnane
Canadian cannabis company Hexo announces third deal of 2021, the purchase of Redecan for C$925 million in cash and stockCanadian cannabis company Hexo Corp. said Friday it has agreed to acquire privately held Redecan for C$925 million ($764.7 million) in cash and stock. Under the terms of the deal, Hexo will pay C$400 million in cash and issue C$525 million in common stock at an implied price of C$7.53, five trading day-period volume-weighted average price (VWAP) of HEXO common shares on the Toronto Stock Exchange. The deal is expected to close in the third quarter and create the leader in the Canadian adult-use market. Redecan is a family-owned business with 30 years of history in the agricultural sector. The deal is the third by Hexo this year. In February, it announced the purchase of Zenabis Global Inc. for C$235 million in stock, and earlier in May, it announced the acquisition of 48North Cannabis Corp. for C$50 million in stock. Shares rose 5% premarket and have gained 77% in the year to date, while the Cannabis ETF has gained 38% and the S&P 500 has gained 11.8%.
11:59 a.m. May 20, 2021 - By Jeremy C. Owens
Aurora Cannabis files for stock sale, mentions U.S. acquisition possibilityAurora Cannabis Inc. filed for a potential sale of $300 million in fresh shares Thursday, and mentioned the possibility of a U.S. acquisition. The Canadian cannabis company announced that it planned a $300 million at-the-market share offering , and filed with the Securities and Exchange Commission for the sale on Thursday. In both the prospectus and a news release announcing the filing, Aurora suggested the proceeds would be used toward finding an acquisition target in the U.S. market. "Aurora believes this filing will provide maximum flexibility for the Company to pursue select acquisitions going forward, including within the U.S.," the company stated in . "Aurora confirms that its current cash position remains strong at approximately $525 million as of May 13, 2021. Given the strength of Aurora's current cash position, it is not expected to need to access the ATM Program without an accretive use of proceeds." Aurora , but could be looking for a more traditional marijuana asset in the U.S. as many of the country's states legalize recreational sales of the drug. Canadian companies are not allowed to own cannabis companies in the U.S., as the drug is still federally illegal in the country, but can acquire warrants to own a company if or when the drug is decriminalized federally. Aurora's U.S.-listed stock was about 1.5% higher heading into the close Thursday, after falling nearly 40% in the past three months.
3:10 a.m. May 20, 2021 - By Ciara Linnane
Canopy Growth adds Martha Stewart as official strategic adviser after launch of CBD product lineCanopy Growth Corp. said Thursday it has named Martha Stewart as its official strategic adviser, building on her existing relationship with the Canadian cannabis company through her line of CBD-based wellness products. The household guru will advise the cmpany on branding, product innovation, format development and strategic partnerships, said Smiths Fall, Ontario-based Canopy. The company launched Stewart's product line in fall of 2020, offering gummies, softgels, and oil drops with flavor profiles inspired by her most popular recipes. That line was followed earlier in 2021 with a line of CBD products for pets. "Since launch, the product line-up has extended into top-selling gift boxes for occasions including Mother's Day and Valentine's Day, which sold out prior to the holiday due to high consumer demand," Canopy said in a statement. U.S.-listed shares were slightly lower premarket, and are down 7% in the year to date, while the Cannabis ETF has gained 27% and the S&P 500 has gained 9.6%.
3:43 a.m. May 17, 2021 - By Tonya Garcia
Pizza Hut adds Beyond Meat to the menu in CanadaPizza Hut and Beyond Meat Inc. said Monday that the plant-based meat alternative will be coming to Pizza Hut menus in Edmonton and the Greater Toronto Area (GTA). Restaurants in these regions will offer a limited-time three-item menu, each topped with Beyond Italian Sausage Crumble: a veggie pizza called The Great Beyond; Beyond Creamy Alfredo, a pasta dish; and an alfredo topped flatbread. Beyond Italian Sausage Crumble will also be available to add to any item on the Pizza Hut menu. Pizza Hut is part of the Yum Brands Inc. portfolio. Yum Brands shares are up nearly 10% for the year to date. Beyond Meat stock is down 16% for the period. And the S&P 500 index has gained 11.1% for the period.
2:56 a.m. May 17, 2021 - By Ciara Linnane
Hexo to acquire 48North Cannabis Corp. in the latest merger in cannabis sectorHexo Corp. said Monday it has agreed to acquire 48North Cannabis Corp. in an all-stock deal valued at about C$50 million ($41.3 million). Hexo, which in February in an all-stock deal valued at about C$235 million, said this latest deal is expected to generate synergies of about C$12 million annually within one year of close. The deal expands its product line to include topicals, bath and intimacy products. Under the terms of the deal, 48North shareholders will receive 0.02366 of a Hexo share for each share owned. Including a working capital bridge loan that Hexo will extend to 48North, the deal offers a premium of about 20% based on the 10-day volume-weighted average price of 48North common shares on the TSX-V and HEXO common shares on the TSX as of the close of markets on Friday. Hexo shareholders will own 96% of the combined company's shares, while 48North shareholders will own the remaining 4%. 48North's U.S.-listed shares were not yet active premarket, while Hexo shares were up 0.5% and have gained 65% in the year to date, while the Cannabis ETF has gained 26% and the S&P 500 has gained 11%.
4:41 a.m. May 7, 2021 - By Ciara Linnane
Tilray shares soar 10% premarket after Jefferies upgrades to buy, says Aphria merger 'the perfect match'Jefferies upgraded shares of the new Tilray Inc. to buy from underperform on Friday, and said the recent merger of the company with rival Aphria Inc. was "the perfect match." Analyst Owen Bennett raised his price target to $23 from $4.77. "In Canada, a leading portfolio of brands, supported (by) an efficient cost structure," the analyst wrote in a note to clients. "In Europe, the market is now picking up, while Tilray's scale and Aphria's unique German positioning make it perfectly suited to succeed. And in the US, the combined company's broader consumer goods portfolio and strong balance sheet supports excellent optionality around both US THC and CBD." Bennett is expected pro-forma fiscal 2020 to fiscal 2024 combined sales growing 33% to leave fiscal 2024 sales at $1.7 billion, compared with average major Canadian licensed producers of $482 million and major U.S. multi-state operators of $1.6 billion. Tilray shares were up 10% premarket and have gained 71% in the year to date, while the Cannabis ETF has gained 36% and the S&P 500 has gained 11.9%.
3:49 a.m. May 7, 2021 - By Ciara Linnane
Cronos shares slide premarket after earnings fall short of estimatesCronos Group Inc.'s U.S.-listed shares slid 4.2% in premarket trading Friday, after the Canadian cannabis company posted weaker-than-expected earnings for the first quarter. Cronos said it had a net loss of C$161.6 million ($132.7 million), or 44 cents a share, in the quarter, after income of C$75.7 million, or 20 cents a share, in the year-earlier period. Revenue net of excise taxes came to C$12.6 million, up from C$8.43 million a year ago. The FactSet consensus was for a loss of 11 cents a share and revenue of C$20.2 million. Chief Executive Kurt Schmidt said earnings were in Canada were impacted by "market dynamics due to the COVID-19 pandemic and ensuing stay-at-home orders and various other restrictions." The company's adult-use brand named Spinach will launch edibles in the coming weeks, a new category for the Canadian market. Shares have gained 10% in the year to date, while the Cannabis ETF has gained 36% and the S&P 500 has gained 11.9%.
5:00 a.m. May 5, 2021 - By Ciara Linnane
UPDATE: Canadian cannabis company Sundial to acquire Inner Spirit in cash-and-stock deal valued at C$131 millionCanadian cannabis company Sundial Growers Inc. said Wednesday it has reached an agreement to acquire Inner Spirit Holdings Ltd. , a retailer and franchisor of Spiritleaf recreational cannabis stores across Canada, in a cash and stock deal valued at about C$131 million ($106.7 million). Under the terms of the deal, Inner Spirit shareholders will receive 30 cents in cash and 0.0835 of a Sundial common share for each share owned, equal to 39 cents per share. That represents a premium of 54.8% over the 10-day volume-weighted average price of Inner Spirit shares on the Canadian Securities Exchange, and a premium of 62.5% over its closing price on Tuesday. The deal is expected to close early in the third quarter. Both companies are microstocks; Sundial closed at 79 cents on Tuesday, while Inner Spirit closed at 20 cents. Inner Spirit has 86 stores in British Columbia, Alberta, Saskatchewan, Ontario, and Newfoundland and Labrador. U.S.-listed shares of Sundial, which o , were up 4.9% premarket.
2:25 a.m. May 3, 2021 - By Ciara Linnane
Canadian cannabis company Organigram says CEO Greg Engel is stepping down with immediate effectOrganigram Holdings Inc. said Monday that Chief Executive Greg Engel is stepping down from his role effective today and will act as special adviser to the board through a transition period. The Moncton, New Brunswick-based cannabis company said Peter Amirault, currently chairman of the board, will act as executive chair on an interim basis until a new permanent CEO has been appointed. Shares were down 0.9% premarket but have gained 99.6% in the year to date, while the Cannabis ETF has gained 47% and the S&P 500 has gained 11%.
2:13 a.m. May 3, 2021 - By Ciara Linnane
Tilray says shares will start trading on Toronto Stock Exchange from May 5 after Aphria merger approvedCanadian cannabis company Tilray Inc. said Monday its shares will continue to trade on Nasdaq under the ticker symbol "TLRY" after its merger with fellow Canadian cannabis company Aphria Inc. which shareholders approved on Friday, and will start to trade on the Toronto Stock Exchange under the same ticker from May 5. The companies are expecting the new combined company, the world's biggest cannabis company measured by revenue, to generate pretax cost-saving synergies of $81 million with 18 months of closing. Irwin D Simon, currently Aphria's CEO and chairman, will lead the new Tilray, with Tilray's current CEO joining the board. Tilray's U.S.-listed shares were up 1.3% premarket, and have gained 122% in the year to date, while the Cannabis ETF has gained 47% and the S&P 500 has gained 11%.
6:36 a.m. May 2, 2021 - By Ciara Linnane
Tilray shareholders approve Aphria merger, creating world's biggest cannabis company by revenueTilray Inc. shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. at a special meeting on Friday, according to media reports, paving the way for the creation of the world's biggest cannabis company measured by revenue. The move was widely expected after Aphria shareholders voted in favor of a deal by a wide margin, with a total of 99.38% of shares voted approving it on April 14. The deal is expected to close in the second quarter. Under the terms of the proposed deal, Aphria shareholders will receive 0.8381 of a Tilray share of class 2 common stock for each Aphria share owned. Tilray to reduce its shareholder vote quorum to one-third of the voting power of the outstanding shares entitled to vote to approve the deal, instead of a majority of the voting power of the outstanding shares. That move was also expected to make it easier for the deal to be approved. Tilray shares closed Friday down 1.78%, but have gained 122% in the year to date. Aphria shares closed down 0.5% and are also up 122% year-to-date. The Cannabis ETF has gained 47% and the S&P 500 has gained 9%.
3:11 a.m. April 21, 2021 - By Ciara Linnane
Canopy Growth to partner with Southern Glazer's Wine & Spirits to distribute CBD-infused drinksCanadian cannabis company Canopy Growth Corp. said Wednesday it has entered an an agreement with Southern Glazer's Wine & Spirits to distribute its U.S. portfolio of CBD-infused beverages. Canopy recently launched the first drink in that portfolio, called Quatreau. Southern Glazer will start by distributing Quatreau in seven states and will add additional states in the coming months. The company will leverage its e-commerce platform at sgproof.com. Quatreau sparkling water contains 20 mg of U.S. grown hemp-based CBD, and comes in four flavors: Cucumber + Mint, Passion Fruit + Guava, Blueberry + Acai, and Ginger + Lime. Canopy shares were up 0.7% premarket and have gained 3.7% in the year through Tuesday's close, while the Cannabis ETF has gained 34% and the S&P 500 has gained 10%.
3:48 a.m. April 20, 2021 - By Ciara Linnane
UPDATE: Cannabis stocks rally premarket after House passes SAFE Banking ActCannabis stocks rallied across the board in premarket trade Tuesday, with the Cannabis ETF up 4.6%, after the that do business with companies in states that have legalized the plant for medicinal or recreational purposes from federal enforcement action. The so-called SAFE Banking Act -- SAFE stands for Secure and Fair Enforcement -- aims to open up the federally insured banking system to cannabis companies, that have been starved of capital and forced to do much of their business in cash. The bill would exempt cannabis business transactions from being considered proceeds from illegal activity and subject to anti-money-laundering laws. It would also prohibit banking regulators from asking banks to terminate a customer account unless there was a valid reason aside from reputation risk. The bill last passed the House in 2019, only to die in the Senate. Its fate this time around in the Senate now under Democratic control is still unclear. Premarket gainers were mostly Canadian companies, even though with the exception of Canopy Growth Corp. , they are not expected to immediately benefit from U.S. cannabis law reforms. Tilray Inc. was up 3.8%, Aphria Inc. , with which it is merging, was up 2.2%. Canopy was up 1.6% and Cronos Group Inc. was up 1.2%. Shares of U.S. multistate operators were not yet active.
3:14 a.m. April 15, 2021 - By Ciara Linnane
UPDATE: Aphria shareholders vote overwhelmingly in favor of proposed Tilray merger; Tilray vote moved to April 30Aphria Inc. said Thursday its shareholders have voted overwhelmingly in favor of its proposed merger with rival Tilray Inc., with a total of 99.38% of shares voted approving the deal. The news comes after Tilray said its shareholder meeting on the deal has been adjourned to April 30 from April 16. The meeting will be held via live webcast starting at 11.00 a.m. Eastern time. Under the terms of the proposed deal, Aphria shareholders will receive 0.8381 of a Tilray share of class 2 common stock for each Aphria share owned. The deal is expected to create the world's biggest cannabis company, measured by revenue. Aphria shares were down 0.2% premarket, but are up 106% in the year to date. Tilray shares were up 1.1% premarket and have gained 111% in the year to date, while the Cannabis ETF has gained 44% and the S&P 500 has gained 10%.
3:30 a.m. April 12, 2021 - By Tomi Kilgore
Aphria stock falls after wider-than-expected loss, revenue misses as COVID-19 reduced demandThe U.S.-listed shares of Aphria Inc. dropped 7.6% in premarket trading Monday, after the Canada-based cannabis company reported a wider-than-expected fiscal third-quarter loss and revenue that rose less than forecast, citing reduced demand resulting from the COVID-19 pandemic. For the quarter ending Feb. 28, the company swung to a net loss of C$366.8 million ($292.7 million), or C$1.14 a share, from net income of C$5.0 million, or C$0.02 a share, in the year ago period. Excluding nonrecurring items, such as unrealized losses and gains on convertible debt, adjusted losses per share widened to 15 cents from 4 cents, compared with the FactSet consensus for a per-share loss of 5 cents. Revenue rose 6.4% to $C153.6 million ($122.6 million), but missed the FactSet consensus of C$161.3 million. "As a result of the ongoing effects of COVID-19, including provincial lockdowns and provincial boards taking measures to lower their inventory levels which had previously included forecasted cannabis market growth, the company experienced what it believes is a transitory reduction in demand during the quarter," the company said in a statement. The average retail selling price of adult-use cannabis fell to 11% to C$3.82 per gram, while the average retail selling price of medical cannabis slipped 3.9T to C$6.69 per gram. "We remain excited with the opportunities created for both Aphria shareholders and Tilray stockholders in completing our , and believe that together, we will create one of the strongest global cannabis and consumer packaged goods companies in the world," Chief Executive Irwin Simon said. Aphria's stock has soared 135.3% year to date through Friday, while the Cannabis ETF has rallied 57.4% and the S&P 500 has gained 9.9%.
4:16 a.m. April 8, 2021 - By Ciara Linnane
Canopy Growth to acquire Supreme Cannabis for about C$435 million in stock and cashCanopy Growth Corp. said Thursday it has reached an agreement to acquire Toronto-based Supreme Cannabis Co. Inc. in a stock and cash deal valued at about C$435 million ($345.6 million). Under the terms of the deal, Supreme Cannabis shareholders will receive 0.01165872 of Canopy stock for each share owned, plus C$0.0001 in cash. That is equal to a premium of about 66% for Supreme Cannabis shareholders based on the closing prices of both stocks on the Toronto Stock Exchange on Wednesday. The deal gives Canopy access to premium Canadian brand 7Acres, along with consumer insights and R&D capabilities. The combined pro forma market share is estimated to be 23.3% of the premium flower segment in Ontario and 21.4% in British Columbia, the companies said in a joint statement. Canopy expects the deal to generate synergies of about C$30 million within two years. The deal is expected to close by the end of June. Supreme's U.S.-listed shares soared 16.5% premarket on the news. Canopy was up 1.4% and have gained 21.5% in the year to date, while the Cannabis ETF has gained 50% and the S&P 500 has gained 8.6%.
3:57 a.m. April 6, 2021 - By Ciara Linnane
Aphria revenue estimates lowered by Stifel ahead of Q3 earnings on weak cannabis consumption trendsStifel analysts lowered their fiscal third-quarter revenue estimates for Canadian cannabis company Aphria Inc. on Tuesday ahead of their release next Monday, putting their revenue and EBITDA forecasts below consensus. Analysts led by W. Andrew Carter said they now expect Canadian adult use shipment revenue to fall from the second quarter, due to weaker consumption trends and provincial inventory reduction/rationalization impacting shipments. "Amid renewed excitement for the cannabis sector yielding disproportionate gains for U.S. listed Canadian producers during 1Q21 (+98%, S&P 500 +6%), we believe valuations overall are incognizant of the market's structural challenges and near-term headwinds likely to pressure 1Q21 results," the analysts wrote in a note to clients. "Our focus remains on the pending merger with Tilray with our hold rating balancing our enthusiasm for the combined vehicle's robust growth prospects against more challenging near-term results with execution/integration critical to the platform's long-term success." Stifel rates Aphria and Tilray at hold. It raised its stock target price for Aphria to C$22.00 ($17.50) from C$15.50, or just below its closing price Monday of C$22.79. Stifel is now expecting Aphria to post revenue of C$163 million, from from a prior forecast of C$175 million. Aphria shares have gained 159% in the year to date, swept up in a broad-based rally driven by hopes for a relaxing of U.S. cannabis rules. Tilray is up 167% in the period. The Cannabis ETF has gained 58% and the S&P 500 has gained 8.6%.
3:43 a.m. March 31, 2021 - By Ciara Linnane
Green Thumb says newspaper article alleging federal probe of cannabis licensing is baseless and unfoundedGreen Thumb Industries Inc. said Wednesday a report in the Chicago Tribune on Monday alleging there is an open investigation by federal authorities into how it obtained cannabis licenses is unfounded and baseless. "Green Thumb first learned of the alleged probe into supposed violations regarding obtaining licenses from a Chicago Tribune reporter who cited unnamed sources shortly before the article was published," the company said in a statement. "Federal authorities have made no effort to initiate contact with Green Thumb." Chief Executive Ben Kovler said the reporter did not cite any credible sources or evidence and that the "salacious" front page headline was "intended to mislead." Green Thumb got its licenses by engaging in competitive state-run programs and M&A deals, he said. The company is seeking a retraction of the article. Shares were not active premarket but have gained 335% in the last 12 months, while the Cannabis ETF has gained 140%.
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