passed a bill to legalize adult-use cannabis – which now only needs the governor’s signature; the FDA held a public hearing on the regulation of products containing CBD; and a federal appeals court re-opened a case against the federal government and the DEA, which challenges cannabis’ illegality – ultimately the court urged the federal government to move forward with the de-scheduling of marijuana “with all deliberate speed.”” data-reactid=”18″>In a week that can only be described as eventful, Illinois lawmakers passed a bill to legalize adult-use cannabis – which now only needs the governor’s signature; the FDA held a public hearing on the regulation of products containing CBD; and a federal appeals court re-opened a case against the federal government and the DEA, which challenges cannabis’ illegality – ultimately the court urged the federal government to move forward with the de-scheduling of marijuana “with all deliberate speed.”
CRLBF), told Benzinga, “The legislation passed in Illinois reflects the positive social equity and economic impact that the regulated recreational-use cannabis industry can have on cities and states.”
Regarding the lawsuit against the federal government, one of the plaintiffs, Nelson Guerrero, executive director of the Cannabis Cultural Association told Benzinga: “Come fall we will be heard again by the second circuit, and hopefully the DEA will do right by the people with a fair and fast decision. The unconstitutional prohibition of cannabis is coming to an end under this administration or the next; we are one step closer to freeing the plant so we can free the people.”
In relation to the FDA hearing, Benzinga spoke with Wendy May Real, MBA, founder and CEO of Pure Bloom CBD. She said the FDA’s public hearing, featuring more than 100 speakers, medical professionals and advocates within the CBD industry, left her with mixed emotions.
“I was happy to see of the FDA’s willingness to hear public comment and acknowledged the need for a more defined regulatory framework. But, [the FDA] was unable to provide any immediate timeline or path forward for this framework.”
travel with certain hemp-derived CBD products, Arizona’s Supreme Court ruled in favor to the legality of cannabis extracts – reversing a lower court decision, and South Africa passed legislation that partially legalizes CBD and CBD products.” data-reactid=”23″>In other news, the Transportation Security Administration updated its rules to allow people to travel with certain hemp-derived CBD products, Arizona’s Supreme Court ruled in favor to the legality of cannabis extracts – reversing a lower court decision, and South Africa passed legislation that partially legalizes CBD and CBD products.
We also witnessed a myriad of big earnings reports and other big developments in the corporate world, all featured in detail below.
Over the last five trading days, including last Friday, since U.S. markets were closed on Monday due to Memorial Day:
HMLSF) (TSE:HMMJ) lost 7.4 percent.
MJ) tumbled 7.4 percent.
YOLO) lost 6.1 percent.
SPY) closed the period down 2.66 percent.
Here are some of the top marijuana stocks (market cap above $500 million) in U.S. exchanges and how the performed over the last five trading days:
ACRZF): down 3.85 percent
APHA): down 10.3 percent
ACB): down 8.7 percent
CTST): down 7.9 percent
CGC): down 9.4 percent
CRON): down 8.45 percent
CURLF): down 9.1 percent
GGBXF): down 9 percent
TGODF): down 13.3 percent
GTBIF): up 2.6 percent
GWPH): down 5.65 percent
HEXO): down 5 percent
HRVSF): down 10.7 percent
ITHUF): up 1 percent
MRMD): down 5.75 percent
MMNFF): up 0.2 percent
OGI): down 3.3 percent
SMG): up 0.7 percent
TLRY): down 13.4 percent
Vardaman will help lead the team at Simplifya that analyzes state and local cannabis compliance and regulatory requirements, so that those requirements can be reflected in the software in a simple and easy-to-follow format. Simplifya’s software is guiding the compliance efforts of cannabis cultivators, retailers and product-makers across 12 states.
Brand development and distribution is key to GTI’s strategy, according to GTI founder and CEO Ben Kovler.
“Our core brands Rythm, Dogwalkers, The Feel Collection and Beboe, are experiencing great quarter-over-quarter growth, driven by new distribution across the country. Rythm has new distribution in Florida and Nevada; Dogwalkers has begun selling in Nevada and Massachusetts; and The Feel Collection is gaining great traction in Florida. We’ve expanded the Beboe brand with the launch of Beboe Therapies, a premium CBD-infused skincare line, which began selling online and in select high-end retailers including Barneys New York and Neiman Marcus.
„We believe the mainstream visibility will reinforce the core TCH product line as we launch it across the country. We continue to invest in our core brands and believe that our branding will be further elevated as we explore new distribution channels in both existing and new markets,” he said.
ORHOF) reported first-quarter results that showed substantial revenue growth — and expenses that grew proportionately higher. The company’s revenue of CA$11.2 million ($8.29 million) was significantly higher than CA$600,000 a year earlier and grew by 41 percent sequentially. Origin House’s gross margin amounted to C$A1.7 million in the quarter versus a flat figure in the same period of 2018.
“Moving forward through the balance of the year, we’re confident that, once completed, the combination of Cresco Labs’ scale and Origin House’s California-wide distribution footprint will further accelerate growth and build significant value for the shareholders of both companies,” Origin House CEO and Chairman Marc Lustig told Benzinga. Full results here.
First-quarter revenue came in at $21.1 million, which was also up 24 percent quarter over quarter. That revenue number missed the consensus estimate of $22.8 million, according to Refinitv. Full results here.
VREOF) first-quarter earnings showed total quarterly revenue of $5.8 million, marking a 57-percent increase year over year. Pro forma revenue for the quarter was roughly $7 million. The company also successfully completed the reverse takeover Darien Business Development Corp., raising $51.4 million through brokered and non-brokered private placement. Vireo also acquired several licenses in Arizona, Massachusetts, Nevada, New Mexico and Rhode Island. Full results here.
HLIX) subsidiary, BioTrackTHC, collaborated with the North Dakota Department of Health to launch digital mobile-friendly ID cards for medical marijuana patients in the state. BioTrack provides the government seed to sale traceability system in North Dakota, and this is the first legal medical cannabis program where patients will have instant access to their patient cards upon approval as well as real-time visibility over their daily purchase limits.
“BioTrack worked closely with the North Dakota Department to incorporate this new feature into our traceability system, so that patients will not have to wait days or weeks for a physical card to be printed and mailed to them,” said Patrick Vo, CEO of BioTrackTHC. “They are able to download their mobile cards the moment they are approved and walk into a licensed dispensary to obtain the medicine they need.”
Cresco is providing a pathway to business ownership through its incubator program, which will assist states in achieving their diversity goals for regulated cannabis programs. Their plan is to drive social change through collaboration with universities and local organizations and provide 20,000 individuals with the opportunity to seek employment in the cannabis industry by 2022.
“Cresco’s success to date is firmly rooted in our early understanding that this industry will develop in a very community-focused manner. The SEED initiative is a reflection of our goal to create inclusion and share the benefits that come from being a part of this industry,” said CEO Charlie Bachtell. “The future of the cannabis industry, especially as this industry transitions to more of a focus on adult-access programs, includes a significant priority on matters of Social Justice, Social Equity and Inclusiveness, and Cresco has made these priorities a core part of our business model.”
CADMF)’s wholly owned subsidiary La Finca Interacviva-Arachna Med SAS received notification of the approval of three new cultivation licenses for three additional farms located near Bogota, Colombia.
BUD), where he led brand building efforts. Prior to ABInBev, Rabin worked for nearly a decade at Bayer HealthCare as a brand builder in the Consumer Health division, where he built brands and ultimately oversaw the Global Aspirin franchise.
“I am excited to join an industry leader like Vireo that maintains a unique position in the market,” Said Rabin. “Vireo’s experienced leadership group, led by a team of physicians and scientists, combined with licenses in ten medical and recreational states, a growing portfolio of brands, and compelling IP is a recipe for success.”
DRVD) signed a Letter of Intent to acquire Mountain High Recreation (MHR). This acquisition deal will provide Driven Deliveries with another revenue vertical which will ultimately increase the company’s market share.
„Driven Deliveries is executing on its strategic plan by growing both organically and with acquisitions as we continue to scale our business to service our customers and stakeholders,” commented Mr. Brian Hayek, President of Driven Deliveries. „As the cannabis industry in California continues to mature, we are confident that acquisitions of companies such as MHR will provide us with the scale and infrastructure to maintain our competitive advantage.”
PLNHF), the world’s largest dispensary, launched its national Planet M CBD brand – a line of custom formulated full-spectrum and CBD isolate products. Planet M will sell CBD tinctures, edibles, topicals and more. The company also announced Q1 results, including Q1 revenue of $13.8 million with the SuperStore now generating over $5 million per month in revenue.
CNPOF) promoted Narbé Alexandrian from President to Chief Executive Officer. In his expanded role as CEO, he is responsible for leading Canopy Rivers’ growth strategy and building value for all Canopy Rivers shareholders. His appointment is effective immediately.
Bruce Linton will continue to serve as Chairman of the Canopy Rivers Board of Directors.
“This opportunity represents a rare once in a lifetime opportunity to build a global company in a brand new worldwide market. I am incredibly excited about the potential this represents for the Canopy Rivers team and for our portfolio companies,” Alexandrian said.
“The formulation was developed with equal parts THC and CBD for a centered feeling of bliss and calm in our Coffee & Doughnuts, Cream & Crumble, Caramel & Corn and Snap & Spice,” said Mark Grindeland, Coda Signature Co-Founder and CEO. “At Coda, we’re celebrating the synergistic duet of THC and CBD.”
The Green Organic Dutchman announced a supply agreement to Alberta, Canada, increasing their distribution footprint. They can talk about supply challenges or distribution in Canada’s legal market.
GEATF) completed its 51 percent acquisition of La Vida Verde, which has generated $13.8 million in revenue in 2018.
BIOIF) announced the first commercial harvests of cannabis from its Antigonish, Nova Scotia cultivation and distribution facility, commencement of shipments to licensed retailers in Nova Scotia and the onboarding of the Newfoundland & Labrador market.
“The quarter reflected the start of our commercial activities. We are ramping our volumes significantly in Q2 where each month dwarfs the revenue we generated in all of Q1. We are also garnering some of the highest prices in Canada for our products reflecting our local branding approach, the high visual quality of our flower products, attractive cannabis and terpene profiles, and low waste packaging. We are excited to unveil these increased volumes later this summer as well as our international projects that will drive considerably more revenue that what Biome will generate in Canada,” Khurram Malik, CEO of Biome Grow, told Benzinga.
TRLFF), formerly True Leaf Medicine International, signed its first CBD supply agreement for the supply of full spectrum, farm-fresh CBD oil to support the development and launch of its debut line of CBD products for pets.
The line will be unveiled this summer at SuperZoo 2019, North America’s premier pet industry trade show, being held August 20-22, in Las Vegas, Nevada.
“We are closer than ever to launching our highly anticipated line of CBD products for pets,” said Darcy Bomford, Founder and Chief Executive Officer of True Leaf. “Our CBD supplier Atalo is well-known for its focus on sustainable agronomics, and their proprietary, internationally certified pedigreed seed grown by seventh generation Kentucky hemp farmers. With Atalo’s supply of top-quality CBD we are confident that we can meet the growing market demand and continue to be the cannabis-for-pets brand that retailers and pet parents trust.”
TRSSF) closed its non-brokered private placement. Orders totaled an approximate CA$69 million (about $93 million USD). Full story here.
MEDIF), a company that specializes in research-driven cannabis extraction and cannabinoid isolation, announced an agreement with Bank of Nova Scotia (NYSE: BNS) on behalf of a syndicate of underwriters that will purchase 10.815 million common shares of the company on a bought deal basis, at a price of $5.55 per share. Gross proceeds will amount to C$60 million. Full story here.
ZRRRF) acquirer famed British pipe maker Astleys of London for $7.8 million in cash and stock. Full story here.
CWBHF) started trading on the Toronto Stock Exchange. Full story here.
Here are some of the most interesting cannabis-related stories from this week.
An analysis on Cronos Group potentially finding technical support.
This piece on Cowen’s latest report on cannabis.
“8 Things You Need To Know About Eating Marijuana Edibles.”
“Google Takes Measures To Restrict Marijuana Sales”
“Your Brain On Weed: Concussions And Cannabis”
“Canopy Growth CEO Bruce Linton Talks The 'Next Wave’ Of Cannabis With Cramer”
“Cowen’s Pascarelli: CBD Market Shows 'Encouraging Signs’”
“The Polarizing Position Of CBD Products Among Veterinarians”