Major moves announced within the cannabis industry after the Green Wave last week during the U.S. election
Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks last week and we will look ahead at the pot stocks to watch in the upcoming week.
Investor interest in the cannabis industry continues to grow and the leading players continue to break through legal barrier after legal barrier, especially following the 2020 election. Prior to last week's election, nine states and D.C. have legalized recreational marijuana, and 29 states have legalized medicinal marijuana. After the election, five more states joined in legalization of marijuana sales. More and more companies are starting to see the opportunity in cannabis selling, suggesting there are more marijuana initial public offerings (IPOs) on the horizon.
Here's a quick roundup of a major cannabis sector news last week (Nov. 9 through Nov. 13):
Akerna (NASDAQ:KERN), an enterprise software, the leading developer of the cannabis industry's first seed-to-sale enterprise resource planning (ERP) software, announced its quarterly financial results for its quarter ending on November 12. The company's net loss was reportedly $4.7 million compared to a net loss of $2.3 million for the past quarter.
Canopy Growth Corp (NYSE:CGC), one of the most well-known and loved cannabis companies, received an analyst price target increase on November 10 from Cantor Fitzgerald, on optimism on Canadian cannabis growth opportunities. Then, on November 11, the company announced a product launch with known-advisor, Martha Stewart. Canopy Growth and Stewart plan to release the Martha Stewart CBD Wellness Gummies Sampler that is currently available for pre-order only.
Arena Pharmaceuticals (NASDAQ:ARNA), a biotechnology company located in San Diego, reported its quarterly financial results for its third quarter of 2020 on November 9. Earnings per share (EPS) fell 15.8% over the past year to down to -$1.69. The reported EPS beat its estimate of -$1.87. Reported revenue decreased by 98.5% as compared to the third quarter of 2019, where the company missed its revenue expectations, too.
Aurora Cannabis Inc. (NYSE:ACB), the Canadian company defining the future of cannabinoids worldwide, announced on November 10 that it will be filing a preliminary prospectus supplement relating to a proposed overnight marketed public offering of units of the Company for $7.50 per unit for total gross proceeds to the company of approximately $125 million.
cbdMD, Inc. (NYSE:YCBD), one of the leading cannabidiol (CBD) brands, announced on November 12 that it plans an expansion of its topical product line with the launch of ‘Premium Relieve’, a product that combines the pain-fighting power of Lidocaine with Superior Broad Spectrum CBD extracts – leading to total wellness in one unique topical formula.
FSD Pharma Inc. (NASDAQ:HUGE), announced it quarterly earnings on November 12 for the third quarter ending on September 30. The company reported a net loss of $18 million, compared to $17 million reported in the third quarter of 2019.
HEXO Corp. (NYSE:HEXO), announced on November 9 that Trent MacDonald’s security clearance request under the Cannabis Act has been granted by Health Canada. As previously announced, Mr. MacDonald had been appointed to the Company’s executive leadership team in the acting role of Chief Financial Officer, with his permanent role as Chief Financial Officer to commence upon the successful completion of Health Canada’s security clearance process for key personnel. With his security clearance having been granted, Mr. MacDonald now moves into a permanent role as Chief Financial Officer.
Organigram Holdings Inc. (NASDAQ:OGI), the parent company of Organigram Inc, a leading licensed producer of cannabis, announced on November 10 that it has underwritten a public offering of units of the company whereby a syndicate of underwriters has agreed to purchase 32.5 million units from the Company for $1.85 CAD per unit, for total gross proceeds of $60.1 million CAD.
Sundial Growers Inc. (NASDAQ:SNDL), reported earnings on November 11 for its third quarter of 2020. Net loss was reported at $71.4 million CAD in the third quarter; adjusted EBITDA loss increased by 13% over the previous quarter to $4.4 million CAD from $3.9 million CAD.
Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, reported quarterly earnings November 10. Net loss was reported at $2.3 million, compared to a net loss of $36.4 million reported in the third quarter of 2019.
Village Farms International, Inc.(NASDAQ:VFF), announced on November 12 that Village Farms’ wholly-owned subsidiary, Village Farms Clean Energy, Inc. (“VFCE”), has renewed and extended its existing contract with the City of Vancouver under which VFCE receives landfill gas captured by the City of Vancouver at the City’s landfill site in Delta, BC.
Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE), the leader in innovative pharmaceutically-produced cannabinoid therapies, reported financial results for the third quarter on November 9. The company's net loss for the third quarter of 2020 was $9.0 million.
Nearly 7 in 10 Americans now support legalizing marijuana nationwide, according to a Gallup poll released on November 9. Overall, 68% of respondents said they favor legalizing cannabis for adult use, which is “Gallup’s highest reading” since the firm started polling voters on the issue, it said. Last year, the survey found just 66% support for legalization.