JAZZ and GWPH marked the first major cannabis merger of 2021
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 look ahead to how the cannabis industry will develop in the 2021.
Investor interest in the cannabis industry is growing at an explosive growth rate, and the leading players continue to break through legal barrier after legal barrier, especially in the United States. More than 40 U.S. states legalized recreational and/or medical marijuana by the end of 2020. Now, more and more companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.
After the Senate runoff elections tilted the majority toward Democrats last month, there has been continuing anticipation that the prospects of cannabis legislation will now find footing in Congress. While full-scale legalization may be out of reach, smaller reforms tied to police and banking could positively impact the cannabis industry. In fact, on Tuesday, Majority Leader Chuck Schumer and two other Democratic senators said that cannabis reform would be a top priority, triggering hope within the cannabis industry for an end to federal prohibition in the near future.
As the cannabis sector continues to grow, investors can anticipate many more marijuana stock initial public offerings (IPOs) on the horizon for the cannabis industry.
Here is a quick roundup of major cannabis stock news this week (Feb. 1 through Feb. 5):
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) announced on Feb. 2 that it has completed full enrollment of the Phase 3 trial evaluating the safety and efficacy of etrasimod, a highly selective, once-daily, oral S1P receptor modulator, in participants with moderately-to-severely active ulcerative colitis. The trial enrolled 433 study participants in approximately 40 countries globally.
cbdMD, Inc. (NYSE:YCBD), one of the world’s leading and most highly trusted and recognized wellness CBD companies, announced on Feb. 4 that it has retained former U.S. Food and Drug Administration (FDA) official Dr. Sibyl Swift as a regulatory consultant to oversee the company’s regulatory initiatives and prepare its products for further certifications. This comes shortly after the heartwarming announcement on Feb. 1 that YCBD will donate up to $500,000 from its online sales to The Barstool Fund to benefit small businesses.
Greenlane Holdings, Inc. (NASDAQ:GNLN), one of the largest global sellers of premium cannabis accessories and specialty vaporization products, announced on Feb. 2 that its NYC-based luxury lifestyle brand, Higher Standards, opened three new shop-in-shop retail locations in Uruguay in collaboration with the Kaya Herb Group. Further expanding Greenlane’s global footprint, the high-profile locations mark Higher Standards’ first international stores.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) and GW Pharmaceuticals plc (NASDAQ:GWPH) announced on Feb. 3, the companies have entered into a definitive agreement for JAZZ to acquire GWPH for $220.00 per American Depositary Share (ADS), in the form of $200 in cash and $20 in JAZZ ordinary shares, for a total consideration of $7.2 billion, or $6.7 billion net of GW cash. The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close in the second quarter of 2021.
Organigram Holdings Inc. (NASDAQ:OGI) announced on Feb. 2 that Matt Rogers, Senior Vice President of Operations, will be leaving Organigram at the end of May 2021.
Sundial Growers Inc. (NASDAQ:SNDL) announced on Feb. 4 that it has closed a best efforts underwritten registered offering of 60.5 million Series A Units, each consisting of one common share and one-half Series A Warrant with each whole Series A Warrant entitling the holder to purchase one common share, and 14 million Series B Units, each consisting of one pre-funded Series B Warrant to purchase one common share and one-half Series A Warrant, with each whole Series A Warrant entitling the holder to purchase one common share.
Village Farms International, Inc. (NASDAQ:VFF) announced on Feb. 4 that its wholly-owned subsidiary, Pure Sunfarms, unveiled its first cannabis-infused edible products, Real Fruit Gummies.
GrowGeneration Corp. (NASDAQ:GRWG) confirmed a second acquisition for 2021 on Feb. 1. GRWG purchased Grow Depot, a two-store chain in Auburn and Augusta, Maine. The financial details of the deal were not yet released.
Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, announced on Feb. 4 that it has agreed with Worldpharma Biotech, through its wholly-owned subsidiary Tilray Portugal, to export Good Manufacturing Processes (GMP) certified medical cannabis from Portugal to Spain.