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 continues to take shape in 2021. But before we whiparound the industry, check out our recent articles analyzing meme stocks featuring some sector favorites like Tilray (TLRY) and Sundial Growers (SNDL) and how they "work." We also featured an in-depth article analyzing TLRY.
Investor interest in the cannabis industry is growing at an explosive 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.
The United States Cannabis Council (USCC) released the results of a poll focusing on the voters' opinions of federal cannabis reform. According to the story, 70% of registered voters in Arizona, Utah, and West Virginia supported legalization of cannabis on a federal level. The major takeaway from this recent study is that more and more Americans are accepting the concept of federal cannabis legalization.
In cannabis news around the world, Morocco has legalized the cultivation and commercialization of cannabis. However, according to the Minister of Morocco, "illegal use and consumption of marijuana is still prohibited in the country." The country wants to take advantage of the development opportunities in the cannabis industry and minimize illegal cultivation through this move.
Here is a quick roundup of major (and action-worthy!) cannabis stock news this week:
22nd Century Group, Inc. (NYSE:XXII), a leading plant-based biotechnology company focused on cannabis research, announced on June 7 that it has entered into a definitive agreement with one institutional investor for the sale of 10 million shares of its common stock at a purchase price of $4.00 per share in a registered direct offering for gross proceeds for $40 million. XXII also shared that, later this week, it would be added to the Russell 2000, Russell 3000, and Russell Global Indexes after the Russell US Indexes annual reconstitution, effective at the opening of the U.S. equity markets on June 28.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) announced on June 9 that the FDA had granted Orphan Drug Designation status to etrasimod, a highly selective, once-daily, oral sphingosine 1-phosphate (S1P) receptor modulator, for the treatment of eosinophilic esophagitis.
Canopy Growth Corp (NYSE:CGC) has been approved by Supreme Cannabis shareholders on June 10 to be sold. For $435 million. Supreme says 81.05 percent of the votes cast were in favor of the deal. The sale needed at least a two-thirds majority vote to be approved. Under the deal, Supreme shareholders will receive 0.01165872 of a Canopy common share and 0.01 of a cent in cash for each Supreme share held.
On June 9, Cardiff Oncology, Inc. (NASDAQ:CRDF), a clinical-stage biotechnology company developing onvansertib to treat cancers with the greatest medical needs for new treatment options, published a press release announcing the appointments of Mani Mohindru, Ph.D., and Renee P. Tannenbaum, Pharm.D., as independent members of the Cardiff Oncology's Board of Directors.
Cronos Group Inc. (NASDAQ:CRON), an innovative global cannabinoid company, and Ginkgo Bioworks, Inc, which is building the leading horizontal platform for cell programming, announced on June 4 that the two companies have amended collaboration and license agreement that will enable CRON and Gingko Bioworks to accelerate the commercialization of cultured cannabinoids to scale.
GrowGeneration Corp. (NASDAQ:GRWG), the nation's largest chain of specialty hydroponic and organic garden centers, announced on June 7 that Power Si, a proprietary brand operated and owned by GrowGen, has signed an exclusive distribution agreement with GreenPlanet Wholesale, one of Canada's oldest and most trusted hydroponic distributors.
On June 8, HEXO Corp (NYSE:HEXO) announced a commitment to offsetting the company's operational carbon emissions and the personal emissions of all 1,200 employees, with a goal of making HEXO operations 100% carbon neutral from September 2021 onwards. Subsequently, HEXO announced on June 9 that it had won a dismissal of the securities class action pending in the Commercial Division of the Supreme Court of the State of New York. HEXO and certain of its current and former officers and directors were named in shareholder class action lawsuits filed in the Southern District of New York.
Innovative Industrial Properties, Inc. (NYSE:IIPR), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, announced on June 8 that it had published its inaugural Environmental, Social, and Governance (ESG) report. IIPR's report highlights how the company addresses the top ESG priorities that matter to its stockholders, employees, tenant partners, communities, and other stakeholders.
On June 10, Neptune Wellness Solutions Inc. (NASDAQ:NEPT) announced that it has launched three new Mood Ring branded cannabis products, including the first branded flower product, in the province of British Columbia.
Also on June 10, Village Farms International, Inc. (NASDAQ:VFF) released the voting results from its annual and special meeting of shareholders held earlier. A total of 49.3 million common shares of VFF, representing 60.76% of the company's issued and outstanding common shares, were voted in connection with the meeting by shareholders and proxy holders.
Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE), the leader in innovative pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders, announced on June 10 that it had adjourned its 2021 Annual Meeting of Stockholders due to a lack of quorum. 46.4% of shares were voted, just below the 50% required for a quorum.