OGI and VLNS released notable earnings this week
Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks this week, and look ahead to how the cannabis industry will continue to develop in 2022.
Here is a quick roundup of major cannabis stock news during this holiday-shortened week:
Blessed CBD subsidiary of High Tide Inc. (NASDAQ:HITI) subsidiary, Blessed CBD, launched sales of its CBD products on Amazon (NASDAQ:AMZN) in the UK on Monday. In order to sell on Amazon UK, retailers are required to have received Novel Foods Authorization from the Food Standards Agency. This announcement comes about a month after Flora Growth Corp. (NASDAQ:FLGC) subsidiary, JustCBD, began selling on Amazon.co.uk. In addition to the new listings on Amazon UK, High Tide opened its 128th Canna Cabana retail cannabis store in British Columbia on July 13. High Tide stock is up nearly 9% over the past month.
A supply agreement was signed by Akanda Corp. (NASDAQ:AKAN) and Tetra Bio-Pharma on Monday stating that AKAN will supply Tetra Bio-Pharma with pharmaceutical grade cannabis flower in a cap form. Tetra Bio-Pharma will then use this product to commercialize Tetra’s QIXLEEF and other products from the company. In addition to the basic supply agreement, Akanda will also act as CDMO (contract development and manufacturing organization) for clinical drug and commercial supply programs. According to AKAN, “In supporting a terrific partner with a mission to improve patient health and quality of life though cannabinoid-derived medicine, we are demonstrating that cannabis can fit into the traditional public sector model, with the expectation of reimbursement. Simultaneously, we are productively utilizing our diverse capabilities to support clinical trials for pharma grade cannabinoids. If approved, we expect to provide flower for the authorized compound, potentially creating a significant, incremental revenue stream for Akanda.” Despite being down 90% year-to-date, Akanda stock is up 7% over the past 30 days.
Tilray Brands, Inc. (NASDAQ:TLRY) closed its acquisition of the secured convertiblle note issued by HEXO Corp. (NASDAQ:HEXO) from HT Investments MA LLC. Through HEXO and Tilray's newly formed strategic alliance, they are expected to deliver as much as $80 million in shared cost-savings over the next two years. According to TLRY, “We are excited to close on this strategic transaction and alliance with HEXO, which is expected to provide several financial and commercial benefits, including substantial cost-savings synergies, increased strength in product innovation to capitalize on for market opportunities in Canada and internationally, along with the U.S., upon federal legalization.” HEXO stock is down nearly 96% year-over-year, whereas Tilray stock is down just 74% over the past 12 months.
Later in the week, Tilray also announced a ‘Wild West’ lineup under the brand, CANACA, at the Calgary Stampede. The Calgary Stampede is also known as The Greatest Outdoor Show on Earth, featuring North America's premier rodeo and western festival. CANACA is hosting a western lounge during the Calgary Stampede with limited edition products.
Second quarter of fiscal 2022 financial results were released by The Valens Company Inc. (NASDAQ:VLNS) this week, featuring a quarter-over-quarter increase of 3.5%, or $18.22 million. According to VLNS, "The second quarter of 2022 clearly shows that we are executing on our 2022 objectives showing both modest revenue growth in the quarter and a meaningful decline in both cash burn and SG&A expenses. This is expected to accelerate in future quarters as the majority of cost savings from our integration initiatives have not been fully realized as these initiatives were executed part way through Q2 and into Q3 2022." Valens stock is currently down 73% year-to-date.
Third quarter of fiscal 2022 financial results were released by OrganiGram Holdings Inc. (NASDAQ:OGI) this week, featuring a year-over-year net revenue increase of 88%, or $38.1 million. According to OGI, “We are pleased to see continued strength in our recreational business with our increasing market share. We achieved record net revenue results which we expect to surpass again in Q4 on the strength of new product listings, increased retail sales momentum and international shipments." OrganiGram stock is up over 7% in the last month despite being down 60% year-over-year.