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 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. Right now, nine states and D.C. have legalized recreational marijuana and 29 states have legalized medicinal marijuana. Normally, when we talk "cannabis stocks," we are talking about companies that sell both recreational and medicinal cannabis. More and more companies, though, are starting to see the opportunity presenting in this quickly growing industry and we are continuing to see more marijuana initial public offerings (IPOs) on the calendar.
Here's a quick roundup of the cannabis sector news this week (October 12 through October 16):
Cronos Group Inc. (NASDAQ:CRON) announced on Wednesday that the company would be launching Happy Dance™, a new clean-ingredient and high-quality CBD skincare brand. This brand is co-founded with actress and New York Times' (NYT) best-selling author, Kristen Bell.
FSD Pharma Inc. (NASDAQ:HUGE) announced on Monday that the company will be dedicating resources toward development of a legacy anti-inflammatory drug as a potential coronavirus therapy.
Greenlane Holdings, Inc. (NASDAQ:GNLN), one of the largest global sellers of premium cannabis accessories and specialty vaporization products, announced on Monday that the company will be distributing Marley Natural™ accessories worldwide. The exclusive deal brings this iconic brand to specialty locations specifically in Central and South America, the Caribbean, and Europe.
Intec Pharma Ltd. (NASDAQ:NTEC), a biopharmaceutical company that works on creating a variety of therapeutics, announced on Sunday that the company entered into a new research collaboration with MSD, the trade name of Merck & Co., Inc. Details of the agreement are still being kept confidential.
Pyxus International, Inc. (NYSE:PYX), a global value-added agricultural company, announced on Tuesday that the company appointed Robert George, Carl Hausmann, Cynthia Moehring and Richard Topping to its Board of Directors, effective Monday, October 12.
22nd Century Group, Inc. (NYSE:XXII), a leading plant-based life science company driven by next-generation biotechnology, announced on Wednesday that the company was granted a new U.S. patent related to their process for reducing nicotine levels in tobacco plants. The new technology provides 22nd Century with a rapid pathway to introduce very low nicotine traits into virtually any variety of tobacco.
Aphria Inc. (NASDAQ: APHA), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, announced its quarterly financial results yesterday for the company's fiscal first quarter ended August 31. Aphria reported record-breaking gross revenue for adult-use cannabis of $69.6 million in their first fiscal quarter, an increase of 23% over the prior quarter, and marked the sixth consecutive quarter of growth for the company. Net cannabis revenue of $62.5 million in the first quarter was also reported, representing an increase of 103% from this quarter last year.
Aurora Cannabis (NYSE:ACB), the Canadian cannabis producer, announced on Tuesday that the company sold its stake in Australian medical marijuana company, Cann Group, worth $28 million. The Canadian producer claims, though, that it still sees promise in the Australian market.
Canopy Growth Corp. (NYSE:CGC), the largest cannabis company in the world by market capitalization, announced on Tuesday that the company entered into a new distribution partnership with two major alcohol distributors: Reyes Beer Division and Manhattan Beer. This initiative will further their progress in producing cannabis-infused beverages.
cbdMD, Inc. (NYSE:YCBD), one of the most recognizable cannabidiol (CBD) brands, announced on Wednesday the company's preliminary financial results for the fourth quarter of their fiscal year, focusing on the quarter ending on September 30. Net sales revenue for their fiscal year is expected to range between $41.7-$41.8 million as compared to the $23.7 million reported last year. Net sales revenue from the company's fourth quarter is expected to range between $11.5-$11.7 million compared to $9.54 million reported in Q4 of last year.
Although there is an extensive (and that's an understatement) roster of companies reporting quarterly earnings next week, there are currently no notable earnings announcements expected in the cannabis sector at this time. However, all earnings dates listed here are tentative and subject to change. Please check with each company's respective website for official reporting dates.