The Week In Cannabis: Stocks Underperform, Policy Moves, Earnings, Pitbull, Lil Kim, Justin Bieber, Martha Stewart And More

The Week In Cannabis: Stocks Underperform, Policy Moves, Earnings, Pitbull, Lil Kim, Justin Bieber, Martha Stewart And More

Below is a recap of the main news related to the cannabis industry and markets for the week of October 25, 2021.

Contents

  1. Markets
  2. Policy & Social Equity
  3. M&A
  4. Financings
  5. Earnings Reports
  6. Celebrity News
  7. Science & Data
  8. Canada
  9. International News
  10. Other News
  11. Executive Moves
  12. Top Stories Of The Week

Markets

Stocks traded down this week. Over the five trading days of this week:

  • The ETFMG Alternative Harvest ETF MJ: lost 5.2%.
  • The AdvisorShares Pure Cannabis ETF YOLO: tumbled 4.7%.
  • The AdvisorShares Pure US Cannabis ETF MSOS: fell 5%.
  • The Cannabis ETF THCX: was down 4.3%.
  • The Amplify Seymour Cannabis ETF CNBS: declined 4.8%.
  • The SPDR S&P 500 ETF Trust SPY closed the week up more than 1%.

Policy & Social Equity

  • As the opioid crisis in the U.S. reaches alarming numbers, resulting in roughly 100,000 overdose deaths in the past 12-month period, a massive surge from a year earlier – federal health officials are willing to try new approaches to stem the tragedy. This week, Secretary of Health and Human Services (HHS) Xavier Becerra revealed the Biden administration’s strategy to deal with the epidemic, which could include allowing supervised consumption sites.

Benzinga Cannabis’ content is now available in Spanish on El Planteo.

  • Eaze opened applications for its Momentum business accelerator to encourage and cultivate underrepresented cannabis businesses nationally.BIPOC, women, LGBTQ+ and military veterans nationwide can apply to the company's award-winning program.
  • The People’s Group (TPG), led by Christine De La Rosa, has launched a $50 million nationwide fund. The fund will invest in BIPOC and women-led cannabis businesses with the goal of breaking the pattern of oppression and creating a representative future for the growing industry. TPG is led, directed and advised by BIPOC women, queer people, the differently-abled, veterans and people with chronic illness as a catalyst for community empowerment. The fund will draw attention to the lack of social equity, capital and investment opportunities within the field. It also will work toward eliminating the barriers of prosperity and unlocking efficient pathways to profitability.

Acquiring Company

Acquired Company

Price

Conditions

Hydrofarm Holdings Group, Inc. HYFM

Growers Equipment Inc.

$58M

Cash & Stock

Thought Leaders

Mellow

$12.35M

Undisclosed

Meridian 125W Cultivation Ltd. 

TILT Holdings Inc. TILT (OTCQX: TLLTF)’s Sante Veritas Therapeutics

$728,000

Cash

Stem Holdings, Inc. d/b/a Driven by Stem STMH STEM

Colorado Harvest Company

Undisclosed

Undisclosed

RYAH Group, Inc. RYAH RYAHF

Omni Medical Services

Undisclosed

Undisclosed

Financings

Company

Lead Financier

Amount

AFC Gamma, Inc. AFCG

Senior Note Offering

$100M

Medicanja

Noble Capital Fund

$15M

Bloomwell Group

Measure 8 Venture Partners

$10M

Earnings Reports

  • InterCure Ltd. (NASDAQ: INCR) INCR INCR, doing business as Canndoc, reported preliminary unaudited revenue of CA$24 million ($19.41 million) for the third quarter of 2021. Israel’s largest licensed cannabis producer plans to file its full financial results for the third quarter of 2021 on Monday, November 15, 2021.
  • Zig-Zag rolling papers producer, Turning Point Brands TPB, reported its financial results for the third quarter ended September 30, 2021. Based in Louisville, Kentucky, the company announced that its net sales increased 5.5% year over year to $109.9 million, missing estimates by $3.03 million, according to Seeking Alpha.
  • HEXO Corp. HEXO HEXO reported its financial results for the fourth quarter and fiscal year ended July 31, revealing a 71% quarter-over-quarter and a 43%year-over-year growth in total net sales. In the fourth quarter, total revenue amounted to roughly CA$38.7 million ($31.3 million), beating FactSet consensus of CA$33.7 million and marking HEXO's best quarter of sales to date.
  • Lifeist Wellness Inc. LFST (FRANKFURT: M5B) (OTCMKTS: NXTTF), previously known as Namaste Technologies, released its third-quarter earnings Friday with gross revenue improving 12% year-over-year reaching CA$7.1 million ($5.73 million). 

Find all the details on these and other earnings reports on Benzinga Cannabis’ Earnings Center.

Celebrity News

  • Grammy award-winning rap artist Lil’ Kim announced that she is launching her own cannabis brand, Aphrodisiac, which is being produced in partnership with superbad inc. an innovative cannabis brand based in California.
  • Flower One Holdings Inc. FONE FLOOF (FSE: F11) partnered with Justin Bieber and current brand partner Palms to launch the limited-edition of PEACHES pre-rolls. Through this collaboration, the Las Vegas company will become the exclusive producer of Palms "PEACHES" in Nevada.
  • The one and only Martha Stewart and Marquee Brands have jointly launched a new CBD line – Harvest Medley CBD Wellness Gummies in partnership with Canada's 
  • Canopy Growth Corp. (NASDAQ: CGC). The "Domestic Diva" confirmed the rollout of the sweet new line of permanent and limited-edition Mini CBD Peppermint Ribbons and Snowflake CBD Gummy Sampler. The limited edition will be available only during the upcoming holiday season.

Science & Data

A new study published last month is shedding light on the cannabis plant’s therapeutic potential.

While a bipartisan group of federal lawmakers only recently introduced a bill to remove federal barriers for conducting research on marijuana, researchers have come up with creative ways to study the plant’s effects on the general population by conducting observational studies.

The paper, published in the peer-reviewed journal, Frontiers In Psychiatry, found that medical cannabis use was associated with lower self-reported depression as well as decreased anxiety in adults. The research was conducted by Johns Hopkins University in association with the Realm of Caring Foundation.

A study undertaken by the San Francisco-based cannabis delivery platform Eaze found an increasing crossover between cannabis use and off-the-couch activities including work, fitness and intimacy, reported Adweek.

“It may sound counterintuitive, but cannabis for responsible adults does exist,” said Elizabeth Ashford, vice president of communications at Eaze

As more states pass laws allowing adult use of cannabis, concerns that legalization would make marijuana more accessible to young people arise. 

recently released poll from the National Survey on Drug Use and Health (NSDUH) found that there has been a significant drop in cannabis usage among teenagers, aged 12-17, pointed out the National Organization for the Reform of Marijuana Laws (NORML). 

Past-year cannabis use among the young population nationwide declined from 13.2% to 10.1% from 2019-2020, according to recent data gathered by the Substance Abuse and Mental Health Services Administration (SAMHSA).

However, for those aged 18 to 25, past-year marijuana use percentages remained almost unchanged, dropping only slightly from 35.4% to 34.5% over the same period.

Canada

Poke A Bowl selected its first brick-and-mortar dispensary chain to retail its products in the Canadian market. ERBN Green, a female-founded company with multiple locations in Ontario and 2 new ones coming soon to British Columbia, has agreed to stock the full line of Poke A Bowl products.

“This is very exciting for me,” Creagen Dow, CEO and founder of Poke A Bowl said. “Through one partner, our products become available in two of Canadas largest cannabis markets Ontario and British Columbia. Also, this is sort of a coming home for me since my family originates from Canada.”

International News

Tilray, Inc. TLRY TLRY was chosen by the Luxembourg Ministry of Health as a supplier of medical cannabis products for the country’s recently announced medical cannabis program.

The Canadian cannabis giant will supply Luxembourg with a variety of its pharmaceutical-grade and Good Manufacturing Practice-certified medical marijuana products. These will include extracts and dried flower with different degrees of THC and CBD for patients with varying medical conditions.

These prescription-based medical cannabis products will be administered to qualifying patients in Luxembourg under the supervision of physicians.

Other News

Agrify Corporation AGFY signed a definitive agreement with its first Arizona-based customer, Olive El Mirage Partners LLC.

And an NFT game that allows the user to build a cannabis business from scratch and grow rare strains while participating in a competitive economy was launched this week. This wonderful invention, specifically geared towards fans of the plant and crypto, is called Cryptobuds and will be available soon.

Executive Moves

MedMen Enterprises Inc. MMEN MMNFF promoted Roz Lipsey to chief operating officer, succeeding Tim Bossidy, who served as an interim COO since 2020.

Lipsey has been part of the company's executive management team since 2020. Prior to the promotion, she served as senior vice president of business operations.

Find out all about the latest executive moves at:

Top Stories Of The Week

Check out the top stories on Benzinga Cannabis this week:

Top Spanish Stories

Lead image by Ilona Szentivanyi. Copyright: Benzinga.

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