The Week In Cannabis: New York's Impending Legalization, Major Earnings Reports, Mexico Delays, And More

Cannabis stocks traded down this week despite a series of good news.

Over the last five trading days of this week:

  • The ETFMG Alternative Harvest ETF MJ: lost 5.7%.
  • The AdvisorShares Pure Cannabis ETF YOLO: tumbled 8.15%.
  • The AdvisorShares Pure US Cannabis ETF MSOS: dropped 9.4%.
  • The Cannabis ETF THCX: was down 8.7%.
  • The Amplify Seymour Cannabis ETF CNBS: slipped 6.8%.
  • The SPDR S&P 500 ETF Trust SPY was up 1.61%.

“Of course the big news this week was the word that New York legislators had supposedly reached an agreement on legalization language. It does indeed look as if legalization is moving forward, although no one is expecting any sales for at least a year. The original 10 licensees could be well-positioned to be first to market in the state,” Debra Borchardt, editor-in-chief of Green Market Report, told Benzinga.

She was referencing reports about an agreement between Governor Andrew Cuomo and the New York State Legislature on a deal to legalize adult-use cannabis sales for adults over 21.

The measure could be on the floor and ready to be voted upon as early as next week.

While the text language has not been made public yet, sources suggest the agreement will include a 13% sales tax, 9% of which would go to the state and 4% to the localities. An excise tax of as much as 3 cents per milligram of THC could also be included.

Find how this would affect companies like Cresco Labs CRLBF, Ayr Wellness AYRWF, TerrAscend TRSSF, Verano Holdings VRNOF, Acreage Holdings ACRDF, Columbia Care CCHWF, Curaleaf CURLF, and Green Thumb industries GTBIF in this Benzinga article.

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

Meanwhile, in Mexico, the adult-use cannabis project recently approved by the Chamber of Deputies seems to be facing new hurdles, as there’s a lack of consensus in the Senate regarding the adjustments that the lower house made.

However, Mexican Senate board president Eduardo Ramírez is determined to generate the necessary consensus and said he feels optimistic about the document being approved before April 30. This date is key because the Congressional season ends on April 30 and, with it, the current Congressional term.

Policy Moves

In New Mexico, the Senate Judiciary Committee voted in favor of a motion to legalize cannabis. The expected Senate floor vote, however, was postponed past the Saturday noon deadline and further passing to Governor Michelle Lujan Grisham’s desk.

U.S. Presidential hopeful Andrew Yang — now one of many NYC mayor candidates — revealed during a campaign forum that he favors psilocybin and cannabis legalization.

Virginia Governor Ralph Northam approved legislation House Bill 2218 and Senate Bill 1333 to enable the manufacturing and dispensing of botanical cannabis products,

In Colorado, Governor Jared Polis approved a social equity bill. Read all about it here.

Maryland failed to meet the deadline for passing an adult-use marijuana bill, and will now have to wait at least one year to try again.

Cannabis sales in Michigan reached $105 million in February, jumping 160% from the same period in 2020.

Earnings Reports

  • Akerna Corp KERN reported revenue of $4.1 million for the quarter ended Dec. 31. This represents an increase of 24% year-over-year.
  • Trulieve Cannabis Corp. TRUL TCNNF reported generating $168.4 million in revenue in the fourth quarter, up by 24% sequentially.
  • TerrAscend Corp. TER TRSSF revealed fourth-quarter net sales of CA$65 million. That's a year-over-year increase of 152% and a 28% sequential increase. The company also confirmed that Jason Ackerman will no longer serve as its CEO and executive chairman. Jason Wild, who currently serves as board’s chairman, will replace Ackerman as executive chairman. In addition, a board member Ed Schutter will assume the position of lead independent director.
  • Power REIT (NYSE-AMEX: PW) reported its core funds from operations (Core FFO) per common share amounted to $0.51 in the fourth quarter of 2020 and $1.34 for the full year. That’s a year-over-year increase of 200% and 113%, respectively.
  • MariMed, Inc. MRMD disclosed its revenues spiked 292% year-over-year, reaching $20.4 million in the fourth quarter of 2020.
  • Willow Biosciences Inc. WLLW CANSF wrapped up 2020 with roughly $15.7 million in working capital and $15.9 million of cash.
  • GrowGeneration Corp. GRWG reported fourth-quarter revenue growth of 144% year-over-year to $62 million, and a 58% increase in same-store sales, attributable to the addition of 14 stores in 2020.
  • Charlotte's Web Holdings Inc. CWEB CWBHF posted fourth-quarter results revealing its revenue grew by 17.9% year-over-year and 7% sequentially to $26.9 million.
  • Vireo Health International, Inc. VREO VREOF reported its fourth-quarter GAAP revenue increased 38% year-over-year to $12.4 million, including its former subsidiaries in Pennsylvania.
  • The company also secured some $23.5 million in financing through a credit facility with a Green Ivy Capital affiliate.
  • Aleafia Health Inc. AH ALEAF reported a cannabis net revenue increase of 233% on a sequential basis to $14.1 million in the fourth quarter.
  • Cresco Labs Inc. CL CRLBF reported record fourth-quarter and full-year results. Fourth-quarter revenue amounted to $162.3 million, up by 6% over the previous period.

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

Financings And M&A

  • Australis Capital Inc. AUSAF completed the first stage of the transaction to acquire Nevada-based cannabis company, Green Therapeutics and its portfolio of high-end dried flower and designer/luxury derivative products. “The GT transaction very significantly enhances our value proposition and forms a foundational asset to launch our multi-state expansion from," CEO Terry Booth told Benzinga. "We believe that the combination of ALPS and GT strongly differentiates us and provides us with very defensible competitive advantages to execute on our unique model that is targeting high-margin growth.”
  • GenCanna acquired Taylor Mammon, a UK-based turnkey CBD formulator, private label accelerator and distributor.
  • Verano Holdings Corp. VRNOis purchasing Patient Alternative Relief Center Inc. in Phoenix — doing business as Local Joint — for $17 million.
  • GrowGeneration confirmed its eighth acquisition in 2021, buying wholesale agriculture platform for an undisclosed price.
  • Item 9 Labs Corp. INLB closed a deal for ONE Cannabis Group (OCG), the parent company of dispensary franchise Unity Rd.
  • High Tide Inc. HITI HITIF purchased Smoke Cartel Inc. SMKC for $8 million.
  • MAZAKALI and Satori Investment Partners formed a strategic alliance with the intention of investing up to $20 million into cannabis-related businesses.
  • Leafwire completed an investment round of $1 million.

Other News

Avicanna Inc. AVCN AVCNF has agreed to supervise the commercialization of Viola cannabis products in Canada via its manufacturing, distribution, and sales infrastructure. This makes Al Harrington’s Viola the first black-owned multinational cannabis company.

Heritage Cannabis Holdings Corp. CANN received the first license to export cannabis products from Canada to Brazil. Heritage entered into an arrangement with Brazilian-focused pharmaceutical CBD company, CannaBR Exports Corp. for distribution and sales of CBD products into the Brazilian Market. 

Clint Sharples, CEO of Heritage Cannabis, told Benzinga, “Our expansion into Brazil is coming at an opportune time as the market for pharmaceutical cannabis and hemp products is in a high growth phase. Being the first cannabis company in Canada to be granted an export license for Brazil by Health Canada means our full-spectrum, high-quality extraction products will be setting the bar in the Brazilian market.”

GKUA Ultra Premium, the cannabis brand created by hip-hop artist and entrepreneur Lil Wayne, is now available in Oklahoma, marking the brand’s fourth state.

Glass House Group announced a technology partnership with Alcott Enterprises.

TerrAscend announced that TerrAscend NJ, LLC was issued a permit to process cannabis by the New Jersey Department of Health. This will allow TerrAscend to engage in the extraction, processing and manufacturing of a wide range of branded form factors.

Uruguay-based YVY Life Sciences signed a framework agreement with Blueberries Medical Corp. BBM BBRRF for “mutual development of strains and genetics and replicating YVY’s unique cultivation model in Colombia.”

Elias Theodorou became the first athlete to compete and win in a professional North American competition while holding an exemption for the use of medical cannabis. The UFC veteran was granted a Therapeutic Use Exemption (TUE) by the British Columbia Athletic Commission in January 2020 for bilateral neuropathy, allowing him to compete against fellow UFC alumnus Matt Dwyer at the Rise Fighting Championships 6 hosted at the Songhees Wellness Centre in Victoria, BC.

His TUE covers both THC and THC-A, the carboxylated “THC precursor” found on raw cannabis. True to his belief in clean sport, Elias did not consume any form of THC for 48 hours before the fight, as per commission regulations; he continued CBD use throughout.

“No one takes away my cannabis, not anymore,” Theodorou told Benzinga.

Cannabis loyalty program CliqueMJ launched in Oklahoma and Colorado. CEO Rami Sahhar told Benzinga, “We are pleased with the speed of our expansion across the US and our ability to integrate with the leading point of sale systems so we can service dispensaries without disrupting them.”

Executive Moves

Find out all about the latest executive moves HERE and HERE.

Top Stories Of The Week

Top Spanish stories:

Javier Hasse, CEO de El Planteo, Conversa con Alejandro Bercovich: ‘Trabajar en la Industria del Cannabis no Significa Cultivar Cannabis’

Acciones de Cannabis a Bajo Costo, Según Debra Borchardt de Green Market Report

Entrevista: Bad Gyal Habla de su Nuevo EP, ‘Pussy’, Trabajar con El Guincho y Fumar Weed

Argentina: Neuquén Debate el Autocultivo de Cannabis y Busca Promover un Proyecto Doméstico

Argentina: Convenio Financia Investigación sobre Cannabis en Entre Ríos

Acru Habla de Todo: Nueva Banda, Disco en Proceso, Mirada de la Escena y su Futuro en el Freestyle

¿Qué Psicodélicos Ayudan a la Salud Mental?

Acciones de Cannabis a Bajo Costo, Según CEO de SOMAÍ Pharmaceuticals, Mike Sassano

Mapa de Cannabis en Buenos Aires: en qué Consisten los Distintos Tipos de Ordenanzas

Con un Pie en Argentina y otro en Estados Unidos, Lula Miranda Oficializa su Salto al Reggaetón

Lead image by Ilona Szentivanyi. Copyright: Benzinga.


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