Despite some good news out of specific companies, this was not a great week for cannabis stocks overall.
Over the five trading days of the week:
- ETFMG Alternative Harvest ETF (NYSE: MJ): had lost 4.5%.
- AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was mostly flat.
- Cannabis ETF (NYSE: THCX): had dropped 2.9%.
- Amplify Seymour Cannabis ETF (NYSE: CNBS): had declined 2.7%.
- SPDR S&P 500 ETF Trust (NYSE: SPY) was down 0.2%.
The big news this week came out of U.S. Congress. A measure included in a package of amendments to the National Defense Authorization Act (NDAA) stipulated that the Secretary of Defense may not prohibit “the possession, use, or consumption” of hemp or hemp-derived product (including CBD) to a “member of the Armed Forces” as long as the crop meets federal standards.
Meanwhile, the U.S. Food and Drug Administration issued a nine-page document to lead and encourage cannabis research. The document expands on the FDA’s position regarding clinical research linked to the development of new drugs containing cannabis or cannabis derivatives. This includes extracts, botanical raw materials, and highly purified substances. It does not address the development of synthetic substitutes know as cannabis-related compounds.
In the corporate world, the news was dominated by Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF), which secured an additional CA$6. 8 million (US$5 million) in financing through the second tranche of its private placement offering announced earlier this month. The total value of the placement surged to CA$34.06 million.
Also this week, the company closed its acquisition of Grassroots, naming its founder and CEO Mitchell Kahn to Curaleaf’s board of directors.
“With so many acquisitions getting terminated it was refreshing to see Curaleaf close its deal with Grassroots. They are quickly rising to the top of the charts for cannabis company revenue,” Debra Borchardt, Editor-In-Chief of Green Market Report, told Benzinga.
LeafLink announced that its supply chain financing solution, LeafLink Financial, received a $250 million senior secured credit facility from a private commercial lender.
This investment is one of the largest debt financing deals ever completed in cannabis.
Benzinga Cannabis’ content is now available in Spanish on El Planteo.
Bio-pharma company MGC Pharmaceuticals (ASX: MXC) (OTCPK: MGCLF) entered the Australian market through the acquisition of Medicinal Cannabis Clinic (MCC) for $1.4 million.
Cannabis REIT Innovative Industrial Properties Inc. (NYSE: IIPR) acquired two properties in New Jersey, just a week after it purchased a property in Blue Anchor for $5.5 million. The San Diego company entered into long-term triple-net leases with Columbia Care Inc.’s (CSE: CCHW) (OTCQX: CCHWF) subsidiaries for both properties, which will be sold at $12.4 million.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) posted its third-quarter results for fiscal 2020, including a year-over-year revenue drop of around 27% to $18 million.
Earlier this month, the company laid off 220 employees.
Driven Deliveries Inc.(OTCQB: DRVD) said its revenue increased by 158% sequentially, reaching $5.6 million in the second quarter of 2020.
Namaste Technologies Inc. (TSXV: N)(OTCQB: NXTTF) disclosed that the net segment revenue for CannMart, its wholly owned subsidiary, spiked around 1500% year-over-year to CA$2.4 million (US$1.8 million). Compared to the previous quarter, CannMart’s revenue increased by 82%, the …