In a four-day week where markets were on the rise, cannabis stocks proved to be big winners. Late Friday, stocks surged on news that a federal marijuana legalization bill will get a congressional vote next week.
During the holiday week:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): gained 12%
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was up 15%
- The Cannabis ETF (NYSE: THCX): advanced 14.5%
- The Amplify Seymour Cannabis ETF (NYSE: CNBS): rose 14%
- The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 1.5%.
In other news, music industry mogul Jay-Z announced he is set to join a newly formed cannabis company that's expected to become the largest in California.
The venture was formed via a partnership between Caliva, Left Coast Ventures, Subversive Capital Acquisition Corp. (OTCQX: SBVCF) and Roc Nation, the entertainment company Jay-Z launched in 2008.
Jay-Z will take on the title of "Chief Visionary Officer." The transaction is slated to close in January 2021 with Steve Allan as CEO.
In his role, Sean Carter (Jay-Z) is expected to help oversee a corporate venture fund focused on social equity measures. The fund will aim at an initial funding target of $10 million and commit to contributing at least 2% of its net income to invest in minority-owned cannabis businesses and donate to organizations seeking to rectify the wrongs of prohibition.
Meanwhile, Detroit approved an ordinance that green-lights the licensing process for adult-use marijuana businesses. The Detroit City Council voted unanimously to begin granting licenses to adult-use retailer establishments, growers, processors, safety compliance facilities, temporary marihuana events, microbusinesses, consumption lounges and transporters.
The ordinance includes measures to benefit “Legacy Detroiters” and people with prior marijuana convictions. Via a social equity program included in the ordinance, 50% of all licenses will be granted to Detroit Legacy applicants.
Cansortium Inc. (CSE: TIUM) (OTCQB: CNTMF) reported revenue of $14.3 million for the third quarter of this fiscal year. That’s a year-over-year increase of 94%.
Jushi Holdings Inc. (CSE: JUSH) (OTCQB: JUSHF) said its third-quarter revenue totaled $24.9 million, up by 67% over the quarter. The revenue increase could be attributed to the revenue growth at its BEYOND/HELLO stores in Illinois and Pennsylvania, as well as Nevada operations.
Moreover, the revenue increased by approximately 45% on a same-store basis compared to the previous quarter, excluding the two Philadelphia-based stores temporarily closed since June due to George Floyd-related protests.
Earlier in the week, the company announced it will almost double the amount of square footage of its subsidiary’s grower-processor facility in Scranton, Pennsylvania. The expansion is expected to create more than 100 new jobs in the area.
Vireo Health International Inc. (CSE: VREO) (OTCQX: VREOF) revealed third-quarter revenue of $13.4 million. That's up by 68% year-over-year. The physician-led cannabis company generated revenue in seven states during the third quarter: New Mexico, Minnesota, Ohio, New York, Maryland, Pennsylvania and Arizona.
Its quarterly adjusted EBITDA was a loss of $675,808, which stands against a loss of $5.2 million in the same quarter of the prior year.
Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) saw a 219% spike in net revenue (CA$3.2 million) for the third quarter compared to the previous three-month period. This was due to greater …