The Week In Cannabis: The New Tilray, Jazz-GW Pharma, Earnings, M&A, And More

This was an eventful week for the cannabis industry.

On Monday, Tilray, Inc. (NASDAQ: TLRY) and Aphria, Inc. (NASDAQ: APHA) closed their merger after months of negotiations, creating a company with a combined market cap of $3.3 billion. Benzinga spoke with Irwin Simon, CEO of the new combined company.

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Following the merger, Jefferies upgraded the rating for Tilray from Underperform to Buy, while raising the price target from $4.77 to $23.

Jazz Pharmaceuticals (NASDAQ: JAZZ) finalized its acquisition of GW Pharmaceuticals plc. (NASDAQ: GWPH), the producer of the FDA‑approved prescription cannabidiol drug Epidiolex, for $7.2 billion or $6.7 billion net of GW Pharma's cash.

Meanwhile, Ascend Wellness Holdings (CSE: AAWH) started trading on the Canadian Securities exchange following a raise of approximately $80 million through an initial public offering of roughly 10 million shares of its Class A common stock at $8 per share.

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

After two weeks of consolidating below resistance at the $1 level, shares of Reddit favorite Sundial Growers Inc. (NASDAQ: SNDL) have resumed their downtrend.

Credit Suisse Group AG (NYSE: CS) reportedly stopped handling transactions in shares of cannabis companies with U.S. operations and plans to refrain from holding cannabis stocks on behalf of its clients.

The Swiss-based lender, which declined to give a statement, was among a handful of banks willing to buy and sell marijuana-related stocks and hold the shares as a custodian for clients in the United States. While it's not yet clear what impact this decision will have, Reuters reported the move has affected the sale of marijuana stocks in recent weeks.

In fact, all major ETFs were down. Over the five trading days of this week:

  • The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 0.2%.
  • The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): tumbled 1.8%.
  • The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): shed 0.2% of its value.
  • The Cannabis ETF (NYSE: THCX): dropped 3.4%.
  • The Amplify Seymour Cannabis ETF (NYSE: CNBS): was down 3.5%.
  • The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the week up 1.21%.

Policy, Science And Data

In New York, people gathered to celebrate cannabis legalization.

“Last weekend's annual New York City cannabis parade brought out a who's who in politicians jockeying for position to be the one who was always supportive of legalizing cannabis. Ah-hem. Water under the bridge shall we say,” commented Debra Borchardt, CEO of Green Market Report. “With adult use cannabis sales likely to be legal by next year's parade, the people who attended were clearly in a celebratory mood. The New York market is expected to be the largest in the country and there were many small businesses working the crowd. There should be a Tinder app for social applicants to hook up with investors as there was a lot of talk about social equity applicants, but most have no money or very little.”

In Colorado Gov. Jared Polis signed a bill that would expand access to for school children in need by removing obstacles to its administration.

Financings And M&A

Jushi Holdings Inc. (CSE: JUSH) (OTC: JUSHF) finalized its purchase of a 93,000 sq. ft. facility operated by its subsidiary, Dalitso LLC, for around $22 million. The deal also includes nearly nine acres of surrounding land in Prince William County, .

High Tide Inc. (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY) will acquire 80% of Fab Nutrition, LLC. (operating as FABCBD) for $20.64 million in stock and cash.

MassRoots, Inc. (OTC: MSRT) is looking to acquire Empire Services, Inc. for $14 million in a primarily stock-based transaction.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) purchased West Virginia-based Mountaineer Holding LLC for $6 million.

Cansortium Inc. (CSE: TIUM), (OTCQB: CNTMF), doing business under the Fluent brand, exercised its right to regain up to the maximum of $5 million of convertible promissory notes, originally issued in the amount of $10 million in 2019.

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) will reach the Virginia market via its acquisition of Dharma Pharmaceuticals LLC.

Earnings Reports

Kiaro Holdings Corp. (TSXV: KO) reported record revenues of CA$17.1 million in 2021, representing a year-over-year increase of 230%. …

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