The Week In Cannabis: Earnings, Financings, M&A, Cookies U, DEA, DJ Khaled, And More

In an earnings-heavy week, cannabis stocks experienced considerable volatility. On average, stocks surged on Monday and Tuesday, dropped sharply on Wednesday and were somewhat back in the green during the last two days of the period, aided by tobacco giant Altria Group Inc (NYSE: MO) coming out in support of legalization in the U.S. and news about a new marijuana legalization bill potentially being introduced into Congress as early as next week.

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

Meanwhile, in , Governor Kay Ivey signed off on the state's medical cannabis bill, SB 46, making it the 36th state to legalize medical cannabis.

Patients can qualify through several approved conditions, including but not limited to Tourette's syndrome, Parkinson's disease, cancer, Crohn's disease, HIV/AIDS, and epilepsy.

Operators have various opportunities to obtain licensing under the current rules. Alabama's Medical Cannabis Commission plans to issue licenses for:

  • Up to 12 cultivation licenses
  • Up to four processors
  • Up to four dispensaries

Berner’s brand Cookies is launching a new CBD flower line.

In addition, the company teamed up with former NBA star Chris Webber and cannabis investor Jason Wild to kick off a training program that aims to help communities impacted by the War on Drugs. The , dubbed Cookies U, will provide resources and create opportunities for students in marginalized communities.

Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) is seeking to raise $300 million by selling its commons shares through the at-the-market offering.

Grammy Award-winning artist and media personality Khaled Mohamed Khaled — better known DJ Khaled — launched a new CBD-infused “men’s grooming line,” BLESSWELL, in partnership with Endexx Corporation (OTC: EDXC).

ETFs posted mostly positive performances. Over the five trading days of this week:

  • The ETFMG Alternative Harvest ETF (NYSE: MJ): gained 2.3%.
  • The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was flat.
  • The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): shed 2.2% of its value.
  • The Cannabis ETF (NYSE: THCX): rose 3.1%.
  • The Amplify Seymour Cannabis ETF (NYSE: CNBS): was up 1.1%.
  • The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the week down 0.26%.

Policy, Science And Data

The Drug Enforcement Administration (DEA) announced on Friday, May 14, that it will begin approving applications that will allow some cannabis growers to become federally authorized to manufacture the plant for research purposes.

Up until now, one cultivator – a farm functioning as part of the University of – was the only legal source of cannabis for federal research. The university had obtained the license back in 1968, which made it the only source for research cannabis in the United States for over 50 years.

The Mississippi Supreme Court on Friday overturned (on a technicality) the state's voter-approved medical cannabis initiative in a six to three vote.

Colorado Gov. Jared Polis signed a bill doubling the marijuana possession limit for adults 21 and older to up to two ounces.

In addition to increasing the cannabis possession limit, House Bill 1090, which was cleared in a Senate vote in late April, seeks to identify people with prior convictions for up to 2 ounces of pot possession and clear their records.

Financings And M&A

Innovative Industrial Properties, Inc. (NYSE: IIPR) will raise up to $200 million through a private placement of its senior notes.

The company also finalized the purchase of a Warren, Michigan-based property for around $10.3 million. The acquired property spreads across 85,000 sq. ft. of industrial space.

TPCO Holding Corp. (OTCQX: GRAMF), which does business as "The Parent Company," opted to invest some $50 million in GH Group, Inc. (Glass House Group) via a private placement …

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