Another busy week in cannabis saw the stock market post generalized losses, as Amazon.com Inc. (NASDAQ: AMZN) came out in support of the federal legalization of marijuana, announcing it will drop marijuana testing requirements for some of its workers.
Dave Clark, CEO of Amazon’s worldwide consumer division, said in a blog post that the e-commerce giant will actively support the Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act), which would decriminalize marijuana at the federal level. The bill was reintroduced in Congress last Friday.
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) reported its fourth quarter and fiscal year 2021 earnings with a net loss for the year amounting to CA$1.7 billion ($1.41 billion), representing a CA$283 million wider loss versus FY 2020.
The Canadian cannabis giant attributed these results to various expenses, credit losses, lower income tax recoveries, advancements of gross margins and sales reductions.
Cantor Fitzgerald’s analyst Pablo Zuanic kept a ‘Neutral’ rating on Canopy’s stock, lowering their price target to CA$30.50 from C$32.
Canopy’s quarterly business-to-business sales were stable, and therefore better than its competition and previously provided outlook, explained Zuanic in a Tuesday note.
According to the analyst, good business-to-business sales in the quarter should reveal significantly advanced March shipments, with many other cannabis companies reporting double-digit drops in adult-use shipments for the same period. “So, in that context, these are good numbers.”
Later in the week, Canopy dropped its deal with Canadian rapper Drake. Their partnership was structured around an agreement where Drake would hold a 60% stake in a cannabis brand named More Life Growth Company, while Canopy would control the remaining 40%.
Commenting on the news, Green Market Report’s Debra Borchardt told Benzinga, “Canopy Growth continues to log massive net losses which tend to overshadow the company's revenues. Despite reporting over half a billion in revenues this week, the company's continuing efforts to rightsize and clean up old deals have left a mark. Dropping Drake from the lineup this week wasn't too shocking, but it would be great if Canopy could have a week where it wasn't forced to deliver another negative news headline."
Benzinga Cannabis’ content is now available in Spanish on El Planteo.
Meanwhile, on Thursday and Friday, Benzinga hosted a new edition of the Benzinga Cannabis Capital Conference, featuring most of the top names in the industry. Speakers discussed a wide array of topics, from building a $1 billion cannabis supplies company and the road to federal legalization to the CBD beverage market, growing cannabis in hotter climates and multi-billion dollar M&A deals.
And Hempz, a hemp seed oil-based skin and body care brand, named HBO's Pretty Little Liars star Ashley Benson as its new celebrity ambassador.
EFTs were all down. Over the four trading days of this week:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 3%.
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): tumbled 1.1%.
- The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): dropped 2.2%.
- The Cannabis ETF (NYSE: THCX): was down 2.7%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS): lost 1.6%.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the week almost flat at $422.60.
Policy, Science And Data
The Latin American country of Argentina may soon have a regulated cannabis and hemp industry. On Wednesday, Argentina’s Minister of Productive Development, Matías Kulfas, presented a bill titled, "Regulatory framework for the development of the medical cannabis and hemp industry," within the …