Last weekend, we were out getting some rest after the third edition of the Benzinga Cannabis Capital Conference in Toronto. This week’s recap will include some big news items from last week as well.
On April 18, Canopy Growth Corp (NYSE: CGC) announced it would acquire Acreage Holdings (OTC: ACRZF) for an upfront payment $300 million with the value of the deal potentially worth up to $3.4 billion. Matt Karnes, founder and managing partner of GreenWave Advisors, told Benzinga, “This deal positions Canopy Growth as a leader in the U.S. market while providing Average with near term liquidity and other strategic opportunities.
“It is not surprising that, within expectations of a coming end of U.S. prohibition, a Canadian LP/U.S. MSO combination would occur. We further believe that the timing and structure of this deal could facilitate similar moves by other Canadian entities as well as further consolidations among U.S. MSOs that could possibly then look towards Canadian acquisitions.â€
News was largely dominated by discussions around this deal, with GMP Securities upgrading Canopy Growth. Also, Bank of America initiated coverage on cannabis stocks with a bullish stance and a surprising top pick.
Related Link: Harvest Health CEO Steve White Talks Cannabis Consolidation, Says Canopy-Acreage Tie-Up 'Fantastic'
In other news, Harvest Health & Recreation Inc (OTC: HRVSF) reported fourth-quarter and fiscal year 2018 financial results. Revenue more than doubled as the multi-state operator continued to expand its retail and wholesale footprints across the country.
Greenlane Holdings, Inc. (NASDAQ: GNLN) completed its first week trading on the Nasdaq as the first U.S. cannabis company in the exchange, and several key executives at MedMen Enterprises Inc. (OTC: MMNFF) left the company.
Marijuana Stocks & ETFs
Over the last five trading days, the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE:HMMJ) gained 4.2 percent, same as the ETFMG Alternative Harvest ETF (NYSE: MJ). The new AdvisorShares Pure Cannabis ETF (NYSE: YOLO) surged 3 percent.
The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 1.2 percent.
Here are some of the top marijuana stocks (market cap above $400 million) in U.S. exchanges and how the performed over the last five trading days:
• Acreage Holdings (OTC: ACRZF): down 1.8 percent
• Aphria Inc (NYSE: APHA): down 0.6 percent
• Aurora Cannabis Inc (NYSE: ACB): up 0.6 percent
• CannTrust Holdings Inc (NYSE: CTST): up 2.7 percent
• Canopy Growth Corp (NYSE: CGC): up 12 percent
• Cronos Group Inc. (NASDAQ: CRON): up 9 percent
• Curaleaf Holdings Inc (OTC: CURLF): down 1.6 percent
• Green Growth Brands Inc (OTC: GGBXF): up 2 percent
• Green Organic Dutchman Holdings Ltd (OTC: TGODF): up 6.4 percent
• Green Thumb Industries Inc (OTC: GTBIF): down 2.4 percent
• GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): up 7.4 percent
• Hexo Corp (NYSE: HEXO): up 15.5 percent
• Harvest Health & Recreation Inc (OTC: HRVSF): up 1.9 percent
• iAnthus Capital Holdings Inc (OTC: ITHUF): down 2 percent
• Marimed Inc (OTC: MRMD): down 5.8 percent
• MedMen Enterprises Inc. (OTC: MMNFF): down 7.6 percent
• OrganiGram Holdings Inc (OTC: OGRMF): down 0.5 percent
• Scotts Miracle-Gro Co (NYSE: SMG): up 0.4 percent
• Tilray Inc (NASDAQ: TLRY): up 8.5 percent
In Other News
Benzinga got the scoop on cannabis multi-state operator Tikun Olam inking an exclusive state partnership with Florida cannabis provider VidaCann.
Another scoop revolved around New Leaf Data Services, an independent cannabis and hemp price reporting agency and parent to Cannabis Benchmarks, launching a new division. Hemp Benchmarks will collect, analyze and report on the wholesale price for hemp-derived biomass, dry flower, clones, seeds, crude hemp oil, refined hemp oil and CBD isolates.
Check out the first pricing index table here:
We also broke the news about Canopy Rivers Inc. (OTC: CNPOF), the investment arm of Canadian cannabis producer Canopy Growth completing an investment in High Beauty, the company behind cannabis beauty brand high.
Colorado's Folium Biosciences launched a gluten-free gummy line.
“Some gummy brands use isolate in their formulation, along with synthetic preservatives and chemicals. Not only did our scientists formulate an all natural solution that delivered on flavor profile and consistency, we also developed a commercially scalable solution to accommodate major retailers we’re already in conversations with,†said Folium Biosciences CEO Kashif Shan.
Follow Benzinga Cannabis (@BZCannabis) on Twitter for up-to-date news and stories on cannabis, hemp and CBD.
Green Growth Brands debut cannabis brand, CAMP. The first product from the brand, Happy Camper solventless rosin cartridges, were innovated by GGB’s team of production and merchant teams. Additional CAMP products and dispensaries will be introduced in Nevada and beyond.
22Red, the cannabis lifestyle brand founded by System Of A Down bassist Shavo Odadjian, introduced its disposable hemp-derived CBD vape pens.
Cannabis portal Herb.co re-launched its website to close the loop between cannabis consumers and cannabis producers by providing fast, simple and reliable recommendations. Herb will leverage data to allow consumers to make better decisions. Herb wants all cannabis experiences to be predictable, safe and fun.
Stratos launched a line of CBD tinctures.
“After doing market research, we saw that a lot of tinctures weren’t mixed well, which impacts dosing,†said Kate Heckman, VP of Marketing at Stratos. “Our tinctures are a great option for those new to CBD and can get to work in the body within minutes and last for up to five hours. People can trust that Stratos products are safe, high-quality, consistent and true to the dosing details on the label.â€
Arcanum Sports Performance announced the release of Sarco Skin, the first-ever kinesiology tape infused with a full-spectrum hemp extract with 5mg of hemp-derived CBD per strip.
“After listening to our customers and their needs and injury issues, we saw a huge need for a kinesiology tape infused with CBD,†said Tyler Mintz, COO of Arcanum. “Our Sarco Skin product is the first-of-its-kind and will provide relief for athletes and anyone dealing with aches and pains during any level of activity. Sarco Skin takes the proven benefits of traditional kinesiology tape to a whole new level.â€
Mattio Communications, a cannabis marketing company, completed its seed round of funding, which included Phyto Partners; Alan Patricof, founder of Greycoft; and Green Seed Fund.
TILT Holdings Inc. (OTC: SVVTF) announced that Jupiter Research, LLC has further expanded distribution of its proprietary ceramic CCELL technologies in California through its integration with TILT’s software and supply chain services.
“We are excited for Tilt Holdings' newest expansion of Jupiter Research that will help widen their geographic footprint and bring more businesses and consumers access to CCELL technology,†a spokesperson for CCELL told Benzinga.