This week, cannabis news was dominated by two big acquisitions. The largest was announced by U.S. vertically integrated multistate cannabis operator Curaleaf Holdings, Inc. (OTC: CURLF), which said it would buy Cura Partners, owners of the Select cannabis brand, for approximately $950 million in stock.
The other big transaction was announced by Canopy Growth Corp (NYSE: CGC), which acquired the German C3 Cannabinoid Compound Company, which manufactures synthetic cannabinoids, for roughly $254 million in cash — an unusual development in the cannabis industry .
"The Curaleaf deal unlocks the west coast for this east coast company," Green Market Report CEO Debra Borchardt told Benzinga. "While it may seem to be a lot of money for the Select brand, the entry into the market is the key thing."
The deal means that Canopy Growth is essentially buying the European version of Marinol, she said.
"What they are getting is a quick foot in the door to the German market. That's what I think these two deals are really about — opening a market door.â€
In other big news, Canadian cannabis producer OrganiGram Holdings Inc (OTC: OGRMF) applied to trade on the NASDAQ exchange. Read the full story here.
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Marijuana Stocks & ETFs
Over the last five trading days:
• The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE:HMMJ) lost 0.65 percent.
• The ETFMG Alternative Harvest ETF (NYSE: MJ) gained 0.34 percent.
• The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) lost 2.18 percent.
• The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 0.21 percent.
Top marijuana stocks (with a market cap above $500 million) trading on U.S. exchanges performed as follows over the last five trading days:
• Acreage Holdings (OTC: ACRZF): down 0.45 percent
• Aphria Inc (NYSE: APHA): down 8.1 percent
• Aurora Cannabis Inc (NYSE: ACB): down 2.8 percent
• CannTrust Holdings Inc (NYSE: CTST): down 17.1 percent
• Canopy Growth Corp (NYSE: CGC): down 1.7 percent
• Cronos Group Inc. (NASDAQ: CRON): down 3.4 percent
• Curaleaf Holdings Inc (OTC: CURLF): up 4.8 percent
• Green Growth Brands Inc (OTC: GGBXF): up 15.2 percent
• Green Organic Dutchman Holdings Ltd (OTC: TGODF): up 3.5 percent
• Green Thumb Industries Inc (OTC: GTBIF): down 9.5 percent
• GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): up 4.9 percent
• Hexo Corp (NYSE: HEXO): down 1 percent
• Harvest Health & Recreation Inc (OTC: HRVSF): down 11.9 percent
• iAnthus Capital Holdings Inc (OTC: ITHUF): down 2.9 percent
• Marimed Inc (OTC: MRMD): down 6.9 percent
• MedMen Enterprises Inc. (OTC: MMNFF): down 4 percent
• OrganiGram Holdings Inc (OTC: OGRMF): up 11.3 percent
• Scotts Miracle-Gro Co (NYSE: SMG): up 11.45 percent
• Tilray Inc (NASDAQ: TLRY): down 5.5 percent
In Other News
Publicly traded Origin House (OTC: ORHOF) reported fourth-quarter revenue of $7.9 million, up 19 percent quarter-over-year and up 638 percent year-over-year. The company credits increased product sales and distribution revenues for the record-breaking quarter.
In 2018 Origin House acquired Kaya Manufacturing, Alta Supply, FloraCal Farms, RVR Distribution and 180 Smoke. The combined entities represent six licenses, eight facilities and over 350 employees in California and Canada with pro-forma revenue of $37.4 million.
Pro-forma revenue reached $48.7 million with the acquisition of 180 Smoke in the first quarter. Origin House also integrated two of the largest and most important distributors in California — RVR Distribution and Alta Supply — now operating under the Continuum banner with more than 50 brand relationships including King’s Garden, Henry’s Original, Utopia Cannabis, Pacific Remedy, Kurvana, Humboldt’s Finest, Viola Brands and Papa’s Herb in more than 500 dispensaries in California.
Origin House exited the year with a cash position of $69.2 million as of Dec. 31, 2018.
The BIG3 basketball league announced an exclusive agreement with cbdMD, a Level Brands (OTC: LEVB) company, to become the official CBD partner of the league when its third season begins in June. Read the full story here.
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Indose, a new precise-dosage metered vaporizer, announced a $3.5-million Series A led by Casa Verde Capital. The Snoop-backed VC firm told Benzinga it is betting on Indose for two reasons: the vape market is the fastest-growing segment in cannabis; and responsible, controlled dosage is the next frontier.
Indose aims to bring bring medical-grade technology to market with a discreet vaporizer that allows microdosing with hyper-precision in real time at an affordable price.
With this innovation, Indose is addressing a problematic gap in the vaporizer market: the inability to know exactly how much cannabis you’re consuming with each inhale.
This microdosing experience is available with edibles such as a 3MG mint, and Indose is the first vape to deliver that same precise, customized dosing solution. It is available in select California dispensaries and will announce a prominent distribution partner in the coming weeks.
“Transparency around the amount of THC consumed by the user in cannabis products is as fundamental as knowing the proof levels of alcoholic beverages and the nutrition ingredients of the food you eat. The consumer should always be in control of their desired experience,†Benzi Ronen, CEO and co-founder of Indose, told Benzinga.
High Park Holdings, a wholly owned subsidiary of Tilray, announced it received an amendment to its standard processing license under the Canadian Cannabis Act. Under the amended license, High Park said it is permitted to sell its cannabis products from its state-of-the-art London, Ontario facility to authorized retailers in Canada. Read the full story here.
According to the monthly AndCan Index, demand for legal cannabis in the U.S. rose by 1.3 percent in February.
Willie and Annie Nelson’s hemp wellness brand, Willie’s Remedy, announced new products and expanded retail availability. A new addition to the brand’s flagship product, Willie’s Remedy Whole Bean Coffee, is an extra-strength version of the hemp-infused coffee. The brand is also releasing Willie’s Remedy Hemp Oil Tincture, a full-spectrum, extract-infused MCT oil that is made with Colorado-grown organic hemp flower.
“There are no added chemicals or preservatives —it’s just pure, plant-enriched wellness,†Annie said. “We’re excited to launch new products and provide people with the benefits of hemp with the tincture and two types of hemp-infused whole bean coffee.â€
Canopy Growth has secured a facility in Kirkwood, New York to build an extraction and manufacturing facility for hemp-derived cannabinoids. Read the full story here.
DNA Genetics partnered with Good Meds to provide Colorado cannabis consumers access to DNA and their library of proprietary genetics, flower and concentrates. As part of the agreement, DNA will verify and certify its award-winning genetics while working in tandem with Good Meds’ experienced team to ensure an array of quality products including dried flower, prerolls, vape carts, sauce, rosin and full melt water hash.
CBD product manufacturer Charlotte's Web Holdings Inc (OTC: CWBHF) appointed Adrienne Elsner as CEO. Elsner is the former president of the U.S. snacks division at Kellogg Company (NYSE: K). Read the full story here.
Mohnia Patel launched Shanti Wellness, a hemp-derived CBD ingestible beauty line. Using all plant-sourced ingredients, Shanti Wellness products include a tincture, body balm and soft gels. Shanti Wellness takes a holistic approach to alleviating symptoms of anxiety and depression using Ayurvedic herbs in addition to hemp-derived CBD. Shanti products are available online and at California retailers.