The week brought big cannabis news, with the FDA setting its first hearing regarding CBD's legality in food and drinks for May, and the STATES Act, which aims to protect cannabis businesses and users in legal states from federal intervention, being introduced in Congress.
“Allowing states to determine their own cannabis laws without the threat of federal interference is a key component to sensible federal cannabis policy and would give more states the confidence to move forward with legalization and start addressing the harms caused by prohibition, particularly to marginalized communities," said National Cannabis Industry Association spokesman, Morgan Fox, commenting on the legislation.
As for the FDA’s hearing on CBD, Tim Moxey, founder of edibles brand botanicaGLOBAL, said: “We think this is a huge step forward for consumers that are clearly very excited about having CBD included in everything from topicals to infused foods and beverages."
A surge of businesses are coming out with CBD products, and FDA guidelines and rules would enable the industry to "seriously commit" to producing the hemp-derived products that are already being sold in legal states, Moxey said.
Lou Leon Guerrero, governor of the U.S. island territory Guam, signed a bill to legalize recreational cannabis.
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On the markets realm, the big news of the week was Cresco Labs (OTC: CRLBF)’s acquisition of Origin House (OTC: ORHOF) for about $825 million. Debra Borchardt, CEO of Green Market Report, told Benzinga the acquisition is a continuation of the cannabis industry's consolidation trend.
“Many of these combined companies feel they can be stronger competitors if they are bigger players. It feels as if all the multistate operators are preparing themselves for the day that state lines drop with regards to the cannabis industry. Cresco Labs has a great reputation in the industry, so I'm sure Origin House is happy to team up with them,†she said.
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Marijuana Stocks & ETFs
Over the last five trading days, the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE: HMMJ) gained almost 1 percent, while the ETFMG Alternative Harvest ETF (NYSE: MJ) tumbled 0.2 percent. The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up almost 2.2 percent.
Top marijuana stocks with market caps above $400 million that trade on U.S. exchanges performed as follows over the last five trading days:
• Acreage Holdings (OTC: ACRZF): up 4.1 percent
• Aphria Inc (NYSE: APHA): up 8.15 percent
• Aurora Cannabis Inc (NYSE: ACB): up 1.2 percent
• CannTrust Holdings Inc (NYSE: CTST): down 1.8 percent
• Canopy Growth Corp (NYSE: CGC): down 0.3 percent
• Cronos Group Inc. (NASDAQ: CRON): down 0.2 percent
• Curaleaf Holdings Inc (OTC: CURLF): up 8.3 percent
• Green Growth Brands Inc (OTC: GGBXF): down 2.5 percent
• Green Organic Dutchman Holdings Ltd (OTC: TGODF): down 9.6 percent
• Green Thumb Industries Inc (OTC: GTBIF): up 6.3 percent
• GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): down 1.95 percent
• Hexo Corp (NYSE: HEXO): down 3 percent
• Harvest Health & Recreation Inc (OTC: HRVSF): up 2.35 percent
• iAnthus Capital Holdings Inc (OTC: ITHUF): down 1.4 percent
• Marimed Inc (OTC: MRMD): down 16 percent
• MedMen Enterprises Inc. (OTC: MMNFF): down 1.6 percent
• OrganiGram Holdings Inc (OTC: OGRMF): up 7 percent
• Scotts Miracle-Gro Co (NYSE: SMG): up 3.9 percent
• Tilray Inc (NASDAQ: TLRY): down 9.1 percent
In Other News
Helix TCS, Inc. (OTC: HLIX), a provider of critical infrastructure services to the legal cannabis industry, announced the acquisition of California-based security provider Tan’s International Security. Helix said the acquisition enables it to further expand its security services, including Spanish- and Chinese-speaking physical security guards, in the state of California.
“Employing primarily veterans and ex-law enforcement, our security team brings unmatched operational excellence for compliant security services, which is demonstrated by our dominant market share in Colorado that was achieved in just under three years years,†said Helix CEO and Executive Chairman Zachary Venegas.
“As California’s legal cannabis industry progresses, we look forward to leveraging our proven track record and operational processes to achieve similar market dominance in the emerging market.â€
Harvest Health & Recreation Inc. (OTC: HRVSF) announced a new round of $500 million in debt financing. The proceeds will be used to fuel the company's nationwide growth.
“This transaction is fuel for growth to realize our vision of becoming one of the most valuable cannabis companies in the world," Harvest CEO Steve White said in a press release.
"With the recent announcement of our acquisition of Verano Holdings, not only will we have the largest and deepest footprint of licenses in the U.S., we are equally well-capitalized to ensure our growth ambitions as a company.â€
Aphria, Aurora Cannabis and the Wayland Group were the three winners of the public tender to cultivate and distribute medical marijuana in Germany. Read the full story here.
Haleigh’s Hope, a whole-plant hemp extract, received USDA organic certification for “handling†last week. The crop from which the extract comes had already been certified organic; with this new certification, Haleigh’s Hope became the first hemp-derived CBD product receive a vertically integrated USDA Certified Organic product label.
“By controlling all aspects of production ourselves, we can assure the highest quality possible for our product,†said Jason Cranford, founder of Haleigh’s Hope.
Vireo Health International (OTC: VREOF) a science-focused multistate cannabis operator, is expanding into Massachusetts through the acquisition of Mayflower Botanicals, one of the state’s registered marijuana dispensaries.
Vireo operates in nine states, but Massachusetts will be the company’s first foray into an adult-use recreational marijuana market.
Vireo’s CEO and Founder Kyle Kingsley, M.D., told Benzinga he started the company with the experience of being an emergency room physician who was tired of watching patients die of opioid overdoses.
"Medical cannabis is not only a good alternative for pain medications, but it can also help save lives by becoming an alternative for the recreational use of alcohol and tobacco, which are more addictive and create greater health concerns.â€
High Times Holding Corp. — owner of the iconic High Times Magazine, Cannabis Cup Festivals, Dope Magazine, Culture Magazine, Green Rush Daily, The Big Show and Spannabis — is undergoing a management reshuffle as it comes closer to closing its Reg A+, pre-IPO capital raise.
Ahead of an IPO projected for later this year, the holding company announced it has named media veteran Kraig Fox as its new president and chief executive officer. The previous CEO, Adam Levin, will transition to an executive chairman position.
Ahead of its proposed public debut, High Times is undergoing a larger corporate restructuring aimed at stepping up its content and products. Recent changes include the naming of Jon Cappetta as VP of content, Christina Heintzelman as the new publisher of Dope Magazine and Mark Kazinec as the new events director.
Veritas Farms (OTC: VFRM), a vertically integrated hemp company, launched enhanced consumer-friendly packaging that include batch-unique QR codes linking to verifiable certificates of analysis from an approved scientific testing laboratory.
“Our full-spectrum hemp oil extract products serve a broad range of consumers in the United States and internationally. As we continue the planned Veritas Farms expansion from e-commerce only into several major new distribution channels and brick-and-mortar retailers, we have taken the opportunity to enhance our labels and packaging with more information for consumers to better understand our products right at the point of sale," Alexander Salgado, CEO and co-founder of Veritas Farms, told Benzinga.
Ancillary services cannabis industry company TILT Holdings Inc. (OTC: SVVTF) announced the expansion of its Blackbird delivery and supply chain services in the greater Los Angeles area. The expansion will “include on-demand cannabis delivery, positioning Blackbird to become one of the largest direct-to-consumer distributors in the cannabis industry, which complements its significant wholesale presence,†according to the company.
Défoncé, the creator of artisanal cannabis-infused chocolates, announced the launch of new products, including low-dose bites and single-serving squares.