CGC made two new product announcements on Tuesday
Welcome back to our weekly series, Schaeffer’s Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks and look ahead to how the cannabis industry continues to shape up in 2021.
Investor interest in the cannabis industry is growing at an explosive rate, and the leading players continue to break through legal barrier after legal barrier, especially in the United States. More than 40 U.S. states legalized recreational and/or medical marijuana by the end of 2020. Now, companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.
Here is a quick roundup of major (and action-worthy!) cannabis stock news from this week:
☕ First thing on Monday, July 26, Coffee Holding Co., Inc. (NASDAQ:JVA), a major wholesale coffee roaster and dealer in the U.S., announced that its 49% owned The Jordre Well LLC company has begun commercial selling of JVA’s first CBD-infused line extension for Café Caribe. Simultaneously, Coffee Holding Co. announced the commencement of selling its first CBD-infused line extension for Harmony Bay. According to the Chief Executive Officer of Coffee Holding Co., “We believe we are in a strong position to bring national leadership to the highly fragmented CBD-infused beverage market and intend to launch more high-quality and consistent CBD-infused products in the near future.”
👩 Aurora Cannabis Inc. (NASDAQ: ACB) announced the addition of Theresa Firestone to ACB’s Board of Directors, expanding the board to nine total members, on July 26. “Her background and well-defined skillset will be invaluable to us as we execute our strategic growth plans while managing costs more effectively. We look forward to benefitting from her many contributions to Aurora,” said Ronald Funk, chairman of Aurora.
🍁 On Tuesday, July 27, Flora Growth Corp. (NASDAQ:FLGC) confirmed that the Miami-based company is working on a joint venture with the producer and owner of KaLaya CBD pain relief cream, Canada-based Avaria Inc. A non-binding letter of intent has been signed for the deal geared toward registering, selling, and distributing the KaLaya brand of products in Colombia, Mexico, and other parts of Latin America. This is the second venture from Flora Growth focused on Latin America distribution which was announced recently. Kalaya’s CBD products will begin to be developed with Flora Growth cannabis prior to Latin America distribution.
🌿 Two major news drops came from Canopy Growth Corporation (NASDAQ:CGC), a major player in the worldwide cannabis industry, this week. First, on July 27, CGC announced that it has expanded its pre-roll offering with two new product launches. Both products, including Tweed Quickies and Ace Valley Pinners, are focused on an increased market need for smaller joints. According to a recent study commissioned by Canopy Growth, traditional 0.5 gram pre-rolls are mostly too big for single users.
As two products launch, CGC is clearly focusing on its wholly-owned brands. Along with this news, the partnership initiated in 2018 between Houseplant, Seth Rogan and Evan Goldberg’s cannabis company, and Canopy Growth Corporation, has been terminated. The decision was mutual and both companies have wished the best for the other. Subsequent to both of these announcements, Canopy Growth stock began trading almost 5% higher.
🔬 Alongside a newly-launched research initiative titled Project Change Lives, Clever Leaves Holdings Inc. (NASDAQ:CLVR) is pursuing a joint venture with Biopharmaceutical Research Company. The research will focus the DNA sequence variation of three Clever Leaves’ cannabis varieties. Through this research initiative, Clever Leaves Holdings has set aside $25 million worth of medical cannabis products to any eligible U.S. company working to explore the potential medical benefits of cannabis.
🚀 Tilray, Inc. (NASDAQ:TLRY), the current top WallStreetBets darling, released its latest quarterly earnings report on Wednesday, July 28. This is the first financial report that has been released since the acquisition of competitor, Aphria. The Q4 of fiscal 2021 report showed a dramatic increase in revenue for both the fourth quarter of the company’s fiscal year and for the full 2021 fiscal year. Prior to the blowout report, Cantor Fitzgerald maintained an ‘Overweight’ rating on TLRY and lower its price target to $19 from $24. Tilray stock soared over 25% following the earnings announcement on Wednesday.
💦 On July 28, GrowGeneration Corp. (NASDAQ:GRWG), a major hydroponics company, announced its plans to acquire the third-largest chain of hydroponic gardening centers in the United States, HGS Hydro. The price was not disclosed. GRWG is aiming to close the transaction by the end of the fiscal 2021 year and, with this acquisition, GRWG will own 14 hydroponic garden centers and 65 hydroponic stores.
💲 Grove, Inc. (NASDAQ:GRVI), a company focused on all aspects of hemp and CBD, released its preliminary and unaudited quarterly financial results on Wednesday, July 28. GRVI released preliminary numbers and expectations for the company’s full fiscal year of 2021, demonstrating a year-over-year growth of approximately 200%. According to Allan Marshall, Chief Executive Officer of Grove, “We are excited to have surpassed all our internal projections for growth and profitability in 2021. The success of our growth is the culmination of hard work by our entire team and a strategy that built a foundation for continued growth and expansion, while maintaining profitability. I am excited heading into 2022 with some momentum and flexibility to invest in new verticals and continue our internal growth.”
💻 High Tide Inc (NASDAQ:HITI) released its plan for a joint venture with Jane Technologies, a retail technology company based in the cannabis industry, on July 29. The goal of the partnership is to provide Jane’s e-commerce solutions to cannabis industry operators in Canada and in parts of the United States where cannabis is legalized.
🌏 On Thursday, July 29, IM Cannabis (NASDAQ:IMCC), put out a press release announcing two acquisitions that took place this week. The goal behind these acquisitions is to continue to fulfil to company’s mission: to pioneer the expansion of medical cannabis in Israel and maintain its already existing operations in Canada and Germany. The total spend on these recent acquisitions adds up to $3.7 million.
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