Remember last month, when users of Reddit’s popular WallStreetBets forum caused shares of GameStop Corp. (NYSE: GME) to rise by creating a massive short pressure on the stock. The group also targeted AMC Entertainment Holdings Ing (NYSE: AMC).
This forced short sellers to buy more to avoid large losses, which caused the share price to rise rapidly.
Well, last week they were targeting cannabis.
Swaggy Stocks – a site that follows the ticker sentiment on WallStreetBets – noted Sundial Growers Inc. (NASDAQ: SNDL), Tilray Inc. (NASDAQ: TLRY) and Aphria Inc. (NASDAQ: APHA) went along for the ride:
- Sundial jumped 79% on Wednesday
- Tilray nail 51%
- Aphria grew by 11%.
It was of short duration. By Thursday, Tilary was down 50%, Aphria was down 36% and Sundial was down 19%.
On Friday, Tilray shares closed 9.83%, while Sundial closed 12.61%. Aphria increased slightly by 0.36%.
Benzinga Cannabis Content Now Available in Spanish El Planteo.
Other Cannabis Spikes
ETFs have appeared. Over the past five trading days:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): Achieved 70.73%
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): 59.18%
- The Cannabis ETF (NYSE: THCX): up 84.6%
- The Strengthen Seymour Cannabis ETF (NYSE: CNBS): Advanced 99%
- The SPDR S&P 500 ETF Trust (NYSE: SPY) rose 5%.
Regulatory updates
Legislation on cannabis reform in Minnesota is set to receive its first hearing on Wednesday, Feb. 17, in the House Trade Finance and Policy Committee.
Cannabis Business Owners in Iowa can get some financial relief if the Iowa Department of Public Health and the University of Iowa agree to reduce medical marijuana patient and provider fees to $ 2,000 a year and set up a tax deduction for expenses.
Colorado High Country Supply awarded with its first delivery permit for marijuana. The company noted that it expects to start delivering by March 1st.
Wisconsin Government Tony Evers will include marijuana legalization in its budget proposal to ensure a controlled market and safe product is available to both recreational and medical users. “The program could generate about $ 165 million a year from fiscal 2023,” he says.
New Jersey Government Phil Murphy has signed a bill amending the fines for possession of magic champions. The new bill reduces convictions for those caught with less than one gram of psilocybin mushrooms from up to five years in prison to just six months. Fines of up to $ 35,000 would drop to $ 1,000. Previously, it was a third-degree crime. Now less than one gram is considered a disorderly offense.
South DakotaThe result of the November 3 ballot paper is considered unconstitutional by a judge. The decision is in line with the challenges posed by government Kristi Noem, which ordered a lawsuit to destroy part of the adult ballot last month.
Financing and M&A.
- Auxly Cannabis Group Inc. (TSXV: XLY) (OTCQX: CBWTF) raised $ 20 million as part of a share offering co-led by ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corp. Auxly plans to use the collected net proceeds for working capital and other purposes.
- Jet, which manufactures 100% THC-free CBD products, has completed its $ 5 million financing round, led by C2 Ventures. The startup is also supported by Obvious Ventures, Camwood Capital and athletes including Danica Patrick, Kevin Hayes and Brooks Laich. Several new investors such as The Yard Ventures, Litani Ventures and Carter Comstock have also decided to join the effort.
- BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF), a Vancouver manufacturer of cannabis-administered beverages, has agreed to buy Naturo Group Inc.
- Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) raised approximately $ 25.2 million (US $ 19.8 million) through a private placement agreement. Under the agreement, the New York cannabis company agreed to sell approximately 2.8 million of its common shares to Canaccord Genuity Corp at CA $ 9 ($ 7.1) per share.
- Green check verified, a legal tech company focused on cannabis banking solutions and services, has announced a $ 2.4 million overdrafts for the convertible notes. The round was led by Flatiron Venture Partners. Bravos Capital, Basecamp, Silverleaf Venture Partners and Fenway Summer also join.
- Cannabis CPG Company Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) secured $ 100 million from an unknown institutional investor. Rumors are dis BlackRock (NYSE: BLK). Click here to find out more.
- Jushi Holdings Inc. (CSE: JUSH) (OTCQB: JUSHF) priced its overnight market offering of a total of 6.5 million subordinated voting shares at a price of CA $ 10 per share, for a total gross return of CA $ 65 million (US $ 51 million).
- NBA legend Isiah Thomas invested $ 3 million in hemp and cannabis producer One World Pharma Inc. (OTCQB: OWPC). The former Detroit Pistons player, who was named CEO of One World Pharma last year, has invested through his holding company, Isiah International. With the funds, One World Phara can build a THC and CBD withdrawal facility in Colombia and subsidize future growth.
Earnings reports
- Aurora Cannabis (NYSE: ACB) reported that total cannabis sales in the second quarter were approximately $ 70.3 million. This is 11% higher than in the second quarter of 2020. Net revenue from medical cannabis reached $ 38.9 million – 42% higher than the second quarter of 2020, thanks to a 562% increase in international medical sales with a high margin. The cannabis producer in Edmonton, Canada, experienced an adjusted EBITDA loss of $ 12.1 million. This is an improvement of $ 53.1 million in the second quarter of 2020.
- Canopy Growth Corp. (TSX: WEEDS) (NASDAQ: CGC) increased net income by 23% year-on-year, to $ 153 million. The company Smith Falls, Canada, reported a net loss of $ 829 million. Adjusted EBITDA was also a loss of $ 68 million compared to a loss of $ 97 million in the corresponding quarter of 2020.
- The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) expects fourth-quarter revenue to reach $ 10.9 million, representing year-on-year successive growth of 235% and 91% respectively. According to a preliminary financial report, Canadian operations and sales accounted for $ 8.6 million of total gross revenue for the period.
- Canopy Rivers Inc. (OTC: CNPOF) reported total comprehensive income of $ 82.2 million in the third quarter of this fiscal year, compared to a loss of $ 40 million in the same period last year. The Toronto-based company attributes the growth to an increase of $ 11.4 million in its value TerrAscend Canada Inc. (CSE: TER) (OTCQX: TRSSF) investment.
- Turning Point Brands Inc. (NYSE: TPB) says net sales rose 31.2% year-on-year to $ 105.3 million in the fourth quarter. Adjusted EBITDA increased by 80.9% to $ 25.8 million over the period. For the year, net sales amounted to $ 405.1 million. Net income increased by $ 19.3 million over the year.
- CbdMD Inc. (NYSE: YCBD) says e-commerce sales directly to the consumer increased by 41% year-on-year and 13% respectively, reaching a record $ 9.7 million in the first quarter of fiscal 2021 . says net sales for the first three months of this year rose 22% year-on-year to $ 12.3 million. The gross profit margin for the period increased from 63.5% to 72.2%. Operating expenses decreased by 15% year-on-year and by 2% to $ 10.7 million, respectively. The operating loss was $ 1.8 million, down 71% from the same quarter last year.
- Pyxus International Inc. (NYSE: PYX) revenue increased 4.5% year-on-year to $ 379.6 million in the third quarter of fiscal year 2021. Adjusted EBITDA also improved, by 64.9% to $ 39, 9 million, compared to a positive adjusted EBITDA of $ 24.2 million for the corresponding quarter of last year.
- The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) generated approximately $ 21.7 million in gross revenue and $ 18.3 million in net revenue in the second quarter of fiscal 2021. During the same period, recreational net income increased by 70% to $ 12.7 million. Wholesale net revenue, including the international medical cannabis segment, rose 28% quarter-on-quarter to $ 5.6 million.
Movers & Shakers
- Curaleaf Holdings Inc. (OTCQX: CURLF) has announced an initiative called “Rooted In Good”. The company in Wakefield, Massachusetts, promises to employ at least 10% of the 2021 employees previously saddled with cannabis-related offenses or criminal records.
- National Roundtable for Cannabis (NCR) welcomed Kathleen Sebelius, the U.S. Department of Health and Human Services under former President Barack Obama, to be honorary president. Click here for more information.
More news of the week
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