Without further ado, let’s get started.
Brad touched on a variety of topics which included the RWB investment opportunity, revenue projections, market cap compared to Multi-State Operator (MSO) peers such as Curaleaf (CSE: CURA) & Trulieve (CSE: TRUL), Michigan & Illinois market, their acquisition of the World’s Largest Indoor CBD/Hemp Facility, branding strategy & more.
The cannabis fueled party on Wall Street shows no signs of slowing down as yet another U.S. listed cannabis ETF files the necessary SEC paperwork to join the action.
Global X Cannabis ETF will become the 5th cannabis-focused ETF to list in the United States this year and will trade alongside ETFMG Alternative Harvest ETF (NYSE: MJ), AdvisorShares Pure Cannabis ETF (NYSE: YOLO), The Cannabis ETF (NYSE: THCX) and Cambria Cannabis ETF (NYSE: TOKE). POTX will be the sole ETF listed on the NASDAQ. The other four ETFs currently trade on the New York Stock Exchange (NYSE).
This summer had cannabis stocks baked, and not in a good way. Overall market turmoil linked to global trade battles did not help the sector, and pot stocks got slammed by certain company scandals, regulatory whiplash, and a decline in enthusiasm among investors who had gotten in on the upswing without understanding the substance of cannabis consumption and production trends.
Autumn is just around the corner, and after a purge of bad execs and ignorant investors, the wise will turn to solid companies who capitalize on a handful of key industry drivers such as a ‘Trump Pump’ and ‘Legalization 2.0‘.
MedMen (CSE: MMEN) (OTCQX: MMNFF) announced that it is one step closer to closing its acquisition of PharmaCann LLC. The waiting period has expired under whats known as the “HSR Act”, which is an antitrust act intended to prevent anti-competitive mergers and acquisitions. As a result of the expiration, it verifies that the Department of Justice is not looking for additional information, and that the two firms can continue with the proposed merger.
While the closing of the agreement has been a long time coming for Medmen shareholders, the merger provides an example for the rest of the cannabis sector of what a second request from the Department of Justice can mean operationally. Notably, the Cresco Labs (CSE: CL) (OTCQX: CRLBF) and Origin House (CSE: OH) (OTCQX: ORHOF) proposed merger was hit with a second request on June 10, 2019.
Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF) announced that it has received approval for five adult use licenses in its home state of Massachusetts.
Three of the licenses are final licenses, while two are considered provisional.
Tilray (NASDAQ: TLRY) announced this morning that it had signed a definitive agreement with that of Privateer Holdings which effectively extends the lock up period of 75 million shares.
Originally announced on June 10 as a letter of intent, the agreement will allow for the shares to extend to a two year lock up period. Privateer originally incubated Tilray Inc, before taking it public via an IPO transaction.
Although there are some early-stage kinks to be worked out in North America, it’s pretty evident that worldwide demand should be robust, once the industry finds its footing. This is what’s coerced aggressive acquisition and merger activity within the industry over the past two years.
But don’t think for a moment that this acquisition activity is going to slow anytime soon. Right now, there are three major licensed producers that look far too inexpensive in my opinion, relative to the production they could bring to the table, not to be acquired at some point in the future.
However, these popular cannabis stocks have gained back much of their losses so far in September. Investor sentiment toward the cannabis industry can shift quickly.
Aurora Cannabis (TSX: ACB) (NYSE: ACB) released its fiscal Q4 financial results on Wednesday aftermarket. The company reported net revenue of $98.9 million for the quarter, an increase of 52% over the previous quarter. Net revenue from cannabis jumped 61% compared to the previous quarter coming in at $94.6 million.
The company reported an adjusted EBITDA loss of $11.7 million, a 68% improvement over Q3 2019’s loss of $36.6 million. Unfortunately, some of Aurora’s key numbers weren’t in line with analyst expectations.
One of Wall Street’s most respected cannabis analysts initiated coverage on five U.S. multi-state operators (MSO). Three of the MSO’s received outperform ratings and bullish price targets while the other two were more bearish.
Vivien Azer, the Managing Director and senior cannabis research analyst at Cowen as well as the first senior Wall Street analyst to cover the emerging sector announced today in a note to clients that she has initiated coverage on Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF), Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), Cresco Labs (CSE: CL) (OTCQX: CRLBF), Acreage Holdings (CSE: ACRG.U) (OTCQX: ACRGF) and MedMen (CSE: MMEN) (OTCQX: MMNFF).
Move Over Curaleaf, There’s a New MSO in Town and it’s Set to Hit The Street This September
Get the full details here so you don’t miss out on the next potential 10 bagger.