Here on the Marijuana Minute, you will find the top stories from around the industry in this week’s Cannabis Stock News Recap for the week of May 20th – 26th, 2019.
It’s that time of year again. Historically during the spring months and into the summer cannabis stocks begin to slump. There are many potential reasons as to why this phenomenon occurs. Many believe in the “Sell in May and go away” theory.
As we approach the end of the spring months we decided to do some digging and came up with a list of the top three Canadian cannabis stocks with the largest open short positions. In the event of a major market catalyst these three licensed producers could be great stocks to own should a large short squeeze take place.
Without further ado here is our list:
Aphria Inc. (TSX: APHA) (NYSE: APHA) pushed the cannabis sector higher today surging over 14% after analyst Owen Bennett of Jefferies Financial Group initiated covered on the stock. Bennett slapped a buy rating on APHA in addition to placing a price target of $15 CDN ($11 USD) on the stock. The $15 price target currently sits 51.82% above Aphria’s closing price of $9.88 CDN on Friday, May 24, 2019. There is certainly a disconnect between Aphria’s current valuation and the company’s position amongst the industry leaders such as Canopy Growth (TSX: WEED) (NYSE: CGC) and Aurora Cannabis (TSX: ACB) (NYSE: ACB).
Two of Canada’s leading LPs saw their analyst price targets increased while the other decreased.
The Canadian cannabis sector continues to be led by the ‘Big 3’ licensed produces (LPs). Canopy Growth, Aurora Cannabis, and Cronos Group sit perched at the top of the mountain but who will be able to maintain their spot?
Let’s take a look at what the industry’s top analysts have to say:
HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) and Newstrike Brands Ltd. (TSXV: HIP) are pleased to announce that they have completed the previously announced arrangement, pursuant to which HEXO has acquired all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario).
“Today, our company begins the next phase of its great adventure,” said Sebastien St-Louis, CEO, and co-founder of HEXO.
Newstrike Brands Ltd. (TSXV:HIP) today announced that it has obtained a final court order from the Ontario Superior Court of Justice approving the previously announced plan of arrangement under the Business Corporations Act (Ontario), in which HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) will acquire all of Newstrike’s issued and outstanding common shares by way of a plan of arrangement under the Business Corporations Act (Ontario).
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) and Acreage Holdings, Inc. (CSE: ACRG.U) (OTC: ACRGF) (FSE: 0ZV) are pleased to announce that they have filed their respective management information circulars and related voting materials in relation to the previously announced proposed acquisition of Acreage by Canopy Growth, pursuant to a court-approved arrangement under the Business Corporations Act (British Columbia).
- Canopy Growth’s brands, technology, and know-how is anticipated to provide Acreage with a significant and immediate advantage in an increasingly competitive U.S. market and fuel Acreage’s growth.
- Acreage shareholders will benefit from Acreage’s ability to achieve its growth strategy with reduced cost of capital based on Canopy Growth affiliation.
- Canopy Growth shareholders will benefit from accelerated and turnkey access to the U.S. cannabis market upon the closing, following the Triggering Event.
- Management of both firms believe they will create greater shareholder value together than as competitors in the U.S.
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has finalized an all-cash transaction to acquire This Works for a purchase price of £43 million (CDN $73.8 million). Founded in 2004, This Works has cemented itself as a global leader in natural skincare and sleep solutions with a devout customer base spanning 35 countries.
“We believe CBD has the potential to disrupt the cosmetic and sleep solution industries and have been working for years to build and establish the right entry point into this opportunity,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “As soon as we met with Dr. Persaud and her team, we knew they were the right partner to embark with on this journey.”
Tweed, Canada’s top cannabis producer, is excited to announce the May 23rd grand opening of their Meadow Lake retail location with a celebration of fun, education and most importantly, community love!
Legal cannabis is new to many consumers but we’ve been cutting our teeth as a medical producer for years so we can help suggest strains and educate on the different ways to consume cannabis.
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabis worldwide, and UFC®, the world’s premier mixed martial arts organization, are excited to announce an exclusive, multi-year, multi-million dollar, global partnership that is expected to significantly advance further clinical research on the relationship between 100% hemp derived Cannabidiol (CBD) products and athlete wellness and recovery, with a view to accelerating CBD product development and education.
“Since the day we opened the Performance Institute, our primary goal was to offer UFC athletes the best possible training, nutrition, and recovery services,” said UFC President Dana White. “This partnership with Aurora is an extension of that goal, and we’re looking forward to collaborating with Aurora to find new ways to improve the health and safety of athletes who compete in UFC.”
Aphria Inc. (TSX: APHA and NYSE: APHA) today announced that its German subsidiary Aphria Deutschland GmbH had been awarded the fifth lot for the cultivation of medical cannabis in Germany as part of the Company’s previously awarded license from the German Federal Institute for Drugs and Medical Devices (“BfArM“). The additional lot was provisionally awarded to Aphria Germany in April and was secured following a review by a German court, which affirmed the original decision by the BfArM.
“We are thrilled about our successful conclusion to the German tender process, which has awarded Aphria with the most comprehensive license in the country,” said Hendrik Knopp, Managing Director of Aphria Germany.
Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced that its wholly-owned subsidiary Tilray Portugal Unipessoal Lda. (“Tilray Portugal”) has received a standard manufacturing license and a Good Manufacturing Practices (GMP) certification, in accordance with the European Medicines Agency’s (EMA) standards, for its Biocant Park manufacturing facility in Cantanhede, Portugal. This license and certification allow Tilray Portugal to manufacture and export GMP-certified dried cannabis as an active substance for medicinal products.
“This licensing and certification marks a critical milestone for our growth in Portugal and Europe. We’re proud to increase our international export capacity and are looking forward to exporting dried cannabis as active substances from our EU Campus to legal jurisdictions in the EU and other international markets,” said Sascha Mielcarek, Managing Director, Europe.
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce it has been selected by The Mount Sinai Hospital, New York City (“Mount Sinai”), to participate in a clinical trial dedicated to developing a non-addictive oral gelcap medication for the treatment of opioid use disorder through anti-anxiety intervention utilizing hemp-derived CBD combined with a proprietary formula (the “Formula”). This will be a U.S. and international large-scale, multi-site clinical trial that will include at least 500 patients spanning the United States, Canada, Australia, Europe, and Jamaica.
“We are extremely pleased MediPharm Labs has been selected to be involved in this landmark, clinical trial to properly evaluate the potential benefits of CBD and that can lead to important medical therapies for millions suffering from opioid use disorder,” said Patrick McCutcheon, CEO, MediPharm Labs.
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce that its subsidiary, MediPharm Labs Australia Pty. Ltd., has received its cannabis manufacturing licence from the Australian Office of Drug Control under the Narcotics Drugs Act 1967 on May 21, 2019. This is a significant milestone for MediPharm Labs that establishes the Company as an early mover in the Australian cannabis industry. In addition, MediPharm Labs Australia is expected to provide the Company with a global supply chain platform and a foothold in the Asia-Pacific region.
“MediPharm Labs Australia’s cannabis manufacturing licence marks a significant achievement and important milestone that establishes MediPharm Labs as the largest Canadian extraction-only company with a clear path towards a global supply chain,” said Patrick McCutcheon, CEO, MediPharm Labs.
Anticipating the legalization of adult-use cannabis edibles, and ready to demonstrate a leadership position in the edibles market, Organigram Holdings Inc. (TSXV: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce a $15 million investment commitment in a high-speed, high-capacity, fully-automated production line with ability to produce an estimated 4 million kilograms of exceptional chocolate cannabis edibles per year. Organigram expects to take delivery of the line in the fall.
“Over the last number of years, Organigram has become known for its best-in-class cannabis production facility and high-quality products,” says Greg Engel, CEO, Organigram. “With this investment, we will soon also be known for our world-class chocolate production capability.”
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) is pleased to announce that it has secured a cannabis supply agreement with Alberta Gaming, Liquor & Cannabis (“AGLC”), further expanding its footprint in Western Canada. AGLC, under the brand Alberta Cannabis, is Alberta’s legal, non-medical online cannabis store.
“Alberta is an important market for us as we continue to expand our distribution channels across Canada,” commented Brian Athaide, CEO of TGOD. “With our production facilities in Hamilton, Ontario, and Valleyfield, Quebec coming online in phases, we are thrilled to start distributing TGOD’s premium certified organic cannabis to AGLC.”
Horizons ETFs Management (Canada) Inc. is pleased to announce the launch of the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU“) and the BetaPro Marijuana Companies Inverse ETF (“HMJI“). Units of the ETFs will begin trading Friday, May 24, 2019, on the Toronto Stock Exchange under the ticker symbols HMJU and HMJI, respectively.
HMJU and HMJI provide leveraged and inverse exposure, respectively, to the North American MOC Marijuana Index. The Index tracks the daily performance of a basket of North American publicly listed companies with significant business activities in the marijuana industry.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), a leading vertically integrated cannabis operator in the United States, today announced it has acquired exclusive rights to operate the Emerald dispensary in Gilbert, AZ, whose license is held by Absolute Healthcare, Inc., an Arizona non-profit corporation. The dispensary will be rebranded as Curaleaf after the transaction closes.
“This store fits very well into our existing footprint in Phoenix and is expected to be immediately accretive,” said Joseph Lusardi, Chief Executive Officer. “Combining Emerald’s large patient base with Curaleaf’s established supply chain is anticipated to generate strong earnings and enhance patient care in Arizona.”
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) today reported financial results for the first quarter ending March 31, 2019. Financial results and analyses are available on the Company’s website (www.terrascend.com) and SEDAR. All figures are reported in Canadian dollars unless otherwise indicated.
- First quarter revenue of $14.6 million, up from $5.0 million in the fourth quarter of 2018.
- Company reiterates 2019 full-year guidance of revenue exceeding $135 million.
- Strong growth in the US and Canada; exports to Germany to commence this quarter, making TerrAscend the first and only cannabis company with sales in the US, Canada, and Europe.
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a property in Saxton, Pennsylvania, which comprises two buildings totaling approximately 266,000 square feet of industrial space.
“We are pleased to add multi-state operator Green Leaf Medical to our premier tenant roster,” said Paul Smithers, President and Chief Executive Officer of IIP.
Transcanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is pleased to announce the hiring of Shawn Shevlin the president and co-founder SolDaze, Inc., an organic CBD, THC infused mango line of snacks and treats. Shawn will oversee the newly formed branding division for TransCanna at the Modesto facility, which will be responsible for statewide sales. He has over 25 years of experience in branding agricultural related products as well as a background in sales and operations.
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is pleased to announce the execution of a non-binding Letter Of Intent dated May 17, 2019, with Lyfted Farms, Inc., of Modesto, California, to acquire the business and assets of Lyfted. Lyfted Farms is a state licensed producer of high quality indoor grown cannabis. The three permanent state licenses that Lyfted owns are for cultivation (nursery), cultivation (grow), and distribution.
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