A quick recap from the world of pot stocks from the holiday-shortened week
Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks this past week and look ahead to how the cannabis industry will develop in the new year.
Investor interest in the cannabis industry continues to grow, and the leading players continue to break through legal barrier after legal barrier. More than 40 U.S. states have legalized recreational and/or medical marijuana as we close out the year. As such, more and more companies are starting to see the opportunity in cannabis distribution, suggesting there are many more marijuana initial public offerings (IPOs) on the horizon for the marijuana stock industry.
The U.S. Food and Drug Administration (FDA) made headlines in the world of cannabis this week. The FDA sent warning letters to five companies on December 22 to immediately stop the unlawful sales of CBD products that violate Federal Food, Drug, and Cosmetic Act. These companies include Bee Delightful, G&L Wellness, New Leaf Pharmaceuticals, NextL3vel Services Group, and Wellness BioSciences.
According to the CEO of Black Dog LED, cannabis is recession-proof. In a recent press release, Grand View Research has projected that the worldwide legal marijuana market will reach $146.4 billion before the end of 2025. And the Covid-19 pandemic has not kept cannabis companies down. The Journal of Addictive Diseases released a study recently that confirmed people are choosing cannabis when attempting to cope with the stressors of the pandemic.
Here is a quick roundup of a major cannabis stock news this week (Dec. 21 through Dec. 24):
Canopy Growth Corporation (NASDAQ:CGC), announced on December 21 that it has entered into an agreement with its wholly-owned subsidiary The Tweed Tree Lot, Canopy Rivers, and its wholly-owned subsidiary Canopy Rivers Corporation (CRC). Canopy Growth will acquire certain assets from CRC, in exchange for cash, common shares in the capital of Canopy Growth, and the surrender of all shares in the capital of Canopy Rivers held by Canopy Growth by way of a plan of arrangement under the Business Corporations Act.
cbdMD, Inc. (NYSE:YCBD), one of the nation’s leading and most highly trusted and recognized cannabidiol (CBD) brands, announced on its financial results for the fourth quarter of 2020 on December 22. Net sales increased by 77% year-over-year to a record of $41.9 million in the company's fiscal 2020. This is an increase from the $23.6 million in company's fiscal 2019. cbdMD's gross profit margin increased to 63% in fiscal 2020 compared to the 61% increase reported for 2019.
GW Pharmaceuticals plc (NASDAQ:GWPH), the world leader in the commercialization of cannabinoid prescription medicines, along with U.S. subsidiary Greenwich Biosciences, announced on December 21 that JAMA Neurology has published the results of the company’s positive Phase 3 clinical trial of EPIDIOLEX® oral solution and its effectiveness in seizures associated with tuberous sclerosis complex.
HEXO Corp (NYSE: HEXO), announced on December 18 that, following shareholder approval of the previously announced consolidation of its issued and outstanding common shares based on four into one share reverse stock split at its annual and special meeting of shareholders back on December 11.
Organigram Holdings Inc. (NASDAQ:OGI), the parent company of Organigram Inc., a leading licensed producer of cannabis, announced the launch of three new Edison Cannabis Co. Indica strains on December 22. These new strains include high-potency Black Cherry Punch, Ice Cream Cake, and full-flavor Slurricane.
Sundial Growers Inc. (NASDAQ:SNDL) announced on December 21 that the company is now debt-free, following the prepayment of the remaining outstanding principal under its senior secured non-revolving term credit facility of $21.9 million CAD. As of today, no debt remains outstanding for Sundial Growers.