9 Red-Hot Cannabis Stocks Blazing This Week

HEXO, CGC, and ARNA were all in the news this week

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Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks last week, and look ahead to how the cannabis industry will continue to develop in the 2021.

Investor interest in the cannabis industry is growing at an explosive growth 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, more and more companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.

After the Senate runoff elections tilted the majority toward Democrats last month, there has been continuing anticipation that the prospects of cannabis legislation will now find footing in Congress. While full-scale legalization may be out of reach, smaller reforms tied to police and banking could positively impact the cannabis industry.

If federal legalization happens, Wall Street analysts have recently said that, by 2030, the cannabis market could be worth somewhere around $115 billion. As the cannabis sector continues to grow, investors can anticipate many more marijuana stock initial public offerings (IPOs) on the horizon for the cannabis industry.

Here is a quick roundup of major cannabis stock news this week (Feb. 16 through Feb. 19):

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)  announced on Thursday that the Compensation Committee of its Board of Directors granted to eleven new ESOP to purchase an aggregate of approximately 34,000 shares of its common stock and 8,500 inducements restricted stock units ("RSUs") on Feb. 15. Arena Pharmaceuticals also announced on Feb. 16 that there had been changes made to the company's Board of Directors. Garry Neil, MD, has been appointed Chair of the Board. Additionally, Nawal Ouzren has been appointed as a new board member for ARNA.

Canopy Rivers Inc. (TSX:RIV) has announced on Feb. 17 that its shareholders voted to approve the previously announced plan of arrangement with Canopy Growth Corporation (NASDAQ:CGC).

cbdMD, Inc. (NYSE:YCBD), one of the leading and most highly trusted and recognized cannabidiol (CBD) brands,  announced on Feb. 19 that the company has expanded its category-exclusive partnership with popular weekday morning sports talk show, The Pat McAfee Show.

GW Pharmaceuticals plc (NASDAQ:GWPH), a world leader in the science, development, and commercialization of cannabinoid prescription medicines, released its financial results and operating progress for the fourth quarter and full year of 2020 on Feb. 16. The quarter's total revenue was $148.2 million compared to $109.1 million for the fourth quarter of 2019. Net loss for the fourth quarter of 2020 was $29.1 million compared to a net loss of $24.9 million for the fourth quarter of 2019.

HEXO Corp. (NYSE:HEXO) and Zenabis Global Inc. (TSX:ZENA) have announced on Tuesday that they have entered into a definitive arrangement agreement under which HEXO will acquire all of Zenabis' issued and outstanding common shares in an all-share transaction valued at approximately $235 million.

NewAge, Inc. (NASDAQ:NBEV), the Colorado-based social selling and distribution company, announced on Feb. 16 that it has entered into a definitive agreement with investors to purchase 14.6 million shares of common stock in a private placement priced at-the-market under Nasdaq rules. The purchase price for the shares of common stock is $3.96.

Sundial Growers Inc. (NASDAQ:SNDL) announced on Feb. 19 that holders of approximately 100 million warrants to purchase common shares of the company will exercise for cash their warrants at prices of $0.80 and $1.10 for gross proceeds to SNDL of $89.1 million.

Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, reported financial results for the fourth quarter of 2020 and the full fiscal year on Feb. 17. Revenue increased 26% to $210.5 million in 2020 compared to the prior year—net loss $3 million in for the fourth quarter of 2020 versus a net loss posted $219.8 million for the fourth quarter of 2019.

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