HEXO, OGI, and APHA released earnings this week
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.
According to a recent forecast from Headset, the U.S. cannabis market is anticipated to reached approximately $23 billion in sales this year, significantly higher than the estimate for Canada's cannabis market in 2021 of $4 billion. Headset also projects that, while both the U.S. and Canadian cannabis markets will continue growth over the next two years, the Canadian pot stock market will advance at more than twice the speed of the U.S. cannabis market.
Here is a quick roundup of major cannabis stock news this week:
Aphria Inc. (NASDAQ:APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their best life, announced the addition of Good Supply's THC 30:0 and Solei Plus+ high potency oils to its award-winning adult-use brand portfolio, which joins a range of other formats available, including whole dried flower, pre-rolls, oral sprays, soft gels, vapes, and topicals on April 15. Aphria also reported third quarter of 2021 financial results on April 12. Net revenue for the quarter was $153.6 million, marking an increase of 6.4% year-over-year, and a decrease of 4.3% quarter-over-quarter. Options traders, meanwhile, targeted the $15 level.
Canopy Growth Corporation (NASDAQ:CGC), world-leading diversified Cannabis, hemp, and vaporization device company, announced the launch of Vert, the Company's first Quebec -exclusive brand on April 16. The first two strains to launch under the Vert brand are 'Green Cush' and 'Sour Kush,' which will be sold via the Société Québécoise du Cannabis (SQDC) in dried flower and pre-roll joint formats.
HEXO Corp (NYSE:HEXO) announced it has filed a new preliminary short form base shelf prospectus with securities regulators in each of Canada's provinces and territories and a corresponding shelf registration statement on Form F–10 with SEC effective April 15. The Base Shelf Prospectus and Registration Statement, when made final and effective, will enable HEXO to make offerings of up to $1.2 billion CAD of common shares, warrants, subscription receipts, and units or a combination thereof from time to time, separately or together, in amounts, at prices.
Organigram Holdings Inc. (NASDAQ:OGI), a leading licensed producer of cannabis, released its results for the fiscal second quarter of 2021 on April 13. In the second quarter of 2020, Organigram posted a net loss of $66 million, a significant drop year-over-year, due to the negative change in the fair value of the derivative warrant liabilities and the negative gross margin in the fiscal second quarter of 2021.
22nd Century Group, Inc. (NYSE:XXII), a leading plant-based biotechnology company that is focused on tobacco harm reduction, very low nicotine content tobacco, and hemp/cannabis research, announced on April 15 that 22nd Century Group is fully prepared to support New Zealand in its efforts to become a smoke-free nation by 2025.