Breaking Down a Busy Week of Weed Stocks

TLRY and SNDL recorded double-digit gains 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 continues to take shape in 2021. But before we whiparound the industry, check out our in-depth articles on sector stalwarts Sundial Growers (SNDL), Tilray (TLRY), and Canopy Growth (CGC).

Investor interest in the cannabis industry is growing at an explosive 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.

Some U.S. states including Texas, Tennessee, New Hampshire, Nevada, Illinois, Connecticut are making strides to pass bills legalizing cannabis. In Texas, he Texas House approved a budget amendment to the psychedelics research bill advancing it to the Governor's desk. HB 1802 requires the Department of State Health Services and Texas Medical Board to research the medical benefits and efficacy of psilocybin, MDMA, and ketamine when treating various mental health disorders and other ailments. Under the bill, the Health Department is expected to submit the research results with recommendations for further legislative actions on December 1 of 2022.

The Connecticut cannabis legalization measure supported by Gov. Ned Lamont passed another committee, possibly opening the doors for a floor vote in the coming week, reported Marijuana Moment. After the Illinois House passed the cannabis equity bill last month, the Illinois Senate also approved it Friday, sending it to the Governor's desk, reported Marijuana Moment. The Nevada Senate approved the cannabis consumption lounges legalization bill in a 17-3 vote on May 31, 2021, sending it to the Governor's desk, reported Marijuana Moment. New Hampshire Gov. Chris Sununu (R) placed his signature on a bill that would broaden the list of qualifying conditions for the state's medical cannabis program. Tennessee Governor Bill Lee signed a narrow medical cannabis expansion bill, SB 118, into law, reports NORML. The new law takes effect immediately.

Here is a quick roundup of major (and action-worthy!) cannabis stock news this week:

Applied DNA Sciences, Inc. (NASDAQ:APDN), a leader in Polymerase Chain Reaction (PCR)-based DNA manufacturing, announced on June 2 that its wholly-owned subsidiary, Applied DNA Clinical Labs, has secured a safeCircle™ pooled COVID-19 surveillance testing contract with Camp Chateaugay, an overnight summer camp program for teens and kids based in New York's Adirondack Mountain region.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) announced on June 3 that ARNA received an MSCI ESG Rating of "A." MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scale of AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.

Aurora Cannabis Inc. (NASDAQ:ACB), the Canadian company defining the future of cannabinoids worldwide, announced on June 1 that it had completed the restructuring of its balance sheet. The second amended and restated credit facility, which matures on December 31 of 2022, and consists of a term loan and revolver, was repaid in full, without penalty and at Aurora's discretion, in the amount of approximately $89 million, including accrued interest.

cbdMD, Inc. (NYSE:YCBD), announced on June 3 that its recently formed subsidiary, cbdMD Therapeutics, has begun a collaboration with researchers at the Colorado State University (CSU) veterinary program to explore the effects of the company's patent-pending, proprietary cbdMD branded cannabinoid blend on dogs that suffer from osteoarthritis.

FSD Pharma Inc. (NASDAQ:HUGE) announced the appointment of Mr. Adnan Bashir as an independent member of its Board of Directors upon the recommendation of the FSD Pharma's Compensation, Nomination, and Governance Committee on June 3.

HEXO Corp. (NYSE:HEXO) and Zenabis Global Inc. announced on June 1  that they had completed the previously announced arrangement, under which HEXO has acquired all of the issued and outstanding common shares of Zenabis as part of a planned arrangement under the Business Corporations Act.

Neptune Wellness Solutions Inc. (NASDAQ:NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable, and purpose-driven lifestyle brands, announced on June 3 that NEPT has appointed Steve West as Vice President of Investor Relations to build a leading investor relations outreach program across both retail and institutional investors.

Organigram Holdings Inc. (NASDAQ:OGI), a leading producer of cannabis, announced the appointment of Megan McCrae as Organigram's Senior Vice President of Marketing and Communications on May 31. OGI also announced on June 3 that it is currently recruiting for as many as 75 positions across most functional areas of the company. Positions available at Organigram include Operations, Production, Sanitation, Cultivation, Sales, Marketing, Research, and Quality Assurance.

Canopy Growth Corporation (NASDAQ:CGC) released its financial results for the fourth quarter and full fiscal year of 2021 on June 1. Canopy Growth reported net revenue of $148 million for the fourth quarter of fiscal 2021 which represents an increase of 38% over the fourth quarter of fiscal 2020. CGC reported a net loss of $1.7 billion for the full fiscal year of 2021, which is a $283 million wider loss than what Canopy Growth reported for the full fiscal year of 2020. CGC also announced on June 3 that it had ended its business relationship with Drake. Canopy Growth terminated a joint venture with Drake's More Life Growth Co. to sell cannabis in the Canadian and global markets in March. (NASDAQ:AMZN) came out in support of the Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act) on June 2. Amazon said it would adjust its corporate drug testing policy for some of its workers and no longer include marijuana in its drug screening program for any positions not regulated by the Department of Transportation.

Tilray Inc. (NASDAQ:TLRY) and Sundial Growers Inc. (NASDAQ:SNDL) both recorded double-digit gains during the June trading session amid high retail investor interest in the two Canadian-based cannabis companies. Tilray stock gained 11.9%, and Sundial Growers stock increased rose 13% during Wednesday's trading session after e-commerce giant, Amazon, said it supports the federal legalization of marijuana and will drop marijuana-testing requirements for some of its workers.

Tilray Inc. (NASDAQ:TLRY) and Aphria completed their merger in early May after many months of negotiations, resulting in the world's largest cannabis company as measured by revenue. In anticipation of the TLRY's financial report for the final quarter of fiscal 2021, Cantor Fitzgerald lowered its 12-month price target for Tilray stock to $22 from $30.25, an overweight rating, on June 3.


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