6 Cannabis Stocks Heating Up This Summer

SNDL, GRWG, HITI all announced new acquisitions last week

Jul 26, 2021 at 10:02 AM
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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 and look ahead to how the cannabis industry continues to shape up in 2021.

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, companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.

On CNN's "State of the Union" this week, U.S. Surgeon General Vivek Murthy spoke about the incarceration of citizens for cannabis-related crimes saying, "When it comes to decriminalization, I don't think that there is value to individuals or to society to lock people up for marijuana use. I don't think that serves anybody well." Murthy also mentioned that, when it comes to legalizing marijuana on a federal level, science should guide policy. More and more money is being infused into efforts to release those imprisoned on marijuana charges, especially in states when cannabis is legal for both recreational and medical usage.

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

Tilray Inc (NASDAQ:TLRY) acquired Aphria Inc in a major acquisition last year and, in doing so, also acquired the SweetWater Brewing Company. While SweetWater had previously released a 420 brand in its line of craft brews, a new product launched this week on Tuesday, July 20. The new drink, the 420 Imperial IPA, joins the companies other drink in the 420 lineup, 420 Extra Pale Ale, which is approximately 24 years old. The 420 Imperial IPA will be available on draft and in cans throughout the United States this month.

Two brand new cannabis companies announced initial public offerings (IPOs) this week! First up was Clover Leaf Capital Corp. (NASDAQ:CLOEU) went live for trading on the Nasdaq Capital Market on July 20 with an IPO of $138.3 million. CLOEU is a blank check company targeting the cannabis industry. Silver Spike Investment Corp. (NASDAQ:SSIC) followed closely after Clover Leaf Capital in announcing SSIC began officially trading on the Nasdaq Capital Market also on June 20 with an IPO of $150 million.

As we reported last week, High Tide Inc. (NASDAQ:HITI) sold three KushBar retail cannabis locations to Halo's subsidiary, Halo KushBar. This week, though, HITI announced it's plans to be on the purchasing end of an agreement with DS Distribution Inc., operating as DankStop.com on July 20. The deal is projected to close for $3.85 million. According to DankStop's Director Gabe Aronovich, "the synthesis of High Tide's expansive e-commerce and manufacturing capabilities with DankStop's vast subscriber base and social media presence will solidify High Tide's position as the global leader in the online consumption accessory market, and I could not be more delighted to be part of the High Tide family."

Clever Leaves Holdings Inc. (NASDAQ:CLVR) received an infusion of $25 million in financing from an affiliate of SunStream Bancorp Inc. on Tuesday, in an initiative sponsored by another big player in the cannabis space, Sundial Growers Inc. (NASDAQ:SNDL). Kyle Detwiler, CEO of Clever Leaves said, "With this financing, we expect to have greater flexibility to pursue new strategic growth opportunities, including new partnerships and acquisitions."

Quickly following the announcement of Sundial's loan of $25 million to Clever Leaves Holdings on July 20, the Reddit darling announced its finalized acquisition of Inner Spirit Holdings Ltd. Inner Spirit Holdings has a large network nationwide of Spiritleaf retail cannabis storefronts. On the news, SNDL jumped just under 4%.

On July 22, GrowGeneration Corp. (NASDAQ:GRWG) announced it's plans to acquire another hydroponic garden center in California, Mendocino Greenhouse and Garden Supply. This will mark GRWG's 58th location in the United States. Just last week, GrowGeneration also acquired Aqua Serene, a facility based on Oregon. GRWG dropped slightly, approximately 2%, during Thursday's trading session following the announcement.


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