Agrify inked a deal expected to generated $68.7 million
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.
Here is a quick roundup of major (and action-worthy!) cannabis stock news from this week:
Before the bell on Tuesday, Akerna Corp. (NASDAQ:KERN) woke up investors with the release of its unaudited Q3 financial results. The results feature a revenue spike of 37% year-over-year with total revenue production adding up to $4.6 million. According to Akerna CEO Jessica Billingsley, "With the acquisition of 365 Cannabis that announced during the quarter, our financial and tax planning integrations now span the majority of the mainstream systems."
HEXO Corp. (NASDAQ:HEXO) announced that the cannabis company will be shutting down three of its Canadian production sites and laying off over 100 workers per its integration plans following its recent acquisitions. The three sites should all be decommissioned by the end of February 2022.
News broke on Tuesday that Cronos Group Inc. (NASDAQ:CRON) will need to delay filing Q3 of 2021 earnings as the company is facing a pending impairment charge for U.S. CBD activities. CRON dropped a hefty 14% immediately following the press release on this issue.
Village Farms International Inc. (NASDAQ:VFF) released its Q3 of 2021 financial results on Tuesday morning. The highlight of the report was a net income production of $5.3 compared to just the $2 million produced in Q3 of 2020.
After the market closed for the day on Nov. 9, Aurora Cannabis Inc. (NASDAQ:ACB) released its Q1 of fiscal 2022 earnings report. The Aurora leadership team noted a 23% increase in revenue year-over-year cited as being driven by its high-margin medical marijuana segment. The medical cannabis market commands significantly higher average net sales pricing.
urban-gro Inc. (NASDAQ:UGRO) released Q3 of 2021 financial results after the closing bell on Tuesday, citing 119% revenue growth year-over-year while setting a new revenue record. According to URGO’s CEO Bradley Nattrass, “I am very excited about what the future holds for urban-gro as we further expand upon our integrated service model by executing on accretive and synergistic acquisitions, investing in the European indoor CEA market.”
After the closing bell on Tuesday, Jazz Pharmaceuticals (NASDAQ:JAZZ) released its Q3 of 2021 financial results and updated guidance for the remainder of 2021. JAZZ’s revenues increase 39% year-over-year to $838.1 million.
On Wednesday evening, Clever Leaves Holdings Inc. (NASDAQ:CLVR) released Q3 of 2021 earnings. Revenue for Q3 stood only 3% ahead year-over-year, while still remaining in positive territory. The Clever Leaves CEO noted a continued comeback from the pandemic lows that CLVR is still recovering from. During Q3, Clever Leaves added an additional 150,000 square feet to its cultivation facility in Portugal.
Decibel Cannabis Company Inc. (NYSE:DB) made a major product announcement on Nov. 10. Its first shipment of DB’s latest product line, infused pre-rolls, was completed. At this time, Decibel Cannabis infused pre-rolls are only available in Alberta with plans to release in other areas of Canada in the coming months. As the product rollout extends across Canada, Decibel Cannabis will be working to release three more types of infused pre-rolls.
On Nov. 10, Agrify Corporation (NASDAQ:AGFY) released its Q3 of 2021 earnings before the opening bell. Agrify generated a massive 460% increase in revenue year-over-year. Earlier in the week, Agrify announced a definitive agreement Kief USA LLC whereby Agrify will install 485 vertical farming units at Kief USA’s facility to get Kief USA up to being a tier 11 cultivator and manufacturer. The agreement is anticipated to deliver over $68.7 million in revenue to AGFY in the first three years.
GrowGeneration Corp (NASDAQ:GRWG) released Q3 of 2021 earnings on Thursday morning, featuring record-high revenue of $116 million. This is a 111% increase when compared to the $55 million produced in Q3 of 2020.
On Thursday, InMed Pharmaceuticals (NASDAQ:INM) filed a Patent Cooperation Treaty application in an effort to develop a treatment for neurodegenerative disease with specific cannabinoids. The patent, which will be an international one, specifies the specific cannabinoid that INM speculates will slow down the progressive of diseases like Alzheimer’s, Parkinson’s, Huntington’s, and more.
Cresco Labs Inc (NASDAQ:CL) released Q3 of 2021 earnings on Thursday morning, featuring a 41% increase in revenue year-over-year. Revenue produced over the past quarter totaled $215.5 million. According to Cresco Labs co-founder Charles Bachtell, “During the quarter, we replenished our balance sheet with non-dilutive capital, we closed a transformative acquisition in Massachusetts creating our third top three market share in a billion-dollar market, we announced several new deals to drive market depth, and we made massive improvements in bottom-line profitability as infrastructure investments began to bear fruit.”