Two new cannabis-centric stocks debuted on Nasdaq 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 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:
First thing on Monday this week, Flora Growth Corp. (NASDAQ:FLGC) announced its revenue projections for the full year of 2022. FLGC's senior leadership team expects total revenue in the $35-45 million range next year. Following this 2022 outlook, Flora Growth's team scheduled a webinar for Dec. 14 in which the CEO will detail 2021 operational performance, and provide additional color on the latest 2022 financial guidance. Then, on Thursday, FLGC announced that it had entered the dry herb market through its Vessel Brand subsidiary. Through Vessel Brand, Flora Growth is able to expand into the current market with premium and exclusive cannabis products.
High Tide Inc. (NASDAQ:HITI) established an at-the-market (ATM) equity offering program with a goal of raising up to $40 million CAD through the issuing of its common shares while following all regulatory requirements. The plan, as announced on Dec. 6, for the money raised through the ATM program is to fund two strategic initiatives in progress while maintaining a HITI's healthy balance sheet.
On Tuesday, GrowGeneration Corp. (NASDAQ:GRWG) announced the relocation of its Phoenix, AZ store. GRWG's relocation to a brand new 25,000 square foot center in the Phoenix Metro area will be the largest hydroponic garden center in the state of Arizona. According to GrowGeneration's CEO, "We continue to be committed to supplying the Phoenix market with the best-of-breed hydroponic growing supplies as well as unrivaled cultivation expertise for the increasing number of growers, from craft gardeners to large-scale commercial cultivators."
Agrify Corporation (NASDAQ:AGFY), a major player in the cannabis-centric technology solutions space, announced the signing of a binding letter of intent for its planned acquisition of PurePressure for $9 million on Dec. 8. PurePressure is a manufacturer in the cannabis space for solventless extraction equipment. According to AGFY chairman and CEO, "We believe superior extraction solutions will be at the core of producing high-quality medical and recreational consumer products consistently, and the expected addition of PurePressure will make Agrify the number one source for the finest extraction solutions on the market in the cannabis and hemp industry."
On Dec. 8,
Tilray Inc (NASDAQ:TLRY) strengthened its position within the U.S. market and announced it acquired Colorado-based Breckenridge Distillery, which produces bourbon whiskey and other spirits, for an undisclosed amount. The move is part of TLRY's plan to leverage brands to launch THC-based products once cannabis becomes federally legal in the United States. Tilray stock jumped over 1% on the news. According to Schaeffer's Investment Research's Fernanda Horner, the brokerage bunch
remains skeptical of TLRY. Additionally, TLRY is seeing well-priced premiums at the moment.
*NEW CANNABIS STOCK ALERT* On Wednesday, Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) began trading on the Nasdaq Global Market. REFI is a cannabis-focused commercial real estate financing company and is expecting to raise $100 million through this initial public offering at $16 per share for 6.25 million shares.
*NEW CANNABIS STOCK ALERT* On Thursday, The Valens Company Inc. (NASDAQ:VLNS) began trading on the Nasdaq Capital Market. VLNS manufactures a variety of cannabis-centric products. The uplisting of VLNS to being trading on Nasdaq means the stock is now delisted from the OTCQX, but will continue to trade on the Toronto Stock Exchange.
Jupiter Wellness (NASDAQ:JUPW) announced a loan of $10.2 million to Next Frontier Pharmaceuticals, as part of a merger transaction. The merger is expected to be completed within the first quarter of 2022 and has been unanimously approved by the boards of both companies. According to Jupiter Wellness, "the deal also creates the leading platform for active pharmaceutical ingredient manufacturing based on synthetic cannabinoids and psychedelics."
India Globalization Capital, Inc. (NYSE:IGC) released preliminary results from its Phase 1 clinical trial focused on a THC medication designed to treat Alzheimer’s symptoms. ICG-AD1, the THC drug, is a cannabis-cased drug candidate feared toward treatment of the symptoms for those suffering from Alzheimer's. IGC closed for the day 4% higher following the news.