Clever Leaves expands footprint in both Germany and Australia 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 at how the cannabis industry is evolving as we make our way through 2022.
The world of cannabis saw massive growth in 2021 and 18 states plus D.C. officially legalized the adult-use of cannabis by the end of the year. Thirty-one states plus D.C. had taken decriminalization measures regarding cannabis by the end of 2021. As of late 2021, marijuana is classified at the U.S. federal level as a Schedule I substance under the Controlled Substances Act. In other words, cultivating, distributing, and possessing cannabis remains illegal at the federal level.
In addition, here is a quick summary of the major (and action-worthy!) cannabis stock news from this week:
Clever Leaves Holdings Inc. (NASDAQ:CLVR) announced on Valentine's Day that it will be expanding its footprint in Australia through a two-year agreement with Cannatrek Ltd. Per this agreement, CLVR will provide a strain of high-THC flower to be distributed by Cannatrek to the Australian medical marijuana market. Cannatrek will spend a minimum of $3.6 million with CLVR under this agreement.
Clever Leaves also announced that its pharmaceutical-grade cannabinoid extracts will be available soon in Germany through CLVR's agreement with Ethypharm GmbH. According to Cleve Leaves, “Partnering with a pharmaceutical leader like Ethypharm enhances our distribution by aligning with an organization which specializes and excels at the marketing and distribution of prescribed pharmaceutical products in Germany”.
Northern Lights Acquisition Corp. (NASDAQ:NLIT), a cannabis-centric special purpose acquisition corporation entered into a merger agreement with SHF, LLC dba Safe Harbor Financial. NLIT will acquire Safe Harbor for a total of over $185 million through this transaction. According to Northern Lights, "Safe Harbor is the most compelling investment opportunity we have encountered in the cannabis industry as both operators and investors. Safe Harbor is one of the only multi-state financial service organizations to successfully navigate the highly regulated cannabis banking industry, providing services that operators in other industries take for granted."
On Wednesday, InterCure Ltd. (NASDAQ:INCR), aka Canndoc, signed an agreement to acquire Cann Pharmaceutical Ltd., aka Better for a total price of $35 million. According to INCR, "InterCure and Better's combined business operations are expected to create a new force in the international cannabis industry that will further accelerate our global expansion plans and opportunities and the consolidation process."
GrowGeneration (NASDAQ:GRWG) confirmed its selected Manhattan Active Point of Sale product Manhattan Associates Inc. (NASDAQ:MANH) in an effort to further its growth and improve the customer shopping experience. According to GRWG, “In selecting a point of sale system, it was critical we find an agile solution that could scale with our business while also providing excellent customer experience. Manhattan Active Point of Sale’s cloud infrastructure greatly improves scalability and gives our team a single tool for managing all customer interactions and needs across the customer buying journey.”
Flora Growth Corp. (NASDAQ:FLGC) signed a sales agreement with Artos Ltd. on Wednesday as part of its plan to sell 3,600 kg of cannabis flower to Israel. This new partnership is geared toward expanding Flora Growth's product offerings in the Israeli cannabis market. According to FLGC, “With Artos’ extensive distribution network, this agreement will ensure that safe, high-quality cannabis products are provided to the Israeli cannabis market and offer a valuable source of health and wellness products to the country.”
On Thursday, cbdMD, Inc. (NASDAQ:YCBD) received approval of its Novel Food application from the UK's Food Standards Agency for its submitted CBD formulation. With this validation, cbdMD can now legally sell tinctures, gummies, and capsules throughout the UK. According to YCBD, "This FSA validation certifies what we've known all along, our products are safe. In a time when the world needs products that complement everyday health and wellness, our natural products matter and resonate with consumers worldwide."
Tilray Brands, Inc. (NASDAQ:TLRY) completed its first sale of medical marijuana in Malta via its new Tilray Medical division on Feb. 17. The new medical cannabis product is now available throughout Malta in pharmacies that provide medical marijuana to patients. According to TLRY, "As demand for cannabis continues to grow across Europe, we're incredibly proud to partner with established and reliable distribution partners to supply new markets with high-quality medical cannabis which patients can rely on."
On Friday, High Tide Inc. (NASDAQ:HITI) announced its 111th retail location opening and its 60th retail location opening in Alberta. The latest Canna Cabana store that sells retail cannabis products will open for business on Saturday, February 19.
Cronos Group Inc. (NASDAQ:CRON) released its delayed third quarter of fiscal 2021 earnings early on Friday. The major highlight was an increase of $9 million in net revenue compared to the same quarter of 2020, bringing Q3's net revenue up to $20.4 million. CRON attributes the growth to increases in recreational cannabis market in Canada, increases in medical marijuana market in Israel, and increases in U.S. sales. As part of this press release, Cronos Group announced and detailed the launch of a brand realignment
Cannabis stock earnings report dates that were announced this week:
GrowGeneration Corp. (NASDAQ:GRWG) will release fourth quarter and full year of 2021 financial results on March 1 after the market closes. The announcement will be promptly followed by a conference call.
Evogene Ltd. (NASDAQ:EVGN) will release fourth quarter and full year of 2021 financial results on March 10 before the market opens. The announcement will be promptly followed by a conference call.