5 Cannabis Stocks to Watch Alongside MORE Act Momentum

Tilray lit up the charts last week after a surprise earnings beat

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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 at how the cannabis industry is shaping up as we kick off 2022.

As we have seen before as recently as November of 2021, cannabis stocks are floating higher on cannabis legalization movement in Washington, D.C. However, what happened back in November seems to likely recur now: no tangible progress on federal cannabis legalization. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act made its way through the U.S. House of Representatives by a vote of 220-204. Cannabis legalization reform has cleared the House of Representatives again and is on the table for a vote in the Senate now.

In addition, here is a quick summary of the major (and action-worthy!) cannabis stock news from last week:

For an in-depth look at Canadian cannabis trailblazer Tilray (NASDAQ:TLRY) stock's major boost off of earnings delivered on Tuesday, click here.

Manitoba Harvest, a wholly-owned subsidiary of TLRY, announced the launch two new hemp-based products at Whole Foods Markets, wholly owned by Amazon.com (NASDAQ:AMZN), nationwide on Wednesday. The two new products, Hemp+ Matcha and Hemp+ Supergreens powders will be available for purchase this month.

On Tuesday, InterCure Ltd. (NASDAQ:INCR) released record-breaking results for the fourth quarter of 2021. The record-breaking revenue of $33 million CAD ended up being three times higher than its year-over-year counterpart in 2020.  Q4 of 2021 marked INCR's sixth consecutive quarter of positive operational cash flow and INCR's eighth consecutive quarter of double-digit year-over-year growth. To round it out, InterCure delivered more than one ton of medical cannabis product and effectively delivered 30% of Israel's total medical cannabis for the quarter.

News broke on Wednesday that, upon the launch of PepsiCo, Inc's (NASDAQ:PEP) new Rockstar drink infused with hemp, the U.S. Naval War College’s (NWC) Drug and Alcohol Program Advisor to send out a notice members of the U.S. Navy. According to the advisory, "Rockstar Energy now produces ‘Rockstar Unplugged, a newer energy drink infused with hemp seed oil that will cause you and your Sailors to pop-positive on drug tests.” Additionally, "Sailors and Marines are prohibited from using any product made or derived from hemp, including CBD, regardless of the product’s THC concentration, claimed or actual, and regardless of whether such product may lawfully be bought, sold, and used under the law applicable to civilians. Please be mindful of the food / beverages you consume.” While hemp is legal in the United States, the military's position is that consumption of these potentially mislabeled products could cause service members to test positive for THC until there is definitive regulation by the FDA.

Agrify Corporation (NASDAQ:AGFY) announced a new partnership with Greenlight Cannabis on Wednesday with the assignment of providing premium grow solutions for Greenlight’s cultivation facilities. As part of the partnership agreement, AGFY will install Vertical Farming Units (VFUs) at Greenlight cultivation facilities. Once operational, both parties expect to expand upon this agreement as Greenlight expands. 

The freshly acquired JustCBD brand under the Flora Growth Corp. (NASDAQ:FLGC) umbrella announced the signing of a distribution agreement to sell JustCBD products in U.S. airports on Thursday. The CBD products willl be distributed through OTG Management, a major operator in airport restaurants and stores. According to Flora Growth, “Airport retail sales represent a billion-dollar business and we’re proud to have our JustCBD brand be accepted as one of the first world-class CBD lines of product to be distributed in US airports."

 
 

We have featured a few interviews with cannabis industry insiders lately, including actionable outlook on Q2 of 2022 and specific areas of opportunity within the pot industry. Be sure to check them out:

 

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