Weed Stocks This Week: Major Earnings Blitz

The overall cannabis sector is down approximately 65% year-over-year

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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 this week, and look ahead to how the cannabis industry will continue to develop in 2022.

Here is a quick roundup of major cannabis stock news this week:

At this time, the ETFMG Alternative Harvest ETF (MJ), a fund tracking the cannabis industry, has lost 65% of its value over the past 12 months, but is up nearly 8% in the past 30 days.

India Globalization Capital, Inc. (NYSE:IGC), a biopharmaceutical company focused on proprietary cannabinoid-based therapies for end-of-life care and chronic neurological and cancer-related diagnoses, announced revenue for its fiscal first quarter. Featured in this report was a massive 175% increase in revenue year-over-year. Also of note, gross profit increased 446% in that time frame. IGC stock is down 45% so far in 2022.

Agrify Corp (NASDAQ:AGFY), a major player in the advanced cultivation and extraction solutions for the cannabis industry, released a preliminary second-quarter financial report. Agrify's leadership team withdrew its prior revenue guidance for 2022. However, AGFY's revenue is also expected to have increased 63% year-over-year. Agrify stock is down 95% year-over-year, losing 16% just over the past 30 days.

Cronos Group Inc (NASDAQ:CRON), an international cannabinoid company, also released second-quarter financial results. The report featured a $19.9 million year-over-year jump in gross profit, while net revenue increased $7.4 million. The company noted it is focusing on "what we know will drive differentiation: product development and long-term focused innovation." CRON is still down 7% year-to-date.

Village Farms International Inc (NASDAQ:VFF) announced its financial results for the second quarter, featuring an 18% increase in sales year-over-year. Village Farms stock is down 58% in 2022.

Chicago Atlantic Real Estate Fin Inc (NASDAQ:REFI), a commercial real estate company active in the cannabis space, stepped into the earnings confessional to post second-quarter financial results. The report featured a slight year-over-year drop in net income to $7.5 million. However, the company hiked its dividends by roughly 20%. In a press release, REFI noted the cannabis market fundamentals "continue to demonstrate that our strategy of lending to borrowers in limited-license states primarily with vertically integrated operations has created a strong investment platform and a very valuable loan portfolio.” Year-over-year, the security is down 6%.

Akanda Corp (NASDAQ:AKAN) announced the signing of a long-term supply agreement with Cansativa GmbH, in which Akanda will supply two strains of EU-GMP quality THC flower from its Portuguese operations. Through the Cansativa platform, this flower will then be distributed and sold to all medical marijuana pharmacies in Germany. Shipments are expected to commence by the fourth quarter, with the company adding this is "one the largest supply agreements in the nascent European medical cannabis industry." AKAN is down 90% year-to-date, but has recovered nearly 15% in the past month.

WM Technology Inc (NASDAQ:MAPS), the owner of Weedmaps, announced second-quarter results as well, including a 24% revenue jump year-over-year. MAPS launched Weedmaps for Business, too, with the company saying "Weedmaps was established 14 years ago with the goal of making cannabis more accessible, and a large part of that is ensuring that cannabis businesses can effectively reach customers using data-driven marketing and operational strategies." WM Technology stock is down 56% so far in 2022. 

Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), a developer of transdermal cannabinoid therapies, featured a net loss of $9.9 million in its second-quarter financial results. According to ZYNE, “during the second quarter, we were pleased to announce positive topline results from our phase 2 trial of Zygel in patients with 22q. In addition to further progressing 22q, we are focused on completing the phase 3 RECONNECT trial for children and adolescents with fragile X syndrome," Zynerba stock is up 15% in the past month, despite being down 57% year-to-date.

Akerna Corp (NASDAQ:KERN), a major software provider in the cannabis space, released unaudited financial results. The report featured a 24% jump in revenue year-over-year, as well as a 42% increase in gross profit. Per KERN, “while client demand has been mixed thus far in 2022, and with softer sales and bookings in particular during the second quarter throughout the sector, we believe we are on pace for a year of solid growth in 2022, compared with last year.” Akerna stock has fallen 95% year-over-year.

Greenlane Holdings Inc (NASDAQ:GNLN), provider of a platform to develop and distribute marijuana accessories, announced this week it closed on a $15 million asset-based loan. According to GNLN, "we are excited to secure this accreditive credit facility at a pivotal time for Greenlane and our industry. We continue to make great progress on our strategic shift to a consumer house-of-brands business while remaining uniquely positioned as a key supplier to many facets of the burgeoning cannabis ecosystem.” Greenlane stock is down over 80% so far in 2022.

Leafly Holdings Inc (NASDAQ:LFLY), a major cannabis-centric website focused on education, announced a year-over-year revenue increase of nearly 14% in the second quarter. A key point in the report was to confirm 100% of legal marijuana dispensaries in the state of New Jersey were utilizing its platform by the end of the quarter. LFLY is off 49% in the past 30 days.

 

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