NEPT launched brand new cannabis pre-roll products in Canada
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 as we round out 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 last week:
Bright and early on Monday morning, Neptune Wellness Solutions Inc. (NASDAQ:NEPT) confirmed the Canada-exclusive launch of Mood Ring’s latest cannabis pre-roll product in January. With the launch of these pre-roll products, NEPT officially offers products in every major cannabis product category. According to Neptune, “With sales up almost 200% year over year, pre-rolls have become a top three best-selling product category in Ontario as consumers increasingly seek them out for their accessibility and convenience.”
The shares of Canopy Growth Corp (NASDAQ:CGC) were down 5.8% on Monday morning, after Piper Sandler downgraded CGC to “underweight” from “neutral.” The firm also slashed is price target to $7 from $11, with Piper Sandler specifically noting a number of sales trends under pressure within Canopy Growth’s businesses.
InMed Pharmaceuticals (NASDAQ:INM) conducted its general meeting last week which ended with the approval of the election of all board of director nominees. In more interesting news, INM announced on Monday that a peer-reviewed journal article that had been published focusing on glaucoma treatment options through the usage of cannabinol.
Later in the day on Dec. 20, cbdMD, Inc. (NASDAQ:YCBD) released its fourth quarter and fiscal year of 2021 financial results. Of note, YCBD broke its net sales record after producing $44.5 million in fiscal 2021. While a number of cannabis industry companies struggled for movement, cbdMD outpaced industry averages.
The Valens Company Inc. (NASDAQ:VLNS) announced that the completion of two partnership agreements with PMI Mexico. PMI Mexico is one of the largest Mexican government drug suppliers and, as part of these agreements, VLNS will provide both CBD oil and prebiotic products to PMI. Valens’ CBD products will support ongoing pharmacokinetic stage medical trials and Valens will also create and distribute CBD-infused an uninfused products in Mexico. According to VLNS, “The relationship we have built with PMI Mexico marks an important milestone for Valens’ international expansion and the beginning of our Central and Latin America strategy. This agreement diversifies our global strategy and increases our revenue streams through creative, non-traditional strategies that separate us from our peers.”
Later in the week, The Valens Company Inc. signed a partnership on Wednesday with Montreal Cannabis Médical Inc. with the goal of providing the manufacturing and extraction services for MTL’s pre-rolls and vapes. The contract should launch by the end of Q1 next year.
On Tuesday, Organigram Holdings Inc. (NASDAQ:OGI) confirmed its acquisition of Laurentian Organic Inc for a total of $36 million in a deal geared toward further solidifying OGI’s place in the Canadian cannabis market. The deal will expand Organigram’s portfolio to include premium hash and craft cannabis product lines. Betting on signficant growth in the hs industry, OGI expects rapid growth in Canada for these newly acquired products.
As Tilray (NASDAQ:TLRY) continued its mission to be ready to roll in the United States upon federal legalization, TLRY announced the acquisition of both Green Flash Brewing and Alpine Beer Co. on Tuesday. This comes just weeks after Tilray acquired Breckenridge Distillery. The plan behind these alcoholic beverage acquisitions is to focus on scaling these brands that could increase potential cannabis product distribution upon federal legalization.
*NEW CANNABIS STOCK ALERT* On Wednesday, BAD ETF (NYSE:BAD) began trading on the New York Stock Exchange. Launched by The BAD Investment Company, this exchange-traded fund is an index focused on gambling, alcohol and cannabis stocks. According to the founder of the BAD Investment Company, “We don’t think social stigma should be a primary factor when it comes to deciding what’s a good investment.”