Welcome back to our weekly series, Schaeffer’s Cannabis Stock News Update, where we round up what happened in the world of marijuana stocks last week and take a look at how the cannabis industry will continue to shape in 2021. But before we whirl the industry around, check out our in-depth articles on sector savvy Sundial growers (SNDL), Tilray (TLRY) and Canopy growth (CGK).
Investor interest in the cannabis industry is growing explosively, and leading players continue to break legal barriers after legal barriers, particularly in the United States. By the end of 2020, more than 40 US states had legalized recreational and / or medical marijuana. Now more and more companies are seeing the opportunity in cannabis cultivation, marketing, distribution and technology.
Some US states, including Texas, Tennessee, New Hampshire, Nevada, Illinois, Connecticut, are making strides to pass laws to legalize cannabis. In Texas, Texas House approved a budget change to the Psychedelics Research Act, which it submitted to the governor’s president. HB 1802 requires the Department of State Health Services and the Texas Medical Board to investigate the medical benefits and effectiveness of psilocybin, MDMA, and ketamine in treating various mental disorders and other ailments. According to the draft law, the health department is expected to present the research results with recommendations for further legislative measures on December 1, 2022.
The Connecticut cannabis legalization move backed by Governor Ned Lamont has passed another committee that may open the doors for a vote in plenary next week, Marijuana Moment reported. After the Illinois House passed the cannabis equity bill last month, the Illinois Senate also approved it on Friday and sent it to the governor’s desk, Marijuana Moment reported. The Nevada Senate approved the law to legalize cannabis use lounges on May 31, 2021 with a 17-3 vote and sent it to the governor’s desk, Marijuana Moment reported. New Hampshire Governor Chris Sununu (R) signed a bill that would add to the list of qualifying conditions for the state’s medical cannabis program. Tennessee Governor Bill Lee signed a tight medical cannabis expansion bill, SB 118, into effect, NORML reports. The new law comes into force immediately.
Here’s a quick recap of this week’s top (and actionable!) Cannabis stock news:
Applied DNA Sciences, Inc. (NASDAQ: APDN), a leader in polymerase chain reaction (PCR) -based DNA manufacturing, announced June that its wholly owned subsidiary Applied DNA Clinical Labs has entered into a SafeCircle ™-bundled COVID-19 surveillance test contract with Camp Chateaugay, an overnight summer camp program for teenagers and children in the Adirondack Mountain area of New York.
Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) announced On June 3rd, ARNA received an MSCI ESG rating of “A”. MSCI ESG Research provides MSCI ESG ratings for global public and some private companies on a scale from AAA (leader) to CCC (laggard), depending on exposure to industry-specific ESG risks and the ability to manage these risks relative to competitors.
Aurora Cannabis Inc. (NASDAQ: ACB), the Canadian company that defines the future of cannabinoids worldwide, announced on June 1 that it completed the restructuring of its balance sheet. The second amended and reformulated credit facility, which matures on December 31, 2022 and consists of a term loan and revolver, has been repaid in full for approximately $ 89 million, including accrued interest, with no penalty and at Aurora’s discretion.
cbdMD, Inc. (NYSE: YCBD), announced June announced that its recently established subsidiary, cbdMD Therapeutics, has partnered with researchers from the Veterinary Program at Colorado State University (CSU) to study the effects of cbdMD’s patent-pending, proprietary cannabinoid blend on dogs with osteoarthritis.
FSD Pharma Inc. (NASDAQ: HUGE) announced the appointment of Mr. Adnan Bashir as an independent director on June 3, based on the recommendation of the Compensation, Nomination and Governance Committee of FSD Pharma.
HEXO Corp. (NYSE: HEXO) and Zenabis Global Inc. announced on June 1 that they entered into the previously announced agreement whereby HEXO acquired all of the issued and outstanding common shares of Zenabis under a proposed agreement under the Business Corporations Act.
Neptune Wellness Solutions Inc. (NASDAQ: NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose-driven lifestyle brands, announced On June 3, NEPT appointed Steve West as Vice President of Investor Relations to build a leading investor relations program for private and institutional investors.
Organigram Holdings Inc. (NASDAQ: OGI), a leading manufacturer of cannabis, announced the appointment of Megan McCrae as Senior Vice President of Marketing and Communications for Organigram on May 31st. Also OGI announced June that it is currently recruiting up to 75 positions in most functional areas of the company. Positions available at Organigram include Operations, Manufacturing, Hygiene, Cultivation, Sales, Marketing, Research, and Quality Assurance.
Canopy Growth Corporation (NASDAQ: CGC) released its financial results for the fourth quarter and full fiscal year 2021 on June 1st. Canopy Growth reported net sales of $ 148 million for the fourth quarter of fiscal 2021, an increase of 38% over the fourth quarter of fiscal 2020. CGC reported a net loss of $ 1.7 billion for the full fiscal year 2021, a loss of $ 283 million higher than that reported by Canopy Growth for the full fiscal year 2020 announced on June 3rd that she ended her relationship with Drake. Canopy Growth ended a joint venture with Drake’s More Life Growth Co. in March to sell cannabis in the Canadian and global markets.
Amazon.com (NASDAQ: AMZN) came in support of the Marihuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act) on June 2nd. Amazon announced that it would adjust its corporate drug testing policy for some of its employees and stop adding marijuana to its drug screening program for any positions not regulated by the Department of Transportation.
Tilray Inc. (NASDAQ: TLRY) and Sundial Growers Inc. (NASDAQ: SNDL) both recorded double-digit gains during the June trading session amid high levels of retail investor interest in the two Canadian cannabis companies. Tilray stock rose 11.9% and Sundial Growers stock rose 13% during Wednesday’s trading session after e-commerce giant Amazon announced it would support state marijuana legalization and marijuana testing requirements for some of his staff to drop.
Tilray Inc. (NASDAQ: TLRY) and Aphria completed their merger in early May after months of negotiations, resulting in the world’s largest cannabis company by sales. in the Expectation of TLRY’s financial report for the final quarter of fiscal 2021, Cantor Fitzgerald lowered its 12-month price target on Tilray stock from $ 30.25 to $ 22 on June 3, an overweight position.