Two-thirds of Americans say the use of marijuana should be legal, reflecting a considerable surge over the past decade..
— Pew Research Fact Tank (@FactTank) November 14, 2019
GW Pharmaceuticals PLC (NASDAQ: GWPH) announced two of its medicines have been recommended by the U.K.’s National Institute for Health and Care Excellence to receive routine reimbursement from the National Health Service. Epidiolex, known as Epidyolex in Europe, and Sativex were approved by the NHS for the treatment of epilepsy and multiple sclerosis, respectively.
These were probably the most upbeat news items in the cannabis and hemp world this week.
The following companies disappointed analysts and investors with their quarterly results and/or guidance (see full coverage for all of these earnings reports in our Cannabis Earnings Portal):
- Canopy Growth Corp (NYSE: CGC)
- Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT)
- Medicine Man Technologies, Inc. (OTC: MDCL)
- GrowGeneration Corp. (OTC: GRWG)
- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON)
- Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI)
- Aleafia Health Inc. (OTC: ALEAF) (TSX: ALEF)
- MediPharm Labs Corp (OTC: MEDIF) (TSE: LABS)
- Tilray Inc (NASDAQ: TLRY)
- Acreage Holdings, Inc. (OTC: ACRGF) (CSE: ACRG)
- Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTC: CWBHF)
- Sundial Growers Inc. (NASDAQ: SNDL)
- Aurora Cannabis Inc (NYSE: ACB)
- Avicanna Inc. (TSX: AVCN) (OTC: AVCNF)
- Halo Labs Inc. (OTC: AGEEF)
- Canopy Rivers Inc. (TSX: RIV)(OTC: CNPOF)
“It was a huge week for earnings, but shareholders are losing patience with cannabis companies who keep promising that things are going to get better,” Debra Borchardt, CEO of Green Market Report, told Benzinga. “Most were caught off guard with the vape crisis and slow-moving licensing efforts in Canada, as well as the states, causing several big names to miss estimates. Expenses continue to remain elevated and losses are mounting. It feels like a season of Survivor.”
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Business Insider’s Jeremy Berke set out to find an answer of his own. He came to the conclusion that “Cannabis companies and investors overextended themselves, driven by exuberance around an emerging market with an attractive story. Most execs say these are temporary speed bumps in the quest to dominate a global industry worth hundreds of billions.”
Cannabis ETFs delivered big losses. Over the last five trading days:
• The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE:HMMJ) was down 17.06 percent.
• The ETFMG Alternative Harvest ETF (NYSE: MJ) lost 14.77 percent.
• The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) was down 11.95 percent.
• The Cannabis ETF (NYSE: THCX) tumbled 16.43 percent.
• The Amplify Seymour Cannabis ETF (NYSE: CNBS) lost 14.57 percent.
• The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 0.88 percent.
More News From The Week
Following Canopy’s earnings report, Bank of America reiterated a Neutral rating and $23 price objective, while Cantor Fitzgerald reiterated a Neutral rating with a price target of CA$27 ($20.36).
Helix TCS (OTC: HLIX) announced third-quarter results, showing strong organic earnings growth, record software sales numbers and improved cash from operations.
“Our Q3 results detail another quarter of strong operating results that show that we are achieving the most challenging of objectives: growing sales and market share while improving our cash from operations, and moving toward profitability, all with the absolute minimum in investor dilution due to fundraising. I believe that as the market matures and savvy investors seek a real value proposition in the space, we will continue to distinguish ourselves,” a company representative told Benzinga.
NUG opened a new flagship retail store in San Leandro, California. The brand’s first flagship store debuted in Sacramento in March. A key aspect of their latest location is that a percentage of NUG Wellness gross receipts will be donated to their non-profit partner, the Davis Street Family Resource Center.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) announced it has signed arrangements for up to CA$103 million ($77.6 million) in funding that consists of a sale-leaseback agreement for the Ancaster Energy Centre, a convertible equity note term sheet and a construction mortgage loan term sheet.
Vana, a compliant marketing platform for cannabis and CBD businesses, earlier this week announced a partnership with mainstream publishers such as BuzzFeed, Thrillist and USA Today. Certified cannabis brands and retailers will be allowed to legally advertise on mainstream media properties.
Israeli biotechnology company Can-Fite BioPharma Ltd. (NYSE: CANF) said its drug candidate Piclidenoson for the treatment of osteoarthritis in mammals has been granted Patent No. 10,265,337 from the U.S. Patent and Trademark Office.
Organic Payment Gateways, a CBD focused payment gateway provider, has joined the National Hemp Association in an effort to support the growing U.S. hemp and CBD industry.
According to Alex Roy, of Organic Payment Gateways, “Businesses, especially new ones, that sell hemp-derived products like CBD oil, skin lotions, creams, and tinctures, benefit substantially through the training and advocacy furnished with the aid of the National Hemp Association. We are proud to help support their efforts via our membership.”
Entheogenix Biosciences, jointly founded by ATAI Life Sciences and Cyclica, announced it will apply Cyclica’s proprietary AI-platform to design and synthesize novel compounds from psychoactive seed molecules (e.g., psilocybin). The company aims to expand access to emerging mental health therapeutics by first creating shorter acting psychedelics, which will help providers serve more patients, and then better understanding and potentially removing hallucinogenic effects entirely, which could allow those with otherwise disqualifying contraindications to access the benefits of psychoactive compounds.
“Early results around psilocybin and other compounds for mental health disorders have been extremely encouraging, but challenges around scaling persist,” said Florian Brand, CEO of ATAI Life Sciences. “This joint venture aims to bring the benefits of psychedelics to as many people as possible by applying computational biophysics and AI to mental health,” added Naheed Kurji, CEO of Cyclica.
Colombian cannabis ingredient company One World Pharma received one of the first THC quotas from the Colombian government. OWP is among the few companies that have received this permission which will allow One World to move into characterization and closer to commercialization.
“All the permissions are now in place for One World Pharma to begin to produce the ingredients to support our Cannabis Futures program,” said Brian Moore, President of One World Pharma. “Receiving this quota says a lot about our team and takes another step closer to our THC production in 2020.”
Wana Brands is partnering with Gofire to combine its distillate blends with Gofire’s SmartCartridge and patented inhaler. This technology enables precision dosing of Wana’s proprietary cannabis distillate.
“This partnership brings together the consistent cannabis experience consumers expect from Wana’s infused products with the Gofire technology that enables consumers to monitor and track their experience. I love the added control that consumers can tap into,” said Wana Brands CEO Nancy Whiteman.
The founder of Money 20/20 and HLTH, announced Growth, a new conference focused on cannabis, that will take place Sept. 21–24, 2020 at Wynn Las Vegas. The event will convene more than 2,000 senior leaders from inside and outside of the cannabis ecosystem to discuss, develop and shape the future of the cannabis industry.
Growth CEO Jake Skinner told Benzinga “many cannabis events today act as echo chambers, so we launched Growth as a platform for key decision makers in cannabis and mainstream businesses to come together to have real conversations, find solutions to industry issues and come up with new innovations.”
Growth raised $5 million in funding from a network of private investors to ensure the event is neutral and not just pay-to-play.
Mary Jane’s Medicinals is bringing it products to Oklahoma thanks to a partnership with Desert Extracts. This follows popular demand as more medical marijuana patients are registered in Oklahoma and cannabis topicals are an effective, yet minimally invasive and non-psychoactive treatment method.
“Topicals have been anecdotally shown to provide relief for everything from skin conditions to sore muscles and joints, and they are a great entry point for canna-curious medical marijuana patients who may be nervous about consuming,” said Dahlia Mertens, founder and CEO of Mary Jane’s Medicinals. “Desert Extracts is a trusted source for Oklahoma dispensaries, so they were the obvious choice to bring Mary Jane’s Medicinals to the Sooner State.”
Cannabolish announced a partnership with Lowell Café, to help it eliminate undesired smoke smells.
“We’re proud to partner with Lowell Cafe to provide an enjoyable experience for their customers and neighbors. As consumption businesses become more prevalent, we’re excited to use our patented formula to help similar establishments safely and effectively remove odors associated with cannabis smoke,” a company representative said.
Flower One announced a brand partnership agreement with Southern California cannabis brand 22Red. Founded by System Of A Down bassist Shavo Odadjian, 22Red has become known for its brand authenticity and proprietary genetics. This partnership…