The Week In Cannabis: Stocks Fall On Poor Earnings, More Americans Support Legalization – Yahoo Finance
Two-thirds of Americans say the use of marijuana should be legal, reflecting a considerable surge over the past decade..
These were probably the most upbeat news items in the cannabis and hemp world this week.
“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:
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).
“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.
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.”
“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.
“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.”
“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.
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.
“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.”
“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 takes great pride in joining forces with 22Red to help introduce and grow their authentic brand in Nevada. We’re looking forward to utilizing our state-of-the-art facility to produce 22Red’s innovative line of products,” said 22Red’s Kellen O’Keefe.
“The achievement of the self-affirmed GRAS status is something we are celebrating tremendously here at Balanced Health Botanicals,” said CEO Chase Terwilliger. “As a company founded on providing the highest-quality hemp-derived CBD products to the masses, this achievement further validates our commitment to our mission and the safety of our products. For consumers, it’s important to note that CBD companies that have achieved GRAS affirmation have met in-depth, rigorous third-party testing and expert panel review to ensure they are producing the safest products.”
Check out the top stories on Benzinga Cannabis this week:
- How To Tell If Your Vape Cartridge Is Safe And Not Counterfeit (Updated)
- Clark University Offers Tuition-Free Cannabis Graduate Certificate For Government Employees
- Grassroots Cannabis CEO Joins Fyllo’s Board
- HUB International’s Cannabis Insurance And Risk Services Vertical Gets New Chief Sales Officer
- A California Police Chief And Green Flower Collaborate On Cannabis Education Course For Law Enforcement
- New Cannabis Products: Sugar Sticks, Cool Beverages, Hemp Gummies, Mini Pre-Rolls
- HEMPLE, They Call Her Alfie Launch New CBD Love Gel: ‘We Have A Whole Lot Of Endocannabinoid Receptors In Our Sexual Tissue’
- Vaping-Related Lung Disease And Vitamin E Acetate: What You Should Know
- Is It Cannabis Or Marijuana? The Public Doesn’t Care, New Study Shows
- Cannabis Basics: What Is THCA And What Can It Do For You?
- A Few Notable Winners From The Canadian Cannabis Awards
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