The Week In Cannabis: Corporate Turmoil, Mass Layoffs And Stocks In Red – Yahoo Finance
Tilray CEO Brendan Kennedy explained the move was part of a companywide restructuring focused on driving continued growth. “By reducing headcount and cost, Tilray will be better positioned to achieve profitability,” he said in a statement.
Aurora experienced an ever bigger shakeup, which included the retirement of its CEO Terry Booth, who will be replaced by interim CEO Michael Singer. Aurora also laid out a plan to increase the size of its board and a “business transformation plan” as it seeks to achieve positive EBITDA. These moves may signal an industry-wide issue, and an inevitable market correction. Read about it here.
Commenting on the new, Debra Borchardt, CEO of Green Marker Report, told Benzinga, “It was a rough week for the cannabis industry… While the Canadian markets continue to face headwinds, the U.S. market continues to heat up as Planet 13 in Las Vegas once again reported huge monthly sales.”
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In some good news, Illinois announced recreational cannabis sales hit $39.2 million in January, the first month of adult-use sales. Cantor Fitzgerald analyst Pablo Zuanic pointed out that 22% of sales, or $8.6 million, were to out-of-state residents. “This should lend further credence to the domino effect thesis: i.e., more neighboring states to follow,” the analyst said.
Meanwhile, the New Hampshire Senate approved the passage of a bill that could make it legal for medical cannabis patients and their caregivers to grow cannabis at home. The USDA announced “details of 2 risk management programs for hemp producers. Producers may apply for both programs now through March 16, 2020.”
Leafly came out with its annual jobs report, recounting 243,700 full-time-equivalent (FTE) jobs supported by the legal cannabis industry as of January of 2020. This number marks a 15% year-over-year increase in cannabis jobs. Check out details of the report here.
In Mexico, we saw the creation of the Mexican Council for Cannabis and Hemp, focused on promoting and regulating the use of medical cannabis, among other things. And, in Argentina, the governor for the province with the first medical cannabis license in the country promised the first batches of marijuana oils would be produced this year.
ETFs were once again in the red. Over the last five trading sessions:
- The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE:HMMJ) was down 5.07%.
- The ETFMG Alternative Harvest ETF (NYSE: MJ) lost 2.72%.
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) fell 2.84%.
- The Cannabis ETF (NYSE: THCX) slipped 3.29%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS) lost 2.46%.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 3.25%.
More News From The Week
“The partnership with Kiva Sales and Service is a recommitment to our dispensary partners and ultimately our customers to ensure consistent service and delivery of our products. Accessibility is a foundational pillar of the Old Pal brand and continuing to expand our availability throughout the state with a best in class partner like KSS allows us to deliver on that mission,” Rusty Wilenkin, CEO and co-founder of Old Pal, told Benzinga.
“Our January revenue numbers are a strong proof point for the network effect of our Phase II expansion, which includes our new restaurant, café, events center, and consumer-facing production facility,” Larry Scheffler, co-CEO of Planet 13, told Benzinga. “As we add additional attractions and store-in-store options we expect the cross promotion and improved customer experience to continue to drive traffic and ticket growth.”
In addition, three of the previous board members were re-elected for another term: Cody Bass, Khurshid Khoja, and Manndie Tingler.
Outgoing board members are: Board Chair A.C. Braddock, Jessica Billingsley, Alex Cooley, Steve DeAngelo, Sean McAllister, and Erich Pearson.
Christian Patiño boasts over 17 years of experience in the consumer-packaged goods industry, and previously worked with Red Bull, Johnson & Johnson, and Procter & Gamble where he gained experience transforming multiple brands and increasing their revenue. Joel Jay was previously a Senior Sales Manager and National Account Manager with Red Bull North America, and his expertise lies primarily in market development, broker management, distributor management, and key account management. He brings over 12 years of experience in the beverage industry to Day One. Blake Nyman, another industry veteran, has over eight years of experience building brands in the beverage, health and wellness space. Recently, he spent time with brands such as Alo Yoga, Generosity Water and Red Bull, spearheading various brand, marketing and strategic initiatives.
Commentin on his hire, Patiño told Benzinga, “We all believe in the benefits and potential that CBD will bring to the community, in addition to new jobs. All new brands and manufacturers should be focused on providing best-in-class products and experiences to consumers. That is what will define the new brand leaders in the upcoming years.”
“The process guarantees seed performance while bringing down the costs, and that will significantly impact margins for large and small-scale farming operations,” said Pickering, who notes that sustainable, consistent seed quality and pricing will be key to the future of the hemp and CBD industry.
“With our new CuraChews product, we can provide patients with alternative routes of administration allowing for expanded patient access and care,” said Olga Krueger, President at Curaleaf NY. “In the coming months, we will make additional formulations and flavors available so patients can continue to access their medications in easy-to-use doses and routes.”
Paul Pedersen, CEO of Nextleaf Solutions, told Benzinga “We are excited to have acquired this IP for the nano delivery of cannabinoids as this innovative technology allows Nextleaf to supply bulk distilled CBD and THC oils that our manufacturing partners can add as the base ingredient to their branded beverage and edible cannabis consumer products.”
Top Stories Of The Week
Check out the top stories on Benzinga Cannabis this week:
Check out these and many other cannabis stories on Benzinga.com/cannabis
The conference, which takes place at the Fontainebleau Miami Beach, creates an ideal setting for attendees to learn from the individuals and experts driving the cannabis space forward amid regulation, legalization and industry changes.
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