One of Canada's big-name cannabis producers no longer qualifies for a benchmark stock index, a sign of the decline in value the overall industry has seen.
Shares of Canopy Growth (NASDAQ:CGC,TSX:WEED) were dropped from a benchmark index in Canada, reflecting the company's poor performance in the stock market.
Also this week, a beverage manufacturer that plans to bet heavily on the cannabis industry began to set the stage for its entry with its most recent quarterly report.
Keep reading to find out more cannabis highlights from the past five days.
S&P/TSX 60 Index takes WEED off the list
The move comes as part of a scheduled quarterly review from the overseer of the index, S&P Dow Jones Indices
Canopy was originally added to the index in April 2019. At the time, the company called the addition a “major accomplishment." Since then, Canopy shares have declined in value by nearly 90 percent. The company was trading at C$56.31 when it was first added, and was at just C$8.18 as of this Thursday's (March 10) close.
Jones Soda nears launch of cannabis beverage business
Jones Soda is pursuing the development of THC- and CBD-infused beverages, and plans to leverage its drink-making experience and promotion of novel beverages. As part of its report, the firm indicates that it incurred US$0.4 million in cannabis-related business expenses as it sets up for its official launch.
“Additionally, we are planning to launch our cannabis portfolio by the end of Q1 and expect it will be an immediate hit with consumers as we leverage the strength and community of the Jones Soda brand,” Mark Murray, president and CEO of Jones Soda, said in a statement.
The firm recently listed its shares on the Canadian Securities Exchange in alignment with its cannabis intentions and as a way to “increase the liquidity of our shares and appeal to a broader investor base.”
Jones Soda reported a net loss for the Q4 period of US$1.3 million, which the firm said was due to its cannabis business expenses. For the year, the company reported a US$1.8 million net loss, an improvement from the US$3 million reported during the previous period.
Shares of the company have jumped since releasing its financial report. As of 10:50 a.m. EST on Friday (March 11), Jones Soda was up 21.43 percent in value for a price point of C$0.85 per share in Canada.
Cannabis company news
- Acreage Holdings (CSE:ACRG.A.U,OTCQX ACRHF) issued its Q4 and full-year financial results for investors. The company reported a net loss of US$35.6 million for the quarter and US$47 million for all of 2021. Revenue for the company jumped 65 percent for the entire year to reach a line of US$188.9 million. “We have accomplished many key priorities in a short period and are well-positioned to build on this momentum throughout 2022,” Acreage CEO Peter Caldini said.
- Tetra Bio-Pharma (TSX:TBP,OTCQB:TBPMF) received Health Canada approval for a proposed amendment of a Phase I study on the cognitive, behavioral and biological effects of CBD on adults.
- TerrAscend (CSE:TER,OTCQX:TRSSF) completed its acquisition of Gage Growth (CSE:GAGE,OTCQX:GAEGF). "I believe the combination of TerrAscend and Gage has created one of the most compelling and differentiated operators in the North American cannabis industry," Jason Wild, executive chairman of TerrAscend, said.
- Village Farms International (NASDAQ:VFF) announced its cannabis producer subsidiary Pure Sunfarms secured an official EU GMP certification from the District Government of Dusseldorf, Germany. The approval was given to the producer’s facility in Delta, BC. "In addition to the expected near-term growth from this expansion, we believe existing medical markets in the EU, and elsewhere, are a pathway to participating in much larger legal recreational cannabis opportunities as these markets develop," President and CEO Michael A. DeGiglio said.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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