Drake and Canopy Growth are no longer in business together to develop the artist’s More Life Growth Company.
A new report shows Drake is no longer working alongside Canopy Growth (NASDAQ:CGC,TSX:WEED) to build out a cannabis business.
Meanwhile, researchers in the US scored a victory this past week as federal authorities in the country lifted some rules regarding the use of cannabis for advanced research.
Keep reading to find out more cannabis highlights from the past five days.
Drake and Canopy Growth split up
According to a new filing first reported by BNN Bloomberg, two Canadian leaders are separating their business interests. Canopy Growth has cut ties with Drake’s More Life Growth Company.
A facility in Scarborough, Ontario, designed to help with the Drake partnership will now serve the Canadian firm as a research and development site, Canopy said.
The partnership was first revealed back in late 2019. On paper, the deal was initially sold as a business union in which Canopy would provide a facility and expertise, with Drake bringing a high profile for the new entity. Canopy has formed other celebrity endorsement and business partnerships in the past, most notably with Martha Stewart, who recently increased her duties.
“In many regards, at its essence, it’s almost a real estate play where More Life is going to do a lot of activity on cannabis destinations. I don’t know if that still fits anybody’s way of thinking, at least in the COVID world,” Canopy Growth CEO David Klein told BNN Bloomberg last year when speaking about the status of the business partnership with Drake.
It’s unclear what lies ahead for Drake’s cannabis business interests in Canada and abroad.
Aside from that, this past week Canopy Growth issued results for its fourth fiscal quarter and full 2021 year, reporting a net loss of C$700 million for the quarter. The losses continue to pile up for the Canadian producer, and these most recent results affected the firm’s share price again.
Obtuse research rules change in the US
Those conducting American research studies will no longer have to secure their cannabis from only one government facility that is allowed to grow the plant.
The US Drug Enforcement Administration is moving ahead with a chance to register new companies to grow and produce the plant for medical research. This change could help boost the number of cannabis studies and therefore the number of resulting discoveries on uses for the plant.
Dr. Steve Groff, founder and chairman of Groff North America, told NPR this decision will spark a “decade or more of explosive cannabis research and potential new therapies.” His company is one of the first new entities to receive an early stage approval to grow research cannabis.
Cannabis-based medicine has shown slow but meaningful progress as a key substance to combat chronic pain and other deficiencies. The most notable achievement for medical cannabis on a pharmaceutical level has been the US Food and Drug Administration’s approval of the Epidiolex product, a CBD-based drug developed by GW Pharmaceuticals (NASDAQ:GWPH).
Cannabis company news
- PharmaCielo (TSXV:PCLO,OTCQX:PCLOF)issued its financial report for Q1 period. “While we are still early in our growth curve, PharmaCielo is positioned to continue steadily building its revenue base, while leveraging higher volume more effectively through a more efficient cost structure,” Henning von Koss, CEO of PharmaCielo, told investors.
- Aurora Cannabis (NASDAQ:ACB,TSX:ACB)told shareholders it has completed a restructuring effort for its balance sheet. According to the company, after clearing its finances it now has a cash stance of C$430 million. “Delivering on this priority allows us the ability to operate the business and pursue growth opportunities unconstrained by our balance sheet,” said CEO Miguel Martin.
- Kiaro Holdings (TSXV:KO)completed the acquisition of Sculthorp SEO, an operator managing a retail space in Toronto and three separate ecommerce platforms, for a total prize of C$1.3 million split between C$850,000 worth of Kiaro common shares and C$500,000 in cash.
- 48North Cannabis (TSXV:NRTH)released its financial statement for the final period before it is acquired by HEXO (NASDAQ:HEXO,TSX:HEXO). “The combination with Hexo should deliver meaningful synergies that are beneficial to our shareholders, customers, partners, and stakeholders,” said Charles Vennat, CEO of 48North.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.