The Investing News Network rounds up some of the biggest company and market news in the cannabis market for the past trading week.
During the past trading week (September 9 to 13), a Canadian producer missed on its previous earnings guidance, leading to a significant drop off in its shares.
Comments from a former US federal regulator made headlines, while new developments in the hotly competitive cannabis-infused beverage market caught attention.
Here’s a closer look at some of the biggest news during last week’s trading period.
Aurora misses the mark for earnings report, stock takes a hit
While the company posted a net revenue of C$98.9 million for its most recent quarter, Aurora had originally projected its net revenues between C$100 million and C$107 million.
The miss led to a sharp slash in value for shares of the Canadian marijuana producer. Over the past week of trading, the value for Aurora in New York dropped over 5 percent per share, as of 12:30 p.m. EDT on Friday (September 13).
Additionally, as part of its earnings call, the company expressed a bullish sentiment for its entry into the US market, which it is doing by way of the production of hemp-derived cannabidiol (CBD) products.
Ex-FDA leader speaks on need for marijuana regulation
Scott Gottlieb, former head of the Food and Drug Administration (FDA), wrote about his call to action for federal regulators regarding marijuana laws.
The former FDA leader wrote an opinion piece in the Washington Post, outlining the conflict between the need for regulation on e-cigarette use accompanied by the sales of cannabis compound cartridges. In his piece Gottlieb wrote:
Bright lines must be drawn between less-harmful ingredients and those that cause undue risk. That would arm regulators with the information to crack down on illegal and dangerous vape juices. It’s also time to end the political ambivalence that allows THC and CBD to evade oversight.
Gottlieb wrote the threat of e-cigarette use for minors has been compounded since these products are used for consuming THC and CBD.
Cannabis-infused beverages race sees new entries
This past week, The Alkaline Water Company (NASDAQ:WTER,TSXV:WTER) and Valens GroWorks (TSXV:VGW,OTCQX:VGWCF) made significant strides in the development of new beverages designed to be sold in Canada.
The Canadian market will see the legalization of edibles and infused products on October 17. Sales, however, will not officially start until mid-December.
Richard Wright, CEO of Alkaline, told the Investing News Network (INN) the company plans to offer a line of products designed for the health and wellness market in the US. The line of beverages will be hemp-derived CBD-infused beverage shots for energy, workout recovery, relaxation and sleep.
“We pick niches where we think that the rest of the world is going to be promoting,” Wright said. These new products will be created by way of a merger with AQUAhydrate, a California-based premium bottled water firm, in an all-stock transaction.
Meanwhile, Valens formed a new agreement with the cannabis division of Canadian beverage maker Iconic Brewing to develop, market and sell at least 2.5 million produced cannabis beverages over the next five years.
“Coupled with Valens’ proprietary emulsion solution, SōRSE Technology, we are excited to deliver on our promise of developing one of the world’s most sought-after cannabis infused beverage lines,” Cole Miller, cannabis research director at Iconic Brewing, said in a statement.
The two Canadian firms offered a mockup for two drink products, a THC sparkling water and a CBD iced tea.
Pure Sunfarms, the cannabis producing joint venture of Village Farms International (NASDAQ:VFF,TSX:VFF), obtained a license amendment allowing it to start selling branded dried cannabis directly to provincial distributors and private retailers.
Pure Sunfarms holds supply deals with the Ontario Cannabis Store and the British Columbia Liquor Distribution Branch.
“And we look forward to Pure Sunfarms quickly expanding distribution into additional provinces as it moves toward doubling its production capacity to a minimum of 150,000 kilograms annually next year,” Michael DeGiglio, CEO of Village Farms International, said in a statement.
“We believe that graduating to the TSX will improve awareness about Canopy Rivers and enhance liquidity for our shareholders and other market participants,” Narbe Alexandrian, president and CEO of Canopy Rivers, said in a statement.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Valens GroWorks is a client of the Investing News Network. This article is not paid-for content.