During the past trading week (August 5 to 9), Canadian cannabis producer Cronos Group (NASDAQ:CRON,TSX:CRON) suffered in the stock market after it provided predictions for its spending in the second half of 2019.
New senior listings from cannabis companies in Canada made headlines, while the latest developments from partnerships between beverage makers and cannabis companies also caught attention.
Here’s a closer look at some of the biggest news during last week’s trading period.
Established beverage brands make cannabis deals
The collaboration will go beyond drinks as AriZona Beverages will invest up to US$10 million into Dixie in subordinate voting shares at a cost of US$0.59 per share over two years. The initial agreement is set to last three years with the option for two extra sets of two years for renewal.
“The Cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products,” Don Vultaggio, chairman of AriZona Beverages, said in a press release. Vultaggio added that the beverage maker picked Dixie after spending time building a relationship with its management team.
Another beverage deal that caught the attention of the market was that of HeavenlyRx securing a stake in Seattle-based craft soda maker Jones Soda (OTCQB:JSDA). In an exclusive interview with the Investing News Network (INN), Paul Norman, CEO of HeavenlyRx, said the company is planning to revive the appeal of the Jones Soda brand with the announced development of cannabidiol (CBD) drinks.
“Job one is to … bring some new energy to the core, rebellious Jones brand that everybody knows,” Norman told INN. “Job two is to bring a twist to the brand by making a range of CBD-infused products.”
HeavenlyRx is a subsidiary of SOL Global (CSE:SOL,OTC Pink:SOLCF), but has plans of its own for a future public listing.
“The desire is there and there’s a lot of effort going into the process of taking the company public as soon as we can and as soon as it makes sense,” Norman said.
Cronos projects higher spending and losses
Shares of Cronos Group took a hit when it issued its financial report for Q2 and the first half of the year on Thursday (August 8) . Cronos is projecting future losses due to its spending practices.
The cannabis firm indicated net revenue for the quarter of C$10.2 million. However, Cronos reported a loss in earnings before interest, taxes, depreciation and amortization (EBITDA) of C$17.8 million.
Cronos is projecting higher spending for the second half of the year, compared to its spending of US$28.5 million during the first half of 2019, according to a Reuters report.
“As we continue to invest in our business, our brand, and (research and development) initiatives, we believe our adjusted EBITDA loss will increase in the second half of the year compared to the first half,” Jerry Barbato, CFO of Cronos, said in a call with analysts, according to a report from Yahoo Finance.
Following the results on Thursday, Cronos slid on the NASDAQ and the Toronto Stock Exchange (TSX) to close at US$13.89 and C$18.40, respectively.
Senior listings coming for various cannabis players
This past week, a collection of marijuana companies informed investors of their intentions to obtain more senior listings on exchanges in Canada and the US.
“This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand,” Brian Athaide, CEO of TGOD, said in a press release.
John Arbuthnot, CEO of Delta 9, explained that the senior listing will help the growth of the company, saying: “This eventual listing on the TSX will help to increase trading liquidity, provide access a growing investor base interested in the cannabis industry, and raise capital for further investments.”
Cannabis market updates
Aurora is expecting to see revenue of C$100 million to C$107 million for Q4. The company also projects net revenue for its fiscal year of between C$249 million and C$256 million.
Planet 13 Holdings (CSE:PLTH,OTCQX:PLNHF) updated investors on the performance of its Las Vegas, Nevada, superstore. For the month of July, the store reported an average of 1,937 customers a day, with an average ticket price worth approximately US$90.
“In May we reached an impressive milestone, the SuperStore accounted for 10 percent of all dispensary sales in Nevada,” Larry Scheffler, co-CEO of Planet 13, said in a press release. “I’m optimistic we will see this trend continue once the department of taxation releases June and July numbers.”
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.
Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ retail stores, today announced that its executive team will participate in the following conference in March 2021:
Needham 2 nd Annual Virtual Cannabis Conference, March 3, 2021: Management will participate in one-on-one meetings.
Meanwhile, two longstanding cannabis partners ended their relationship.
Trulieve to donate $20,000 in scholarship funding and $15,000 to support leadership development
Trulieve Cannabis Corp . (CSE: TRUL) (OTC: TCNNF), a leading and top-performing cannabis company in the United States today announced a new partnership with the Thurgood Marshall College Fund (TMCF), the nation’s largest organization exclusively representing the Black College Community. Trulieve will donate $20,000 to help fund several college scholarships awarded to students who are attending one of the organization’s member-schools as part of Trulieve’s diversity, equity, and inclusion initiatives. The $15,000 in talent funding is earmarked to support TMCF’s internship program, reaching a diverse talent pool of students and alumni from their 47 member-schools to provide immersive experiences at Trulieve.
The new dispensary expands patient access to Florida’s largest inventory of medical cannabis products
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 80th nationwide. The new location marks the Company’s first in Tamarac and third in Broward County expanding patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.
Revive Therapeutics Provides Update on FDA Phase 3 Clinical Trial for Bucillamine in COVID-19 with Planned Completion and Emergency Use Authorization Request
Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce an update on the Company’s U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild to moderate COVID-19.
With its recent $23 million dollar financing, the Company plans to aggressively expand from 14 clinical sites to up to 50 clinical sites to meet the next enrollment goals for the Study in Q2-2020. The Study is a randomized, double-blinded, placebo-controlled trial and the safety and efficacy data analyzed at each interim analysis timepoint of 210, 400, 600 and 800 completed patients are only made available to the Independent Data and Safety Monitoring Board (“DSMB”) for review and recommendations on continuation, stopping or changes to the conduct of the Study. In the event of any serious safety concerns, the DSMB would be notified to determine any risks and provide its recommendations. To date, in this initial 210 interim point there have been no serious safety concerns that required the DSMB to be notified.