During the past trading week (September 30 to October 4), a technology payment company announced it would begin making its popular services available to the US cannabidiol (CBD) market.
Also making headlines was the latest acquisition from a Canadian cannabis giant, as well as the way the Canadian marijuana industry is impacting the overall gross domestic product (GDP) of the country.
Here’s a closer look at some of the biggest cannabis news over the last week.
Novelty payment platform adopts cannabis stance
Last Thursday (October 4), Square began accepting cannabis business in the US by way of payment services, payment tracking and inventory management.
A report from Bloomberg indicated the technology company is only making these services available to operations selling CBD products.
“We saw this as an opportunity to make our tools available to (CBD) sellers,” Square said.
Canopy makes sports brand acquisition
The Canadian marijuana firm did not disclose the specifics of the transaction but did indicate it represented an all cash deal. After it’s completed, Canopy Growth will own 72 percent of the sports company. BioSteel holds endorsement deals with Dallas Cowboys running back Ezekiel Elliott, Connor McDavid of the Edmonton Oilers, Canadian pro golfer Eugenie Bouchard and National Hockey League (NHL) hall-of-famer Wayne Gretzky.
“We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business,” Canopy Growth CEO Mark Zekulin said.
In related Canopy Growth news, its biggest shareholder, alcohol maker Constellation Brands (NYSE:STZ), issued its latest earnings report and shifted its sentiment on the cannabis investment. The firm expressed excitement for the upcoming launch of edible and infused products in Canada.
“Overall, we’re pleased with the progress of the Canopy team and what they have done in the last few months,” Bill Newlands, CEO of Constellation Brands, told analysts and investors during a quarterly call, according to a report from Canadian Press.
However, the results from Constellation Brands took a hit due to Canopy Growth’s recent performance. The beer maker recognized a US$839 million loss in fair value of its investment of the Canadian firm.
On Monday (September 30), the Bank of New York Mellon (BNY Mellon) confirmed it would soon stop accepting positions or trading activities from investors regarding marijuana stocks operating in the US.
“BNY Mellon continues to monitor trends in CRB (cannabis-related business) transactions and may impose additional restrictions or require additional information in the future,” the bank said in its note.
According to new data from Statistics Canada, the marijuana industry has added a significant C$8.26 billion to the country’s GDP for July.
Fire & Flower Holdings (TSX:FAF) credited its retail expansion across Western Canada for its uptick in revenue for its latest earnings report. The Canadian cannabis retailer recently obtained an investment deal from Alimentation Couche-Tard (TSX:ATD.A) for the development of its global expansion plans.
This past trading week, Canopy Rivers (TSX:RIV,OTC Pink:CNPOF), the venture capital investment arm of Canopy Growth, told Canadian Press it is planning an investment for biosynthetic development of cannabis.
This synthetic production of cannabis derivatives is being developed by a variety of players in the market looking to refine the production of standardized cannabinoids.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.