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 (March 18 to 22), additional agreements with public marijuana companies to support the setup of dispensaries in Ontario were announced.
A confirmation of interest in the US market from the top marijuana exchange-traded fund (ETF) operator in Canada made headlines this week, while the start of smokeable products sales in Florida also caught the attention of the market.
Here’s a closer look at what some of the biggest news was during last week’s trading period.
Ontario retail partnerships continue
After an initial batch of agreements between marijuana public companies and winners of a lottery set to determine the first 25 dispensaries to open in Ontario, this past week two new partnerships were confirmed.
High Tide (CSE:HITI,OTC Pink:HTDEF) and Canopy Growth (NYSE:CGC,TSX:WEED) announced new deals with Ontario license holders looking to set up shops in Toronto. Canopy’s deal is being managed by its retail brand Tokyo Smoke.
Both firms already had established partnerships with some retailers in order to participate in the set up of the stores. The new deal represents the third agreement for High Tide and the second publicly revealed deal for Canopy.
“As the realities of a compressed schedule and complex project became clear, the Third Winner realized that they would benefit from our help,” Raj Grover, president and CEO of High Tide, said in a press release.
Additionally, Origin House (CSE:OH,OTCQX:ORHOF) announced its subsidiary Trichome Financial awarded an option of up to C$2 million revolving credit facility and term loan to an Ontario retail operator set to open a shop in Brampton, Ontario.
Afzal Hasan, president and general counsel of Origin House, told the Investing News Network (INN) there are are in active discussions with more operators “looking for either capital or operational support.”
ETF operator in pursuit of US boost
With this confirmation Horizons ETFs adds momentum to the shift in interest from investors looking now for gains from the US cannabis market instead.
The first step for any US market share addition for the ETF manager will be the inclusion of Charlotte’s Web Holdings (CSE:CWEB,OTCQX:CWBHF), a hemp-only producer and developer of products, into the Horizons Marijuana Life Sciences Index ETF (HMMJ) (TSX:HMMJ).
During the past week Horizons ETFs also confirmed its quarterly rebalance for HMMJ, which included the addition of the following stocks into the fund:
- 48North Cannabis (TSXV:NRTH)
- AgraFlora Organics International (CSE:AGRA,OTC Pink:PUFXF)
- Cannara Biotech (CSE:LOVE)
- Charlotte’s Web Holdings
- The Flowr Corporation (TSXV:FLWR,OTC Pink:FLWPF)
- Heritage Cannabis Holdings (CSE:CANN,OTC Pink:HERTF)
- ICC International Cannabis (CSE:WRLD.U,OTC Pink:WLDCF)
- PharmaCielo (TSXV:PCLO)
- Westleaf (TSXV:WL,OTCQB:WSLFF)
- Zenabis Global (TSXV:ZENA)
Florida players see boost and market welcomes new public competitor
Following the official removal of a ban on smokeable products for the medical-only marijuana market in Florida multi-state operator (MSO) Cresco Labs (CSE:CL,OTCQX:CRLBF) announced its US$120 million purchase for an entry into the market.
This purchase will grant Cresco with seven active dispensaries and and additionally seven set to come online this year.
As part of its fiscal Q4 2018 results conference call, Joseph Lusardi, CEO of fellow MSO Curaleaf (CSE:CURA,OTCQX:CURLF), said the company’s estimations show the Florida cannabis market should double now thanks to the sales of smokable items.
Lusardi added he is also now expecting to see policy on edibles sometime this year.
“Offering these whole flower products to our patients in their purest, most effective form is something we — and patients — have been looking forward to since we opened the doors of the state’s first dispensary,” Kim Rivers, CEO of Trulieve (CSE:TRUL,OTC Pink:TCNNF), said in a press release.
Trulieve, a Florida-based MSO, confirmed the start of sales for these new products across its 26 dispensaries in the state, which led to the company’s stock rising.
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: High Tide, Cannara Biotech, The Floor Corporation, Heritage Cannabis Holdings are clients of the Investing News Network. This article is not paid-for content.