As another month ends, the Investing News Network provides a recap of some of the most critical May developments in the public marijuana space.
Investors are gearing up for a key vote for an acquisition in the public cannabis sector. As the deadline for votes nears, two investment firms have issued statements to investors on which stance to take.
Meanwhile, in California, a newly proposed bill would allow for the implementation of cannabis banks in the state, sidestepping a federal ban on financial institutions participating in the space due to the illegality of the drug at the federal level.
California gets closer to offering banking relief
The California Senate voted in favor of Bill 51 in May, which would allow the creation of state-chartered cannabis banks.
“The bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing banking services, as defined, to cannabis businesses,” the text of the legislation indicates.
“Hopefully, it will open up the possibility of more banks serving cannabis companies in California,” Marc Adesso, veteran cannabis attorney with law firm Waller Lansden Dortch & Davis, told the Investing News Network in an email statement.
Support and concern for Acreage/Canopy deal
Two separate investment firms issued commentary to investors in May advising how to vote on Canopy Growth’s (NYSE:CGC,TSX:WEED) proposed acquisition of multi-state operator Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF).
Mick McGuire, portfolio manager for Marcato Capital Management, issued a letter to shareholders calling the deal a “value-destructive transaction.” He advised other Acreage investors to vote against it. Marcato indicated that it owns approximately 2.7 percent of Acreage shares.
“…Marcato believes it is highly imprudent for Acreage to sell itself today at the proposed valuation, with so much unlocked growth and value embedded in (Acreage),” McGuire wrote in the letter.
However, another investment firm, Cresco Capital Partners, confirmed it will vote positively for the deal as an Acreage investor.
“From an Acreage perspective, it now has 58 million shares of Canopy Growth injected in the company to continue to make strategic acquisitions and expand across the country. In an industry where capital still costs a premium, this infusion is a tremendous differentiator,” Matt Hawkins, managing partner at Cresco Capital Partners, wrote to investors, according to a report from MarketWatch.
Watch the video above for more on what happened during the month of May.
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: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .