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.
In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.
Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.
The Board of Directors of Aphria Unanimously Recommends Shareholders Vote “For” the Arrangement
Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination
Love Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and Hemp product suppliers, announces that as part of the equity fundraise announced yesterday, Antony Calamita and Andrew Male, Directors of the Company, subscribed for 285,714 Ordinary Shares and 1,428,571 Ordinary Shares respectively. The subscriptions are at a price of 3.5 pence per ordinary share for a total of £60,000. Following these subscriptions, Antony Calamita is now interested in 54,385,714 Ordinary Shares, representing 8.61% of the Company’s share capital as increased by the fundraising, and Andrew Male is now interested in 6,138,196 Ordinary Shares, representing 0.97% of the Company’s issued share capital as increased by the fundraising
Further, the timetable for receipt of applications under the Broker Option, which was also announced yesterday, has been extended until 5:00 pm 9 April 2021 to capture additional interest which was unable to be completed yesterday.
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, would like to provide the following dial-in information for the Company’s upcoming Annual and Special Meeting (the “Meeting”) scheduled to be held at 11:00 a.m. Eastern Daylight Time on April 12, 2021. Shareholders and proxyholders may access the Meeting via teleconference by dialing 647-723-3984 or 1-866-365-4406 from Canada or the United States, then entering participation code “8487744” followed by the pound (“#”) sign.
In consideration of the COVID-19 pandemic and the recent restrictions imposed by the Ontario Provincial Government, shareholders and proxyholders will only be able to attend the Meeting via teleconference and will not be permitted to attend the Meeting in person at the address provided on the Notice of Annual and Special Meeting of Shareholders.
Gage Cannabis Announces Exclusive Partnership With Blue River to Bring Award-Winning Cannabis Extracts to Michigan
Gage Growth Corp. (“Gage” or the “Company”) (CSE:GAGE), a leading high-quality craft cannabis brand and operator in Michigan, announced today that it has signed an agreement with Blue River™ Extracts & Terpenes (“Blue River™”) to bring the brand’s award-winning solventless technology and other trademark branded products to the state’s medical patients and cannabis consumers. The Company will have exclusive rights to Blue River™’s premium product offerings in Michigan.