Signaling the emerging presence of the hemp industry and more welcoming regulations in the US, a hemp producer is upgrading its shares to the Toronto Stock Exchange (TSX).
Shares of the Colorado-based hemp producer will stop trading on the CSE after the markets close on Thursday (May 30).
Charlotte’s Web closed Tuesday with an increase of 3.1 percent to finish with a price of C$19.93. The producer has a market capitalization of C$771.73 million.
In a statement issued on Wednesday (May 29), the company indicated to shareholders that it believes a TSX listing will “exposure (Charlotte’s Web) to a wider capital markets audience, increase trading liquidity, and expand access to international institutional investors and capital.”
Joel Stanley, chairman and co-founder of the hemp producer, said the listing upgrade represents a “milestone” achievement for the company.
Charlotte’s Web explained that, despite being capable of an up-listing, it was not previously allowed to do so due to TSX listing policies surrounding the “uncertainties” of the hemp market in the US.
“While Charlotte’s Web previously met operational, governance and capital requirements for a TSX listing at the time of its IPO, uncertainties regarding the federal legality of hemp in the United States at the time were not clear enough to satisfy TSX listing policies,” the company said.
Charlotte’s Web reports net income of US$2.3 million
Also on Tuesday, the company issued its financial results for Q1 2019. Charlotte’s Web reported revenue of US$21.7 million for the quarter, with total net income of US$2.3 million.
“My priority is to raise the company’s level of operational effectiveness and accelerate growth opportunities acting with urgency and decisiveness,” Deanie Elsner, the newly appointed CEO of the company, said in a press release.
Elsner is a former president of the US snacks division of Kellogg Company (NYSE:K).
The producer confirmed that, thanks to newfound interest from established retailers, product from its portfolio is now being shipped to four separate undisclosed national retailers representing 18 state markets in the US.
FDA clarity could expand retail partners for hemp producers
Elsner said the firm expects to see more retailers joining the rush for hemp-derived cannabidiol (CBD) products. “This momentum is continuing as consumer awareness and retailer interest surrounding hemp and CBD increases,” she said.
However, the executive added, some retailers will wait for guidance from the US Food and Drug Administration (FDA).
Back in April, a public hearing was scheduled for this Friday (May 31) to gauge opinions on how the FDA should regulate CBD products.
“While the availability of CBD products in particular has increased dramatically in recent years, open questions remain regarding the safety considerations raised by their widespread use,” former FDA commissioner Scott Gottlieb said in the announcement.
Gottlieb wrote that it is critical for the agency to find a solution as it considers the option to enforce a regulatory authority on CBD in dietary supplements and other foods.
“I hope to have more definitive rules come out of the hearing,” Marc Adesso, veteran cannabis attorney with law firm Waller Lansden Dortch & Davis, told the Investing News Network in an email statement.
Charlotte’s Web stock plays role in new ETF
Steve Hawkins, president and CEO of Horizons ETFs, said the increased attention to the hemp market will be a new tool for the Horizons Marijuana Life Sciences Index ETF (HMMJ) (TSX:HMMJ).
“(The CBD market) is another exciting growth market through which HMMJ can provide exposure, given the regulatory changes in the United States,” Hawkins said.
As of Monday (May 27), Charlotte’s Web held a 2.7 percent weight in the total holdings of HMMJ and the leading 10.29 percent weight for HMUS.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
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).