The Week In Cannabis: Mixed Stock Performers, Big Financings, Platform Launches, And More

This was a mixed week for cannabis stocks, with some ETFs in the green and others in the red.

Over the five trading days of the week:

The ETFMG Alternative Harvest ETF MJ: lost 1.4%
The AdvisorShares Pure Cannabis ETF YOLO: was up 0.8%
The Cannabis ETF THCX: was down 2%
The Amplify Seymour Cannabis ETF CNBS: gained 1.2%
The SPDR S&P 500 ETF Trust SPY was down 1.2%.

Trulieve Cannabis Corp. TRUL TCNNF entered the Pennsylvania market via the acquisition of PurePenn LLC and Pioneer Leasing & Consulting LLC Keystone Relief Centers LLC (Solevo Wellness) for $46 million and $20 million, respectively. In addition, the company would provide up to approximately $60 million and $15 million in its shares, depending on the achievement of particular EBITDA milestones, both parties agreed on.

Tulieve also secured CA$100.4 million in financing through an underwritten offering of its 4.1 million subordinate voting shares in a deal with Canaccord Genuity Corp.

Holistic Industries closed $35 million in debt financing in an oversubscribed round of funding led by Altmore Capital.

Treez, a seed-to-sale and cannabis retail software platform, secured $13 million in financing through a Series B Investment Round led by Intrinsic Capital Partners.

Benzinga launched the Benzinga Cannabis Network. The network will allow companies to make new connections and attract new business, while showcasing their products and services.

The network is the largest and most comprehensive cannabis industry business database built to date. Coverage includes everything from dispensaries, to public companies, to professional service providers — like accountants, payment processors, and marketing agencies.

Benzinga announced the official launch of its Spanish-language news site El Planteo, as reported by Business Insider’s Jeremy Berke and Yeji Jesse Lee.

On Tuesday, Illinois released its data on cannabis sales for the month of August. Adding together medical and adult-use sales, the Prairie State reached a record high of over $95 million in legal cannabis retail.

"We are not surprised to see another record month for adult-use cannabis sales in August, with total industry sales approaching $100 million —well-exceeding $1 billion of legal cannabis sales on an annualized basis,” said Linda Marsicano VP of Corporate Communications at Green Thumb Industries GTII GTBIF.

Green Thumb has eight stores and two manufacturing facilities in the state.

Marsicano continued to say that consumer demand remains strong throughout the ongoing COVID-19 crisis. The company expects industry growth to continue as operators ramp up capacity to increase supply, new stores open throughout the state and existing stores add adult-use sales.

Adult-use sales amounted to a total of $63.9 million before taxes. This marks a record for Illinois, surpassing July sales by over $3 million.

Of the total, 73% of buyers were in-state residents while 27% were out-of-state visitors.

Earnings Reports

Fire & Flower Holdings Corp. FAF FFLWF reported Tuesday a 158% revenue increase to $28.6 million in the second quarter of fiscal 2020.

Charlotte's Web Holdings Inc. CWEB CWBHF revealed Monday that its revenue declined by 13% sequentially to $21.6 million for the second quarter of this fiscal year.

Radient Technologies Inc. RTI RDDTF posted Monday its financial results for the fourth quarter and 2020 fiscal year. The Edmonton, Alberta-based company saw substantial year-over-year revenue growth from $214,060 in fiscal 2019 to $18.4 million in this fiscal year.

Cannabis retailer High Tide Inc. HITI HITIF reported Wednesday its revenue spiked by 180% year-over-year to $23.2 million in the third quarter of fiscal 2020.

See details on all of these results and more on Benzinga Cannabis’ Earnings Center.

Data

Cannabis legalization advocates often tout the plant's potential to boost state coffers. But the coronavirus pandemic has taken a toll on state budgets across the country, sending local leaders and lawmakers scrambling to find solutions and supplement revenues. According to Anderson Economic Group's Andrew Miller and Kaitlin Lynch, "legalizing recreational cannabis is not a panacea for the immediate shortfalls most states are facing." Click here to find out why.

Benzinga Cannabis’ content is now available in Spanish on El Planteo.

According to a new poll conducted by California-based Ganja Goddess the majority of 850 respondents said they had been consuming 9% more cannabis than usual since April and throughout the COVID-19 pandemic. Overall, 78% of consumers stated they are using cannabis to help manage health conditions such as sleep issues and anxiety. Ganja Goddess CEO Zachary Pitts told Benzinga, “It seems clear the pandemic is shifting both consumer sentiment and behaviors in ways we couldn’t even imagine just a few short months ago. On the frontlines of the cannabis sector, we’re seeing more consumers than ever turn to cannabis more frequently to help manage these new stresses during this once in a lifetime event.”

The poll also revealed a 17-point drop for brick and mortar retail as more consumers turn to cannabis delivery, the fact that flower remains the most popular consumption method among consumers, and a small rise in the use of tinctures, and a small decline in vape use.

Other News

AdvisorShares, an active ETF firm that has brought YOLO and the recently launched MSOs to the marketplace, announced that its partnering with CB1 Capital Management.

CB1 Capital will serve as an advisor to AdvisorShares on their U.S.-based cannabis efforts, including cannabis company research and investor education outreach. The New York-based CB1 Capital specializes in the supply chain of cannabinoid-based health and wellness solutions, sitting squarely within the fast-growing U.S. cannabis space. Its founder and CIO Todd Harrison is a prominent financial industry veteran and cannabis investment advocate.

Additionally, AdvisorShares CEO Noah Hamman indicated that there will be a charitable component with this new collaboration and to stay tuned for future announcements. Dan Ahrens, AdvisorShares chief operating officer and a recent guest on the Benzinga Cannabis Hour, serves as the portfolio manager for YOLO and MSOS, which are both actively managed cannabis ETFs.

Cannabis wellness brand Papa & Barkley announced that its National CBD line has expanded to over 1,000 retail stores including Equinox, The Vitamin Shoppe and Natural Grocers. The product line provides natural options for all skin types — perfect for repair and hydration, various skin conditions, scars, normal inflammation, redness and discomfort.

Adam Grossman, CEO of Papa & Barkley, told Benzinga, “We have maintained our leadership position as the top-selling cannabis wellness brand in the California market by making truly differentiated and life-changing products. With these key retail partners, we are now poised for explosive national growth, providing clients with safe access to the health and wellness benefits of Whole Plant Full Spectrum CBD products. We are excited to be partnering with national retailers that share our passion for quality products that improve people's lives.”

Dutchie and Sprout released an integrated solution that will benefit their shared customers’ online purchase experience. Consumers who leverage the Sprout CRM/Loyalty platform through their local dispensary, can now make their e-commerce purchases through Dutchie and apply loyalty discounts seamlessly.

"We are starting to see the cannabis industry evolve with a heightened focus on improving the consumer's online shopping experience,” stated Jaret Christopher, Founder & CEO of Sprout. "This integration between Sprout and Dutchie plays an important role in improving the online shopping experience, by combining customer data from our CRM/loyalty platform with Dutchie's e-commerce engine, consumers can now shop and redeem their rewards online", commented Christopher.

Jushi Holdings Inc. JUSH JUSHF will be hosting a virtual Investor and Analyst Day on Thursday, October 1, between 10:00 a.m. and 12:00 p.m. ET. The event will feature presentations by numerous executives, who will provide updates on the company’s divisions and answer questions from investors. Interested parties can register following this link.

Blackbird, a Nevada-based subsidiary of TILT Holdings Inc. TLLTF, has expanded cannabis delivery services to the Taunton, Massachusetts area through its proprietary digital cannabis marketplace, BlackbirdGo. Patients of the dispensary Commonwealth Alternative Care can now purchase high-quality cannabis products and accessories.

Shield Compliance, a compliance management platform for banking legal marijuana-related businesses (MRBs), announced a partnership with California-based KeyPoint Credit Union. The deal will allow KeyPoint to automate its compliance and risk management processes, improve the speed and efficiency of new member onboarding, and offer electronic payments to reduce its members' reliance on cash transactions.

Playboy Enterprises Inc. introduced a new broad-spectrum CBD-based products to improve sexual pleasure.

Biotechnology company Pascal Biosciences Inc. (TSX.V: PAS) has partnered with SoRSE Technology Corp. over an early-stage study of using cannabis as a treatment for cancer.

Fibonacci Brands is purchasing cannabis company Darwin Brands from Harvest Health and Recreation HRVSF.

OTC Markets Group Inc. OTCM said Tuesday that Harborside Inc. HBOR HSDEF has qualified to trade on the OTCQX Best Market.

Meanwhile, Vancouver-based BevCanna Enterprises Inc. BEV BVNNF announced its debut on the OTC Markets Group Inc.'s OTCQB Venture Market under the symbol "BVNNF."

Livingstone Partners introduced a new affiliate, focused exclusively on the cannabis industry. Sharp Capital Advisors is poised to provide best-in-class transaction advice and execution of deals, the Chicago-based company noted Tuesday.

Viola, a producer and wholesaler of cannabis products, teamed up with Chris Ball's Ball Family Farms to introduce an indoor flower strain.

Parallel's Surterra Texas partnered with telehealth platform Heally to provide Texans seeking medical cannabis evaluations and prescriptions with easy access to doctors.

Canopy Rivers Inc. RIV CNPOF agreed to provide up to $7.2 million in DIP (debtor-in-possession) financing to Ontario-based PharmHouseto support its operations through the restructuring.

Canopy Rivers owns a 49% stake in PharmHouse as part of a joint venture.

Following the news, about data from the Hyfire retail platform suggesting OrganiGram Holdings Inc.’s OGI sales trends improved during the fiscal fourth quarter, with a significant acceleration last month., Cantor Fitzgerald's Pablo Zuanic maintained an overweight rating for OrganiGram, while raising the price target from C$5.00 to C$5.35.

Financial services company Plaid, known for powering account verification for financial apps like Venmo and Robinhood, was recently acquired by Visa Inc. V. Since Visa does not allow cannabis payments processing, cannabis-focused digital payments company Hypur shifted its account verification processes away from Plaid. The company will be verifying accounts in-house, via open banking, so consumers and businesses can continue to operate as usual, chief revenue officer Tyler Beuerlein said.

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