This Week In Cannabis: Tilray, Aphria, Sundial Go For A Ride; ETFs Pop With CNBS Advancing 99%

Recall last month, when users of Reddit’s popular WallStreetBets forum caused shares of GameStop Corp. GME to spike by creating a massive short squeeze on the stock. The group also targeted AMC Entertainment Holdings Inc AMC.

This forced short sellers to buy more in order to forestall massive losses, sending the stock price on a meteoric rise.

Well, last week, their sights were set on cannabis.

See also: How to Buy Tilray Here (ACB) Stock 

Swaggy Stocks — a website that tracks ticker sentiment on WallStreetBets — noticed Sundial Growers Inc SNDL, Tilray Inc. TLRY and Aphria Inc. APHA went along for the ride:

• Sundial jumped 79% on Wednesday
• Tilray spiked 51%
• Aphria grew 11%.

This was short lived. By Thursday, Tilary fell 50%, Aphria dipped 36% and Sundial closed down 19%.

On Friday, Tilray shares closed down 9.83%, while Sundial closed down 12.61%. Aphria was up slightly by 0.36%. 

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

Other Cannabis Spikes

ETFs popped. Over the last five trading days:

• The ETFMG Alternative Harvest ETF MJ: gained 70.73%
• The AdvisorShares Pure Cannabis ETF YOLO: was up 59.18%
• The Cannabis ETF THCX: rose 84.6%
• The Amplify Seymour Cannabis ETF CNBS: advanced 99%
• The SPDR S&P 500 ETF Trust SPY was up 5%.

Regulatory Updates

Cannabis reform legislation in Minnesota is poised to receive its first hearing in the House Commerce Finance and Policy Committee on Wednesday, Feb. 17.

Cannabis business owners in Iowa may get a bit of financial relief if the Iowa Department of Public Health and the University of Iowa agree to slash medical marijuana patient and provider fees to $2,000 a year and set up an income tax deduction for expenses.

Colorado awarded High Country Supply with its first recreational marijuana delivery permit. The company noted it expects to begin deliveries by March 1.

Wisconsin Gov. Tony Evers will include marijuana legalization in his budget proposal to ensure "a controlled market and safe product are available for both recreational and medicinal users.” The program could yield around $165 million per year, starting fiscal 2023, he says.

New Jersey Gov. Phil Murphy signed a bill that modifies penalties for magic mushroom possession. The new bill reduces conviction for those caught owning less than one ounce of psilocybin mushrooms from up to five years in prison to only six months. Fines of up to $35,000 would drop to $1,000. Previously, it was a third-degree crime. Now, less than one ounce is considered a disorderly person offense.

South Dakota's ballot results from Nov. 3 were deemed unconstitutional by a judge. The decision is in line with challenges made by Gov. Kristi Noem, who ordered a lawsuit to overturn the adult-use portion of the ballot results last month.

Financings And M&A

• Auxly Cannabis Group Inc. XLY CBWTF raised $20 million as part of a share offering co-led by ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corp. Auxly plans to use the collected net proceeds for working capital and other purposes.
• Beam, which produces 100% THC-free CBD products, finalized its $5 million Series A funding round led by C2 Ventures. The startup is also backed by Obvious Ventures, Camwood Capital and athletes including Danica Patrick, Kevin Hayes and Brooks Laich. Several new investors such as The Yard Ventures, Litani Ventures and Carter Comstock also opted to join the effort.
• BevCanna Enterprises Inc. BEV BVNNF, a Vancouver manufacturer of cannabinoid-infused beverages, agreed to acquire Naturo Group Inc.
• Columbia Care Inc. CCHW CCHWF raised some CA$25.2 million (US$19.8 million) in funding via a private placement deal. Under the agreement, the New York cannabis company agreed to sell some 2.8 million of its common shares to Canaccord Genuity Corp. at CA$9 ($7.1) per share.
• Green Check Verified, a regtech company focused on compliant cannabis banking solutions and services, announced an over-subscribed $2.4 million convertible note financing. The round was led by Flatiron Venture Partners. Bravos Capital, Basecamp, Silverleaf Venture Partners and Fenway Summer also joined the effort. 
• Cannabis CPG company Green Thumb Industries Inc. GTII GTBIF secured $100 million from an undisclosed institutional investor. Rumor is it's BlackRock BLK. Click here to learn more. 
• Jushi Holdings Inc. JUSH JUSHF priced its overnight marketed offering of a total of 6.5 million subordinate voting shares at a price of CA$10 per share, for total gross proceeds of CA$65 million (US$51 million).
• NBA legend Isiah Thomas has invested $3 million into hemp and cannabis ingredient producer One World Pharma Inc. OWPC. The former Detroit Pistons player-turned-entrepreneur, who was named CEO of One World Pharma last June, invested through his holding company, Isiah International. The funds will allow One World Phara to build a THC and CBD extraction facility in Colombia and subsidize future growth.

Earnings Reports 

• Aurora Cannabis ACB reported total cannabis net revenue for the second quarter hovered around $70.3 million. That's up 11% over the second quarter of 2020. Medical cannabis net revenue reached $38.9 million — up 42% versus the second quarter of 2020 thanks to a 562% increase in high margin international medical sales. The Edmonton, Canada-based cannabis producer experienced an adjusted EBITDA loss of $12.1 million. That's an improvement of $53.1 million over the second quarter of 2020.
• Canopy Growth Corp. WEED CGC saw net revenue spike by 23% year-over-year, to $153 million. The Smith Falls, Canada-based company reported a net loss of $829 million. Adjusted EBITDA was also a loss of $68 million versus a $97 million loss in the corresponding quarter of 2020.
• The Green Organic Dutchman Holdings Ltd. TGOD TGODF expects fourth-quarter revenue to reach $10.9 million, representing a year-over-year and sequential growth of 235% and 91%, respectively. According to a preliminary financial report, Canadian operations and sales accounted for $8.6 million of total gross revenue for the period.
• Canopy Rivers Inc. CNPOF reported total comprehensive income amounted to $82.2 million in the third quarter of this fiscal year, versus a loss of $40 million in the same period of last year. The Toronto-based company attributes the growth to an $11.4 million increase in the value of its TerrAscend Canada Inc. TER TRSSF investment.
• Turning Point Brands Inc. TPB says net sales rose 31.2% year-over-year to $105.3 million in the fourth quarter. Adjusted EBITDA increased 80.9% to $25.8 million over the period. For the year, net sales amounted to $405.1 million. Net income increased by $19.3 million over the year. 
• CbdMD Inc. YCBD says e-commerce direct-to-consumer sales increased 41% year-over-year and 13% sequentially, to hit a record $9.7 million in the first quarter of fiscal 2021. The Charlotte, North Carolina-based company says net sales for the first three months of this year rose by 22% year-over-year to $12.3 million. The gross profit margin for the period went up to 72.2% from 63.5%. Operating expenses declined by 15% year-over-year and 2% sequentially to $10.7 million. Loss from operations was $1.8 million, down by 71% compared to last year's corresponding quarter.
• Pyxus International Inc. PYX revenues went up 4.5% year-over-year, to $379.6 million in the third quarter of the 2021 fiscal year. Adjusted EBITDA also improved, increasing 64.9% to $39.9 million, versus a positive adjusted EBITDA of $24.2 million for the corresponding quarter of last year.
• The Supreme Cannabis Company Inc. FIRE SPRWF generated roughly $21.7 million in gross revenue and $18.3 million in net revenue in the second quarter of fiscal 2021. Over the same period, recreational net revenue increased 70% to $12.7 million. Wholesale net revenue, including the international medical cannabis segment, rose 28% quarter-over-quarter to $5.6 million.

Movers & Shakers

• Curaleaf Holdings Inc. CURLF announced an initiative called "Rooted In Good." The Wakefield, Massachusetts-based company pledges to make at least 10% of its 2021 hires those who were previously saddled with cannabis-related offenses or criminal records.
• National Cannabis Roundtable (NCR) welcomed Kathleen Sebelius, the U.S. Department of Health and Human Services secretary under former President Barack Obama, to be honorary co-chair. For more, click here.

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