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And more progress
WASHINGTON, Jan. 25, 2022 – PRESS RELEASE - The United States Department of Agriculture (USDA's) Agricultural Research Service (ARS) and Cornell University announced the launch of a webinar series on hemp research that aims to broaden the scope of training, education, and connectivity within the hemp community.
"Hemp is rapidly emerging as a critical multi-use and economically significant crop, so this hemp seminar series is designed to increase the diversity, equity, and inclusivity of ARS' mission while providing hemp-specific education, training, and networking opportunities to historically underserved communities," said Zachary Stansell, USDA-ARS geneticist, and acting hemp curator.
The research team believes that by broadening the scope of training, education, and connectivity within the developing hemp community, they can create a more welcoming and inclusive environment for new hemp and empower hemp research by bringing diverse voices into the larger conversation.
"Training and educating new scientists from many different backgrounds is critical in order to achieve the most cutting-edge solutions to an array of issues producers face—from climate change to economic viability," said Cornell University Crop Specialist Daniela Vergara.
Lectures will be given by various hemp research experts from academia, research laboratories, production facilities, and private industry:
Jan. 26 - Outdoor Cultivation: Jeff Kostuik
Feb. 9 - Indoor Cultivation: Bruce Bugbee, Ph.D.
Feb. 23 - Hemp Processing Systems: Heather Grab, Ph.D.
March 9 - Extraction Chemistry/Facility Design: Alisia Ratliff
March 23 - The Endocannabinoid System: Ethan Russo, M.D.
April 6 - Hemp Food Science: Hunter Friedland
April 20 - Hemp Diversity/Genetics: Daniela Vergara, Ph.D.
May 4 - Economics of Hemp Production: Tyler Mark, Ph.D.
Starting Jan. 26, the webinars will occur every other Wednesday from 2 p.m. to 3 p.m. ET and include an interactive Q&A session. Registration is required.
CBD stocks should be added to investors' watchlists as the market continues to heat up. The PPS of EndexxCorp- $EDXC is attractive when compared to the market value. Potential investors may be happy with the brand's prospects.
https://pubcoinsight.com/2022/01/25/hemp-cbd-stocks-11/
>>> GrowGeneration Stock Tumbles. The Hydroponics Market Is Slowing.
Barron's
By Karishma Vanjani
Jan. 13, 2022
https://www.barrons.com/articles/growgeneration-grwg-stock-guidance-51642091771?siteid=yhoof2
Shares of GrowGeneration fell sharply Thursday after the gardening products retailer lowered guidance due to a general slowdown in the hydroponics market.
The stock fell 8.2% to $10.19. GrowGeneration (ticker: GRWG) said full-year revenue will be between $420 million to $422 million. Analysts tracked by FactSet predicted $435.3 million. GrowGeneration said in November that it expected full-year revenue of $435 million to $440 million. In 2020, sales were $193 million.
The company projected same-store-sales for the full year to rise 24.4%. Fourth-quarter same-store sales were estimated to decline 12.3%. GrowGeneration anticipates total sales in the fourth quarter of between $88 million to $90 million, below Wall Street forecasts.
“Although we continue to grow our business significantly, we experienced stronger-than-expected pressures in Q4 from the general slowdown in the hydroponics market,” said GrowGeneration CEO Darren Lamper in a press release.
GrowGeneration said it expects an adjusted Ebitda loss in the fourth quarter of $2 million to $4 million.
The company said it was confident it could deliver revenue and Ebitda growth in 2022.
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Amazon Is Officially Lobbying on Cannabis
While the global online retail giant said in June that it would support the MORE Act, a bill to end the federal criminalization of cannabis, it formally registered early Wednesday morning.
PUBLISHED ON JUL 21, 2021 11:01AM EDT
LOBBYING
Nushin Rashidian
>>> Cannabis Overhaul in Washington Is Only Getting Harder
Wall Street Journal
Dec 28, 2021
https://www.wsj.com/articles/cannabis-overhaul-in-washington-is-only-getting-harder-11640696403?mod=itp_wsj
Legalization agenda could be complicated by states that want to defend their nascent marijuana industries and associated tax revenues
Investors need to brace for more political wrangling over cannabis. Some states that already permit the drug could be unexpected holdouts to full federal legalization.
American pot stocks haven’t had a good year. Despite rising in January and February, when the Democrats took control of the U.S. Senate and WallStreetBets traders piled into pot stocks, the AdvisorShares Pure Cannabis ETF —one of the larger funds tracking the sector—is down 23% year to date. Federal bills have been introduced by both Democrats and Republicans in recent months, but haven’t helped share prices as no one expects them to pass...
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Black Bird Biotech - BBBT applied for approval in the states for its MiteXstream Biopesticide sales efforts, the price may break out soon. Better to buy the dip now.
https://marketsherald.com/gem-stocks-a-closer-look-at-black-bird-biotech/
Global CBD market value was $2.8 billion in 2020 and is expanding at a rate of 21.2%! One of the big players in the sector is EndexxCorp - $EDXC, invest before the company hits full stride!
https://nyweekly.com/business/the-cbd-pioneers-of-endexx-corporation/
Black Bird Biotech's $BBBT Market is Pretty Much Stable After It Announced Wide-Ranging Field Tests of its MiteXstreamTM Biopesticide by A Second International Agri-Chemical Distributor Based in the Middle East.
SMG, GRWG - >>> 3 Top Marijuana Stocks to Buy Without Hesitation
Motley Fool
By Rich Duprey, Eric Volkman, and Alex Carchidi
Nov 28, 2021
https://www.fool.com/investing/2021/11/28/3-top-marijuana-stocks-to-buy-without-hesitation/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Steady progress year over year is more important than the results of any single quarter.
A picks-and-shovels play that's in the early stages of growth is deeply discounted.
Consistent profitability and one of the best retail networks in the business makes this stock a buy.
These cannabis stocks are no-brainers to add to your portfolio.
The recent ruling by the South Dakota Supreme Court that struck down a voter referendum approving legalized marijuana shows the difficult road ahead for cannabis stocks in dealing with state-by-state approvals. A cohesive, national policy is required.
That's why the introduction of a Republican-sponsored bill to legalize pot at the federal level is an important development. It could point the way toward a bipartisan agreement. But whether marijuana remains a patchwork quilt of state sanction or it gets the nod nationally, the following three cannabis companies are ones to buy right now.
What's not to like about rising revenue and widening margins?
Alex Carchidi (Scotts Miracle-Gro): I'd be willing to buy a few shares of Scotts Miracle-Gro ( SMG 2.37% ) without hesitation because it's a highly diversified business that makes the gardening tools and plant nutrients that marijuana growers need to keep making money.
As a result of hot demand from newly opened cannabis facilities, its cannabis cultivation equipment subsidiary, Hawthorne, is driving much of the company's top-line growth. Though its sales contracted by 2% year over year for Q4, Hawthorne's full-year revenue for 2021 grew by 39%, which isn't half bad. Similarly, because of the strong seasonality of Scotts' consumer gardening segment, fourth-quarter revenue dipped 17%, but companywide sales for the year grew by 19%.
As the marijuana industry in the U.S. continues to grow, it'll continue to need the gear Hawthorne provides in greater and greater quantities. Plus, if consumers need to buy cannabis year-round, Hawthorne will need to sell growers the right gear every quarter, which could reduce some of the seasonality that I suspect scares some investors away from Scotts' stock.
Right now, there's every indication that the company will rise to meet the marijuana boom and reward its shareholders in the process. Scotts is improving its efficiency over time across several metrics while committing to another round of share repurchases worth up to $300 million in 2022. Over the past five years, its annual profit margin has risen by nearly 26%, reaching its current level of 10.41%. And its annual return on invested capital (ROIC) rose by 70.3% in the same period, reaching 18.53%. That means the company is getting better at squeezing more money out of both its operations and its equity from sources such as shareholders.
In short, Scotts has the right set of products in the market at the right time, and it has a history of pulling through for its shareholders over the long term. For me, there's nothing better.
Eric Volkman (Green Thumb Industries): Pot companies with a strong retail presence will be the first ones to benefit when federal cannabis law is reformed, or several more states flip the switch on recreational legalization. Granted, neither is likely to happen anytime soon, but Green Thumb Industries ( GTBIF 0.69% ) is a company beautifully poised to leap on the opportunity.
In many ways, Green Thumb is a bellwether retail-facing pot stock, as it's among the top three U.S. multistate operators (MSOs) in terms of revenue, along with rivals Curaleaf and Trulieve Cannabis. It also bucks the money-losing MSO standard by being consistently in the black of late, with five consecutive quarters of bottom-line profitability.
In fact, Green Thumb did smashingly well in its most recently reported quarter. Its Q3 revenue came in at $235 million, 49% higher year over year and 5% better than the Q2 result. Net profit leaped even further ahead; at $21.6 million it was more than double the year-ago figure, although it represented an 8% decline from the previous quarter.
Among the major U.S. MSOs, in my opinion Green Thumb has one of the best geographic footprints.
This starts with its own home state, Illinois, in which recreational weed got off to a roaring start when it became law at the beginning of 2020. In October, the state surpassed $1 billion in year-to-date recreational sales. That's well above the total for the entirety of 2020, which was only $669 million. Green Thumb's Rise is a go-to dispensary in the state, with nine locations.
Green Thumb's retail presence covers not only established locales such as Illinois, but also ones that have yet to establish their recently legalized recreational markets. There are three Rises apiece in both New York and New Jersey, and a pair in Virginia.
Pot stocks aren't the flavor of the month just now, because of the more-stop-than-start nature of U.S. decriminalization/legalization. Green Thumb stock has been unfairly punished in the process, but that provides opportunity for investors to snap up the shares at a relatively cheap price -- they're down by nearly 40% from their one-year peak, after all.
All the pieces are in place for a big growth spurt
Rich Duprey (GrowGeneration): I like GrowGeneration ( GRWG -5.08% ) for much the same reason my colleague Alex like Scotts Miracle-Gro -- it's a picks-and-shovels cannabis company that can win regardless of which pot stocks actually grow the fastest.
As the country's largest specialty hydroponic and organic garden center supplier, GrowGeneration sells to marijuana growers the required supplies and equipment they need to produce pot for sale, particularly within its own line of branded products, such as Char Coir coconut coir and Power Si plant additives.
Although it operates a network of 62 stores across 13 states -- it plans to expand in 2022 to all 18 states that have adult-use laws in effect -- GrowGeneration's products are sold in third-party outlets as well.
Power Si, for example, is available in 500 independent hydroponic locations across the U.S., and it now sells across Canada, the U.K., and Europe. That's helping push sales higher, which more than doubled in the third quarter to $116 million as comparable sales were up nearly 16% from last year.
Despite its success, the market has punished GrowGeneration. Its stock is down 25% since it reported earnings on Nov. 11, and shares have lost nearly three-quarters of their value from the highs they hit back in February.
Even as it saw net profits grow 20% from last year as adjusted earnings of $0.18 per share were 38% above the year-ago figure (and double the consensus estimates), adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $10.8 million fell short of analyst expectations, although it was a record amount for GrowGeneration.
Guidance also weighed on the stock, as fourth-quarter sales and profit margins will be pressured by an oversupply situation in California, the largest marijuana market.
Good for investors! Wall Street forecasts that GrowGeneration will quadruple sales by the middle of the decade while EBITDA will expand fivefold. That makes the cannabis supplier company a discounted play and one investors might not want to wait too long to buy.
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>>> Republican-Led Bill To Legalize And Tax Marijuana Emerges As Alternative To Democratic Measures
ETFMG
November 5, 2021
By Kyle Jaeger
https://www.marijuanamoment.net/republican-led-bill-to-legalize-and-tax-marijuana-emerges-as-alternative-to-democratic-measures/
A new Republican-led congressional marijuana legalization bill is imminent, Marijuana Moment has learned. The measure is being framed by advocates as a compromise between simple descheduling as proposed by other GOP lawmakers and wide-ranging comprehensive legislation that Democratic leaders are championing.
Marijuana Moment obtained text of the draft legislation, which is being led by Rep. Nancy Mace (R-SC). The measure, titled the States Reform Act, is currently being circulated among stakeholders for feedback and is therefore preliminary, but a final version is expected to be officially filed later this month.
This is yet another development in what’s proved to be an active year cannabis reform on Capitol Hill. But the GOP angle is notable, as many have raised doubts about the prospects of Congress passing the far-reaching, large-scale marijuana bills that Democrats are leading in the House and Senate. Getting Republican buy in could prove critical to getting something over the finish line, and the Mace measure seems aimed at appealing to the states’ rights and business interests of conservative colleagues on her side of the aisle while also incorporating some restorative justice and tax elements largely favored by progressives.
The freshman congresswoman, who was the sole GOP vote in favor of a cannabis research bill for veterans during a committee markup on Thursday, is aiming to federally deschedule marijuana and create a regulatory scheme—but still ensure that existing state markets are not unduly burdened or undermined by new rules.
Here’s a rundown of the details based on the draft legislation and summary documents obtained by Marijuana Moment:
-Cannabis would be federally descheduled and treated in a manner similar to alcohol.
-A 3.75 percent excise tax would be imposed on cannabis sales. Revenue would support grant programs for community reentry, law enforcement and Small Business Administration (SBA) aid for newly licensed businesses.
-The Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) would be the chief regulator for marijuana with respect to interstate commerce.
-The Food and Drug Administration (FDA) would be limited in its regulatory authority, with the intent being that it would have no more control over cannabis than it does for alcohol except when it comes to medical cannabis. The agency could prescribe serving sizes, certify designated state medical cannabis products and approve and regulate pharmaceuticals derived from marijuana, but could not ban the use of cannabis or its derivates in non-drug applications, like in designated state medical cannabis products, dietary supplements, foods, beverages, non-drug topicals or cosmetics.
-Raw cannabis would be considered an agricultural commodity regulated by the U.S. Department of Agriculture (USDA).
-The legislation would grandfather existing state-licensed cannabis operators into the federal scheme to ensure continued patient access and incentivize participation in the legal market.
-As federal agencies work to promulgate rules, there would be safe harbor provisions to protect patients and marijuana businesses acting in compliance with existing state laws.
-People with certain federal cannabis convictions that were non-violent would be eligible for expungements.
-To prevent youth use, there would be a mandatory 21 age limit for recreational cannabis, and the bill also prescribes certain restrictions on things like advertising.
-SBA would need to treat marijuana businesses the same as other regulated markets, like it does for alcohol companies, for example.
-The measure also stipulates that veterans can’t face discrimination in federal hiring due to cannabis use, and doctors with the U.S. Department of Veterans Affairs (VA) would be specifically authorized to issue recommendations for medical cannabis for veterans.
-Federal agencies could continue to drug test for marijuana.
-The Bureau of Labor Statistics (BLS) would be required to issue a report to Congress on the marijuana industry.
The draft bill is 116 pages, so these details represent just a portion of what’s comprised in the legislation. And again, the provisions are subject to change as the proposal is finalized ahead of its formal introduction in Congress.
Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.
It’s also not clear what other GOP offices will be involved when the bill is officially rolled out. Marijuana Moment reached out to Mace’s office, but staff declined the opportunity to comment by time of publication.
The Republican-led effort sets the stage for some interesting debate. Advocates have already rallied behind measures such as the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which recently cleared the House Judiciary Committee, as well as a reform bill that’s being finalized on the Senate side, led by Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ).
It’s unlikely that the champions behind those measures would want to cede the issue to a Republican-led bill, even if it does contain components meant to appeal to Democrats and justice reform advocates.
But it’s possible the legislation will garner favor with industry stakeholders who are eager for a passable legalization proposal. Mace’s legislation takes specific steps to preserve the markets that have already been established in states while ensuring that they have the resources to expand under federal regulations.
Some Republicans have led, or joined their Democratic colleagues, on other marijuana bills, but they’ve generally been far more scaled back measures—simply protecting states that choose to legalize or descheduling cannabis without touching social equity issues or creating a federal tax on sales.
In any case, polling shows that the public is ready for an end to prohibition. Sixty-eight percent of U.S. adults said they back legalizing cannabis in a Gallup poll released this week—and that includes majorities of Democrats, Republicans and independents.
Yet, despite that support, President Joe Biden continues to oppose adult-use legalization. Instead, he’s supportive of more modest proposals to federally decriminalize cannabis, legalize the plant for medical use and let states set their own policies.
Whether he’d sign any Democratic- or Republican-led legalization bill is an open question.
While the president is personally against comprehensively ending prohibition, the Congressional Research Service released a report on Wednesday explaining steps he and his administration could take to repair the harms of cannabis criminalization.
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>>> Cannabis CEOs signal confidence on banking law reform
Yahoo Finance
by Zack Guzman
August 13, 2021
https://finance.yahoo.com/news/cannabis-ce-os-signal-confidence-on-marijuana-banking-law-passing-104015398.html
Marijuana advocates have been stacking victories over the last few years at the state level with nearly 20 U.S. states having now approved adult recreational marijuana use.
But even as momentous as those changes have been, reform at the federal level has proved elusive — until now, if you trust the confidence coming from the leaders of America's largest cannabis companies.
This week, Trulieve CEO Kim Rivers and Curaleaf Executive Chair Boris Jordan both wagered on Yahoo Finance Live that the nation's onerous banking restrictions on cannabis companies could finally be lifted as soon as early next year. Due to the fact that cannabis is still illegal at the federal level, cannabis businesses have largely been locked out of the traditional banking system and often operate cash-only storefronts.
One bipartisan plan, dubbed the SAFE Banking Act, seeks to fix that by allowing banks to work with cannabis companies in states where cannabis has been legalized. The bill has already passed the House of Representatives four separate times, including by way of an easy 321-101 House vote back in April, but has never made it to a vote in the Senate under Republican control and has yet to clear that hurdle this year under Democratic leadership. Key progressive Democrats, like Senate Majority Leader Chuck Schumer (D, N.Y.) and Sen. Cory Booker (D, N.J.) have expressed concerns that banking reforms don't go far enough and have pushed for their own federal marijuana reform plan, which includes sweeping social reforms and criminal expungements.
Citing his conversations with Democrats in the Senate, however, Jordan told Yahoo Finance that he believes the SAFE Banking Act could finally pass the Senate as soon as the first quarter of 2022.
"I think they are first going to vote in the fourth quarter [of 2021] on a more comprehensive bill. I don't think it will get through," he said Wednesday, pointing to a high hurdle of attracting the 10 Republican votes needed to clear a 60-vote threshold in the Senate. "I do think, though, we've got the votes in the Republican party to get SAFE Banking through."
Jordan highlighted a lack of Republican support for the progressive reforms that Democrats are seeking, which includes emulating at a federal level what some states have done to redirect cannabis tax revenues to communities of color. Data shows that despite roughly equal cannabis use as compared with white Americans, Black and Latino Americans have suffered disproportionately from criminal enforcement. Democrats have also criticized the low number of minority-led cannabis companies winning the limited licenses to operate.
For his part, Booker previously said at a conference rolling out his more sweeping reform plan that he'd do everything in his power to stop more moderate bills, like the SAFE Banking Act, that don't also include restorative justice components. When pressed on that stance during an interview with Yahoo Finance, Booker later clarified his support for the SAFE Banking Act, but hoped it could be used as a sweetener to get more support to help those hurt by America's War on Drugs.
"I’m hoping that all the industries out there that know that they’re going to make tremendous profits join me in standing up for what I think is the greatest act of patriotism there in saying, ‘I’m not going to put my interest alone. I’m actually going to look out for my fellow American. I’m actually going to pledge to them that I’m going to fight for those people who are in economic devastation because of a nonviolent marijuana charge, that I’m going to make sure that we take care of everybody,'” Booker said.
On the businesses front, marijuana reform advocates point out that many minority cannabis entrepreneurs struggle with the same issues around accessing banking that their white counterparts do. While larger cannabis giants might have an easier time raising massive funding rounds at lower rates, Jordan said Curaleaf has also helped minority groups around the country get businesses off the ground.
"I'm telling every politician — [Sen.] Booker, [Senate Majority Leader] Schumer, I've talked to everybody. I'm saying, 'Guys, SAFE Banking will really charge up the social justice issues in the minority communities. It will really help tremendously in getting these people to open up businesses, open stores and to function in the cannabis world. Doing nothing, does nothing. That's the point," he said.
Rivers, the CEO of Florida-based cannabis giant Trulieve, also reiterated her belief that the SAFE Banking Act is likely the first federal reform that will make it across the finish line and echoed Jordan's timeline of next year.
"I'm there on SAFE Banking for Q1 2022," she said Thursday on Yahoo Finance Live. "The votes are there now, it just has to get brought to the floor."
How long progressives might want to wait to use the moderate banking reforms as a sweetener to their more social justice push remains to be seen. To be fair, there seems to be no sense of urgency coming from the executive branch. White House Press Secretary Jen Psaki noted that President Biden's views on marijuana reforms have not progressed from his preference of decriminalization on the very same day that Schumer unveiled his sweeping marijuana reform plan.
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>>> The House passes the Safe Banking Act
Yahoo Finance
April 20, 2021
https://news.yahoo.com/house-passes-safe-banking-act-171755091.html
Earl Blumenauer
U.S. Representative from Oregon
Yahoo Finance’s Jessica Smith is joined by Rep. Earl Blumenauer, (D) Oregon and the Yahoo Finance Live panel to discuss the House passing legislation to provide legitimate cannabis businesses in states like Oregon access to banking services.
ZACK GUZMAN: Welcome back to The Business of Cannabis here on "Yahoo Finance Live." We're discussing the progress that's been made. It's been slow for advocates out there but progress, nonetheless, in terms of reform at a federal level for marijuana. For the fourth time, we saw the Safe Banking Act, which would allow businesses in the cannabis space to access traditional financing, as well as make some tweaks there-- passed the House for the fourth time by an overwhelming vote this time.
And for more on that and the progress we're seeing in Congress, I want to bring on the co-chair of the Congressional Cannabis Caucus. Representative Earl Blumenauer joins us representing the state of Oregon. And Congressman, going to be chatting here alongside-- I want to bring in Yahoo Finance's Jessica Smith with us as well. And Congressman, talk to me about what this means. Because we've been talking about the Safe Banking Act for years now in the way that it's been passed in the House, but all of the progress has been stalled in the Senate when it was Republican controlled. How is it looking now, with Democrats in charge?
EARL BLUMENAUER: It's the difference between night and day. I mean, we-- it was-- we had more progress in the last Congress than ever before with the MORE Act, with my research bill, with the Safe Banking Act. But it all went to Mitch McConnell's hospice in the Senate. Now, we are in an entirely different dynamic. We have a Senate that Majority Leader Schumer is on board and strongly supportive. The other lead for the MORE Act of legalization is Ron Wyden, the chair of the finance committee, my fellow Oregonian, and Cory Booker, who's been a partner for years.
So having those three people-- and the fact that this is not going to be bottled up. They'll have an opportunity to be dealing with the legislative process, what you saw yesterday in the House. Again, with over 300 votes, that's strong bipartisan. If it gets to the floor, it'll pass. And I think that's likewise what will happen with research and, ultimately, with legalization.
I mean, you've watched this last year result in a tidal wave. We've had more states on the state level that have approved.
ZACK GUZMAN: Sure.
EARL BLUMENAUER: Public opinion is strong. I've been working on this, literally, for 50 years. Oregon was the first state to decriminalize. The momentum has built. 2/3 of the public or more support it. It's going to be a $20 billion a year industry this year. I mean, the stars are aligned for being able to move this forward and I think finally enact it into law.
JESSICA SMITH: Hi, Congressmen. Senator Sherrod Brown, chair of the Banking Committee on the Senate side, has said at one point that if he considers the Safe Banking Act, he would want it to include measures like sentencing reform. If you start including those kinds of measures in the bill, are you worried that that could hurt the chances of final passage?
EARL BLUMENAUER: Well, I think it's not necessary to try and make this a comprehensive bill. We are committed to the MORE Act, which is comprehensive, and strongly support things like restorative justice. But this is a fundamental public safety issue. I mean, in my community, we've had over 100 robberies, including one fatality.
This is happening around the country. It's a public safety issue. It fouls up the building industry. It doesn't just impact state legal cannabis, but real estate, banking. The people-- you know, Scotts Miracle-Gro could lose its bank accounts because there's a number of people in the industry that buy their products. I don't think we need to make this the vehicle for reform. And I'm happy to talk to Sherrod and share the strategy because we can do both, and we can do it this year.
ZACK GUZMAN: Yeah, and Congressman, I mean, when we hear Chuck Schumer talking about the timeline in the Senate, he keeps saying soon for a more progressive bill to be introduced there. And to Jessica's point, I mean, there are a lot of people who are worried about maybe that it would take away from the enthusiasm over there. But maybe, why would that be the wrong way to look at it, if we're thinking about incremental wins over the last 50 years, you said, to get to this point?
EARL BLUMENAUER: Yeah, I don't think it takes away. I think it builds the momentum. We get people on the record and people paying attention to the issue and mobilizing the vast array of people who support it. We have the MORE Act that is teed up and ready to go in both the House and I think it's near ready for introduction in the Senate. This is comprehensive. It's got restorative justice. All the things that Sherrod and others care about is a part of that package. And we get the momentum going.
This is-- we're on the verge of major initiatives dealing with interstate commerce, international trade. I mean, this is a national movement, and we have an opportunity--
ZACK GUZMAN: Yeah, for it to be a national movement too, though, I mean, we've talked about President Biden maybe not playing as active a role. We know his stance. Does that need to change for you to get this across the finish line, do you think?
EARL BLUMENAUER: No. It'll be legalized by Congress. Biden was part of the Obama administration that made a decision with the Cole Memo to allow state legal enterprises, as long as they operate within the boundaries of their state law, to be able to operate unfettered and gave some guidance, for example, to the Treasury. I mean, this is an opportunity, I think-- Mr. Biden is looking at some of his criminal justice activities in the past a little differently. But all we need for the federal government to do is stay out of the way.
ZACK GUZMAN: Right.
EARL BLUMENAUER: And I'm confident that he will do that.
ZACK GUZMAN: All right, representative Earl Blumenauer from Oregon, appreciate you taking the time to chat with us today alongside Jessica Smith with us here. Thanks again. Appreciate it.
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>>> Cannabis stocks rally on talk of M&A and latest moves toward possible reform of federal ban
MarketWatch
Nov. 8, 2021
By Steve Gelsi
https://www.marketwatch.com/story/cannabis-stocks-rally-on-talk-of-m-a-and-latest-moves-toward-possible-reform-of-federal-ban-11636396460
Cannabis stock get some positive news for a change on talk of deal-making and a Republican-backed bill aimed at legalization
Cannabis stocks posted big gains Monday amid optimism about M&A and federal legalization in a rare burst of energy in the sector that’s been trading mostly lower this year.
On the M&A front, tobacco giant Altria may buy the 55% of Cronos Group that is doesn’t already own, according to speculation from New Cannabis Ventures. The deal would come about three years after Altria paid C$2.4 billion ($1.9 billion) for a 45% stake in Cronos, with an option to buy a controlling stake.
Meanwhile, cannabis received a couple of positive developments on the federal front. Marijuana Moment reported that Rep. Nancy Mace (R-S.C.) is circulating the States Reform Act as a measure to legalize and tax cannabis on a federal level from the Republican side of the aisle.
Cantor Fitzgerald analyst Pablo Zuanic said late Friday the measure “significantly increases the probability of federal level marijuana reform” during the current term.
See Also: Cannabis sector is not banking on help from Congress before 2022 – MarketWatch
Cannabis also got a boost from the passage of the Congressional Infrastructure bill, which includes a proposal allowing cannabis scientists to buy research cannabis from local dispensaries instead of government-produced facilities.
Shares of U.S.-based cannabis companies jumped. The cannabis ETF THCX rose 7.4%, and the AdvisorShares Pure US Cannabis ETF MSOS, +6.15% jumped 10%.
Curaleaf CURA, +11.31% CURLF, +11.64% jumped 7.9% and Trulieve TCNNF, +7.28% advanced by 6.8%. Green Thumb Industries GTBIF, +7.24% rallied 11%, and Verano Holdings VRNOF, +7.36% jumped 8.1%. and Cresco Labs CRLBF, +8.30% rose by nearly 7%.
Among Canadian cannabis companies, Cronos Group CRON, +10.21% jumped 22.5%, Canopy Growth CGC, +12.94% WEED, +12.77% rose 9%, Aurora Cannabis ACB, +12.29% ACB, +12.49% rallied nearly 10% and Tilray Inc. TLRY, +9.11% ran up by 14%.
Most of these stocks remain in negative territory for the year, however, amid talk of oversupply in Canada and other market challenges. Any major moves on legalization on the federal level remained on the back burner, most Washington observers had said.
In a note to clients on Sunday, New Cannabis Ventures analyst Alan Brochstein flagged a missing earnings call announcement from Cronos Group as a potential signal of a material announcement from the company.
“Cronos Group is a large accelerated filer with the SEC, which means its Q3 financials are due on Tues., Nov. 9,” Brochstein said. “Historically, the company has provided investors with at least a week’s advance notice of its conference call, but there has been no call announced yet.”
Brochstein said it’s possible that the lack of notification could mean a deal is brewing, but then went on to say it was just an educated guess.
Either way, shares of Cronos Group remained near a 52-week lows even with Monday’s rally.
Cronos Group did not reply to an email from MarketWatch.
Canopy Growth gets downgrades
With the eye on U.S. developments, attention ebbed on Canadian producer Canopy Growth after its earnings miss on Friday. But the company still faced downgrades from analysts after its latest quarterly results missed projections.
Cowen analyst Vivien Azer cut her rating on Canopy Growth to market perform from outperform and said the company’s turnaround in the Canadian market is taking longer than expected.
CIBC analyst John Zamparo downgraded Canopy Growth to underperform from neutral.
“The primary factors that have supported Canopy’s premium valuation are strong revenue growth, an assumption of eventual market dominance, access to U.S. markets pending legalization, and a robust balance sheet,” he said. “We believe questions exist on all fronts.”
Even with Monday’s gains, shares of Canopy Growth are down 48% this year.
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>>> GrowGeneration Announces Mutual Termination of HGS Acquisition, Updates Guidance, and Enters New Mexico's Thriving Cannabis Market with Acquisition of All Seasons Gardening
Yahoo Finance
October 13, 2021
https://finance.yahoo.com/news/growgeneration-announces-mutual-termination-hgs-120000980.html
New Mexico becomes the 13th state with GrowGeneration retail locations
Full-Year revenue guidance is $440 to $452 million
DENVER, Oct. 13, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen"or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced that the Company and HGS Hydro mutually terminated the July 27, 2021, previously announced asset purchase agreement. The two companies will continue to work together to develop a mutually beneficial working relationship.
"This was a difficult decision regarding the HGS Hydro acquisition, but following appropriate due diligence and capital allocation analysis, we decided to mutually terminate the acquisition," said Darren Lampert, GrowGeneration's CEO. "Importantly, our near-term objectives are to build and acquire garden centers in new markets that are growth opportunities for the Company."
The Company pre-announced 2021 third-quarter revenue guidance of $114 million to $116 million, bringing year-to-date 2021 revenue to $330 to $332 million, up 150% from 2020. Same-store sales for the third quarter were up over 15%, versus the same period last year. The Company announced fourth quarter 2021 revenue guidance of $110 million to $120 million, incorporating all acquisitions and new stores announced to date. Full-year revenue guidance has been revised to $440 million to $452 million, following the termination of the planned acquisition of HGS Hydro. This acquisition was assumed to provide about $20 million of revenue for 2021. In addition, the Company expects adjusted EBITDA for the full year to be in the range of $47 million to $51 million. Adjusted EBITDA is a non-GAAP metric that represents net income before interest, taxes, depreciation, amortization and share based compensation.
The Company also announced its acquisition of All Seasons Gardening, an indoor-outdoor garden supply center specializing in hydroponics systems, lighting, and nutrients. All Seasons Gardening is the largest hydroponics retailer in New Mexico. With the acquisition of All Seasons Gardening, GrowGen's portfolio of hydroponic garden centers now includes 63 stores across 13 states.
"The All Seasons Gardening acquisition is a testament to our continued investment in best-in-class hydroponic suppliers in emerging adult-use markets across the U.S.," said Darren Lampert, GrowGeneration's CEO. "Importantly, it represents our entry into New Mexico's cannabis market, which is projected to become a $1 billion industry by 2026."
Founded in 2010, All Seasons Gardening carries both indoor and outdoor garden supplies at its retail location in Albuquerque, New Mexico. As part of the transaction, All Seasons Gardening' team of nine employees will join GrowGeneration's team of over 500 grow professionals.
"All Seasons Gardening has long been proud to serve growers in Albuquerque, New Mexico, with a comprehensive catalog of indoor-outdoor growing supplies. Joining forces with GrowGeneration, the nation's clear leader in hydroponics retail, allows us to leverage our combined decades of cultivation experience to meet the growing demands of New Mexico's flourishing legal cannabis industry," said All Seasons Gardening founder, Long Duong. The All Seasons Gardening acquisition is GrowGeneration's fourteenth acquired location this year.
For more information about GrowGeneration, Corp., or to locate its stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGeneration owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGeneration has 63 stores, which include 24 locations in California, 8 locations in Colorado, 7 locations in Michigan, 5 locations in Maine, 5 locations in Oklahoma, 4 locations in Oregon, 3 locations in Washington, 2 locations in Nevada, 1 location in Arizona, 1 location in Rhode Island,1 location in Florida, 1 location in Massachusetts and 1 location in New Mexico.
GrowGeneration also operates an online superstore for cultivators at growgeneration.com and B2B e-commerce platform, agron.io. GrowGeneration carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
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$STEV - Stevia Corp. Announces Non-Binding Purchase Offer for California-based Consumer Products Company
NEW YORK, NY / ACCESSWIRE / October 13, 2021 / Stevia Corp. (OTC PINK:STEV) ("Stevia Corp" or the "Company"), a healthcare company focused on the commercial development of products that support a healthy lifestyle announced today that it has submitted a non-binding purchase offer for a California-based consumer products company with multiple existing products, revenue and alleged profits. The company's products have received excellent online reviews from many consumers. Any final purchase agreements and a definitive closing is subject to extensive due diligence and there is no assurance that the seller will accept our current offer. The company was introduced to Stevia Corp. through a third-party relationship of the Chairman of Stevia Corp. If the current purchase offer is accepted by the selling company and the sale is closed, the current shareholders of Stevia Corp. will still own in excess of 90% of the public company. We are also reviewing other opportunities.
The current non-binding purchase offer is completely in line with the company's main goal of creating shareholder value. The seller's products seem to be well received by consumers based on many reviews of the company's products. Our due diligence will include a thorough review of financials, historic marketing budgets, repeat purchase data, manufacturing processes, competitive advantages and more.
Kenneth Maciora, Chairman and President of Stevia Corp. commented, "We are excited about the potential of this company and their products. To be clear, any closing is subject to our extensive due diligence and board approval and there is no assurance the sellers will accept our offer. We are not announcing the name of the company at this time for obvious reasons including the fact that we don't want to create a public announcement for competitive bids."
About Stevia Corp.
Stevia Corp. is a farm management company and healthcare company focused on developing highly nutritional, high value products through proprietary plant breeding, excellent agricultural methodologies and innovative post-harvest techniques. Stevia Corp was founded on the principal of implementing socially responsible, sustainable, quality agribusiness solutions to maximize the long-term efficient production of nutritional crops.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate.
Contact:
Kenneth Maciora
President
Stevia Corp.
(917) 670-9541
steviapresident@gmail.com
SOURCE: Stevia Corp.
View source version on accesswire.com:
https://www.accesswire.com/667887/Stevia-Corp-Announces-Non-Binding-Purchase-Offer-for-California-based-Consumer-Products-Company
>>> GrowGeneration Signs Distribution Agreement with Groundwork BioAg
Yahoo Finance
October 7, 2021
https://finance.yahoo.com/news/growgeneration-signs-distribution-agreement-groundwork-123000368.html
Expands nutrient and additive portfolio to include leading mycorrhizal inoculant DYNOMYCO via online superstore and retail locations.
DENVER, Colo. and MAZOR, Israel, Oct. 7, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG) ("GrowGen") the nation's largest chain of specialty hydroponic and organic garden centers, and Groundwork BioAg, a global bio-agriculture company, today announced that they have entered into a distribution agreement to offer DYNOMYCO®, a unique brand of highly-concentrated mycorrhizal inoculants specifically formulated for cannabis, to hydroponic and organic growers across the U.S. Representing two of the fastest growing segments in agriculture – cannabis and biologicals – the distribution agreement brings together GrowGen's commercial reach and marketing prowess with Groundwork BioAg's innovative and highly-effective mycorrhizal inoculants.
DYNOMYCO has exhibited strong efficacy in cannabis, with yield increases of 10%-45%, as well as increased cannabinoid content. DYNOMYCO also reduces dependency on phosphorus fertilizer, improves nutrient uptake, and reduces transplantation shock. Mycorrhizae are a cornerstone of regenerative agriculture best practices, and a key to maintaining plant root health in horticulture.
"Product portfolio expansion has become a strategic priority for GrowGen, and a key component of our long-term revenue generation plan," said Paul Rutenis, GrowGen's Chief Merchant Officer. "We are proud to bring Groundwork BioAg's unique technologies and proprietary mycorrhizal products to GrowGen and our family of growers who are on the leading edge of farm management practices to produce the highest quality plants."
Following 30 years of research and product development, DYNOMYCO is highly-concentrated and formulated for convenient application and efficacy on cannabis plants and is suitable for individual growers and large commercial farms alike. The product is suitable for organic cultivation and is certified by Clean Green, Organic Materials Review Institute (OMRI), and California Department of Food and Agriculture Organic Input Material Program (CDFA-OIM).
"Through our partnership with GrowGen, one of the most respected names in hydroponic and organic gardening, we are able to ensure growers have access to our unique formulation of mycorrhizal inoculants for maximum performance," said Dan Grotsky, Co-Founder and Chief Growth Officer of Groundwork BioAg, and DYNOMYCO's General Manager. "DYNOMYCO continues to gain tremendous momentum among cannabis growers. Through this strategic partnership, we can ensure growers across the nation have easy access to a product they love from a retailer they trust."
Starting in October 2021, growers will be able to purchase DYNOMYCO directly from GrowGen's 62 retail hydroponic and organic garden centers or on GrowGeneration's online superstore: www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 62 stores, which include 24 locations in California, 8 locations in Colorado, 7 locations in Michigan, 5 locations in Maine, 5 locations in Oklahoma, 4 locations in Oregon, 3 locations in Washington, 2 locations in Nevada, 1 location in Arizona, 1 location in Rhode Island,1 location in Florida, and 1 location in Massachusetts.
GrowGen also operates an online superstore for cultivators at growgeneration.com and B2B e-commerce platform, agron.io. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
About Groundwork BioAg:
Groundwork BioAg, a global bioagriculture company, leverages the natural power of mycorrhizal fungi to improve the productivity, sustainability and profitability of commercial agriculture and expand regenerative agriculture practices. Groundwork BioAg is the first to use innovative techniques to solve challenges inherent in high-volume mycorrhizal inoculant production. We will not rest until every hectare of arable land is protected by mycorrhizae and every farmer benefits from higher crop yields while preserving our soils. For more information, visit www.dynomyco.com, or follow: Facebook, Twitter, Instagram, LinkedIn, YouTube.
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>>> Innovative Industrial Properties Acquires Missouri Property and Enters Into Long-Term Lease with CPC of Missouri – Smithville
Businesswire
September 20, 2021
https://finance.yahoo.com/news/innovative-industrial-properties-acquires-missouri-110000111.html
IIP Expands Portfolio to 75 Properties Comprising 7.0 Million Square Feet in 19 States
SAN DIEGO, September 20, 2021--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced that it closed on the acquisition of a property in Missouri, and entered into a long-term lease with CPC of Missouri – Smithville, LLC (CPC), a subsidiary of Calyx Peak, Inc. (Calyx).
The purchase price for the property was $1.53 million (excluding transaction costs). CPC is expected to construct approximately 83,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $26.72 million. Assuming full reimbursement for the construction, IIP’s total investment in the property is expected to be $28.25 million (excluding transaction costs). CPC intends to operate the property upon completion of construction as a licensed cannabis cultivation and processing facility.
As the pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
"We are excited to announce this new long-term real estate partnership with Calyx, expanding our footprint into Missouri as our 19th state," said Paul Smithers, President and Chief Executive Officer of IIP. "Calyx has developed a strong reputation for quality, award-winning cannabis products in California, and we look forward to working closely with the Calyx team in coming months on the development of this new state-of-the-art facility in Missouri, as Calyx expands its operational platform to meet the tremendous growth in demand from patients throughout the state."
Calyx currently operates a 235,000 square foot cannabis cultivation facility in California, and expects to begin construction on a dispensary location in southern California in the near future. Calyx also has a Tier 3 cultivation license and a provisional adult-use dispensary license in Massachusetts, and expects to open a dispensary in the West Plaza neighborhood of Kansas City, Missouri later this year. Founded in 2016, Calyx is headquartered in Massachusetts and plans to be vertically integrated in three states by the end of 2022.
"We are thrilled to enter into this long-term real estate partnership with IIP for the development of this new facility in Missouri," said Erin Carachilo, CEO of Calyx, and Lee Hoffman of CPC. "While less than one year since the launch of Missouri’s medical cannabis program, we have witnessed a tremendous rate of adoption by patients and growth in sales throughout the state, and look forward to completing the development of this facility, which will be designed with next-generation systems in a highly controlled environment that will enable us to bring our premium, diversified genetics at scale to Missouri patients."
Missouri, with over six million residents, first launched medical cannabis sales in October of last year, and regulated medical-use sales have grown rapidly since then, with total sales in August 2021 alone of approximately $22 million, according to the Missouri Department of Health and Senior Services. As of August 31, 2021, there were over 177,000 patient applications and 5,800 caregiver applications in the state. Missouri’s regulations provide for numerous qualifying medical conditions for treatment with cannabis, including, among others, cancer, epilepsy, PTSD, HIV/AIDS, terminal illness, Alzheimer’s and any chronic medical condition normally treated with prescription medication that can lead to dependence. In addition, petitions for Missouri voters to approve adoption of an adult-use cannabis program are targeting the November 2022 ballot.
As of September 20, 2021, IIP owned 75 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington, representing a total of approximately 7.0 million rentable square feet (including approximately 2.6 million rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 16.6 years. As of September 20, 2021, IIP had committed approximately $1.8 billion across its portfolio, including capital invested to date (excluding transaction costs) and additional capital commitments to fund future construction and tenant improvements at IIP’s properties, but excluding an $18.5 million loan from IIP to a developer for construction of a regulated cannabis cultivation and processing facility in California.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
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>>> Innovative Industrial Properties has big advantages
Motley Fool
9-18-21
https://www.fool.com/investing/2021/09/18/3-marijuana-stocks-you-can-buy-and-hold-for-the-ne/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Innovative Industrial Properties' stock has risen more than 24% this year. There are several things that make Innovative a great long-term cannabis stock: relatively low risk, a high dividend, and a decent-sized moat for a business model.
The risk is low because, unlike the other two stocks, Innovative is a real estate investment trust (REIT) that doesn't deal directly with marijuana, so it has little to worry about in terms of federal or state laws regarding the sale of cannabis.
It is a REIT that buys and leases back properties to cannabis companies, offering immediate cash in return for long-term triple-net leases. This model produces steady funds from operations for IIP. While it is possible a cannabis client could have financial difficulties and not be able to pay rent, Innovative could easily turn around and rent the facility to another cannabis company. Ironically, the biggest risk to Innovative is the potential federal legalization of cannabis sales. That would lead to more traditional financing being opened to cannabis companies, so they may not need to sell their facilities to raise cash. However, that's still a long way off -- and even then, I think fledgling cannabis companies will still try to free up cash by selling their properties and entering a long-term lease.
Innovative's moat stems from its first-mover's status as a cannabis REIT. Since it started in 2016, the company has grown to 74 properties across 18 states, with a total of 6.8 million rentable square feet. Smaller REITs, such as AFC Gamma and Power REIT, have started to move in on what is a lucrative space, but those two companies' market caps combined are less than 10% of Innovative's $5.62 billion market cap. Innovative has a big edge in experience, name recognition, and funds.
In its second-quarter earnings report, the company reported adjusted funds from operation (AFFO) of $81.4 million through six months, compared to $38.8 million for the same period in 2020. Its six-month revenue was $91.7 million, compared to $45.4 million year over year.
Innovative just raised its quarterly dividend 32% to $1.40 a share, offering a yield of 2.45%. Since the company began offering a dividend in 2017, it has increased its dividend 833%. This is one of the biggest reasons that Innovative is a good long-term cannabis investment -- those dividends combine with the company's stock growth to provide a solid total return. The dividend is well-covered, with an AFFO-to-dividend-payout ratio of 85%, and the company says it plans to keep it within a range of 75% to 85%.
Making the best decision for the long haul
Of the three marijuana stocks, Curaleaf is having the most explosive growth. Thanks to its share price being down for the year, it presents a great entry point. Trulieve's deal to purchase Harvest Health will also fuel big-time growth and it looks like a better deal than Curaleaf because of the bad publicity.
Innovative Industrial Properties has more risk than the other two stocks in the long-term thanks to the possibility of federal legalization of marijuana, but I still see it having the least amount of short-term danger and the highest rate of total return.
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>>> GrowGeneration Announces Opening of the Largest Hydroponic Garden Centers in Los Angeles County
Yahoo Finance
September 15, 2021
https://finance.yahoo.com/news/growgeneration-announces-opening-largest-hydroponic-123000236.html
GrowGen's Super Garden Centers Add 122,000 square feet of Retail and Distribution Space
DENVER, Sept. 15, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced the opening of two new hydroponic garden centers to serve the largest hydroponic market in the country, Los Angeles County, California. These locations become the 11th and 12th locations in Southern California. Both locations will be opened for business on September 24, 2021.
"These two stores, the largest hydroponic garden centers in Southern California, positions GrowGen to sell to the highest concentration of commercial indoor cannabis growers in California. Our downtown LA location is 52,000-square foot, with a full soil yard and over 50 parking spots where growers can conveniently shop and access the largest selection of hydroponic equipment and supplies. Additionally, our 70,000 square foot location, near the ports of Long Beach, will help us expand our private label business operating as a distribution center for our West region locations. GrowGen is defining the next generation of garden centers, with the largest selection, best service and grow professionals, to deliver solutions for all types of growers.
On September 24, 2021, GrowGen will celebrate the opening of its location near the Long Beach Ports at 19516 South Susana Road, Rancho Dominguez, CA. The grand opening event will take place from 12:00 pm to 6:00 pm and will include exclusive deals on top industry brands, as well as food trucks and live entertainment.
On September 25, 2021, GrowGen will celebrate the opening of its downtown Los Angeles location at 1651 Naomi Street, Los Angeles, CA. The downtown LA grand opening event will take place from 12:00 pm to 6:00 pm and will also include exclusive deals on top industry brands, as well as food trucks and live entertainment.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 62 stores, which include 24 locations in California, 8 locations in Colorado, 7 locations in Michigan, 5 locations in Maine, 5 locations in Oklahoma, 4 locations in Oregon, 3 locations in Washington, 2 locations in Nevada, 1 location in Arizona, 1 location in Rhode Island,1 location in Florida, and 1 location in Massachusetts.
GrowGen also operates an online superstore for cultivators at growgeneration.com and B2B e-commerce platform, agron.io. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
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>>> Innovative Industrial Properties Declares Third Quarter 2021 Dividends
Businesswire
September 15, 2021
https://finance.yahoo.com/news/innovative-industrial-properties-declares-third-110000303.html
7% Increase from Prior Quarter Represents Twelfth Increase in Common Stock Dividend
SAN DIEGO, September 15, 2021--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that its board of directors has declared a third quarter 2021 dividend of $1.50 per share of common stock, representing an approximately 7% increase over IIP’s second quarter 2021 dividend of $1.40 per share of common stock, and an approximately 28% increase over IIP’s third quarter 2020 dividend of $1.17 per share of common stock. The dividend is equivalent to an annualized dividend of $6.00 per common share, and is the twelfth dividend increase since IIP completed its initial public offering in December 2016.
Additionally, IIP announced today that its board of directors has declared a regular quarterly dividend of $0.5625 per share of IIP’s 9.00% Series A Cumulative Redeemable Preferred Stock.
The dividends are payable on October 15, 2021 to stockholders of record at the close of business on September 30, 2021.
In addition, IIP announced today that, going forward as a general matter, its board of directors expects to evaluate adjustments to the level of IIP’s quarterly common stock dividend every six months, with any adjustments expected to be declared in the first quarter and third quarter of each year. However, the decision to declare and pay dividends in any quarter continues to be at the sole discretion of IIP’s board of directors.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
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Scotts Miracle-Gro - >>> 3 Beaten-Down Dividend Stocks to Buy Right Now
These dividend stocks appear to be poised to bounce back.
Motley Fool
by Keith Speights
8-23-21
https://www.fool.com/investing/2021/08/23/3-beaten-down-dividend-stocks-to-buy-right-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
A cannabis supplier facing temporary headwinds
Scotts Miracle-Gro (NYSE:SMG) has been a household name for decades thanks to its consumer lawn and garden products. In recent years, though, the company has also positioned itself as the leading supplier of hydroponics products to the cannabis industry. It offers a reliable dividend that currently yields 1.7%.
The stock is nearly 40% below its high from a few months ago. CEO Jim Hagedorn explained why in Scotts' second-quarter conference call earlier this month, stating that the company was "finally at the inflection point everyone knew was coming."
Hagedorn acknowledged that Scotts faces more challenging year-over-year comparisons. The company's consumer and cannabis businesses soared in 2020 due to the COVID-19 pandemic. However, consumers are now returning to their normal routines.
In addition, Scotts has encountered other headwinds. Hagedorn blamed adverse weather conditions for constraining the company's growth. He noted that snow in some key markets on Mother's Day weekend, which is typically the biggest weekend of the gardening season, hurt sales. Much of the Midwest and the northeast U.S. experienced record cold on Memorial Day. Heat and drought out west negatively affected Scotts' business as well.
The company's margins have also been pressured due to rising commodity prices. Scotts has been affected by higher prices for urea, diesel, and resin. Grass seed prices have also soared.
There's good news, though: These should be temporary issues. Scotts will move past the difficult year-over-year comparisons. The weather won't always be bad. Scotts will be able to pass on higher commodity prices by increasing its own pricing.
Even better, Scotts' growth prospects remain very good. The U.S. cannabis market continues to expand. It's possible that federal cannabis reform could provide an even greater boost to the cannabis industry. Like Brookfield Renewable, Scotts is a beaten-down dividend stock that isn't likely to remain beaten down for too much longer.
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IIPR - >>> This REIT's stock popped after another strong quarter
Motley Fool
https://www.fool.com/investing/2021/08/20/2-no-brainer-stocks-to-buy-in-cannabis-sector/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Innovative Industrial Properties is not directly linked to cannabis, but management has taken good advantage of the marijuana boom in the U.S. Its business model, in which it acquires properties from medical cannabis companies and leases them back to the sellers, has worked wonders for both parties; because cannabis is illegal at the federal level in the U.S., access to capital can be hard for marijuana companies to find in other ways. Besides allowing investors indirect access to the industry, Innovative is also a real estate investment trust (or REIT), meaning it is mandated by law to pay 90% of its taxable income as dividends.
As expected, Innovative's second quarter showed another great performance, and its stock is up 10% since those results were released Aug. 5. In the quarter ended June 30, total revenue jumped 101% year over year to $49 million. (The company's main source of income is rental income paid by the cannabis companies.) Rising revenue also brought in another quarter of profits. Net income grew to $29 million from $13 million in the year-ago period, and adjusted funds from operations, or AFFO, surged by 105% to $43 million for the quarter.
For a REIT, AFFO plays the same role as net earnings do for a non-REIT, showing how much cash is available to be paid to shareholders as dividends. Rising AFFO is a good sign, meaning a business (in this case, Innovative) is capable of consistently paying dividends. The company paid a quarterly dividend of $1.40 per share on July 15, which was an increase of 6% from the first quarter and a 32% hike from the year-ago period. It marked the 11th dividend increase since its initial public offering in 2016.
Currently, the company owns 73 properties in 18 states totaling 6.8 million square feet of space; 100% of its properties are leased out by cannabis companies. Between April 1 and Aug. 4, the company made five acquisitions of new properties and three lease amendments for existing properties. Some of its tenants include popular cannabis players Cresco Labs, Trulieve Cannabis, Curaleaf Holdings, and Green Thumb Industries. These companies' expansion plans, and ever-expanding state legalization, lead me to believe Innovative will continue to grow.
If you want to create wealth by investing, you need to keep a long time frame in mind. Growth stocks need time to show their full potential, especially in a nascent industry like marijuana. Both Trulieve and Innovative have strong financials and can flourish as the industry expands. Risk-averse investors can start with a small investment in these high-growth pot stocks that have the potential to double their money five to 10 years down the line.
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>>> Innovative Industrial Properties Acquires Property in Maryland and Expands Real Estate Partnership With Harvest
Yahoo Finance
August 16, 2021
https://finance.yahoo.com/news/innovative-industrial-properties-acquires-property-203000699.html
SAN DIEGO, August 16, 2021--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a property in Hancock, Maryland, and entered into a long-term lease with a subsidiary of Harvest Health & Recreation Inc. (Harvest) (CSE: HARV, OTCQX: HRVSF).
The purchase price for the property was approximately $16.6 million (excluding transaction costs). Harvest is expected to complete additional tenant improvements for the property as a regulated cannabis cultivation and processing facility, for which IIP has agreed to provide reimbursement of up to $12.9 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property is expected to be approximately $29.5 million. Earlier this year, IIP acquired a Florida property and executed a long-term lease with Harvest, which comprises approximately 295,000 square feet and for which IIP expects its total investment to be approximately $41.7 million, assuming full reimbursement for tenant improvements.
Founded in 2011, Harvest is a leading vertically integrated U.S. multi-state operator with licensed operations in Arizona, California, Colorado, Florida, Maryland, Nevada and Pennsylvania, including 44 retail locations, 11 cultivation and processing locations and over 1,600 employees across its operations. In May 2021, Trulieve Cannabis Corp., another IIP tenant partner in Florida and Massachusetts, announced that it had entered into an agreement to acquire Harvest, subject to the satisfaction of certain conditions.
"We are excited to further expand our long-term real estate partnership with Harvest in Maryland," said Paul Smithers, President and Chief Executive Officer of IIP. "Harvest continues to execute well on its business plan, with a tremendous vertically integrated footprint across some of the strongest regulated cannabis markets in the United States. We look forward to working closely with Harvest as they further build out their production capacity in Maryland to meet the continued strong growth in demand from patients across the state, as well as potential for expansion of the current program to regulated adult-use in the nearer term."
As the pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
Maryland implemented its medical-use cannabis program in 2017, with limited licenses to cultivate, process and dispense cannabis. Qualifying medical conditions for the program include, among others, anorexia, conditions resulting in a patient receiving hospice or palliative care, PTSD, seizures, chronic pain, severe nausea and severe or persistent muscle spasms, as well as other chronic, severe medical conditions if other treatments have been ineffective and the recommending healthcare professional believes medical cannabis can provide some relief. Similar to other states, state regulatory authorities have expanded the program over time, including allowing physician assistants to make recommendations for medical cannabis patients and expanding the forms by which medical cannabis can be consumed. According to the Maryland Medical Cannabis Commission, there were approximately $140 million in medical cannabis sales during the three months ended June 30, 2021. In addition, according to a Goucher College poll conducted in February of this year, approximately two-thirds of Maryland residents support the legalization of adult-use cannabis. Last month, Maryland House Speaker Adrienne Jones pledged that lawmakers would pass a bill to put the question of legalization of cannabis for adult use to voters as a referendum on the 2022 ballot. Including this property, IIP owns two properties in Maryland, comprising approximately 184,000 rentable square feet (including square footage under redevelopment) and representing a total investment, including commitments to fund future tenant improvements, of approximately $51.9 million.
As of August 16, 2021, IIP owned 74 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington, representing a total of approximately 6.9 million rentable square feet (including approximately 2.5 million rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 16.6 years. As of August 16, 2021, IIP had committed approximately $1.7 billion across its portfolio, including capital invested to date (excluding transaction costs) and additional capital commitments to fund future construction and tenant improvements at IIP’s properties, but excluding an $18.5 million loan from IIP to a developer for construction of a regulated cannabis cultivation and processing facility in California.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest's mission is to improve lives through the goodness of cannabis. We hope you'll join us on our journey: https://harvesthoc.com.
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SHWZ
Schwazze Announces Second Quarter Results
Revenue Increases 467% to $30.7 Million Compared to $5.4 Million in Q1 2020
Adjusted EBITDA is $10.0 Million, 32.6% of Revenue
On Track to Meet Guidance of Annual Projected Revenue of Approximately $110 Million – $125 Million Annual Projected Adjusted EBITDA $30 Million – $36 Million
Conference Call and Webcast Scheduled for Today – 4:30 pm ET
DENVER, Aug. 16, 2021 /PRNewswire/ – Schwazze, (OTCQX: SHWZ) (“Schwazze” or the “Company”), announced financial results for its second quarter year ended June 30, 2021 (“Q2 2021”).
Financial Summary for Q2 2021:
Revenues of $30.7 million grew 467% over Q2 2020 and 58.9% over Q1 2021
Gross Margin of $14.9 million was 48.5%, 576 bps better than Q2 2020 and 1,099 bps over Q1 2021
Adjusted EBITDA of $10.0 million was 32.6% of revenue, 239 bps above Q1 2021
Net Income was $4.4 million or $0.08 Diluted Earnings per share compared to a Net Loss in Q2 2020 of ($6.6) million or ($0.16) Diluted Net Loss per share and compared to a Net Loss in Q1 2021 of ($3.6) million or ($0.09) Diluted Net Loss per share
Cash Flow from operations for the six-month period was $1.4 million
Same store sales of the seventeen Star Buds dispensaries when compared to last year were $21.5M up 16%.
Average basket size was $61.04 up 6.4%
Recorded customer visits were 357,056 up 8.9%
Note: Schwazze did not own all the assets in 2020 and are using unaudited numbers for this comparison.
Check out the link for the full story.
https://www.newcannabisventures.com/colorado-cannabis-company-schwazze-reports-30-7-million-q2-revenue/
>>> GrowGeneration Reports Record Second Quarter 2021 Financial Results
Yahoo Finance
August 12, 2021
https://finance.yahoo.com/news/growgeneration-reports-record-second-quarter-110000111.html
Record Revenue increased 190% to $125.9 million;
Net Income of $6.7 million up 161%;
Adjusted EBITDA of $14.5 million, a 229% increase;
2021 Revenue Guidance Raised to $455 to $475 Million
Comparable Store Sales for the Quarter Increased 60% from Prior Year
Record Diluted Earnings of $0.11 Per Share in the Quarter
DENVER, Aug. 12, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company"), the largest chain of specialty hydroponic and organic garden centers with 58 locations across 12 states, today reported record second quarter 2021 revenues of $125.9 million, versus $43.5 million in the same period last year.
The Company also reported record second quarter 2021 GAAP pre-tax net income of approximately $9.6 million compared to pre-tax net income of $2.7 million in the same period last year. Diluted earnings per share, inclusive of tax expense, was $0.11 compared to a $0.06 in the same period last year.
Non-GAAP earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) was $14.5 million, compared to $4.4 million in the same period last year, or $0.24 per share, versus $0.11 in the prior years quarter.
Darren Lampert, GrowGeneration's Co-Founder and CEO stated, "The GrowGen team delivered an exceptionally strong second quarter, with revenues up 190% compared to the same period last year, with same store sales up 60%. The entire enterprise generated more revenue in the first half of 2021 than all of 2020 and adjusted EBITDA in the first half of 2021 was more than all previous periods combined. For the year, we closed 12 acquisitions, adding 20 hydroponic retail locations, bringing our total store count to 58. Our ability to attract and purchase the "best of breed" and largest hydroponic operators in the country was again evident with our signing of HGS Hydro, the country's third largest hydroponic chain. The strategies implemented several quarters ago are now positively impacting margins. We increased our inventory positions across all key product categories to get ahead of price increases, as well as expanded more private label purchases. Our private-label and proprietary products now account for approximately 7% of our overall sales. I am proud and encouraged with our 170 basis point increase in gross profit margin. On a per share basis, adjusted EBITDA was $0.24 for the quarter versus $0.11 last year. These increases were accomplished despite port delays, supply chain interruptions, and increases in container costs. Due to construction and building delays, we now believe the two Southern California and the Ardmore, OK, store openings will open in the fourth quarter. The company continues to focus on building out a world-class supply chain, with omni-channel functionality, that will allow the company to continue to deliver " just in time" inventory for all types of growers and cultivators."
Financial Highlights for Second Quarter 2021 Compared to Second Quarter 2020
Revenues rose 190% to $125.9 million for second quarter 2021, versus $43.5 million, for the same period last year.
Same-store sales at 24 locations open for the same period in 2020 and 2021 were $62.1 million in second quarter 2021 versus $38.9 million for the same period last year, a 60% increase year over year.
Gross profit margin for second quarter 2021 was 28.4% compared to 26.7% in the same quarter last year, an increase of 170 basis points.
Income before tax was $9.6 million for the second quarter 2021 versus $2.7 million for the same period last year.
Net income was $6.7 million, or $0.11 per share based on a diluted share count of 60.2 million.
Adjusted EBITDA was $14.5 million for second quarter 2021 versus $4.4 million for the same period last year.
Private-label sales, inclusive of Power Si and Char Coir, were 7% of revenue compared to less than 1% for the same period last year.
Ecommerce revenue was $12 million compared to $3.3 million for the same period last year, including Agron.io and all of our e-commerce sites.
Cash and short-term securities as of June 30, 2021 was $124.5 million.
Financial Highlights for Six Months 2021 compared to the same period 2020
Net revenue for the six months ended June 30,2021, was $215.9 million, compared to $76.4 million for the six months ended June 30, 2020, an increase of $139.5 million or 182%.
Gross profit margin was 28.3% for the six months ended June 30, 2021 compared to 26.9% for the six months ended June 30, 2020.
Net income for the six months ended June 30, 2021 was $12.9 million, compared to net income of $0.5 million for the six months ended June 30,2020.
M&A Activity
The company acquired the following hydroponic equipment and organic garden centers in the second quarter of 2021:
In April 2021, the Company acquired Downriver Hydroponics, a Michigan-based indoor garden center in Wayne County.
In May 2021, the Company acquired The Harvest Company, a Northern California-based garden center with operations in Redding and Hayfork, CA.
Expansion Efforts
The Company's supply chain spans approximately 875,000 square feet of retail and warehouse space, across existing locations and signed leases in new locations, spanning 13 states.
In April 2021, the Company entered into a lease for a 40,000 sq. ft. facility in Jackson, MS, the 13th state of operation.
In May 2021, the Company announced the building of a sixth Oklahoma location in Ardmore.
The Company announced the addition of 52,000 square feet in downtown Los Angeles and 70,000 square feet in Rancho Dominguez, California, that will serve as distribution and fulfillment locations for the Company.
The Company is in the process of building additional locations that will serve as fulfillment centers that include 25,000 square feet in Phoenix, Arizona and 58,000 square feet in Medley, Florida. These locations are expected to be opened by fall of 2021.
Subsequent Events
In July 2021, the Company entered into an asset purchase agreement to acquire HGS Hydro, the nation's third largest chain of hydroponic garden centers, with six stores across Michigan and a seventh store slated to open in the fall of 2021.
In July 2021, the Company acquired Aqua Serene, a southern Oregon-based hydroponic garden center with stores in Eugene and Ashland, Oregon.
In July 2021, the Company acquired Mendocino Greenhouse and Garden Supply, a Northern California-based hydroponic garden center, located in Mendocino, California.
Conference Call
The company will host a conference call August 12, 2021 at 9:00AM Eastern Time. To participate in the call, please dial 888-390-0546 (domestic); 416-764-8688 (International). Participants should request the GrowGeneration Earnings Call or provide confirmation code: 94991680. This call is being webcast and can be accessed on the Investor Relations section of GrowGeneration website at: https://ir.growgeneration.com/news-events/ir-calendar.
A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.
About GrowGeneration Corp:
GrowGen owns and operates specialty retail hydroponic and organic gardening centers. Currently, GrowGen has 58 stores, which include 21 locations in California, 8 locations in Colorado, 7 locations in Michigan, 5 locations in Maine, 5 locations in Oklahoma, 2 locations in Nevada, 2 locations in Washington, 4 locations in Oregon, 1 location in Arizona, 1 location in Rhode Island,1 location in Florida, and 1 location in Massachusetts. GrowGen also operates an online superstore for cultivators at growgeneration.com and B2B ERP platform, agron.io. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
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HempFusion’s CBD strategy ahead of the competition in the CBD space
https://www.dropbox.com/s/bgd6ix3rj79aa02/HempFusion%20Corporate%20Presentation%20April.pdf?dl=0
>>> Senate Marijuana Bill Would Open Up Banking, Stock Exchanges
Bloomberg
By Tiffany Kary and Steven T. Dennis
July 14, 2021
https://www.bloomberg.com/news/articles/2021-07-13/schumer-s-pot-bill-said-to-open-up-banking-stock-exchanges
Schumer bill to take marijuana off list of controlled drugs
Person familiar with talks says drug tests an ongoing issue
A new Senate proposal to legalize marijuana would let cannabis companies use banking services and trade on major stock exchanges, according to a person involved in negotiations on the legislation, a potentially dramatic breakthrough for an industry long stymied by federal restrictions.
The sweeping new legislation, a draft of which Senate Democrats plan to release Wednesday, would also direct some tax revenue from marijuana sales to minority communities, which faced disproportionate arrests for marijuana possession, keep some federal drug testing provisions, and give the U.S. Food and Drug Administration oversight of cannabis regulation, the person said.
Past proposals to legalize marijuana have stalled amid a lack of support from Republicans. The new Democratic proposal, from Senate Majority Leader Chuck Schumer, Finance Committee Chairman Ron Wyden and New Jersey Senator Cory Booker, is more comprehensive than previous efforts in how it addresses regulations.
“It is time for Congress to end the federal marijuana prohibition and reinvest in communities most impacted by the failed War on Drugs,” Booker said.
Some cannabis companies rose on the news in late trading Tuesday. Tilray Inc.’s shares rose as much as 4.5%, Canopy Growth Corp. rose 1.6% and Aurora Cannabis Inc. climbed 1.7%.
According to details of a discussion draft obtained by Bloomberg, Democrats’ proposal would legalize and regulate marijuana at the federal level but allow states to keep their own penalties. While it stipulates that states can’t prohibit cannabis crossing their borders for transport to another state, it leaves open questions about the controversial topic of interstate commerce -- which would affect large multi-state cannabis companies.
Nonviolent federal marijuana offenses would be expunged from records, and those convictions would no longer be used to deny federal benefits or affect immigration status.
The decision not to pursue abolishing federal drug testing was controversial, and is likely to be a hot topic among senators, according to the person involved in negotiations over the past year.
Taking marijuana off the list of controlled substances, rather than simply re-listing it as a less dangerous drug or decriminalizing possession, would remove the most difficult regulatory burdens from U.S. marijuana companies, allowing them to take tax deductions, hold bank accounts and loans, and list on U.S. stock exchanges such as the Nasdaq and the NYSE.
A new federal excise tax would phase in over several years to 25%. The first $20 million in sales per company would have a 50% cut in the tax rate, an attempt to encourage smaller marijuana businesses.
Proceeds would pay for a trust fund to reinvest in communities most impacted by the drug war, as well as public health and safety research. The proposal also seeks input on whether research dollars could be steered specifically to Historically Black Colleges and Universities.
Marijuana would be regulated by multiple agencies including the FDA; the Alcohol and Tobacco Tax and Trade Bureau; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The bill would give the FDA oversight not just of pharmaceutical products that involve cannabis, but also of food products, the person said. As of the most recent draft, it was unclear whether premarket approvals would be needed for cannabis products.
The Transportation Department and the Department of Health and Human Services would be directed to collect data on cannabis-impaired driving and do research that could lead to a standard for impaired driving -- as that and the effect of the drug on fetal development are among “crucial gaps” in understanding the already widely-used substance, according to the discussion draft summary.
The senators are asking for feedback on the legislation by Sept. 1 as they prepare to formally introduce the measure.
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>>> 4 Things About Innovative Industrial Properties That Smart Investors Know
It doesn't need to do anything differently to keep succeeding.
Motley Fool
by Alex Carchidi
Jul 17, 2021
https://www.fool.com/investing/2021/07/17/3-things-about-innovative-industrial-properties-th/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Key Points
Innovative Industrial Properties is uniquely positioned to reward cannabis industry investors.
Even if cannabis isn't fully legalized anytime soon, IIP will continue to be a successful company.
IIP's business model makes it significantly safer than other cannabis stocks.
Innovative Industrial Properties (NYSE:IIPR) is one of the hottest and most stable competitors in the cannabis industry, but you won't find it selling joints. In fact, when it comes to joints, it's a buyer. When a medical marijuana company needs cash to grow but it only has real estate in hand, it can sell the joint (that is, the place) where it cultivates cannabis to IIP, which then leases it back as the landlord.
As shown by its ongoing efforts to build an empire of medicinal cannabis production facilities, IIP isn't a typical real estate investment trust (REIT). For now, it's the only one of its kind. And while the stock could massively benefit from the big changes that would come with cannabis legalization in the U.S., smart investors know that there's a handful of powerful but more subtle factors in its favor which are worth knowing about.
1. Vacancies are highly unlikely
The beauty of Innovative Industrial's business model is that there's a very low chance of any of its properties being vacant. As mentioned previously, the company performs sale-leaseback transactions in which it buys actively operating cannabis cultivation facilities, then leases them back to the former owners immediately thereafter. The unit's occupants stay right where they are, and their business supports their ongoing rent payments to the new property owner, IIP.
Even if the tenants were in danger of being insolvent before the leaseback, the infusion of cash from the sale of their property is probably enough to grease the wheels for a while -- assuming that a nearly insolvent company could pass IIP's stringent vetting and demands for collateral, of course.
In total, the combination of leased-upon-acquisition properties and careful evaluation of potential tenants makes for an ironclad defense against vacancies. As of July 6, IIP's holdings were 100% rented out, and it's entirely reasonable for investors to assume that this will continue to be the case for the foreseeable future, even as the company acquires new space.
2. Income from existing leases rises annually, and property value could, too
One of the best features of this stock is that it doesn't rely on the growth of its underlying market (cannabis) to keep expanding its revenue base.
Even if IIP doesn't perform any sale-leasebacks in a given year, it'll still make more rent money than the previous year. The reason for this is quite simple: It's mandatory. Per the terms of most of its leasebacks, the company insists on annual rent raises of up to 4.5%.
Obviously, that means its rental revenue compounds over time. And with most of its leases ranging from 10 to 20 years in duration, there's plenty of time for revenue from an individual lease to grow and grow and grow. Right now, across all its properties, the weighted average remaining lease term is 16.7 years.
Importantly, IIP's real estate could also increase in value in the long term. When its tenants want to make certain additions or modifications to their units, the company reimburses them for some of the costs. The value of the units then goes up, because other cannabis companies might want to make use of the new facilities. That's favorable for shareholders, as it lets IIP continue to reinvest some of its excess cash into its collection and leaves it more prepared to win higher rates from future tenants.
3. The dividend will probably continue to rise
Since its inception in the second quarter of 2017 at $0.15 per share, IIP's dividend has grown to reach $1.40 as of the second quarter of 2021. And while its growth has occasionally stalled for a couple of quarters, the company has so far always managed to increase it shortly thereafter.
While its current dividend yield of about 2.81% isn't especially attractive to new investors, the appeal of a sharply rising payout over time is hard to deny. Every time the dividend rises, holders see the cost basis drop for their shares.
In the most recent increase, announced June 15, the payment grew by 6% compared to the prior quarter, and 32% compared to the second quarter of the prior year.
Smart investors also recognize that IIP's dividend is extremely secure. As long as it has tenants, there's not much that can threaten its bottom line.
4. Legalization could be a mixed blessing
Part of IIP's appeal to its tenants is that they may struggle to get financing through traditional avenues like banks. As cannabis is still illegal at the federal level in the U.S., many payment processors and other financial institutions refuse to work with medicinal marijuana companies. So, IIP fills the gap by giving them access to capital.
But it's unclear whether tenants will still need its services if marijuana is legalized nationwide. Once restrictions on banking ease, it might be more lucrative for businesses to simply take out a loan and retain control of their real estate. That'd make it significantly harder for IIP to acquire new tenants and new properties, though it could still rely on income from its existing leases.
For the moment, management seems to see the growth of the company's total addressable market as a positive thing. And the company could potentially work with cultivators that are in need of cash in addition to the capital raised from traditional banking institutions post-legalization. In short, smart investors are aware that legalization may be a wild card.
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>>> U.S. Pot Legalization Bill Gets a Frosty Reception
Bloomberg
By Tiffany Kary
July 19, 2021
https://www.bloomberg.com/news/articles/2021-07-19/pot-legalization-bill-gets-a-frosty-reception-cannabis-weekly
Interest groups seek potency caps and worker protections
Compromises will alter legislation, Cantor analyst says
Tilray CEO Sees Schumer's Pot Bill as Growth Boon
The U.S. cannabis industry had eagerly awaited a federal legalization bill that executives, investors and interest groups had hoped would be a panacea for the partisan divide over a hotly contested issue.
What they saw last week from Senate Majority Leader Chuck Schumer left many underwhelmed.
Cannabis stocks flagged after the bill was unveiled, and critics piled on from all directions. It’s not a surprise that the legislation wouldn’t please everyone, given the controversies around cannabis. Even the bill’s own authors acknowledge shortcomings, saying in a summary of the proposal that there’s still no standard to measure drugged driving, or research on how marijuana affects fetal health, and that limits their ability to be as comprehensive as they’d like. The plan is to fund more research on those and other topics, but that could take years.
Read More: Schumer’s Pot Bill Would Open Up Banking, Stock Exchanges
Other omissions include basic measures to protect public health, according to Smart Approaches to Marijuana, a group that prefers decriminalization of marijuana possession rather than full legalization.
In a letter last week to Schumer and the bill’s other backers, the group’s scientific advisory board -- mostly academics or doctors specializing in health and addiction -- recommended that the bill put a cap on marijuana potency, a ban or severe limitations on advertising, and a ban on flavored products or goods that would be attractive to children. It should also propose ways to stop the tobacco and alcohol industry from monopolizing the market, Smart Approaches to Marijuana said.
“States that commercialized the drug are seeing rising rates of youth use, hospitalizations, poison center calls and other negative outcomes related to the drug,” the group said in the letter.
By submitting my information, I agree to the Privacy Policy and Terms of Service and to receive offers and promotions from Bloomberg.
The United Food and Commercial Workers, the union that represents the most workers in the cannabis industry at about 10,000, also took issue with the legislation. It said more should be done to support good-paying cannabis jobs, and to stop the industry from moving high-wage union jobs from one state to low wage agricultural jobs in another. The union also seeks to increase research funding to support worker safety and apprenticeships.
See Also: Lessons from California’s Pot Industry Bailout
Not everyone was pessimistic about the bill. It has many of the items sought by Democrats, which could make it harder to pass, but Cantor Fitzgerald analyst Pablo Zuanic said he sees areas where compromises could happen in the coming months to improve the bill’s prospects.
For instance, lawmakers could offer incentives to states for expungement or re-sentencing of past marijuana crimes. Or they could set limits on funds that flow to so-called “opportunity programs” to help disadvantaged communities, thereby freeing up dollars for other federal and state programs.
Zuanic said just having a U.S. Senate majority leader proposing broad marijuana reform is a victory for the industry overall. Compared to high-priority political projects like infrastructure, voting rights and climate change, marijuana may “prove less divisive in the end,” he wrote in a July 15 research note.
The analyst urged investors to take advantage of the weakness in stock prices, saying his top U.S. stock picks are still the big multistate operators like Curaleaf Holdings Inc., Green Thumb Industries Inc., Trulieve Cannabis Corp. and Cresco Labs Inc.. Canadian companies could also benefit as long as they have strong balance sheets, Zuanic said.
NUMBER OF THE WEEK
$3 billion: The forecast for legal cannabis sales this year in the Midwest, which is expected to make up 15% of total legal cannabis sales in the U.S. by 2026, according to BDSA’s market outlook for 8 states that make up the region.
QUOTE OF THE WEEK
“I think the bill has a lot of questions -- more questions than answers. But it’s good to begin a dialogue,” said Green Thumb Industries Chief Executive Officer Ben Kovler in a phone interview about the new draft legalization bill.
WHAT YOU NEED TO KNOW
Schumer’s bill to legalize marijuana has a long and uncertain path to passage. If it does make it through, it could open up banking and stock exchanges to cannabis companies.
Getting the bill passed into law will be an uphill climb, analysts said, sending marijuana stocks down.
Rahul Gupta, a primary care physician who’s currently the chief medical and health officer at the March of Dimes, has been nominated to be the new “drug czar,” or director of the Office of National Drug Control Policy.
Curaleaf named Ranjan Kalia as chief financial officer to succeed
Michael Carlotti, who is stepping down for medical reasons.
Actor Sacha Baron Cohen sued a Massachusetts cannabis company, saying it misappropriated his likeness by using his “Borat” character on a billboard.
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Innovative Industrial Properties - >>> Ignore AMC: Here Are 3 Better Stocks
Long-term investors should look elsewhere for sustainable portfolio growth.
Motley Fool
by Rachel Warren
Jul 14, 2021
>>> Innovative Industrial Properties
https://www.fool.com/investing/2021/07/14/ignore-amc-here-are-3-better-stocks/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
When it comes to investing in marijuana stocks, not all investments are created equal. Few pot stocks offer the combination of growth, long-term value, portfolio returns, and profitability that Innovative Industrial Properties (NYSE:IIPR) does.
Innovative Industrial Properties is a real estate investment trust (REIT) that only leases its properties to licensed medical marijuana growers. Its properties span the continental U.S., from Arizona to Colorado to Florida to Massachusetts, and the company regularly adds to its portfolio.
The company pays an impressive dividend, which it consistently increases. Its yield is 2.7% at the time of this writing, and on June 15, management announced a 6% boost to the company's quarterly payout.
In 2020, Innovative Industrial Properties reported that its total revenue grew 162% and its net income increased even more, up 191% from the previous year.
During the first quarter of 2021, the company's revenue and net income grew by respective rates of 103% and 122% year over year, and its adjusted funds from operations (AFFO) spiked by a total of 116%. The company also made several new property acquisitions in the early part of 2021, all while maintaining zero debt (not counting $143.8 million in exchangeable senior notes) and growing its position in cash, cash equivalents, and short-term investments to $661.4 million.
Shares of Innovative Industrial Properties continue to trend upward. The stock has gained a robust 17% since the beginning of the year and is trading about 133% higher than just 12 months ago.
Innovative Industrial Properties has plenty of growth left to explore as it expands its national footprint within the United States' multi-billion-dollar medical-use cannabis industry. It's safe to stay that the company is far from exhausting its upside potential, and now looks like a great time for investors to jump on this compelling pot stock.
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GrowGeneration - >>> Power Si Launches in Canada
Yahoo Finance
June 7, 2021
https://finance.yahoo.com/news/power-si-launches-canada-121700469.html
DENVER, June 7, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company"), the nation's largest chain of specialty hydroponic and organic garden centers, today announced that Power Si, a proprietary brand operated and owned by GrowGen, has signed an exclusive distribution agreement with GreenPlanet Wholesale, one of Canada's oldest and most trusted hydroponic distributors. PowerSi's original patented formula of mono-silicic acid has consistently proven to improve the yield, strength, and lateral branching of crops and is a must-have for new and experienced growers. Power Si is widely used in North America and facilitates fast, visible and structured periods of both vegetative and flowering growth.
"We are thrilled that, at long last, Canadians will have the opportunity to experience firsthand what Power Si brings into their gardens. This is a groundbreaking product with proven success in the garden and a huge following in countries around the world. At GreenPlanet Wholesale, we are committed to bringing our customers the best products the industry has to offer, and Power Si is another example of this. This product has been long-awaited in the Canadian Marketplace and we could not be prouder to partner with the great team at Power Si. I can't wait to hear from our growing community as they begin to use this exciting new product." stated Mark Walman, Chief Operating Officer for GreenPlanet Wholesale.
"We are excited to bring our popular and leading mono-silicic acid product to all growers in Canada. The demand in the US has been tremendous and we believe from the interest we are already generating, the Canadian market will prove equally successful for Power Si. When selecting our distributor partner, GreenPlanet checked all the boxes for us and we couldn't be more thrilled to be their partner." stated Rex Gill, Founder of Power Si.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening centers. Currently, GrowGen has 55 stores, which include 20 locations in California, 8 locations in Colorado, 7 locations in Michigan, 5 locations in Maine, 5 locations in Oklahoma, 2 locations in Nevada, 2 locations in Washington, 2 locations in Oregon, 1 location in Arizona, 1 location in Rhode Island,1 location in Florida, and 1 location in Massachusetts. GrowGen also operates an online superstore for cultivators at growgeneration.com and B2B ERP platform, agron.io. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
For more information about GrowGeneration, or to locate its stores, please visit www.growgeneration.com.
About GreenPlanet Wholesale Ltd:
GreenPlanet Wholesale Ltd. is a British Columba based company specializing in the wholesale distribution of quality, products for indoor gardening, hydroponic, and the greenhouse market. With over 25 years of experience in the hydroponic industry, GreenPlanet uses knowledge and experience to select the very best products supporting the cultivation community and retailers across all of Canada.
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>>> Mexico Set to Legalize Marijuana, Becoming World’s Largest Market
Lawmakers in Mexico have approved a bill to legalize recreational cannabis, but in a country still marred by a deadly drug war, the proposal has proved divisive.
New York Times
By Oscar Lopez
March 10, 2021
https://www.nytimes.com/2021/03/10/world/americas/mexico-cannabis-bill.html
MEXICO CITY — Lawmakers in Mexico approved a bill Wednesday night to legalize recreational marijuana, a milestone for the country, which is in the throes of a drug war and could become the world’s largest cannabis market, leaving the United States between two pot-selling neighbors.
The 316-to-129 vote in Mexico’s lower house, the Chamber of Deputies, came more than two years after the Mexican Supreme Court ruled that the country’s ban on recreational marijuana was unconstitutional and more than three years after the country legalized medicinal cannabis.
The chamber approved the bill in general terms Wednesday evening before moving on to a lengthy discussion of possible revisions introduced by individual lawmakers. In its final form, though, the measure is widely expected to sail through the Senate before being sent to President Andrés Manuel López Obrador, who has signaled support for legalization.
The measure, as of Wednesday night, would allow adults to smoke marijuana and, with a permit, grow a small number of cannabis plants at home. It would also grant licenses for producers — from small farmers to commercial growers — to cultivate and sell the crop.
“Today we are in a historic moment,” said Simey Olvera, a lawmaker with the governing Morena party. “With this, the false belief that cannabis is part of Mexico’s serious public health problems is left behind.
If enacted, Mexico would join Canada and Uruguay in a small but growing list of countries that have legalized marijuana in the Americas, adding further momentum to the legalization movement in the region. In the United States, Democrats in the Senate have also promised to scrap federal prohibition of the drug this year.
For “Mexico, given its size and its worldwide reputation for being damaged by the drug war, to take this step is enormously significant,” said John Walsh, director of drug policy for the Washington Office on Latin America, a U.S. advocacy group. “North America is heading toward legalization.”
In Mexico, however, the bill has proved divisive.
Critics say it is unlikely to make a serious dent in Mexico’s soaring rates of cartel-fueled violence, and argue that it is unwelcome in a country where nearly two-thirds of people oppose legalizing marijuana, according to recent polling.
“It’s a political fad,” said Damián Zepeda Vidales, a senator with the opposition National Action Party and one of the bill’s most vocal detractors. “It’s a matter for politicians, for an elite that’s now empowered in Congress and in government that wants to impose a way of life on society.”
Security experts agree that the law’s practical impact on violence will likely be minimal: With 15 American states having now legalized marijuana, they argue, the crop has become a relatively small part of the Mexican drug trafficking business, with cartels focusing on more profitable products like fentanyl and methamphetamines.
“We shouldn’t overestimate the power of this bill,” said Falko Ernst, senior Mexico analyst for the International Crisis Group, a global research organization. The bill will not “substantially change the dynamics and drivers of lethal conflict in Mexico.”
Proponents of legalizing marijuana contend that the bill is too limited in scope, even if it represents a symbolic breakthrough in the push to end a drug war that has cost an estimated 150,000 lives, according to the Council on Foreign Relations.
Legalization “is an important step toward building peace in a country like ours, where for at least a decade or more, we’ve been immersed in an absurd war,” said Lucía Riojas Martínez, a Mexican congresswoman who made headlines in 2019 when she gave a rolled joint to the country’s interior minister, Olga Sánchez Cordero, after delivering a speech in Congress.
“But this bill falls short of achieving that,” she added.
It is also unclear how much the law will benefit Mexico’s poor farmers, who have grown marijuana for decades and often end up in the middle of conflicts between warring drug trafficking groups.
The bill mandates that small farmers and Indigenous people be given priority in licensing, but stipulates only that these vulnerable groups can be granted more than one license.
And without additional state policies to tackle organized crime, particularly in areas where marijuana is grown, said Mr. Ernst, such well-intentioned requirements may not have a meaningful impact for farmers in the regions controlled by cartels.
“For most areas where you have these high-conflict settings,” said Mr. Ernst, there are not enough state resources to truly take on organized crime groups
But many entrepreneurs, at least, are seeing green.
With more than 120 million people, Mexico would represent the largest marijuana market in the world by population. The crop could become big business in Mexico, a potential financial lift for an economy badly battered by the coronavirus crisis.
“It’s an excellent economic, natural, ethical and moral solution for a country in need,” said Juan Sánchez Mejorada, chief executive of Ceres Soluciones, a medicinal cannabis company.
“Doing this right could give Mexico an economic surplus,” he said.
This kind of fervor makes pro-marijuana activists nervous.
“It’s a law for the rich, and marijuana should be for everybody,” said Ivania Medina Rodríguez, 18, a local activist. “They’re going for business before rights.
Dressed as a giant cannabis leaf, Ms. Medina was attending a protest last year that began at a small marijuana plantation outside the Senate offices in Mexico City, where locals now regularly come to smoke pot while the police turn a blind eye.
Some activists fear that the law will overly favor large corporations that could obtain what the bill terms an “integral license,” giving them access to the entire marijuana supply chain, from seed to sale, while leaving small-scale producers and vendors locked out of the lucrative market.
The bill in Mexico would allow individual users to carry up to 28 grams of marijuana and grow six cannabis plants at home. Cannabis could also be purchased by adults over 18 at authorized businesses, and grown at larger scale by licensed groups. Medical marijuana, which Mexico legalized in 2017, would be regulated separately by the health ministry, which published rules in January covering the growing and research of medicinal cannabis.
Local advocates say the restrictions on possession will limit the bill’s impact, particularly for low-income consumers, who may fall prey to extortion from the police, a regular occurrence in Mexico.
“We live in a country where corruption and extortion is the norm,” said Zara Snapp, co-founder of the RIA Institute, a Mexico-city based drug policy research and advocacy group.
Still, for many proponents in Mexico, approving the bill is a notable step in the long journey toward full legalization.
“It’s like when you’re running a marathon and you haven’t started — running the first meter helps to start the discussion,” said Mr. Sánchez, the marijuana businessman. “It means firing the starting gun, even if we still have 42 kilometers left to go.”
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>>> GrowGeneration Expands Southern California Footprint with New Super Hydroponic Garden Centers in Los Angeles County
Yahoo Finance
March 9, 2021
https://finance.yahoo.com/news/growgeneration-expands-southern-california-footprint-130000883.html
GrowGen Adds 122,000 Square Feet of Retail and Distribution Space with Two New Locations
DENVER, March 9, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced it has signed two new leases in Los Angeles County, California, which will serve as the future sites of two new GrowGeneration Super Hydroponic Garden Centers. Located in the heart of downtown Los Angeles at 1651 Naomi Street and near the Long Beach Ports at 19516 South Susan Street in Rancho Dominguez, the leases represent an additional 122,000 square feet of retail and distribution space in Los Angeles County, making them the largest hydroponic garden centers in Southern California. With these leases, GrowGen will operate close to 800,000 square feet of retail and warehouse space across 52 locations nationwide, with 10 of those locations in the important Southern California market and 19 in the state of California.
"As the cannabis and hydroponics industries continue to evolve at a rapid pace, we are working to define what the next generation of garden centers will look like. Our Super Hydroponic Garden Centers will offer the largest selection, expert advice from our professional staff, and best-in-class customer service. They will serve as retail locations, as well as distribution and direct fulfillment centers to service the large commercial markets. In addition, these hydroponic garden centers will help us consolidate and distribute our private label products that are an important part of our growth plans," said Darren Lampert, GrowGeneration's CEO.
Continued Lampert, "We are building destination locations for commercial and craft growers in the largest and most active cultivation markets in the country. We plan to build several GrowGen Super Garden Centers across the U.S. to serve the growing number of commercial and craft growers."
Today's announcement comes on the heels of four recent acquisitions – including San Diego Hydroponics & Organics last month – and yet another quarter of record earnings. In January, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million-$350 million and raised its 2021 adjusted EBITDA guidance to $38 million-$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.
For more information about GrowGen, or to locate its stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 50 stores, which include 8 locations in Colorado, 17 locations in California, 2 locations in Nevada, 1 location in Arizona, 2 locations in Washington, 6 locations in Michigan, 1 location in Rhode Island, 5 locations in Oklahoma, 2 locations in Oregon, 5 locations in Maine and 1 location in Florida. GrowGen also operates an online superstore for cultivators at growgeneration.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all the major states in the U.S. and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. By 2025, the global hydroponics system market is estimated to reach approximately $16 billion.
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OXIHF - is a below the radar company growing hemp and selling CBD oil - also have a CBD store franchise Pioneer Green USA based in Florida- trading at .003 with around 155 mil in the float
>>> As Marijuana Stocks Light Up On Legalization Hopes, Analysts Bring Cold Water
Eleven states and Washington, D.C., have legalized marijuana for recreational use so far. Thirty-four allow medical use.
Investor's Business Daily
BILL PETERS
02/12/2021
https://www.investors.com/news/marijuana-stocks-light-up-legalization-hopes-analysts-bring-cold-water/?src=A00220
Canopy Growth stock holds a 64% year-to-date gain, even after a big sell-off Thursday. Aphria stock has more than twice that gain. Tilray stock rose 51% Wednesday alone — then tanked, ending the week with a 13% gain.
As marijuana stocks take a ride to the moon and back, analysts have tried to keep investors' glee within the gravitation pull of planet Earth, though not always with great success.
With a new Democratic president and Congress, the year ahead for North America's cannabis stocks will largely hinge on the prospects — and complications — of wider legalization in the U.S. Senate Majority Leader Chuck Schumer and other top Democratic lawmakers this month signaled openness to tearing down pot prohibitions.
But broad U.S. legalization, analysts say, is far from guaranteed and could be years away. Ambitious legislation, nationally or in individual states, often undergoes a shearing on its journey to a signature. U.S. lawmakers will have other battles — namely, squashing the coronavirus pandemic.
"I'm not sure the first fight will be cannabis," said Mitch Baruchowitz, managing partner at Merida Capital, who follows marijuana stocks. "I don't think bills always take the shape people think they will. Our government tends to negotiate a lot."
Canada's producers — which represent the bulk of marijuana stocks trading on U.S. exchanges — will be looking to cultivate big opportunities in the U.S. to offset struggles at home. They had the advantage of Canada's legalization measures early on while U.S. operators remained restricted. But they are also struggling to bring costs under control in pursuit of still-elusive profits.
Despite the caution, cannabis stocks have gone vertical, aided by the Nov. 3 election and an excitable retail investor crowd. Over the past week, there were signs the Reddit board WallStreetBets, the meme-stock nexus that encouraged binge buying of GameStop (GME), was egging on the rally. The exact identities of the most vocal cheerleaders remain murky, though.
Marijuana Stocks Rocket Higher
This week's trading vaulted cannabis stocks, most of which were already extended in price, to mind-boggling gains. Disciplined investors who locked in profits were surely relieved they had stepped aside when the stocks tumbled from their heights Thursday.
Shares of Canopy Growth (CGC) rallied 63% in January. In February, they rose as much as 41% to an intraday high Wednesday. Thursday they fell 22%.
Canopy Growth reported a large quarterly loss Tuesday. But the Canadian pot producer's sales beat expectations, and its view on profitability became clearer. CEO David Klein said any potential legislative reform "could allow Canopy to enter the U.S. THC market during calendar 2021."
Elsewhere, Aphria (APHA) is up 145% since the start of the year, though that's down from a year-to-date gain of 267% in intraday trading Wednesday. Aphria received an added boost from news that it will merge with rival Tilray (TLRY), which recently announced expansion moves in the U.K. and Europe.
Tilray stock is up 251% for 2021, even after the past week's round-trip ride. It saw the kind of action that tends to signal WallStreetBets/Reddit traders.
The industry buzz has also boosted the shares of Wakefield, Mass.-based Curaleaf (CURLF), a large cannabis grower and retailer in the U.S., and Innovative Industrial Properties (IIPR), a Park City, Utah-based real estate investment trust that acquires pot growing facilities and other real estate in the U.S.
Among ETFs, ETFMG Alternative Harvest (MJ), Cambria Cannabis (TOKE) and AdvisorShares Pure Cannabis (YOLO) are also along for the ride.
Outlook For Marijuana Stocks
Investors in Canadian cannabis stocks hope new U.S. laws will set the companies free to tap more of the world's largest pot market. However, even if U.S. federal cannabis restrictions evaporated tomorrow, most Canadian pot producers looking to grow and sell weed here would find themselves with little U.S. infrastructure. Competition would be heavy, and state-by-state regulations would present a series of potential minefields.
For the U.S. operators, questions linger about competition with the illegal market and the impact of the pandemic, which has shaken up consumption habits, logistics at dispensaries and shift rotations at production hubs. Further out, questions remain about where, and how, the industry will consolidate if interstate boundaries fall.
For now, legal cannabis sales in the U.S. this year are expected to jump 31% to $23.9 billion, according to industry tracker Headset. In Canada, sales are also expected to rise 31%, although to a much smaller figure — 4.6 billion Canadian dollars ($3.62 billion U.S.), according to Cowen.
Those sales would increase in tandem with the public's acceptance of pot use. Fifty-six percent of people want to legalize marijuana, according to the January IBD/TIPP poll. Fifty-four percent generally believe legalization would benefit society.
Biden's Victory Garden?
Those numbers, which help buoy marijuana stocks, track alongside President Joe Biden's election support in November. In addition, during the November election, five states — New Jersey, Arizona, Montana, South Dakota and Mississippi — voted to legalize cannabis in some form. That brought the total number of states that have legalized recreational cannabis to 11, along with Washington, D.C. Thirty-four have legalized it for medical use.
Then, in December, the Democrat-led House approved the MORE Act. States would decide whether to allow sales under that law. But it would federally decriminalize cannabis and expunge records related to marijuana offenses.
A month later, Democrats, after two runoff elections in Georgia, snagged two additional Senate seats. That puts Democrats and Republicans at a 50/50 split in the Senate. With Vice President Kamala Harris providing the tiebreaking vote, Democrats now ostensibly have the votes to ram through pot legislation, if they so choose.
This month, Schumer said he told Biden's Justice Department nominees that the department should "respect the rights of states that have legalized marijuana." A day earlier, Schumer, Sen. Cory Booker and Sen. Ron Wyden also said they would make "consideration" of cannabis reform a priority in 2021, with plans to release a "discussion draft" on the subject in the early part of the year.
"The War on Drugs has been a war on people—particularly people of color," the statement from the lawmakers said.
Legislation: The MORE, States And SAFE Acts
Still, less sweeping legislation might be more palatable to Congress. Such limited measures probably wouldn't clear the way for a Canadian stampede into the states, as some investors in marijuana stocks envision.
The States Act, launched by Senators Cory Gardner (R-Co.) and Elizabeth Warren (D-Mass) in 2018, would leave pot legislation up to U.S. states but still prohibit selling cannabis across state lines. Narrower measures, like the SAFE Act — introduced in the House by Colorado Democrat Ed Perlmutter in 2019 — would give the marijuana industry access to banking. Other bills would open up insurance and allow cannabis businesses to take standard expense deductions.
All of those measures would be welcomed by an industry where the duffel bag stuffed with cash is often the standard payment medium. But Cowen analyst Vivien Azer says the MORE Act is the "most straightforward mechanism" to open the gates for international cannabis operators to enter the U.S.
That law, jointly launched in the House by Jerry Nadler (D-N.Y.) and then-Sen. Kamala Harris in 2019, would need to be reintroduced by the new Congress (the Senate did not follow through on the House passage in December). But even with a Democratic majority, Azer says, the odds, for now, remain slim.
Invasion Complications For Marijuana Stocks
Hemp — legally defined as cannabis plants that contain almost none of the buzz-producing chemical THC — went legal in the U.S. in 2018. Some Canadian producers quickly moved to secure a place in the market for CBD, the relaxing substance often found in hemp that has made its way into lattes and topical creams. But efforts to gain similar permissions for THC product sales would require far heavier lifting.
A more open U.S. market would require Canadian producers, generally still a money-losing bunch, to build grow-houses and manufacturing facilities from the ground up in the states. It would require navigating each state's licensing requirements, an often costly process in which some states move faster than others.
Even so, marijuana and THC-based products are now legally and readily available in many states — but only from U.S.-based companies. And the rules governing sales and business licenses for those products are a rat's nest of red tape.
Some states cap the number of licenses they hand out. Other states, like Florida, require vertical integration. In other words, businesses have to handle cultivation, processing, manufacturing and retail operations. Those stores are only allowed to sell that company's products.
"There's just a state-by-state patchwork of regulations that these operators are working with now," Piper Sandler analyst Michael Lavery said. He added: "These are all states that have allowed and created programs for their own tax and job purposes, oftentimes as a motivator."
Preparing To Move South
So where does that leave marijuana stocks? Legalization would allow Canopy Growth to activate the arrangement it already has in place for U.S. weed sales — namely, an agreement for Canopy to buy U.S. peer Acreage Holdings once lawmakers allow nationwide sales. Canopy also has investments in Terrascend, which operates in Canada and the U.S.
How well Canopy Growth and its Canadian rivals might handle expansion into the U.S. is also a question.
Companies like Tilray are expanding into new, though still small, medical markets in Europe. But the industry has, in general, been retreating from the international stage to cut costs. And Canada's homegrown problems persist: too much weed production, a parade of write-downs on investments that didn't pan out, and more efforts to scale back operations.
"The Canadian market has become a large, but largely predictable, market," Baruchowitz said.
But more dispensaries are opening in Ontario, which accounts for around 40% of Canada's population. That has helped lift a major barrier to sales growth and frequent source of executives' complaints in previous years. And as business becomes more predictable, more companies are gesturing — sort of — toward the possibility of profits.
Tilray in November said it is "poised to deliver positive or break-even adjusted EBITDA in the fourth quarter of 2020." Similarly, Canopy, in February said it was "in a position" to set a target for positive adjusted EBITDA in the second half of its fiscal 2022.
Over the past two years, however, the industry has made a habit of softening its profitability goals.
"We generally have opted to take a more cautious view on profitability for the Canadians, relative to management commentary, given the challenges that the companies have faced in meeting prior projections," Azer said.
Cannabis Stocks Chart Action
But even as profit worries endured, U.S. and Canadian marijuana stocks swept higher at the start of the year. So did ETFs such as Cambria Cannabis and ETFMG Alternative Harvest. Market valuations have become swollen. Canopy Growth's value stands at $15.1 billion. Tilray stock weighs in at $4.3 billion.
As a result, Canadian cannabis stocks on the big U.S. exchanges are now well extended from what would be considered proper buy points, according to technical analysis. Those stocks require some serious price consolidation before any CAN SLIM-type buying opportunities emerge.
U.S.-based stocks Innovative Industrial Properties and Curaleaf have remained somewhat more grounded. Innovative is trading 15% above its 10-week moving average, while Curaleaf stands 22% above that line. Both are moderately extended but they haven't been going vertical like their Canadian counterparts. A pullback to the 10-week or consolidation would offer investors new entries.
U.S. Cannabis Stocks And Covid
In the U.S., marijuana stocks also face questions of competition, overexpansion and profitability, even with a legislative boost from Democrats. In addition, they face questions about how much the coronavirus pandemic has remolded the industry.
One possible positive: The pandemic could drive more legal purchases. Under that scenario, fractures in the supply chain could complicate the shipping of legal and illegal goods alike. Executives also argue that customers worried about getting infected might avoid products with uncertain origins or order online to minimize physical contact with their dealer.
The pandemic has "expedited that (e-commerce) development by the tune of five to 10 years, automatically," Charlie Bachtell, CEO of U.S. operator Cresco Labs, said of the pandemic's impact on digital orders. "Without question, there is going to be more of that online ordering, delivered-to-the-house consumer activity in cannabis than pre-Covid."
Unlicensed Shops, Shift Rotations
Accounts from some authorities complicate that narrative, offering additional reason for caution around marijuana stocks. In Los Angeles, one of the nation's biggest pot markets, police are still trying to stamp out unlicensed marijuana stores. Estimates for the number of those stores vary, with some ranging into the hundreds.
"In a nutshell, I haven't seen any changes," said Vito Ceccia, a detective with the Los Angeles Police Department's cannabis support unit. "You have to understand that that's the illicit market."
He also noted that the legal market is more vulnerable in some ways to the pandemic than the illegal one.
"If there's a statewide shutdown, they have to adhere to that, whereas the illegal market doesn't," he said.
The pandemic has jostled the marijuana business in other ways. Bachtell says that in response to the pandemic, Cresco limited some in-store displays, as customers spent less time in dispensaries. Staff spread out tables in its Chicago store's consultation space. The company also added more express lines for pickup orders.
Bachtell did not have specifics on coronavirus cases at the company, which has more than 2,000 employees.
On the production side, he says, complications have arisen from contact tracing and scheduling. Efforts to keep fewer people on the assembly line, where people sometimes used to work a foot apart, have added to the difficulty. The company has tried to minimize overlap between shifts. It has turned away from experimental products to focus on higher-demand ones.
Weed Tourism Shut Down
Green Thumb Industries, another U.S. operator, has added touchscreen kiosks in stores to handle orders. GrowGeneration (GRWG) — a store chain that sells soil, nutrients, hydroponics and other supplies to individuals and the industry — stockpiled gloves and cleaning products.
"We saw a 200% increase in tents, where people grow in their homes," GrowGeneration CEO Darren Lampert said. "They use tents in their basement."
Planet 13 — a large, mall-like dispensary in Las Vegas that packs psychedelic visual displays, a restaurant and an edibles factory into a former beer distribution center — faced a tourism shutdown that left casinos and hotels vacant. Roughly 85% of its customers come from outside Nevada. The company decided to expand from doing a dozen or so deliveries a day to many more. As the pandemic sank in, it bought 30 delivery vehicles.
"No dealerships were open," Planet 13 co-CEO Bob Groesbeck said. "We were looking, you know, in Arizona, in New Mexico, California, Washington state, just for dealerships to sell us vehicles."
Groesbeck says Planet 13 has around 100 more employees than at the start of the pandemic. The company is moving forward with plans to add 40 registers to its dispensary space.
But the pandemic has reshaped the way the company sells weed. Pre-pandemic, Planet 13 would run more than 200 ad-wrapped cabs up and down the Strip. Some of that advertising muscle has moved to billboards along local freeways and local magazine promotions.
Before the pandemic, vapes and edibles were popular, as tourists, staying in hotels that barred smoking, sought discretion. Today, Planet 13's local customers, who can smoke at home, are buying more bud, Groesbeck says.
Post-Prohibition Life For Marijuana Stocks
If and when U.S. lawmakers finally unshackle the industry at the federal level, businesses may run into complications unknotting themselves from the slew of banks and suppliers that enabled their expansion into new states. Streamlining operations could cost the marijuana industry jobs.
Bachtell says consolidating operations and potentially focusing on agriculture-heavy states could be part of the "longer-term evolution" of the industry. As cannabis settles into commodity status, the current regime of pot shops, with green cross symbols and names with vague nods to health and wellness, may start to dissolve.
"We have always been kind of cautious about being too brick-and-mortar retail focused," Bachtell said. "Because (eventually, cannabis could be) available at Whole Foods, and it's available with large-scale distribution that's sent directly to the house, and Amazon is delivering it."
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>>> GrowGeneration Acquires Colorado-Based Grow Warehouse, Expands Footprint in Colorado and Oklahoma
Yahoo Finance
February 16, 2021
https://finance.yahoo.com/news/growgeneration-acquires-colorado-based-grow-130000513.html
Acquisition Brings Total Number of GrowGen Locations to 46
DENVER, Feb. 16, 2021 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced its acquisition of Grow Warehouse, a four-store chain of hydroponic and organic garden stores in Colorado and Oklahoma. The acquisition brings the total number of GrowGen hydroponic garden centers to 46, with new locations in Colorado Springs and Pueblo, Colorado, and Oklahoma City, Oklahoma.
"We continue to acquire best-of-breed hydroponic stores that complement our existing footprint and accelerate our growth strategy," said Darren Lampert, GrowGeneration's CEO. "Grow Warehouse is our third acquisition this year and boasts a team of 50-plus grow professionals and an additional 35,000 square feet across four state-of-the-art facilities. It's exactly the type of acquisition that will continue to position GrowGen for long-term growth and success."
Founded in 2009 by Mark Rees, Grow Warehouse brings annual revenues of approximately $20 million. It also brings the total number of GrowGen hydroponic garden centers in Colorado to eight and Oklahoma to five. Grow Warehouse's team of cultivation experts will join GrowGeneration's team of close to 500 grow professionals.
Added Grow Warehouse CEO Mark Rees, "Since its inception, Grow Warehouse has worked to raise the level of service, products, and knowledge in the hydroponic industry to that standard of excellence for which Grow Generation has become known. Grow Warehouse couldn't be happier to be joining the GrowGen Family."
The Grow Warehouse acquisition is the Company's third acquisition this year and follows yet another quarter of record earnings. Just last month, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million-$350 million and raised its 2021 adjusted EBITDA guidance to $38 million-$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.
For more information about GrowGeneration, or to locate its stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 46 stores, which include 8 locations in Colorado, 13 locations in California, 2 locations in Nevada, 1 location in Arizona, 2 locations in Washington, 6 locations in Michigan, 1 location in Rhode Island, 5 locations in Oklahoma, 2 locations in Oregon, 5 locations in Maine and 1 location in Florida. GrowGen also operates an online superstore for cultivators at growgeneration.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all the major states in the U.S. and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. By 2025, the global hydroponics system market is estimated to reach approximately $16 billion.
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>>> 13 Best Hemp Stocks to Buy Now
Yahoo Finance
by Ma’k Almario
February 7, 2021
https://finance.yahoo.com/news/13-best-hemp-stocks-buy-191350367.html
In this article, we will discuss the 13 best hemp stocks to buy now. If you’re in a hurry, click to skip ahead to the 5 Best Hemp Stocks to Buy Now.
Weedmaps define Hemp as “A dioecious plant, which means it can be separated into male and female plants. These plants have served a wide variety of purposes for more than 10,000 years: for fiber (from the plant's stems), protein (from seeds), and oils and smokable portions (from the leaves and flowers). Hemp fibers can be used to make items including paper, clothing, furnishing fabric, rope, and building materials.”. Some people may confuse hemp with marijuana. Although both contain tetrahydrocannabinol (THC) and are classified as cannabis, the variety cultivated for hemp has only small amounts compared to the marijuana. And it does not have the same effect. In an article, we mentioned the Top 10 Cannabis Stocks to Buy Now.
In 2014, the federal law under the Agricultural Act 2014 (farm bill) allowed the use of hemp on an experimental basis. The commodity proved its significance not only for the health sector but for the economy as a whole with over 25,000 recorded uses. In 2018, the United States farm bill federally legalized hemp production and since then the industry has been thriving. According to MarketsAndMarkets “The industrial hemp market is projected to grow at a CAGR of 34% from USD 4.6 billion in 2019 to USD 26.6 billion by 2025”
The COVID-19 affected many industries when enforced lockdown and social distancing was in place. However, the hemp industry was one of those industries that managed to stay afloat despite the economic recession. Many medical researchers looked into medical cannabis as an option to help stop the spread of the virus. In a study by a partnership between cannabis research companies Pathway RX, Swysh Inc., and the University of Lethbridge it was shown that certain Cannabis Sativa extracts could be used in treatments to prevent infection with SARS-CoV-2, the virus that causes COVID-19. The researchers commented:
“While our most effective extracts require further large-scale validation, our study is crucial for the future analysis of the effects of medical cannabis on COVID-19,” the researchers said in an early pre-publication version of their study. “The extracts of our most successful and novel high CBD [cannabidiol] C. sativa lines, pending further investigation, may become a useful and safe addition to the treatment of COVID-19 as an adjunct therapy. The extracts could potentially be used in a mouthwash or “throat gargle”
Cannabis stocks rallied after Biden's victory raised expectations for cannabis reform. The hemp industry is optimistic that plans for high-THC cannabis will open more opportunities for the sector. Chairman of the National Hemp Association, Geoff Whaling commented saying that “2021 can be the year of the hemp”. While in a separate note, Texas cannabis attorney Lisa Pittman told Hemp Industry Daily:
The ability to harness hemp’s power to sequester carbon from the atmosphere and remediate toxins from the soil could finally become a functioning reality instead of a theoretical possibility,”
In order to identify the 13 Best Hemp Stocks to Buy Now, we started with the 33 holdings in the ETFMG Alternative Harvest ETF (MJ) as of February 4, 2021, and we were able to narrow down our list to 13 stocks by using the hedge fund sentiment data.
Our in-house research showed that by using the hedge fund sentiment data, we can identify a small group of stocks that can outperform the S&P 500 index on average by double digits annually. For instance, the portfolio for stock picks for our monthly newsletter has beaten the market by over 88 percentage points since March 2017 (see details here) Some of the portfolio choices for our monthly newsletter were also publicly shared on our website. In October, we posted this real estate stock and since then it’s been up more than 50 percent.
Based on our hedge fund sentiment data, we present to you the 14 best hemp stocks to buy now among 800+ hedge funds tracked by Insider Monkey:
13. Aurora Cannabis (NYSE:ACB)
No of HFs: 10
Total Value of HF Holdings: $9.22 Million
ACB is the 13th best hemp stock to buy now. The stock was mentioned as one of the 25 Biggest Marijuana Companies in the World. The company is known for the production, distribution, and marketing of cannabis products. They recently announced a five-year supply agreement with MedReleaf Australia. Miguel Martin, CEO of Aurora said,
"We are pleased to have established a long-term strategic relationship with MedReleaf to exclusively distribute the Aurora, CanniMed and MedReleaf brands in Australia. The team at MedReleaf have created an asset-light, sustainable growth platform in Australia to assist physicians, pharmacists and patients across the country in accessing the high-quality range of Aurora cannabis medicines."
12. GrowGeneration Corp (NASDAQ:GRWG)
No of HFs: 10
Total Value of HF Holdings: $56.4 Million
The top hedge fund holder of this stock is Richard Driehaus’ Driehaus Capital which had $23 million invested in the stock at the end of September. An insider recently purchased 25,000 shares at around $3 in December 2019. The stock is up 1332% since then. GRGW is known for its retail of hydroponic and organic specialty gardening products. They recently acquired Maine-based Grow Depot., GrowGeneration’s CEO, Darren Lampert said:
“It’s a very exciting time in Maine’s adult-use market, and we’re pleased to expand our footprint in the state through our acquisition of Grow Depot, which has proudly served the Central Maine area for nearly a decade. With our expanded footprint, the Maine market is expected to generate 2021 annual revenues of over $20 million for GrowGen.”
11. Cronos Group Inc (NASDAQ:CRON)
No of HFs: 10
Total Value of HF Holdings: $59.9 Million
At the end of September, a total of 10 hedge funds tracked by Insider Monkey were long this stock. An insider recently purchased 15,000 shares at around $5 in August 2020. The stock is up 140% since then. CRON advances cannabis research, technology, and product development. During the third quarter of 2020, the company reported net revenue of $1.6 million.
10. Schweitzer-Mauduit International, Inc. (NYSE:SWM)
No of HFs: 11
Total Value of HF Holdings: $16.4 Million
SWM is the 10th best hemp stock to buy now. The top hedge fund holder of this stock is Jim Simons’ Renaissance Technologies which had over $5 million invested in the stock at the end of September. An insider recently purchased 1,000 shares at around $30 in May 2020. The stock is up 26% since then. SWM is known for developing papers for the tobacco industry. They recently announced their agreement with the Board of Scapa Group, Plc. To acquire the entire share capital of Scapa. SWM CEO Dr. Jeffrey Kramer commented that they are enthusiastic about adding Scapa’s best-in-class global healthcare solutions platform to SWM
“We are enthusiastic about adding Scapa’s best-in-class global healthcare solutions platform to our already substantial presence, giving SWM immediate critical mass in the growing medical materials space. Together with Scapa, we will offer a comprehensive suite of products focused on skin-friendly specialty applications like advanced woundcare, wellness, and medical device fixation, in addition to our existing portfolio of medical products. Scapa also brings a robust and profitable set of industrial tapes used in construction, transportation, consumer, and industrial end-markets, complementing our existing business. Like SWM, Scapa has significant capabilities and scale in key specialty applications and a well-recognized brand portfolio. With Scapa’s industrial business as part of SWM’s diversified AMS segment, we see potential to leverage our combined sales and distribution reach.”
9. Universal Corp (NYSE:UVV)
No of HFs: 12
Total Value of HF Holdings: $74.8 Million
UVV was mentioned in the Top 5 Dividend Kings of 2021 as the company announced its 50th consecutive annual dividend hike in May 2020. They are one of the leading tobacco merchants worldwide. Universal primarily sells flue-cured and burley tobacco. In 2020, the company acquired Silva International. The acquisition will enable UVV to offer a single source for vegetable and fruit solutions.
8. Vector Group LTD (NYSE:VGR)
No of HFs: 17
Total Value of HF Holdings: $131 Million
VGR is the 8th best hemp stock to buy now. The top hedge fund holder of this stock is Jim Simons’ Renaissance Technologies which had over $95 million invested in the stock at the end of September. An insider purchased 15,000 shares at around $12.10 in January 2021. The stock is up 2% since then. Recently, the company made changes in their Board of Directors, where they appointed Richard J. Lampen as the new Chief Operating Officer and Member of the Board of Directors. Howard M. Lorber, President and Chief Executive Officer of Vector Group commented:
“On behalf of the Board and Management team, we are pleased to announce Dick’s new roles at Vector Group. With his broad executive experience and deep operational understanding of the company, having served in a variety of senior leadership roles for Vector Group and its affiliates for more than 25 years, Dick is a valuable addition to our Board and a natural fit to be COO."
7. GW Pharmaceuticals PLC (NASDAQ:GWPH)
No of HFs: 17
Total Value of HF Holdings: $201 Million
The top hedge fund holder of this stock is Steve Cohen’s Point72 Asset Management which had $52 million invested in the stock at the end of September. An insider recently purchased 7,200 shares at around $6 in March 2020. The stock is up 3450% since then. Alger Spectra Fund mentioned the stock in its Q3 2020 investor letter:
“GW Pharmaceuticals is producing cannabinoid-based pharmaceuticals without tetrahydrocannabinol, or THC, which is a mood-altering component in marijuana. These cannabinoids enable the identification of unique chemotypes that have positive effects on different diseases, including epilepsy, inflammatory disorders and psychosis. GW’s near-term focus is developing Epidiolex for use with treatment resistant epilepsy. with up to 40 Vo of epileptic patients continuing to have seizures after using three or more different drugs. The sales growth of Epidiolex has been disappointing because the virtual nature of diagnosis and prescribing drugs during the Covid-19 pandemic is challenging the adoption of this newer type of therapy; shares of GW Pharmaceuticals thus underperformed during the third quarter.”
It is now too late to buy GWPH as Jazz Pharmaceuticals recently announced that it is acquiring GWPH.
6. Cara Therapeutics, Inc. (NASDAQ:CARA)
No of HFs: 19
Total Value of HF Holdings: $75.6 Million
At the end of September, a total of 19 hedge funds tracked by Insider Monkey held long positions in the stock. CARA is known for developing products for pruritus and pain management. In 2020, the company released a new drug application to US FDA for KORSUVA injection in Hemodialysis patients with moderate-to-severe pruritus. Derek Chalmers, Ph.D., D.Sc., President and Chief Executive Officer of Cara Therapeutics said:
“The NDA submission for KORSUVA Injection marks a significant milestone for Cara and for hemodialysis patients who suffer from intractable pruritu. I’d like to thank the entire Cara team for working tirelessly to bring this first-in-class therapeutic from in-house discovery, through development to the completion of NDA submission, as well as the patients, investigators and site personnel who participated in the clinical trials. We look forward to working with the FDA through the review process and, along with our commercial partner, Vifor Pharma, remain focused on preparation for the U.S. launch of KORSUVA Injection, if approved.”
5. Turning Point Brands, Inc. (NYSE:TPB)
No of HFs: 24
Total Value of HF Holdings: $98.0 Million
TPB is the 5th best hemp stock to buy now. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had over $20 million invested in the stock at the end of September. An insider recently purchased 1,500 shares at around $22 in May 2020. The stock is up 140% since then. Maran Capital Management LLC mentioned the stock in its 4Q 2020 investor letter:
“Turning Point Brands, a branded consumer products company executing a buy and build strategy, has been a holding of the partnership on and off for the past four years. TPB is focused on “active ingredients,” such as nicotine (including tobacco-based and non-tobacco variants, but not cigarettes), caffeine, CBD, and more. Their Zig Zag brand dates back over 150 years and is the top-selling rolling paper brand globally. I don’t believe we are paying anything for the option, but if cannabis is legalized at the federal level in the US, Zig Zag could see a step-change in its growth. I love these types of situations. I’ve underwritten TPB based on its “boring” legacy businesses, but there is a lot of upside in its “new gen” segment (vaping, CBD, other active ingredients), as well as the potential for a real acceleration in Zig Zag’s growth under various scenarios.
A few months ago, I had the pleasure of interviewing Larry Wexler and Bobby Lavan, the CEO and CFO of Turning Point Brands, respectively, at the Casulo Buyside Fireside, hosted by Shai Dardashti. We discussed why they are so excited about the opportunities ahead at TPB, the significant optionality embedded in the company, the fact that the company was one of the few to increase its share buyback authorization last March (and act on it), how management targets a 17.5%+ ROIC on all capital allocation decisions, and the growth prospects across all three of the company’s major portfolio segments.”
4. Scott Miracle (NYSE:SMG)
No of HFs: 31
Total Value of HF Holdings: $292 Million
SMG was mentioned in the 25 Biggest Marijuana Companies in the World. The company is known for its branded consumer lawn and gardening products. Recently, the company announced the realignment of Finance, Supply Chain, and Corporate Affairs Teams. Dave Swihart had expanded the role of leading global technology and operations. Mike Lukemire, president and chief operating officer commented:
“Under Dave’s leadership, we have dramatically improved our innovation processes and have benefitted from a series of the most successful product launches in our history. As we continue to advance our supply chain to meet the rapidly evolving needs of the market, including the expansion of our direct-to-consumer efforts, he is the right person to also oversee this effort. Dave’s expanded role provides me more flexibility to work with Jim and our Board of Directors on key strategic initiatives that we believe will drive growth and value for years to come.”
3. Arena Pharmaceuticals, Inc (NASDAQ:ARNA)
No of HFs: 43
Total Value of HF Holdings: $989 Million
ARNA is the 3rd best hemp stock to buy now. The top hedge fund holder of this stock is Kurt Von Emster’s VenBio Select Advisor which had $231 invested in the stock at the end of September. An insider recently purchased 5 shares at around $69 in December 2020. The stock is up 15% since then. ARNA is known for its novel medicines with pharmacology and pharmacokinetics. On February 2, 2021, EVP, Chief Commercial Officer of ARNA sold 17,500 shares of ARNA at an average price of $78.87 per share. The total sale was $1.4 million.
2. Altria Group, Inc. (NYSE:MO)
No of HFs: 47
Total Value of HF Holdings: $1.12 Billion
At the end of September, a total of 47 hedge funds tracked by Insider Monkey held long positions for this stock. An insider recently purchased 1,352 shares at around $52 in February 2019. The stock is down 19% since then. MO was mentioned as one of the Top 10 Sin Stocks to Buy Now. Artko Capital mentioned MO in its Q2 2020 investor letter:
“Altria Group (MO) – We made an 9% Core Portfolio investment in Altria group at sub $40.00 in 2019 with the view that it was a good place to park cash at an 8%+ dividend yield with liquidity and a 15- 25% annual IRR upside. When the stock reached $50+ in early 2020 we took half of our position off the table and took the rest off back at $40 in the spring 2020 as we are positioning our portfolio to have significantly higher upside in the nanocap space as the economy and the small cap markets recover over the next few years. We may come back to MO in the future as it is a solid dividend yielding investment, but as we mentioned earlier, our strategy does involve off-the-beaten-path companies with an opportunity to get repriced on growth of revenues and earnings and Altria Group’s low growth was not going to get us the returns we seek given the repricing of the value segment of the small cap markets.”
1. Philip Morris, Inc. (NYSE:PM)
No of HFs: 50
Total Value of HF Holdings: $2.63 Billion
The top hemp stock to buy now is PM. The top hedge fund holder of this stock is Donald Yacktman’s Yacktman Asset Management which had over $1 million invested in the stock at the end of September. An insider recently purchased 500 shares at around $78 in May 2019. The stock is up 6% since then. PM was mentioned in an article we published about the 15 Best Tasting E-juice E-liquid Flavors For Beginners. First Eagle Investment Management mentioned the stock in its Q2 2020 investor letter:
“Philip Morris was able to recover some of the ground lost during the first quarter selloff but remains well below its early-year highs. Tobacco industry volumes were hurt by Covid-19, as lockdowns and other social-distancing restrictions in certain key markets hurt demand. Duty-free sales also suffered given the lack of global travel during the period. Given its pricing power, cost discipline and robust balance sheet, we believe Philip Morris appears well positioned to navigate the ongoing transition from traditional combustible tobacco products to “heat not burn” alternatives.”
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>>> Scotts Miracle-Gro reports first-ever Q1 profit, will air first Super Bowl ad
MarketWatch
Feb. 3, 2021
By Tonya Garcia
https://www.marketwatch.com/story/scotts-miracle-gro-reports-first-ever-q1-profit-will-air-first-super-bowl-ad-2021-02-03?siteid=yhoof2
Scotts Miracle-Gro Co. SMG, -0.04% reported its first-ever fiscal first-quarter profit and sales that reached a record. Shares rose 3.3% in Wednesday premarket trading. Net income totaled $24.4 million, or 43 cents per share, after a loss of $71.4 million, or $1.28 per share, last year. Adjusted EPS of 39 cents blew past the FactSet consensus for a loss of 77 cents. Scotts Miracle-Gro typically reports a loss due to the seasonal nature of the lawn care and gardening business. Sales totaled $748.6 million, up from $365.8 million and also far exceeding the FactSet consensus for $595.0 million. "Our year-round commitment to driving the conversation with consumers will include our first commercial specially produced for the Super Bowl, which is scheduled to appear in the second quarter of this Sunday's game," said Jim Hagedorn, Scotts Miracle-Gro chief executive, in a statement. "That kind of reach, coupled with our data-driven and highly targeted approach to social media, is key in our efforts to retain the millions of new consumers who have entered our category over the past year."
Scotts Miracle-Gro now expects full-year fiscal 2021 sales to grow 1% to 6%, up from previous guidance for flat sales to 5% growth. Adjusted EPS is expected to be $8.00 to $8.40. The FactSet consensus is for sales of $4.257 billion, suggesting 3% growth, and EPS of $8.36. The company is now guiding for 20% to 30% sales growth for the Hawthorne Gardening Company, which specializes in materials for indoor and hydroponic growing, up from previous guidance for 15% to 20% growth. Scotts Miracle-Gro stock has soared 84.5% over the last year, far outpacing the benchmark S&P 500 index SPX, +0.39%, which is up 17.8% for the period.
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>>> Marijuana Stocks Jump On Legalization Hopes, Retail Rally; Are Any Good Buys Now?
Investor's Business Daily
BILL PETERS
02/03/2021
https://www.investors.com/news/marijuana-stocks-good-buy/?src=A00220
Marijuana stocks have moved higher as hopes increase for wider U.S. legalization. Does that make marijuana stocks good buys now?
With President Joe Biden in the White House, a Democrat-controlled House and a 50-50 split in the Senate, marijuana stocks have begun to recover some of the losses they endured over the past two years, when losses and cash concerns turned investors away.
And in February, Senate Majority Leader Charles Schumer and Sens. Cory Booker and Ron Wyden said they would make cannabis reform a priority this year. Industry executives said that Jazz Pharmaceuticals' (JAZZ) planned acquisition of GW Pharmaceuticals (GWPH), which makes drugs derived from cannabis, added to the mainstream acceptance. The House voted to pass the MORE Act in December, and on Election Day, five states voted to legalize cannabis in some form.
Cannabis industry executives have also predicted a domino effect — with neighboring states feeling pressure to legalize in order to prevent a flight of tax revenue to newly legal states. And they say having more legal states increases the likelihood the government will take action to roll back restrictions on a national level.
Meanwhile, some marijuana stocks like Sundial Growers (SNDL) have gotten swept up in the Reddit-driven surge that took GameStop (GME) for a ride this year.
However, the marijuana industry's finances are, in many ways, still a mess. And profitability has been hard to come by.
Broader Cannabis Industry Struggles
Before the election, and before the coronavirus pandemic, analysts predicted a tough stretch ahead for marijuana stocks, as cash and financing dried up.
Efforts by Canada's big pot companies to tap the U.S. market for hemp, which is legal, and CBD, which comes from hemp, haven't always worked. New executives, focused more on balance sheets than startup swagger, aren't done cutting costs.
Layoffs, executive departures and steep write-downs have been common among the top Canadian players. Big producers like Canopy Growth (CGC) and Aurora Cannabis (ACB) scaled back operations. The pandemic is still coursing through North America. Having money in the bank is still crucial.
Andrew Carter, an analyst who covers marijuana stocks at Stifel, has said Canada's big pot producers face increasing price competition as rivals roll out cheap weed brands to compete with the illicit market.
As the coronavirus pandemic leaves the economy — and service levels at pot dispensaries — in flux, investors and analysts have focused more on which companies have enough cash to ride out the stoppages.
Analysts have pointed to marijuana stocks like Canopy Growth and Cronos Group (CRON) as having healthy cash positions, thanks to big investments from Constellation Brands (STZ) and Altria (MO), respectively.
Marijuana Stocks' Fundamentals
Earnings growth, or at least the prospect of strong earnings, is a hallmark of top stocks. But the marijuana industry, broadly, is losing money. Not surprisingly, marijuana stocks have poor Earnings Per Share Ratings.
Innovative Industrial Properties (IIPR), a REIT that leases to cannabis companies, leads with a 72 EPS Rating out of a best-possible 99.
At the low end, Cronos Group, Aphria (APHA) and Aurora Cannabis have EPS ratings of 8, 5 and 3, respectively.
Is It Time To Buy Or Sell These Large-Cap Stocks?
Marijuana Stocks' Technicals
Throughout much of 2019 and 2020, marijuana stocks fell on disappointing financials. The Composite Ratings for pure-play marijuana stocks listed on the major U.S. exchanges mostly aren't great. The best rating for a pure-play pot producer currently goes to Canopy Growth stock, which stood at 91 out of a best-possible 99.
Innovative Industrial Properties has a 95 Composite Rating, the best overall.
IBD research says investors should focus on stocks with Composite Ratings higher than 90. The Composite Rating is a broad measure of a stock's performance, including earnings and various technical factors.
The relative strength lines of most marijuana stocks, which measure their performance against the broader S&P 500, have moved higher since the election.
Marijuana Stocks' Chart Patterns
When a stock dips or flattens out into a base after a charge higher, that can indicate that investors are taking a breather, shaking out bearish traders before more sustained support comes in.
Investors should also look for stocks with strong fundamentals, and that are breaking out of proper bases, IBD's research shows.
Aphria Stock Chart
Aphria stock jumped on Jan. 14 after the company reported sales that beat expectations. However, one analyst expressed concern about slowing cannabis sales growth.
The advance higher meant the stock was extended from a base with an 8.98 buy point.
Aphria and rival Tilray (TLRY) announced plans to merge in December. The $3.9 billion merger would create the largest multinational weed company by revenue, the companies said. But some analysts questioned whether it was the right fit.
APHA stock has continued to soar, hitting record highs in early February.
Cronos Stock Chart
Cronos Group stock vaulted from its 10-week line and has continued to move higher, hitting a 52-week high, well extended from any entry.
As with other marijuana stocks, Cronos has undergone changes at the top. The company in September said it had appointed Kurt Schmidt as its new CEO. Mike Gorenstein, who had been Cronos' top executive, was appointed executive chairman.
Cronos Group in November reported third-quarter results that beat estimates.
Cronos has a CBD business in the U.S., via the acquisition of Lord Jones. But the pandemic has kept people from physical stores that might sell the substance. Canadian pot companies have said U.S. retailers expressed reluctance to sell CBD products after the FDA began cracking down on some sales.
Canopy Growth Stock Chart
Canopy Growth stock is at highs not seen since 2019, and is extended after rebounding from a pullback to the 50-day line. Of all the pure-play U.S.-listed marijuana stocks, it is worth the most, with a market value of around $16.5 billion.
The company, when it reported fiscal second-quarter earnings in November, said it would channel products through its U.S. infrastructure when U.S. marijuana laws allowed it.
"We've already developed a U.S. ecosystem that positions us well as a hemp and cannabis powerhouse — when, not if, U.S. permissibility happens," CEO David Klein said.
Canopy also said its market share in Canada had increased, as more pot shops opened there. And it said it was "firmly on a path" to hit positive adjusted EBITDA at some point during the next fiscal year. EBITDA stands for earnings before interest, taxes, depreciation and amortization.
Under Klein's leadership, the company has worked to undo the expansion efforts of former CEO Bruce Linton. Linton tried to expand globally into early, undeveloped cannabis markets and strike big, headline-grabbing deals elsewhere. But as losses piled up, he was ousted in 2019.
Tilray Stock Chart
Tilray stock has rebounded powerfully from its 10-week line. But it is well extended from a consolidation with a 12.25 entry.
In November, Tilray reported third-quarter sales that missed expectations. But its loss was narrower than expected. The company said it was "poised to deliver positive or break even" adjusted EBITDA in the fourth quarter of 2020.
Tilray has been trying to grow sales via its international medical marijuana business, its Canadian recreational business, and its hemp food business, which comes from Manitoba Harvest. Tilray acquired Manitoba Harvest in 2019.
However, Tilray said it was waiting for more clarity on FDA regulations before advancing into the U.S. CBD market. And it noted that restrictions related to the coronavirus pandemic could rattle business in the European Union, where some nations have legalized medical cannabis.
Aurora Cannabis Stock Chart
Of the marijuana stocks named here, Aurora Cannabis has the weakest Composite Rating. That rating stands at 41.
In November, Aurora reported falling quarterly sales, and said it was "not satisfied" with its Canadian recreational business. It also said it would focus more on its premium products. Analysts, as they have in the past, expressed concerns about the company's cash burn and cash balance.
In September, Aurora announced a new CEO. Later in the month, Aurora forecast falling cannabis sales. It took a noncash write-down of goodwill and intangible assets of 1.6 billion Canadian dollars. For the full fiscal year, it lost 34 Canadian dollars per share.
The company is trying to close smaller facilities. But Bill Kirk, an analyst with MKM Partners, still said demand was lacking.
In a research note about Aurora in September, he said: "Please Stop Growing So Much Weed."
He added that there was no demand for the 35,000 kilograms of pot the company expects to grow, on average, per quarter.
"Aurora grows more stuff that people don't want than they grow stuff people want," he said in a research note. "While Aurora's cost to grow is low, it would be more noteworthy if a larger percentage of the harvests were sellable."
In July, Aurora said it would cut staff in Europe and shrink other operations there.
Innovative Industrial Properties Stock Chart
Innovative Industrial Properties buys properties from pot growers and then leases them back. Roth Capital has said in a research note that more purchases were likely ahead. The real estate investment trust, it said, will try to lock in gains before potential federal reforms open up more banking and financing options to the cannabis industry.
Roth said "the sale-leaseback model remains the nondilutive capital raising method of choice for many operators and (Innovative Industrial) remains the industry leader with unmatched access to capital compared to its peers."
IIPR stock is extended from a three-weeks-tight pattern with a 165.09 buy point. But shares are in range from another short consolidation with a 199.45 buy point.
Marijuana Industry ETFs
Amid the volatility in marijuana stocks, one way to avoid stock-specific risk is via ETFs. The ETFMG Alternative Harvest (MJ) ETF, which tracks the cannabis industry, has also rebounded. But it is extended from a 16.36 entry.
The AdvisorShares Pure Cannabis (YOLO) ETF is extended at a roughly 20-month high.
Are Marijuana Stocks Buys Right Now?
Federal legalization in the U.S. and other markets isn't guaranteed. Profits are still inconsistent. No Canadian player has a huge market share. It's not clear which marijuana stocks will be longer-term winners.
But are marijuana stocks a good buy right now? Investors who are particularly eager to get into the sector could pick up marijuana stocks that are in buy zones. IIPR stock, which has the best fundamentals of the group, is the only one currently in buy range.
But the earnings outlook remains tough, and the legalized pot market continues to face challenges from illicit suppliers. Even as hopes for reform grow, the sector is still volatile. Stocks that were in buy zones have quickly become extended.
Ideally, IBD's research shows, investors would be better served looking for stocks with better fundamentals and that are closer to their highs.
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>>> GrowGeneration Acquires Maine-Based Grow Depot
Yahoo Finance
February 1, 2021
https://finance.yahoo.com/news/growgeneration-acquires-maine-based-grow-130000162.html
Acquisition Brings Total Number of GrowGen Locations Nationwide to 42
DENVER, Feb. 1, 2021 /PRNewswire/ -- GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced its acquisition of Grow Depot, a two-store chain in Auburn and Augusta, Maine. The acquisition brings the total number of GrowGen hydroponic garden centers in Maine to five, with locations in Auburn, Augusta, Biddeford, Brewer, and York.
"It's a very exciting time in Maine's adult-use market, and we're pleased to expand our footprint in the state through our acquisition of Grow Depot, which has proudly served the Central Maine area for nearly a decade," said Darren Lampert, GrowGeneration's CEO. "With our expanded footprint, the Maine market is expected to generate 2021 annual revenues of over $20 million for GrowGen."
Founded in 2012 by Jim Parisi, Grow Depot carries a large catalog of equipment for indoor growing and hydroponic systems. As part of the transaction, both Jim and Anthony Parisi, with over two decades of experience in the indoor growing supply industry, and their 10 employees will join GrowGen's team of more than 450 grow professionals.
The Grow Depot acquisition is the Company's second of the year and follows yet another quarter of record earnings. Last month, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million-$350 million and raised its 2021 adjusted EBITDA guidance to $38 million-$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.
For more information about GrowGeneration, or to locate its stores, please visit
www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 42 stores, which include 5 locations in Colorado, 13 locations in California, 2 locations in Nevada, 1 location in Arizona, 2 locations in Washington, 6 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 2 locations in Oregon, 5 locations in Maine and 1 location in Florida. GrowGen also operates an online superstore for cultivators at growgeneration.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all the major states in the US and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the US. By 2025, the global hydroponics system market is estimated to reach approximately $16 billion.
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>>> GrowGeneration Acquires Washington-Based Indoor Garden and Lighting, Expands Footprint in Pacific Northwest
Yahoo Finance
January 26, 2021
https://finance.yahoo.com/news/growgeneration-acquires-washington-based-indoor-130000312.html
Acquisition Brings Total Number of GrowGen Locations to 40.
DENVER, Jan. 26, 2021 /PRNewswire/ -- GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced the acquisition of Indoor Garden & Lighting, a two-store chain of hydroponic equipment and indoor gardening supply stores serving the Seattle and Tacoma, Washington area. The Company will be consolidating its current Seattle operation into the acquired stores. This acquisition brings the total number of GrowGen hydroponic garden centers nationwide to 40 stores.
"We're thrilled to kickstart 2021 with our acquisition of Indoor Garden & Lighting, which boasts a strong commercial customer base and a talented team of grow professionals," said Darren Lampert, GrowGeneration's CEO. "This deal expands our footprint in the Pacific Northwest and puts us in close proximity to Tacoma's large commercial operators. With the addition of Indoor Garden & Lighting, we expect Washington's thriving adult-use market to generate annual revenues of $10 million for GrowGen."
Founded in 1995, by Mike Long, Indoor Garden & Lighting has operations in Tacoma and Mountlake Terrace. GrowGen plans to close its current Seattle storefront and consolidate it with Indoor Garden & Lighting's Mountlake Terrace location. GrowGeneration also plans to operate out of Indoor Garden & Lighting's 10,000-square-foot warehouse in Tacoma. As part of the deal, Long and his team of cultivation experts will join GrowGeneration.
The Indoor Garden & Lighting acquisition is the Company's first acquisition this year, and follows yet another quarter of record earnings. Earlier this month, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million-$350 million, and raised its 2021 adjusted EBITDA guidance to $38 million-$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.
For more information about GrowGeneration, or to locate its stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 40 stores, which includes 5 locations in Colorado, 13 locations in California, 2 locations in Nevada, 1 location in Arizona, 2 locations in Washington, 6 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 2 locations in Oregon, 3 locations in Maine and 1 location in Florida. GrowGen also operates an online superstore for cultivators at growgeneration.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all the major states in the US and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the US. By 2025, the global hydroponics system market is estimated to reach approximately $16 billion.
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>>> Why Is Everyone Talking About Innovative Industrial Properties Stock?
There are significant advantages in investing in marijuana REITs over traditional growers.
Motley Fool
by Zhiyuan Sun
Jan 22, 2021
https://www.fool.com/investing/2021/01/22/why-is-everyone-talking-about-innovative-industria/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Over the past year, shares of medical cannabis real estate investment trust (REIT) Innovative Industrial Properties (NYSE:IIPR) have soared by close to 140%. Since its IPO in December 2016, it has returned an even more impressive 930% to investors.
Such a level of share appreciation is abnormal for REIT companies, as they rely heavily on pre-negotiated rent checks and lease payments for their revenue. Just what could be behind Innovative Industrial's impressive share rally, and is it too late to buy into the hype?
A superb business model
Innovative Industrial rents marijuana growing, distribution, and manufacturing facilities to state-licensed medical cannabis operations. It plays a vital role in the medical marijuana industry, as the drug is still illegal on a federal level, meaning start-up dispensaries do not have access to traditional funding methods.
To make matters worse, some states require vertical integration before prospective growers can get their license. This means they must own their entire supply chain, ranging from cultivation facilities to distribution centers to retail stores. Such a feat isn't really possible without the help of private financiers like Innovative Industrial.
The company acquires established real estate property in the sector. Afterward, it leases the assets back to tenants who grow marijuana. It currently has 66 facilities across 16 states, with a total investment of $1.3 billion. The weighted average length of the lease it offers is 16.6 years.
Back in the third quarter of 2020, it brought in about $34.3 million in revenue and $18.9 million in profits, triple what it earned in Q3 2019. Innovative Industrial also generated $54 million in net income from Q3 2019 to Q3 2020. That's a remarkable achievement and represents a 1,740% increase over its 2018 full-year profits.
A big driver behind the company's spectacular growth is the mass expansion of the marijuana industry in the U.S. With Democrats gaining control of the Senate after run-off elections in 2021, the Biden administration could decriminalize the drug or legalize it on the federal level. By 2025, the medical marijuana industry is set to almost triple from where it was in 2019, reaching a $34 billion valuation. It is also possible that all 50 states could legalize medical marijuana by that year -- a 2019 poll from Quinnipiac University showed 93% support among Americans for such an initiative.
Innovative Industrial is also unique in that it pays out almost all of its earnings in dividends. The stock has an annual yield of 2.36%. Given that it has a debt-to-asset ratio of just 9.4%, the company can safely maintain its current payout for quite some time without worrying about other financial obligations.
What's the verdict?
Right now, Innovative Industrial is trading at 61 times earnings. That is quite a premium considering the REIT sector, in general, is valued at 50 times net income. However, one key aspect to account for is the company's 200% year-over-year revenue and earnings growth. Meanwhile, its generic REIT competitors offer investors an average of just 2% annual profit growth in the next five years.
With that in mind, the company's premium seems more than justified. In terms of funds from operations (FFO), the stock is even cheaper. FFO adds non-cash items such as depreciation and amortization back into a REIT's earnings. Innovative Industrial trades for about 40 times FFO.
Overall, the REIT is poised to be a major player in the green wave that is sweeping across the U.S., without even coming into contact with cannabis plants themselves. Given the current "go big or go home" regulatory environment, new pot-growers will be in dire need of a large amount of capital right from the get-go.
If you are a marijuana investor who not only wants to see your holdings grow, but also enjoy a safe and consistent dividend, Innovative Industrial might just be your best pick.
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>>> Cannabis-industry investors ‘are likely overestimating the odds for federal decriminalization,’ analyst says
MarketWatch
Jan. 8, 2021
By Victor Reklaitis
https://www.marketwatch.com/story/cannabis-industry-investors-are-likely-overestimating-the-odds-for-federal-decriminalization-analyst-says-11610127512?siteid=yhoof2
SAFE Banking Act seen as marijuana-related bill that’s most likely to pass Democratic-run U.S. Senate in the next 2 years
While cannabis stocks have soared this week after Democratic wins in Georgia’s runoffs put that party in control of the U.S. Senate, one analyst has warned the rally looks overdone.
“Investors in cannabis producers, including Tilray (TLRY), Canopy Growth (CGC), and Aurora Cannabis (ACB), are likely overestimating the odds for federal decriminalization and de-scheduling along the lines of the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act that passed last month in the House,” said Beacon Policy Advisors analyst Charlotte Jenkins in a note Thursday.
“Passage of the MORE Act is unlikely even in a Democratic-controlled Senate because there is likely not enough Republican support to reach the requisite 60 votes to pass the MORE Act or Schumer’s similar legislation,” she added, referring to Democratic Sen. Chuck Schumer of New York, who is set to become the chamber’s majority leader.
The Senate’s filibuster rule requires 60 votes to end debate on most items and allows the minority party to stymie the majority’s efforts. With the Democratic victories in Georgia, the party will have 50 seats in the 100-seat chamber and only get control of it because a Democratic vice president, Kamala Harris, will cast tiebreaking votes.
Others who are tracking the prospects of cannabis-related legislation also are highlighting how getting to 60 votes would be key.
“The federal decriminalization of marijuana certainly becomes more likely with Democrats in control of the Senate, though any major legislation would need 60 votes in the upper chamber to avoid a filibuster,” said Michael King, co-founder and CEO of a California-based cannabis company, Kings Garden, in a statement.
Tilray TLRY, +23.57% has gained 40% this week, while Canopy Growth CGC, +7.58% WEED, +7.13% is up 24% and Aurora Cannabis ACB, +9.62% ACB, +8.87% also has jumped 24%.
The Cannabis ETF THCX, +7.90% has advanced 21% for the week, the ETFMG Alternative Harvest ETF MJ, +8.43% has added 18%, and Cronos Group CRON, +5.23% CRON, +4.71% has climbed 29%.
Also: House passes bill decriminalizing marijuana, but analysts say it’s unlikely to become law
Beacon’s Jenkins is more upbeat on the SAFE Banking Act‘s chances. That measure aims to protect banks KBE, +1.97% that work with the cannabis industry. It passed the Democratic-run House in 2019.
“Though Schumer and other Democrats will push for full decriminalization and will emphasize the racial justice (lol) aspects of that type of legislation, the SAFE Banking Act is the most likely cannabis legislation to pass in the next two years,” she wrote.
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Scotts Miracle-Gro - >>> Flowr and Hawthorne Canada Jointly Announce the Completion of the World’s First Cannabis Research and Development Facility of its Kind
The Flowr Corporation
January 5, 2021
https://finance.yahoo.com/news/flowr-hawthorne-canada-jointly-announce-130000942.html
Groundbreaking research center located in Kelowna, British Columbia, Canada will advance indoor cannabis cultivation techniques and systems
TORONTO and PORT WASHINGTON, N.Y., Jan. 05, 2021 (GLOBE NEWSWIRE) -- North America’s first research and development facility dedicated to advancing cannabis cultivation techniques and systems has been completed by The Flowr Corporation (TSXV: FLWR) and Hawthorne Canada Limited (“Hawthorne”). Hawthorne is a subsidiary of the Hawthorne Gardening Company division of The Scotts Miracle-Gro Company (NYSE:SMG). Scotts Miracle-Gro is the world’s leading marketer of branded consumer lawn and garden products and indoor growing solutions. Flowr cultivates and sells premium cannabis to medical and adult-use markets in Canada, Europe and Australia.
Located on Flowr’s cultivation campus in Kelowna, British Columbia, Canada, the R&D Center includes state-of-the-art laboratories, indoor grow suites, and training areas in a single building. Flowr will test cultivation systems and techniques using Hawthorne’s advanced lighting, fertilization and irrigation systems, growing mediums, and research protocols. In addition, Flowr intends to focus its own research on cannabis genetics and integrated growing systems in line with its goal of delivering premium quality cannabis products through highly efficient cultivation.
“We built Hawthorne to help cultivators of all sizes grow quality plants with high levels of efficiency and consistency. Completing the industry’s only dedicated R&D facility gives us a distinct advantage. We will leverage Flowr’s cultivation expertise and our technical capabilities into real world testing and results that will make a difference to growers,” said Chris Hagedorn, SVP & General Manager of Hawthorne Gardening. “We are proud of this collaboration with Flowr, a leading international cannabis company, with extensive growing experience indoors, in greenhouses and at-scale outdoors. Flowr is also one of a few companies that have had experience growing diverse genetics in different countries. We believe this experience will benefit our companies and the growers we serve.”
“The completion of the R&D Center brings our work with Hawthorne fully to life and will help keep both companies on the leading edge of cannabis cultivation for years to come,” commented Lance Emanuel, President and Interim Chief Executive Officer of Flowr. “Operationalizing the R&D Center is a major accomplishment for our organization and strengthens our competitive advantage in cultivation. We believe the long-term success of Flowr will be rooted in our ability to maximize the cannabinoid and terpene expression of genetics without sacrificing yield. The work we will do at the R&D Center will help us build upon the success we’ve had producing high quality, premium cannabis like our award-winning, flagship-strain BC Pink Kush beloved by budtenders and consumers throughout Canada. Leveraging our work at the R&D Center will be imperative to our eventual entry into the United States once federally permissible by law.”
The R&D Center is the centerpiece of a strategic R&D partnership formed by Flowr and Hawthorne in March 2018. It brings two of the world’s leading experts together to be at the forefront of cannabis cultivation. The operations will be led by Dr. Deron Caplan, the first person in North America to earn a PhD focused on cannabis cultivation and production. Dr. Caplan was awarded his doctorate by the University of Guelph in August 2018 and is Flowr’s Director of Research and Development. The R&D Center will be staffed by Flowr’s scientists, five of whom have PhDs in various plant biology, plant genetics and plant biochemistry disciplines. Hawthorne R&D will lead the research design and methodology.
All requisite licensing from Health Canada has been obtained by Flowr and the expectation is that the R&D Center will be operating at full capacity in Spring 2021. Research has already begun conducting growing trials at scale using Hawthorne products.
About Hawthorne Gardening Company
We know why you grow. And that influences everything we do. We are a company guided by a set of principles that motivate us every day. Hawthorne Gardening Company is built to serve growers of all sizes, from commercial cultivators to home hobbyists. We are made up of dozens of best-in-class brands, from Gavita, General Hydroponics and Sun System, to Botanicare and Mother Earth, that span every growing category from lighting to nutrients, growing environment, growing media, hardware, and many more. We drive bold research and development investments, unparalleled distribution capabilities and extensive service solutions that go far beyond product. And we use our voice to advance legislation that supports the responsible legalization of cannabis. Because our goal is to enable all growers to seize today's unprecedented opportunities and build the industry of tomorrow. Learn more at www.hawthorne-gardening.com.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. Its Canadian operating campus, located in Kelowna, BC, includes a purpose-built, GMP-designed indoor cultivation facility, an outdoor and greenhouse cultivation site, and a state-of-the-art R&D facility. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
Flowr aims to support improving outcomes through responsible cannabis use and, as an established expert in cannabis cultivation, strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products.
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Scotts Miracle-Gro - >>> These 2 Cannabis Stocks Are the Best Buys for 2021
They are both profitable and trading at low sales multiples. What's not to like?
Motley Fool
by David Jagielski
Dec 31, 2020
https://www.fool.com/investing/2020/12/31/these-2-cannabis-stocks-are-the-best-buys-for-2021/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Are you a cannabis investor looking for a quality stock to add to your portfolio? Then you probably know how challenging it can be to find a marijuana investment that's both profitable and trading for cheap. But with a little digging, it's clear that there are still some great opportunities for you to benefit from its inevitable growth.
Two pot stocks you can hold heading into 2021 that will give you a good balance of growth and profitability are Scotts Miracle-Gro (NYSE:SMG) and Village Farms International (NASDAQ:VFF). Both stocks are up more than 63% this year and have outperformed both the Horizons Marijuana Life Sciences ETF that's down 9% and the S&P 500, which has had an up-and-down stunning year, end up about 17%. Here's a look at why these stocks are still solid buys next year.
1. Scotts Miracle-Gro
Scotts Miracle-Gro is a safe business to invest in if you just want to dip your toes in the cannabis industry. Since it's not a pot producer, you don't need to worry about constant revaluations and the frequent gains or losses that can distort a cannabis company's earnings results. Scotts is known for its gardening business, but in recent years its Hawthorne segment is what's made the stock a hot buy, driving much of the company's growth.
Hawthorne provides companies with hydroponic gardening equipment to help grow cannabis. A hydroponics system uses pipes and pumps and only takes up a fraction of the space a garden or greenhouse would. It also doesn't require soil, making it easy for anyone to grow cannabis, even inside their own homes. That's why Hawthorne's products are in demand by both consumers wanting to cultivate marijuana themselves and by businesses looking for ways to make their operations more efficient.
On Nov. 4, the Ohio-based company released its year-end results for the period ending Sept. 30. Revenue of $4.1 billion was up 31% from a year ago as the company benefited from a surge in both of its key segments. Its U.S. consumer segment, which features its conventional gardening products, grew 90% in the fourth quarter and was up a total of 24% for the full fiscal year. A big reason for the spike is that with more people spending time at home during the pandemic, gardening activities grew in popularity. Meanwhile, the company's Hawthorne business continued to generate strong numbers; the segment was up 61% over the whole year and 68% in Q4. Overall, Scotts reported a profit of $388.6 million in fiscal 2020, down 16% from the prior year. The company says this was mainly due to a difference in non-operating income.
Although there is reason to hope that the pandemic may be ending now that vaccines are available for COVID-19, it's a process that will take at least several months. And with lockdowns in place across the country and cases of COVID-19 continuing to rise, people are still likely to spend a lot of time at home in 2021, which could mean gardening tools and equipment remain in strong demand. The Hawthorne business is also a safe bet on growth in 2021. Four new states -- Arizona, Montana, New Jersey, and South Dakota -- passed legislation in November to legalize recreational marijuana use, which is likely to push up the demand for the cultivation of cannabis.
The stock is also a relatively cheap buy given its sales numbers, trading at a price-to-sales (P/S) multiple of less than three, which compares favorably against other high-growth cannabis stocks, including Innovative Industrial Properties and GrowGeneration:
With a cheap valuation, a profitable business, and lots of growth still to come, Scotts is a top cannabis stock to own in 2021 and beyond.
2. Village Farms
If you're after a true pot producer, consider adding British Columbia-based Village Farms to your portfolio. Over the past nine months, the company reported sales of $122.7 million, which grew 10% from the same period last year. And it generated a profit of $4.6 million during that time. While that's down from $9.5 million a year ago, Village Farms' numbers could look a lot better in 2021.
That's because on Nov. 2, the company announced it completed the acquisition of Pure Sunfarms. The company already owned a majority (58.7%) stake in the business, but after buying out Emerald Health's ownership for $60 million, Village Farms now owns 100% of the low-cost greenhouse operation. By fully owning the business, Village Farms can benefit from Pure Sunfarms' profits in their entirety, and longer needs to split them with Emerald Health. Pure Sunfarms has turned a profit for seven straight periods.
Despite its gross margins falling from 75% to 40% in the past year, Pure Sunfarms still generated a profit of $9.4 million over the nine-month period ending Sept. 30. Although that's down 61% from the $24.1 million profit the company generated a year ago, it will still help pad Village Farms' bottom line.
Compared to other notable Canadian pot stocks, including Canopy Growth, Aurora Cannabis, and HEXO, Village Farms stock also looks like a cheap buy when factoring in their respective sales numbers:
Village Farms is a hot buy heading into 2021 as the inclusion of Pure Sunfarms into its operations only makes its business more competitive.
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>>> Cannabis stocks surge on hopes Democrats' win in Georgia could spark US legalization
Yahoo Finance
by Zack Guzman
January 6, 2021
https://finance.yahoo.com/news/cannabis-stocks-surge-on-hopes-dems-performance-in-georgia-could-spark-us-legalization-212901168.html
Cannabis stocks surged on Wednesday following the early results of Georgia’s key Senate runoffs that could open the door to federal cannabis reform.
Shares in Canadian cannabis giants, including Canopy Growth (CGC) and Tilray (TLRY), surged more than 10% while multi-state U.S. operators saw double-digit gains as well led by Green Thumb Industries’ (GTBIF) 8% gain.
With Democratic candidate Raphael Warnock claiming victory in his race against incumbent Sen. Kelly Loeffler (R -GA) and Democratic challenger Jon Ossoff winning his race against GOP Sen. David Perdue, Democrats took control of the Senate. That fuels hopes that prior roadblocks, including refusal on the part of Senate Majority Leader Mitch McConnell to bring cannabis reform bills to the chamber, could be removed to move legalization efforts forward on a national level.
In a new note, Cowen cannabis analyst Vivien Azer said the change of Senate control would catalyze constructive changes for the sector.
“With the Democrats likely taking control of the U.S. Senate, the backdrop for U.S. cannabis is now far more constructive than our base case had assumed,” she wrote. That view was echoed by Piper Sandler analyst Michael Lavery, who added that Democratic control of the Senate, “could help provide better access to capital, alleviate operating headwinds, and help drive industry growth.”
After legislative efforts stalled and a vaping sickness stirred new concerns, the governors of New York, New Jersey and Connecticut still want to make recreational pot legal. But the states have different approaches and timeframes, and some proposals have shifted since last year.
That said, even with control of the Senate, the margin of control would be slim to press for more progressive reforms such as the Vice President-elect Kamala Harris-backed Marijuana Opportunity Reinvestment and Expungement Act (MORE) Act which would decriminalize marijuana at a federal level. Azer estimates more moderate reform could come first, perhaps in the form of a modified Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, which could allow cannabis companies to access traditional banking and financial services and alleviate burdensome federal taxes.
“To the extent that the industry is presented with an opportunity to lobby for either of these measures, we would expect a consensus to form around the STATES Act over the MORE Act,” she said.
The AdvisorShares U.S. multi-state operator focused ETF (MSOS) closed about 6% higher while the Canadian focused Alternative Harvest ETF (MJ) finished the day up about 7%.
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>>> GrowGeneration Acquires Assets of Canopy Crop Management
Yahoo Finance
December 23, 2020
https://finance.yahoo.com/news/growgeneration-acquires-assets-canopy-crop-130000778.html
Company expands its portfolio of private label products within the nutrient and additive space, acquiring the Power SI brand of silicic acid-enriched fertilizers
DENVER, Colo., Dec. 23, 2020 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest chain of specialty hydroponic and organic garden centers, today announced it has acquired Southern California-based Canopy Crop Management and its complete portfolio of products, including the Power SI brand of silicic acid-enriched fertilizers. Established in 2019, Canopy Crop Management is recognized as the industry's leading silicic acid company. Power SI will continue to be sold through Canopy Crop Management to all hydroponic retail stores including Grow Generation's 39 locations.
"Private label expansion has become a strategic priority for GrowGen, and a key component of our long-term revenue generation plan," said Michael Salaman, GrowGen's President and Co-Founder. "We are proud to bring Canopy Crop Management and its founder Rex Gill under our umbrella. Rex brings his unique technologies and proprietary products to GrowGen and will be instrumental in leading private label product development within the nutrient and additive space."
"I started Canopy Crop Management with the goal of providing the highest-quality formulations, and I'm fortunate to find a partner like GrowGen, one of the most trusted names in hydroponic and organic gardening," said Gill, Canopy Crop Management's CEO. "I look forward to creating new and innovative silicic acid formulas and organic pesticides and fungicides that are much more cost effective than what is currently on the market."
The Power SI acquisition is the Company's second acquisition in Southern California this month and third acquisition in the state since November. Last week, the Company announced its acquisition of Grassroots Hydroponics, a three-store chain of hydroponic garden centers in Anza, Lake Elsinore and Murrieta; and in November, the Company announced it had acquired The GrowBiz, the nation's third-largest chain of hydroponic garden centers, with stores in Northern California and Oregon.
Named best cannabis stock of 2020 by Bloomberg News, the Company just completed a $172.5 million raise to fuel continued growth in the post-election cannabis landscape.
For more information about GrowGeneration, or to locate its stores, visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 39 stores, which include 5 locations in Colorado, 13 locations in California, 2 locations in Nevada, 1 location in Arizona, 1 location in Washington, 6 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 2 locations in Oregon, 3 locations in Maine and 1 location in Florida. GrowGen also operates an online superstore for cultivators at growgeneration.com. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all the major states in the U.S. and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. By 2025, the global hydroponics system market is estimated to reach approximately $16 billion.
About Canopy Crop Management:
Canopy Crop Management is a group of growers who want to bring products to the market we enjoy using in our gardens. With backgrounds in cultivation and hydroponic supply, we created a proprietary line of specialty additive products – the backbone of which is monosilicic acid – that deliver world-class results.
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$LRSV: 4 Cannabis Stocks To Consider after House Votes to Decriminalize Cannabis
Click here:
http://premarketbuzz.com/4-cannabis-stocks-back-in-focus-after-house-votes-to-decriminalize-cannabis
Link Reservations Inc is CBD Petcare provider dedicated to improving the health and life conditions of pets worldwide. Developing and marketing hemp-based CBD products for cats, dogs and horses, the Company is currently present in Europe and in the US. A pioneer in the area, Link Reservations Inc products can be found under its brand LinkResPets (http://www.linkrespet.com).
Name | Symbol | % Assets |
---|---|---|
Amplify U.S. Alternative Harvest ETF | MJUS | 46.75% |
Tilray Brands Inc | TLRY | 8.02% |
Innovative Industrial Properties Inc | IIPR | 6.98% |
Cronos Group Inc | CRON.TO | 5.98% |
SNDL Inc Ordinary Shares | SNDL | 5.35% |
Canopy Growth Corp | WEED.TO | 3.61% |
Chicago Atlantic Real Estate Finance Inc | REFI | 3.50% |
AFC Gamma Inc Ordinary Shares | AFCG | 2.68% |
Aurora Cannabis Inc | ACB.TO | 2.51% |
High Tide Inc | HITI.V | 1.85% |
Name | Symbol | % Assets |
---|---|---|
AdvisorShares Pure US Cannabis ETF | MSOS | 43.99% |
High Tide Inc | HITI.V | 6.65% |
Cardiol Therapeutics Inc Class A | CRDL.TO | 5.81% |
Village Farms International Inc | VFF | 5.66% |
OrganiGram Holdings Inc | OGI.TO | 3.46% |
Chicago Atlantic Real Estate Finance Inc | REFI | 3.18% |
Ispire Technology Inc | ISPR | 2.99% |
SNDL Inc Ordinary Shares | SNDL | 2.98% |
Cronos Group Inc | CRON.TO | 2.97% |
Name | Symbol | % Assets |
---|---|---|
Invesco Shrt-Trm Inv Gov&Agcy Instl | AGPXX | 7.80% |
Curaleaf Holdings Inc | CURA.TO | 7.59% |
Tilray Brands Inc | TLRY | 6.54% |
Innovative Industrial Properties Inc | IIPR | 5.84% |
TerrAscend Corp | TSND.TO | 5.01% |
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