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8 Red-Hot Pot Stocks Toughing Out Last Week's Winter Weather
By: Schaeffer's Investment Research | February 26, 2021

• ARNA, IIPR, and JAZZ released Q4 earnings this week

• New details of APHA and TLRY merger were just released

Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks last week, and look ahead to how the cannabis industry will continue to develop in the 2021.

Investor interest in the cannabis industry is growing at an explosive growth rate, and the leading players continue to break through legal barrier after legal barrier, especially in the United States. More than 40 U.S. states legalized recreational and/or medical marijuana by the end of 2020. Now, more and more companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.

After the Senate runoff elections tilted the majority toward Democrats last month, there has been continuing anticipation that the prospects of cannabis legislation will now find footing in Congress. While full-scale legalization may be out of reach, smaller reforms tied to police and banking could positively impact the cannabis industry.

If federal legalization happens, Wall Street analysts have recently said that, by 2030, the cannabis market could be worth somewhere around $115 billion. As the cannabis sector continues to grow, investors can anticipate many more marijuana stock initial public offerings (IPOs) on the horizon for the cannabis industry.

Here is a quick roundup of major cannabis stock news this week:

Aphria Inc. (NASDAQ:APHA), and Tilray, Inc. (NASDAQ:TLRY), global pioneers in cannabis research, cultivation, production, and distribution, announced the launch of a new website: www.aphriatilraytogether.com on Feb. 23. This new, dedicated resource seeks to provide shareholders of both companies with pertinent information, news, and updates leading up to shareholders' special meetings. APHA's and TLRY's respective shareholders will vote on the resolutions necessary to implement the two companies' proposed business merger soon.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) provided a corporate update on Feb. 23 and released its financial results for the fourth quarter and full-year of 2020. Revenues for the fourth quarter were zero compared to $3.0 million year-over-year. Net loss for the fourth quarter was $122.2 million compared to a net loss of $88.3 million for the same period in 2019 for ARNA.

Cbdmd Inc (NASDAQ:YCBD) chairman & co-CEO, Martin Sumichrast, sold 395,600 shares of YCBD on Feb. 20, at an average price of $4.43 a share. The total sale was worth $1.8 million.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) announced its financial results for the full year and fourth quarter of 2020, and also provided financial guidance for 2021 on Feb. 23. Total revenues increased 9% in 2020 and 14% in the fourth quarter of 2020 compared to the same periods in 2019.

Innovative Industrial Properties, Inc. (NYSE:IIPR), the first and only real estate company on the New York Stock Exchange (NYSE) focused on the regulated U.S. cannabis industry, announced its results for the fourth quarter and year ended December 31, 2020 on Feb. 24. IIPR generated total revenues of approximately $37.1 million for the quarter, representing a 110% increase year-over-year.

Sundial Growers Inc. (NASDAQ:SNDL), a licensed Canadian producer of recreational Cannabis, and Indiva Limited and a leading Canadian producer of cannabis edibles, announced on Feb. 24 the closing of the previously announced $22,000,000 strategic investment into Indiva by SNDL.

Village Farms International, Inc. (NASDAQ:VFF), reassured shareholders on Feb. 23 that operations at its Texas greenhouse facilities have continued uninterrupted amidst the recent power outages and water supply shortages that have been experienced throughout many parts of the state as a result of unseasonably cold temperatures and severe weather conditions.

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