- Financialnewsmedia.com News Commentary
PALM BEACH, Florida, Dec. 5, 2019 /PRNewswire/ -- Two major catalysts will drive long-term growth for cannabis. One, major retailers are just beginning to embrace CBD thanks to sizable consumer demand. To date, Neiman Marcus, Sephora, Vitamin Shoppe, Kroger, Barney's DSW, CVS, American Eagle, and Walgreen's have all jumped at the opportunity. Now, even Dick's Sporting Goods announced a deal to sell CBD products in its stores nationwide. Two, two-thirds of Americans now support cannabis legalization. In fact, according to the Pew Research Center, 67% of Americans now support it. In addition, only 32% of adults oppose legalization, as compared to 52% in 2010. That's leading to a wide range of opportunity for companies including CBD Global Sciences, Inc. (CSE:CBDN), Green Thumb Industries Inc. (CSE:GTII)(OTCQX:GTBIF), Charlotte's Web Holdings Inc. (OTCQX:CWBHF)(CSE:CWEB), Canopy Growth Corporation (TSX:WEED)(NYSE:CGC), and Aurora Cannabis Inc. (NYSE:ACB)(TSX:ACB).
CBD Global Sciences, Inc. (CSE:CBDN) BREAKING NEWS: CBD Global Sciences, Inc. just announced the release of financial and operational results for the third quarter ended September 30, 2019. For the nine months ended September 30, 2019; revenue growth of 800% increase to $4.9 million from $600,000 revenue in all of fiscal 2018. The increase is attributed to a larger crop size, more effective farming methods, and the harvesting of plants for smokable and pre-rolled products. A larger variety of products sold in 2019 versus 2018. Addition of CBD products, smokable bud and clones sold in 2019. A larger crop harvest in 2018 (sold in 2019) versus crop harvest in 2017 (sold in 2018). The 2019 crop is larger and more potent than 2018. Gross Profit (before fair value adjustments) increased to 74% in 2019 from 4.9% in 2018. This was a direct result of increase in the sales price per pound with the addition of smokable CBD products and increase consumer demand. Larger amounts of biomass were harvested per plant in 2019 versus in 2018. Potency of CBD per plant continues to increase year over year. The higher the potency of the plant generally will lead to more efficient processing of the plant into CBD oil, which may translate to a higher plant value. A small increase in cost of production per plant of $2.62 in 2019 versus $2.42 in 2018, due to a larger labor base. The Aethics brand products have expanded into new States and locations with current and new retail partners which includes 248 new stores, which included 238 major airports across the U.S. Reorders are already coming in which presents strong sell through with the selected products. Increased product depth with new CBD performance drops, hydration drinks, and lotions. "In an increasingly crowded and confusing CBD market, brands matter, and CBD Global continues to be a trusted provider of high-quality CBD product," said Brad Wyatt, CEO of CBD Global Sciences. "Consumers are becoming more informed on choices of product in the CBD market space and are directing their purchases to the highest quality product and best value proposition." Read this and more news for CBDN at: https://www.financialnewsmedia.com/news-cbdn/
Other cannabis-related developments from around the markets include:
Green Thumb Industries Inc. (CSE:GTII)(OTCQX:GTBIF) announced that its executive team will participate in the following conferences in December 2019: Investor Intelligence Conference – Cowen Master Class, Las Vegas, December 10, 2019: Founder and Chief Executive Officer Ben Kovler will participate in a fireside chat with Cowen Managing Director and Senior Research Analyst Vivien Azer; MJBizCon, Las Vegas, December 12, 2019: Senior Vice President, Government and Regulatory Affairs Dina Rollman will participate in the "Expansion: Winning Licenses in Multiple States" panel discussion.
Charlotte's Web Holdings Inc. (OTCQX:CWBHF)(CSE:CWEB) announced that it has closed its previously announced underwritten public offering for aggregate gross proceeds to the Company of C$66,250,000. A total of 5,000,000 units of the Company, at a price of C$13.25 per Unit were sold pursuant to the Offering. The Offering was led by Canaccord Genuity Corp., together with a syndicate of underwriters including Cormark Securities Inc., Eight Capital, and PI Financial Corp. Each Unit was comprised of one common share of the Company and one half of one common share purchase warrant. Each Warrant will be exercisable to acquire one common share for a period of 2 years following the closing date of the Offering at an exercise price of C$16.50 per Warrant Share, subject to adjustment in certain events. Charlotte's Web has also granted the Underwriters an option (the "Over-Allotment Option") to purchase up to 750,000 additional Units of the Company on the same terms as the Offering, exercisable within 30 days of the closing of the Offering. Net proceeds from the Offering will be used primarily to fund the Company's business development and for general working capital purposes. The Units were offered in each of the provinces of Canada, other than Québec, pursuant to the Company's base shelf prospectus dated April 8, and were also offered by way of private placement in the United States to "qualified institutional buyers". The terms of the Offering are described in a prospectus supplement dated November 27, 2019.
Canopy Growth Corporation (TSX:WEED)(NYSE:CGC) announced that it has recently won awards in the areas of corporate culture and marketing excellence. Waterstone Human Capital, Canada's leading cultural talent management firm, awarded Canopy Growth in Canada's Most Admired Corporate Cultures for 2019, in the Industry Leaders: Cannabis category. At the Canadian Marketing Association Awards for Consumer Products, Social Causes and Cannabis Brand Marketing, Tweed, a Canopy Growth's flagship brand, took home three awards. "At Canopy we have always believed that our corporate culture is a competitive advantage that drives peak performance, and we are thrilled to be recognized nationally in this way," said Mark Zekulin, CEO. "We also couldn't be prouder of our Tweed team for our award-winning 'Hi' and MADD x Tweed X Uber campaigns, raising awareness and education around our category."
Aurora Cannabis Inc. (NYSE:ACB)(TSX:ACB) announced that one of the Company's oil products has now been approved for use under Ireland's new Medical Cannabis Access Programme (MCAP). Aurora's High CBD Oil Drops received approval from the Irish authorities and have now been added to a regulatory schedule by the Irish Minister of Health enabling importation, prescribing and supply under the scheme and is to date, one of only two products to gain such authorization. Dr. Shane Morris, Chief Product Officer at Aurora said, "Aurora is pleased to be able to assist patients who are seeking treatment with high quality EU-GMP (good manufacturing practice) certified pharmaceutical-grade medical cannabis in Ireland. We are very proud to be one of the first approved suppliers of medical cannabis under the MCAP. We want to acknowledge the efforts made by many people, especially the patients and doctors who have campaigned for access to these medicines. We look forward to more of Aurora's high-quality medicines being approved, so that more patients can benefit from the MCAP in Ireland. We will continue to work closely with all parties and state agencies to facilitate further availability."
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