The Secure and Fair Enforcement (SAFE) Banking Act made headlines again this week as it was the focus of a Senate committee hearing on marijuana banking challenges.
Typically any progress on this game-changing legislation for US cannabis businesses is welcomed by investors, sending cannabis stocks higher, but this week it appeared to have the opposite effect.
By Friday afternoon, the Advisorshares Pure US Cannabis ETF had fallen 16.2% from where it opened on Monday, while the Advisorshares Pure Cannabis ETF was down by 10.4% over the course of the week.
Also weighing on weed stocks this week was a mixed bag of earnings from multi-state operators such as Trulieve, TerrAscend and Jushi.
Catch up on the highlights from the cannabis sector this week here:
Analysts at Stifel GMP said they retain their positive outlook on cannabis producer TerrAscend after it reported first quarter results mostly in-line with expectations.
For the first quarter, TerrAscend posted revenue of $69.4 million, up from $48.6 million in the same quarter in 2022, and a net loss from continuing operations of $19.2 million, compared to $13.8 million in the year-ago quarter.
Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF). reported a 12.9% surge in total revenue for the first quarter ended ended March 31, 2023,
The vertically integrated cannabis company said its gross profit margin during the quarter was 42.9% of revenue, compared to 30.9% in the first quarter of 2022 and 28.6% in the final quarter of 2022.
Marijuana banking challenges came under the spotlight during a Senate Committee on Banking, Housing, and Urban Affairs hearing on Thursday.
The hearing, Examining Cannabis Banking Challenges of Small Business and Workers, focused largely on the Secure and Fair Enforcement (SAFE) Banking Act, a bill refiled last month that would remove penalties for financial institutions providing services to legitimate cannabis businesses.
Analysts at Stifel GMP have repeated their ‘Buy’ rating for Trulieve Cannabis with a lowered price target after the multi-state operator posted mixed first quarter results.
For the quarter ended March 31, 2023, Trulieve posted revenue of $289 million, down from $318 million in the year-ago quarter, and a net loss of $64 million, up from a loss of $32 million in 1Q 2022.
COMPASS Pathways, a mental health care company focused on advancing its COMP360 psilocybin therapy for treatment-resistant depression (TRD), posted an earnings beat for the first quarter which sent its shares higher.
For the quarter ended in March, the company reported a loss of $24.2 million or a loss per share of $0.57, compared to a loss of $21.2 million or a loss per share of $0.50 in the comparable quarter in 2022. Analysts had forecast a loss per share of $0.68.
1606 Corp said it has ordered the production of $150,000 in new inventory for its Brio Nutrition line of CBD products to meet demand from its distributor.
Owned by 1606, Brio Nutrition is a health and wellness CBD brand which recently entered into a distribution agreement with Cool Blue Distribution.
Delta 9 Cannabis Inc (TSX:DN) said it has won a purchase order for 12 of its modular Grow Pods for a British Columbia-based cultivation facility.
The order was placed by cannabis grower 1356089 BC Ltd, which is developing a state-of-the-art 4,800-square foot micro cultivation facility in Merit, BC, where the 12 turnkey Grow Pods will be housed.
Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) said it has appointed finance executive Lee Fraser as a board member and the new chair of the company’s audit committee.
Fraser, who has been hired to fill the vacancy created by the passing of Mike Harman, will also serve on the corporate governance and nominating committee and compensation committee of the board.
Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) will soon have a slice of the multi-million dollar global functional mushroom market with the launch of a new non-psychedelic product range by its US subsidiary Sierra Sage Herbs LLC (SSH).
The Lucenex functional mushroom products will give the company access to a market valued at US$26.7 million in 2021 and which is expected to grow at a compound annual growth rate (CAGR) of 10.8% between 2022 and 2030.
1606 Corp announced that it has completed a distribution deal with Nasdaq-listed SurgePays, Inc, in which SurgePays has agreed to distribute 1606 Corp’s Hemp smokable products to its thousands of registered retail store customers.
The acquisition-based CBD company said SurgePays has already taken possession of 1,000 six-pack displays and is currently distributing them to registered retail store customers, along with 1606’s CBD Singlz brand.
Delta 9 Cannabis Inc (TSX:DN) has provided guidance for the first quarter to March 31, 2023, forecasting revenues of between $16.8 million and $17.0 million compared with $12.5 million for the same period last year.
The company will release its first-quarter results on May 15, 2023, after the stock market closes. This will be followed by a conference call on May 16, at 10:00 am EST.
Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has received the green light from the Supreme Court of Western Australia to acquire 100% of Health House International Ltd. The acquisition gives Creso an international pharmaceutical distributor, specialising in (but not limited to) the distribution of medicinal cannabis products in Australia and other international markets.
The Scheme of Arrangement was approved on May 4, 2023 and is now legally effective.
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