Hexo Corp call volume above normal and directionally bullish » 13:2505/0405/04/21
Bullish option flow…
Bullish option flow detected in Hexo Corp with 10,312 calls trading, 2x expected, and implied vol increasing over 2 points to 74.78%. Jan-22 0.5 (nonstd HEXO1) calls and Jan-23 0.5 (nonstd HEXO1) calls are the most active options, with total volume in those strikes near 5,000 contracts. The Put/Call Ratio is 0.11. Earnings are expected on June 9th.
Alliance Global Partners to hold a virtual conference » 09:1405/0405/04/21
CRLBF, JUSHF, VFF, HEXO, NEPT, GTBIF, CCHWF, KSHB
AGP Spring Consumer…
AGP Spring Consumer Cannabis Virtual Conference 2021 to be held on May 4.
Green Thumb Industries to acquire Dharma Pharmaceuticals, terms not disclosed » 07:2205/0305/03/21
Green Thumb Industries…
Green Thumb Industries announced it has signed a definitive agreement to acquire 100% of Dharma Pharmaceuticals, expanding its cannabis distribution network into the Virginia cannabis market. Dharma was the first operator to provide medical products to Virginia's patients in 2020 and is strategically positioned to scale in the emerging adult-use market. Virginia became the first Southeastern state in the United States to legalize adult-use cannabis after the Virginia General Assembly approved legislation on April 7, 2021. This follows several post-election legalization initiatives at the state level, including New York in March and New Mexico in April, bringing the total to 17 states and 3 U.S. territories with legal and regulated cannabis programs for adult use, or over 40% of the U.S. population. While Virginia currently allows cannabis access only to qualified medical patients, adult-use sales are expected to commence in January 2024. With a population of nearly 8.5 million, Virginia is expected to generate over $1.5 billion in legal cannabis sales, create significant tax revenue for the Commonwealth and employ thousands of Virginians. Upon completion of the Acquisition, Green Thumb will have a presence in 13 markets: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Pennsylvania and Virginia. As one of only five licenses in the Virginia medical cannabis market, Dharma is licensed to grow, process and retail cannabis directly to consumers. The Acquisition includes an existing production facility and retail dispensary located in Abingdon, VA. Green Thumb will also maintain the opportunity to open up to five additional retail locations in the Commonwealth. Completion of the Acquisition is subject to customary regulatory approvals and is expected to close in the second half of 2021.
Fly Intel: Top five weekend stock stories » 20:0505/0205/02/21
VZ, APO, DELL, GOOG, GOOGL, AMZN, FB, AAPL, MSFT, CURLF, GTBIF, TCNNF, CRLBF, AIMC, PGR, SHW, BAC, IHG, CROX, X, STLD, NUE
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Verizon (VZ) is nearing an agreement to sell its media division to Apollo Global Management (APO), a move that would jettison once-dominant online brands like AOL and Yahoo!, Bloomberg's Scott Moritz and Liana Baker reported, citing people familiar with the matter. A deal for Verizon Media could be announced as soon as Monday, the people said, adding that Verizon will keep a stake in the business. 2. Francisco Partners and TPG Capital have entered into a definitive agreement with Dell Technologies (DELL) to acquire Boomi, a leading provider of cloud-based integration platform as a service. The cash transaction is valued at $4B and is expected to close by the end of 2021, subject to customary closing conditions. Terms of the agreement were not disclosed. 3. Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Facebook (FB) and Microsoft (MSFT) performed better over the past year than anyone dreamed and are still a buy, Eric Savitz wrote in this week's edition of Barron's. While they aren't the raging bargains of a year ago, there's a case to be made that there are no better stocks to play the most important shifts in tech, the author added. 4. Aniplex and Fumination's "Demon Slayer" won the North American box office this weekend with $6.4M from 1,925 theaters for a 10-day domestic total of $34.1M. A week ago, the Japanese anime opened to $21M, which was the biggest domestic debut of all time for a foreign-language movie. 5. Curaleaf (CURLF), Green Thumb Industries (GTBIF), Trulieve Cannabis (TCNNF), Cresco Labs (CRLBF), Altra Industrial Motion (AIMC), Progressive (PGR), Sherwin-Williams (SHW), Bank of America (BAC), Intercontinental (IHG), and Crocs (CROX) saw positive mentions in this week's edition of Barron's, while U.S. Steel (X), Steel Dynamics (STLD), Nucor (NUE) were mentioned cautiously.
Legalized marijuana will be big win for U.S. pot stocks, Barron's says » 10:1105/0105/01/21
CURLF, GTBIF, TCNNF, CRLBF, CGC, TLRY, APHA
American cannabis companies-such as Curaleaf (CURLF), Green Thumb Industries (GTBIF), Trulieve Cannabis (TCNNF), and Cresco Labs (CRLBF)-have licenses to operate in states that allow weed under their laws, but the industry has been bedeviled by marijuana's illegality under U.S. federal law, Max Cherney and Connor Smith write in this week's edition of Barron's. Many investors know only Canadian producers such as Canopy Growth (CGC), Tilray (TLRY), or Aphria (APHA), whose wholly legal Canadian activities let them list on the Nasdaq, the authors note. Now, events are breaking in favor of the American operators, with the House of Representatives passing a bill by a 3-to-1 margin that would allow the pot industry to use the federally regulated banking system, and New York, Virginia, and New Mexico recently joining the 13 states that have allowed recreational sales to adults. Over time, recreational sales will probably come to the 20 states that now allow sale by prescription, the publication adds, pointing out that could spur the remaining state holdouts to fall in line, if federal legalization doesn't happen first. Reference Link
Hexo Corp call volume above normal and directionally bullish » 12:0504/3004/30/21
Bullish option flow…
Bullish option flow detected in Hexo Corp with 3,419 calls trading, 1.0x expected, and implied vol increasing almost 2 points to 76.05%. Jan-23 7 calls and May-21 7 calls are the most active options, with total volume in those strikes near 1,900 contracts. The Put/Call Ratio is 0.04. Earnings are expected on June 9th.
Largest borrow rate increases among liquid names » 08:4504/3004/30/21
HEXO, HUGE, NKLA, MOGO, OGI, WPRT, PSXP, SVRA, SOS, TAN
Latest data shows the…
Latest data shows the largest indicative borrow rate increases among liquid option names include: Hexo Corp (HEXO) 302.11% +4.11, FDS Pharma (HUGE) 19.75% +0.65, Nikola (NKLA) 20.78% +0.63, Mogo (MOGO) 20.57% +0.37, Organigram Holdings (OGI) 3.06% +0.37, Westport (WPRT) 5.05% +0.36, Phillips 66 Partners (PSXP) 1.46% +0.33, Savara (SVRA) 0.99% +0.29, SOS Limited (SOS) 16.88% +0.27, and Guggenheim Global Solar Index (TAN) 8.77% +0.26.
Green Thumb Industries announces $217M senior debt financing » 07:2104/3004/30/21
Green Thumb Industries…
Green Thumb Industries announced the Company has closed on a $217 million senior non-brokered private placement financing through the issuance of senior secured notes. The Company intends to use the proceeds to retire the Company's existing $105 million senior secured debt due May 2023 and for general working capital purposes as well as various growth initiatives. The Notes have a maturity date of April 30, 2024 and will bear interest from the date of issue at 7% per annum, payable quarterly, with an option, at the discretion of the Company, to extend an additional 12 months. The financing permits the Company to borrow an additional $33 million over the next twelve months. The purchasers of the Notes also received an aggregate of 1,459,043 warrants. Each Warrant is exercisable to purchase one subordinate voting share of GTI at an exercise price of $32.68 per share, for a period of 60 months from the date of issue. Certain insiders participated in the financing, purchasing an aggregate of approximately $3 million of Notes. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, such insider participation is a "related party transaction." The Company is exempt from certain requirements of MI 61-101 in connection with the insider participation in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the aggregate value of the insider participation does not exceed 25% of the market capitalization of the Company. Further details will be included in the Company's material change report to be filed within the prescribed time. Such material change report was not filed more than 21 days prior to closing of the financing due to the timing of the announcement and closing occurring in less than 21 days.
Greenlane, KushCo announce future leadership team for proposed combined company » 07:1104/3004/30/21
Greenlane Holdings (GNLN)…
Greenlane Holdings (GNLN) and KushCo Holdings (KSHB) announced the enterprise leadership team that will helm the proposed combined Greenlane and KushCo businesses following the consummation of the proposed merger. As previously announced, Nick Kovacevich will lead the combined company as CEO. Greenlane's Bill Mote will serve as CFO, with Greenlane Co-founder Aaron LoCascio serving as President and Greenlane Co-founder Adam Schoenfeld serving as Chief Strategy Officer. Additionally, the following executives will join the combined company's enterprise leadership team, reporting to Nick Kovacevich: William Bine, Chief Operating Officer; Rhiana Barr, Chief People Officer; Douglas Fischer, General Counsel; Richard Finlow, Managing Director, Europe; Michael Cellucci, President CPG Sales; and Andrew Goodman, SVP Packaging. The companies anticipate that the Transaction will close by late second quarter or early third quarter 2021, subject to the satisfaction or waiver of all closing conditions, including the receipt of all necessary regulatory and stockholder approvals.
Largest borrow rate increases among liquid names » 08:4504/2904/29/21
BLNK, CCIV, THBR, NEPT, ACB, EQX, CS, TAN, PATH, IDEX
Latest data shows the…
Latest data shows the largest indicative borrow rate increases among liquid option names include: Blink Charging (BLNK) 60.37% +3.55, Churchill Capital Corp IV (CCIV) 29.96% +0.72, Thunder Bridge Acquisition II (THBR) 1.12% +0.67, Neptune Technologies (NEPT) 27.68% +0.60, Aurora Cannabis (ACB) 61.22% +0.55, Equinox Gold (EQX) 1.05% +0.43, Credit Suisse (CS) 2.54% +0.34, Guggenheim Global Solar Index (TAN) 8.81% +0.25, UiPath (PATH) 3.40% +0.24, and Ideanomics (IDEX) 15.88% +0.21.