In this week's "Rising High," The Fly's recurring series focused on cannabis stock news, we look back over California medicinal use guidelines, cannabis firms’ earnings reports and a distribution partnership for vaporizers.
CALIFORNIA DOJ ISSUES MEDICINAL GUIDELINES: The California Department of Justice released on Tuesday the "Guidelines for the Security and Non-Diversion of Cannabis Grown for Medicinal Use" to clarify the state's laws governing medicinal cannabis. The Guidelines come after "significant changes in state law on recreational cannabis use." The DOJ said, “Pursuant to the legislation, the Office of the Attorney General is required to adopt “guidelines to ensure the security and non-diversion of cannabis grown for medical use.” To fulfill this mandate, the Office of the Attorney General said it was re-issuing and updating these guidelines to ensure that cannabis grown for medicinal purposes remains secure and does not find its way to non-patients or illicit markets; help law enforcement agencies perform their duties effectively and in accordance with California law; and help patients and primary caregivers understand how they may cultivate, transport, deliver, possess, and use medicinal cannabis under California law."
CRONOS GROUP, IIP, ZYNERBA REPORT EARNINGS: Cronos Group (CRON) reported second quarter earnings on Thursday, with net revenue of C$10.2M representing a 202% increase from $3.4M in 2Q18. The company also reported Q2 EPS of C22c which compared to C0c last year. "During the second quarter, Cronos Group expanded its R&D capabilities, innovation expertise and global infrastructure network in what has been a year of tremendous growth," said CEO Mike Gorenstein. "As we look ahead, we will continue to capitalize on this momentum by building on our partnerships with Altria and Gingko Bioworks and leveraging our collective resources and expertise to realize the significant potential in the growing cannabis industry."
Innovative Industrial Properties (IIPR) reported second quarter earnings on Wednesday, generating rental revenues of $8.3M representing a 155% increase from the prior year’s second quarter. The company also reported FFO of 48c which compared to 26c last year and AFFO of 59c which compared to 31c last year.
Zynerba Pharmaceuticals (ZYNE) reported Q2 results on Tuesday with an EPS of (50c) which compared to analyst estimates of (50c). “The past few months have been very productive for our team,” said CEO Armando Anido. “We initiated new studies in autism spectrum disorder and 22q11.2 deletion syndrome, obtained Fast Track Designation for Zygel in FXS...We also extended our cash runway into the second half of 2021 through the addition of $27M in cash from our ATM in the second quarter and a positive decision from the Australian government.”
CV Sciences (CVSI) also reported Q2 earnings on Tuesday with revenue of $16.9M, an increase of 36% over the same quarter in 2018.The company reported adjusted EPS of 3c per share which compare with 3c per share for the same period in 2018. The company’s retail store count increased to 4,591 stores nationwide at June 30, 2019, up from 3,308 stores as of March 31, 2019.
Additionally, GrowGeneration (GRWG) reported Q2 results on Thursday with revenue of $19.5M up $12.3M, or 172%, over 2Q18 revenues of $7.1M. The company also reported EPS of 6c per share, which compares to (1c) per share for the same period in 2018, and same store sales up 23%.
AURORA CANNABIS PROVIDES Q4 UPDATE: Aurora Cannabis (ACB) announced on Tuesday that it expects Q4 revenue between $100M and $107M, which compares to $19.1M for the same period last year. The company sees Q4 net cannabis revenue between $90M and $95M, with growth anticipated across all key business segments and consumer markets. Aurora also expects to report that production available for sale for Q4 will be at the upper end of 25,000 kg ro 30,000 kg, ahead of previous guidance of 25,000 kgs. "Our Q4 2019 guidance highlights Aurora's continued leadership," said CEO Terry Booth.
CANOPY GROWTH, GREENLANE FORM DISTRIBUTION PARTNERSHIP: Canopy Growth (CGC) announced Thursday that it has partnered Greenlane Holdings (GNLN) giving Greenlane exclusive distribution rights of Storz & Bickel vaporizers throughout the United States. Greenlane has been Storz & Bickel's exclusive U.S. distribution partner since January 2018 and the new agreement signed with Canopy Growth will allow for growth in the American market along with continued distribution to the Canadian market. Greenlane has a distribution network in North America that includes over 11,000 retail locations spanning smoke and vape shops and licensed cannabis dispensaries. Through their distribution channels, Greenlane will bring Storz & Bickel's newest desktop vaporizer technology-the Volcano Hybrid-to market.
KUSHCO LAUNCHES RETAIL SERVICES DIVISION: KushCo Holdings (KSHB) announced Tuesday the creation of their new Retail Services division. The company said, "The new business unit will focus on providing comprehensive retail solutions, through strategic partnerships with best-in-class sales agencies, to leading CBD brands." KushCo's retail services division will focus on industry education and compliance, as well as building distribution networks of CBD brands across conventional retail channels.
OTHER CANNABIS STOCKS: Publicly-traded companies in the space include Aphria (APHA), Harvest Health & Recreation (HRVSF), Elixinol (ELLXF), CannTrust (CTST), Canopy Rivers (CNPOF), Tilray (TLRY), Origin House (ORHOF), MediPharm Labs (MLCPF), General Cannabis (CANN), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), Indiva (NDVAF), OrganiGram (OGRMF), Planet 13 Holdings (PLNHF), Wayland Group (MRRCF), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), Sunniva (SNNVF), DionyMed Brands (HMDEF), Sproutly (SRUTF), Trulieve (TCNNF), Delta 9 (VRNDF), Curaleaf Holdings (CURLF), Aurora Cannabis (ACB) and MedMen (MMNFF).
Cronos Group
-0.48 (-3.32%)
Innovative Industrial Properties
+0.475 (+0.45%)
ZYNE
+
CV Sciences
+ (+0.00%)
GrowGeneration
+ (+0.00%)
Canopy Growth
+0.44 (+1.37%)
Greenlane
+0.37 (+4.63%)
Aurora Cannabis
+0.01 (+0.15%)
KushCo Holdings
+ (+0.00%)
APHA
+
Tilray
+0.37 (+0.88%)
CannTrust
-0.005 (-0.23%)
Trees Corporation
+ (+0.00%)
IGC Pharma
-0.04 (-3.20%)
Trulieve Cannabis
+ (+0.00%)