The mighty seem to have fallen this week in the cannabis industry so let’s get the bad news out of the way first. Canopy Growth made major organizational changes this week including its decision to end its New York hemp farming and just use its stockpile of CBD. It is stopping its growing in South Africa, Columbia and is closing another indoor facility in Saskatchewan.
Aurora Cannabis’ stock fell so low that the company was forced to do a reverse split to jump start the price to move over a dollar so it would be delisted by the NYSE. This was right after it issued shares.
Organigram reported that its second-quarter net revenues fell to $23 million from last year’s $26 million. The company also said it was not in compliance with its debt covenants.
CannTrust gots its cease trade order from the Ontario Securities Commission. The company decided to throw in the towel and quit fighting to get its licenses back. The lawsuits and expenses to ramp back up would have easily eaten up the war chest of $145 million.
It wasn’t all bad.
Aphria delivered a solid quarter with net cannabis revenue of $55.6 million in the third quarter, an increase of 65% from the prior quarter. The total net revenue was $144.4 million and the company beat analyst expectations. But they still pulled previous guidance due to the pandemic.
Despite tight capital conditions some companies managed to raise some money. Software company Greenbits snagged $23 million from Tiger Global and Casa Verde.
Licensed producer Clever Leaves raised $14 million in a Series E round.
In psychedelic news Biotech holding company Orthogonal Thinker, Inc. said that it has completed filing a provisional application for the Company’s flagship natural product, Psilly. This is the first step before filing for a patent.
That’s it for this week, stay safe out there.