Despite not officially deciding the presidential election, american’s made it clear they wanted legal cannabis as five states passed some form of legalization. Arizona, Montana, New Jersey, and South Dakota have all legalized marijuana for adults 21 and older, as voters in each state approved their respective ballot initiatives at the ballot box. New jersey was closely watched as many see this decision as tipping the big market of New York to legalize adult use cannabis.
Psychedelic legislation was also a big winner this week. In Washington D.C., the decriminalization law Initiative 81 secured enough votes from residents to pass. The plants and fungi covered by Initiative 81 include psilocybin mushrooms, ayahuasca, iboga, and mescaline-containing cacti, which can help those suffering from depression, anxiety, and addiction.Oregon became the first state in the country to legalize psilocybin as voters in the state passed Measure 109. The measure will allow regulated use of psychedelic mushrooms in a therapeutic setting. The product will have to be stored and administered at licensed facilities.
We’re just starting to kick off earnings season.
GW Pharmaceuticals plc reported total revenue of $137.1 million for the quarter ending September 30, 2020, a big jump over the $91.0 million for the same time period in 2019. This beat the Yahoo Finance average analyst estimates of $127 million for revenue.
The market was cheered by the drop in net losses to $12.2 million versus last year’s net loss of $13.8 million for the 2019 third quarter.
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced preliminary financial results for its third-quarter ending September 30, 2020, with net sales of $51.0 million, representing 8% sequential and 90% year over year growth. All amounts are in Canadian dollars. TerrAscend did not say whether there were any net profits or losses.
Innovative Industrial Properties, Inc. (IIP)(NYSE: IIPR) reported total revenues of approximately $34.3 million for the third quarter ending September 30, 2020. This was a 197% increase from the prior year’s third quarter.
Acquisitions continued to happen this week.
Aphria Inc. (TSX: APHA) (Nasdaq: APHA) entered into an agreement of merger and acquisition to acquire SW Brewing Company, which is one of the largest independent craft brewers in the United States based on volume in a deal valued at $300 million.
Ayr Strategies (OTCQX: AYRSF) announced it is buying a vertically integrated operation in Arizona, including cultivation and processing facilities and three licensed dispensaries in a deal valued at $81 million.
GrowGeneration Corp. (NASDAQ: GRWG) continues to add to its stable of hydroponic stores with the latest acquisition being The GrowBiz. GrowGen did not disclose how much it paid for the chain, which is the country’s third-largest, but did note that it is expected to deliver $50 million in annual revenues. The deal is expected to close before fiscal year-end 2020.
Canopy Growth (CGC) has announced that it will be transferring its U.S. stock exchange listing from NYSE to Nasdaq on November 13, 2020 after market close.