These are the top financial stock stories in the cannabis industry this week.
Canopy Growth and the Province of Newfoundland and announced on Friday that they have entered into a supply and production agreement. Canopy Growth will supply 8,000 kg of cannabis per year making it one of the largest deals to date. Canopy Growth will also build a new production facility the province capable of producing 12,000 kg per year, bringing 145 jobs to the region.
Canaccord Genuity has been busy. The company n lead underwriter on two deals this week. First up, DOJA Cannabis Company (CSE:DOJA) announced a C$15 million private placement of convertible debentures. Then Delta 9 Cannabis announced that it was also doing a deal with led by Canaccord Genuity for C$20 million. Both are expected to close December 28, 2017.
Aurora Cannabis Inc. (ACBFF) announced it has completed its deal to acquire Larssen Ltd and H2 Biopharma. The Larssen deal is on track to record C$6 million in fiscal 2018 and will be immediately accretive for Aurora.
H2 Biopharma is a late stage medical marijuana applicant that is based in Quebec. The company is close to completing a 48,000 square foot cannabis grow facility called the Lachute facility and is expected to produce approximately 4,500 kilograms of high-quality cannabis per year.
GW Pharmaceuticals also had a busy week. London-based biotech company GW Pharmaceuticals (GWPH) reported its fourth quarter and fiscal year-end results with revenues dipping and losses rising as the company gets closer to launching its Epidiolex drug in the U.S. GW Pharmaceuticals delivered revenue of $11 million or 8.2 million in sterling pounds for the year ending September 30. This was lower than last year’s $13.9 million or 10.3 million in pounds. The stock fell almost 6% in trading after the company said it would sell $225 million of American Depositary Shares (ADSs) on the NASDAQ exchange in an offering.
Zynerba Pharmaceuticals Inc. (ZYNE) stock tumbled 10% on Wednesday following a roller coaster ride on the share price after the company reported new clinical data. Zynerba announced that its data from the Phase 2 trial of its STAR 1 drug for epilepsy resulted in a meaningful reduction in seizures. Canaccord Genuity raised its price target on Zynerba to $18.00 from its previous target price of $15