May the fourth be with you!
The DEA won the case regarding Cannabidiol or CBD from the Hemp Industries Association. The Ninth Circuit appeals court ruled in favor of the DEA that wants to classify CBD as a schedule 1 controlled substance. The DEA has long believed that CBD is a marijuana extract and since marijuana is schedule 1 then so is CBD. The agency made a rule change in 2016 that worried CBD makers at the time, which the DEA talked down. Now it looks as if the DEA is setting itself up to go after CBD makers.
The Green Organic Dutchman went public this week as its shares began trading on the Toronto Exchange using the ticker TGOD. The company’s shares which were priced at $3.65 jumped almost 10% in the first three hours of trading as the company raised $115 million. The stock was lately trading at $4.06.
Earnings continue to roll out this week.
Cronos Group (CRON) reported fourth-quarter sales of $1.6 million and annual sales of $4.1 million. The company also delivered a gross profit for 2017 of $7.2 million versus last year’s gross profit of $1.9 million. The Nasdaq listed company has really turned a corner with net profits for 2017 of $2.4 million over last year’s loss of $1.1 million.
Namaste Technologies (NXTTF) reported sales for the fourth quarter were $5.6 million and gross profits of $1.9 million. The company also announced this week that it was acquiring Findify, an A.I. powered e-commerce platform. The idea is that the product will help Namaste recommend the right products for its clients.
Sunniva (SNNVF) reported $16.1 million in annual revenue for 2017, but still delivered a net loss of $18.5 million. The losses stemmed from C$14.3 million in selling, general and administrative expenses and then the company also incurred costs of goods sold of C$9.4 million due to the contract physician compensation in NHS and product manufacturing costs in FSD.