The Daily Hit: December 9, 2020

It’s time for your Daily Hit of cannabis financial news for December 9, 2020.

On The Site

Canopy Growth

Employees of Canopy Growth (TSX: WEED) (NASDAQ: CGC) got a call from the Grinch today as 200 employees learned they would no longer have a job. Canopy Growth said it would cease operations at the following sites: St. John’s, Newfoundland and Labrador; Fredericton, New Brunswick; Edmonton, Alberta; Bowmanville, Ontario; as well as its outdoor cannabis grow operations in Saskatchewan. The company noted that approximately 220 employees have been impacted as a result of these closures. The stock price fell over 5% on the news and closed at $27.20.

The company said the decisions are the partial outcome of an ongoing end-to-end review designed to improve its margins. The end-to-end review was announced during the company’s second-quarter earnings call and looks at people, process, technology, and infrastructure. The company also said it expects to record estimated total pre-tax charges of approximately $350 -400MM in the third and fourth quarters of Fiscal 2021. The production sites impacted represent approximately 17% of the Company’s enclosed Canadian footprint and 100% of its Canadian outdoor production footprint.


GrowGeneration Corp. (NASDAQ: GRWG) increased its offering from the recently announced $125 million to $150 million and priced 5,000,000 shares of its common stock at $30.00 per share. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock offered in the public market. The company said it expects to close the Offering on or about December 11, 2020.

GrowGen shares fell on the news of the offering on Tuesday and were selling off again in early trading as investors are concerned about dilution. Shares were lately selling near $32, off of the company’s 52-week high of $37.

Mydecine Innovations

Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF) announced that it has completed its first commercial harvest of 20 kilograms of psilocybin mushrooms at its research and cultivation facility in Jamaica. The company said it is now preparing to export the harvest to its Canadian cGMP Facility which has a Health Canada schedule 1 Dealer’s License attached to it, allowing for legal import.


Mind Medicine Inc. (NEO: MMED) (OTCQB: MMEDF) has filed a final short form prospectus with the securities commissions or similar authorities in each province of Canada, other than Québec with regards to a previously announced bought deal. The company’s underwriters have agreed to purchase 15,800,000 units of MindMed, on a “bought deal” basis, at a price per Unit of $1.90 for gross proceeds of $30,020,000.

2020 Cannabis Winners

Looking back at 2020, the Brightfield Group determined the cannabis product shelf space winners. A review of the first three quarters provided a snapshot of which products cannabis consumers wanted most. This type of information is invaluable to producers and dispensary owners alike. The producers can make sure that they have these products in their portfolio and dispensaries can make sure they stock their shelves with the items that customers want.

Increased 2020 Shelf Space:

  • Candy
  • Cartridges/Pods
  • Resin/Rosin
  • Disposable Pens
  • Baked Goods

In Other News

cbdMD, Inc. (NYSE: YCBD) today announced the pricing of its underwritten public offering of 2,000,000 shares of its 8.0% Series A Cumulative Convertible Preferred Stock at a price to the public of $7.50 per share. cbdMD expects to receive gross proceeds of $15,000,000 from the offering. The closing of the offering is expected to occur on or about December 11, 2020, subject to the satisfaction of customary closing conditions. The shares will be convertible into shares of cbdMD’s common stock at the holder’s option at a conversion price of $6.00 per share, or by cbdMD at a conversion price of $6.00 per share if the trading price of its common stock equals or exceeds $8.25 per share for at least 20 trading days in any 30 consecutive trading day period ending five days prior to the date of notice of conversion. cbdMD intends to use the net proceeds from the offering for working capital and other general corporate purposes.

Charlotte’s Web Holdings, Inc., the market leader in hemp CBD extract products , announced that its wholly-owned subsidiary Charlotte’s Web, Inc. has signed an exclusive distribution agreement in Israel with Israel -based InterCure Ltd. (TASE: INCR), which owns one of Israel’s largest and most established medical cannabis producers, Canndoc Ltd. The sale of CBD is reportedly on the verge of being legalized in Israel. The two companies have agreed to cooperate in order to supply the Israeli market, once that occurs, with the highest quality and most trusted CBD wellness products in the world.

High Tide Inc. (OTCQB: HITIF) announced that it has submitted an initial application to list on The Nasdaq Stock Market. “We are very excited about the prospect of listing on Nasdaq. With our recent acquisition of Meta Growth, we are now the largest Canadian retailer as measured by revenue. Listing on Nasdaq would allow the Company to expand its shareholder base, enhance shareholder value and accelerate the Company’s M&A initiatives in pursuing strategic opportunities in the US.” said Raj Grover, President and Chief Executive Officer.

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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