This is your Daily Hit of cannabis financial news for January 19, 2022.
On The Site
The year 2021 has not been kind to the psychedelics industry. The stock performances of the 60 publicly traded psychedelics companies on the Psychedelic Stock Index have been trending steadily downward since February 22, 2021, to their lowest point since the index began on June 1, 2020. The pandemic has definitely affected psychedelic business development. Nevertheless, a few companies are getting closer to offering products and expanding therapy services. So a looming perfect storm of more psychedelic companies laying the groundwork for further development may encourage a business rebound in 2022. Here are our picks for the five psychedelic companies to watch in 2022
Only eighteen of the forty-seven states, four U.S. territories, and the District of Columbia that have legalized some form of marijuana have passed legislation to allow for recreational cannabis use, but that number is poised to grow in 2022. Lawmakers in Delaware, Maryland, Ohio, Pennsylvania, and South Dakota are already making moves to get recreational cannabis legislation passed in their respective states.
The Canadian Center For Policy Alternatives recently released a report titled “Another Year In Paradise – CEO Pay in 2020. The report lists a couple of cannabis company CEOs with what it determined to be outsized compensation packages. The report stated, “Canada’s 100 highest-paid CEOs got paid an average of $10.9 million in 2020, which is higher than their pay in 2019. As a result, those 100 CEOs now make, on average, 191 times more than the average worker wage in Canada.” The report also stated that variable compensation, which can be bonuses, company stock, or options rose from roughly 70% a decade ago to over 80% in the past two years. Now it seems salaries have become a less important part of CEOs’ total compensation.
Leading the list on the report was David Klein, CEO of Canopy Growth Corp (NASDAQ: CGC) who is listed as having a salary of C$281,715 share-based awards of C$10,075,349, option-based awards of C$33,267,017, non-equity incentive compensation of C$408,739, other compensation listed as 1,273,265 for a grand total of C$45,306,085.
In Other News
Cresco Labs (CSE:CL) (OTCQX:CRLBF) announced the termination of the previously announced definitive agreement to acquire 100% of the outstanding equity interest in Blair Wellness, LLC, a Baltimore Maryland medical cannabis dispensary. “We have terminated the purchase agreement with Blair Wellness due to the failure of certain closing conditions to be met prior to our specified termination date,” said Charlie Bachtell, Cresco Labs’ CEO & Co-founder. “We will continue to look for other avenues to expand our footprint in Maryland, and execute our strategy of going deep in meaningful, material states.”
Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF) announced the completion of its previously announced acquisition of Bloom Dispensaries, a vertically integrated, single state cannabis operator in Arizona. With the close of the Transaction, Curaleaf’s retail footprint has reached 13 dispensaries in Arizona and 121 nationwide.
Fire & Flower
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF)announced the filing of its Form 40-F Registration Statement with the United States Securities and Exchange Commission, in preparation for the Company to list its shares on The Nasdaq Stock Market LLC.