The Daily Hit is a recap of the top cannabis business stories for July 19, 2022.
ON THE SITE
Will Cannabis Be Recession Proof?
No one can predict a recession, but it seems likely that some sort of stress is expected on the economy. On a positive note, the big banks have all seemed to dial down the heat on recession fears. During the latest round of earnings here’s what some of them said. Read more here.
High Tide Finds Funds In Bought Deal
High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) has entered into an agreement with a syndicate of underwriters led by Echelon Wealth Partners Inc. have agreed to purchase 4,310,400 units at a price of C$2.32 per Unit for total gross proceeds of approximately C$10 million. Despite raising the money in the bought deal, the company cautioned in its remarks that the overall cannabis landscape was becoming more challenging. Read more here.
CBD’s Future Totally Dependent On FDA
Cannabis research firm Brightfield Group released its CBD: FDA Impact and the Path Forward/ 2022 Mid-Year US CBD Report, which found that growth in the CBD industry is “heavily dependent” on Food and Drug Administration (FDA) regulation, though there has been little progress on federal regulation for cannabidiol (CBD) since provisions removing hemp and hemp derivatives from prohibition were passed in the Farm Act of 2018. Read more here.
Psychedelic Decriminalization Picks Up Steam
It seems like every other week or so, another city or state is working on the decriminalization of psychedelics. In fact, the whole country is virtually awash in legislative action related to reforms about psychedelics. It’s been an active three years, with no slowdown in sight for 2022. Read more here.
IN OTHER NEWS
Canopy Growth Corporation
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced yesterdaay that it has closed its previously announced exchange transaction of certain 4.25% unsecured notes due 2023 in order to reduce its debt obligations by approximately $263 million. Constellation Brands, Inc., through its wholly owned subsidiary Greenstar Canada Investment Limited Partnership, participated in the transaction. Read more here.
Tilray Brands, Inc.
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), a global cannabis-lifestyle and consumer packaged goods company, today announced that its medical cannabis division, Tilray Medical, launched a new cannabis education platform, WeCare-MedicalCannabis, dedicated to providing resources and educating healthcare practitioners and patients about medical cannabis. Read more here.
Juva Life Inc.
Juva Life Inc. (CSE: JUVA) (OTCQB: JUVAF) (FRANKFURT: 4VV), a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution, today announced its financial and operating results for Q1 of 2022. $1.16 million of revenue was generated in Q1 2022, almost double the $.58 million of revenue in the same period for the prior year. Read more here.
Kaya Group (OTC: NUGL), the first medicinal Ganja herb house in the Caribbean and holistic, wellness-focused ecosystem, has now received its first orders for its Jamaican roots herbs brand in the fast-growing California and U.S. market. California has sold $13.5 billion of adult-use cannabis since launching sales in 2018. Read more here.
springbig (NASDAQ: SBIG, SBIGW), a provider of SaaS-based marketing solutions, consumer mobile app experiences and omni-channel loyalty programs to the cannabis industry, today highlighted data recorded during the weekends of July 4 and July 10. On Independence Day, the company recorded an 18% increase in texts sent and a 22% increase in total campaigns distributed. Additional data obtained by springbig also highlighted an increase in overall sales, reward redemptions and visits. Read more here.
Purissima, a biotechnology health and wellness company, announced today an exclusive, multi-year processing and distribution partnership with Open Book Extracts, a total solution provider for high quality cannabinoid ingredients, concept-to-market formulation services, and finished goods manufacturing for the industry’s leading brands. This collaboration also marks Purissima as the first company to achieve commercial scale production of minor cannabinoids using Purissima’s proprietary algae-based fermentation platform. Kicking off production in July 2022, the compounds are proposed to be available to manufacturers and sold to consumer brands before fall 2022. Read more here.
IM Cannabis Corp.
IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC), a medical and adult-use recreational cannabis company with operations in Israel, Canada, and Germany, today announced that the company received written notification from The Nasdaq Stock Market LLC on July 13, 2022, that the company is not in compliance with the minimum bid price requirement set forth in Nasdaq Rules for continued listing on Nasdaq. Read more here.
ZYUS Life Sciences Inc.
ZYUS Life Sciences Inc., a Canadian life sciences company leading scientific research and development in phyto-therapeutics, has completed its first international shipment of ZYUS’ first-generation cannabinoid oil formulations to the Australian medical cannabis market in preparation for the sales and distribution under Australia’s Therapeutic Goods Act special access and authorized prescriber scheme. Read more here.