This week’s cannabis stock news: 7 companies making headlines
Neptune Wellness Solutions officially exits the cannabis business
Welcome to our weekly series, Schaeffer Cannabis Stock News Updatewhere we recap what’s been happening in the world of marijuana stocks this week, and see how the cannabis industry will continue to grow in 2022.
Here is a brief overview of the main cannabis stock new this week:
Start the week in style, Village Farms International, Inc. (NASDAQ: VFF) was named by Corporate Knights to its Future 50 list: Canada’s fastest growing sustainable businesses. VFF has the highest annual increase in own revenue among more than 6,000 companies considered for the list. According to Village Farms, “We firmly believe that what is good for the earth is good for our company, good for our employees and good for our stakeholders.” Village Farms shares are currently trading down 55% year-to-date.
High Tide Inc. (NASDAQ: HITI) opened its 126th recreational cannabis store in Canada on Monday with its Canna Cabana brand in Saskatoon, Saskatchewan. High Tide’s stock price has fallen nearly 70% in the past year.
In a report delivered to investors on Wednesday, Canopy Growth (NASDAQ:CGC) was downgraded by BMO Capital Markets hedge analysts from a “market performance” rating to an “underperform” rating. Canopy Growth shares are down nearly 85% year over year.
The Scotts Miracle-Gro Company (NYSE: SMG) issued a reduced outlook for the remainder of fiscal 2022 on Wednesday. Earnings are now expected to be between $4.50 and $5.00 per share and consumer sales are expected to fall 4 to 6%. Looking specifically at the hydroponics business, Hawthorne, SMG expects a 40-45% year-over-year decline in fiscal 2022. According to SMG, “Clearly, we are focused on implementing aggressive plans to improve cash flow, reduce debt and bring leverage back to our target levels as quickly as possible.” Scotts Miracle-Gro stock fell more than 11% pre-market on the news and SMG is currently trading down nearly 45% year-to-date.
Neptune Wellness Solutions Inc. (NASDAQ:NEPT) officially leaving the cannabis business according to Wednesday’s press release. NEPT has launched a new strategic plan focused on consumer packaged goods (CPG), with plans to divest the company’s cannabis business by selling the Mood Ring and PanHash brands and laying off 50% of employees. According to Neptune Wellness Solutions, “This is the latest step in our transition to a pure-play, goal-driven consumer packaged goods company. This strategic divestiture significantly simplifies our overall structure, allowing us to focus on areas of the business that we believe we are best positioned for profitability and growth.” Neptune Wellness stock price has fallen more than 90% in the past year.
Cantourage GmbH and Clever Leaves Holdings Inc. (NASDAQ: CLVR) announced on Wednesday an extension of its pre-existing strategic partnership designed for the distribution of medical marijuana in the German pharmaceutical cannabis market. After a successful launch of Clever Leaves’ IQANNA No 7′ flower, Cantourage and Clever Leaves have launched ‘IQANNA No 10’. The new product is grown in a CLVR facility in Portugal and then processed by Cantourage. Clever Leaves stock price is down 89% year over year.
On Thursday, BayMedica LLC, a wholly owned subsidiary of InMed Pharmaceuticals Inc. (NASDAQ:INM), announced the launch of a delta 9-dominant tetrahydrocannabivarin, a rare cannabinoid. This cannabinoid is a non-intoxicating cannabinoid. According to the INM, “THCV is one of the few cannabinoids that has been researched in early clinical trials for various therapeutic effects, attracting considerable interest from end-product manufacturers and consumers alike. So as this market continues to mature, we are well positioned to be a leading supplier of rare cannabinoids to the health and wellness industry. We currently have several high-value, rare cannabinoids in various stages of commercial development and we We will continue to expand our cannabinoid portfolio over the next few years.” InMed stock is currently down about 50% year-to-date.