What’s new in hashish shares for the week ending 3/19/21 – New Hashish Ventures

Navigate the fast-paced cannabis sector, a premium service that sends real-time notifications and explanations on the following messages and much more, with 420 Investor.

Summary

  • New York was getting closer to legalization.
  • Michigan cannabis sales in February sparked $ 105 million.
  • 420 portfolios of investor models have increased by 52.6% to 66.6% since the beginning of the year, while the Global Cannabis Stock Index has increased by 39.4%.

review

New York appears to be nearing legal legalization of adult cannabis. Michigan cannabis sales rose 210% year over year to $ 105 million in February. The FDA has issued a warning to two CBD companies

Health Canada didn’t add any licenses, bringing the total to 626, including 5 licenses that have expired, revoked, or suspended.

During the week, I shared these insights with subscribers of 420 Investor:

  • Another insider M&A deal for pocket-lined cannabis
  • Results preview for the rest of March
  • Cannabis Subsector Review – 3/19/21
  • Composition of the model portfolio 19.03.21

Here are some of this week’s highlights for 420 investor focus list names:

  • CRLBF fourth quarter revenue increased 6% sequentially to $ 162 million on adjusted EBITDA of $ 116 million
  • CURLF launched Select Squeeze, a fast-acting THC-infused beverage booster with nano-emulsification technology.
  • CWBHF has reached an agreement with AAXLL who agreed not to infringe its trademark. Revenue for the fourth quarter increased 7% sequentially to $ 26.9 million on an adjusted EBITDA loss of $ 2.1 million.
  • GRAMF introduced an inexpensive 1 gram strain-specific vape cartridge for $ 25
  • GRWG has taken over Agrion.io, which supports commercial producers by providing a purchasing and logistics platform. It replaced its CFO with the former Crocs and West Marine CFO. The company reported fourth quarter revenue of $ 62 million and raised its guidance for 2021 to $ 4,415 million to $ 430 million and adjusted EBITDA of $ 48 million to $ 51 million.
  • GTBIF opened stores in Illinois and Pennsylvania. The company announced its S-1 and filed an S-3 declaration of registration
  • HBORF secured a two-year revolving credit facility of USD 12 million at 5.75% with a commercial bank (and issued 4.1 million warrants at CAD 3.69).
  • LQSIF spin-off Nova Cannabis started trading. The company reported cannabis sales of $ 17.3 million for the fourth quarter, up 33%.
  • TCNNF paid $ 6 million in cash and stock to acquire the winner of a West Virginia cultivation license so that it could be fully vertically integrated. It also received permission to begin growth at its Massachusetts facility. The company reported fourth quarter revenue of $ 168 million, slightly above expectations, and forecast revenue of $ 821 million to $ 850 million in 2021 with adjusted EBITDA of $ 355 million to $ 375 million -Dollar.
  • TRSSF fired its CEO. The company had fourth quarter revenue of $ 65 million on Adjusted EBITDA of $ 26 million and updated its guidance for 2021 for revenue of more than $ 290 million and Adjusted EBITDA of more than $ 122 million.
  • VREOF had fourth quarter revenue of $ 12.4 million on an adjusted EBITDA of $ 0.1 million. A $ 32.5 million loan was taken out at Green Ivy Capital.

The Global Cannabis Stock Index fell sharply, ending the week on its lowest closing level since March 8, falling 8.4% to 61.87:

The index, which lost 34.1% in 2019 and 54.9% in 2018, after rising 91.8% in 2017 and 88.8% in 2016, rose 5.2% in 2020. By 2021 it had increased by 39.4%. It currently comprises 38 stocks and ended 2020 at 44.39:

420 investor model portfolios

420 Investor offers three model portfolios for subscribers, including two that are long-term and fully invested to outperform the Global Cannabis Stock Index, 420 Opportunity, and 420 Quality. 420 Opportunity ended the week valued at $ 165,930, down 11.6%. The model portfolio, which grew 57.5% in 2021, increased 35.6% in 2020 and increased 231.9% since April 2014.The model was launched in March 2017 and is aimed at long-term investors looking to lead in Want to invest in cannabis stocks with little portfolio turnover. Since inception, it is up 393.0% compared to a 23.5% decline in the index. Flying High, which is focused on swing trades, ended the week trading at $ 420,432, down 12.6%. The model portfolio grew by 52.7% in 2020 and increased by 66.6% in 2021. The return since inception at the end of 2013 was 4104%.

outlook

After a strong rally in early 2019, the cannabis sector saw a sharp decline to unprecedented levels over the next year due to several negative developments including the CannTrust scam, Bruce Linton’s surprise termination as CEO of Canopy Growth, a disappointing introduction of legalization in Canada, the US regulatory confusion over CBD and a slow roll-out of legalization in California, the vaping crisis and then financial turmoil and market disruption due to the COVID-19 pandemic. The sector saw capital available to fund expansion, a situation that continues to challenge negative cash flow companies as availability is limited to stronger operators.

Cannabis stocks overreacted and bottomed in March. You are now benefiting from the perception that the industry has strong growth prospects, which was not clear at the time. One big change was that the pandemic has led many regulators to allow previously banned types of retail activities such as roadside pickup and delivery. The legal market quickly benefits from becoming even more convenient than the illegal market and being able to order online. High unemployment and large deficits are likely to fuel government legalization efforts as well as more favorable regulatory scrutiny at the local level. Access to capital is now improving rapidly.

There are some potential catalysts ahead, including the FDA clearing CBD, advances in Canadian legalization, which began in October 2018 and encompassing a wider range of products, and continued growth in German and Israeli MMJ and other international markets is slow to develop. The adult implementations in California and Massachusetts have been slow to adopt, but are starting to show major improvements. Michigan and Illinois were legalized in late 2019, and these markets are experiencing strong growth that could encourage other states to legalize. Voters in Arizona, Montana, South Dakota, and New Jersey approved adult legalization in November.

The big issues that lie ahead are likely to be more cross-industry investment in the sector and greater consolidation in Canada and the US, a possible reform of federal regulation (SAFE Banking Act and other broader legislation) that will remove the 280E taxation and the Trade with higher taxes could enable exchanges for MSOs as well as the widespread use of credit cards for cannabis purchases), steps to enable cannabis research, the introduction of MMJ in Germany, Mexico and Australia, and further advances in South America and possible legalization of adult use in Israel and Mexico , new legal cannabis implementations in AZ, MT, NJ and SD as well as MMJ implementations in Virginia and soon also in Mississippi and West Virginia, possible legalization through legislation in CT, DE, FL, MD, MN, NH, NM, NY , PA, RI and VA and implementation of the commercial VT program in 2022.

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Alan Brochstein, CFA

Alan is based in Houston and leverages his experience as the founder of the online community 420 Investor, the first and largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to seek new ways to connect the industry and fuel its sustainable growth. At New Cannabis Ventures he is responsible for content development and strategic alliances. Before focusing on the cannabis industry in early 2013, Alan worked as an independent research analyst in 1986 after spending over two decades in research and portfolio management. Alan is a prolific writer with over 650 articles published since 2007 on Seeking Alpha where he has 70,000 followers. He is a frequent speaker at industry conferences and a frequent source for the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | E-mail

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In this article:

Alcanna, Charlotte’s Web, cl, cliq, Cresco Labs, CRLBF, cura, Curaleaf, curlf, cwbhf, CWEB, Gramm, GRAMF, Green Thumb Industries, GrowGeneration, GRWG, gtbif, Gti, gtii, Harborside, hbor, HBORF, lqsif, tcnnf, TER, Terrascend, the parent company, TPCO Holding, TRSSF, TRUL, trulieve, Vireo, Vireo Health, vreo, vreof

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