Video Staff
This week the USDA released a draft for the regulation of hemp in the US. once the rules are released they will be temporary for the first year. This allows the states to participate in hemp cultivation and processing for the 2020 growing season. The rules also cover other important things like where hemp can be grown, THC testing standards, biomass transportation, licensing regulations, and more.
MedMen had a rough week. The company reported earnings and while it wanted the market to focus on the full-year revenue of $130 million, it was the $277 million in losses that caught everyone’s attention. In addition to that Gotham Green made changes to the company’s credit facilities and took majority control of the company’s board. Then Cowen & Co piled on as analyst Vivian Azer questioned the company’s cost-cutting goals.
Hexo stock took another beating. Last week the company announced layoffs, this week it reported earnings of $15.4 million versus last year’s $13 million but then delivered a net loss increase of over 400% coming in at $56 million for the quarter versus last year’s net loss of $10 million. The company also lowered guidance citing slower than expected store roll out across Canada and lower sell-through.
So, let’s just keep going with the bad news, DionyMed is headed for bankruptcy or as the Canadians call it receivership. The company couldn’t pay the $24 million that its creditors were demanding and so the fat lady began to sing.
The bear market forced Curaleaf to change its deal with Cura Partners. The share amount was cut by half and any additional shares will be payable upon the company meeting certain sales target goals.
It was all terrible this week. In positive news, Liberty Health Sciences reported revenue of $10 million versus last year’s $2 million for the same time period and net income of $22 million over last year’s net loss of $5.6 million.
The company 1906 raised $18 million in a round led by Navy Capital and General Cannabis bought a dispensary in Boulder.
Finally, presidential candidate and Vermont Senator Bernie Sanders released his plan for legalizing cannabis. He said he will remove cannabis from the controlled substances act and expunge all past convictions.
