Good Post Buckshot.. No Fluff like some! More REAL NEWS.. Cannabis stocks retreated for the third consecutive week.
The week was filled with deals and financial reports but limited big picture news.
The holiday-shortened week was light on news. NJ is revamping its medical cannabis program. Germany's bid process for licenses was halted by a judge.
Here are some of this week's highlights:
ACB boosted its holdings in Hempco to 35% after exercising warrants, suggesting that it will take its stake to 50%
APH launched Aphria International, focused initially on Germany, Italy, Spain, Portugal, Malta, Australia and Lesotho
CNNRF forged an all-stock deal to acquire California distributor RVR and closed its Kaya and Alta Supply acquisitions
CVSI reported a very strong Q4, with sales increasing 126%
GBLX announced a deal to buy NeavaPURE for $33 million, about 2X sales
GRWG reported a disappointing Q4, with 54% sales growth moderating and a lower gross margin.
IIPR reported stronger sales and earnings but didn't add any additional assets
MDCL reported its Q4, with sales of $1.18 million, and revealed the elimination of its remaining convertible debt
NXTTF signed an agreement with a Colombian licensed producer, Clever Leaves, to import its cannabis
Outlook
The cannabis sector is seeing improving quality due to new entrants and some of the older names executing. Valuations generally remain cautionary, and fundamentals are questionable for most of the over 600 companies in the sector.
The market has been in bull mode since late October and remains healthy despite the "Sessions Storm" that hit on January 4th.
There are some catalysts ahead, including progress in the Canadian legalization and in German MMJ as well as the roll-out of the California implementation and Massachusetts in July. The demise of the Cole Memo has left a big overhang in the U.S. market.
The big themes ahead are likely to be insight into the President's plans regarding the federal view on state-legal cannabis (especially in light of the Jeff Sessions Memo from January 4th), hopeful extension later this year of the Rohrabacher-Blumenauer Amendment in the House and the Leahy Amendment in the Senate (which are now set to sunset on September 30th) to insulate state-legal medical cannabis businesses from DOJ intervention, better clarity from the federal government for banks and cannabis research (both part of the proposed CARERS Act and other proposed legislation), DEA pushback towards the CBD from industrial hemp industry, the inclusion of a broader range of extracts in Health Canada's ACMPR program and its continued growth in patient enrollment, likely legalization in Canada, the rollout of MMJ in Denmark, Germany, Mexico and in Australia as well as continued advances in South America, progress with respect to the new legal c annabis implementations in CA and MA, and the new MMJ implementations in Arkansas, Florida, Maryland, Ohio, Pennsylvania and Texas, the implementation of the new medical program in California and the possible legalization via the legislatures in NH, NJ, NM, and RI and implementation of potential commercial programs in ME and VT.
Here are some of the most interesting stories this week: