Monday , September 21 2020

Cannabis rallies rally the second day after the law passes a law lifting the federal weed ban



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Shares of cannabis rallied for a second day Wednesday, awakened by the historic congressional committee to pass a bill aimed at lifting the federal weed ban, as well as strong gains for Kuraleaf, after announcing lower losses than expected in the third quarter.

US stocks listed on Curaleaf

KURLA, + 11.82%

Kura, + 12.33%

lasted 12.2%, as investors reduced their revenue shortfall.

The Massachusetts-based company reported a loss of $ 6.8 million or a penny a share, compared to a loss of $ 33.7 million or 9 cents a share in the previous period. Revenue rose to $ 61.8 million from $ 21.4 million. Analysts polled by Fakset expected a loss of 2 cents per share for $ 63.6 million in revenue.

GMP analyst Robert Hagan, who is evaluating the buy action, said the figures were "largely in line with our relatively high expectations". The number of revenue was below his estimated $ 67m.

He stressed the positives, including good cost control, the subsequent surge in sales, and that fears of evaporation only had an effect on Select's sales in the quarter. The company acquired the Select brand in May for 1.21 billion CS (US $ 954.7 million).

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IKM analyst Bill Kirk increased the fair market value of the stock to $ 8 from $ 6, but stuck with its neutral stock rating.

"Obviously, after poor earnings reports for most of the sector, it is nice to use positive numbers when talking about Kuraleaf's profitability," the analyst wrote in the note. "However, we still cannot come to an assessment."

The sentiment was reinforced Wednesday after the House Judiciary Committee passed a law re-investing and depleting marijuana opportunities (MORE) that should remove the federal cannabis ban and expel past convictions.

Read: Aurora cannabis stocks suffer worst day for more than five years, analyst says "it would be fair investors not to trust them"

The bill, introduced by Committee Chairman Emerald Nadler, a New York Democrat, was adopted Wednesday by a 24-10 vote in favor.

"The Senate will take its time, but then the Senate always does," Nadler said at a news conference Tuesday to introduce the bill. He also aimed to sound optimistic ahead of Wednesday's booking session on the bill: "Energy and political pressure from different countries is growing rapidly. The Senate is also subject to that. We will achieve that. "

Read also"The House of Representatives has passed a bill designed to legalize marijuana, but the top Democrat admits that the Senate will take its time."

In the company news, Health and Recreation Inc. vestetva

HRVSF, + 4.74%

FARV, + 5.31%

became the latest cannabis company to cut a previously contracted deal, its plan to buy cannabis licenses in Pennsylvania, Delaware, New Jersey and Maryland from CannaPharmacy Inc., initially priced at $ 88m.

Take a look now: Canada tells cannabis companies to improve cross-ownership disclosures

Instead, the companies agreed that Harvest Health would acquire Franklin Labs LLC, a unit of CannaPharmacy, for $ 26 million, split between $ 15 million in cash and a $ 11 million bill of exchange.

Vestett chief executive officer Asonesson Vedadi said the new conditions would help the company advance its revenue and profitability goals.

Shares of cannabis are still recovering after a sharp drop in share prices. Many companies revise the terms of the contract, reduce costs and sell assets as the legal market grows slower than expected and companies continue to report losses.

Vestetva announced the announcement because it reported a loss in the third quarter of $ 39.1 million, or 14 cents per share, well beyond the $ 453,000 loss reported in the previous period. The company did not offer a loss per share number for the previous year. Revenue rose to $ 33.2 million from $ 11.2 million. There are too few FactSet estimates to offer a reliable consensus.

In a similar move, Neptune Wellness Solutions Inc.

NEPT, + 1.95%

NEPT, + 2.77%

said Wednesday an agreement was reached with Canopy Growth Corp.

CGC, + 14.95%

LEVEL, + 13.44%

modify and agree the cannabis processing contract. The parties have agreed to Canopy's modified schedule of processing quantities performed on Neptune and the removal of certain preferential rights granted to Canopy in relation to Neptune's capacity and prices.

"Effective June 30, 2020, volume and prices will be negotiated between the two parties based on market conditions," Neptune said in a statement. The three-year contract's term remains unchanged. Shares in the US of Neptune fell by 3.7%, while "canopy" rose by about 12%.

Elsewhere in the sector, Tillare

THREE, + 3.30%

increased by 2.2%, AFRIA AD

APJA, + 3.41%

APJA, + 3.87%

grew by 3.1% and Kronos

CRON, + 2.39%

CRON, + 1.46%

rose 1.8%.

Aleafia Health

ALEAF, + 5.72%

Ale, + 2.94%

grew by 9.8%, Jackson

FEKSO, + 6.59%

FEKSO, + 4.08%

grew by 5.9% and Organogram

OGI, + 5.60%

grew by 5.6%.

Honeymoon

IMF, + 5.54%

rally 5.2%. GW Pharma

GWPH, -3.24%

fell by 3.0%.

ETFMG Alternative Gateway ETF

MJ, + 2.94%

rose 2.1%, with 25 of its 36 constituencies higher. Life Sciences of the Marijuana ETF Horizons

IMF, + 4.64%

rose 6.5%, with 42 of its 54 members larger.

S&P 500

SPX, -0.86%

The industrial average of the Dow ones fell by 0.8%

DJIA, -0.87%

fell by 232 points, or 0.8%.

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