In this week's "Rising High," The Fly's recurring series focused on cannabis stock news, The Fly looks back at the delay of a beverage launch timeline, analyst views and the receipt of an EU GMP certification.
CANOPY DELAYS BEVERAGE LAUNCH: Canopy Growth (CGC) announced Friday it submitted its final documentation for its beverage facility to Health Canada in late June 2019 and subsequently received the licence in late November 2019. The company said, “The scaling process is not complete, and the company is extending its to-market date while the internal teams complete the final steps. Canopy does not believe this delay will have a material impact on its FY20 revenue.” Additionally on Wednesday, the company announced that Judy Schmeling has been appointed chair of the board of directors and Jim Sabia has been appointed in principle as a member of the company's Board of Directors.
CRONOS OPPORTUNITIES ‘UNDERAPPRECIATED’: Piper Sandler analyst Michael Lavery said Friday he expects Cronos Group (CRON) to report "strong" sales growth, driven largely by the company's potential for large gains in U.S. CBD. Cronos has important relationships with U.S. cannabis retail operators that could provide turnkey access to shelf space once it becomes legal to enter the market, Lavery told investors in a research note. The analyst also believes the company's partnership with Altria (MO) provides "important capital" and access into ~200,000 U.S. retail outlets, as well as regulatory and vapor product expertise. Lavery maintained a $12 price target and Overweight rating on the shares and believes Cronos' U.S. opportunities are likely underappreciated by the market.
HEXO PRICE TARGET LOWERED: On Friday, Roth Capital analyst Scott Fortune maintained a Neutral rating on Hexo (HEXO) and lowered his price target on shares to $1.75 from $2.25, following the company's announcement it would raise 11.98M shares at a price of $1.67 per share. The analyst cited "anticipated continuation of Canadian retail weakness" as the reason for the price target reduction.
TETRA GRANTED OTC DINS: Tetra Bio Pharma (TBPMF) on Friday announced that Health Canada has granted two Drug Identification Numbers for the first over-the-counter products to be marketed under its TERPACAN banner. Tetra is in the process of finalizing supply, sales and distribution agreements with several companies, and anticipates launching TERPACAN products in Canadian pharmacy retail outlets by mid-2020. Additionally, Tetra will launch these products into the American and European markets in 2020, once it receives final marketing authorization in those countries.
APHRIA RECEIVES EU GMP CERTIFICATION: Aphria (APHA) announced Wednesday that it has received its European Union Good Manufacturing Practices certification as an active substance manufacturer in accordance with Art.111 of Directive 2001/83 EC from the Malta Medicines Authority at the company's Aphria One facility in Leamington, Ontario. This marks Aphria's second EU GMP certified facility, following the previously announced certification at the company's subsidiary, ARA. The certification will allow the company's Aphria One facility to be a supplier of bulk dried flower for medicinal use worldwide to other EU GMP certified facilities licensed to further process or package bulk dried flower into finished cannabis product for sale in permitted jurisdictions.
OTHER CANNABIS STOCKS: Other publicly-traded companies in the space include Akerna (KERN), Aleafia (ALEAF), Aurora Cannabis (ACB), Biome Grow (BIOIF), CannTrust (CTST), Canopy Rivers (CNPOF), Cresco Labs (CRLBF), CV Sciences (CVSI), Delta 9 (VRNDF), DionyMed Brands (DYMEF), Elixinol Global (ELLXF), General Cannabis (CANN), Greenlane (GNLN), GrowGeneration (GRWG), Harborside (HSDEF), Harvest Health and Recreation (HRVSF), Hemp Inc. (HEMP), Hexo (HEXO), India Globalization Capital (IGC), Indiva (NDVAF), ICC International Cannabis (WLDCF), Innovative Industrial Properties (IIPR), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), MediPharm Labs (MEDIF), MedMen Enterprises (MMNFF), MJardin (MJARF), Organigram (OGI), Origin House (ORHOF), Planet 13 Holdings (PLNHF), Real Brands (RLBD), Sproutly (SRUTF), Sunniva (SNNVF), Tilray (TLRY), Trulieve (TCNNF), Vireo Health (VREOF), Wayland Group (MRRCF), WeedMD (WDDMF), Westleaf (WSLFF), Wildflower Brands (WLDFF) and Zynerba (ZYNE).
