The cannabis industry is still going strong despite the coronavirus pandemic causing a huge impact on many industries. There is no doubt that the industry has been affected, but key players have taken the necessary steps to ensure that their businesses survive the harsh times.
CNFA, OGI, HRVSF, and CWBHF are among the companies that investors should put on their watch list. Here are some of the latest news from the above stocks.
Canafarma Hemp Products Corp (CNSX: CNFA) Discloses Plans To Start Producing Center-Filled Chewing Gum Infused With Hemp Oil
CanaFarma announced on July 12 that it has plans to start manufacturing CBD-infused center-filled chewing gum as soon as September this year.
The company already filed provisional patents for the CBD-infused chewing gum in Europe and the U.S, which are the key markets that Canafarma targets. The company developed the chewing gum in collaboration with APet Holding BV, and the two have been conducting tests aimed at refining the manufacturing process. They expect to finalize the testing phase in August to commence manufacturing as early as September.
“We are very pleased to be delivering this patent-pending, cannabinoid-infused, center-filled chewing gum extension to our YOOFORICTM range of products, and expect it to be very well received by our customers,” stated CanaFarma CEO, David Lonsdale.
The patent hat CanaFarma filed involve an innovative chewing gum that will be filled with high-quality hemp oil that will contain a variety of phytocannabinoids, including CBD. The cannabis company will sell the CBD-infused chewing gum as an extension of the popular YOOFORICTM, which has a hard shell and is also sold by CanaFarma.
The new chewing gum is designed to have long-lasting chewability, and the CBD will continue to be released from the gum for some time as it is being chewed. CanaFarma will market the center-filled gum as fun and advanced way of enjoying CBD and hemp oil.
OrganiGram Holdings Inc (NASDAQ: OGI) Announces Q3 Earnings Timeline And Corporate Action Plan Due To COVID-19
Organigram recently released a corporate update in which it revealed its COVID-19 corporate action plan, as well as the timeline for the release of its Q3 earnings.
The company revealed that it will make some staff changes which include trimming its workforce by 25%. This means that roughly 220 employees will be affected by the decision. The company has 609 employees, and roughly 433 of them have been working at its indoor facility, located in Moncton.
“These decisions are never easy to make, but we are committed to ensuring the Company is appropriately sized relative to market conditions,” stated Greg Engel, the CEO of Organigram. The company has also adopted proactive strategies that are helping it to remain focused while also ensuring the safety and health of its workers. The strategies are also aimed at making sure that the business remains operational.
Organigram is also making some production changes that include reducing its cannabis production capacity at the Moncton campus. This will help the company to adjust to reduced demand due to the prevailing market conditions. The company also plans to start to deliver new cultivars while also boosting terpene and THC profiles in dried flowers in line with the changing consumer demand.
As far as the Q3 earnings report, the company announced that it plans to delay the filing of interim financial statements for the period ended May 31, 2020, by at least one week. The Canadian securities regulatory authorities permitted the delay. The interim filings were initially scheduled for July 15, 2020, but they will likely be filed on July 21, 2020.
Despite the delay, the company will reportedly reveal some favorable results such as lower general and administrative expenses for Q3 compared to the expenses that the company reported in its fiscal Q2, 2020.
Harvest Health & Recreation Inc (OTCMKTS: HRVSF) Announces Its First Quarter 2020 Financials
Harvest Health disclosed the financial results of its fiscal first quarter of 2020, revealing that its revenue during the quarter grew by an impressive 134% compared to the corresponding quarterly period in 2019.
The company revealed that its Q1 2020 revenue was s $45.0 million, which was higher than the $19.2 million that the company earned in Q1 2019, thus a 134% improvement. Harvest Health also revealed that the gross profit for the quarter was $18.3 million before biological adjustments. Thus, it managed to outshine the Q1 2019, which was reported at $7.9 million and the $16.0 million that the company earned in Q4 2019.
The Q 2020 net loss was $20.0 million, which was the same net loss amount that the company reported in Q1 2019. The adjusted EBITDA for the quarter was -$3.9, which was lower than the -$4.7 adjusted EBITDA reported in Q1 2019. The company expects to earn $200 million in full-year revenue, and it remains on track to achieve its targets in the second half of 2020.
As for the business highlights, Harvest Health managed to raise $59 million in equity, $21.3 million in the form of senior secured debt, and $20 million from backed real-estate debt. The company also opened 5-new retail locations in Michigan, Arkansas, and Arizona. The company also finalized the acquisition of Franklin Labs on March 26, just two weeks after the acquisition of Interurban Capital Group on March 13. It also completed the acquisition of Arizona Natural Selections on February 18.
Harvest Health revealed that it has maintained active operations digitally during the coronavirus outbreak, thus allowing it to continue serving its customers. The company also announced that it plans to save as much as $24 million through companywide cost-cutting measures. The company has implemented the right measures to weather the impact of COVID19 on its business operations.
Charlotte’s Web Holdings Inc (OTCMKTS: CWBHF) Welcomes Infinite CBD In FDA Study TO Establish Whether CBD Products Are Safe
Infinite CBD announced on July 6 that it plans to join Charlotte’s Web and other cannabis industry players in a critical study designed to establish whether CBD is safe consumption.
Charlotte’s Web, Infinite CBD, and the other cannabis companies will participate in the study to provide the Food and Drug Administration (FDA) safety data. The study, known as ValidCare, involves companies such as CBDistillery, HempFusion, CBD American Shaman, Columbia Care, Boulder Botanical & Bioscience Labs, and Kannaway.
The FDA requested the CBD safety data to Congress in March this year. The regulatory authority aims to find out the key industry data before important decisions regarding industry standards are made. The request for CBD safety data was also courtesy of concerns that ingesting CBD-infused products could cause liver toxicity. Infinite CBD and the other companies involved in the study are confident that the study’s findings will eliminate any concerns regarding safety will dispel the fears.
“We hope that these efforts will showcase the abilities of this cannabinoid and pave the way for regulation within our ever-growing industry. As a pioneer of exceptional CBD isolate products, we are thrilled to use this consumer data to further improve the customer experience,” stated John Ramsay, the CEO of Infinite CBD.
The study will kick off this month, and it is expected to involve roughly 100 CBD users who will consume CBD products orally. The sponsoring businesses will provide CBD products, and the test subjects will consume the CBD every day for 30 days. The ValidCare team will closely monitor the subjects, although third-party doctors will also be involved.
The findings from the ValidCare study is expected to be released before the end of 2020. If the findings from the study are favorable, the data will allow the FDA to set appropriate and fair guidelines for CBD products. This would, in turn, pave the way for bigger opportunities for CBD products and their manufacturers.
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