The Cannabis Sector Election Spotlight (GRWG, CRON, NUGS, CRLBF)
The polls say Biden/Harris could be the winning ticket by a landslide. Biden negotiated with Sanders to put out an explicit call for national decriminalization of cannabis in the US. And Kamala Harris directly called for a change, announcing in a virtual town hall that: “we will decriminalize the use of marijuana…”
That stacks the odds in favor of a Blue Wave election with major implications for cannabis stocks. With the election just a week away, stocks in the space may see ramping interest into the big day.
With that in mind, here’s a selection of some of the most interesting names in the space, including: GrowGeneration Corp (OTCMKTS:GRWG), Cronos Group Inc (NASDAQ:CRON), Cannabis Strategic Ventures (OTCMKTS:NUGS), and Cresco Labs Inc (OTCMKTS:CRLBF).
GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.
GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
GrowGeneration Corp (OTCMKTS:GRWG) just announced its acquisition of Big Green Tomato (“BGT”), a two-store chain in Battle Creek and Taylor, Michigan. Big Green Tomato is one of Michigan’s premier hydroponic equipment stores, founded in 2011 by a team of experienced executives with 25 years of combined experience in the industry. BGT has two well established locations with strong commercial operations and annual revenues approaching $16M. As part of the transaction, GrowGen purchased the 10,000 square-foot retail property in Battle Creek.
According to the release, with the BGT acquisition, the Michigan market is expected to generate annual revenues well over $40M for GrowGen. It also brings the total number of GrowGen hydroponic garden centers in Michigan to six, with locations in Battle Creek, Grand Rapids, Livonia, Taylor, South Lansing and West Lansing.
Even in light of this news, GRWG hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action.
GrowGeneration Corp (OTCMKTS:GRWG) generated sales of $43.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 31.7% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).
Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).
The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.
Cronos Group Inc (NASDAQ:CRON) recently announced the launch of Happy Dance, a new, clean, simple CBD skincare brand, co-founded with actress and New York Times best-selling author Kristen Bell. Happy Dance launches with a trio of high-quality, cruelty-free and vegan bath and body care products.
The new Happy Dance collection features a body butter, a coconut melt and a bath bomb, all formulated with Kristen Bell’s favorite clean ingredients and high-quality CBD from full-spectrum hemp extract. These multi-purpose products are infused with delightful blends of plant-based oils and butters in enjoyable textures that are effortlessly easy-to-use. The ultimate head-to-toe body treats, Happy Dance products are perfectly suited for the CBD enthusiast or for someone experiencing CBD for the first time.
Even in light of this news, CRON hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action.
Cronos Group Inc (NASDAQ:CRON) managed to rope in revenues totaling $13.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 33.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.8B against $320.4M).
Cannabis Strategic Ventures (OTCMKTS:NUGS) bills itself as one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops, and partners with category leaders within the cannabis and ancillary sectors.
The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
Cannabis Strategic Ventures (OTCMKTS:NUGS) recently announced September monthly performance data, which showed a strong continued pace of growth in sales of cannabis products during the month. The Company booked over $2.3 million in total sales from cannabis products during September. That compares to $1.8 million in total sales from cannabis products in August. This represents a sequential monthly growth rate of approximately 28%, reaffirming the overall growth trend that has defined the Company’s performance so far in 2020.
“We continue to see growing market positioning and overall performance despite variable market conditions for cannabis producers over the past two months,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “It’s remarkable to look back and recall that our target for 2020 for the topline was around $5 million in annual sales. We have already more than doubled that, and we look forward to a very strong run into year-end.”
According to the company’s release, demand slowed in August due to macro forces. But September’s strong performance represents the Company’s robust growth trend driven by effective positioning, strong product quality and a growing end-market footprint.
If you’re long this stock, then you’re liking how it has responded to the announcement. NUGS shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.
Cannabis Strategic Ventures (OTCMKTS:NUGS) pulled in sales of $3.4M in its last reported quarterly financials, representing top line growth of 1992.7%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($457K against $17M, respectively).
Cresco Labs Inc (OTCMKTS:CRLBF) manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.
The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.
Cresco Labs Inc (OTCMKTS:CRLBF) most recently announced the launch of its Remedi brand and its Renew and Realign spray tinctures and Renew capsules in New York. In addition, Cresco has received approval for both THC only and 1:1 CBD to THC capsules, spray tinctures, syringes and vape products from its Remedi line from the New York Department of Health.
“I’m excited to introduce Remedi, the first brand from our portfolio in New York. Remedi products are specifically tailored to meet the needs of medical patients, and they come in precise doses and form factors similar to other health and wellness products. Our new-to-market Sativa spray tincture, as well as new-to-market Hybrid and Indica capsules, are the only category-specific spray tinctures and capsules currently offered in the state,” said Greg Butler, Chief Commercial Officer at Cresco Labs. “This launch is the next step in expanding our branded wholesale business in New York, just as we have across the rest of the network throughout 2020.”
The stock has suffered a bit of late, with shares of CRLBF taking a hit in recent action, down about -3% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 23% in that time on strong overall action.
Cresco Labs Inc (OTCMKTS:CRLBF) generated sales of $130.6M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 46.3% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($100.6M against $222.5M, respectively).
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Published at Wed, 28 Oct 2020 06:11:18 +0000