Cannabis stocks widely outperformed the markets after a slew of financing deals and strong earnings reports.
“The cannabis industry is off to a great start this year with New York state pushing hard for legalization,” Green Market Report editor-in-chief Debra Borchardt said. “In addition to that several companies like GrowGeneration and GW Pharmaceuticals reported stellar earnings. Plus, Subversive Capital closed on the largest SPAC in the industry. Hopefully, the good news in 2021 will continue unlike the curveball thrown at us in 2020.”
ETFs were all up by double digits. Over the last five trading days:
- The ETFMG Alternative Harvest ETF (NYSE:MJ): gained almost 18%
- The AdvisorShares Pure Cannabis ETF (NYSE:YOLO): was up almost 12%
- The Cannabis ETF (NYSE:THCX): rose 18.4%
- The Amplify Seymour Cannabis ETF (NYSE:CNBS): advanced 13.9s%
- The SPDR S&P 500 ETF Trust (NYSE:SPY) was down 1.57%
Benzinga Cannabis content is now available in Spanish on El Planteo.
Cannabis sales in Michigan hit $984.6 million in 2020. Medical cannabis sales accounted for $474 million for the year, while adult-use sales reached $510.7 million.
Rhode Island and the Soboba Band of Luiseno Indians received approvals from the U.S. Department of Agriculture (USDA) for its hemp regulatory proposals.
The Christmas and New Year’s holidays marked the single biggest cannabis sales period of 2020. The period between Dec. 18 and Dec. 24 generated roughly $427 million, according to Akerna (NASDAQ:KERN). The largest sale day of the period was Wednesday, Dec. 23, with $87.3 million, making it the third largest cannabis sales of the year, just behind Green Wednesday with $87.4 million. Exceeding all expectations, New Year’s Eve was the single biggest sales day of 2020 with $89.4 million.
“The last two weeks of 2020 were easily one of the most profitable weeks of the year for cannabis retail,” Akerna CEO Jessica Billingsley told Benzinga. “If we’ve learned anything from 2020, it’s that cannabis is resilient, profitable, and exceedingly popular with U.S. consumers.”
Financings And M&A
Ayr Strategies Inc. (OTCQX:AYRWF) is offering 4 million voting shares with a price of CA$34.25 per share for total gross proceeds of around CA$137 million.
PureK Holdings Corp. (TSXV:PKAN) announced plans to acquire the BudaPets brand.
Curaleaf Holdings Inc. (OTCQX:CURLF) finalized a $50 million, three-year secured revolving credit facility.
Gold Flora formed a strategic partnership with Stately Capital Corporation to bolster development of the company’s California-based vertically integrated operation. Stately Brands also agreed to inject CA$10 million ($7.8 million) and contribute other…