Many cannabis players have blamed the slow rate of new store openings, especially in Ontario and Québec, for lower-than-expected sales this quarter. However, this could change soon, as the Government of Ontario plans to expand its retail footprint. Yesterday, the government announced that it was scrapping its cap on the number of private retail cannabis stores and moving toward a new licensing system starting next month.
Cannabis stocks react
The announcement appears to have led the cannabis sector to trade higher. Today, at 1:00 PM ET, the ETFMG Alternative Harvest ETF (MJ) was up 0.8%. Also, the Horizons Marijuana Life Sciences Index ETF (HMMJ) was up 1.0% at 12:45 PM ET. The broader equity market was marginally in the green, with the S&P 500 Index trading 0.1% higher at 1:00 PM ET. Let’s look at the cannabis players that are in the news today.
MedMen rises over 24%
After rising 24.5% yesterday, MedMen Enterprises (MMNFF) (MMEN) continued its upward momentum today as well. At 12:42 PM ET, the stock was up 24.0%. On December 11, the company’s management provided an optimistic outlook and provided updates on its financing and measures to lower its corporate selling, general, and administrative expenses. For more info, read Why MedMen Stock Rose More than 24% on Thursday.
OrganiGram receives Health Canada’s approval
Today, Organigram Holdings (OGI) announced that it had received a cultivation license for 16 additional rooms at its Moncton campus from Health Canada. These new rooms added 13,000 kilograms per year of cultivation capacity to the facility, raising its total production capacity to 89,000 kg per year. The new approval also includes its Phase 4C and Phase 5 areas and the area in which the company plans to set up its chocolate line. The company has already purchased the line and expects to produce cannabis-infused chocolates for sale in the first quarter of 2020. Today, its stock was up 1.8% at 12:47 PM ET.
TGOD announces new credit facility
Today, The Green Organic Dutchman Holdings (TGOD) (TGODF) announced that it had signed a binding term sheet with Maynbridge Capital for a senior secured credit facility of $41.7 million. The new credit facility, which needs to fulfill certain conditions, will replace the company’s proposed arrangement with Ancaster Energy Centre. Today, its stock was up 2.4% as of 12:46 PM ET. However, it’s fallen 66.7% this year as of December 12.
Cresco Labs outperforms many of its cannabis peers
Yesterday, Cresco Labs (CL) (CRLBF) sold its cultivation facility in Lincoln, Illinois, to GreenAcreage Real Estate for $50 million. However, the company has the facility back on a long-term lease agreement from GreenAcreage. When fully developed, the facility will span 220,000 square feet. Today, CL was trading 2.5% lower at 12:28 PM ET. YTD, the stock has lost 9.2% as of December 12. However, it’s outperformed many of its peers. For more on cannabis-related news and updates, be sure to check out 420 Investor Daily.