The Boston Beer Company jumped into the cannabis-infused beverage market
Welcome back to our weekly series, Schaeffer’s Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks this week, and look ahead to how the cannabis industry will continue to develop in 2022.
Here is a quick roundup of major cannabis stock news last week:
Flora Growth Corp (NASDAQ:FLGC) kicked off this week with an acquisition announcement. FLGC will acquire Masaya from well-known cell biologist, Dr. Annabelle Manalo-Morgan. Flora Growth’s acquisition of Masaya includes a patent-pending CBD formulation that is 100% THC-free which FLGC plans to use in ongoing clinical trials in the U.K., to sell in the U.S., and to register in Colombia for sale. According to Flora Growth, “This acquisition allows us to deliver on our promise to invest in safe, thorough, cutting-edge scientific research that can bring meaningful change via an efficacious and accessible product offering for people worldwide.” Meanwhile, Flora Growth stock price is down nearly 44% year-to-date and saw a relatively neutral reaction to this acquisition announcement.
On Monday, The Boston Beer Company Inc (NYSE:SAM) launched a brand new line of cannabis-infused iced teas. TeaPot is SAM’s first foray into the cannabis-infused beverage market and will be available for sale in Canada in July. According to SAM, “TeaPot purposefully pairs the right tea with the right pot for the right occasion. Each can is precisely dosed for social gatherings with friends and family. We think TeaPot is the best-tasting cannabis beverage on the market, and we can’t wait for people to try it – we think they’ll agree.” On the charts, Boston Beer stock price is up nearly 7% this week following the TeaPot product launch announcement, though SAM is trading down nearly 30% year-to-date.
A new face joined Urban-Gro Inc (NASDAQ:UGRO) on Tuesday. Arie Kamp was hired as managing director of UGRO’s Netherlands-based European entity, urban-gro Europe B.V. According to Urban-Gro, Kamp’s “valuable experience within the European market, the breadth of his relationships and deep knowledge in facility logistics automation will further enhance the expansion of our service capabilities for our North American clients. We are looking forward to his contributions as we continue to bolster our reputation as the premier turnkey solution provider in the indoor CEA industry.” Urban-Gro stock is currently down 42% year-to-date.
A CBD-centric “Subscribe-and-Save” program was launched by High Tide Inc (NASDAQ:HITI) subsidiary, Blessed CBD, this week. The new program, Wellness Club, launched in the U.K. on Wednesday with plans to expand into Germany in the future. Wellness Club allows members to customize monthly orders, customize delivery schedules, and provides major discounts for repeat customers up to 25%. High Tide stock, however, has lost 65% of its value over the past year, dropping 24% just over the past month.
Tilray Inc (NASDAQ:TLRY) launched POLLEN – a new CBD lifestyle brand – on Thursday. POLLEN will be sold on Amazon.com (AMZN) in the United Kingdom and features CBD gummies and drink drops. Tilray stock has dropped nearly 74% year-over-year.
Finally, on Thursday this week, Aurora Cannabis Inc (NASDAQ:ACB) announced bought deal financing with underwriters from Canaccord Genuity and BMO Capital Markets worth approximately $125 million. ACB was last seen down 39.8%, headed for its worst day in over two years. This financing is expected to close around June 1, subject to approval from the Toronto Stock Exchange and the NASDAQ Global Select Market. Aurora stock is down 70% year-to-date.