IMCC - Marijuana Stocks To Watch That Are Impacted By Cannabis Reform
2023-11-17 12:45:20 ET
Investing In Marijuana Stocks? Here Is What To Know About Current Cannabis Legislation
Although cannabis is still federally illegal more than half of the USA has established a legal market. Now with no federal reform in place, this has led to more concern about investing in legal cannabis. This has also been the cause of the increase in volatile trading for most marijuana stocks . Nevertheless, there is an ongoing battle to get federal reform passed. Many feel that rescheduling cannabis will be the biggest challenge for the industry to reach its full potential.
Recently The GOP-controlled House Rules Committee blocked several cannabis and psychedelic reform amendments. This includes a bipartisan proposal to protect state cannabis programs from federal interference. Representative Earl Blumenauer expressed disappointment in the rejection, citing shifting public opinion toward cannabis legalization. Despite this setback, a limited rider protecting medical cannabis programs made its way into the Commerce, Justice, Science, and Related Agencies (CJS) spending bill. The Committee also blocked amendments that aimed to prevent federal job applicants from being drug tested for marijuana and an attempt to prohibit federal funds from rescheduling marijuana under the Controlled Substances Act (CSA).
These developments introduce short-term uncertainty for cannabis stocks, but long-term investors may still see growth potential as the industry continues to evolve amid ongoing regulatory debates. Once federal reform is put into place or measures that protect legal business from federal regulators we may see an increase in investing. The reason some have found an interest in searching for marijuana stocks to buy is the idea that cannabis will be federally legal one day. When it does as mentioned before will be one of the most important legal victories.
Marijuana Stocks To Watch For Cannabis Investing.
- IM Cannabis Corp. ( NASDAQ:IMCC )
- Lowell Farms Inc. ( OTC:LOWLF )
- Glass House Brands Inc. ( OTC:GLASF )
IM Cannabis Corp.
IM Cannabis Corp. engages in the breeding, growing, and supplying of medical cannabis products in Israel and Germany. Recently the company reported its third-quarter financial results.
Q3 2023 Financial Highlights
- 6.6% decrease in Revenue and an additional 6.4% decrease in Revenue directly related to negative currency fluctuations for a total revenue of $12.4 million
- 10% increase in Gross Margin
- 30% increase in Gross Profit
- 65% decrease in Non-IFRS Adjusted EBITDA Loss
- 34% decrease in operating expenses, a 6% decrease compared to Q2, 2023
Words From The Company
“As in the previous quarters, in Q3 2023, we continued towards our goal of sustainable profitability,” said Oren Shuster, Chief Executive Officer of IMC. “Our focus on premium and premium plus in the Israeli market, where we are market leaders. On the flip side, we had to adjust our portfolio accordingly, to clean out the slow-moving mid and low range stock, which increased our sales volumes, but affected both our revenue and gross margin this quarter.”
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Lowell Farms Inc.
Lowell Farms Inc. engages in the cultivation, extraction, manufacturing, sale, marketing, and distribution of cannabis products to retail dispensaries in California.
On November 14th the company released its Q3 2023 financial earnings.
Third Quarter Financial Highlights
- Net revenue generated for Q3 2023 decreased 28% to $6.2 million, as compared to $8.7 million for Q3 2022.
- CPG revenue decreased 29% compared to Q3 2022 and decreased 2% compared to Q2 2023.
- Bulk revenue from self-grown wholesale products decreased 39% compared to Q3 2022 and decreased 47% compared to Q2 2023.
- LFS revenue increased 384% compared to Q3 2022 and increased 79% compared to Q2 2023.
- Out of state licensing revenue decreased 38% compared to Q3 2022 and decreased 19% compared to Q2 2023.
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Glass House Brands Inc.
Glass House Brands Inc. through its subsidiaries, cultivates, manufactures, and distributes cannabis bulk flowers and trims to wholesalers in California.
In recent news, the company reported record-breaking third-quarter 2023 financial results.
Q3 2023 Highlights And Key Mentions
- Cash increased to $37.9 million from $22.7 million in Q2 2023, including about $5 million in capex spend and a $12.8 million inflow from Series D Preferred Equity Fund Raise
- Operating cash flow reached a record $9.1 million versus $8.3 million in Q2 2023
- Adjusted EBITDA1 was $10.7 million versus $9.5 million in Q2 2023
- Revenue was a record $48.2 million, up 8% sequentially and 71% year-over-year
- Gross margin was 54% versus 55% in Q2 2023 versus 31% in the prior year period
- Q3 Biomass revenue increased 142% year-on-year and production was up 36% year-over-year
- Cost per Equivalent Dry Pound of Production2,3 dropped to a record low $118 per pound, down 12% versus Q3 2022
- Average selling price was $336 per pound, up 65% versus last year