MRMD - The Daily Hit: January 18 2022
It’s time for your Daily Hit of cannabis financial news for January 18, 2022.
On The Site
Index
Cannabis companies may be reporting record sales in some cases, but investors wouldn’t think that based on the stock prices. The fourth quarter was challenging for a number of reasons ranging from a fast expansion of stores in some provinces in Canada, disappointments in legislation for new cannabis states, and overwhelming debt clouding some company outlooks. In addition, there were companies reporting slowing sequential sales and that was enough to cause many investors to throw in the towel. You can read the entire report here .
Charlotte’s Web
National supplements retailer GNC is going to start selling Charlotte’s Web Holdings (OTC: CWBHF), Inc. full spectrum hemp extract products. Initial shipments of six varieties of Charlotte’s Web Gummies will be available for purchase at GNC retail locations across 24 states, with the intent to expand into additional states.
“To best reach and serve consumers we rely, in part, on strong partnerships with proven mass retail partners,” said Jacques Tortoroli, Chief Executive Officer of Charlotte’s Web . “GNC’s established retail footprint adds depth to our reach domestically and broadens consumer access to our high-quality hemp CBD products. We expect GNC will become one of our largest retail customers this year, and we are excited about the growth provided by bringing our two leading brands together.”
Tech
Using data gathered through research to more effectively develop products that meet consumer needs is not new, but a promising innovation, at least for the cannabis industry, is using Artificial Intelligence to streamline and enhance not only the research but development processes. Nancy Whiteman, CEO of Wana Brands (one of the cannabis companies currently utilizing AI for R&D purposes in collaboration with The Effects Lab by budboard ) is enthusiastic about AI’s potential. “Instead of creating a product and then waiting to hear from consumers whether it hits the mark, we are starting by looking at data across thousands of user reports to identify terpenes and cannabinoids that deliver a specific effect, then integrating those into our case-specific products.” Wana Brands will be teaming up with Canopy Growth (NASDAQ: CGC) in the future due to a deal agreed upon in October.
In Other News
MariMed
MariMed, Inc. (OTCQX: MRMD) signed a definitive agreement to acquire Green Growth Group, Inc. holder of a provisional Cannabis Craft License in Illinois. For this Craft License, the Company will acquire a building to develop up to 14,000 square feet of canopy for cultivation, build an extraction lab to produce concentrates, and build a production kitchen for the manufacture of edibles and other derivative products. A Transportation License also being acquired will enable the company to wholesale its products throughout Illinois. the price was not disclosed.
The company said it intends to manufacture and distribute in Illinois its proprietary brands and products, including its Betty’s Eddies® fruit chews, which was one of the top-selling edibles in the state until 2019 through a third-party licensing agreement, its award-winning Nature’s Heritage® flower and concentrates, its Bubby’s Baked soft and chewy baked edibles, and more.
Columbia Care
Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) has hired Derek Watson as Chief Financial Officer. Derek brings more than 30 years of finance and leadership experience to the role, including in strategy, investor relations, information technology, tax, treasury, accounting, financial planning and analysis, operational improvement, and risk management. Prior to joining Columbia Care, Derek served as the Chief Financial and Commercial Officer at Tastes on the Fly, a private equity-backed, national consumer retail company based in California. He has also held Chief Financial Officer roles at two other consumer companies, Starr Restaurants and Samba Brands, and as Chief Financial Officer and Vice President of Strategic Initiatives at Schindler Elevator, the U.S. subsidiary of Schindler Holding AG (SCHN.SW).