Cannabis stock report: Pot stocks continue to drop as cannabis companies layoff employees during economic turmoil
Cannabis stocks fell harder than the Bush-era stock market on Thursday as The North American Marijuana Index lost 3.97 points to close out the day at 107.28. It was bad news all around the North American cannabis markets, with The United States Marijuana Index plummeting, losing 2.09 points to hit 50.45. At the same time, The Canadian Marijuana Index continued its tailspin, dropping 4.12 points to end the day at 194.67.
The NASDAQ composite also took a hit on Thursday, falling 598.34 points down to 11,458.10 while the NYSE lost 310.61 points to end the day at 12,966.14 for a 2.34 percent loss.
On top of the market losses, the industry was hit with another round of layoffs this week. Marijuana Business Daily reports that Canopy Growth, a company that’s already dealt with multiple layoffs this year thanks to the cannabis industry’s economic downturn and COVID-19, laid off a number of employees at Niagara-on-the-Lake in Ontario. Company spokesperson Jordan Sinclair, who is the vice president of communications, tells MJBizDaily that the move is part of a broader restructuring plan.
“These decisions are never easy, and we want to thank the employees affected for the contributions they made to Canopy,” Sinclair said, according to MJBizDaily. “We’ll update the company’s employee count when we report our financial results later in the fall.”
Already this year, Canopy has cut staff by upwards of 18 percent. It was reported that they declined to announce just how many employees were laid off in this round.
The company has so far lost around $95.7 million in the first quarter of its current fiscal year.
Meanwhile, cannabis tech firm Akerna, who The PotNetwork reported yesterday had split with John Prentice, founder of Ample Organics following a $45 million acquisition deal, has announced some layoffs of its own. A statement released to Marijuana Business Daily stated that the acquisition led to the layoffs.
“As a company,” Akerna said in the statement, “we prioritize our people first and foremost, but sometimes it is unfortunately necessary to reduce staff.”
“This is never a decision taken lightly and one that is avoided at all costs,” the statement continued. “Our recent changes reflect our commitment to positive growth in a responsible and efficient manner.”
According to MJBizDaily and New Cannabis Ventures, Prentice was unhappy with the situation at Akerna. He said Akerna’s executive leadership was “incapable” of creating the “preeminent global (cannabis) technology platform” and leading the “cannabis industry’s evolution ” in a post on his personal website, according to Marijuana Business Daily.
Cannabis stock winners and losers
Zenabis Global Inc. (ZENA:CA) gained $0.005 per share up to $0.105 for an increase of 5.00 percent. Columbia Care, Inc. (CCHWF) rose $0.07 per share up to $3.45 for a gain of 2.07 percent. Vireo Health International Inc. (VREOF) jumped $0.01 per share to $0.78 for an increase of 1.30 percent.
Green Growth Brands Inc. (GGBXF) fell $0.0055 per share down to $0.0235 for a loss of 18.97 percent. Delta 9 Cannabis Inc. (DN:CA) dropped $0.08 per share down to $0.53 for a decrease of 13.11 percent. GrowGeneration Corp. (GRWG) lost $1.15 per share down to $14.54 for a loss of 7.33 percent.
MediPharm Labs enters agreement with Cann Farm Peru
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF), a cannabis extraction, distillation, and derivative products company, announced on Thursday its subsidiary, subsidiary MediPharm Labs Inc. will provide cannabis oil to Cann Farm Peru S.A.C. Cann Farm is based in Lima and serves Peruvian Markets. According to a statement, it’s MediPharm’s first such agreement in Latin America, and part of their broader international strategy.
“Peru is one of the top medical cannabis markets in the world and Cann Farm is one of very few cannabis companies which hold both a Droguería licence and cannabis importation licence which makes this agreement of outstanding strategic value to MediPharm Labs,” said Pat McCutcheon, CEO, MediPharm Labs in a statement. “As we pursue our global ambitions, it is vital for us to partner with companies of Cann Farm’s calibre who know their local markets intimately, have a real appreciation for the needs of patients, an ongoing commitment to scientific advancement and a sound plan for regional expansion. We expect great things from this collaboration.”
In other cannabis stock news…
Medical and industrial cannabis and hemp are coming to Pakistan. According to a report in the Hindustan Times, minister for science and technology, Fawad Chaudhry, tweeted that the country will approve the legalization and commercialization of the products.
“Cabinet has approved first license for @MinistryofST and PCSIR [Pakistan Council of Scientific and Industrial Research] for industrial and medical use of Hemp… [The] landmark decision will place Pakistan in billions of USD CBD market,” he Tweeted.
According to the Chicago Sun-Times, Chicago will award 75 dispensary licenses later this month, now that a global accounting firm has finished grading over 1600 applications. “We are extremely gratified that every license in this first round will go to a social equity applicant,” said Toi Hutchinson, Gov. J.B. Pritzker’s key cannabis adviser, as per the Times. “Illinois is the first and only state in the nation to reach this equity milestone.”
New Zealanders are officially split on cannabis legalization according to a new poll. Survey results show them evenly split down the middle 49.5 percent both for and against, with 1 percent not answering.