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Cannabis stocks were mostly higher Wednesday, with Tilray Inc. at the center of attention after unveiling an agreement of more than $ 300 million, which is its largest acquisition to date.
Tilray Stock
TLRY, + 3.14%
increased 4.5% after the company announced a $ 317 million purchase and purchase agreement for Manitoba Harvest, a company claiming to be the world's largest manufacturer of hemp foods . Tilray said it plans to use the deal to launch CBD derivatives in the US this summer.
However, for the moment, the legality of CBD, a non-psychoactive ingredient that can be derived from cannabis or hemp plants, is unclear. Although hemp has been legalized in the recent agriculture bill, the CBD remains in the hands of the Food and Drug Administration, which issued the first guidelines requiring companies to obtain prior authorization before sell products containing CBD. The FDA plans to hold public discussions on the issue, although it has not yet set a date.
Manitoba General Manager Bill Chiasson told MarketWatch that the current plan is to introduce a range of CBD-based dyes, a CBD-based spray, and CBD-based softgels. Manitoba and Tilray will follow all federal and regional guidelines.
For more, read: Tilray is the richest case yet to try to break into the US CBD market
Aurora Cannabis Inc.
CBA + 1.88%
CBA + 1.31%
shares rose 1.5%. The company said it has appointed Michael Singer, former chairman of the board of directors, to the position of executive chairman. The company has appointed Ronald Funk, Senior Independent Director, and Margaret Atkins, new Independent Director and Chair of the Audit Committee.
For all the coverage of cannabis companies by MarketWatch, click here.
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Diane Jang, who has been on the board since November 2017, has resigned as director.
"As Aurora continues to become one of the largest and most important cannabis companies in the world, it is important that our Board continues to review its membership to ensure that its experience and expertise match the strategic direction of the company, "said Singer.
CannTrust Holdings Inc.
TRST, + 1.14%
CNTTF, + 1.84%
Shares were stable after the Vaughan, Ontario-based company announced that its shares would start trading on the New York Stock Exchange next Monday. The shares will trade under the symbol "CNST".
Also: Canadian cannabis company Namaste slips after CEO dismissed for cause
Do not miss: The collapse of this cannabis stock offers a valuable lesson to every investor
At the same time, California has collected just $ 345 million in tax revenue from legal cannabis during its first full year of sales, according to data released Tuesday by the state. This is far less than the billion dollar expected by the state, a trend to blame for the continued strength of the black market and high taxes on the product.
The California Department of Taxation and Tax Administration announced $ 103.3 million in tax revenue in the fourth quarter, after a $ 100.8 million revision in the third quarter. The state raised $ 60.9 million in the first quarter and $ 80.2 million in the second quarter.
New Governor Gavin Newsom expects a 45% increase in tax revenue on cannabis over the next fiscal year, according to figures from the state budget draft released last week. Newsom, a staunch supporter of the legalization of adult recreational cannabis in the Golden State, is proposing to increase regulatory spending by 51% from $ 133 million a year last to 201 million dollars.
Elsewhere in the sector, Hexo Corp.'s US-listed shares, established in Quebec,
hexo, + 3.51%
hexo, + 3.60%
increased by 2.9%.
Read now: British researchers launch a trial of cannabis therapy for the treatment of Alzheimer's disease.
Cronos Group Inc.
CRON, + 2.59%
CRON, + 1.40%
shares rose 3.1%. Aleafia Health Inc.
ALEF, -0.84%
was down 1.3%
The ETFMG Alternative Harvest ETF
MJ + 1.35%
up 1.4% and Horizons Marijuana Life Sciences ETF
HMMJ, + 0.47%
was up 1.1%. The S & P 500
SPX, + 0.05%
and the Dow Jones Industrial Average
DJIA, + 0.01%
were slightly higher.
See also: Washington is getting closer to the establishment of protections for banks working with the pot industry
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