The company behind Marlboro cigarettes told the market this week that it has a particular interest in the cannabis industry.
Meanwhile, a Canadian cannabis company confirmed an entry point for the US market via a stock uplisting on the NASDAQ.
Keep reading to find out more cannabis highlights from the past five days.
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Tobacco maker confirms interest in cannabis business
The cannabis industry received a new form of validation this past week after the multibillion dollar tobacco maker behind Marlboro cigarettes, Philip Morris International (NYSE:
PM
), signaled it is intrigued by the potential of entering the cannabis space.
Despite the admission of interest, the tobacco company stopped short of announcing any plans or potential strategy when it comes to a market entry.
“We are doing all this work and will determine one day what avenues to pursue,” Philip Morris CEO Andre Calantzopoulos
told Bloomberg News
. “But our priority is what we’re doing with our smoke-free products, and that’s where I would stay on cannabis.”
The cannabis space has seen support come in various forms from big-name tobacco and alcohol makers as vice industries set their eyes on a market that was
worth US$21 billion globally in 2020
.
Fellow tobacco company Altria Group (NYSE:
MO
)
holds an investment
in Canadian cannabis producer Cronos Group (NASDAQ:
CRON
,TSX:CRON), while British American Tobacco (BAT) (NYSE:
BTI
,LSE:BATS) recently
secured a product partnership
with Organigram Holdings (NASDAQ:
OGI
,TSX:OGI).
Valens gives investors critical update
The Valens Company (TSX:
VLNS
,OTCQX:VLNCF) treated its investors to a week of serious announcements. First off, the novel cannabis product manufacturer confirmed an entry into the US cannabidiol (CBD) market
by way of an acquisition
.
CEO Tyler Robson
said his firm examined over 100 US companies before making this decision. The overall transaction will be worth US$40 million, alongside US$20 million reserved for milestones reached.
Green Roads, the target of Valens’s acquisition, is a hemp-derived CBD producer based in Florida. It has products available across the US, including oils, edibles, soft gels, capsules, topicals and even coffee.
Valens said this deal will boost its product availability in the US and global markets alike. Targeting US revenues has become a need for cannabis companies as the entire country awaits for potential federal regulation changes that will improve the conditions of the current marketplace.
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Additionally, Valens told investors it has
submitted an application
to list its common shares on the NASDAQ, a significant move for any cannabis company.
“We believe that listing in the US will unlock various opportunities to enhance corporate visibility, increase liquidity and broaden overall awareness of The Valens Company to a larger investor base while driving value for our shareholders,” Valens President Jeff Fallows said.
Cannabis company news
-
PharmaCielo (TSXV:
PCLO
,OTCQX:PCLOF)
confirmed two initial shipments
of medical cannabis extracts to two Brazilian customers. Pharmacielo CEO Henning von Koss said this type of arrangement represents a vote of confidence in the sourcing of reliable, high-quality extracts and formulation expertise, which PharmaCielo intends to serve.
-
Fire & Flower Holdings (TSX:
FAF,
OTCQX:FFLWF)
issued its financial report
for the fourth fiscal quarter of 2020 alongside the entire year-end period. For the entire fiscal year, the firm reported a net loss represented to investors at C$0.45 per basic share. However, the firm also highlighted a 150 percent increase in revenue for the year and discussed its future US expansion plans.
-
The Green Organic Dutchman Holdings (TSX:
TGOD
,OTCQX:TGODF)
took the time
to update investors on a variety of topics, including bids coming in for its Valleyfield facility as a way to monetize its assets. Additionally, the firm said it is looking to form partnerships or acquisitions in the US in the way of eventual reform.
-
Ascend Wellness Holdings
released the details
of its upcoming US$80 million public offering, which will close on May 4, the same day the firm expects to launch on the Canadian Securities Exchange. The company is a vertically integrated operator of US cannabis assets in Illinois, Michigan, Ohio, Massachusetts and New Jersey.
Don’t forget to follow us
@INN_Cannabis
for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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