Marijuana News Today: U.S. Marijuana Legalization Expands, HEXO S…

admin March 15, 2019 Under $10 Leave a comment 650 Views

Marijuana News Today

The marijuana news today is a little bit of a downer compared to yesterday, with many pot stocks falling in early-morning trading. U.S. marijuana legalization, however, continues to expand while HEXO stock climbs following a very positive quarterly report.

U.S. marijuana legalization scored another—albeit somewhat minor—victory today as Alaska is set to become the first state to allow on-site marijuana use. (Source: “Alaska poised to let people use marijuana at certain stores,” BNN Bloomberg, March 13, 2019.)

While not as industry-shaping as legalization legislation being passed, this is a positive move for marijuana legalization in the U.S.

After all, the best-case scenario for pot is one where it is treated much like alcohol. That means being allowed to consume cannabis products outside your home. This would, naturally, provide more opportunities for consumers to purchase marijuana products and lead to higher sales as a result.

Not to mention that it would also be another opportunity for branding as marijuana producers could open up their own marijuana storefronts with a variety of pot products on offer to be consumed in-house.

This could even be a huge boon to tourism. To see this model in action, look to the Netherlands with its “coffee shops” where marijuana can be bought and consumed on the spot.

While yesterday’s announcement that New Jersey was edging closer to marijuana legalization was far more impactful, this is still a win for the marijuana industry.

The more permissive and open the laws become, the better it will be for pot sales in the long run. If this model proves successful in Alaska, other states may follow. Furthermore, it provides guidance for potential federal legislation in the future.

So while marijuana stocks may not be dancing in the streets following the news, this move could still have a big impact moving forward.

HEXO Stock

Perhaps the biggest headline in the marijuana news today is the Hexo Corp (NYSEAMERICAN:HEXO) quarterly report.

As I’ve predicted, these quarterly reports are likely to help boost pot stocks for several quarters to come as massive growth in sales is expected due to the maturation of the legal Canadian marijuana market. HEXO stock is backing up my projections today.

HEXO stock leaped by about 3.5% in early-morning trading today, while the company has gained an impressive 16% over the past five days.

Today’s gains, of course, are being supported by its very strong quarterly report.

Gross revenue increased 1,269% versus the same period last year and increased 144% from the previous quarter. This massive sales increases.

The company produced 4,938 kilograms ( about 10,886 pounds) of dried cannabis in the quarter, an increase of 39% over the previous quarter, with 2,689 kilograms (about 5,928 pounds) of that being sold in the quarter, an increase of 142% from the last financial report.

“This is an exciting time for HEXO as we continue to achieve milestones on the way to becoming a top two cannabis company,” said Hexo CEO Sebastien St-Louis in a statement. (Source: “HEXO reports over $16.2 million in total gross revenue in the second quarter of fiscal 2019,” Globe Newswire, March 14, 2019.)

The quarterly report caps a very busy week for Hexo; yesterday, it announced its acquisition of Newstrike Brands Ltd (OTCMKTS:NWKRF, CVE:HIP).

The deal will see Hexo Corp’s production capacity expand while also putting it firmly in eight Canadian provinces. (Source: “HEXO Corp to acquire Newstrike Brands Ltd.,” Globe Newswire, March 13, 2019.)

Overall, it’s been a very strong week for one of my favorite marijuana penny stocks.

HEXO stock continues to make savvy business moves. The strength of the company is reflected in its quarterly report, combining solid fundamentals with huge potential to make it one of the stronger pot stocks currently available.

ACB Stock

The big news yesterday was that Aurora Cannabis Inc (NYSE:ACB) hired activist billionaire investor Nelson Peltz as an advisor, with the company seeing big gains. Today, however, the company has seen its fortunes turn.

ACB stock fell two percent in early-morning trading today, but is up significantly over the past five days, with gains of nearly 17%.

Much of these gains were the result of adding Peltz, a renowned Wall Street figure respected for his investment strategies.

Peltz will “work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments,” said Aurora Cannabis in a press release. (Source: “Aurora Cannabis up 15% after billionaire activist investor Nelson Peltz is hired as an advisor,” CNBC, March 12, 2019.)

“I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals,” said Peltz.

While there was a bit of a pullback on the stock today, having Peltz around will undoubtedly add legitimacy to the company in the eyes of Wall Street traders. That will no doubt lead to more capital flowing in as time goes on.

Furthermore, Peltz could be a very valuable member of the Aurora team as he has a deep knowledge of how Wall Street works. If used correctly, that could help improve ACB stock’s prospects moving forward.

Overall, it has been a very strong week for Aurora Cannabis stock, today’s dip notwithstanding.