5 Important Developments For The Cannabis Sector In The First Quarter

As we start the second quarter of 2023, we want to highlight 5 of the most important developments from the first quarter. We believe these developments provide an accurate reflection of where the industry is today and want our readers to be aware of them.

Curaleaf Shuts Down Operations In Major Cannabis Markets

In late January, Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the closing of most of its operations in California, Colorado, and Oregon. In March, Curaleaf announced that it’s shuttering its cannabis cultivation facility in Bellmawr, New Jersey, and will consolidate cannabis operations at its Winslow facility. The company also is consolidating cultivation and processing operations in Massachusetts to a single facility in Webster

Canopy Growth Closes Its Flagship Cultivation Facility

In February, Canopy Growth Corp. (Nasdaq: CGC) (TSX: WEED) closed its flagship cultivation facility in Smiths Falls, Ontario, and cutting more than a third of its workforce as part of a shift to an asset-light model in Canada. A company representative said the Canadian cannabis company is consolidating cultivation in Kelowna and Kincardine and we find this development to be significant.

Cardiol Therapeutics Reports Positive Results From A Study

A few weeks ago, Cardiol Therapeutics Inc. (Nasdaq: CRDL) (TSX: CRDL) announced study results from one of its international collaborating research centers. The results demonstrate that its pharmaceutically manufactured cannabidiol significantly prevents cardiac dysfunction and the development of fibrosis and cardiomyocyte hypertrophy in a pre-clinical model of heart failure. We consider the biotech vertical to be an important part of the cannabis sector and believe Cardiol is an undervalued business.

Trulieve Generates $1.2 Billion Of Revenue In 2022

In early March, Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL) announced fourth quarter financial results and we were impressed with the numbers. During the quarter, the US multi-state operator (MSO) generated $302 million of revenue. This brings total revenue for 2022 to more than $1.2 billion and we are bullish on this data point.

Jazz Pharmaceuticals’ Acquisition of GW Pharma Has Been Accretive

On March 1^st, Jazz Pharmaceuticals plc (Nasdaq: JAZZ) announced fourth quarter financial results. In 2021, the biotech firm acquired GW Pharmaceuticals and we are favorable on this asset. During the quarter, Epidiolex accounted for $207 million of net product sales ($736.4 million for the entire year) and we expect this number to increase on a going forward basis. So far the product has been launched in 5 major markets in Europe (United Kingdom, Germany, Italy, Spain and France). We are favorable on the enhanced distribution and will monitor this aspect of the business on a going forward basis.

If you are interested in learning more about the cannabis industry in the first quarter of 2023, please send an email to support@technical420.com with the subject “Most Important Cannabis Developments” to be added to our distribution list.

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This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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