Cannabis Weekly Round-Up: New Jersey Begins Recreational Sales, HEXO to Shut Facility
New Jersey opened its doors to adult-use cannabis sales by way of permits for 13 dispensaries.
Meanwhile, a big-name Canadian cannabis producer announced that it will close the doors of a facility in Ontario, a move that will affect more than 200 workers.
Keep reading to find out more cannabis highlights from the past five days.
Garden State finally launches recreational sales
This past Thursday (April 21), New Jersey consumers 21 and older were able to legally buy recreational cannabis for the first time. The rule change came a day after the cannabis celebration known as 420.
A total of 13 dispensaries are now allowed to sell the adult-use items. “Today is the start of an entirely new industry in our state,” New Jersey Governor Phil Murphy said in front of a dispensary on opening day, according to a Marijuana Moment report.
Publicly traded cannabis companies took the opportunity to share various announcements in support of the rule change, which now makes New Jersey one of 18 states to allow adult-use sales.
“The launch of New Jersey’s adult-use marketplace is a major step forward for the cannabis industry,” Joe Bayern, CEO of Curaleaf (CSE:CURA,OTCQX:CURLF), said in a statement.
According to a report from Reuters, the following operators are related to the 13 dispensaries now allowed to sell recreational cannabis:
- Ascend Wellness Holdings (CSE:AAWH.U,OTCQX:AAWH)
- Columbia Care (NEO:CCHW,CSE:CCHW,OTCQX:CCHWF)
- Acreage Holdings (CSE:ACRG.A.U,OTCQX:ACRHF)
- Green Thumb Industries (CSE:GTII,OTCQX:GTBIF)
- Curaleaf Holdings
- Terrascend (CSE:TER,OTCQX:TRSSF)
- Verano Holdings (CSE:VRNO,OTCQX:VRNOF)
“New Jersey is the first of the next wave of east coast states to launch adult use, and we are excited to grow and evolve alongside new social equity entrepreneurs who will help make this local industry a success,” Nicholas Vita, CEO of Columbia Care, said in a release from the company.
HEXO closes Ontario facility in attempt to cut operational costs
Quebec-based HEXO (NASDAQ:HEXO,TSX:HEXO) indicated that its Belleville, Ontario, cannabis facility will cease operations as the company continues to pursue cost-cutting measures.
According to the firm, the closure will impact 230 workers and will be completed by the end of July.
“This is a critical next step for HEXO as we continue to make strides towards becoming cash flow positive from operations,” Charlie Bowman, HEXO’s acting chief operating officer, said.
The interim executive added that the Belleville closure was selected as the company can use other facilities.
Shares of HEXO dropped by 3.45 percent on the same day the company confirmed the Belleville closure. At the end of the trading session, shares in Toronto were valued at C$0.56.
In a recent interview with the Investing News Network, Charles Taerk, president and CEO of Faircourt Asset Management, was critical of Canadian producers’ recent business decisions and warned investors about HEXO.
“HEXO was once one of the top four or five companies in the country … and now that has all come crashing down for various reasons,” Taerk said. “HEXO is running out of time.”
Cannabis company news
- Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWF)confirmed that an indirect wholly owned subsidiary of Alimentation Couche-Tard (TSX:ATD) will exercise warrants to acquire over 8.2 million shares of the cannabis retailer.
- High Tide (NASDAQ:HITI,TSXV:HITI)will sign up to a C$30 million credit facility over an initial five year period in a deal with Connect First Credit Union. The deal is being done to replace the company’s existing credit facility with a bank.
- Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT)launched a new lineup of adult-use cannabis products for the Ontario market under its Mood Ring brand. “With this launch we’re adding more variety to the brand in the form of pre-rolls, flower and vapes,” the company said.
- Delta 9 Cannabis (TSX:DN,OTCQX:DLTNF)plans to launch a mobile cannabis store in Manitoba as part of an upcoming music festival. The store will be constructed on a trailer.
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.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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