What to expect when you're expecting Cronos' Q1 results
Toronto-based cannabis producer Cronos Group reports its first-quarter results early Friday, when investors will learn for the first time how the company's rollout of Cannabis 2.0 products has fared. Analysts polled by Bloomberg expect Cronos to report US$8.75 million in revenue during the quarter, while posting an adjusted loss of US$19.7 million. The company recently paused its rollout of CBD products in the U.S., and analysts also expect to get more details on how Cronos plans to use the US$1.5 billion in cash it has on its balance sheet.
Aleafia subsidiary applies for EU-GMP certification in Germany
Aleafia Health is looking to expand its operations by means of a key European certification. The company's Emblem Health subsidiary applied to the German government for EU-GMP certification tied to a facility in Paris, Ont. Aleafia owns 60 per cent of Emblem's German business, with pharmaceutical wholesaler and logistics company Acnos Pharma owning the remaining stake. Aleafia is the latest company seeking EU-GMP compliance for its facilities, with Aphria and Flowr among a handful of Canadian pot producers who have already received their compliance certification to export cannabis to Europe.
Cannabis deals continue to thaw as Linton-led group boosts total financing
Cannabis industry financing activity continues to thaw following a chilly start to the year. Viridian Capital Advisors said that capital activity in the week ending May 1 was higher than the same period a year earlier, the first time that has occurred this year. The investment firm recorded 10 transactions made where US$171.2 million was raised, compared to 14 deals worth $82.9 million in the same period in 2019. Much of the capital came from the $150 million raised by Collective Growth Group, a SPAC (special purpose acquisition company) led by former Canopy Growth Co-CEO Bruce Linton. To date this year, there has been 111 equity deals announced by cannabis companies raising a total of US$2.05 billion in financing, according to Viridian.
African nations emerge as hemp players as restrictions begin to loosen
Although some global cannabis players are pressing pause on developing their African assets, other companies continue to seek opportunities in the continent. The Economist reports that Industrial Hemp, a Ugandan cannabis company, is exporting medical-grade CBD to Israel, while another producer in Zimbabwe is growing the country's first legal hemp crop. African countries are becoming increasingly attracted to cannabis cultivation with Ghana and Malawi recently loosening restrictions on growing the plant, the weekly magazine reports. However, the push for legalization will likely be limited to hemp with only South Africa allowing their residents to consume recreational cannabis without penalty.
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