Jun 16, 2022 Stéphanie Bédard-Châteauneuf

Thailand Becomes First Asian Country to Legalize Marijuana

 

Thailand made headlines last week when it became the first country in Asia to decriminalize marijuana, making it legal to grow and sell or use for medicinal reasons. Thai Health Minister Anutin Charnvirakul expects legal cannabis production to boost the economy, but warned that recreational cannabis use remains illegal. The public health minister also launched a plan to distribute 1 million marijuana seedlings with a THC level below 0.2% to households across Thailand for medicinal purposes. Cannabis decriminalization in Thailand opens up a new market for cannabis companies like Flora Growth Corp. (NASDAQ:FLGC), OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX:OGI), Cronos Group (NASDAQ:CRON) (TSX:CRON), Canopy Growth Corp. (TSX:WEED) (NASDAQ:CGC), and Zynerba Pharmaceuticals (NASDAQ:ZYNE).

Flora Growth Corp. (NASDAQ:FLGC) is a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands that operates one of the largest outdoor cannabis cultivation facilities.

On June 16, Flora Growth announced a new share repurchase program. The company’s board of directors has authorized the repurchase of up to $5 million of its outstanding common shares as market conditions and Flora’s liquidity mandate. The repurchase program will help to increase Flora’s share price, creating value for shareholders by boosting demand for a company’s stock . 

“We believe that the potential to repurchase our shares at these levels represents a compelling opportunity to deploy available cash to drive shareholder value,” said Luis Merchan, Flora Growth’s Chairman and CEO. “The repurchase program affords us the opportunity to increase our ownership in our portfolio of high-quality brands through our shares, which in our view are trading well below NAV.”

On May 23, Flora Growth announced that it has reached an agreement with leading cell biologist, Dr. Annabelle Manalo-Morgan, Ph.D., to acquire her Masaya brand, as well as her patent-pending CBD formulations. Created by Dr. Annabelle and backed by her research, Masaya’s pure and potent CBD oil formulations are 100% THC-free. They have a long list of positive testimonials collected over years of use. Flora intends to distribute the brand and its formulations worldwide.

Masaya will become a Flora-owned brand sold in the United States and will be Flora Life Sciences’ first offering. In addition, the original patent-pending formulation, Masaya Pure, is expected to be used in Flora‘s current clinical trials with the University of Manchester in the UK. The formulation is also being registered with the Colombian regulatory agency, INVIMA, as one of the first steps for distribution beyond the United States.

Flora’s Chairman and CEO Luis Merchan said: “We are excited to announce the acquisition of Masaya. The brand’s formulation was developed by Dr. Annabelle for her son and has since been used by thousands of consumers. Amplifying Dr. Annabelle and her son’s beautiful story and improving the well-being of people around the world is our aim. This acquisition allows us to deliver on our promise to invest in safe, thorough, cutting-edge scientific research that can bring meaningful change via an efficacious and accessible product offering for people worldwide.”

On May 18, Flora Growth announced a partnership between the company’s cannabis accessories brand, Vessel, and Highsman, a cannabis lifestyle brand grounded in an appreciation for greatness founded by the former NFL running back Ricky Williams.

To kick off the partnership, the former NFL star collaborated with Team Vessel to create a custom Helix one-hitter prop designed by Highsman. The Highsman Helix showcases both brands’ appreciation for elite performance and the cannabis plant. Precision crafted from pure, non-toxic brass, the patent-pending dual helix design provides the perfect combination of filtering and cooling for a truly unique user experience.

For more information about Flora Growth Corp. (NASDAQ:FLGC), click here. 

Cannabis Companies Report Quarterly Results

OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) provided a corporate update on March 25. The company earned the third market share position among Canadian licensed producers for the second consecutive month. In addition, it maintained its No. 1 position in terms of market share in dried flowers. In December 2021, the company acquired Quebec-based Laurentian Holdings Inc. The two business leaders are working together for a successful integration across all departments, including human resources, sales, R&D, operations, marketing and finance. This integration supports the synergies identified during the acquisition. Due to the popularity of its flagship Edison brand, OrganiGram has launched two new premium dried flower strains: Edison Kush Cakes and Edison Frozen Lemons. In the second quarter, the company achieved positive Adjusted EBITDA two quarters ahead of schedule, driven by record net sales of $31.8 million.

Cronos Group (NASDAQ:CRON) (TSX:CRON) posted net revenue of $25 million in the first quarter of 2022, an increase of $12.4 million compared to the first quarter of 2021. The year-over-year increase was primarily due to an increase of net sales in the Rest of the World segment, driven by the growth of the Israeli medical market and the Canadian adult-use market. Adjusted EBITDA of ($18.9) million in Q1 2022 improved by $17.7 million compared to Q1 2021. The year-over-year improvement was primarily due to improved gross profit and lower sales and marketing and R&D expenses. In the first quarter, Cronos Group launched a strategic plan to realign the business around its brands, centralize functions and assess the company’s supply chain. The organizational and cost reduction initiatives undertaken aim to better position Cronos Group to generate profitable and sustainable growth over time.

On May 27, Canopy Growth Corp. (TSX:WEED) (NASDAQ:CGC) reported its financial results for the fourth quarter and fiscal year ended March 31, 2022. The company advanced its premier North American brand strategy with Canopy Growth considering the acquisition of Wana Brands, North America’s #1 edible cannabis brand, and Jetty Extracts, a top 10 cannabis brand in California, adding to the strong brand portfolio. As a result of business transition activities, the company generated net revenue of $520 million in fiscal 2022, down 5% from fiscal 2021. Through restructuring actions previously announced on April 26, 2022, management expects to generate COGS savings of $30-50 million and general and administrative expense reductions of $70-100 million, both in a period of 12 to 18 months.

Zynerba Pharmaceuticals (NASDAQ:ZYNE) reported R&D expenses of $5.1 million for the first quarter of 2022, including stock-based compensation of $0.5 million. General and administrative expenses were $3.8 million in the first quarter of 2022, including stock-based compensation expenses of $0.6 million. Net loss for the first quarter of 2022 was $8.5 million, with a basic and diluted loss per share of ($0.21). The company continues to expect top results from RECONNECT, a pivotal confirmatory Phase 3 trial of Zygel in patients with Fragile X syndrome (FXS), in the second half of 2023. Zynerba believes that results from RECONNECT, if positive, will be sufficient to support the submission of a New Drug Application (NDA) for Zygel in patients with FXS.

Flora Growth Corp. recently appointed regulatory veteran Holly Bell as Vice President of Regulatory Affairs. Bell will play a key role in Flora’s national and global expansion strategy and will lead government relations in key international markets.

See How Flora Growth Could Disrupt More Than Just The Cannabis Industry! Click Here to Download the Corporate Presentation!

Please See Disclaimer

Featured Image: DepositPhotos @ Ahfoto.mail.ru

STOCKS YOU MAY LIKE


Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of and sponsored by, Flora Growth Corp. Market Jar Media Inc. has or expects to receive from Flora Growth Corp’s Digital Marketing Agency of Record (Native Ads Inc.) one hundred ninety one thousand eight hundred USD for 24 days (18 business days).

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on MicroSmallCap.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on MicroSmallCap.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.

6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management's expectations regarding Flora Growth Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Flora Growth Corp.’s industry; (b) market opportunity; (c) Flora Growth Corp.’s business plans and strategies; (d) services that Flora Growth Corp. intends to offer; (e) Flora Growth Corp.’s milestone projections and targets; (f) Flora Growth Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Flora Growth Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Flora Growth Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Flora Growth Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Flora Growth Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Flora Growth Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Flora Growth Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Flora Growth Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Flora Growth Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Flora Growth Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Flora Growth Corp.’s business operations (e) Flora Growth Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Flora Growth Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Flora Growth Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Flora Growth Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Flora Growth Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Flora Growth Corp. or such entities and are not necessarily indicative of future performance of Flora Growth Corp. or such entities.