Competition Heats Up for Cannabis Companies During COVID-19
Toronto, Ontario--(Newsfile Corp. - April 28, 2020) - With cannabis being deemed an essential service, cannabis companies are poised for growth during the COVID-19 pandemic. A study from New Frontier Data found that 29% of cannabis consumers reported increasing their use since the start of the pandemic. Facing a cash crunch and supply chain issues, businesses are introducing innovative ways to keep up with demand and compete at this unprecedented time. Cannabis stocks making headlines this month include Harborside Inc. (CSE:HBOR), MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF), Canopy Growth Corporation (TSX:WEED, NYSE:CGC), Abacus Health Products, Inc. (CSE: ABCS, OTCQB: ABAHF), Charlotte's Web Holdings, Inc. (TSX:CWEB, OTCQX:CWBHF).
Harborside Inc ($HBOR), a California-focused, vertically integrated cannabis enterprise, announced preliminary unaudited results for its fiscal year ended December 31, 2019 ("Fiscal 2019"), and its first quarter ended March 31, 2020 ("First Quarter 2020"). Revenue for the year is expected to be up approximately 16% year-over-year to approximately $50.3 million adding to already healthy cash reserves. Retail strength was driven by higher sales activity at the two flagship Harborside stores in Oakland and San Jose , the two Oregon stores, as well as the revenues from the new store in Desert Hot Springs that opened in early December, which is one of only two California dispensaries with a licensed drive-thru operation.
Other cannabis companies optimizing operations due to COVID-19 include:
MedMen Enterprises Inc. ($MMEN, $MMNFF) Co-Founder and Chief Executive Officer decided to step down as Chief Executive Officer of the Company effective February 1, 2020 facing a cash crunch. Sierra Constellation Partners was recently announced as the interim management and advisory firm. MedMen isn't sure how the COVID-19 pandemic will impact its retail operations.
Canopy Growth Corporation ($WEED, $CGC) announced a series of global operational changes designed to further optimize production, better align supply and demand, and improve efficiencies in its global operations. As part of its ongoing strategic review of the business, the Company announced changes to its operations in Africa, Canada, Latin America, and the United States.
Charlotte's Web Holdings, Inc. ($CWEB, $CWBHF), the world's most trusted hemp extract and market leader in hemp-derived cannabidiol ("CBD") wellness products, and Abacus Health Products, Inc. ($ABCS, $ABAHF), a leader in over-the-counter ("OTC") topical products combining active pharmaceutical ingredients with hemp extract, announced they entered into an agreement to which Charlotte's Web proposes to acquire all of the issued and outstanding subordinate voting shares of Abacus. Abacus currently distributes over 50 SKUs through approximately 12,000 unique doors and 16,500 health-care practitioners. Combined with Charlotte's Web, the Transaction will reinforce Charlotte's Web's leading position in the CBD market, and substantially expand its existing topical offerings and presence in the key F/D/M channel.
About Plexus Media
Plexus Media is one of the leading investor marketing firms in North America. Since 2016, Plexus Media has been using data-driven, digital tactics to help pre-IPO and publicly-listed cannabis companies attract, engage, and nurture relations with shareholders and prospective retail investors.
For additional information on attracting potential retail investors to your cannabis company, visit plexus.media, or connect with us on social: LinkedIn, Twitter, Instagram, and YouTube.
For more information, please contact Kate Dorrell, Director of Marketing, Plexus Media.
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