IPOs Heat Up and 13 Stories from New Cannabis Ventures

This is a copy of the September 9th edition of our weekly Newsletter, which we have been publishing since October, 2015.


One of the big stories this year has been the emergence of highly successful initial public offerings (IPOs). Most of the new issues in the cannabis sector over the past several years have been reverse-mergers, where a cannabis company has merged into another company that is already trading publicly but typically not engaged in any commercial activities. Make no mistake, this can be a very successful go-to-market strategy. Canopy Growth, for instance, went public this way, and look at it now.

It was less than two years ago that we saw the first true IPOs. Innovative Industrial Properties went public in November 2016 on the NYSE at $20 and moved below $15 in the first days of trading. CanniMed went public at C$12 near the end of 2016 (who goes public between Christmas and New Year’s?) and fell below C$8 six months later. MedReleaf went public in June 2017 and immediately fell below the IPO price of C$9.50. apparently the “worst IPO in Canadian history.” Not to worry, as all three of these pioneers succeeded despite the initial challenges, with IIPR more than doubling in price and CanniMed and MedReleaf acquired by Aurora Cannabis at substantial premiums to their IPO prices.

This year, we have seen nothing but successful IPOs, including Green Organic Dutchman on the TSX and, more recently, Inner Spirit Holdings and Charlotte’s Web on the CSE. Of course, the Tilray NASDAQ IPO has been nothing short of phenomenal, with the stock, priced at $17, trading as high as $98 this week, less than 45 days since the debut. Many companies going the more traditional reverse-merger route have fared well too, including recent new issues MedMen and  especially Green Thumb Industries, both of which sport relatively large market caps within the U.S. multi-state operator sector and robust trading volumes, with each company doing bought deals at prices higher than their go-public transactions.

Not surprisingly, we are seeing the calendar of new issues, including IPOs and reverse-mergers, start to build. In order to help our readers stay on top of these developments, we introduced the Cannabis Stock IPOs and New Issues Tracker this week, which is professionally managed by New Cannabis Ventures. We currently include 17 companies on the path to trading publicly, with a good mixture of U.S. and Canadian companies in both the direct and ancillary parts of the industry. We hope that you find this free service useful and look forward to providing exciting updates.

With revenue in excess of $30 million in the first half of 2018, Charlotte’s Web, which just went public in Canada through an IPO, is capitalizing on the robust demand for CBD products. The stock currently trades solely in Canada, but we expect it to have a U.S. stock symbol shortly.

To learn more about Charlotte’s Web Holdings, visit the company’s Investor Dashboard that we maintain on its behalf, click the blue Follow Company button in order to stay up to date with their progress.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers.

View the Public Cannabis Company Revenue Tracker, which ranks the top revenue producing cannabis stocks that generate industry sales of more than $2.5m per quarter.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Consider subscribing to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013 for more in-depth information and market intelligence about the publicly traded cannabis sector.

Discover your place in the cannabis industry by visiting our Careers and Jobs Page and learn which companies are hiring aggressively.


Alan & Joel

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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