Stocks Soar for Cannabis Companies

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Thursday, July 2, 2020

One of the freedoms North Americans enjoy, as they celebrate their respective national holidays, is the right to sample recreational marijuana, a right they obtained only recently. 

Health-care shares in general celebrated; in New York, growth was pegged at 1% at noon EDT, on the TSX, the jump was but 0.3%. 

Miami-based Bhang Inc. (OTC: BHNGF), a global cannabis CPG brand company with an award-winning portfolio of products, has announced its 2019 financial results.

To hear CEO Jamie Pearson tell it, "2019 was a transformative year for Bhang. We made the tough decision at the end of Q4 to change course and return Bhang to our core strength of being the world's best premium cannabis chocolate company," 

Pearson continued, "The strategy has delivered immediate and impressive results. We developed and are currently executing a plan to expand Bhang's footprint, we completed a packaging refresh that is winning rave reviews, and the team is energized in our focus of delivering bottom line results while growing revenue. Returning to fundamentals has provided an exceptional platform for accelerated growth in 2020."

BHNGF shares skyrocketed two cents, or 33.3%, to eight cents, on volume of 104,000 shares. 

North of the border, Toronto-headquartered WeedMD Inc. (TSX-Venture:WMD)  confirmed signing an amendment to its senior secured credit facility dating back to March of last year. The Credit Agreement Amendment modifies the terms of the Credit Facility under which WeedMD secured up to $39 million of debt financing over a three-year term ending in 2022.

Under the terms of the Credit Agreement Amendment, the Company secured a deferral of its financial covenants by 12 months to June 30, 2021, and quarterly principal repayments have been rescheduled to commence in the first quarter of 2021. In addition, the Company has agreed to a 50-basis-point increase in the applicable interest rate margin on the Credit Facility.

WMD shares moved into early afternoon trading on Thursday up 1.5 cents, or 3.1% -- not exactly the explosive growth worthy of the Fourth of July - but still positive, to 50 cents, on 46,000 shares. 

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