4 Important Things that Happened in the Cannabis Sector This Week

A few notable names this week and an important newcomer to watch.

Hexo Corp. Sees Sequential Decline

Hexo Corp’s HEXO net revenue for the cannabis producer declined slightly to C$13.02 million ($9.8 million) in the fiscal third quarter, versus $13.4 million in the fiscal second quarter, Which contrasts strongly from Canadian competitors like Aurora and Canopy Growth both of whom have seen sequential growth. On the bright side, the company increased the amount of adult-recreational pot sold by 9% to 2,700 kilograms. Hexo also said that it increased its cannabis production by 98% from the previous quarter to a total of 9,800 kilograms.

“The past five years have seen the cannabis industry landscape, and our company, evolve significantly,” said HEXO CEO and co-founder Sebastien St-Louis. “This evolution continues at a staggering pace, as HEXO ramps up production effort and significantly increases its inventory, further contributing to our capacity to meet the demand and to reach our sales and revenue targets. Our Innovation, Development and Engineering team has grown significantly ahead of the legalization of edibles and now includes 25 professionals with PhDs and extensive experience in major consumer packaged goods companies

GreenGrowth Brands and CBD are coming to a mall near you

Green Growth Brands Inc. GGBXF will soon be opening 70 CBD shops into Brookfield owned malls and properties. This gives GGBXF 280 retails locations across the United States, but being in mass market shopping malls is a gamechanger for the company.

“Curation of our shopping centers is fundamental to our ongoing evolution,” said Sandeep Mathrani, CEO of Brookfield Properties’ retail group and Vice Chairman of Brookfield Property Group. “It is our job to bring in retail offerings and experiences that today’s consumer desires and this includes GGB’s CBD products. GGB is at the forefront of this trend and we are pleased they will expand their reach within our portfolio.”

The company is well known for its Seventh Sense Shops, but Green Growth will also be expanding to include a female-focused brand of wellness products called Green Lily.

Vertical Co. Charges into the cannabis spotlight

Running the company like a beverage company, Vertical Co. made a splash this week when they acquired UMBRLA, Inc., a holding company that gives the company a combined portfolio of brands including Instant CBD Strips (InstantCBD); Trees by Game, the brand associated with West Coast rapper The Game; Taos; JSLV (Just Live CBD products); Kaviar; Evergreen Organix; and Nanosphere Evolve.

In California, Vertical will be able to service 300 in-network dispensaries with a combined indoor and outdoor cultivation power. The indoor facility is part of Vertical’s own 29-acre campus and the outdoor facility in Santa Barbara has 575 acres. In Arizona, the company has a 52,000 square foot cultivation and extraction facility, while in Ohio, it has a 9,000 square foot facility. All told, the company has gathered together strong brands and can count 700 stores in their distribution network.

California’s best-selling luxury brand is becoming a multi-state brand

Canndescent is the Golden State’s top-selling flower brand and now it will march into Nevada, Michigan and Massachusetts. This is the first brand to cross state lines and the company feels strongly that if it can compete and win in California, it can do so in othe markets.