Cannabis Stocks: The Fight to Turn it Around (ORHOF, CVSI, CURLF)

CannaRoyalty Corp (OTCMKTS:ORHOF) has been a battle for bottom-pickers. With shares back testing recent lows, that battle is only going to get more interesting for the rest of the week. But the stock is not without fresh catalysts.

For example, ORHOF just announced that it has achieved full integration with the California Cannabis Track-and-Trace system at each of its six licensed facilities in the state.

According to the release, “the CCTT system, developed by software vendor, Metrc, uses RFID-enabled tags to track cannabis products through every stage of the supply chain, from seed to retail sale. Once deployed statewide, the program will give both regulators and licensees greatly improved visibility into the movement of cannabis goods in California, while making it harder for black-market goods to reach consumers.”

CannaRoyalty Corp (OTCMKTS:ORHOF) trumpets itself as a private equity firm specializing in acquisitions. The firm invests in the legal cannabis sector with a focus on research and intellectual property, consumer brands, and industry infrastructure. It seeks to invest in the United States and Canada. CannaRoyalty Corp. is headquartered in Ottawa, Canada.

Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. The Company’s foundation is in California, the world’s largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries.

Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke.

The stock has suffered a bit of late, with shares of ORHOF taking a hit in recent action, down about -19% over the past week. Moreover, the listing has seen interest climb, with an increase in recent trading volume of 65% over what the stock has registered over the longer term.

“Our team has long supported CCTT-Metrc as a cornerstone of California’s regulatory and consumer-protection strategies,” said Lee Dorkin, Head of California Operations at Origin House. “We are proud to be among the first vertically-integrated operators to complete deployment of the system at such a large scale. Our success in doing so reaffirms Origin House’s commitment to being an industry leader in compliance and product quality.”

CannaRoyalty Corp (OTCMKTS:ORHOF) managed to rope in revenues totaling $16M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 487.5%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($17.6M against $48.1M, respectively).

 

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CV Sciences Inc (OTCMKTS:CVSI)
continues to search for a sustainable bid despite the fact that, even after the recent bearish trend, the company continues to sit in a relatively strong position in the booming CBD space. To help flesh out the story, the company just announced the appointment of Dr. Paul Blake to its Board of Directors effective October 21, 2019.

“We are very pleased to have Dr. Blake join our Board of Directors,” said Joseph Dowling, Chief Executive Officer of CV Sciences. “His decades of experience leading pharmaceutical companies will be invaluable to us as we continue to strengthen our industry leadership position in CBD consumer products and drug development.”

CV Sciences Inc (OTCMKTS:CVSI) focuses on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (CBD).

CVSI operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division in manufacturing, marketing and selling plant-based CBD products to a range of market sectors, including nutraceutical, beauty care, specialty foods, and vape.

Following the CanX Acquisition in December 2015, CV Sciences commenced its preclinical drug development program during the second quarter of 2016. The Company’s drug development efforts include pursuing synthetic-based Cannabidiol drug candidates in areas that have the potential to provide significant improvements in therapeutic patient treatments with sizable addressable markets.

The company was formerly known as CannaVEST Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.

CV Sciences Inc is led by Michael J. Mona, JR. founder of CV Sciences, Mr. Mona possesses over 30 years of senior management experience in a range of industries including real estate/construction, industrial farming, chemical processing and consumer products. Mr. Mona is a recognized industry leader in hemp farming operations and chemical extraction and has established a global supply chain of hemp-derived products.

According to the release, Dr. Blake brings with him deep expertise in clinical research, development, and medical affairs within the pharmaceutical industry. He currently serves as Chief Medical Officer at Heron Therapeutics Inc., a commercial-stage biotechnology company focused on improving the lives of patients suffering from pain or cancer by developing best-in-class treatments. At Heron, Dr. Blake is responsible for clinical research, medical affairs and drug safety.

We’ve witnessed 33% piled on for shareholders of the name during the trailing three weeks. In addition, the company has benefitted from a jump in recent trading volume to the tune of 22% beyond its prior sustained average level.

“I am excited to join CV Sciences’ Board of Directors and to contribute to the Company’s mission of providing the highest-quality CBD products to consumers and patients,” said Dr. Blake. “CV Sciences is a leading pioneer in the CBD space and is uniquely positioned to continue to bring innovative products and novel therapeutics utilizing CBD to market.”It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

CV Sciences Inc (OTCMKTS:CVSI) generated sales of $16.9M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 13% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($15.7M against $11.8M).

 

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Curaleaf Holdings Inc (OTCMKTS:CURLF)
is facing a difficult test to frame coming action, with shares now down testing a possible double bottom following a period of relative strength when compared to peers in the cannabis space. As we move to test the pattern downside extreme, the company just announced that its core shareholders representing approximately 75% of the issued and outstanding shares of the Company have entered into an amended and extended lock-up agreement.

According to the release, “Since the Company’s reverse takeover transaction in October 2018, all shareholders holding individually more than 1% of the issued and outstanding shares have been subject to lock-up agreements. The core shareholders have voluntarily agreed to an extended lock-up release schedule, which limits the number of shares released as of today to 15% of previously locked-up shares. Going forward, an additional 15% of the locked-up shares will unlock on the last day of each subsequent calendar quarter, with the final 10% to unlock on March 31, 2021.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States.

The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf, Inc. operates 30 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action CURLF shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -12% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Furthermore, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 22% over the long run average.

Executive Chairman Boris Jordan commented, “The extension of the lock up agreements by Curaleaf’s core shareholders signals their ongoing support for the Company. We expect the new lock-up release schedule to reduce uncertainty regarding the release of currently locked-up shares and provide for a more orderly increase in the available float in the Company’s shares. Nevertheless, the core shareholders have all expressed their current intention not to sell any shares despite the partial release from lock up. As announced on October 3, I myself recently increased my shareholding.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $64.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 0%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($140.3M against $64.1M).

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