Cannabis Stock Report: Insys Investigated, MJ Holdings Acquires Red Earth, Cannabis Science Launches New Site
Insys Under Investigation
An investigation is underway over alleged securities laws violations by Insys Therapeutics Inc. (NASDAQ:INSY). An investigating law firm is examining whether company statements were false or misleading.
Insys Therapeutics is a pharmaceutical company with a research focus on cannabinoids. In July the company announced the release of Syndros. It is a liquid formulation of the pharmaceutical cannabinoid dronabinol. The medication is FDA approved for use AIDS-associated anorexia and chemotherapy-related nausea.
DOJ authorities arrested founder and former CEO John Kapoor in late October. Charges ranged from RICO conspiracy to wire fraud. News of his arrest brought Insys stock tumbling over 50 percent from $9.95 per share to $4.10 per share.
MJ Holdings Acquires Red Earth
Bloomberg “Weed Index” member company MJ Holdings Inc. (OTCMKTS:MJNE) is looking to acquire Nevada-based company Red Earth LLC. The two companies entered into a definitive agreement which will close during Q4 of 2017.
MJ Holdings develops mobile apps and education opportunities in the medical cannabis space. Red Earth holds a provisional marijuana growers license in Las Vegas. The new company will install Red Earth manager Paris Balaouras as CEO and Chairman of the Board.
“This acquisition is a major milestone for MJ Holdings, as we seek to capitalize on the city’s agritourism industry,” Balaouras said. “with over 52 million annual visitors, Las Vegas is the perfect hub from which to build and develop brands and business extensions as legalized cannabis spreads to different states and countries”
Cannabis Science To Launch Patient Access Center
Cannabis Science, Inc. (OTC PINK: CBIS) announced the latest version of its online community the Patient Access Center (PAC). The information sharing site is available to cannabis industry professionals. It will be ready for launch next week.
Working with medical cannabis, Cannabis Science has struggled in the market this year. While the cannabis market could grow by 22 percent, Cannabis Science is down 50 percent for the year. Recent sell-offs of the company in the past few months are cause for concern in the industry.
“The development of our newest website will [allow] those suffering from ailments to connect with professionals and other patient members gaining instant access to information, knowledge, and data,” wrote a company spokesperson. “It will serve as an information center, resource hub, and support group for those seeking alternative cannabinoid treatments for various critical ailments.”
GB Sciences Inc. (OTCMKTS:GBLX) came out ahead in October, exceeding their gross revenue projections. The diversified company, which cultivates the plant as well as delves into biopharmaceutical research and development, noted that its operation was three pounds of yield per flower light. COO Kevin Kuethe remarked, “the combination of a state-of-the-art precision growing environment and having a dedicated and harmonious team operate that environment, enables us to consistently produce yields that are double the industry average.”
Corbus Pharma (NASDAQ:CRBP) ended yesterday up by 5.68 percent from the previous day’s close, with 409 shares having changed hands. A medical cannabis company, Corbus developed JBT-101, is a synthetic oral endocannabinoid-mimetic drug for inflammation and fibrosis. Many analysts are rating Corbus a “Buy” stock right now.
Canaccord Genuity raised its price objective on Canopy Growth Co. (TSE:WEED) from (CAD)$14.00 to (CAD)$17.00. There is currently a hold rating on Canopy. Canopy traded down this past Wednesday, losing (CAD)$1.50, ending the day at (CAD)$18.46.
News and Notes
Future Farm Technologies Inc. (CSE:FFT) (OTCQB:FFRMF) announced that it would close on a 120-acre industrial hemp farm in Amity, ME on November 28. The previously announced acquisition is part of Future Farm’s plans to position the company in both the hemp and cannabis markets. Future Farm’s continues to look to acquire more land in Maine to further its strategic goals.
Effective December 18 Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) is electing to convert the principal amount outstanding of a $75 million debenture into common shares of the company. "This conversion reflects our exceptional execution, and further strengthens our already very powerful financial position to execute on our aggressive domestic and international expansion strategy," CEO Terry Booth said. "We will be generating over $5 million in interest savings on an annual basis, while removing nearly $75 million in liabilities from our balance sheet."