The worldwide pandemic and following lockdowns impacted nearly each sector of the economic system. And the Canadian hashish business was no exception.

Grownup-use hashish retail gross sales within the nation skilled sequential progress of barely 4% within the first quarter of 2021, in comparison with the 12% surge seen in This fall 2020, and 31% in Q3 2020. This growth, nonetheless, may solely be “partly defined by the COVID lockdown,” in keeping with Cantor Fitzgerald’s analyst Pablo Zuanic.  

The Thesis

With the Q1 earnings season approaching, some could count on it to have a constructive affect on hashish operators. However the analyst doubts it. In truth, he notes, the Canadian Marijuana Index has fallen by 50% since its February peak. Throughout the identical interval, the U.S. Marijuana Index dropped by 33%, whereas the AdvisorShares Pure US Hashish ETF (NYSE: MSOS) solely misplaced 23% of its worth.

The drop within

In every week the place total markets traded up, hashish shares had been within the crimson, regardless of a collection of massive information, M&A and financing bulletins.

Particular goal acquisition firm Mercer Park Model Acquisition Corp. (NEO:BRND.A.U) (OTCQX:MRCQF) will purchase vertically built-in California hashish operator Glass Home Group for $567 million.

The deal implies a $1.024-billion fairness valuation and an approximate enterprise valuation of $691 million.

Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) bought European operator EMMAC Life Sciences. The U.S.-based firm agreed to pay $50 million in money and 17.5 million in inventory — value roughly $260 million.

As well as, Curaleaf teamed up with an institutional investor to safe $130 million in financing for additional enlargement of Curaleaf Worldwide.

In the meantime, Cover Development Company (TSX:WEED) (NASDAQ:CGC) introduced it’ll purchase The Supreme Hashish Firm, Inc. (TSX:FIRE) (OTCQX:SPRWF) for about CA$435 million ($345.7 million).

The deal follows Cover Development’s buy final

Normal Motors Co (NYSE: GM) and Ford Motor Co (NYSE: F) mentioned on Thursday they are going to quickly shut down extra North American factories as the continuing semiconductor chip scarcity, which has been hitting manufacturing for automakers throughout from Detroit to Tokyo, worsens, The Washington Put up stories.

What Occurred: In accordance with the report, GM will halt manufacturing strains in Spring Hill, Tennessee; Delta Township, Michigan; and Ramos Arizpe, Mexico for 1-2 weeks. The automaker can also be extending shutdowns that started in February and March at factories in Lansing, Michigan; Kansas Metropolis, Kansas; and Ingersoll, Ontario. 

Ford plans to quickly halt manufacturing strains subsequent week in Chicago, Illinois; Kansas Metropolis, Missouri; and Flat Rock, Michigan, and reduce manufacturing in Avon Lake, Ohio.

The non permanent manufacturing halt at numerous GM vegetation, which make the Cadillacs, Buicks amongst different automobiles, will have an effect on 10,000 GM employees.