Could investors be getting back on the cannabis train again? One public markets expert thinks so — however, investors in the space can no longer be pinned down to one category.

In an interview with the Investing News Network, Nawan Butt, portfolio manager with Purpose Investments, said despite the lingering effects of the pandemic, the fatigue surrounding cannabis investments is starting to dwindle thanks to newfound stability in the space.

But overall investor sentiment is much harder to establish for cannabis these days since, according to Butt, the profile of a cannabis shareholder is much more varied than before.

For example, Butt praised the initiative shown by what he described as “DIY investors,” who are mostly self-taught beginners in the public trading landscape.

These investors have been very supportive of the opportunity surrounding cannabis, but at the moment their enthusiasm may be “capped out” he said.

In contrast, he said that institutional capital activity is developing, particularly in terms of licensed producers (LPs). “On the institutional side, we’ve seen financings increase,” Butt said. “It has mostly been for LPs, which are on the sort of margins for profitability … just about maybe six to 12 months away.”

Butt said institutional investors are setting the tone now in terms of looking for maturity and evaluating firms more critically based on substantial information.

He added that recent activity around premium indexes has prompted institutions to evaluate their general investment decisions. For example, HEXO (NYSE:HEXO,TSX:HEXO) fell out of favor with the requirements needed to be included on the S&P/TSX Composite Index (INDEXTSI:OSPTX) in June.

Butt also noted that the support for cannabis big names in Canada is associated partially with recent sales numbers from the recreational market.

“The pantry stuffing that we were seeing in March actually continued on, and we saw strong sales throughout the US, and even in Ontario we saw decent sales for the month of April,” he said.

Statistics Canada information shows that March sales for cannabis went up 19 percent from the previous month to reach C$181 million. Sales in April fell down slightly to C$180 million.

The uptick in purchases was attributed to concerns surrounding the effects of the spread of the novel coronavirus in the country.

A note from CIBC Capital Markets issued back in April cut a previous projection for yearly sales of recreational cannabis in Canada to C$2.5 billion, down from an original estimate of C$3.4 billion. As for 2021, the bank now envisions the Canadian industry posting C$4.1 billion total in recreational sales.

Don’t forget to follow @INN_LifeScience for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Trulieve to donate $20,000 in scholarship funding and $15,000 to support leadership development

Trulieve Cannabis Corp . (CSE: TRUL) (OTC: TCNNF), a leading and top-performing cannabis company in the United States today announced a new partnership with the Thurgood Marshall College Fund (TMCF), the nation’s largest organization exclusively representing the Black College Community. Trulieve will donate $20,000 to help fund several college scholarships awarded to students who are attending one of the organization’s member-schools as part of Trulieve’s diversity, equity, and inclusion initiatives. The $15,000 in talent funding is earmarked to support TMCF’s internship program, reaching a diverse talent pool of students and alumni from their 47 member-schools to provide immersive experiences at Trulieve.

Keep reading... Show less

The new dispensary expands patient access to Florida’s largest inventory of medical cannabis products

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 80th nationwide. The new location marks the Company’s first in Tamarac and third in Broward County expanding patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce an update on the Company’s U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild to moderate COVID-19.

With its recent $23 million dollar financing, the Company plans to aggressively expand from 14 clinical sites to up to 50 clinical sites to meet the next enrollment goals for the Study in Q2-2020. The Study is a randomized, double-blinded, placebo-controlled trial and the safety and efficacy data analyzed at each interim analysis timepoint of 210, 400, 600 and 800 completed patients are only made available to the Independent Data and Safety Monitoring Board (“DSMB”) for review and recommendations on continuation, stopping or changes to the conduct of the Study. In the event of any serious safety concerns, the DSMB would be notified to determine any risks and provide its recommendations. To date, in this initial 210 interim point there have been no serious safety concerns that required the DSMB to be notified.

Keep reading... Show less

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that its common shares have been approved for DTC full-service eligibility in the United States by the Depository Trust Company (“DTC”) and can now be both traded and serviced through DTC’s electronic book-entry system.

DTC is a subsidiary of the Depository Trust & Clearing Corp. (“DTCC”) that provides clearing and settlement services for the financial markets and settles the majority of securities transactions in the United States. This electronic method of clearing securities speeds up the receipt of stock and cash and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms.

Keep reading... Show less

CFN Enterprises Inc. (OTCQB: CNFN) (CFN Media) partners with FMW Media Works LLC to produce a regular series on the global cannabis markets to air on major financial news networks across the US. Initial segment features leading cannabis analyst and US Multi-State Operator (MSO)

CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the leading media network dedicated to the global legal cannabis, CBD and psychedelics industries, today announced that its inaugural news segment on the cannabis markets, “Cannabis Market Outlook for 2021,” will air on Bloomberg, Newsmax and Fox Business.

Keep reading... Show less