LEGALIZATION COVERAGE

Canada’s decision to legalize the recreational use of cannabis has allowed the rise of an emerging investment market. The cannabis public sector has become one of the most followed industries for investors. 

As such, the Investing News Network brings investors a collection of stories on the critical transition and its impact on the public markets.


Investors have eagerly anticipated the start of adult-use cannabis sales in Canada as they wait to see which companies will see positive numbers from this new market.

While cannabis investors will have to wait for concrete data to arrive for the first few days and weeks of legal sales, the event brought attention from the public to the space.

The Investing News Network (INN) provided coverage of legalization in the week leading up to the event and immediately after — see below for a round-up of our content on this critical event in Canada.


US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

How to Invest in Cannabis: Start Here: INN put together a guide for new investors joining the cannabis public market. Everything you would want to know about this emerging play.

Financial Experts Say This is How Pot Legalization Will Affect Investors: Prior to legalization, a collection of financial experts, including portfolio managers and executives, shared their views with INN on what might happen after legalization.

Cannabis Stocks Drop on Legalization DateDespite the excitement in Canada and internationally over the legalization of adult-use cannabis, the stock market took a hit that has continued with mounting losses for pot stocks.

No Market Buzz on Cannabis Legalization, Says Portfolio Manager: Greg Taylor, portfolio manager with Purpose Investments, gave his opinion on sentiment for cannabis stocks after the much-anticipated October 17 legalization date.

Setback Potential for Investors After Legalization, ETF Exec SaysMark Noble, senior vice president of ETF strategy with Horizons ETFs, also told INN his expectations for the cannabis public market after legalization. Watch the interview below:

Cannabis Shortage Won’t be Fixed with New Licenses, Says CEO: Greg Engel, CEO of Organigram Holdings (TSXV:OGI), told INN what he thinks is needed to effectively combat the shortage of legal recreational cannabis seen in Canada.

Lift & Co. Looks to Train All Cannabis Retail Staff: A Canadian cannabis company wants to make its training program for retail staff workers in cannabis shops the “no-brainer choice” for retailers looking to comply with guidance from the Canadian government.

The Future of Cannabis in the Retail Industry: While the Canadian cannabis public market has been a story full of excitement on the producers’ side, retail plays could provide a strategic alternative and offer a new entry point into the cannabis market.

What are the Risks for Cannabis Investors Crossing to the US?: As legalization hits Canada, the US still holds cannabis and related activities under federal scrutiny. INN asked legal experts what the level of risk will look like for investors in the space.

Canadian Cannabis Companies on US Exchanges Expand Reach: With the cannabis market hitting a new benchmark of maturation with legal adult-use sales, leading companies are listing on US exchanges, increasing options for US investors eager to get in the market.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

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


US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

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  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

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Shareholders with losses exceeding $50,000 are encouraged to contact the firm

The Law Offices of Frank R. Cruz reminds investors of the upcoming December 1, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Aurora Cannabis, Inc. (“Aurora” or the “Company”) (NYSE: ACB ) securities between February 13, 2020 and September 4, 2020 , inclusive (the “Class Period”).

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Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce the launch of preclinical research studies using psilocybin and N-Acetylcysteine (“NAC”) for the treatment of mild traumatic brain injuryconcussion (“mTBI”) with post-traumatic stress disorder (“PTSD”). The study is in collaboration with a multidisciplinary team of scientists and physicians at the University of Miami Miller School of Medicine under the lead of Michael E. Hoffer, M.D., professor of otolaryngology and neurological surgery.

NAC has been shown to be safe and efficacious in a phase I human clinical study in treating military personnel who had suffered mTBI. The initial research focus is to demonstrate the safety and efficacy of the combination of psilocybin and NAC using broadly accepted rodent models. Final results are expected in 2021. Once this is established, more specific work can examine dose response, medicine uptake, and medicine levels. The research team at the Miller School of Medicine has conducted prior studies involving NAC with mTBI and has a license from the United States Drug Enforcement Administration to conduct research using Schedule I controlled substances, which includes psilocybin.

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Aphria Inc. (” Aphria “, ” we ” or the ” Company “) (TSX: APHA) (NASDAQ: APHA), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, announced it has closed the accretive, strategic acquisition (the ” Acquisition “) of  SW Brewing Company, LLC (” SweetWater Brewing Company ” or ” SweetWater “), one of the largest independent craft brewers in the United States (“U.S.”) based on volume. Beginning with the flagship 420 beverage offerings, SweetWater has created an award-winning lineup of year-round, seasonal and specialty beers, a portfolio of brands closely aligned with a cannabis lifestyle.

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