Cannabis investors face a red day with pot stocks taking hits on Thursday (September 27) after the Ontario provincial government outlined its decision to restrict LPs to one retail license in the province.
Ontario’s Attorney General Caroline Mulroney stated during a press conference there would be no limit on the total amount of licenses given out to Canadian LPs, but would instead be given the chance to apply for a “single retail operator license” only.
“Any licensed producer will be permitted to hold a single retail license at a single production site located in Ontario,” Mulroney said. The province will also limit how many licenses a specific company or person may hold.
The new Ontario plan will see the installation of these shops by April of next year.
When it comes to Ontario, the producer will seek its single retail license for its headquarters in Smith Falls.
Allan Rewak, executive director of The Cannabis Council of Canada, an association representing the interests of Canadian LPs, told the Investing News Network (INN) the council is “eagerly awaiting the introduction of legislation” in order to better understand how exactly the government is planning its approach.
The council had previously issued a warm response to the new Ontario retail framework implemented by Premier Doug Ford.
Frank Robinson, a partner in the franchise law group at Cassels Brock, said the new regulations will “shut out” the big producers and create opportunities for franchising by LPs.
“The only way [LPs] will be able to get their logos and brands on storefronts is to license or franchise all of these small business people to which the province wants to allow access,” Robinson said.
“This sets the stage for a varied and comprehensive cannabis retail experience, which should be expected to include the use of franchise systems, helping operators market faster, harness established operating systems, create quality and brand reliability and keep shelves stocked.”
The Horizons Marijuana Life Science Index ETF (TSX:HMMJ), which added nine new stocks into its holdings on Wednesday (September 26) and the Evolve Marijuana ETF (TSX:SEED) both declined in value on Thursday’s trading session.
As of 12:30 p.m. EST, HMMJ and SEED saw drops of 0.99 and 2.37 percent respectively. HMMJ holds a price of C$23.98 and SEED is valued at C$23.90.
Another indicator of the overall Canadian market is the Marijuana Index from The Arcview Group. On Tuesday (September 25), the index showed all but one of its 17 constituents with a loss. The overall index was down 31.19 percent in value.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).