As another month ends, the Investing News Network provides a recap of some of the most critical May developments in the public marijuana space.

Investors are gearing up for a key vote for an acquisition in the public cannabis sector. As the deadline for votes nears, two investment firms have issued statements to investors on which stance to take.

Meanwhile, in California, a newly proposed bill would allow for the implementation of cannabis banks in the state, sidestepping a federal ban on financial institutions participating in the space due to the illegality of the drug at the federal level.

California gets closer to offering banking relief

The California Senate voted in favor of Bill 51 in May, which would allow the creation of state-chartered cannabis banks.

“The bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing banking services, as defined, to cannabis businesses,” the text of the legislation indicates.

“Hopefully, it will open up the possibility of more banks serving cannabis companies in California,” Marc Adesso, veteran cannabis attorney with law firm Waller Lansden Dortch & Davis, told the Investing News Network in an email statement.

Support and concern for Acreage/Canopy deal

Two separate investment firms issued commentary to investors in May advising how to vote on Canopy Growth’s (NYSE:CGC,TSX:WEED) proposed acquisition of multi-state operator Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF).

Mick McGuire, portfolio manager for Marcato Capital Management, issued a letter to shareholders calling the deal a “value-destructive transaction.” He advised other Acreage investors to vote against it. Marcato indicated that it owns approximately 2.7 percent of Acreage shares.


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“…Marcato believes it is highly imprudent for Acreage to sell itself today at the proposed valuation, with so much unlocked growth and value embedded in (Acreage),” McGuire wrote in the letter.

However, another investment firm, Cresco Capital Partners, confirmed it will vote positively for the deal as an Acreage investor.

“From an Acreage perspective, it now has 58 million shares of Canopy Growth injected in the company to continue to make strategic acquisitions and expand across the country. In an industry where capital still costs a premium, this infusion is a tremendous differentiator,” Matt Hawkins, managing partner at Cresco Capital Partners, wrote to investors, according to a report from MarketWatch.

Watch the video above for more on what happened during the month of May.

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.

Editorial Disclosure: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content.


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

Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Aurora Cannabis Inc. (NYSE: ACB) between February 13, 2020 and September 4, 2020, inclusive (the “Class Period”), of the important December 1, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Aurora investors under the federal securities laws.

To join the Aurora class action, go to http://www.rosenlegal.com/cases-register-1965.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action.

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Pawar Law Group announces that a class action lawsuit has been filed on behalf of shareholders who purchased shares of Aurora Cannabis Inc. (NYSE: ACB) from February 13, 2020 through September 4, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Aurora Cannabis Inc. investors under the federal securities laws.

To join the class action, go here or call Vik Pawar, Esq. toll-free at 888-589-9804 or email info@pawarlawgroup.com for information on the class action.

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The Israeli cannabis market is picking up with a new supply deal from a Canadian producer.

Also this week, new data showed sales of Canadian cannabis edible products may be stalling.

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The Israeli cannabis market is picking up as a Canadian producer announced a new supply deal in the country.

Also this week it was shown the sales of Canadian cannabis edible products may be stalling, according to new data.

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The Portnoy Law Firm advises investors that class action lawsuits have been filed on behalf of investors in the following publicly traded companies. Shareholders interested in taking an active role in these cases have until the deadlines indicated below to petition the court. There is no cost or obligation to you. See below for more information on these cases.

Credit Acceptance Corporation investors (NASDAQ: CACC); December 1, 2020 deadline, click here to join .

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