During the past trading week (June 24 to 28), the state of Illinois announced the start date for its recreational marijuana program.

The creation of a new league of marijuana corporations seeking to protect their interests made headlines, while an international shipping announcement also caught attention.

Here’s a closer look at some of the biggest news during last week’s trading period.


US Election 2020 and Cannabis

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

Illinois sets date for recreational marijuana sales

The state of Illinois announced the launch of its adult-use cannabis program after Governor J.B. Pritzker signed a legalizing bill on Tuesday (June 25).

Illinois is now the 11th state to legalize adult-use marijuana use, with sales beginning in 2020. As with other emerging cannabis markets in the US, a variety of publicly traded multi-state operators will vie for a stake in this market.

Marijuana Business Daily indicates that Illinois’ recreational program will reach a value of US$2.5 billion per year.

Canadian cannabis leaders join forces for business interest advocacy

As a way to protect the business interests of the Canadian cannabis industry, the Canadian Chamber of Commerce unveiled a new association on Tuesday.

The National Cannabis Working Group will seek to advocate for and participate in the development of policies affecting the market.

The initial members of the group include some of the leading public cannabis producers. Ryan Greer, senior director and cannabis policy lead for the Canadian Chamber of Commerce, told the Investing News Network that the door is open for new members to join.

“There’s … an opportunity to continue to educate elected officials, those who may be putting their names on the ballot for the federal elections this fall, federal servants and regulators and the broader public … (about) what the economic potential for this sector can be if we get a lot of (marijuana policies) right,” Greer said.

Greg Engel, CEO of Organigram Holdings (NASDAQ:OGI,TSXV:OGI), told Yahoo Finance Canada that this new group will seek to protect the Canadian market and its stakeholders from growing business threats.

“What I really do see as a threat to the Canadian industry is changes in the US from a regulatory framework perspective,” Engel said. “We’ve got an opportunity to build on the advantage we have in the near-term.”

Market updates

Tilray (NASDAQ:TLRY) confirmed on Tuesday that it has started importing “cannabis oral solutions in bulk” from Canada to its UK-based operation. The marijuana producer informed shareholders that it will be able to serve patients in the European nation.

Sascha Mielcarek, managing director of Tilray Europe, said more countries on the continent are recognizing and getting up to speed with the medical cannabis market.

“Regulations are progressing as more and more countries across Europe are recognizing the benefits of medical cannabis and its potential to improve patients’ quality of life,” Mielcarek said.

Meanwhile, a note from Bank of Montreal (NYSE:BMO,TSX:BMO) analysts Tamy Chen and Peter Sklar states that Canopy Growth (NYSE:CGC,TSX:WEED) could be impacted by high edibles and beverage costs.

The note says the company could see losses before interest, taxes, depreciation and amortization (EBITDA) of C$314 million and C$77 million in 2020 and 2021, respectively, due to current operating costs seen by the firm.

“We believe the operating expense needed to ramp manufacturing and processing capabilities in fiscal 2020 could be higher than expected,” the BMO analysts wrote.

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.

  • Company surpassed 5,600 patient prescriptions for its medical cannabis products in Colombia . Prescriptions filled increased over 450% in Q3 2020 over Q2 2020
  • Khiron declared a National Strategic Project by the Government of Colombia , simplifying and accelerating administration and processes for the Company in executing strategic projects in Colombia and for export
  • Subsequent to the quarter, the Company completed a bought deal financing on November 26, 2020 , selling 32,200,000 units at a price of $0.45 per unit for aggregate gross proceeds of $14,490,000 CAD
  • Khiron signed partnerships with 15 clinics and health centres in Colombia , extending education and sales reach further across the country
  • As a result of the Company’s Doctor Zerenia TM telehealth platform more than 25% of the Company’s medical cannabis prescriptions came from outside of Bogota , expanding geographic presence of its Colombian clinics
  • Company achieved first sales of High CBD medical cannabis through private pharmacies in Peru . Additional approval received from Peru’s drug regulatory authority for Company’s High THC cannabis, with first prescriptions anticipated in Q1 2021
  • Expanded medical cannabis E-Learning platform to UK market in partnership with Medical Cannabis Clinicians Society (“MCCS”)
  • Entered an exclusive partnership with Rappi SAS, Latin America’s largest home multi-vertical app platform to distribute the Company’s CPG product portfolio, introducing Kuida products to Rappi users across the LatAm region
  • Signed agreement to distribute the Company’s Kuida TM CBD skincare brand through pharmacy, beauty retail and online markets serving the Hong Kong territory, with first orders expected in Q4 2020
  • Prudent cash use of $5 million in Q3 2020, compared with $4 million in Q2 2020, $12 million in Q1 2020 and $10 million in Q4 2019

 Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN ), (OTCQX: KHRNF), ( Frankfurt : A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe announced today its financial results for the quarter ended September 30, 2020 . These filings are available for review on the Company’s SEDAR profile at www.sedar.com All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

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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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  • 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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