During the past trading week (June 10 to 14), the Canadian government announced the edibles and infused marketplace will be available by the end of 2019.
A new plan from a marijuana producer to lock up a majority of its shares made headlines, while the expansion of a credit card program from a US-based marijuana operator also caught attention.
Here’s a closer look at some of the biggest news during last week’s trading period.
Edibles in Canada coming in mid-December
As part of the legalization of cannabis, Canada unveiled its final set of regulations for the introduction of edible and infused products. On Friday (June 14), the government confirmed the regulations will come into force on October 17, a year after the first round of legalization in Canada.
“As required by the Cannabis Act, the amended regulations will come into force on October 17, 2019. However, it will take time, after that date, before new cannabis products become available for purchase,” Health Canada said in a release.
According to the government, the earliest these products will be sold is December 16, 2019. The launch will see a limited selection of products that will appear “gradually” in both physical retail and online portals, said the government.
“Additionally, as with any new regulatory framework, federally licensed processors will need time to become familiar with and prepare to comply with the new rules, and to produce new products,” the government said. “Provincially or territorially authorized distributors and retailers will also need time to purchase and obtain the new products and make them available for sale.”
The government confirmed the full regulations will be published and shared with the public on June 26, 2019. Edible products will face a limit of 10 milligrams of tetrahydrocannabinol (THC) per package.
Similar to the first round of legalization, all of these new products will face heavy restrictions on packaging and promotion.
“There will be missteps, delays, and frustration,” Deloitte states in the document. The projection from the research gives a value of C$2.7 billion per year to the total edibles and infused space, with edibles accounting for C$1.6 billion.
“According to our research and stakeholder interviews, much of this economic boost will be on top of current cannabis product spending,” Jennifer Lee, partner at Deloitte and the firm’s cannabis leader for Canada, said in a press release.
One of the presenters of the new study, Ashley Chiu, EY’s cannabis strategic growth and risk leader, told the Investing News Network that a wide margin of consumers will be entering the edibles market without a lot of information on the products and the effects of these.
Because of this lack of information, budtenders will play a crucial role in the education of consumers, according to Chiu.
MSO expands credit card program in the US
Under this program, consumers can apply for a unique credit card that works for cannabis purchases in dispensaries owned by the MSO. After an initial test run in New York, the firm aims to have the program ready in Delaware, Pennsylvania, Illinois and Arizona by the end of June.
“Based on our success in New York … we are confident that the CNC Card has the potential to be a significant value add for the company and for all of our customers who look to us for reliable and convenient high-quality health and wellness options,” Nicholas Vita, CEO of Columbia Care, said in a press release.
The firm indicated that, since introducing the card in New York, the “average basket size for in-store purchases” has gone up by 18 percent.
Tilray secures shareholder lock-up
According to a new arrangement between the two firms, Tilray will acquire Privateer in what is referred to as a downstream merger. After the acquisition is completed, Tilray will issue Privateer shareholders a new set of the marijuana firm’s shares. These new shares will be placed on lockup for a two year period.
Tilray indicated the new agreement with Privateer will extend the current lockup of 75 million shares of the marijuana company. Privateer owns approximately 77 percent of Tilray’s total outstanding shares.
“We believe this transaction will give Tilray greater control and operating flexibility, while allowing us to effectively manage our public float,” Mark Castaneda, chief financial officer of Tilray, said in a press release.
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.
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).