Following a first quarter of highs and lows in the public space, Q2 managed to find some stability for cannabis stocks and even some excitement as legalization in Canada is closer to reality.
After a severe market correction felt around the cannabis markets with Canadian cannabis stocks, Q2 offered a more clear path as the industry continues to mature and Canadian banks continue their entry into the space.
Cannabis investors are becoming more savvy and established financial institutions are starting to offer new standards for the market, where licenses or proposed production facilities won’t cut it alone.
Here the Investing News Network (INN) offers cannabis investors with an update on the significant developments during the second quarter of 2018. For what happened in Q1 2018, click here to read our first quarter cannabis update.
Cannabis Q2 2018 update: legalization in Canada gets official date
After a back and forth with the Canadian Senate on conditions for the bill, officially Bill C-45 also known as the Cannabis Act, managed to pass deliberation and obtain Royal Assent in June. The act will become law in Canada later this year on October 17.
Canadian Prime Minister Justin Trudeau confirmed the date of legalization was pushed back, which was originally projected around September, due to the provinces and territories requesting more time to properly set up their retail and online models.
“Canada’s capital markets have benefited substantially from foreign money coming into the country, specifically for investment in the cannabis space,” Marc Adesso, a lawyer with a cannabis law focus at Waller Law told INN.
“In my view, full, recreational legalization will only accelerate this movement of funds into Canada.”
Kenneth Sam, partner at law firm Dorsey & Whitney and a member of the firm’s Canada cross-border practise group told INN the passing of this bill cemetend the development of a market with “ground floor opportunities for businesses and governments to emerge as leaders in the industry.”
Cannabis Q2 2018 update: CSE stocks and focus in the US market
A new trend seen throughout the voice of opinions in the market was the recognition of value and potential for cannabis stocks with operations in the US raising capital in Canada, through the Canadian Securities Exchange (CSE), as the TMX Group operated exchanges still prevent these companies from listing.
This newfound momentum for these stocks can be largely attributed to the evolving sentiment towards legalization in the US from politicians, according to Barrington Miller, director of listed company services for the CSE.
Another CSE official, director of listings development Anna Serin, explained at the Vancouver edition of the International Cannabis Business Conference (ICBC) of the nearly C$2 billion raised by CSE listings over the past 12 months, 58 percent of it is in cannabis.
“One of the biggest concerns from people listing with us was our liquidity. The cannabis sector has shot us through the roof and put us on the map,” Serin said.
Cannabis Q2 2018 update: New public listings
During the second quarter of 2018, cannabis investors obtained a variety of new options for exposure into different companies seeking to raise public capital.
Several new companies like The Green Organic Dutchman (TSX:TGOD) and MedMen Enterprises (CSE:MMEN) made entries into the Canadian public landscape with backing–either in partnership or direct financial tie–with an established public licensed producer (LP).
An eagerly awaited new company joining the public markets by investors is Tilray, a cannabis producer that confirmed its IPO on the Nasdaq Global Markets in June. Tilray was later valuated at C$1.5 billion for its IPO with an initial price between CA$18.40 to CA$21.00 per share.
Arthur Kwan, CEO and co-portfolio manager for CannaIncome Fund and managing partner with Athena Capital Advisors, told INN even though it seems a new cannabis company is launching in the public markets each week, investors should still fully investigate new picks.
“Determine whether it is a real sustainable businesses that can be achieved and whether its a short term revenue because right now feels like there’s a lot of… grandeurs-ist tweets about various cannabis companies,” Kwan warned.
In an effort to increase the exposure available to investors, Horizons ETFs Management announced the proposal of three new inverse and inverse leveraged ETFs focused on cannabis.
The new ETFs will all use the Solactive Canadian Marijuana Companies Index as a measuring point of comparison for their daily performance.
These new funds will offer investors a path to riskier gambles with higher short-term returns. According to Steve Hawkins, president and co-CEO of Horizons, explained if used appropriately, inverse marijuana ETFs can lead to an easier path of exposure in the sector.
As the cannabis space continues its rapid maturity, Yasmin Gordon, senior investment advisor with Canaccord Genuity, told INN the entry from larger Canadian banks into financing deals and coverage shows the overall de-risking for the entire space.
Cannabis Q2 2018 update: licenses are not enough in the public market anymore
The hype surrounding the public cannabis industry had been on the rise since the promise of legalization and several market data indicating a billion dollar industry was available.
As the market has matured, production numbers from public producers are no longer enough to create a buzz in the public sector. Business plans have become more complex and, as exports begin to take place from Canada into other legal cannabis markets, investors demand more information from their stock picks.
Valuation metrics haven’t been able to tell the entire story on cannabis companies so, as explained by Charles Taerk, president and CEO of Faircourt Asset Management, cannabis investors should look at the ability of their companies to execute.
This must be done in a balance of short and long term challenges for cannabis companies, according to Taerk. “Growth with negative earnings isn’t a sustainable business model and at some point companies may be penalized for lack of progress on key financial metrics,” he said.
Analysts and experts in the industry have used metrics such as revenue, earnings before interest, tax, depreciation and amortization (EBITDA) and EV (enterprise value). However, retail aspects like branding are starting to gain popularity among investors, aside from production capabilities.
Branding specifically has picked up as new key metric on which cannabis investors can evaluate public companies. Questions such as how recognizable a company’s brand is and what efforts the management team is taking to reaching a wider audience are starting to become the norm.
As the legal market opens in Canada, consumers will be hit with a variety of product options from several companies all fighting for their money.
Another competitor for legal producers remains the illicit market, as the government regulations have stated that novelty cannabis products such as edibles, vaporizers or infused items will not be available to the legal market on October 19.
Cannabis Q2 2018 update: FDA confirmation doesn’t get enough attention, experts say
In June the US Food and Drug Administration (FDA) officially approved a cannabidiol-based (CBD) product called Epidiolex designed to treat Lennox-Gastaut syndrome (LGS) or Dravet syndrome seizures. The drug is is manufactured by GW Pharmaceuticals plc (NASDAQ:GWPH).
The stock for GW, a massive company with a valuation of over US$4 billion, jumped on the approval 1.21 percent equaling a US$1.75 gain per share for investors. The company experienced a peak of momentum for its stock leading up to the official approval.
This approval represents a major swing in the sentiment towards cannabis-based medical therapies, with FDA commissioner Scott Gottlieb even writing the agency will seeks to support “rigorous scientific research on the potential medical uses of marijuana-derived products.”
Taerk told INN the importance of this announcement relates to the potential ramifications it will have on the status of cannabis in the US.
“The US Drug Enforcement Agency (DEA) will likely de-schedule marijuana from a Schedule 1 Controlled Narcotic, allowing more research, clinical trials and medical applications to continue,” Taerk said.
Cannabis Q2 2018 update: M&A activity makes its presence felt throughout
Experts had predicted a vast opportunity for mergers and acquisitions in a way that could complement existing companies as the market continues its growth.
Aurora Cannabis (TSX:ACB) has paved the way in terms of blockbuster acquisitions so far in 2018. During the second quarter, the company decided to pull the trigger on a C$3.2 billion deal for MedReleaf (TSX:LEAF) in May.
Gordon told INN she sees these mergers as positive aspect of the space.
“[Large cannabis companies] are trying to ensure their companies are actually going to hold their valuation or at least move up to the valuation,” Gordon said.
During May’s Lift Cannabis Expo in Toronto Aaron Salz, CEO of Stoic Advisory, told INN he sees a lot of these new deals as synergistic ways for companies to cover holes in their respective business plans.
Investor takeaway: Beyond Q2
Taerk told INN cannabis investors should be aware of the current production capacities of public LPs eyeing to enter the boom of retail cannabis sales for adult-use.
He also reminded investors to know if their picks will be able to restock supply once “provincial distributors require additional product” after an initial supply.
So far 2018 has established a trend of sophistication for the cannabis ventures available to investors. New challenges are appearing as legalization approaches and investors will have new metrics to evaluate picks once adult-use sales begin.Investors have a lot of hopes and money tied into a market that is now projected to create C$4.34 billion for recreational sales during 2019 by research firm Deloitte. The Canadian Imperial Bank of Commerce (CIBC) also expects to see nearly C$6.5 billion in retail sales by 2020.
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: The Green Organic Dutchman is a client of the Investing News Network. This article is not paid for content.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Ayurcann Holdings Corp. (CSE: AYUR) (the “Company” or “Ayurcann”) an integrated Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, announces the granting of stock options and restricted share units.
The Company has announced that it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase an aggregate of 1,000,100 common shares under the Company’s Stock Option Plan. Each option is exercisable at a price of $0.16 per common share, expires three years from the date of grant and vest six months from the date of the grant.
The Company has also granted restricted share unit grants, pursuant to the Company’s Restricted Share Unit plan, dated April 1, 2021, totaling 1,548,875 to certain eligible participants.
For further information, please contact:
Igal Sudman, Chairman, Chief Executive Officer and Corporate Secretary
Ayurcann Holdings Corp.
About Ayurcann Holdings Corp.:
Ayurcann is a leading post-harvest solution provider with a focus on providing and creating custom processes and pharma grade products for the adult use and medical cannabis industry in Canada. Ayurcann is focused on becoming the partner of choice for leading Canadian cannabis brands by providing best-in-class, proprietary services including ethanol extraction, formulation, product development and custom manufacturing.
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
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A planned business merger between two leading cannabis producers hit a small delay this week as a critical vote got moved.
Keep reading to find out more cannabis highlights from the past five days.
Tilray delays critical shareholder meeting
On Thursday (April 15), Tilray (NASDAQ:TLRY) announced it will be postponing its shareholder vote on the fate of its merger with Aphria (NASDAQ:APHA,TSX:APHA). It will take place on April 30 instead of April 16.
Neither cannabis company offered an explanation for the change. Tilray has asked shareholders to participate in this vote regardless of how many shares they may hold. “Tilray stockholders who have not already voted, or wish to change their vote, are strongly encouraged to do so,” the company said.
This news came days after Aphria shareholders overwhelmingly voted in favor of the business transaction, with a total of 99.38 percent of shareholders voting for the deal to continue. Confirmation from Aphria Chairman and CEO Irwin Simon indicated the partnership was en route to being complete.
This past week Aphria also released financial results for the third quarter of its 2021 fiscal year, in which the firm highlights the overall direction of the company with the Tilray deal.
“We expect to have a tremendous runway for long-term sustainable growth as we build upon our existing foundation in Canada and internationally by increasing the scale of our global operations,” Simon said in a statement.
Cannabis retailer celebrates digital trend
Bidding for the piece, named “Non-Fungible Toke“ started at a price of C$4.20. The retailer plans to donate the proceeds to two charities, Second Harvest and Less.
The latter is designed to counter the carbon footprint of blockchain technology, a common criticism drawn against the rise of NFTs and other novel technologies.
As of 11:00 a.m. EST on Friday (April 16), the NFT bid was up to C$169.11.
Cannabis company news
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) issued its financial report for the first quarter of its 2021 fiscal year. In its results, the company highlights a net revenue uptick of 24.7 percent from the previous quarter, resulting in C$20 million for the period.
- Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF) closed a public offering of 5 million subordinate voting shares at a price of C$50 each for total gross proceeds of C$287.5 million. The company celebrated its financial position after an offering in January, which will lead to the pursuit of merger and acquisition targets.
- Australis Capital (CSE:AUSA,OTCQB:AUSAF) appointed Jason Dyck as its new chief science officer and chairman of the firm’s scientific advisory board. Dyck previously served as an executive at Aurora Cannabis (NASDAQ:ACB,TSX:ACB), leading the scientific efforts for the cannabis producer. “I look forward to providing AUSA with advice and direction in its scientific efforts towards bringing innovations to market with immediate and significant commercial appeal,” Dyck said.
- Truss Beverage, a cannabis drinks venture co-owned by Molson Coors Beverage Company (NYSE:TAP,TSX:TPX) and HEXO (NYSE:HEXO,TSX:HEXO), released the details of its new lineup of infused beverages. Six new drinks will become available around the summer and are intended to pair with the season.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Partnerships with Minardi Law , Minorities for Medical Marijuana, CultivatED, and the Georgia Justice Project will include clinics and virtual events across Florida , Georgia , and Massachusetts
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today a series of expungment clinics located throughout south and central Florida as well as virtual events in Georgia and Massachusetts . The clinics are part of the Company’s celebration of the 50 th anniversary of 420.
During the month of April, Minardi Law has hosted expungment clinics and will be hosting two more as follows:
- Releaf Patient Appreciation Day, April 17 th ( Valrico )
- First Annual 4/20 Event ( St. Petersburg Beach )
At these clinics, an attorney will be present to review records and see if someone is eligible for a sealing or expungment of their records. As part of the events, Trulieve will be helping cover the costs for finger prints, legal fees, and court costs.
Trulieve is working with Minorities for Medical Marijuana (“M4MM”) to host a 4/20 Expungement Clinic, part of M4MM’s Project Clean Slate. This event will take place on Saturday, April 24, 2021 , from 9:30am – 4:30pm at Riviera Beach City Hall. Anyone seeking to take place in this event is required to register in advance at http://trulieve.cc/expungementpreregistration .
In addition, Trulieve is sponsoring the First Friday Series , a weekly virtual event from the Georgia Justice Project to help Georgia citizens with record restrictions, and is also sponsoring the Fellowship Presentation and Expungement Clinic being offered through CultivateEd and GBLS on Friday, April 23 from 3:00pm – 4:00pm . You can register for the Massachusetts expungement clinic in advance here: HTTPS://BIT.LY/2Q655KK
“Our mission as a company has always been to improve people’s lives,” said Trulieve CEO Kim Rivers . “We’ve always been dedicated to improving the communities we call home. Partnering with Minardi Law , Minorities for Medical Marijuana, Georgia Justice Project and CultivatED on these clinics was a simple decision for us; we encourage anyone seeking help with the expungement process to attend one of these clinics in your own state to start the process.”
For more information about Trulieve and the April expungment clinics, please visit www.Trulieve.com .
Trulieve is primarily a vertically integrated “seed-to-sale” company in the U.S. and is the first and largest fully licensed medical cannabis company in the State of Florida . Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida , as well as directly to patients via home delivery. Trulieve also has operations in California , Massachusetts , Connecticut and Pennsylvania. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF.
To learn more about Trulieve, visit www.Trulieve.com .
SOURCE Trulieve Cannabis Corp.
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Seth Rogen’s New Cannabis Brand are Now Available at Apothecarium Dispensaries in San Francisco , Berkeley and Capitola
The Apothecarium is offering cannabis from Houseplant, the cannabis lifestyle brand founded by Seth Rogen and Evan Goldberg at its five California dispensaries. The Apothecarium has three San Francisco locations (Castro, SOMA and Marina ) and one each in Berkeley and Capitola (outside of Santa Cruz ).
“With the vast number of dispensaries in California , we put a lot of effort into identifying the right ones that align with Houseplant’s values,” said Seth Rogen , Co-Founder of Houseplant. “The Apothecarium shares the same commitment to creating a strong consumer experience that we pride ourselves on and we are thrilled to bring our three initial strains to their stores in the Bay Area.”
Houseplant is launching with three flower strains, all of which will be available at The Apothecarium, including: Diablo Wind (sativa), Pancake Ice (sativa) and Pink Moon (indica). Like their founder’s groundbreaking film “Pineapple Express”, Houseplant strains are named after weather phenomena. Each strain will be sold in a custom tin.
“We are so proud to be one of the very first dispensaries in California to offer Houseplant to our customers,” said Ryan Hudson , CEO and co-founder of The Apothecarium. “Seth, Evan and everyone at Houseplant love and respect cannabis as much as we do. We simply cannot wait to share their beautiful and delicious flowers with our guests.”
“We’ve been working with the Houseplant team for more than a year and are grateful to have a partner that shares so many of our values, including an emphasis on cannabis education, quality, reform of cannabis laws and beautifully designed, recyclable packaging.”
“Seth has been hands-on during the process, spending time with our store managers to make sure they know the products and how much care has gone into vetting and selecting the best strains. We think our guests are going to love Houseplant.”
About The Apothecarium
The Apothecarium is recognized as one of the nation’s premier cannabis dispensaries, with an emphasis on education via in-depth one-on-one consultations from highly trained cannabis consultants. The company was founded by three first cousins and two family friends in 2011. Our dispensaries are known for providing educational events that are open to the public at no cost — and for welcoming seniors, first-time dispensary visitors, and people with serious medical conditions. The Apothecarium’s flagship San Francisco dispensary was named the best-designed dispensary in the country by Architectural Digest . Patients and customers may order at our dispensaries or online for pickup or delivery at apothecarium.com [apothecarium.com] .
The Apothecarium is committed to giving back to the communities we serve. We have donated more than $400,000 in cash to community groups and nonprofits — plus more than $300,000 worth of in-kind donations.
All Apothecarium dispensaries continue to implement safety measures to protect guests and team members. Protocols include strict social distancing inside and outside the dispensaries, a mask requirement for everyone inside the dispensaries, no contact check-in procedures and ongoing sanitizing throughout the day.
CA Licenses: C10-0000523-LIC; C10-0000522-LIC; C10-0000515-LIC, C10-0000738-LIC, C10-0000706-LIC
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MISSISSAUGA, Ontario TheNewswire – April 16, 2021 Sire Bioscience Inc. (CSE:SIRE) (OTC:BLLXF) (FSE:BR1B) (CNSX:SIRE.CN) (“SIRE” or the “Company”) announces that Brian Nugent has resigned as a member of the Company’s board of directors (the “ Board ”). It has been a pleasure and a blessing to have worked with Brian Nugent over the past few years, his business acumen and tremendous experience will certainly be missed, SIRE wishes him nothing but the best in all his future endeavors.
About Sire Bioscience
SIRE is headquartered in Mississauga, Ontario with its wholly owned subsidiary PLANTFUEL® based in Denver, Colorado. SIRE is managed by a group of successful entrepreneurs who have extensive experience in the areas of consumer-packaged goods, manufacturing, logistics, and distribution. SIRE is a CPG life science company focused on the plant-based foods and supplements industry.
For additional information contact:
Sire Bioscience Inc.
Copyright (c) 2021 TheNewswire – All rights reserved.
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