With the cannabis market growing and excitement over its potential legalization, cannabis stocks have been reaping the benefits lately.
As the market blooms, the Investing News Network (INN) recently caught up with cannabis stock analyst Alan Brochstein for his thoughts on the Bill Blair report to prime minister Justin Trudeau expected this month, sector catalysts and the recent stock rally in the US Marijuana stocks.
Alan Brochstein’s 420 Investor is the go-to community for investors to learn, explore, and profit from the marijuana companies. The main goal of 420 Investor is to provide real-time, objective information about the top marijuana companies in the market in order to help investors capitalize on cannabis.
In particular, highlights of the conversation included:
- The Bill Blair Task Force Report
- The US cannabis stocks rally
- Cannabis sector Catalysts, including Sanjay Gupta’s infamous reversal and the Coleman Memorandum in Oregon and Washington.
- Recent mergers and acquisitions in the cannabis sector
- How the marijuana sector is attracting technology entrepreneurs from Silicon Valley
Below is a transcript of our conversation. It has been edited for clarity and brevity. Read on to see what Brochstein had to say.
INN: For readers that might not be familiar with your work, can you give us some background on yourself and new cannabis ventures?
AB: I’ve been in the cannabis industry since 2013, fulltime since early 2014.
Right after college, I went to work on Wall Street in the bond market and later in my career moved into investment management and shifted into equities. At the end of 2006, I started my own firm as an independent equity analyst providing research and consulting services to money managers. I was also was a blogger on Seeking Alpha and ran a few model portfolio services. That put me in a position in early 2013 when I first realised I was one of the first people to research cannabis stocks from an analytical perspective.
INN: What prompted you to start covering the cannabis sector? Can you give us some insight into new cannabis ventures?
AB: In early 2013 right after the 2012 elections,(cannabis was) legalized in Colorado and Washington. All of a sudden there were about eight to ten cannabis stocks–or purported cannabis stocks–that doubled in value.
I was a writer on Seeking Alpha and somebody published an article about one of these companies.
This article really spoke to me because on one hand, it pointed to the promise of legalization, but highlighted that there were scam companies out there..
As that year progressed, Sanjay Gupta issued his famous reversal. He was the Chief Medical Officer for CNN. He had been a pretty adamant opponent to medical cannabis and said it was a fraud. He then released the documentary Weeds and issued a Mea Culpa. He said he was wrong and that was one of the things I was looking for in terms of a major media figure embracing cannabis legalization for medicinal purposes.
In August, the federal government allowed Colorado and Washington to move forward by issuing the Coleman Memorandum. This was huge because everybody wanted to move forward, so the government gave Colorado and Washington the green light.
So, I launched 420 Investor in September 2013 to focus on the cannabis sector, the publicly traded stocks, and more recently New Cannabis Ventures.
INN: The cannabis sector’s heating up on both sides of the border with the US election arand the Bill Blair report to the Prime minister expected out this month. The report will follow the lead with states like Washington and Oregon which has successfully implemented recreational use of cannabis. Do you see something completely different in Canada?
AB: Yes. Canada’s a huge focus of mine. About a year ago in mid-October, right before the elections, I hosted a panel in Denver that had some of the leading CEOs from the sector there and it was like an empty room. . Part of Trudeau’s platform is to legalize cannabis. It’s been really interesting to see this play out.
I don’t think people widely appreciate that this Task Force Report will not be publically disseminated at first, so that’s the first thing. That’s something people should be aware of; there’s a timeline and the only things on it right now are the Task Force and introduction of the legislation which has been pinpointed to be in the spring of 2017. Then there’s a timeline beyond that what the legalization will look like.
I think what’s going to be complex about this is – and I don’t have any answers – is what’s the distribution going to look like? Right now every single gram of cannabis is sold legally in the ACMPR system, which is through mail order and. ‘Will it even be an option?’ is the question for legal. I think it will.
I think that what the ultimate legislation will show is that it’s not going to be a “one size fits all”approach. Each province will have control over the distribution, so it’s going to be different in the east and the west. ill we have dispensaries like in Colorado and Washington? Will it be only the producers that are allowed to have physical stores? Will it be the LCBOs type model? Will it be the drug store type model? I really don’t know how it’s going to play out.
INN: Can you give our readers some insight into the big rally of late in the US cannabis stocks? Do you see it’s sustainable?
AB: Yes. This has been amazing. Some would say there were rallies before but there just weren’t enough stocks. That first rally was in February of 2013 where the stocks basically doubled and then they lost two thirds of their value, until the summer of 2013. The second rally is what I’d like to call The Mother of all Rallies. In that rally, I have an index that bottomed out at 70 in the summer of 2013 and I think it was at about 150.
In the next two and a half months, that index went from about 150 to over 1000. The reason for that was people were waking up to what I had learned in early 2013 because it was on national media, international media.
In that rally there weren’t that many companies that people could buy and there were a lot of people that wanted to buy simple.. You had stocks go up way more than they should have and it was not fundamentally driven. The valuations were insane.
Now fast forward to this year. I’ve been telling my subscribers that we’re going to have a very big rally at the end of the year due to these elections. I published on August 31 a report not only saying what I expected to happen and when, but which stocks should be bought as well. I warned people that it’s not sustainable. It’s a trade.
On October 31st I called the end of the rally. To answer your question about sustainability, unfortunately it’s not sustainable. The valuations are too high.
INN: Canopy Growth (TSX:CGC) made headlines with the acquisition of Verdi Medical and Groupe Hemp. Can you give us some insights into this acquisition?
AB: Canopy Growth is the largest in terms of market cap and sales of a publically traded license producer in Canada. They have two brands that they operate under: Tweed which consumers will be familiar with and Bedrocan which uses the license to produce a medicinal minded product.Vert Medicalin Quebec is a really different animal from the rest of Canada.I think it was smart that they established a toe-hold there in Quebec. They bought what’s now Tweed Farms, a large greenhouse.. They were able to use their clout with Health Canada to get that license pushed through pretty quickly.
Mettrum Health (TSXV:MT) did the same thing with another pre-licensed LP. I think we should expect to see more consolidation. Canopy Growth is the biggest company will probably continue to be a consolidator.
INN: Do you think we’re going to see more mergers and acquisitions to cannabis sector?
AB: There actually are some decent companies listed on the OTC. I think one thing that you can do with your high valued stock is use it to make acquisitions. We’ve seen a couple examples of that and I do expect to see a little bit of that. It’d be really nice to see a real company, like one that shines in the private sector, merge with one of these publically traded companies. I don’t know if we’ll see that.
In Canada, I think it’s going to be really hard for a lot of these LPs,depending on how the rules play out if we move to a system where there are a lot of storefronts, it’s a little different. You don’t have to establish your own brand but then you have to grow at a very low cost. It’s going to be really tough for some of these pre-license companies that plan on having their own brands and all that, it’s going to be really tough. If they want to succeed. I think they’re going to have to be part of a larger company.
Right now, there is one more that about to go public, so there’ll be about 10 companies that are publically trading. There’s 36 licenses, but some of those are multiple licenses that are held by some public companies. There’s probably another 20 companies that I think don’t have good access to capital. The LPs definitely have good access to capital so that suggests consolidation as well.
INN: You recently published an article rg on how the sector’s attracting technology entrepreneurs from Silicon Valley. Is there anyone in particular you’re following or think investors should watch out for?
AB: Yes. The article you referenced, done by Melia Robinson on Business Insider picked out some great companies,
I would point to even among that list, there’s just some bigger themes. Everybody always likes to think about “Who are the big players in cannabis? They must be the people selling it or growing it.” That’s really not the case. There are some. It’s really hard to make money in that business because of punitive taxation, not only is there the state and local taxes that we’re all familiar with, but w something called 280E . It’s a more than 30-year-old rule for the Miami drug lords, the cocaine industry. They wanted to collect taxes on these people that were engaging in illegal activities.
They use this antiquated law today to push marginal tax rates 75 to 80 percent. I think where companies are able to attract more capital is where I would point people they need to be looking at.
Big picture I would suggest focusing on some of these ancillary companies that are outside the growing and selling part of the industry.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Editorial Disclosure: Mettrum Health is a client of the Investing News Network. This article is not paid-for content.
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.
News Provided by GlobeNewswire via QuoteMedia
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.
News Provided by PR Newswire via QuoteMedia
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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