In a note issued earlier this week, a cannabis analyst offered a look at issues investors should be aware of when it comes to the spread of the novel coronavirus in Canada.
Graeme Kreindler, equity research analyst with boutique financial institution Eight Capital, indicated that the highest areas of concern across the supply chain in cannabis are lighting in the cultivation sector and vape hardware as part of manufacturing.
As safety measures are put in place for the prevention of COVID-19, the disease caused by this coronavirus, the analyst also highlighted machinery and environmental control segments attached to cannabis operations as areas to monitor.
He said that concerns over lighting equipment and vape hardware are due to connections with manufacturing in Asia, primarily China.
“This comes at a time where vape sales are expected to ramp up given their recent launch in the Canadian adult-use market and a rebound in sales in the US, after concerns late last year on vape-related illness,” Kreindler said in his note, according to a report from BNN Bloomberg.
Vape sales have become increasingly significant for companies given the recent second stage of legalization in Canada.
“Virtually all vape hardware manufactured in China per our discussions with operators. Build-up of inventory post-vape crisis could mitigate some risk. Tight capital conditions not conductive to every operator being able to build up and sustain large inventory positions,” the analyst wrote.
Kreindler covers an array of Canadian cannabis names like Tilray (NASDAQ:TLRY), Aurora Cannabis (NYSE:ACB,TSX:ACB) and Canopy Growth (NYSE:CGC,TSX:WEED), alongside US firms such as Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF) and Harvest Health and Recreation (CSE:HARV,OTCQX:HRVSF).
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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.
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).