With 2018 nearing its end, the Investing News Network (INN) is looking back on what stories caught the eyes of investors in the cannabis public space.
Companies and players in the cannabis market participated in a variety of developments that had a direct impact on the public stock market and the pockets of investors.
With that in mind. here INN brings investors a closer look into the top stories that caught the attention of our readers throughout 2018.
For a full recap of what 2018 looked like for the entire cannabis market, investors can read our 2018 cannabis trends of the year. Investors looking to see which stories caught the attention of the market last year can see our top five stories from 2017.
In July, major Canadian bank Toronto-Dominion (TD) Bank (TSX:TD) reversed course, at the time, on a negative sentiment on the marijuana market by adding 13 pot stocks to its list of approved companies to be recommended by financial advisors.
The complete list included only Toronto Stock Exchange (TSX) or TSX Venture Exchange (TSXV) stocks as it is policy for the bank and skipped Aurora Cannabis (NYSE:ACB,TSX:ACB) and Aphria (NYSE:APHA,TSX:APHA) due to the existing assets both companies still held related to the US cannabis market.
After a year full of speculation and projections, reality bit on the cannabis market in February when a massive market correction slashed prices for the overall public sector.
A January research note to investors from Canaccord Genuity had warned the fundamentals of these companies did not back up “the rapid share price increases that we have witnessed.”
As part of INN’s 2018 Trends look-back Brayden Sutton, CEO of 1933 Industries (CSE:TGIF,OTCQX:TGIFF) said the February correction was “overdue” in order to “keep valuations in check and avoid going further into bubble territory.”
As the Canadian cannabis market continues to mature, a variety of “firsts” took place. This includes the first time Health Canada, the regulatory agency for the industry in charge of licensing, announced it intends to revoke the federal license of licensed producer (LP) Agrima Botanicals, a subsidiary of Ascent Industries (CSE:ASNT).
“We haven’t seen this unprecedented move by Health Canada before,” Deepak Anand, vice president of business development and government relations with regulatory firm Cannabis Compliance, told INN in an email.
Ascent informed investors it will attempt to defend its license and “exercise its right to be heard under the Cannabis Act and Cannabis Regulations in order to maintain its licences.”
The executive team of Newstrike Resources (TSXV:HIP) — and in particular CEO Jay Wilgar — found themselves in a tricky situation following a proposed acquisition deal with at the time public LP CanniMed Therapeutics.
The deal seemed to make sense for both parties until Aurora Cannabis stepped in looking for an outright acquisition of CanniMed instead. After a formal offer was denied, Aurora pursued an aggressive takeover manoeuvre, which led to a deal finalized in April.
In the interview, Wilgar told INN about the turmoil from seeing the deal between the two LPs evolve and whether or not Newstrike was ever on the table for the full acquisition.
Speculation was a dominant point throughout the year and one of its biggest results was the share price increase for LP Tilray (NASDAQ:TLRY).
After it was reported alcohol producer Diageo (NYSE:DEO), was seeking a cannabis company to partner with, rumors spread as to which was in the running for a deal.
Doug Waterson, CFO and Portfolio Manager with Faircourt Asset Management and Manager of the Ninepoint UIT Alternative Health Fund, told INN he viewed a “significant portion” of the rush Tilray enjoyed was due to the speculation.
“[Tilray is] a quality name in the space and it would make a good partner for someone looking to enter [like a] beverage company,” Waterson said.
So far Diageo has not confirmed any deals with any cannabis companies.
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: Ascent Industries is a client of the Investing News Network. This article is not paid-for content.
Company is strategically building a diverse edibles portfolio with taste-forward and effects-driven products to cater to market and consumer needs
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, today announced the launch of Wonder Wellness (“Wonder”) Gummies and availability in Illinois. The new low-dose edibles are enhanced with botanicals to complement the overall cannabis experience, and their simple packaging communicates desired effects so wellness-minded category newcomers can consume with confidence to add cannabis as a part of their daily lifestyles.
INDVR Brands Inc. Signs Letter of Intent with BevCanna to Introduce Honu’s THC Infused Products to Canadian Consumers
INDVR Brands Inc. (CSE: IDVR) (the “Company” or “INDVR Brands” or “INDVR”), a premier cannabis brand, consolidator and edibles retailer, proudly announces it has signed a Letter of Intent (“LOI”) with BevCanna Enterprises Inc. (“BevCanna”) to produce and distribute certain HONU THC infused and award-winning edible products to retail locations across Canada. The new partnership marks INDVR’s first introduction to the Canadian cannabis market and its first international expansion.
“With the THC infused product segment making up a growing percentage of the cannabis consumed in Canada, now is the ideal time to introduce our HONU brand into an edibles market estimated at approximately $1.6 billion annually,” said Joshua Mann, INDVR’s CEO. “Our dedication to product quality and consistency is our defining factor in producing some of the most trusted products in Washington and Oregon states, and we are excited to start building the same brand-loyal following across Canada.”
Reports Eighth Consecutive Quarter of Positive Adjusted EBITDA and Positive Adjusted EBITDA from Cannabis Business
Aphria Inc. (” Aphria ,” ” we ,” or the ” Company “) (TSX: APHA) (NASDAQ: APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, today reported its financial results for the third quarter and nine months ended February 28, 2021 . All amounts are expressed in Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.
Thoughtful Brands, Inc. (CSE:TBI)(FWB:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands“), an eCommerce technology company that researches, develops, markets, and distributes natural health products through various brands in North America and Europe, announces that it intends to consolidate its issued and outstanding common shares (“Shares”) at a ratio of ten (10) pre-consolidated Shares to one (1) post-consolidation Share (the “Consolidation
The Company currently has 389,274,701 Shares issued and outstanding. Following the Consolidation there will be approximately 38,927,470 Shares issued and outstanding. No fractional Shares will be issued and any fractions of a Share will be rounded down to the nearest whole number of Shares. The exercise or conversion price and the number of Shares issuable under any of the Company’s outstanding convertible securities will be proportionately adjusted upon Consolidation.
In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.
Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.