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.

1. TD Changes Course in Cannabis Stock Recommendations

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.

2. Market Correction Sends Cannabis Stocks Down

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.”

3. Ascent Industries Faces Canadian Cannabis License Removal

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.”

4. Newstrike Resources Opens Up on Fallout of CanniMed Deal

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.

5. Tilray Shares Rise Amid Potential Diageo Partnership

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.

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NYSE | TSX: ACB

Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced bought deal public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$137,940,000 . The Company sold 13,200,000 Units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

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Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced bought deal public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$137,940,000. The Company sold 13,200,000 Units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of US$12.60 per Warrant Share, subject to adjustment in certain events.

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AMP German Cannabis Group Inc. (” AMP “) (CSE: XCX ), ( Frankfurt : C4T ) (ISIN: CA00176G1028) and Aphria Inc.’s (” Aphria “) (TSX: APHA ) (NASDAQ: APHA) wholly-owned German subsidiary, CC Pharma GmbH (” CC Pharma “), have entered into a strategic agreement (the ” Co-Promotion Agreement “) covering joint marketing of sales for Aphria brand medical cannabis products for the German market.

The Co-Promotion Agreement is a collaboration contract between AMP and CC Pharma to sell the Aphria medical cannabis brand in Germany . In addition, AMP will organize with the support of CC Pharma, “information events” in Germany to market Aphria branded products to doctors and pharmacists.

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HempFusion Wellness Inc. ( TSX:CBD.U ) ( FWB:8OO ) (“ HempFusion ” or the “ Company ”) is pleased to announce that it has been included in two leading cannabis & hemp-derived CBD focused exchange-traded funds (“ ETFs ”), AdvisorShares Pure US Cannabis ETF ( NYSE:MSOS ) and AdvisorShares Pure Cannabis ETF ( NYSE:YOLO ).

AdvisorShares is a leading sponsor of actively managed ETFs. Pure US Cannabis ETF (MSOS) is the only US-listed ETF dedicated solely to US cannabis exposure, with over US$616,000,000 in assets under management (“ AUM ”). Pure Cannabis ETF (YOLO) was the first US-based actively managed ETF focused on the global cannabis industry. YOLO and MSOS endeavor to achieve long-term capital growth by investing in some of the largest foreign and domestic cannabis and hemp-derived CBD companies. The two AdvisorShares ETFs have a combined AUM of over US$880,000,000 as of January 22, 2021.

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