The Morning Blunt
Volume 1| Issue 27
September 27, 2018
“If you’re great in this business you’re right six times out of ten.”
— Peter Lynch
Citron editor and founder and popular short seller Andrew Left intends to play both ends of the cannabis market. Left believes his short selling experience will be a beneficial standpoint in the development of a cannabis investment fund. The fund will take long and short positions in the market.
Up Cannabis and Green Tank Technologies entered a partnership agreement for the development of vaporizer hardware. Vaporizers will not be legal in Canada until some time in 2019. Up Cannabis plans to develop a private label vape pen for the upcoming legalization.
Horizons Marijuana Life Sciences ETF now has 49 companies after adding nine new companies to it’s holdings. Tilray, Namaste, and Aleafia were among those added. The top five cannabis firms in the ETF make up over half of the funds value.
Hexo Corp. is taking it’s company global by establishing a large scale cannabis production facility in Greece. Hexo is partnering with Qannnabos to catalyze a vertically integrated system that will cater to medical patients. Once regulations permit, the company plans to expand to France, United Kingdom, and other European markets.
Canadian cannabis company Flowr announced that it’s going to begin trading on the TSX Venture Exchange. Flowr raised CA$36 and completed a reverse takeover of a pool company previously listed on the TSX.
Supreme Cannabis’ subsidiary 7Acres entered into a supply agreement with Tilray for dried cannabis for the Canadian medical market estimated to be worth $9.3M.
Cannabis real estate might be a worthwhile investment according to Viridian Capital Advisors. Here are a few more key takeaways regarding M&As and capital raises.
Rep. Jake Wheatley D-Hill District in Pennsylvania has introduced a recreational cannabis bill. If passed the bill would allow for adult recreational use, allow citizens to grow up to six plants, and allow for edible products to be manufactured. The bill also calls for releasing incarcerated individuals, expunging criminal records, and reinstating drivers licenses.
Cannabis producers are laywering up after receiving abatement notices in Humboldt County. The notices give producers ten days to cease activity before issuing fines of $10,000 per day. Many farmers are struggling to afford licensure and permitting.
A new law in California allows municipalities to fine landlords for their tenant’s code violations pertaining to cannabis production. Previously the law gave violators time to correct the issue or resolve their facility, however lawmakers were dissatisfied and amended the measure to speed up the process.
The Seattle company Leafly removed it’s CEO Chris Jeffery recently over company management issues. Vice president Zack Hutson will take his place temporarily while a replacement is found.
Florida may receive it’s first online medical cannabis shopping portal called FlorPass by Alternate Health and Liberty Health Sciences. The e-commerce site will add convenience to consumer experience.
California based publication High Times purchased Seattle based Dope Magazine for $11.2M in cash and stock. The acquisition comes at a turning point for High Times as they intend to bring their company public in the coming months. Currently High Times has raised $5M of the $17.2M needed to list on the NASDAQ.
Adam Smith of Craft Cannabis created the platform One Fix Cannabis to fight for Oregon’s right to export cannabis to other states. Thousands of jobs and hundreds of millions of dollars are at stake. Smith hopes to apply pressure on the Federal Government.