The Morning Blunt
Volume 2| Issue 1
October 1, 2018
“Definiteness of purpose is the starting point of all achievement”
–W. Clement Stone
The Canadian Cannabis Index LP rallied the month of September with a 22.6% gain after a short lull in August after Constellation Brands announced it’s investment into Canopy Growth. Check out a rundown of how Canadian cannabis stocks closed out the month.
According to Mitch Baruchowitz of New York investment firm Merida, ancillary cannabis businesses might be a better investment option than the volatile pot stocks that are all the rage. Merida invests in cannabis technology, testing, packaging, and equipment related to the cannabis industry.
Bruce Campbell of StoneCastle warned investors that he expects a steep pull back in cannabis shares due to high valuations. Cannabis firms are operating with high valuations, negative earnings and compounded losses.
Aurora Cannabis has had impressive growth, robust investment, built a vast and global network, and has solid infrastructure. Check out why The Green Fund is recommending this solid stock.
With US legalization lagging behind many producers are concerned that Canadian cannabis firms will dominate the US and global markets. Canadian firms are already cornering markets around the globe while also buying firms within the US recreational and medical industries.
Check out this four part podcast by Greenspoon Marder touching on regulation, requirements, and legal issues surrounding the cannabis industry. Colorado, Northern California, Southern California, and Florida are markets explored in the four part piece.
California Supreme Court approved a new rule of professional conduct allowing lawyers to assist clients in complying with state cannabis laws without being complicit in federal crimes. The rule does however warn to not assist clients in breaking laws.
California Gov. Jerry Brown signed three cannabis bills last week, one of which will allocate $10M to reparations for those negatively impacted by cannabis prohibition. The second law would allow cannabis to be used at festivals and public events provided the event obtains permitting. The third cannabis bill allows veterinarians to discuss cannabis treatment with clients for their pets.
Santa Barbara Sheriff’s Cannabis Enforcement Team destroyed 8,500 cannabis plants worth an estimated $4.3M after serving warrants at two illegal grow operations. No licenses were applied for by the grower.
To undo some of the damage done by the old prohibitive cannabis laws Seattle is vacating 542 misdemeanor charges that occurred prior to Washington’s legalization. While Seattle is only 7% black nearly half of the convictions were black, the effort hopes to also combat the racial disparity in the legal system.
Retailers are gearing up for legalization however many are expecting bare shelves for the first few weeks while cannabis production ramps up. While the transition from prohibition to legalization was a fast one, many in the industry are blaming Canada’s policy against importing cannabis.
Canada’s rush to legalization of cannabis on October 17th will be a work in progress for months to come. Legislation and proper regulation have not been implemented, and while there are attempts to pull from laws surrounding tobacco and alcohol, cannabis has it’s own unique circumstances to consider.
Cannabis Clinical Trials Begin
With cannabis making headlines regarding US cannabis research receiving governmental approval, researchers have been eager to begin clinical trials. Currently most of these trials are in the beginning phase however some have already shown promise. Take a look at the various clinical trials being conducted around the US.
CB Therapeutics in San Diego is embracing a cutting edge technique for cannabinoid production. Similar to brewing beer, CB Therapeutics brews large vats of yeast that ultimately yields cannabinoids. This process is sustainable as the ingredients are cheap for producers and isn’t subject to weather and environmental conditions. Further this method could replace traditional growing as it is also a faster method of production.
Data and technology are rapidly evolving the cannabis industry making it faster, more secure, and assists in regulatory compliance. Susan Gunelius details a few of the advancements technology has brought to the cannabis industry.
When considering cannabis cartridges for your vape pen there are several factors to consider including design, variation, longevity, cost efficiency, wick type, and if you prefer glass or metal. Check out what Royal Queen Seeds reports on cartridges.