The Morning Blunt
Volume 2| Issue 3
October 3, 2018
“Begin somewhere; you cannot build a reputation on what you intend to do.”
India Globalization Capital has risen more than 450% in the last five session after it’s announcement of plans to produce a CBD infused energy drink called “Nitro G”. IGC was Wall Street’s cannabis stock choice on Tuesday.
Canadian cannabis frim Tilray is so volatile nearly any news in the industry can send it in either direction. Tuesday when CFO Hugh Johnston of Pepsi Co. told reporters that the company was not ready to invest in the cannabis industry, Tilray plunged 20%.
Aleafia Health Inc announced Tuesday that it has applied to list on the Nasdaq under the ticker symbol “ALEAF”. Listing on the major US stock exchange, Aleafia can expect more robust investment and take it’s place among a handful of major cannabis firms.
In a press release Oregon’s Halo Labs, a cannabis firm experienced in manufacturing concentrates prepares to go public on Oct. 3rd on Canada’s NEO exchange under the ticker “HALO”.
Aurora Cannabis has potential for immense growth when you take into account their global presence, low debt ceiling, and their head to head competition with industry gold standard Canopy Growth. Aurora may need to seek outside investment in order to remain competitive, however their bootstrap approach has made them a stock favorite.
Puration Inc. has an incredible startup story. Initially in the water purification market, Puration changed gears in 2017 when it released it’s first CBD infused workout recovery drink EVERx at Arnold Schwarzenegger’s Arnold Sports Festival skyrocketing company sales 600%. Recently Puration released their Q2 financial reports reflecting a 594% increase in revenue compared to the same quarter last year.
Seeking Alpha’s Villamayor Capital argues that New Age Beverage Corporation is undervalued trading at only 2x their forward sales. The stock does carry some financial risk as a result of their recent acquisitions, however the market opportunity is significant.
According to the SEC cannabis stocks and crypto stocks have are very similar in that they are high reward, high risk stocks that attract millennials. Both of these sectors also receive a great deal of media attention which attracts fraud and drives volatility.
According to Yahoo Finance’s Meredith Taylor, the top five cannabis stocks to watch are Canopy Growth Corp, Scythian Biosciences, Tilray, Aurora Cannabis Inc., and Scott’s Miracle-Gro.
Tom Zuber of Marijuana Venture reports the importance for cannabis businesses to establish their intellectual property patents before companies begin battling over plant rights. Zuber argues that whomever wins the patent war will ultimately win the market war.
Patents are well known forms of intellectual property which are released to the government and the public with a time limit. However trade secrets are information that is kept secret and part of it’s value is it’s secrecy. Trade secret protections can be more valuable than patent protections, take a look at what Canna Law Group has to say.
As regulations around cannabis form and the global market legalizes, general counsel is becoming increasingly popular. In house attorneys can assist in regulatory compliance, M&As, contracts, and navigating ever changing policies. Take a look at what other things in-house counsel can offer.
South African Durban based Poison City Brewing announced it’s first cannabis infused beer. Growing is not yet legal in South Africa so the craft brewery is importing from Germany and Eastern Europe.
Marijuana Business Daily interviewed pro-cannabis voice and executive director of California Grower’s Association Hezekiah Allen about the medical cannabis cultivation in California. Allen believes that co-ops have the best chance at competing with large scale firms while also maintaining business autonomy.
Bob Troyer a US attorney of Colorado wrote a negative review of the cannabis industry referring to the commercialization of it as a public safety concern. In the article Troyer asks officials to consider a shift from cracking down on illicit businesses and focus on licensed growers.
Liberty Health Sciences surged higher than it had in eight months on Tuesday while Trulieve Cannabis Corp. wasn’t far behind. Ending their quarter August 31st Liberty reported a 95% increase in sales revenues correlating with their increase in patients. Trulieve was up over 17% Tuesday closing out their month with a 299% increase.
MedMen Enterprises entered an agreement with WhiteStar Solutions LLC. to acquire Monarch in their expansion into Arizona. Monarch holds a medical cannabis license and is also a dispensary. MedMen also acquired Omaha Management Services LLC for cultivation and processing operations, as well as acquired WhiteStar’s co-manufacturing and licensing agreements with Kiva, Mirth Productions and Huxton.
Medical cannabis for cancer care patients is on the rise in Illinois. In the last year patient numbers have nearly doubled. Cannabis can treat several symptoms including pain, nausea, sleeplessness, and improve appetite.
The NCIA’s Quarterly Cannabis Caucus will be at the Embassy Suites in Boulder Colorado. The caucus will bring together industry executives, policymakers, movement leaders, and regulators to discuss industry related topics and the NCIA’s efforts to advance the industry forward.
CanopyBoulder a venture investment fund and business accelerator invested $300K into ten cannabis startups, including LA Cannabis News. Canopy Boulder assists non-plant touching ancillary businesses grow and scale in their startup stages. Companies are handpicked to receive $30,000 and get to participate in a 16 week accelerated course exploring business models, value propositions, marketing, and fundraising.
Legalization day may mean many of Canada’s police forces will be under staffed and lack a drug screening device for the detection of cannabis. To exacerbate the problem, only 825 drug recognition experts exist in the country. Police officers and citizens are concerned for public safety as efforts to mend the situation are slow going.
Researchers at the University of Saskatchewan are undergoing a three year study into the effects cannabis has treating symptoms of dementia. The study hopes to reduce aggression, anxiety, sleeplessness, pain, and increase appetite and cognitive stabilization.