The Morning Blunt
Volume 2| Issue 15
October 15, 2018
“Our chief want in life, is someone who shall make us do what we can. This is the service of a friend. With him, we are easily great.”
—Ralph Waldo Emerson
Aphria Inc.’s low cost cannabis production advantage could be disappearing through technological advancements on part of their competitors. While Aphria is much smaller than Canopy Growth or Aurora Cannabis, it’s revenue more than doubled last quarter, but that was largely due to limited partnerships and wholesales.
Veritas Investment Research analyst Stuart Rolfe made a public statement warning investors the end of the cannabis rainbow might be coming to an abrupt end. Rolfe initiated coverage on Aphria, Aurora Cannabis, Canopy Growth, and Cronos, advising investors to sell.
Though the growth of the cannabis industry might look like a bubble, it very well might be more stable than it looks. While speculators and retail level investors are trading cannabis stocks, companies like Molson Coors, Constellation Brands, and Altria are investing in long-term strategies and making billion-dollar investments in order to secure their foothold in the industry lending credibility to the notion that the canna bubble might be a boom after all.
Aurora Cannabis isn’t consistently profitable and looks as though they are spending freely to ramp up production, however Aurora just announced a gain of $372M in its annual report. Aurora has been on an acquisition rampage citing ten new key partnerships. Those key partnerships will be the driving force behind Aurora’s momentum moving forward in the industry.
Jim Cramer and Canopy Growth’s Bruce Linton discuss the company’s recent deal with the US Drug Enforcement Administration to import cannabis from Canada. Linton believes that cannabis will disrupt tobacco, alcohol, and pharmaceutical markets to the tune of $500B globally.
Just before Canada’s legalization, Facebook announced Friday that its ban on cannabis pages is finally over. The ban originated from Facebook users selling pot on the social media platform. Pages will be authenticated to be determined relevant in search results.
Elections and midterms can have significant consequences when it comes to regulations in the cannabis industry. Reforms on ballots across the US include cannabis policy reform, depenalization of local marijuana offenses, and legalization of possession.
Hawaii’s first cannabis testing facility, Steep Hill Hawaii has rejected 20-30% of cannabis that comes through its door. 95% failed for contaminants like yeast, mold, or bacteria.
Until Recently northern California’s robust black market has dominated the cannabis industry, however the transition from an underground market to a commercialized one remains to be seen in rural counties like Mendocino.
Arizona’s Kanna-Bosm is a unique cannabis mobile testing company capable of testing potency, terpenes, pesticides, and contaminants. The president of KB Labs Boaz Lerer has invested in the most up to date testing equipment and has a turn around of about 160 samples in a 24-hour period.
A recent decision to halt the production of cannabis candies and edibles was reversed Friday. The decision to ban candies and edible cannabis products was their appeal to children, however the decision was quickly reneged after push back from the public.
Canada was among the first countries to legalize cannabis putting it in a unique position to gain a global foothold in the industry. Check out why speed to the market is so critical, what the sector’s expected growth potential is projected to be, and how globally recognizable brands will keep Canadian cannabis relevant.
Prime Minister Justin Trudeau announced that Quebec government’s plans to raise the legal age for smoking cannabis to 21 would lead to a stronger black market. Trudeau’s goals are to eliminate a black market through legalizing and controlling a regulated market.
PathogenDx launched its first microarray test for the cannabis industry which can determine if a product exceeds state microbial limits, and if those microbes are pathogenic or benign. The one stop test should ensure more consistent and pure products
Cannabinoids may prove to be mildly beneficial in treating the symptoms of multiple sclerosis according to self-reporting from patients. Doctors are looking for more research to be conducted before making conclusions about the efficacy of cannabis as a treatment for pain management and other symptoms.