The Morning Blunt
Volume 2| Issue 16
October 16, 2018
“An entrepreneur tends to bite off a little more than he can chew hoping he’ll quickly learn how to chew it.”
Cannabis stocks traded up after news circulated that MedMen acquired PharmaCann and Altria announced its choice to invest in Aphria. After the $682M deal, MedMen is now the largest public cannabis company in the US.
According to Bloomberg it will only take a quarter or two to sort the winners from the losers in the cannabis industry. The best run cannabis firms will emerge as global cannabis powerhouses best positioned for international trade.
A frequently asked question is if the cannabis industry is legit, analysts say yes. Keith Speights, Shannon Jones, Sean Williams, and Todd Campbell weigh in on the excitement surrounding the industry.
Aurora Cannabis declined to purchase an additional 8% of The Green Organic Dutchman at a discounted rate of 10%. TGOD looks much riskier as an investment as they have no production guaranteed until mid-2019 and no current supply agreements in place.
According to Arcview Market Research spending on edibles in the US topped $1B last year, making edibles a relatively hot an untapped market. While beverage companies have moved into the sector however snack companies have yet to move in.
Cannabis stocks rallied after Canopy Growth bought into the US hemp market by acquiring researcher Ebbu of Evergreen Colorado Monday. Ebbu specializes in the purification and study of different cannabinoids.
Todd Campbell, Sean Williams, and Keith Speights warn of the possible pitfalls that cannabis companies could run into through the legalization transition; governments could vote against cannabis initiatives, demand could wane, or a variety of other obstacles that have yet to be seen.
Cannabis is a dirty industry that produces an average of 4.6 tonnes of carbon dioxide to every kilogram of cannabis produced. From water to electricity, cannabis is guilty of creating a huge carbon footprint.
Aphria Inc announced that it completed it’s first shipment of cannabis oil to its Argentinean based subsidiary ABP for clinical study on treating refractory epilepsy in children.
Canopy Growth’s CEO Bruce Linton went on a gentrification tirade in Jamaica where he told a silent audience his unpopular ideals about trickledown economics, while speculating that banking for the cannabis industry in the US would open-up as a Christmas present in early 2019.
Pot tourism has become a major economy for Colorado and other recreational states, likewise Michigan and other states on the brink of legalization could become tourist attractions for pot enthusiasts. Last year the state of Colorado raked in an estimated $247M in marijuana tax revenue with one study estimating tourists consumed 19 metric tons of pot.
From Monterey to Santa Barbara cannabis farmers hold more cultivation licenses than any other county in the state. Unfortunately, cut flower businesses and the Emerald Triangle who dominated the black market industry for decades are who suffer from recent legal developments.
The Oregon Equal Pay Act requires employers to provide the same wages and offer the same benefits to employees who are doing work of the same character. The Equal Pay Act goes into effect January 1st.
Though California’s LAX and Massachusetts’ Logan International both allow you to fly with a personal amount of cannabis TSA could report you to the authorities… who will likely let you go. Airport authorities advise those traveling with cannabis to please be mindful of local laws and those of your destination before carrying the product aboard.
A fluke in the system sent producers sideways when excise stamps came late. The stamps are unique to each province and are required to be placed at the seal of all cannabis products. However, due to the delay cannabis companies were forced to change packaging and seek out creative ways to seal the products last minute.
Take a look at some of the consequences from Canada’s transition into legalization, not everyone is a winner. While lawyers, branding firms, researchers, politicians, and cities might stand to benefit from these changes, landlords and craft cannabis companies may not be completely satisfied with legalization.
Some First Nations are likely to ban or restrict cannabis in Ottawa similar to alcohol under the federal Indian Act. To bypass the law a 51% vote is required of residents who attend the meeting.
Alberta’s Fort McMurray will have a policy on cannabis similar to alcohol according to Walter Ticas who advises employees to speak up if they feel differently days after consumption. Ticas has asked his staff to use their best judgement and not come to work when feeling impaired.
Cannabis Sativa Inc announced the approval of its patent for a cannabis lozenge intended to treat hypertension. The coconut oil-based lozenge has a rapid delivery system through the submucosal tissue and long-term effects.
The active ingredients in cannabis are often thought of as CBD and THC however recent studies have concluded that there is no significant difference in strains on part of the two compounds, leading researchers to conclude that other cannabinoids are responsible for unique experiences and characteristics exhibited by cannabis strains.