The Morning Blunt
Volume 2| Issue 19
October 19, 2018
“ Your true success in life begins only when you make the commitment to become excellent at what you do.“
MedMen’s stock soared more than 60% this week and 81% in the past three months. Since the company announced it’s $682M acquisition of PharmCann, the biggest cannabis acquisition in the US to date the stock has skyrocketed.
Popular cannabis stocks fell across the board Wednesday as Canada moved into legalization. Tilray fell 6% followed by Canopy Growth and Aurora Cannabis, all of which are currently the hottest pot stocks among traders.
Cannabis is now legal in Canada however the impact on pot stocks wasn’t significant. But just how much was spent on cannabis the first day of legalization? According to BNN Bloomberg’s Jameson Berkow, Canada amazingly generated roughly $3M in sales in the first 12 hours.
Canada is the first industrialized nation to legalize cannabis on a recreational level, however some investors like Shark Tank host Kevin O’Leary refuse to invest in the sector as the US federal government still classifies cannabis as a schedule I narcotic. O’Leary interprets investing in cannabis a breach of federal RICO laws.
Canada’s Halo Labs Inc has entered into a supply agreement with Falcon International Corp. totaling 50-70 kilos per week of THC distillate oil used for vaping at the price point of $7.50 per gram. The deal is worth between $1.6M and $2.2M per month.
Though Canada’s fully legalized the consumption of cannabis, US border officials remain unchanged on their prohibition stance against cannabis and will deny entry with a lifetime ban to those who are suspected of consumption, distribution, or are believed to have any affiliation with pot.
Canadian pot firms are at a disadvantage competing against aggressive and capitalistic US companies. Further, Canadian cannabis companies are forced to abide by strict packaging regulations giving US companies a competitive branding edge on the market.
Canada’s legalization of cannabis may hurt poor farmer economies in developing countries who are unable to compete like those in Morocco and Jamaica who have risked the wraths of governments to maintain cannabis as a cash crop.
An upcoming meeting between the World Health Organization and the UN Commission on Narcotic Drugs could potentially impact the US decision on how to schedule CBD and cannabis. If the CND deregulates CBD under international drug control treaties will other administrative offices such as the DEA choose to follow recommendations?
Oregon Democratic Rep. Earl Blumenauer wrote an eight-page document appealing to the House Democratic Leadership to end prohibition on cannabis. Blumenauer’s document gives a step by step guide to legalization as early 2019 if democrats take the House.
It’s day two of legalization and Canada’s newly established cannabis recreation stores are running low on supply to keep up with the high demand triggered by the end of prohibition. The limited number of recreational stores are facing complete supply shortages only hours after opening.
Recent studies suggest cannabis could be beneficial in the treatment and prevention of type 2 diabetes. Multiple studies suggest that marijuana users are at a lower risk of diabetes diagnosis and even smaller waist size.
Legal weed in Canada means scientists, geneticists, and botanists can finally receive funding and conduct research on cannabis. Check out what cannabis advancements you can expect from post prohibition researchers.
Genetically modified cannabis could be the future of weed. Genetically modifying cannabis could result in more potent, resilient strains capable of deterring pests or less susceptible to molds.
The hype over hemp goes beyond mere CBD extraction. Companies have produced hemp omega proteins for food ingredients, hemp fiber that could replace metals and plastics, and bioplastics for building supplies.
With Cannabis being largely a cash business, retailers, cultivators, and laboratories all require security risk assessments to identify criminal threats, supply chain tampering, brand protections, and everything in between. Comprehensive security assessments and protocols can ultimately save a company millions.