Cannabis Stocks Mixed, Coca Cola Still Not Investing in Cannabis, & Colorado Lawsuit Could Have Big Impacts

The Morning Blunt

Volume 2| Issue 31
October 31, 2018

“Nine-tenths of wisdom is being wise in time.

–Theodore Roosevelt

Stock Market

Cannabis Stocks Could Fall Further

After large selloffs in the cannabis sector valuations are down 30-45%. Bloomberg’s Danielle Bochove talks with Lou Eccleston CEO of TMX Group Ltd. about the market correction.

Stocks Mixed Tuesday

Cannabis stocks were mixed Tuesday. Among the gainers was Aphria who was up 5.4% after the company announced it will begin trading November 2nd. Market Watch’s Ciara Linnane gives a rundown on how cannabis stocks fared.

Warning to Investors on Cannabis Favorites at the Robin Hood Investors Conference

Seeking Alpha’s Clark Schultz reports Lakewood Capital Management’s Anthony Bozza recommended investors short Tilray, Canopy Growth, and Aurora Cannabis at the Robin Hood Investors Conference.

Canopy Growth’s Growth

BNN Bloomberg’s David George-Cosh explains how Canopy Growth, now Canada’s largest cannabis firm, has used its investment from Constellation Brands to become more vertically integrated.

Small Cap Companies with Big Returns

1933 Industries Inc., The Tinley Beverage Company Inc., and iAnthus Capital Holdings are three small cap stocks that each have major US operations with strong one year returns.

Global News

Zion Research Predicts Global Medical Cannabis Market Worth $40.9B by 2024

Zion Research released a report predicting that the global medical marijuana market expected to reach $40.907B by 2024 growing at a CAGR of about 19.4% between 2018 and 2024. You can request a free sample of the report by following the link.

Canada Providing Blueprint for Legalization

According to Terry Taouss, president of Tidal Royalty, Canadian legalization will provide the US and other countries with a framework to see what works and what needs improvement in the transition from prohibition to legalization. Canada is providing a blueprint on how to legalize cannabis as well as the structure on how banking institutions, insurance firms, federal, state, and municipal governments, and other businesses will interact with the cannabis industry.

New Frontier Launches InterCannAlliance to Help Global Cannabis Industry

The analytics and data firm New Frontier Data, in conjunction with CannaTech and other leading companies, announced the development of InterCannAlliance, an organization dedicated to educating regional market and thought leaders on the cannabis industry risks, opportunities, and best practices. The first regional ICA symposia will be the Latin America ICA Symposium in 2019.

Coca Cola Officially Not Investing in Cannabis

Coca Cola’s CEO James Quincey discusses a recent acquisition of Costa Coffee and dispels cannabis rumors, saying the company is not interested in the cannabis industry and will not be pursuing partnership agreements at this time.

Coca-Cola CEO: Cannabis is not something we’re interested in from CNBC.

North American Cannabis Policy Brief

Marijuana legalization is a sloppy disarray of policy and ever evolving regulations. Forbes’ Mike Adams highlights the circumstances and current cannabis policies in the Canadian, US, and Mexico markets.

China Urges Travelers to Avoid Marijuana

China joined Japan and Korea in warning tourists traveling to Canada to avoid cannabis, China however did not threaten jail time for offenders unlike Japan and Korea.

US News

SIU Developing 5 Acre Hemp Research Field

Southern Illinois University of Carbondale created the Cannabis Science Initiative aimed at developing a program to support the growing cannabis industry. The beginning stages will kick off in spring of 2019 with a 5-acre hemp research field.

Colorado Property Value Lawsuit

A federal trial set to begin Monday in Colorado over property value could have rippling effects in the cannabis industry. Hope and Michael Reilly are suing their neighbor, a cannabis cultivator, over the smell of cannabis. The Reilly’s feel that the cultivation facility hurts their property value.

Insurance Companies Are Dropping People Who Work with Cannabis Businesses

Leaf touching cannabis businesses navigate strict limitations when seeking insurance, however businesses and individuals who happen to work with cannabis businesses can find themselves in a sudden gap in insurance, or in some cases jeopardizing their entire insurance portfolio.

Indus Raises $46M in Series B Financing

Indus Holding Company announced that it has raised $46M in financing in the Series B round that ended October 25th. The funds will be used for cultivation, extraction, manufacturing, sales, marketing, distribution, and general expansion.

Dr. Robb Farms Raises $24M for 3 Cultivation Facilities

Dr. Robb Farms announced that it has broken ground at the first of three cultivation facilities. The company raised $24M for the development and operation of the trifecta, each expected to yield 1,100 pounds of flower per month.

Canada News

Smoke at the Border

The mayor of Estevan Saskatchewan reported that local residents have been turned away at the border after admitting having once used cannabis. Though traveling across the border may be tricky, Estevan is looking to pull in cannabis tourism from the lower half. Estevan boarders North Dakota where cannabis is still illegal. Another report issued by China, Japan, and Korea warn out of country travelers to avoid cannabis.

Science

CBN Supplements Receive Patent

Cannabis Science Inc. confirmed receipt of Issued US Patent Number 9,763,991 for compositions of cannabinol (CBN) for treatment of neurobehavioral disorders, sleep disorders, anxiety, PTSD, and other target indications. Check out what the company hopes to achieve with their supplements combined with CBN aimed at minimizing symptoms of PTSD and sleep disorders.

CO2, Hydrocarbon, & Ethanol Extraction Method Comparison

Choosing the right extraction method for your company comes down to what you’re looking to accomplish with your machinery. Examining cost, quality, safety, and throughput efficiency, Marijuana Business Magazine asked experts to weigh the pros and cons of their chosen methods.

Quitting Cannabis Can Lead to Better Memory Cognition

Researchers at the Massachusetts General Hospital Center for Addiction Medicine in Boston found that subjects who abstained using cannabis for four weeks had mild improvement in memory test scores. The study found even light users experienced a drop in performance.