Acreage Holdings Named in $400M Lawsuit, Midterms Mixed for Cannabis & Did Aurora Surpass Canopy?

The Morning Blunt

Volume 3| Issue 7
November 7, 2018

If opportunity doesn’t knock, build a door.

–Milton Berle

Stock Market

Did Aurora Surpass Canopy Growth?

Seeking Alpha’s Gary Bourgeault compares Aurora Cannabis and Canopy Growth in an analysis which predicts Aurora has overcome Canopy Growth, noting Aurora has officially caught up to Canopy after months of closing the gap. With demand for cannabis at an all-time high, Aurora’s current production capacity easily surpasses its competitors, positioning the company strategically at the top of the Canadian cannabis industry.

Acreage Holdings Named in $400M Lawsuit

Acreage Holdings, a multistate cannabis operator debuting on the CSE next week, has been named in a $400M New York lawsuit among several other defendants. NYCANNA is suing the parties, alleging that the owner of 25% of NYCANNA, now doing business as Terradiol NY, made efforts to deprive the plaintiff of his 25% of share ownership of equity.

Pot Stocks Rally Ahead of Midterm Results

With the democrats taking the House, the prospects of moving cannabis legislation through are much better. Pot stocks rallied ahead of Tuesday’s election results with Tilray up 5.8%, Canopy Growth climbed 6.2%, and Aurora Cannabis only moved .6%.

How midterm elections could impact the cannabis business from CNBC.

Reverse Takeovers Popular Among US Cannabis Firms

Many US based cannabis firms are going public on the Canadian Securities Exchange by way of reverse takeover. This occurs when a company purchases a publicly traded shell corporation and is a great strategy to enter the market quickly. US pot firms are utilizing this strategy to enter the market and avoid US federal law. Take a look at why some criticize this method of going public and some of the associated complications with reverse takeovers.

Aphria Enters Agreement with Rapid Dose to Launch Cannabis Oral Thin Strips

Aphria signed an exclusive agreement with Rapid Dose Technologies to launch a product line of cannabis infused oral thin strips. Thin strips offer easy dosage for patients and can be tailored to their needs. Thin strips may also offer a faster onset than pills and edibles.

Analysis: Cannabis Science

Analysts Buzz reports that with a market cap of over $122.5M, Cannabis Science is a highly liquid stock with a recent volume of 5M+ shares and a trading capacity of 7M+, registered activity of relative volume at 0.72. Check out the rest of the report on Cannabis Science and how the company adds up for day traders.

IO: Supreme Cannabis Company

The Supreme Cannabis Company stands to capitalize on Canada’s early legalization struggles as a company who didn’t over promise and under deliver. The company believes it will complete an expansion that will raise the company’s production yields from 13,333 kilograms to 50,000 kilograms. Supreme Cannabis Co. represents an opportunity for investors looking to take advantage of the sell off.

Khiron Life Sciences Surging as Mexico Approaches Legalization

The news that Khiron Life Sciences is entering the Mexican cannabis market has caused the company to surge 53.33% over the past three sessions. A well-timed announcement for the company that coincided with the news that Mexico’s Supreme Court ruled that an absolute ban on recreational cannabis was unconstitutional. Take a look at Midas Letter Benjamin Smith’s analysis of Khiron and why this stock could be interesting to investors.

Molson Coors: Canadian Cannabis Beverage Industry Worth $3B

Molson Coors CEO Mark Hunter announced that based on averages the company expects beverages to make up 30% of the Canadian cannabis market, amounting to an estimated $1.5B-$3B annually. Hunter believes the company’s partnership with HEXO has positioned Molson Coors to take a meaningful share of the Canadian segment when the edible market becomes legal in late 2019.

Wayland Group Expands to Columbia

Wayland Group announced that it was expanding its global footprint and has entered into a definitive agreement to acquire 100% of the outstanding shares of Colma Pharmaceutical SAS, a licensed producer and processor in Ibague Columbia.

Insiders: Cashing In Or Cashing Out?

Recreational cannabis has been legal in Canada less than a month, yet cannabis insiders and executives have begun selling off massive amounts of shares. Here is a list of cannabis insiders who have started dumping millions of shares in what seems to be an industry-wide insider sell-off.

Global News

Thailand to Decriminalize Weed

Efforts in Thailand to legalize medical cannabis have gained momentum, especially after the National Legislative Assembly has announced their intention of decriminalizing cannabis for “health reasons” by passing amendments to the 1979 Narcotics Act. This significant act could play a much larger role in legalizing cannabis for medicinal use in Thailand.

Could Medical Cannabis Pioneer the Way for Recreational Cannabis in UK?

Independent UK’s Ian Hamilton speculates that medicinal cannabis legislation will open the door to recreational cannabis, however the Home Secretary is adamant that the law change will not translate into further cannabis liberalization. There are however substantial financial firms looking for that exact outcome.

GPs to Prescribe Medicinal Cannabis in Jersey

According to BBC the people of Jersey will now have access to medical cannabis through prescriptions written by their GP. Deputy Montfort Tadier commented that GPs were already allowed to prescribe more dangerous and addictive substances.

Information Security in Cannabis

With licensed producers focused on cultivation and production, data protection practices can easily be overlooked, however dispensaries and clinics collecting personal information must hold themselves to the highest standards of information security. Common risks include public wi-fi, paper documents, smart devices, and email scams. Take a look at the article for tips on how to improve information security in your company.

US News

Net Element Launched Payment Processing Solution for Cannabis Industry

Net Element recently launched a compliant, secure payment processing solution for the cannabis industry, allowing businesses to accept payments through unconventional methods while remaining user friendly to customers.

Utah Guts Medical Cannabis Initiative

Right before Prop. 2 passed in Utah, a new version of the medical cannabis bill was introduced requiring that patients undergo a criminal background check. The revised legislation is more restrictive, for example, the bill will not allow patients to burn or smoke their cannabis.

200 Acre Raid in California

Federal investigators and Merced County sheriff’s deputies announced the seizure of over 194 acres of illegal marijuana farmland, where officials found hundreds of thousands of pot plants. The grow was said to be the biggest the county had ever seen.

Cannabis Voter Project Looking to Swing Elections

An arm of the New York advocacy group, the Cannabis Voter Project is a national organization dedicated to harnessing the power of pro-cannabis voters in every state. The Cannabis Voter Project website allows users to register to vote and to research their state candidates and their stance on cannabis policies.

Cannabis Business Taxes Due in San Luis Obispo County

The County of San Luis Obispo has announced the due date to pay Cannabis Business Taxes without interest or penalties is November 30, 2018. Jim Erb, County Auditor-Controller-Treasurer-Tax Collector, announced an effort to help cannabis businesses get into compliance by providing services to cannabis businesses.

How Midterms Could Affect Cannabis Regulation

Cowen senior research analyst Vivien Azer and CNBC’s Aditi Roy discuss how cannabis regulation, particularly in Utah, Michigan, Missouri, and North Dakota, could be affected by the midterm elections.

How midterm elections could impact the cannabis business from CNBC.

3 Trends for Cannabis Startups

According to My San Antonio’s Peter Vogel, venture capitalists are flocking to the cannabis market, noting three common biproduct themes: California is the hottest cannabis market in the world, the importance of strong branding, and that venture capital has increased in the sector.

Canadian News

5 of 51 Cannabis Stores Open in Saskatchewan

Due to supply shortages and a limited number of retail locations, only 5 of the 51 recreational cannabis stores in Saskatchewan are open three weeks after legalization. Online platforms can only be established with a retail location to back them, limiting the number of platforms to one for the province.

Science

Neurochemistry: Cannabinoids & Terpenoids

Wired’s Matt Simon explores the various complexities of how cannabinoids and terpenoids work together, or against one another in the case of CBD and THC, to produce a variety of different effects in the brain, primarily on the CB1 and CB2 receptors. When more information is known, these compounds potentially could be combined in a variety of ways to create new medications.

Cannabis & Type 1 Diabetes

Colorado researchers studied 450 patients with type 1 diabetes. Of those patients roughly 30% used cannabis. Compared to nonusers, cannabis users had about twice the risk for a serious complication known as diabetic ketoacidosis. This study was not a controlled experiment.

Adolescent Cannabis Use Alters Planning & Self-Control Centers of the Brain

Researchers at the University of Illinois at Chicago have found adolescent cannabis use may alter neuron function in the areas of the brain engaged in decision-making, planning, and self-control. The Society for Neuroscience presented the animal model study at Neuroscience 2018 focusing on the structural development of the prefrontal cortex, which controls high-level cognitive functions.

Other News

Electrical Engineering Planning for the Cannabis Industry

Today on NCIA’s Cannabis Industry Voice, Sunshine Design LLC’s Sonny Antonio discusses electrical engineering planning for the cannabis industry, providing third-party planning and liaison services to power companies.

Women in the Cannabis Sector

Cannabis Business Executive’s Shawna Seldon McGregor discusses the cannabis industry’s inclination to include women as a consumer market while failing to include them in the workplace. With only 27% of executives being women, representation is low in the cannabis industry. Worse, McGregor points out that media outlets tend to cover women in the cannabis sector differently than men, contributing to the overall gender bias of the industry.