The Morning Blunt
Volume 3| Issue 9
November 9, 2018
“ A goal should scare you a little and excite you a lot.“
On September 10th Aurora Cannabis (NYSE: ACB) announced its intent to purchase all outstanding shares of ICC Labs (NASDAQOTH: ICCLF) for CA$290M. On Tuesday Nov. 6th ICC shareholders voted in favor of the buyout. Motley Fool’s Sean Williams notes that despite Aurora’s aggressive acquisition campaign two reasons to be cautious of Aurora is the company is nowhere near peak production and the company’s ballooning outstanding share count could be upward of 1B shares.
Trulieve Cannabis Corp. (CSE: TRUL) announced Thursday that it has entered into agreements to acquire 100% of both Life Essence Inc. and Leef Industries LLC. These two acquisitions are expected to close when certain regulatory approvals are received and will represent Trulieve’s first operational ventures outside the state of Florida.
At a conference in Portugal, Tilray Inc.’s (NASDAQGS: TLRY) CEO Brendan Kennedy discussed with Fortune’s Robert Hackett the market’s volatility, expressing he felt that it was a distraction from the long-term value opportunities the sector offers.
Scott’s Miracle Gro (NYSE: SMG) was plagued by challenges in the cannabis industry in California as well as poor weather which prolonged the onset of the season, thus resulting in a loss of $130.6M in its fourth quarter.
New Cannabis Ventures hosted Emblem Corp. (TSXV: EMC) (OTC: EMMBF) CEO Nick Dean to discuss the company’s accomplishments, strategy, and outlook on the cannabis industry. Emblem entered into an agreement with Aphria (TSX: APHA) (NYSE: APHA) to receive 175M grams of cannabis over 5 years in what may be the sectors largest B2B supply agreement to date. Take a look at some of the company’s other accomplishments and how Dean views the sector.
Aphria Inc. (TSX: APHA) (NYSE: APHA) announced its intention to acquire CC Pharma GmbH, a leading distributor of pharmaceutical products to over 13K pharmacies in Germany. The transaction is expected to close in January 2019 and will strengthen the company’s medical cannabis operations and infrastructure in Germany.
Bears and bulls are fighting it out to determine the worth of Aurora Cannabis (NYSE: ACB) explaining the company’s wide price swings. InvestorPlace contributor Chris Lau gives a brief analysis on Aurora noting that expansion in the global economy will be an integral component to Aurora’s growth.
According to Jim Bloom of Insider Financial, Khiron Life Sciences Corp. (OTCMKTS: KHRNF) is a buy based on underlying solid fundamentals. Based on rapid expansion in Latin America’s burgeoning cannabis market, pursuit of growth opportunities underscores the company’s commitment to pursuing revenues and shareholders value. Bloom advises that any pullback in this stock will be an opportunity to buy.
Body and Mind Inc. (CSE: BAMM) (US OTC: BMMJ) announced the launch of their new brand King Cannabis which will be available in dispensaries throughout Nevada. King Cannabis currently offers Royal Oil distillate packaged in CCELL cartridges for use with CCELL vape hardware.
Based in Vancouver British Columbia, C21 Investments Inc. was officially granted permission by the State Service of Ukraine on Medicines and Drug Control to import, process, distribute, and re-export CBD extracts, concentrates, and products. C21 is also applying for permission to cultivate hemp and cannabis. Check out the latest developments from C21.
Though Queensland Australia is months behind schedule, the state’s first licensed medical cannabis farm, Medifarm, has begun cultivation with the aim to manufacture a series of affordable medications by early 2019.
Mexico’s Sen. Olga Sanchez Cordero submitted a 26-page bill that would permit individuals 18 and older to possess and use cannabis recreationally. The bill also would allow individuals to grow up to twenty plants.
After the resignation of Attorney General Jeff Sessions, President Trump announced that one of two candidates could be named, New Jersey Gov. Chris Christie or Florida Attorney General Pam Bondi. Both candidates have firm stances against cannabis reform.
California voters elected long-time cannabis allies Gov.-elect Gavin Newsom and legalization supporter Sen. Diane Feinstein. Races for House seats were mixed as cannabis critic Republican Rep. Steven Knight as well as congressional cannabis champion Rep. Dana Rohrabacher both lost their seats. Take a closer look for details regarding California’s midterms and what it means for cannabis.
DC Mayor Muriel E. Bowser (D) announced for her reelection celebration that she intends to introduce legislation to legalize the sale of cannabis. Currently DC allows the possession of marijuana but not the sale. Council member David Grosso (I-At Large) has already introduced legislation permitting the city to issue licenses for cannabis retailers.
Voters in communities across Wisconsin voted to legalize cannabis on over 16 referendums, however representatives of the state believe there’s not enough medical evidence for legalization asking voters to wait another ten years before passing legislation. A 2018 Marquette Law School Poll of Wisconsin voters found 61% of residents believe cannabis should be fully legalized and regulated like alcohol.
While stocks were sent soaring at the news that Attorney General Jeff Sessions resigned a loss by another Sessions could be a bigger win for the cannabis industry. Texas Republican Pete Sessions lost his seat in the US House of Representatives to more cannabis friendly Democratic candidate Colin Allred, a former NFL player.
Wednesday US Rep. Earl Blumenauer gave an interview discussing how election results were a huge bipartisan win for the cannabis industry on both a state and national level. With Michigan, Utah, and Missouri passing cannabis legislation, and the resignation of Attorney General Jeff Sessions, cannabis stands to undergo major changes. Several outspoken cannabis opponents were also ousted including US Rep. Bob Goodlatte and US Rep. Pete Sessions.
Voters of Kern County California rejected all three cannabis measures on Tuesday’s ballot, leaving twenty dispensaries in limbo. Without extensions by the Board of Supervisors those dispensaries could be permanently closed as early as November 30th. If granted extensions, the dispensaries will be open until the Spring of 2019.
Canna Law Blog has submitted public comment to the California Bureau of Cannabis Control expressing their opposition to the modifications proposed for cannabis licensees, one of which prohibits all licensing, white-labeling, and manufacturing agreements between two parties when one of those parties is not a licensed cannabis business. Comments were due by November 5th.
According to unofficial results released Wednesday by the county’s Registrar of Voters, Chula Vista voters approved Measure Q, a cannabis business tax with 64% of voters approving the ordinance. The council hopes that legalizing and regulating a legal market will raise funds to combat the prolific black market.
Avail Cannabis Clinic is on an expansion campaign with a move to sign a letter of intent with Express Aid Pharmacy in Barrie Ontario to open two family walk-in cannabis clinics The company also plans to open a location in Toronto and rebrand its Tweed Main Street location in Barrie by December 1st.
The Star’s Perrin Grauer reports cannabis shortages plaguing Canadian provinces are driven by more than production complications, slow issuance of licensure by Health Canada, and service-side problems compounded by Canada Post. According to the CEO of Biome Grow Inc. Khurram Malik the industry may not stabilize until 2020.
Canada Post announced that Quebec cannabis consumers were not affected by the data breach that impacted 4,500 Ontarians who purchased cannabis from the online Ontario Cannabis Store. Limited delivery data was accessed by an individual using OCS reference numbers. The individual shared the information with Canada Post and deleted it without distributing it further.
Whitby Ontario Police are investigating a home explosion east of Toronto. The officers believe the blast occurred when Jody Cormier, 48, was attempting to make cannabis oil with butane. The explosion left three men with non-life-threatening injuries. Cormier was charged with arson, disregard to human life, criminal negligence, and altering cannabis with an organic solvent. Cormier was released on a promise to appear in court.
Capna Systems specializes in innovative ethanol extraction methods, as opposed to CO2 or hydrocarbon, to harvest CBD from hemp. The process Capna developed yields a 98.5% pure CBD extract without the need for post-processing.
Tracey Mason of House of Saka Inc., an all-woman cannabis beverage company, is breaking the gender mold by straddling two male dominated industries: wine and cannabis. This week the company launched the first known cannabis-infused non-alcoholic champagne which will be available in Nevada and California markets in early 2019.
LeafLink launched a list of cannabis brands and products ranked by several categories including bestselling, fastest-growing, and best branding. With the listing, companies will receive a badge to use on their labeling and website to note the recognition.