Officials Call for Cannabis to be Federally Rescheduled, Cannabis Tax Revenues Overwhelm IRS, PLUS Products #1 Cannabis Brand in California

The Morning Blunt

Volume 3| Issue 16
November 16, 2018

“Don’t let yesterday take up too much of today.

–Will Rogers

Stock Market

PLUS Products Ranked #1 Cannabis Brand in California in Q3

According to BDS Analytics and Headset Q3 2018 retail sales data, Plus Products Inc. (CSE: PLUS) is the #1 best-selling cannabis-infused edibles brand in California. PLUS Sour Watermelon Gummies and PLUS Blackberry & Lemon Gummies are the #1 and #2 best-selling branded products across all categories in California including flower, vaporizers, edibles, and topicals.

3 Cannabis Stocks About to Explode

Nasdaq’s David Goodboy’s lists his reasons for choosing Innovative Industrial Properties (NYSE: IIPR), Tilray (NASDAQ: TLRY), and CV Sciences Inc. (NASDAQ: CVSI) as his top three cannabis related stocks producing revenues.

Canopy Growth Shares Bounce After Disappointing Earnings Report

Canopy Growth Corp. (NYSE: CGC) recovered on Thursday, a day after a slide based on news the company posted a loss in its first quarter since cannabis was legalized in Canada. CEO Bruce Linton goes into the factors that led to the loss.

Davis Rea’s CEO is Bullish on CannTrust

The chairman and CEO of Davis Rea, John O’Connell, discusses with BNN Bloomberg’s Catherine Murray why he finally bought CannTrust Holdings Inc. (OCTMKTS: CNTTF) as his first cannabis stock.

Acreage Holdings Goes Public on the CSE

Acreage Holdings (CSE: ACRG.U) joined the trove of US pot stocks flocking to the Canadian Securities exchange Thursday, after completing a deal to go public that values the company at $2.8B, via reverse takeover. With former House Speaker John Boehner and former Massachusetts Gov. Bill Weld on the board, Acreage Holdings raised $314M from nearly 35 institutional investors.

Kali Inc. Acquires NCM Biotech to Enter Canna-Pharma Market

Kali Inc. (USOTC: KALY) announced the finalization of the acquisition of NCM Biotech, a developer and owner of a patented cannabis extraction process. NCM Biotech’s research and ongoing pharmaceutical developments come with the acquisition.

MediPharm Labs & Supreme Cannabis Enter Into Supply Agreement

MediPharm Labs Corp. (TSXV: LABS) announced its subsidiary MediPharm Labs Inc. has entered into a Cannabis Concentrate Program Agreement with Supreme Cannabis Company Inc. (TSXV: FIRE) (OTCQX: SPRWF), where Supreme Cannabis will supply 1,000 kilos of cannabis trim annually to MediPharm for the extraction and production of cannabis oil.

Global News

Half of the Biggest Cannabis Firms Traded in Canada are US Based

Half of the 10 largest cannabis firms trading in Canada are US based including MedMen Enterprises Inc. (OTCMKTS: MMNFF), Curalead Holdings Inc. (OTCMKTS: LDVTF), Green Thumb Industries Inc             (OTCMKTS: GTBIF), Trulieve Cannabis Corp. (OTCMKTS: TCNNF), and Charlotte’s Web Holdings Inc. (OTCMKTS: CWBHF).

Leading US based medical cannabis firm Columbia Care LLC announced that the company’s application for licensure in Malta has been approved by Malta Enterprise, the country’s economic development agency. Upon completion of final regulatory steps, Columbia Care will be able to import, export, cultivate, process, and distribute medical cannabis.

Sproutly Canada Announces Partnership with Caribbean’s Largest Medical Cannabis Producer

Sproutly Canada Inc (OTCMKTS: SRUTF) announced it has signed a letter of intent to establish a joint venture with the Caribbean’s largest cannabis producer Global Canna Labs Limited. The joint venture will focus on developing, producing, distributing, marketing, and selling cannabis-infused beverages, edibles, and topicals derived from Sproutly’s fully licensed APP Technology.

US News

Cannabis Tax Revenues Overwhelm IRS

The US government collected roughly $4.7B in taxes last year on nearly $13B in revenue from legal cannabis firms. Most cannabis firms have no access to banking solutions because of federal regulations, leaving cannabis firms to pay their taxes in cash. The IRS is paying $1.7M to a Virginia based company to handle large cash payments for processing cannabis federal taxes.

National League of Cities Calls for Federal Cannabis Rescheduling

The National League of Cities, an organization empowering local governments and representing over 19,000 cities and towns across the US, passed two resolutions relating to cannabis. The first calls to action President Donald Trump to resolve the conflict between the federal government and financial institutions in a way that results in the cannabis industry having access to banking systems. The second, calls for the removal of cannabis from the list of Schedule 1 Drugs, asking that the power be given to the states to determine legality and regulation.

California Cannabis Tax Revenues Increase to $93.1M in Third Quarter

The California Department of Tax and Fee Administration announced $93.1M of tax revenue, including state cultivation, excise, and sales tax, for the third quarter was a result of cannabis sales which it received through October 31, 2018. Tax revenues collected by each jurisdiction were not included.

Eaze Expands CBD Delivery Service to 41 States

Eaze, a California based cannabis delivery service, announced Wednesday that the company will begin shipping non-psychoactive cannabidiol products across the US to 41 states including Washington DC.

Cannabis Delivery Services Struggle to Operate Legally Amid Regulation Changes

Out of the hundreds of medicinal cannabis delivery services in San Luis Obispo County less than a handful are licensed by the state of California. Currently there are three state-licensed cannabis businesses in SLO: one medicinal delivery service and two recreational storefronts.

Fresno California Says Yes to Cannabis Tax

Tuesday republican voters in Fresno California approved Measure A, the city’s cannabis business tax, with 70% of the vote, a move that is completely out of character for a conservative voting bloc. The approval of Measure A is an indication that attitudes toward cannabis are changing.

Canadian News

Canada’s Legal Weed Shortages Could Continue Until 2020

Cannabis industry experts are blaming strict regulations for nationwide supply shortages plaguing dispensaries following Canada’s legalization. Supply shortages are expected to be seen into parts of 2020. Shortages have some retailers looking to the black market for assistance in the interim.


Beleave Develops Water Soluble Cannabis-Infused Powder & Sugar

Beleave Inc. (CSE: BE) (OTCQX: BLEVF) announced that it has developed water soluble cannabis-infused powder and sugar products to prepare for the adult recreational cannabis-infused food and beverage market next year.