Stock Market

The Morning Blunt

Volume 4|Issue 10
December 10, 2018

Farm Bill Expected to Pass Today

Global News Wire  // 12.7.18

With the expected vote and passage of the 2018 Farm Bill on Monday, hemp and CBD stocks are expected to skyrocket. The Farm Bill will legalize the cultivation of hemp and is expected to also allow for the federally legalization of CBD. GW Pharmaceuticals (OTC: GWPRF), CV Sciences (OTC: CVSI), Aurora Cannabis (NYSE: ACB), Cannabis Sativa Inc. (OTC: CBDS) and American Premium Water Corporation (OTC: HIPH) are CBD and hemp stocks expected to soar today.

Cronos Announces CA$2.4B Strategic Investment from Altria

Market Watch // 12.9.18

Friday Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) rallied 24% after the company announced that it entered into a subscription agreement with Altria Group (NASDAQ: MO). Altria has agreed to invest approximately CA$2.4B of equity into Cronos on a private placement basis in exchange for common shares in the company. Altria will also receive warrants of Cronos that if fully exercised would provide the company with an additional CA$1.4B in proceeds. The shares issued in the subscription agreement will result in Altria holding approximately 45% ownership interest in Cronos Group.  

A Look At Dilution Aurora, Tilray, & Canopy

Motley Fool  // 12.9.18

Canadian cannabis firms Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) have seen their stocks perform very differently. All three companies have issued convertible debentures and convertible notes to raise money. These start as loans but can convert to stock, diluting company shares. With companies like Aurora buying up as much real estate as they can, more dilution is likely to come.

Will Cannabis Stocks See Profits in 2019?

Motley Fool  // 12.9.18

Despite the record-breaking year for the cannabis industry, Horizons Marijuana Life Sciences Index ETF (NASDAQ: HMLSF), the very first cannabis ETF, is down 35% year-to-date. According to Motley Fool’s Sean Williams, major cannabis firms will be spending liberally as they expand globally and build their brands. These added costs will make them less likely to be profitable any time soon. Sales growth is being outpaced by cost growth and is likely to remain that way throughout 2019.

Danny Moses Talks Cannabis Stocks

Benzinga  // 12.7.18

Danny Moses, a short-seller who betted against collateralized debt obligations and was documented in Michael Lewis’ book The Big Short, was appointed the third independent member of Merida Capital Partners in October. Moses considers the most interesting opportunities in the cannabis sector to be in private equity. Take a look at why Moses is bullish for the cannabis industry.  

Trulieve: A Company Worth Monitoring

Forbes  // 12.9.18

Florida’s Trulieve Cannabis Corp. (OTCMKTS: TCNNF) generated revenue in excess of $28M in the third quarter. Trulieve’s revenues in 2017 amounted to $19.7M. With $67M on the books, Trulieve is projected to rake in $100M in 2018. The company has executed extremely well, and investors are more focused on the limitations of Florida’s market than the company’s need to expand to new states.


Liberty Health Sciences Reports $3.2M Revenue in Q3

The Seed Investor // 12.7.18

For the quarter that ended on November 30, 2018, Liberty Health Sciences Inc.’s (CSE: LHS) (OTCQX: LHSIF) quarterly revenue increased 45% totaling $3.2M. The company’s fiscal year-to-date revenue totaled $6.5M. During the quarter, Liberty Health’s patient count increased 46% to approximately 14,500 people.

iAnthus Patiently Waiting on Pending Acquisition of MPX

Seeking Alpha // 12.9.18

iAnthus Capital (OTCQX: ITHUF) released its Q3 financial report reflecting a quarterly revenue of $1.1M, an increase from Q2 revenue of $533K. The company announced the acquisition of MPX Bioceutical (OTCQX: MPXEF) in October, a transitional moment for the company. Seeking Alpha’s Cornerstone Investments discusses how this acquisition will result in a combined entity that rivals any of the top US competitors.

 



The Morning Blunt

Volume 4|Issue 7
December 7, 2018

Stock Market

Canadian Cannabis Stocks Plummet in Response to Hints of Recession

Motley Fool // 12.6.18

Canadian cannabis stocks plummeted Thursday after news circulated about the growing concern for the health of the global economy. Top economists warn the US economy could enter a recession by 2020. The claim is largely supported due to the yield of the five-year treasury note falling below that of the three-year note last Monday. Aurora Cannabis (NYSE: ACB), Canopy Growth Corp. (NYSE: CGC), and Cronos Group (NASDAQ: CRON) all fell at least 10% in pre-market trading.

Altria Unlikely to Invest in Canadian Cannabis Sector

Seeking Alpha // 12.6.18

Rumors regarding Altria Group’s (NSYE: MO) interest in the cannabis industry may be far reaching according to Seeking Alpha’s Grant Beaty. With most of the company’s revenues generated in the US, Altria has explicitly stated that it will not invest in the sector until cannabis is federally legal in the US. Further, Canadian cannabis companies trade at huge valuations that are disproportionate to the value they’d bring to Altria.

Acreage Holdings to Acquire Edibles Company For $160M in Stock

Market Watch // 12.6.18

Acreage Holdings Inc. (OTCMKTS: ACRZF) (CSE: ACRG.U) announced Thursday that the company intends to acquire cannabis edibles manufacturer Form Factory Inc. for $160M in stock. Acreage was up 4.4% on the Canadian Securities Exchange at the end of trading on Thursday. The company expects the transaction to close in the first quarter of 2019.

TILT Holdings Acquires Two Cannabis Companies For $90M

New Cannabis Ventures // 12.6.18

TILT Holdings Inc. (CSE: TILT), a vertically integrated infrastructure and technology platform focusing on the cannabis industry, announced the acquisition of two companies, Blackbird Holdings Corp and Standard Farms, to expand the company’s cultivation and logistics capabilities.

Cresco Labs Enters Massachusetts Cannabis Market

New Cannabis Ventures // 12.6.18

One of the largest vertically integrated cannabis firms in the US, Cresco Labs (CSE: CL), announced a definitive agreement to acquire 100% of the share and membership interests of Hope Heal Health Inc. and an affiliated real estate entity. This segue into the Massachusetts market will add key assets to the company’s national footprint.  Hope Heal Health assets include state licensing and registration that will allow for cultivation, manufacturing, processing, and the ability to establish and operate a dispensary.

Chemistree Technologies Acquires Global Rights to Sugarleaf Cannabis Brand Outside WA State

Proactive Investors // 12.6.18

Thursday Chemistree Technologies Inc. (CSE: CHM) (OTCMKTS: CHMJF) announced that it has signed an agreement with Sugarleaf Farms to acquire the global brand and marketing rights to the Sugarleaf brand outside of Washington.



The Morning Blunt

Volume 4|Issue 6
December 6, 2018

Stock Market

Cannabis Shorts Gain $157M After Tilson Conference

Bloomberg // 12.5.18

Despite the expense, shorts gained after the Whitney Tilson Conference in New York on Monday. According to Ihor Dusaniwsky, the director of financial analytics firm S3 Partners, as demand to short cannabis stocks grows, the cost to borrow and the frequency of recalled shares is rising. Cannabis stocks handed shorts a $157M mark-to-market gain on Tuesday, driven by losses in Canopy Growth Corp. (NYSE: CGC), Aurora Cannabis (NYSE: ACB), Tilray (NASDAQ: TLRY), and Aphria (NYSE: APHA).

Aphria Vows Rebuttal While Short Seller Grego Speaks Out Against the Company  

CBC // BNN Bloomberg // 12.5.18

Aphria (NYSE: APHA) shares were falling in premarket trade Wednesday before a short rally. This episode of volatility comes from a report issued by Quintessential Capital Management’s Gabriel Grego warning shareholders about fraudulent and worthless assets the company acquired. SOL Global Investments Corp., the company who sold Aphria their questionable cannabis holdings, issued a statement defending Aphria’s acquisitions. Aphria has vowed to give a line-by-line rebuttal to Grego’s report.

Curaleaf Initiates Stock Buyback

Midas Letter // 12.5.18

Curaleaf Holdings Inc. (CNSX: CURA) (OTCMKTS: CURLF) issued a press release announcing its intention to commence a normal course issuer bid to purchase up to $50M of common stock. Over the past seven trading sessions Curaleaf has lost 36.72% of its value. All shares purchased by the company will be cancelled upon purchase, reducing the number of outstanding shares. Analysts question if other licensed producers will follow the company’s lead and initiate buybacks.

TILT to Begin Listing on CSE Today

Business Wire // 12.4.18

The first vertically integrated infrastructure and technology cannabis firm, TILT Holdings Inc. is planning nationwide growth across the US. The company announced that it will commence trading on the Canadian Securities Exchange today under the ticker symbol TILT.

Canadian Consolidation Targets

Small Cap Power // 12.5.18

With the share-price slump the surrounding the cannabis industry, rumors of consolidation are emerging. Stock-price weakness has turned Organigram Holdings Inc (TSXV: OGI), Aleafia Health Inc. (TSXV: ALEF), and Beleave Inc. (CSE: BE) into three potential takeover targets.

Cannabis Stocks Down Wednesday

Pot Stock News // 12.5.18

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) fell 8% to $31.45 leading the stock sell-off Wednesday. Aphria (NYSE: APHA) (TSX: APHA) was down 15% and Aurora Cannabis (NYSE: ACB) (TSX: ACB) fell 9%.

MJardin Group Announces $6M Investment in DNA Genetics

New Cannabis Ventures // 12.4.18

Cannabis management firm MJardin Group Inc. (CSE: MJAR) announced the closing of a $6M minority investment in OG DNA Genetics Inc. as part of a $35M financing completed by DNA Genetics last week.



The Morning Blunt

Volume 4|Issue 5
December 5, 2018

Stock Market

Aphria Plummets After Company Disputes Short Seller

Barrons // 12.4.18

Aphria (NYSE: APHA) and most marijuana stocks were down Tuesday after a report from Quintessential Capital and Hindenburg Research called the company a shell game that left its shareholders holding worthless assets. The report also claimed Aphria had connections with boom-bust stock Riot Blockchain (NASDAQ: RIOT). The company and analysts came to the company’s defense rebutting the short seller, however the stock was halted for premarket trading for the news.

KushCo Holdings A Must-Own for 2019

The Motley Fool // 12.3.18

California-based KushCo Holdings (NASDAQOTH: KSHB) reported its fourth-quarter and year-end financial results, with full-year sales soaring 177% to $52.1M. Though it might take the company a year or two to become profitable on a recurring basis, but the Motley Fool’s Sean Williams considers the stock a “must own.”

Origin House to Buy Key Assets of California Cultivator Cub City

Market Watch // 12.4.18

The registered business name for Canada-based CannaRoyalty Corp. (OTC: ORHOF), Origin House announced Tuesday a deal to buy certain assets of California-based cannabis cultivator Cub City LLC for $7.03M. As part of the deal, Origin House will acquire a cultivation facility with a production capacity of 1,400 kilograms of flower per year.

Tilray Invests $2.9M in Canadian Cannabis Retailer Westleaf Ahead of Public Listing

New Cannabis Ventures // 12.4.18

IGC Resources Inc. (TSXV: IGC.H) and Westleaf Cannabis Inc. announced the closing of $20M financing which includes a $2.9M strategic investment from Tilray (NASDAQ: TLRY). Westleaf intends to roll-out its differentiated cannabis concepts across Canada focusing on customer experience and branding. IGC received conditional approval from the TSX Venture Exchange for the proposed RTO transaction.

Aurora Launch Softgel Capsules

Growth Op // 12.4.18

Aurora Cannabis (NYSE: ACB) has begun shipping cannabis softgel capsules for the Canadian medical and recreational markets. With a production capacity that could reach 1.4M capsules per week, the company will begin exporting the softgels to international markets in early 2019.

Emerald Health Receives License for Endocannabinoid Products

Nasdaq // 12.4.18

Emerald Health Therapeutics Inc. (TSXV: EMH) (OTCQX: EMHTF) announced its joint venture Emerald Health Naturals, has received product licenses from Health Canada to sell proprietary products designed to support the endocannabinoid system. The product line has no cannabinoids and is designed to impact stress, anxiety, restless sleep, pain, and other conditions.



The Morning Blunt

Volume 4|Issue 4
December 4, 2018

Weed Stocks

Altria in Talks to Acquire Cronos Group 

Marlboro cigarette manufacturer Altria Group Inc. (NYSE: MO) has entered into discussions regarding the acquisition of cannabis producer, Cronos Group Inc. (NASDAQ: CRON). No deal has been reached at this time. Altria has also been rumored to be looking to acquire a minority stake in Juul, an e-cigarette company.

Aphria Crashes After Rumors of Over Valued Buyouts Fraudulent Financial Reporting 

Monday, short seller Quintessential Capital Management’s Hindenburg Research alleged Aphria Inc. (NYSE: APHA) insiders used funds from dilutive share issuance to complete unfair acquisitions. Among the numerous allegations, Hindenburg said Aphria was guilty of making overvalued buyouts and posting fraudulent financial reports.

Cannabis Stocks on the Move

Investor Ideas Potcast features stocks to watch, cannabis news, and insights from inside players, thought leaders, and experts. This potcast features updates on 48North Cannabis Corp. (TSXV:NRTH), Canopy Growth Corporation (TSX:WEED) (NYSE: CGC), National Access Cannabis Corp. (TSXV: META), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Khiron Life Sciences Corp. (TSXV: KHRN), (OTCQB: KHRNF) and Namaste Technologies Inc. (TSXV: N) (OTCMKTS: NXTTF).

New Age Beverage Soars 18% After Announcing Acquisition of Morinda 

New Age Beverage Corp. (NASDAQ: NBEV) skyrocketed 18% in premarket trade on Monday. The Colorado CBD company announced a deal to buy Utah-based Morinda Inc. for $85M.

Aristides Capital Takes Up Short Position in Tilray 

Monday, at the Kase Learning Short Selling Conference in New York, Chris Brown, a partner at long-short firm Aristides Capital, announced his firm has opened up a short position in Tilray (NASDAQ: TLRY). Brown called the cannabis industry a commodity business, and predicted the price of raw cannabis would come down aggressively over time. Tilray fell 2.7% after the hedge fund pitched its position in the company.

Innovation Shares Files Registration for New Cannabis ETF

Innovation Shares filed a registration statement for a new cannabis ETF earlier this week. The ETF would use a broker-dealer as its custodian rather than a bank. Privately traded broker-dealers are capable of holding stocks on behalf of an investment company without the federal regulatory risks, making them perfect custodians.

3 Cannabis Stocks That Turned An Actual Profit

Three cannabis stocks turned a legitimate profit in their recently ended quarter. Though Innovative Industrial Properties (NYSE: IIPR) revenues were only $3.93M, the low fixed costs of a REIT have allowed the company to be healthfully profitable. Trulieve Cannabis (NASDAQOTH: TCNNF) recognized $28.3M in sales and Charlotte’s Web Holdings (NASDAQOTH: CWBHF) produced an operating profit of $4M.

48North Acquires Good & Green, Appoints Co-CEO, & Fulfills $10M Private Placement

48North Cannabis Corp (TSXV: NRTH) announced Monday that it has completed the acquisition of Good & Green. The company also completed a $3M strategic investment financing agreement with Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) fulfilling a $10M private placement. As part of the acquisition, 48North also appointed Jean VanderMarel as co-CEO and a member of the company’s board of directors.

Sunniva to Acquire LTYR Logistics for California Distribution 

In an all-stock deal, Sunniva (OTCQB: SNNVF) announced that it will acquire San Diego based LTYR Logistics for up to CA$7.9M. LTYR will add a major piece to Sunniva’s vertically integrated seed-to-sale operations in California.



The Morning Blunt

Volume 4|Issue 3
December 3, 2018

Weed Stocks

The $22B Market That Canada Might Gain Access To

Thursday four leading Farm Bill negotiators from the House and Senate announced that they had reached an agreement in “principal.” If passed, the Farm Bill will legalize industrial hemp, potentially a $22B industry. Companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth Corp. (NYSE: CGC) have been unable to enter the US cannabis sector. If the Farm Bill passes, Canadian cannabis firms will be free to enter the US hemp market.

North American Marijuana Index Mixed on Friday

Closing November strong, CV Sciences Inc. (OTCQX: CVSI) was a top gainer with shares up nearly 8% to $5.31 on the North American Marijuana Index Friday. MariMed Inc was up 2% to $4.09 and GW Pharmaceuticals climbed almost 1% to $122.99. MedMen Enterprises (CSE: MMEN) tumbled 9% and Isodiol International (CSE: ISOL) fell 10% in the index. Tilray (NASDAQ: TLRY) fell nearly 4% and Aurora Cannabis (NYSE: ACB) dipped 0.5%.

US Cannabis Operators Fall 5.8% in November

The month of November began with an inaugural 24% rally with momentum from the elections, however the American Cannabis Operator Index ended up falling 5.8% by the end of the month.

Global Cannabis Stocks Decline 10% in November

Global cannabis stocks, as measured by the Global Cannabis Stock Index fell 10% in November to 80.32. The index has declined 43.5% in 2018 but is still up 41.3% from October 2017.

Canadian Cannabis Producers Plummet 14.8% in November

After sinking more than 25% in October, the Canadian Cannabis LP Index lost another 14.8% to 799.72. A series of unfortunate events and failed deals has left this index down 20.4% in 2018  and only 9.5% above the August lows. For December the overall index had no changes.

GW Pharmaceuticals Plunges Despite Accomplishments 

Despite GW Pharmaceuticals’ (NASDAQ: GWPH) long list of achievements the stock is struggling. The company is down 35% and the Arora Report is calling GW Pharmaceuticals a buyout target.

Cresco Labs Approved for CSE Listing

Cresco Labs Inc., formerly Randsburg International Gold Corp., announced that its subordinate voting shares have been approved for listing on the Canadian Securities Exchange under the symbol CL. The company will begin trading today.

TILT Goes Public on CSE Announces 

With recreational cannabis sales off to a lucrative start in Massachusetts, Boston-based cannabis firm TILT decided the company is going public on Tuesday. The company raised $119M in an equity round of funding and will be listed on the Canadian Securities Exchange under the symbol TILT.



The Morning Blunt

Volume 3|Issue 30
November 30, 2018

Stock Market

Canopy Worth Twice What Aurora is Worth

According to Motley Fool’s Sean Williams, Canopy Growth’s (NYSE: CGC) market cap is worth two Aurora companies, proving that production capacity isn’t everything in the cannabis industry. Canopy Growth has many advantages over Aurora including a brand partnership with Constellation Brands (NYSE: STZ) making the company a buyout option. Canopy also has a much less stock dilution than Aurora, who has regularly turned to bought-deal-offerings to raise capital.

Cannabis Stocks Could Lose 90% of Their Value

Motley Fool’s Joey Frenette believes the cannabis sector is already in the middle of a bear market and advises cannabis investors to take their chips off the gambling table. While most dips have recovered with a bounce, the current downtrend is likely to persist.

Pot Stocks A Better Short Today Than Ever Before

Whitney Tilson, former hedge fund manager and the founder of Kase Learning, announced Thursday that pot stocks are a better short today than they were a few months ago. Tilson went further noting that companies must begin trading on fundamentals now that the pump-and-dump crowd has gone.

Alliqua Enters Cannabis Sector, Sends Shares Soaring

Alliqua Biomedical Inc. (NASDAQ: ALQA) is soaring nearly 200% after the company announced an agreement Wednesday to spin off its subsidiary AquaMed Technologies and merge it with Israeli cannabinoid pharma therapy company TO Pharmaceuticals LLC. AquaMed manufactures electron beam cross-linked aqueous polymer sheet hydrogel products. The new company TO Pharma will develop novel therapeutics based on proprietary cannabinoid product platform.

Dixie Brands Debuts on CSE

Dixie Brands (USA Inc) and Academy Explorations Limited announced that the companies have completed a reverse takeover transaction. Pursuant to the transaction, Academy’s wholly-owned subsidiary Amalco merged with USA Inc. forming Delaware-incorporated operating company named Dixie Brands. New officers and directors were appointed. Dixie Brands is now listed on the Canadian Securities Exchange under the ticker DIXI.U.

Choom Acquires Clarity Cannabis Medical Centres

For an undisclosed amount, Choom (OTCQB: CHOOF) announced that it has acquired Clarity Cannabis Medical Centres to establish a medical retail cannabis presence. Clarity provides medical cannabis services via its five locations and proprietary telemedicine system.

Acreage Holdings Year-Over-Year Revenues More Than Double, Losses More Than Quintuple

Acreage Holdings Inc (OTC: ACRZF) reported net losses of $4M in its third quarter financial results, up from $728K the year prior. Revenue for the company rose from $2.1M to $5.5M from Q3 2017.

Canopy Enters Supply Agreement with MediPharm

Thursday Canopy Growth Corp. (NYSE: CGC) announced it has entered into a strategic supply agreement with MediPharm Labs Corp. (OTCMKTS: MLCPF). Under the agreement MediPharm will supply Canopy with up to 900 kilograms of cannabis extract over an 18-month period. In addition, Canopy has committed to purchase 450 kilograms with an option to buy an additional 450 kilograms.

Australis Lends $4M to Body and Mind to Fund California Cannabis Acquisition

Body and Mind Inc. (CSE: BAMM) (USOTC: BMMJ) and Australis Capital Inc. (CSE: AUSA) announced an investment by Body and Mind into Green Light District holdings Inc. by way of $5.2M senior secured convertible note at a rate of 20% per annum. Body and Mind’s investment was funded partly by a $4M secured loan from Australis.



The Morning Blunt

Volume 3|Issue 29
November 29, 2018

Stock Market

North American Marijuana Index Recovers After Pep Talk From Federal Reserve Chairman Jerome Powell

The North American Marijuana Index recovered Wednesday as cannabis stocks soared after Federal Reserve Chairman Jerome Powell called interest rates just below neutral for the economy. Powell told a group at the Economic Club in New York that its important to distinguish between volatility and events that threaten financial stability. Take a look at who flew and who fell on Wednesday.

Horizons Marijuana Life Sciences Lost a Third of Its Value

Currently holding 49 cannabis stocks including producers and ancillary businesses, Horizons Marijuana Life Sciences Index ETF (NASDAQOTH: HMLSF) has lost more than a third of its value in less than six weeks. Horizons seems to have added many of their listings after those companies’ run-ups had plateaued. Further the industry won’t be returning profits nearly as soon as some expected, which bodes poorly for Horizons Marijuana Life Sciences.

Origin House Announces 89% Revenue Growth for Q3 2018

Origin House Corp. (CSE: OH) (OTCQX: ORHOF) announced sequential revenue of $6.6M at a growth of 89% in the company’s financial results for the three- and nine-month periods that ended on September 30, 2018.

Canna-Hub Looking to Expand Beyond California

CEO Tim McGraw of Canna-Hub, a privately-owned real estate and property development company focused on the cannabis industry, told Proactive Investors the company is making headway on their two cannabis parks under development. According to McGraw Canna-Hub will be expanding to Canada, Nevada, Colorado, and Washington.

5 Canadian Pot Stocks With Attractive EV/Forward Revenue Multiples

Forward enterprise value to revenue is a useful metric to evaluate a stock’s value for early stage companies that have yet to achieve a positive cash flow. In the Canadian cannabis sector the average forward EV/Revenue multiple is 44.6x. These five companies, Harvest One Cannabis Inc. (TSXV: HVT), HEXO Corp (TSX: HEXO), WeedMD Inc (TSXV: WMD), Sunniva Inc. (CSE: SNN), and Supreme Cannabis Company (TSXV: FIRE) (OTC: SPRWF) are all trading below 10.0x forward revenues, well below their peers.

Supreme Cannabis Company Growing Success

The Supreme Cannabis Company (TSXV: FIRE) (OTC: SPRWF) recently reported its third quarter 2018 updating reflecting sales growth of 229% year-over-year from $1.56M to $5.14M. In an expansion effort, Supreme Cannabis has also reached an agreement to acquire communications firm Bayfield strategy Inc.



The Morning Blunt

Volume 3|Issue 28
November 28, 2018

Stock Market

Politically Connected NYCanna Flips Cannabis License to Politically Connected Acreage Holdings

NYCanna, a politically affiliated cannabis firm, found itself worth more than $40M after receiving one of New York’s only ten cannabis licenses. Before NYCanna conducted any business with the license they sold the company for $48M to Acreage Holdings LLC (OTCMKTS: ACRZF) (CNSX: ACRG.U) in what some would call a series of sketchy political handshakes.

Altitude Raises $30M in Initial Fund

After raising $30M Altitude Investment Management LLC announced Tuesday that it will close Fund I on November 30, 2018. Beginning Q1 2019 Altitude will be launching Fund II which will focus on the global cannabis industry with investments in plant-touching and ancillary cannabis businesses. Altitude seeks to raise more than $100M for Fund II.

Curaleaf Revenue Nearly Triples in First Earnings After Going Public

Curaleaf holdings Inc. ((OTC: LDVTF) was down 6% Tuesday after announcing the company’s revenue nearly tripled to $21.4M. Due to a one-time non-cash charge of $25M Curaleaf posted a loss of $33.7M.

Charlotte’s Web Holdings Third Quarter 2018 Financial Report

Tuesday Charlotte’s Web Holdings Inc. (CSE: CWEB) (OTCQX: CWBHF) reported their Q3 financial results, highlighting organic revenue growth of 57% to $17.7M compared to 2017 third quarter results. Further, the company’s gross profit, before biological asset adjustment, increased 54% to $13.8M year over year.

Green Thumb Industries Reports Year Over Year 344% Revenue Increase

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) announced its third quarter financial report for 2018 on Tuesday. The company’s revenues increased 344% year over year to $17.2M with a 26% quarterly increase. Green Thumb Industries’ net loss was $3.3M, down from a net income of $0.4M in Q2.

48North Cannabis Corp. Reports Growth in Revenue for Fiscal Q1 2019

48North Cannabis Corp. (TSXV: NRTH) released its financial and operating results for the quarter ending on September 30, 2018. The company reported revenue growth with total 2019 first quarter revenue of $1.3M and adjusted EBITDA of $606K.

Canopy Rivers Reports Second Quarter Financial Results

Monday Canopy Rivers Inc. (TSXV: RIV) announced its financial results for the three and six months ended on September 30, 2018. Canopy Rivers also provides a corporate update and run down of the company’s eleven partnerships and relationships.

Harvest One Signs Extraction Agreement with Valens GroWorks

Harvest One (TSXV: HVT) signed an extraction agreement with Valens GroWorks Corp. (CSE: VGW) (OTC: MYMSF). Under the agreement Harvest One’s subsidiary United Greeneries will ship Valens bulk dried cannabis for processing to develop cannabis derivative products.



The Morning Blunt

Volume 3|Issue 27
November 27, 2018

Stock Market

What to Know Before Investing in Cannabis

According to Green Market Report whether you are an acquirer or an investor, performing due diligence on a cannabis firm is deeply nuanced and requires an understanding of how the industry is governed. Take a closer look at some of the diligence issues to keep in mind including transferability of the cannabis business, confirming licenses, banking relationships, cash management, 280E, regulatory compliance, insurance, and criminal issues.

Massachusetts Cannabis Industry Worth $1.8B

Two years after recreational adult-use cannabis was legalized in Massachusetts sales have finally commenced in the estimated $1.8B market. According to Motley Fool’s Sean Williams MedMen Enterprises (NASDAQOTH: MMNFF), Innovative Industrial Properties (NYSE: IIPR), and KushCo Holdings (NASDAQOTH: KSHB) are flocking to invest in the Massachusetts market.

Acreage Holdings to Acquire Blue Tire Holdings

Monday Acreage Holdings Inc. (CSE: ACRG.U) announced its plans to enter the Michigan cannabis market by entering into an agreement to acquire the real estate assets of Blue Tire Holdings LLC. Together the companies will acquire licenses for the respective properties.

Florida’s Cannabis Market

Seeking Alpha’s Jonathan Cooper provides a brief summary on some of the businesses jockeying for position in Florida’s medical cannabis market. With 22 dispensaries, Trulieve Cannabis Corp. (OTCPK: TCNNF) is the state’s top cannabis company followed by Curaleaf Holdings Inc. (OTCPK: LDVTF) with 17 dispensaries. Both MedMen Enterprises (NASDAQ: MMNFF) and Green Thumb Industries Inc. (OTCMKTS: GTBIF) intend to open dispensaries in the state.

Aleafia Posts $1.6M Revenue in Q3

With a 36% increase over the previous quarter, Aleafia Health Inc. (TSXV: ALEF) (OTCQX: ALEAF) announced Monday record revenues for Q3 at $1.6M. This marks the first quarter of profitability for clinic and product divisions.

Will Aurora Be the First Firm to Produce 1M Kilograms Annually of Cannabis?

After closing the acquisitions for ICC Labs (NASDAQOTH: ICCLF) and MedReleaf, Motley Fool’s Sean Williams estimates Aurora Cannabis (NYSE: ACB) has the potential to produce up to 1 million kilos of cannabis annually. While Aurora may leave its competitors in the dust in terms of production capacity, investors should beware. Investors should pay attention to Aurora’s need to diversify its product portfolio, find a brand partner, and minimize its ballooning share-based dilution.

Grown Rogue Now Trading on CSE

Oregon seed-to-sale cannabis firm Grown Rogue (CSE: GRIN) announced Monday that the company’s common shares have begun trading on the Canadian Securities Exchange under the ticker symbol “GRIN”.

Cannex Capital to Merge With 4Front Holdings

Cannex Capital Holdings Inc. (CSE: CNNX) (OTCQX: CNXXF) and 4Front Holdings LLC announced they have signed a binding letter of agreement to which 4Front has agreed to combine with Cannex in an all-stock transaction to create a multi-state, vertically integrated cannabis firm.

Wayland Group Acquires Control of Theros Pharma & Enters UK Market

The Wayland Group (CSE: WAYL) (FRANKFURT: 75M) (OTCQB: MRRCF) announced it has entered into an agreement to acquire 51% of UK based Theros Pharma Ltd., a small firm that has successfully imported cannabis to the UK for medical cannabis patients.



The Morning Blunt

Volume 3|Issue 26
November 26, 2018

“The best way to predict the future is to create it.”

–Peter Drucker

Stock Market

India Globalization Capital’s Web of Lies

After Market Watch reported last month about potential warning flags, India Globalization Capital (OTC IGCC) plummeted more than 80% and was delisted from the New York Stock Exchange. Including fraud allegations, falsifying data for scientific journals, and lying about partnerships, FDA applications, and distribution agreements, Market Watch has again uncovered evidence raising even more concerns about the IGC’s integrity.

National Access Cannabis Corp. Secures $21M of Special Warrant Financing for 200 Retail Stores

Friday National Access Cannabis Corp. (OTCMKTS: NACNF) announced the closure of its brokered private placement offering of 21,150 special warrants of the company at $1,000 per share for aggregate gross proceeds of $21,150,000 which entitles shareholders to receive 8% senior secured convertible debentures of National Access Cannabis Corp upon exercise or deemed exercise of the special warrants. The funding will help the company open over 200 cannabis retail stores in the next 18 months.

Production Isn’t Everything

Motley Fool’s Sean Williams argues that production capacity is less effective of a metric to measure cannabis stocks than the company’s product diversification, established partnerships, and their position to enter into new markets to establish supply agreements.

What Did Canadian Legalization Do to the Stock Market?

Amplified by the August run-up where index stocks added nearly a third of their values, Cannabis Daily’s Eric Vengroff notes after cannabis legalization Canadian investors bailed, cutting stock prices for many Canadian firms. By way of comparison, the US Marijuana Index has mirrored the volatility of the Canadian market but has proven to be more robust and resilient.

Cannmart & Weed Me Enter Product Acquisition Agreement

Namaste Technologies Inc.’s (OTCMKTS: NXTTF) wholly owned subsidiary, Cannmart Inc., initiated a product acquisition agreement with Weed Me Inc. to purchase a variety of medical cannabis strains in the form of pre-rolled products to offer in its online platform.

Analysis: Terra Tech

Microcap Daily’s Dave Young gives an analysis of Terra Tech Corp (OTCMKTS: TRTC), a Nevada based, vertically integrated, cannabis agriculture firm who recently announced a merger with Golden Leaf Holdings. The new conglomerate will control 41 permits across cultivation, manufacturing, distribution, and retail in Nevada, California, and Oregon.

CSE Aims to Grow US Cannabis Listings in 2019

Due to federal regulations preventing US cannabis companies from listing on US exchanges, and TMX Group’s (OTCMKTS: TMXXF) decision to exclude US operations from its listings, US cannabis firms looking to raise capital are flocking to the Canadian Securities Exchange. This trend could be offset if the States Act, a bill that would remove the federal ban at the state level, is passed.

Aleafia Health Finalizes Joint Venture with Serruya Private Equities

Aleafia Health Inc (TSXV: ALEF) (OTCQX: ALEAF) announced the finalization of the previously announced joint venture and financing transactions with Serruya Private Equities. The two companies will build and scale an immediate national reach with global expansion plans.

Ovation Sciences Newly Trading

Terry Howlett CEO of Ovation Science Inc. (CSE: OVAT) explains the path that led to Ovation choosing to list on the CSE. Ovation’s expertise in skincare is leading the company to explore medicinal CBD products delivered through the skin via Invisicare a patented topical and transdermal delivery system.

Production Capacity: Aurora’s Advantage

According to Motley Fool’s Todd Campbell, production capacity puts Aurora Cannabis (NYSE: ACB) far ahead of Tilray (NASDAQ: TLRY) in terms of inventory and cannabis sales. Assuming Aurora Cannabis delivers on its growth target timeline, the company will ramp-up to 150K kilos annually by 2019.

Trulieve Begins Expansion, Projects $214M Revenue in 2019

Trulieve’s (CSE: TRUL) (OTC: TCNNF) CEO Kim Rivers reports the vertically integrated cannabis firm generated $28.3M of revenue for the company’s third quarter all from the state of Florida. The company recently announced entry into the Massachusetts and California markets and projects Trulieve will rake in $214M in 2019.



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.