Stocks
Wednesday In Review// Highs & Lows
Proactive Investor // 12.12.18
Market Watch // 12.12.18
Cannabis stocks were generally lower Wednesday, after news that the Senate approved the 2018 Farm Bill, a piece of legislation that legalizes industrial hemp, failed to spark a rally. One exception was New Age Beverage Corp. (NASDAQ: NBEV) who was up 14%.
Canopy Growth Corp. (NYSE: CGC) (TSE: WEED) fell 3% despite a bullish endorsement from Wells Fargo. Aurora Cannabis Inc. (NYSE: ACB) (TSE: ACB) was up 3.4% and MedMen Enterprises Inc. (OTCMKTS: MMNFF) (CNSX: MMEN) climbed 1.4%.
Isodiol International Inc. (OTCQB: ISOLF) (CSE: ISOL) shares soared 16% while Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) surged 8% in Wednesday afternoon trading.
Shares of Terra Tech Corp. (OTCQX: TRTC) were up more than 4%, joined by Sunniva Inc. (CSE: SNN) who jumped 6%.
Hexo Corp. (TSE: HEXO) was down 1.3%. Cronos Group Inc. (NASDAQ: CRON) fell 2.8%, Tilray (NASDAQ: TLRY) plummeted more than 10%, and Aphria Inc. (NYSE: APHA) (TSE: APHA) was down 1.8% after announcing its supply agreement in Paraguay.
MariMed Inc (OTCQB: MRMD) dipped nearly 5%, MPX Bioceutical Corporation (CSE: MPX) (OTCQX: MPXEF) fell 2%, and shares of ICC International Cannabis Corp. (CSE: WRLD) (OTCQX: KNHBF) plunged nearly 9%.
The Horizons Marijuana Life Sciences ETF (TSE: HMMJ) (OTCMKTS: HMSLF) was flat while ETFMG Alternative Harvest ETF (NYSE ARCA: MJ) inched up 0.8%.
Zacks’ Picks for Stocks to Watch
Zacks // 12.12.18
Zack’s Ryan McQueeney discusses the trade war and impending vote of confidence facing the UK Prime Minister Theresa May. Later, McQueeney discusses why Canopy Growth Corp. (NYSE: CGC), Cronos Group Inc. (NASDAQ: CRON), and New Age Beverage Corp. (NASDAQ: NBEV) are all stocks to pay attention to as the 2018 Farm Bill Passes.
Top Cannabis CPA Warns of M&A Bubble
Business Insider // 12.11.18
Mitzi Hollenbeck, a company partner who leads the cannabis advisory practice for Boston-based accounting firm Citrin Cooperman, issued a stark warning to the nascent industry: There’s a M&A bubble. With the excitement ramping up as new state markets open, the bubble will be artificially propped up as cannabis companies invest hundreds of millions in cash and stock deals in order to scale effectively. Marijuana companies have been on an acquisition spree, however Hollenbeck feels the valuation numbers are artificially inflating the market. Speaking at the New York State Society of CPAs, Hollenbeck warns that the bubble is going to burst.
These Stocks Could Burst the Canna Bubble
Pot Network // 12.12.18
With Canada legalizing recreational marijuana, in many ways 2018 will be known as The Year of Cannabis. However, signs are pointing to an industry-wide recession. Although there is a bubble surrounding the industry, some companies will be hit harder than others. Pot Network’s Laura Kuhl argues that Aphria (TSX: APH) (NYSE: APHA), Tilray (NASDAQ: TLRY), and Supreme Cannabis (TSXV: FIRE) (OTCQX: SPRWF) are most at risk when the bubble pops.
Calpers’ Says No to Tobacco Stocks & Yes to Cannabis Stocks
Barron’s // 12.12.18
The largest US pension fund, the California Public Employees’ Retirement System issued its third quarter filing of holdings to the Securities Exchange Commission, showing the fund has a small position in Tilray (NASDAQ: TLRY). As of Sept. 30, the fund owned 1,617 shares of the cannabis producer. The fund, commonly known as Calpers, sold its position in tobacco in 2000. Notably Calpers’ investment in Tilray isn’t the fund’s only exposure to cannabis. The fund currently has a stake in Constellation Brands (NYSE: STZ) and GW Pharmaceuticals (NASDAQ: GWPH)
Assessing the MediPharm-Canopy Sales Agreement
P&T Community // 12.12.18
Canopy Growth Corporation (NYSE: CGC) recently announced an agreement to purchase 450kg of cannabis extract from MediPharm Labs Inc. (OTCMKTS: MLCPF) (TSXV: LABS). The 18 month agreement also gives Canopy the option to purchase an additional 450kg. The extract consists of roughly 70% active ingredients, meaning that 450kg of concentrate carries 315kg of active ingredients. Once converted into products, the concentrate will be sold by the milligram. Canopy could produce 1.05M bottles of its Red No. 2 softgels, resulting in over $47M of revenue at full retail value.
Aurora CEO Says Company Not For Sale
Cheddar // 12.11.18
With big pharma, big beverage, and big tobacco circling the cannabis industry, Aurora Cannabis’ (NYSE: ACB) CEO Terry Booth announced that Aurora will not be another acquisition target. Booth argues that it’s too early for companies in the nascent industry to “lock horns” with major players. According to the CEO, the US hemp and CBD market is next for the company, but only after regulations are established for the 2018 Farm Bill.
Aurora’s Questionable Mexico Deal
Seeking Alpha // 12.12.18
According to Seeking Alpha’s Stone Fox Capital, Aurora Cannabis’ (NYSE: ACB) made a questionable deal when agreeing to acquire Mexico’s Farmacias Magistrales SA. While the deal will give Aurora sole rights to import cannabis to mexico, Stone Fox argues that it is highly unlikely the company will import much. Mexico’s strong history of domestic cultivation will likely outpace imported products. In the meantime, Aurora has moved beyond the key support of $5.40, a metric investors can continue using to play the volatile cannabis market.
2019 Could Be A Complicated Year For Cannabis
Financial Post // 12.11.18
While there are new opportunities sprouting up in the cannabis industry, there are also enormous risks, as companies now must deliver on their soaring valuations. Financial Post sat down with four experts to discuss what to expect from investing in cannabis in 2019. See why investors’ top picks include OrganiGram Holdings (OTCMKTS: ORGIF) (TSXV: OGI), Canopy Growth (NYSE: CGC), and Origin House (OTCMKTS: ORHOF) (CNSX: OH).
Rȇveur Announces Distribution Services Agreement with Rise Logistics
PR News Wire // 12.12.18
British Columbia-based Lifestyle Delivery Systems Inc (CSE: LDS) (OTCQX: LDSYF) (FRANKFURT: LD6) (WKN: A14XHT) announced that as of Dec. 1, 2018 its subsidiary Rȇveur Corporation executed a distribution services agreement with Rise Logistics LLC. Rise is an operating entity of DionyMed Brands Inc. (CSE: DYME) and will facilitate the distribution of Rȇveur’s cannabis product line throughout the state of California.
Global News
New US Congressional Bill Could Solve Border Issues for Cannabis Industry
Marijuana Moment // 12.12.18
Currently, under US law any person who admits they use, work with, or invest in cannabis can face a lifetime ban from the country. However, new legislation hopes to change that. The Appropriate Protections For Legal Entry Act would provide exceptions for conduct that was lawful in the state, Indian Tribe, or foreign country in which the conduct occurred.
Aphria Signs Exclusive Agreement to Supply Medical Cannabis to Paraguay
Market Watch // 12.12.18
Canadian cannabis firm Aphria Inc. (NYSE: APHA) (TSE: APHA) announced Thursday that it has signed a letter of intent for an exclusive supply agreement with Insumos Medicos SA. Under the agreement Aphria will supply medical cannabis to Paraguay. According to Aphria, Insumos is a pharmaceutical distributor to hospitals in Paraguay and will handle the import licensing for medical cannabis.
Wayland Group Enters Argentina
New Cannabis Ventures // 12.11.18
The Wayland Group (CSE: WAYL) (FRANKFURT: 75M) (OTCQB: MRRCF) announced it has entered into an agreement to purchase 819 hectares of developed agricultural land in San Juan Province in Argentina.
Iwi Respond to New Zealand’s Medical Marijuana Legalization
Māori TV // 12.12.18
With the recent legalization of medical marijuana in New Zealand, there is expected to be a boom in the economic industry. Māori leaders are concerned that they will be left out of the nascent new industry.
South Korea Approves Medical Marijuana
US News // 12.12.18
South korea is the first East Asian country to legalize medical marijuana. Early 2019 patients with epilepsy and a select few other rare diseases will be able to legally acquire medical marijuana. No further change to regulations are anticipated in the near future.
US News
Farm Bill Headed to President Trump’s Desk for Signing
Marijuana Moment // 12.12.18
One day after the Senate approved the 2018 Farm Bill, the House voted to pass the legislation on Wednesday. Currently the bill, which legalizes industrial hemp, is now officially headed to President Donald Trump’s desk for signing. If the president signs the bill before the year’s end, the bill, and hemp legalization, will take effect on January 1, 2019.
Green Check Bridging the Banking Gap for Cannabis Firms
PYMNTS // 12.12.18
More banks than ever are offering financial solutions to the cannabis industry, however the banking gap remains as cash still dominates the US industry. Green Check Verified CEO Kevin Hart discusses how both financial institutions and the cannabis industry can embrace technology to ensure compliance with regulatory policies. Green Check offers a proprietary Compliance Rules Engine that runs each transaction through a database of rules drawn from the existing federal guidance and state statutes and regulations that govern their cannabis programs.
Oregon’s Top Cannabis Extractors in 2018
Leafly // 12.12.18
After being rated by a blind taste-test panel of experts, three extraction companies stood out to judges in 2018 as Oregon’s top extractors. Lunchbox Alchemy, White Label Extracts and Ruby Farms had the highest product scores over the last year.
Medical Patients Must Choose Between Marijuana and Firearms
Green Entrepreneur // 12.12.18
In recent months a new legal issue is forcing medical marijuana patients to give up their firearms or face federal charges. Within the law as it is, any person who uses an illegal drug cannot possess a firearm with no exceptions for medical marijuana users. Until there is a change in federal law this issue will continue to arise in states as they legalize marijuana.
Vangst Recruiting Company Debuts New Recruiting Technology
PR Newswire // 12.12.18
Vangst, the leading employment resource in the cannabis industry, announced the debut of Vangst GIGS, a new on-demand recruiting platform connecting companies with licensed employees. Following last months beta testing in Colorado, over 10,000 temporary jobs have been booked. Vangst GIGS is now available in Colorado, Washington and California.
Starbuds Dispensary Expanding to Multiple States
New Cannabis Ventures // 12.11.18
Colorado based company, Starbuds, is opening shop in Massachusetts and Maryland, following the recent legalization of recreational marijuana. The company has part ownership of pending licenses in Louisiana, Oklahoma and Hawaii. Starbuds has plans to eventually expand to New Jersey, Michigan and Missouri. They recently teamed up with Vertical in California and Arizona to sell Kaviar branded products.
New Michigan Bill Relaxes Background Checks for Investors
Detroit Free Press // 12.11.18
A new bill in Michigan will relax the background check requirements for investors in the marijuana industry. Currently, potential investors are subject to a criminal and financial background check. The new bill states that anyone with less than five percent investment in a business does not have to submit a background check. In addition, the new bill will limit the licensing board to only viewing criminal convictions for applicants. The board will no longer be allowed to view arrests, charges or expungements.
North Carolina Officials Prepping for Marijuana Sales
Citizen Times // 12.12.18
City alcohol regulators in Asheville, NC, say they are preparing for when marijuana becomes legal in the state. The Alcohol and Beverage Control build a new warehouse to deal with the growth in liquor sales, but also stated that the facility was prepared to hold cannabis product if or when needed. In the state General Assembly, some democrats are pushing for legalization of medical marijuana.
CEO of Cresco Labs Appointed to Cannabis Legalization Subcommittee in Illinois
Business Wire // 12.12.18
Cresco Labs (CSE: CL) announced Wednesday that their CEO and co-founder, Charles Bachtell, has been appointed to the Cannabis Legalization Subcommittee in Illinois under the Governor-elect. The goal of the committee is to evaluate and develop protocol for legalizing cannabis statewide.
Alaska and Maryland are the Most Expensive Places to Buy Pot
Green market Report // 12.12.18
LeafLink recently published the 2018 Wholesale Cannabis Pricing Guide stating that Alaska and Maryland are the two most expensive places to buy legal cannabis, closely followed by Nevada and California.
Arkansas’ Two Cannabis Trade Associations Merge
Cannabis Business Times // 12.11.18
The Arkansas Cannabis Industry Association (ACIA) and the Arkansas Medical Marijuana Association (AMMA) have announced the two associations have merged effective immediately. The new entity will operate as the ACIA and will be governed by a 12-member board made up of representatives from dispensaries, licensed cultivators, and other cannabis related businesses.
Marijuana Tax in Vermont
The News Tribune // 12.12.18
Vermont tax commissioner, Kaj Samsom anticipates a 26% tax rate on marijuana sales, which could yield the state $20M in annual tax revenue. The rate includes a 20% cannabis retail excise tax and a 6% state sales tax.
Recreational Legalization in N.J. Unlikely by the End of the Year
NJ.com // 12.18.18
It is unlikely that lawmakers in New Jersey will be able to reach a decision regarding the legalization of recreational marijuana by the end of the year. State Officials are scheduled to meet Thursday to further discuss the bill.
First Dispensary in Ohio Approved to Open
USA Today // 12.12.18
State regulators have approved Cresco Labs (OTCMKTS: CRLBF) (CSE: CL) as the first retailer to operate in Ohio. Once the state gives approval to a testing facility, the dispensaries will be able to have their products tested. Only after testing will shelves be stocked. Stores are anticipated to open their doors to patients as early as next month.
Oklahoma Health Board Approves Marijuana Edible Rules
The Associated Press // 12.12.18
The Oklahoma board of health voted Tuesday to send the final list of rules concerning marijuana edibles in the state. Additional labeling and testing will be required for products to pass through to the consumer.
Lawmakers in Kentucky Push for More Research
WKLY // 12.12.18
Lawmakers in Kentucky fear that medical marijuana legalization in their state is moving too fast. Danny Bentley pushes a resolution for more research on harmful effects of marijuana. He says the benefits are modest and the harms are unknown.
California News
Proposed Final Regulations Accepted by CDFA
Canna Law Blog // 12.12.18
This past Friday, California’s three governing agencies responsible for writing and enforcing cannabis regulations — the Bureau of Cannabis Control, the Department of Public Health, and the Department of Food and Agriculture– published their proposed final regulations which are awaiting a 30-day review by the Office of Administrative Law before becoming law. Canna Law Blog’s Daniel Dersham discusses a few key takeaways from the proposed regulations.
California Cannabis Authority Announced First Approved Software Vendor
Terpenes & Testing Magazine // 12.11.18
The California Cannabis Authority announced BioTrackTHC as the first approved seed-to-sale software vendor for six counties: Humboldt, Mendocino, Yolo, San Luis Obispo, Inyo, and Monterey. BioTrackTHC, a Helix TCS Inc (OTCQB: HLIX) company, provides track and trace solutions for growers, manufacturers, distributors, and dispensary point-of-sale systems that are CCA-approved.
California Adopts Emergency Cannabis Tax Regulation 3702: CA Cannabis Track-and-Trace
California Cannabis Portal // 12.11.18
The California Department of Tax and Fee Administration has adopted proposed emergency Cannabis Tax Regulation 3702, California Track-and-Trace, to require the wholesale cost and retail selling price of cannabis and cannabis products to be recorded in the California Track-and-Trace system.
New Cannabis Delivery Base for San Francisco
PR Newswire // 12.12.18
Cannabis delivery company Caliva announced they are opening a new campus that will expand the company’s distribution reach to serve the San Francisco Bay area. They are the first licensed delivery company in the Bay area.
Mendocino County Hires Cannabis Program Manager
Ukiah Daily Journal // 12.11.18
According to Agricultural Commissioner Harinder Grewel, Mendocino County has hired building inspector Sean Connell to oversee the county’s Cannabis Program. Connell will be responsible for coordinating the county’s cannabis programs, managing cannabis strategies, policies, and programs, as well as providing permits and licenses through the Mendocino County Cannabis Program. Connell is scheduled to begin his new position Dec. 31.
Solano Supervisors Rewriting Moratorium
Daily Republic // 12.12.18
The Solano County Board of Supervisors, just outside of San Francisco, extended the ban on cannabis events in the area, including on the fairgrounds. Staff are going to amend the moratorium to allow for “pot shows” to take place on the fairgrounds.
Sonoma County Forbids Cannabis Operations Near Bike and Pedestrian Trails
The Press Democrat // 12.11.18
The Sonoma County Board of Supervisors set a new ordinance that prohibits cannabis operations from existing within 1,000 ft of bike and pedestrian trails.
Canada
Cities Opt Out of Privately-Operated Cannabis Stores in Ontario // Councils Continue Discussing Privately- Owned Cannabis Retailers
Toronto City News // 12.12.18 – CBC // 12.12.18
Some cities in Ontario are choosing to opt out of having private cannabis retailers in their respective area. At this time, cannabis can only be purchased in Ontario through the Ontario Cannabis Store website. Many citizens who are unhappy with the new rules for cannabis store are urging their local council to opt out of allowing private cannabis stores in their city.
Outsourcing Plant Propagation in Canada
Horti Daily // 12.12.18
AgraFlora Organics and Propagation Services Canada announced their joint venture to focus on cultivation and propagation in British Columbia. After stage one of renovations, the companies will have over 250,00 square feet of production space with advanced growing systems and their own natural gas energy unit.
Science
Cannabinoid Research Project for Multiple Sclerosis
Multiple Sclerosis News // 12.12.18
GB Sciences and Louisiana State University have agreed on a cannabis research and development project to study the effects of medical marijuana on multiple sclerosis. Study will aim to conclude that specific cannabis strains can help with spasticity, pain, sleep quality, vision and gastrointestinal problems.
Madeline Berkman contributed to today’s daily news roundup