Cannabis Weekly Round-Up: Uruguay Begins Adult-Use Cannabis Sales

From Uruguay's full legalization to the debate between regional leaders in Canada questioning the recreational deadline, and a variety of market news INN provides a roundup of the week in cannabis

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The past trading week (July 17-July 21), saw a variety of announcements from the Canadian and international market. In Canada, the Health Minister was forced to reiterate the set deadline for legalization in the country as it faced doubts from regional leaders and in Uruguay, the sale of recreational cannabis officially kicked off.

As the industry moves closer and closer to the recreational legalization deadline, this week Health Minister Jane Philpott confirmed the deadline for recreational use will not be moved from July 1, despite the pleas from some premiers in Canada.

And while legalization is on the way, Global News reported Canada is still technically part of three “outdated treaties” with the UN, pledging to ban marijuana and a set of other drugs.

“The treaties were adopted in a time when there was a different view of what addiction was,” Steven Hoffman, a professor at York University in Toronto told Global.

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The Canadian marijuana ETF enjoyed a positive week as well. Over a five-day trading period, the Marijuana Life Sciences Index ETF (TSX:HMMJ) increased 3.85 percent. As of 2:15 p.m. EST, the ETF traded at $9.17. Year-to-date, the HMMJ has dropped 10.54 percent.

On an international level, Uruguay officially launched the sale of recreational marijuana. The process in the country is fairly strict, with only 16 pharmacies allowed to sell cannabis right now.

INN reported that International Cannabis (TSXV:ICC), was approved to officially take advantage of this new market and sale adult-use cannabis in the country.

“Authorities say nearly 5,000 people have registered as consumers, allowing them to buy up to 40 grams of cannabis per month,” Marijuana Business Daily reported.

Sticking with the international aspect, INN also reported on LGC Capital (TSXV:QBA), a company that also expanded into the South African cannabis market with a facility acquisition. The country has hinted–and seems to be closer–to taking steps towards legalization.

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In the Canadian market, Rainmaker Resources (TSXV:RIR) announced INDIVA it’s cannabis supplier, received LP status from Health Canada.

“Our management team is pleased to have achieved this important milestone and would like to thank all of our partners, employees, shareholders and other stakeholders for their hard work,” CEO of INDIVA Niel Marotta said in a statement.

Newstrike Resources (TSXV:HIP) announced it acquired a new 16.6 acres land facility, which will boost their production capacities of their LP subsidiary Up Cannabis to 25,000 kilograms, Jay Wilgar CEO of Newstrike told INN.

Two of the highest increases we saw this week include Supreme Pharmaceuticals (TSXV:FIRE) with an 8.49 percent rise and OrganiGram Holdings (TSXV:OGI) with a 6.88 percent increase as of 2:40 p.m. EST.

Don’t forget to follow us @INN_LifeScience  and @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.


** This article is updated each week. Please scroll to the top for the most recent information**

Cannabis Weekly Round-Up: Nevada Experiences Supply Shortage

July 14, 2017

With the complications from the legalization case in Nevada, investors hope the same mistakes aren’t repeated by the upcoming Canadian adult-use legalization. An interesting factor to note is the surgical planning required to complete a seamless and effective legalization in any modern market.

As another week of trading and announcement wraps up, the Investing News Network brings you a cannabis weekly roundup on some of the biggest stories and information from the cannabis world that caught our eye.

The Canadian marijuana ETF enjoyed a positive week following one of its lowest points on Monday (July 10) closing at $8.39. Over a five-day trading period, the Marijuana Life Sciences Index ETF (TSX:HMMJ) saw a 5.13 percent increase. As of 12:15 p.m. EST, the ETF traded at $8.81. Year-to-date, the HMMJ has dropped 14.05 percent.

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Following the beginning of recreational legalization, the state of Nevada faced a severe shortage of product due to incredible demand. The state approved an emergency regulation which allows the transportation from cultivation facilities to retail dispensaries.

The supply problem was caused due to the fact that no company had been licensed to transport cannabis, according to the LA Times.

The emergency legislation will allow more companies to apply for the transportation license since, originally, only liquor wholesalers were allowed to apply for cannabis distribution.

Nevada has approved the licenses for nearly 100 growers, which would amount to enough product to satisfy this demand.

The tax department director, Deonne Contine, said that of the nearly 70 liquor wholesalers in Nevada, seven had applied to transport marijuana. One was approved Wednesday and another Thursday.

Some cannabis experts have taken the situation in Nevada as a point of example for Canada as its own legalization approaches. While the situation is unlikely to be similar, there is a concern that there isn’t enough marijuana to satisfy the national demand in the country.

Over the week, Health Canada replied to a request from Lift News about medical marijuana shortage cases in which some customers hadn’t been able to purchase their regular products.

“Health Canada recently implemented operational changes to streamline licensing and enable increased production of cannabis for medical purposes. These changes will help ensure reasonable access for individuals who require cannabis for medical purposes,” the agency said.

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A special cannabis committee in the state of Massachusetts also reconvened this past week, following a sudden halt in discussions. This group is expected to find common ground for the taxation system to be placed for adult-use cannabis.

The original bill, which voters approved back in November of 2016, was modified by the House in an attempt to hike the tax from 12 to 28 percent.

A representative for a pro-cannabis support group in Massachusetts told the Investing News Network they expected “only minor changes to the law passed by voters.”

On a worldwide scale, the United Nation Office on Drugs and Crime released its annual report and called for more stringent scientific standards for the medical landscape.

According to Cannabis Now, the report recommended countries adopting new legislation in terms of cannabis to also “establish systems to regularly monitor their impact across all areas of public health and criminal justice.”

In the Canadian market, two of the top gaining stock this week include Aurora Cannabis (TSXV:ACB) and Cronos Group (TSXV:MJN).

Aurora recently announced it would be upgrading from the TSXV to the TSX. According to CEO Terry Booth, this reflects the growth and expansion of the company. Another staple of this expansion was the news that the company would be hosting the Agriculture Minister of Australia Honourable Jaala Pulford to provide inside information as to what made Canadian system work in relation to the company.

“Partnerships like the one between Aurora and Cann Group will play a critical role in establishing best practices and developing Australia’s newest economic sector,” Pulford said in a statement.

As for Cronos, last week wealth management group Canaccord Genuity set the company’s stock price at $3.00 alongside a speculative buy rating. It was also revealed Director Michael Howard Krestell actually sold 83,700 shares for a total of $148,986.00.

Don’t forget to follow us @INN_LifeScience for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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