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