LEGALIZATION 2.0 COVERAGE

One year after Canada completed the federal legalization of recreational marijuana, the nation will now open its market to novelty products infused with the drug. This includes edibles such as cookies and gummies, as well as cannabis beverages, which will be introduced to the market in an attempt by legal producers to tap into a replacement product for alcohol.

As such, on the eve of the launch of this second phase of the marijuana market in Canada, the Investing News Network brings investors a collection of stories and interviews on the impact this opening will have.


Canada’s nascent legal marijuana industry has had the last year to grow based on a small sample of products, but on Thursday (October 17) legislation ushered in a new wave of consumption: cannabis-infused edible products.

Stocks across the sector saw gains on Thursday as legalization came into effect.

Many licensed producers, including Canopy Growth (NYSE:CGC,TSX:WEED), Aphria (NYSE:APHA,TSX:APHA), Aurora Cannabis (TSX:ACB) and Organigram Holdings (TSXV:OGI,OTCQX:OGRMF), saw value increases as the trading day began.

A collection of Canadian exchange-traded funds (ETFs) also saw gains as the day kicked off, including the Evolve Marijuana ETF (TSX:SEED), which rose on Thursday to C$15 shortly after the start of trading.

The Horizons Marijuana Life Science Index ETF (TSX:HMMJ), which acts as an index for a pool of cannabis stocks, jumped 3 percent from a close on Wednesday of C$10.62 to C$10.94 early in the trading day.

It’s a different story from last year, when companies in the sector took a hit on the day of initial cannabis legalization in Canada in a generally accepted selloff seen across the board.

Up until now, recreational users of cannabis in Canada only had access to dried flower and oils, but retailers will soon be able to stock their shelves with marijuana derivatives in foods, beverages and topicals, giving consumers options other than inhalation.

While the legislation is now in effect, sales won’t begin until mid-December, according to Health Canada. The federal regulator will be subjecting new products to a 60 day review period.

The beginning of the year saw sky-high valuations for cannabis companies, but the industry was put through its paces over a summer marked with volatility. It suffered from an array of setbacks, including high investor expectations for revenue generation and a lack of retail locations in the country.

However, industry experts and analysts have said edibles could prove to be a boon for the space.

A study from Lift & Co. (TSXV:LIFT,OTCQB:LFCOF) and EY estimates that 1.5 million new customers could be introduced into the market now that alternatives to smokeable products will be available.

A report from business research company Deloitte furthered excitement about the space after the firm projected this new legalization could create a C$2.7 billion industry in Canada.

Performance of Canadian extraction companies

At the core of these new products will be cannabis extracts, and companies have been amping up their extraction capabilities to prepare for the next phase of Canada’s cannabis legalization.

Extraction giant MediPharm Labs (TSX:LABS,OTCQX:MEDIF) jumped in value early on in the trading day on Thursday, opening at C$4.19 and rising 2.6 percent to C$4.30 by 10:20 a.m. EDT.

Quebec-based Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) also saw some gains in Toronto, rising from a closing price on Wednesday of C$4.59 to C$4.75 at open on Thursday.

Another successful extraction firm was Valens GroWorks (TSXV:VGW,OTCQX:VGWCF), which opened at C$3.21 before reaching C$3.34 by 11:50 a.m. EDT.

Investor takeaway

Since products won’t be available until the end of the year, it’s still not clear how edibles and other novel cannabis offerings will impact the overall financials of the industry.

Cannabis companies will have trouble in Quebec, which has banned the sale of cannabis-infused foods that would appeal to children, a decision that’s been criticized by players in the legal industry.

Elliot Johnson, chief operating officer at Evolve Funds Group, told the Investing News Network that investors will be taking note of this new development.

“The legalization of edibles in Canada will draw some more attention to this sector. Obviously the sales results will not be actually known until 2020, but speculation may drive valuations higher,” he said.

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

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: MediPharm Labs and Valens GroWorks are clients of the Investing News Network. This article is not paid-for content. 

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Both locations expand access to the state’s widest-ranging inventory of medical cannabis products for Central Florida patients

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of two brand-new Central Florida dispensaries. The new Clearwater and Tampa locations mark the Company’s 81 st and 82 nd nationwide, respectively, widening patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.

Keep reading... Show less

Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce the appointment of Bart Oates Esq., President of the NFL Alumni Association, to its Advisory Board.

Philip Young, CEO and Director of Lobe, stated, “We are honored to welcome Bart to our Advisory Board. His first-hand experience on and off the field are tremendously valuable as we continue our research involving mild traumatic brain injuries and PTSD. These issues are prevalent in contact sports and we believe that athletes will play a prominent role in the continued acceptance of psychedelic medicines as legitimate treatment. We look forward to working with Bart as we seek to forge long-term strategic relationships.”

Keep reading... Show less

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that it has submitted its dossier to the United Kingdom’s Regulatory Food Safety Agency (the “FSA”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210303005322/en/

Keep reading... Show less
  • MustGrow has isolated and concentrated a new mustard-derived extract, thiocyanate.
  • Thiocyanate is soil active and translocated in the plant as a systemic, non-selective bioherbicide (natural weed-killer).
  • Greenhouse weed treatment studies have commenced with this new bioherbicide extract.

MustGrow Biologics Corp. (CSE: MGRO) (OTCQX: MGROF) (FSE: 0C0) (the “Company”, “MustGrow”) is pleased to announce that it has isolated and concentrated an additional molecule, thiocyanate, from mustard seed. Thiocyanate, which is responsible for the systemic activity behind the mustard plant’s natural herbicidal (weed-killer) properties, is the third molecule from mustard seed that MustGrow has isolated, extracted, and concentrated. MustGrow had previously reported herbicidal proof-of-concept success without isolating thiocyanate and now expects to build on those studies with this additional herbicidal mode-of-action now identified.

Thiocyanate extract has the potential to be a natural organic non-selective bioherbicide that is soil active with systemic translocated properties. Systemic activity, or the ability of the active ingredient to move from soil, to roots, and then to stem and leaves, is particularly significant given that the leading synthetic herbicide glyphosate is not soil active, and only acts on the above ground parts of the weed it contacts. MustGrow believes a tremendous opportunity exists to potentially replace or compliment glyphosate in certain systems, by providing a natural organic solution. Globally, glyphosate is being phased out, including recent announcements by Germany and Mexico by 2024. France recently announced glyphosate restrictions but stopped short of a full ban because of a lack of non-chemical alternatives.

Keep reading... Show less
  • Cannabis-Infused Beverage Category Appeals to New-to-Category Consumers as Alternate to Alcohol
  • Cann Offers Portfolio of Micro-dosed Social Tonics, Low in Calories with All-Natural Ingredients
  • Complements Green Thumb’s Brand Portfolio with Beverage Category Offering

Green Thumb Industries Inc. (“Green Thumb”) (CSE: GTII) (OTCQX: GTBIF), a leading cannabis consumer packaged goods company and owner of Rise™ Dispensaries, today announced an exclusive partnership with leading cannabis-infused beverage brand Cann to manufacture and distribute its line of cannabis-infused sparkling beverages beginning in Illinois this spring. Green Thumb and Cann will expand distribution to additional markets including New Jersey, which recently legalized adult-use cannabis sales.

“The cannabis beverage category is poised for growth. Consumers are increasingly entering the market seeking alternatives to alcohol with familiar consumption experiences,” said Green Thumb Founder and CEO Ben Kovler. “Cann sits squarely in this opportunity, delivers on the consumer need, and complements our brand portfolio with entry into the beverage segment. What’s even better is cannabis drinks can offer a superior experience, fewer calories and no hangover compared to alcohol. We are investing in the space and in the Cann team and we couldn’t be more excited to bring California’s #1 cannabis beverage brand to Illinois and beyond.”

Keep reading... Show less