Cannabis Weekly Round-Up: Canopy Wants Drink Rules Changed

One Canadian marijuana industry leader is asking how long will it take for the country to change its tune on regulating cannabis-infused drinks.

Meanwhile, earnings season had a busy week as various companies issued their quarterly reports, giving a panoramic view of the current state of the cannabis business. In the US, talks picked up about the impact of Joe Biden’s Democratic vice president nominee.

Keep reading to find out more of the highlights from this week.

Canopy wants cannabis drink regulation changes

Following the release of Canopy Growth’s (NYSE:CGC,TSX:WEED) latest quarterly results, CEO David Klein told the market he is unhappy with the buying restrictions on cannabis drinks in Canada.

The current Health Canada standard makes it so cannabis beverages can have up to 10 milligrams of THC. But consumers are only allowed to have 2.1 liters worth of cannabis beverages in their possession — a calculation that’s based on fluid volume, not the volume of THC in the fluid.

Klein instead wants to see purchase limits based on the active cannabis ingredients that drinks have.

“Every single provincial cannabis lead is on the same page as we are. The question they bring up is, ‘When is the timing right?’ I think it has as much to do with the political cycle in Canada as anything else,” Klein told Yahoo Finance Canada.

As the company celebrated the sale of over a million canned cannabis beverages in Canada since mid-March, Klein expressed frustration with the political timing, which in his eyes comes at a time of indecision from the federal government.

Canopy Growth has expressed a clear interest and desire to see beverages pick up as a consumption method for recreational cannabis products. Part of its drive stems from its relationship with alcohol-maker and expert beverage company Constellation Brands (NYSE:STZ) — in fact, Klein is a former Constellation Brands executive himself.

Earnings season comes out in full swing

Besides Canopy Growth’s results, several other cannabis operations reported to investors this past week with detailed results on their performance.

Investors got a closer look at the businesses of:

• Tilray (NASDAQ:TLRY)
• Sundial Growers (NASDAQ:SNDL)
• Zenabis Global (TSX:ZENA)
• Canopy Rivers (TSX:RIV,OTC Pink:CNPOF)
• The Green Organic Dutchman Holdings (TSX:TGOD,OTCQX:TGODF)

On a different type of regulatory matter, Health Canada, the country’s cannabis regulator, issued a stern warning for consumers with children and the placement of cannabis products.

According to a Canadian Press report, since cannabis became legal for adult recreational use, there have been at least 15 cases of children ingesting products and presenting “serious adverse reactions.”

Biden picks Harris as running mate, analysts hopeful

On Tuesday (August 11), Joe Biden made official the selection of Senator Kamala Harris as his vice president in the upcoming US presidential election. The decision led to a moderate opinion from Wall Street about the impact this could have for cannabis reform in the country.

A MarketWatch report indicates that Jaret Seiberg, an analyst at Cowen Washington Research Group, sees the Harris pick as “modestly positive for cannabis as she is an advocate for legalization.”

Seiberg’s trepidation is rooted in the fact he already expected Biden to work on reform at some point later on if he wins the presidency. “So she would be a voice for legalization within the Biden administration if he wins in November. That is positive, but Team Biden already was going to sign whatever legalization measure Congress could deliver,” Seiberg wrote in his note.

Cannabis company news

• Khiron Life Sciences (TSXV:KHRN,OTCQX:KHRNF)announced its Kuida CBD cosmeceutical brand will become available in the Asia Pacific market thanks to a partnership with DNO Group. The initial launch will be in Hong Kong by Q4 2020, according to Khiron.

• The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF)confirmed it will no longer have a consulting services agreement partnership with Khalifa Kush Enterprises Canada. “The Company determined that the value of the agreement was negatively impacted by current Health Canada direction,” Supreme Cannabis told investors.

• PharmaCielo (TSXV:PCLO,OTCQX:PCLOF)secured an external cultivation contract in Colombia as it attempts to meet the demand of medicinal cannabis extracts. The partnership was awarded to Tahami & Cultiflores, a company “led by” PharmaCielo co-founder, former executive and director Federico Cock-Correa.

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

Editorial Disclosure: Khiron Life Sciences is a client of the Investing News Network. This article is not paid-for content.