Over the last trading week (April 23-27) saw the formal announcements of three new stocks joining the public markets next week. Updates from Health Canada and a new study projection for the entire Canadian cannabis market complete this Cannabis Weekly Round-Up.

On cannabis’ biggest celebration day 4/20, the Investing News Network (INN) had the opportunity to cover a panel with a variety of industry members discussing the market at large. Matei Olaru, CEO of Lift & Co. told INN he is expecting a surge in the stock market up to the date of legalization in Canada.

“I would expect [a surge] right before it happens, people pricing in anticipation, and then I would anticipate a couple quarters of medium [lulls] and then actually quite a bit of a correction,” Olaru told INN.

“When you see a lot of these producers with very high valuations not being able to make the revenue that supports the valuations, [it’s] because [they’re] not big enough to sell enough product, or they just couldn’t lock up supply,” he added.

 

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Cannabis public market will see three new company launch next week

This week investors got a look at a new crop of cannabis companies launching their common stock next week. The Canadian Securities Exchange (CSE) will host the launch of Santé Veritas Holdings under the ticker symbol “SV” starting next Monday (April 30). This company is a late-stage licensed producer (LP) applicant.

Empower Clinics will begin trading on the CSE on Monday as well, under the stock symbol “SV” after completing a reverse take-over. “Our listing on the CSE is a catalyst to accelerate our strategy during a promising time for the broader industry,” Craig Snyder, Empower CEO said.

The Green Organic Dutchman Holdings the company upsized its initial public offering to its maximum potential of a 31,510,000 units for gross proceeds of $115,011,500 at a price of $3.65 per unit. On Friday the company also revealed it will launch on May 2 on the Toronto Stock Exchange (TSX).

Updates from Health Canada

Health Canada, the arbiter of marijuana in Canada, has signaled it may be willing to allow the sale of medical cannabis in pharmacy retail stores, but it’s still a long time away. This past week Marijuana Business Daily reported the agency is willing to discuss the issue if it obtains support from the provinces and territories, provincial regulatory authorities and pharmacists.

Trina Fraser, a business lawyer at Brazeau Seller Law, told Marijuana Business Daily these sales are inevitable and it will only be a matter of time until it becomes available.

A variety of licensed producers (LPs) in the sector have signed deals with pharmacies for a future in which the law allows them to supply these retailers with medical cannabis products.

 

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This week INN reported on the results from a Q1 survey by Health Canada to Canadians showing patterns in the consumption of cannabis so far this year. According to the data presented by the government agency just over 20 percent of the population admitted to spending over C$250 for cannabis this past quarter. The study also found only one in seven of the polled Canadians are said to have obtained their products through an LP.

A new cannabis research study is now projecting the Canadian cannabis market will reach a value of C$9.2 billion by 2025. The report from New Frontier Data explores the entire Canadian cannabis market, emerging business opportunities, potential risks and both investment and regulatory implications.

When the adult-use Canadian market opens the combined domestic and international opportunities will increase dramatically and create new momentum around the world,” New Frontier Data Founder and CEO Giadha Aguirre de Carcer said. The data also examined the demand for cannabis product, public and private market performance.

Don’t forget to follow us @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.

Editorial Disclosure: The Green Organic Dutchman Holdings is a client of the Investing News Network. This article is not paid-for content.

 

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

Cannabis Weekly Round-Up: New Merger in the Public Markets

April 20, 2018 – By Bryan Mc Govern

Over the last trading week (April 16-20) the industry saw the announcement of a new merger taking place, creating a new cannabis player to consider. As a U.S. senator introduces a bill to decriminalize marijuana we take a look at the momentum currently seen in the U.S. cannabis market, then market news complete this Cannabis Weekly Round-Up.

In an effort to provide investors with a recap of the major events during the first quarter of 2018, the Investing News Network (INN) published a quarterly update on the first three months of the year. Along with this update INN also collected the data of cannabis stocks in Canadian exchanges, measuring the top gainers of the year so far.

Continuing the consolidation movement in the cannabis market, this past week the management teams from WeedMD (TSXV:WMD) and Hiku Brands (CSE:HIKU) revealed a joint plan to merge the companies. The new entity is expected to trade on the TSX Venture Exchange according to the announcement from the two companies.

 

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As his own way to celebrate 4/20, Sen. Chuck Schumer is set to introduce a bill with the intention to completely decriminalize cannabis. In a video interview with HBO’s Vice News Schumer asked why the U.S. government doesn’t allow people to use it freely and remove its illegal status.

Based on Schumer’s preview of it, NPR wrote the following on the actual bill:

Schumer’s legislation would remove marijuana from the list of scheduled substances under a 1970 law that classifies marijuana as dangerous as heroin for legal and regulatory purposes. It would establish funding for women- and minority-owned marijuana businesses, require more research on the drug’s public health impact, and maintain federal authority to regulate commercial advertising, similar to existing regulations for tobacco and alcohol.

The cannabis industry is on the rise in the U.S., following the announcement that two ex-government officials would be joining a venture as advisors. More importantly, last week Sen. Cory Gardner revealed president Trump himself committed himself to allow the legal industry to continue without any interference from the federal government.

This commitment from the president was viewed by experts as a removal of the uncertainty created by Attorney General Jeff Sessions when he rescinded the legal protection for cannabis businesses. The two developments last week caused a much-needed uproar in the public cannabis market. Several cannabis operators focused on the U.S. market saw significant increases in their share value.

Market news

GW Pharmaceuticals (NASDAQ:GWPH) is inching closer towards an accomplishment no other cannabis-related company. The company’s cannabidiol (CBD) oral solution, known as Epidiolex was unanimously recommended by the Peripheral and Central Nervous System Drugs Advisory Committee of the U.S. Food and Drug Administration (FDA) for its new drug application (NDA).

According to FDA procedure obtaining this vote of confidence is a strong indicator of the potential for a drug to be accepted by the agency. In the U.S. cannabis and its compounds are determined to be scheduled under the Controlled Substances Act (CSA). However, recently the agency has shown a willingness to accept the medical benefits of CBD specifically.

 

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It was revealed the FDA requested comments from the public at large regarding the use of cannabis for a larger World Health Organization (WHO) meeting on the status of cannabis. In a document, the agency acknowledged  “CBD-containing products are in human clinical testing in several therapeutic areas.” However, none of these products have marketing approval from the FDA.

CannTrust Holdings (TSX:TRST), the most recent Canadian companies to have joined the Toronto Stock Exchange (TSX), announced a partnership with Grey Wolf Animal Health to develop novel medical pet healthcare products.

A new subsidiary will be born from this partnership to oversee these new cannabis products. Additionally, CannTrust will “become a substantial shareholder in Grey Wolf.”

Don’t forget to follow us @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.

Editorial Disclosure: WeedMD and Hiku Brands are clients of the Investing News Network. This article is not paid-for content.

 

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US cannabis received a boost this week with a policy move that may hint at future changes.

Meanwhile, Amazon (NASDQ:AMZN) threw its full support behind cannabis reform in the US by way of a public post confirming the company’s acceptance of the drug.

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  • Research findings originated from cannabinoid-based collaboration with leading epilepsy researcher, Dr. Peter Carlen, at UHN that is also supported by a Mitacs Accelerate program grant.
  • Avicanna’s proprietary formulation showed promising pre-clinical results in reducing seizures and will be developed through the company’s pharmaceutical development pipeline as an epilepsy drug candidate.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

Avicanna Inc. (” Avicanna ” or the ” Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based pharmaceuticals is pleased to announce that it has filed a provisional patent application with the United States Patent and Trademark Office, entitled “Methods for Reducing or Eliminating Incidence of Seizures and Sudden Unexpected Death in Epilepsy”, on the use of a novel cannabinoid formulation (the “ Formulation Candidate ”).

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Cannabis legalization in Canada helped kickstart a financial revolution in the stock market with the launch of a diverse portfolio of marijuana firms.

With the boom of public cannabis businesses in full swing, are you thinking about investing in cannabis companies? If so, consider starting your journey here.

A wide spectrum of marijuana stocks have made their mark in the global industry thanks to the amount of money raised from investors and the attention the sector is getting from established industries.

 

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What’s to come is anyone’s guess, but it seems this new and burgeoning industry is still in its early days, with diverse nations beginning to move forward with plans for legalizing marijuana.

That means there’s likely still money to be made in cannabis stocks as the market builds and cannabis products expand in availability over the next few years.

There are many differing opinions about how much the global legal cannabis market will be worth in the years to come, with estimates including US$70.6 billion by 2028 and US$91.5 billion by that same year.

But one thing is almost certain: The market is set to grow as opinions surrounding the plant evolve over time and as platforms crop up to supply different consumption preferences. And all of that will mean more cannabis investment opportunities with both existing companies and future entries to the market.

For now, let’s take a look at where you can invest your money at this point in time.

How to invest in cannabis: Canadian cannabis stocks

First thing’s first: Canada. This is the obvious place to start as marijuana is legal at the federal level and Canadian cannabis stocks are less likely than their US counterparts to suffer from political volatility.

That said, due to the uncertainty of investing in the US marijuana space, where the drug is not legal at the federal level, Canadian firms have been forced to make choices about how they operate. For example, Canada’s senior exchanges do not allow companies with American cannabis assets to list.

While the Canadian cannabis space continues to face challenges, investors are eagerly watching as companies move into the edibles and beverages markets and develop new products.

For lists of Canadian marijuana stocks to consider, click here.

 

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How to invest in cannabis: US cannabis stocks

Although some US states have legalized cannabis, American cannabis stocks may be riskier than those in Canada due to federal restrictions on the sale and cultivation of cannabis.

However, as the saying goes, the greater the risk, the greater the possible reward. The US market could grow up to US$43 billion by 2025, and that’s not even including the size of the market if nationwide legalization happens. It’s easy to see that US cannabis stocks could inherit a huge chunk of the pie if federal law finally legalizes the commodity.

All in all, picking the right US cannabis stocks could mean massive gains if the plant is ultimately legalized federally. It’s worthwhile for investors to do their research and to be aware of the risks and potential benefits involved in investing in the space.

For a list of US cannabis stocks to consider, click here.

How to invest in cannabis: A side note

Many companies in the cannabis space have begun to veer in one direction or another.

For example, some of the largest marijuana producers have moved towards deals with beverage or pharmaceutical companies for the production of novel new products. Others in the space continue to pursue innovation in the recreational market.

The beverage side in particular has seen interest from companies, with cannabis firms partnering with brew businesses. One example is Canopy Growth (NYSE:CGC,TSX:WEED), which has teamed up with Constellation Brands (NYSE:STZ), a leading producer in the alcoholic beverage industry.

It’s important to be aware that each niche has its own possibilities and challenges. For instance, while many market participants are convinced of the promise in beverages, these drinks have been hampered by strict marketing rules, among other factors.

Another aspect to consider is whether to pursue big caps or small caps. That has a lot to do with personal comfort. While big caps are often regarded as more stable than small caps, in the cannabis industry there’s been considerable volatility.

 

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How to invest in cannabis: Cannabis ETFs

If you really know your cannabis companies, then you could enjoy larger gains by simply investing in those specific firms. However, if you aren’t overly familiar with the cannabis space or you are new to it, it could be a good idea to check out the cannabis exchange-traded funds (ETFs) available.

A cannabis ETF gives you exposure to several different cannabis stocks and takes the guesswork out of cherry picking which stock to bet on. One issue with ETFs is that like any other group dynamic, if one stock drops off it brings the whole fund down proportionally with it. Of course, the opposite is also true.

Recently investors have seen the addition of new ETFs offering exposure to the US market, including firms with entries into the hemp space, thanks to the sales of CBD products.

For a list of cannabis ETFs to consider, click here.

How to invest in cannabis: Final thoughts

No matter which way you slice it — or grind it, in this case — the cannabis market is an exciting business to invest in right now. Whether you invest in cannabis ETFs or Canadian or US marijuana stocks, or if you’re still waiting on the sidelines for more maturity from the types of cannabis companies trading, this industry is one to watch, and one that looks like it’ll keep climbing in the future.

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TransCanna (CSE: TCAN) (FSE: TH8) (“the Company”) is pleased to announce that plants are going into its first crop management site today – a greenhouse in Wesley, California.

The Company partnered with the 3rd generation cannabis farmers at 365 CannaFarms to consult on the construction of the state-of-the-art, computer-controlled greenhouse and to help manage the crop for the client, Central Valley Growers. The entire crop is comprised of premium genetic strains from Lyfted Farms, TransCanna‘s wholly-owned subsidiary.

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Acquisition strengthens clinic portfolio for mental health treatment using psychedelic-assisted therapies

Numinus Wellness Inc. (“Numinus” or the “Company”) (TSXV: NUMI), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced it has closed its acquisition of the Neurology Centre of Toronto (NCT), a leading Canadian provider of clinical neurologic care. The purchase agreement was previously announced on July 6, 2021 .

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