This past trading week (September 11-15) saw the announcement of a new partnership between two major licensed producers (LPs) with the province of New Brunswick for their plan once adult use becomes legal next year in Canada. News from the US and the week’s biggest gainers complete the cannabis weekly round-up.
According to a report by The Hill Nevada’s Legislative Counsel Bureau said on Monday the state doesn’t specifically ban the operation of a lounge for the use of marijuana.
“None of the four other states where marijuana is legal for recreational use — Washington, Colorado, Alaska and Oregon — currently allow so-called pot lounges. All four states restrict marijuana use to private residences,” the report indicated.
Tom Angell, a cannabis advocate and founder of Marijuana Majority, told The Hill the concept of a cannabis lounge should be a “no-brainer” due in part to the massive influx of tourists to the area.

Another major state active in the role of cannabis in the US managed to surpass a massive mark in the business. The recreational sales for cannabis in Colorado surpassed $100 million for the month of July, according to a report by The Cannabist.
A recent tax change may be behind the massive influx for this particular month’s sale. A senior economist for the Colorado Legislative Council Staff, Larson Silbaugh told The Cannabist the 2.9 percent rate collected in July looked “inflated.”
“Department of Revenue reported $735,326 was remitted by retailers at the 2.9 percent tax rate,” The Cannabis reported.
Bloomberg wrote on Aphria’s (APH:CA) application of a license to grow medical marijuana in the state of Ohio, despite the seemingly still gray legal area when it comes to Canadian LPs operating in the US, especially if they are listed on the Toronto Stock Exchange.
Jason Zandberg, an analyst with PI Financial told Bloomberg, Canadian producers looking into the US market faces a business risk due to the current federal illegality of cannabis.
“If they continue to invest more money in the U.S., at least from my perspective, I’m not going to place any value on it,” Zandberg told Bloomberg.

Province announces partnership with LPs for recreational marijuana consumption

Last week the government of Ontario unveiled its plans for the roadmap it has on the legalization of cannabis next year in the country. Now the province of New Brunswick gave a hint of their own strategy moving forward and as of right now it heavily involves two LPs.
Organigram Holdings (TSXV:OGI; OTCQB:OGRMF) and Canopy Growth (TSX:WEED) announced their deals with the province in which they will supply millions of grams of cannabis for recreational use.
The New Brunswick located Organigram announced it agreed to supply 5 million grams per year to the province. “The agreement is estimated to have at least a retail value of between $40 million to $60 million per year,” the company said.
Mark Zekulin, president of Canopy said in a press release, the company will begin using local trades and hire people for a New Brunswick site getting established in Fredericton.
Canopy’s deal with the province includes 4,000,000 grams of cannabis related products, and the company expects to see an estimated retail value of $40 million during its first year.
After Ontario detailed its proposed plan for the cannabis use in the province, various opinions were expressed by cannabis enthusiasts and LPs were expressed, a poll now shows a majority of citizens is receptive to the government’s plan.
“Campaign Research found 51 per cent of those surveyed back Premier Kathleen Wynne’s new plan to have cannabis sold solely through standalone LCBO-operated stores and a website,” the Toronto Star reported.
Eli Yufest, CEO of Campaign Research told The Star, despite media reports most Ontarians want what the provincial government is offering.

Jason Zandberg, an analyst with PI Financial was also highlighted in a different news report this week, as Cantech Letter wrote on his comments claiming the much-discussed recreational cannabis plan from the provincial government of Ontario.
“We believe larger producers like MedReleaf, Aphria, Canopy Growth and Aurora Cannabis may have an advantage negotiating supply agreements due to the scale of their operations,” Zandberg said. “We expect more Provinces to announce plans for distribution similar to Ontario.”
The Canadian marijuana ETF continued its experienced growth this past trading week. Over the five-day trading period, the Marijuana Life Sciences Index ETF (TSX:HMMJ) saw a 5.7 percent increase. As of 1:52 p.m. EST on Friday, the ETF traded at $9.07. Since its inception earlier this year, the index has dropped 11.41 percent.
Two of the biggest winners during the week in the market were Supreme Pharmaceuticals (TSXV:FIRE) and Aurora Cannabis (TSX:ACB), which saw an 8.85 and 6.17 percent increase respectively.
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.

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

Cannabis Weekly Round-Up: Ontario Unveils Cannabis Plans

By Bryan Mc Govern – September 8, 2017
This past trading week (September 4-8) saw a detailed announcement from the provincial government of Ontario related to their plans for what the legal cannabis market will look like in the area, a surprising rating by a cannabis analyst and a potential look at how cannabinoids could mess up the opioid business. Market news and some of the week’s top gainers complete our weekly cannabis roundup.
On Friday the Ontario government revealed the model it plans to follow for the recreational legalization of cannabis next year.
“Ontario’s Liberal government is launching a government-controlled cannabis monopoly that will see 150 legal marijuana stores opened across the province by 2020,” The Globe and Mail reported.
Medical cannabis will remain under the federal government’s jurisdiction. The province also announced the minimum legal age to buy cannabis will be 19 and it will be illegal for people to consume cannabis recreationally outdoors.
“The system will be overseen by the province’s Liquor Control Board of Ontario, but cannabis will be sold in a new system of stand-alone stores operated by a subsidiary of the Crown corporation,” the report added.
According to a report from Vice News, the provincial government will continue its crackdown of private dispensary stores currently in place, which it deems illegal.
Abi Roach, the owner of a local weed lounge in Toronto, told VICE this model is good for new consumers but won’t be able to satisfy the needs of “actual cannabis consumers.”

During the week, the Investing News Network (INN) reported on Maricann’s (CSE:MARI) disclosure of a windstorm in March, which affected their projected sales for the rest of the year. The company suffered damage for two of its five greenhouse facilities, causing sand and other “foreign materials” to mess with the growth production in the location.
After evaluating the damage and not being able to receive a definitive answer from its advisory board on the safety of the product, the company decided to destroy the product.
“We could have attempted to salvage the plants, however, there is no way to ensure that spot contamination didn’t occur,” Ben Ward, CEO of Maricann said in a statement.
In an interview with BNN, Bruce Linton CEO of Canopy Growth (TSX:WEED) talked about the disruptive potential cannabis, and more specifically cannabinoids have when it comes to the pain relief market.
When asked about it Linton explained cannabinoids can replace opioids as the general pain reliever many people have to live with on a daily basis and has caused multiple cases of addiction. Instead with cannabinoids, Linton promised the same relief with no negative or additive effects.
“If you’re somebody who’s in the opioid business, you know cannabinoids are going to disrupt you,” Linton said.

Cantech Letter reported on a Canaccord Genuity analyst Matt Bottomley maintaining a “Speculative Buy” rating for Cronos Group (TSXV:MJN), and setting their trice target for $3 in one year.
“Bottomley thinks Cronos Group will generate Adjusted EBITDA of negative $2.4-million on revenue of $9.0-million in fiscal 2017,” the report indicated. “He expects those numbers will improve to EBITDA of positive $13.0-million on a topline of $44.0-million the following year.”
The Canadian marijuana ETF continued its new found growth this past week. Over the five-day trading period, the Marijuana Life Sciences Index ETF (TSX:HMMJ) saw a 1.17 percent increase. As of 12:53 p.m. EST on Friday, the ETF traded at $8.64. Since its inception earlier this year, the index has dropped 15.8 percent.
Two of the biggest winners during the week in the market were Supreme Pharmaceuticals (TSXV:FIRE) and Aurora Cannabis (TSX:ACB), which saw an 8.85 and 6.17 percent increase respectively.
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.