During the past trading week (July 22 to 26), a maligned Canadian cannabis firm removed executives from leadership positions at the company.

A plan from Quebec to ban most edible cannabis products made headlines, and the launch of a new cannabis exchange-traded fund (ETF) also caught attention.


Here’s a closer look at some of the biggest news during last week’s trading period.

 

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CannTrust sacks CEO

Shares of CannTrust Holdings (NYSE:CTST,TSX:TRST) received a brief boost following the dismissal of the company’s leadership team. The firm has been embroiled in a scandal since Health Canada found illegitimate growing at CannTrust’s facility in Pelham, Ontario.

New reports indicate that several executives at the company, including CEO Peter Aceto, were aware of the improper growing operations and encouraged a continued cover up. Additionally, the company shot a promotional video in which the unlicensed rooms can be seen.

After the new revelations in the CannTrust scandal, an internal investigation of the company came to the conclusion that a management change was needed.

On Thursday (July 25), the firm informed market watchers that Aceto had been terminated effective immediately. The board of directors also requested the resignation of Eric Paul, former CEO, co-founder and chair of the company.

Robert Marcovitch, who was appointed by CannTrust’s board to lead an investigation into the non-compliance issues, has been appointed interim CEO. Marcovitch previously acted as CEO of winter sports equipment company K2 Sports.

Shares of CannTrust in New York immediately jumped 12.82 percent during after-hours trading on Thursday. Once Friday’s trading session started, shares of the firm opened at US$2.20. As of 11:26 a.m. EDT, CannTrust’s NYSE shares were up 15.38 percent.

Similarly, in Toronto the company was trading up 13.95 percent at C$2.94 at 11:31 a.m. EDT on Friday.

British tobacco company gets cannabis exposure

Imperial Brands (LSE:IMB,OTCQX:IMBBF) announced a C$123 million investment into Auxly Cannabis Group (TSXV:XLY,OTCQX:CBWTF) for a 19.9 percent stake in the Canadian company.

 

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“The shared ability to rapidly innovate as the Canadian market evolves is key to future growth and Auxly will work closely with a small dedicated team from Nerudia in developing a portfolio of new and enhanced brands and products,” Imperial said in a statement.

As part of the agreement, Auxly will become the exclusive cannabis partner for Imperial on a global scale. Auxly will also get access to the licenses for vaporizer technology from Imperial’s subsidiary Nerudia.

Quebec moves forward with ban on cannabis edibles

On Wednesday (July 24), Quebec announced regulations to block the sale of cannabis edibles that would directly appeal to minors, such as desserts and chocolate edible products. These products are set to become legal in Canada later this year.

The province is also looking to prevent the sale of cannabis topical items.

The Cannabis Council of Canada, a group representing the interests of licensed producers, called the decision by Quebec a win for the black market.

“(The) decision by the Quebec government to issue draft regulation with respect to edible cannabis products and cannabis extracts is extremely disappointing. If implemented, the efforts of the legal cannabis industry to replace the illicit market and keep cannabis out of the hands of minors will be severely hindered,” Megan McCrae, board chair of the council and vice president of marketing at Aphria (NYSE:APHA,TSX:APHA), said in a statement.

Market updates

On Tuesday (July 23), a new marijuana-centric ETF that will be actively managed by Tim Seymour, CIO of Seymour Asset Management and co-host CNBC’s Fast Money, reached the public market.

The Amplify Seymour Cannabis ETF (ARCA:CNBS) gives investors exposure to 25 marijuana holdings, with the top five holdings representing some of the biggest firms in the space.

Aurora Cannabis (NYSE:ACB,TSX:ACB), GW Pharmaceuticals (NASDAQ:GWPH) and Canopy Growth (NYSE:CGC,TSX:WEED) are the top three holdings by weightage in the fund. The total net asset value for the Amplify Seymour Cannabis ETF is US$2.47 million.

“The global legal cannabis industry is still very much in its infancy and presents an attractive growth opportunity for investors looking to capitalize on this emerging frontier,” said Seymour.

 

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As interest in edibles and the ingestible market in Canada rises, the Tinley Beverage Company (CSE:TNY,OTCQX:TNYBF) confirmed it is inching closer to a deal with a Canadian company in order to bring its cannabis-infused line of drinks north of the border.

“Health Canada hasn’t finalized the manufacturing licenses yet. As soon as those types of licenses are awarded to our intended partner, we’re ready to go,” Jeff Maser told Yahoo Finance Canada. The executive did not disclose the potential partner for his company.

Cannabis-infused drinks will become legal in Canada as part of the second phase of legalization taking effect on October 17. However, Health Canada, the regulatory agency tasked with overseeing the cannabis industry, confirmed the launch of these products will take time and has said that actual sales will start in December.

Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) was issued a warning on Monday (July 22) from the US Food and Drug Administration (FDA) for unsubstantiated claims regarding some of its hemp-derived products.

The FDA highlighted four CBD-based products sold online by the multi-state operator (MSO) that are making improper medical claims. The federal agency also said that several elements of the MSO’s website need to be updated.

“We can affirm that nothing in the letter raises any issues concerning the quality and consistency of any Curaleaf product or calls into question the high safety standards of the company’s cultivation and manufacturing processes,” the firm said. It plans to respond to the agency about its requests.

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.

 

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Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) today announced that Philip Young, CEO and Director, will present virtually at the Benzinga Healthcare Small Cap Conference taking place September 29-30, 2021.

Philip Young, CEO and Director will begin his presentation at 10:30 A.M. ET on Wednesday, September 29, 2021.

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Celebrates Canadian launch of the award-winning Keef Brands in Ontario with additional provincial shipments underway

Emerging leader in innovative health and wellness beverages and products, BevCanna Enterprises Inc. ( CSE:BEV , Q:BVNNF , FSE:7BC ) (“ BevCanna ” or the “ Company ”) is excited to announce the shipment of its award-winning Keef Brands cannabis-infused beverages to the Ontario Cannabis Store (OCS). The Keef products will be available in Ontario retail locations across the province and online at ocs.ca in October 2021 and are also expected to hit British Columbia and Alberta shelves by early November 2021.

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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.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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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.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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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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