During the past trading week (September 16 to 20), Health Canada offered some initial resolution to a major scandal in the Canadian marijuana industry.
A return of product to the beleaguered cannabis player made headlines, while the latest celebrity to endorse cannabidiol (CBD) also caught attention.
Here’s a closer look at some of the biggest news during last week’s trading period.
Summer from hell continues for CannTrust investors
On Tuesday (September 17), CannTrust Holdings (NYSE:CTST,TSX:TRST) informed shareholders that Health Canada has officially suspended its ability to produce cannabis following the discovery of unlicensed growing done by the company.
“The notice states that Health Canada has suspended CannTrust’s authority to produce cannabis, other than cultivating and harvesting, and to sell cannabis,” the firm said in a statement.
The suspension directly affected a decision by the Alberta Gaming, Liquor and Cannabis Commission (AGLC) to return C$1.3 million worth of CannTrust product back to the producer.
A spokesperson for the provincial agency told the Investing News Network, “(The AGLC) would consider stocking CannTrust product in the future should Health Canada reinstate its license.”
Alberta joins Ontario, which previously made the decision to return all of the CannTrust product it had in stock at the Ontario Cannabis Store in August.
John Legend joins CBD market
“I have been a believer in the benefits of CBD for some time,” said Legend. “I appreciate that they’re committed to setting a high standard within an industry that has to date been fairly unregulated.”
The company built its reputation with the sale of cannabis edible products in California. Now the firm is looking to expand its product availability with hemp-derived CBD product lines.
This new partnership is also tied to an endorsement from Casper Sleep, an online mattress seller, for PLUS’ new melatonin and CBD-infused SLEEP line of products.
In a note to investors, Canaccord Genuity wrote that the company’s tetrahydrocannabinol (THC) products may receive enhanced awareness thanks to the broader options from the CBD line.
Bruce Linton, co-founder and former CEO of Canopy Growth (NYSE:CGC,TSX:WEED), is getting ready for his return to the cannabis market. This past trading week, shares of Better Choice Company (OTCQB:BTTR) spiked after it informed investors Linton will become a special advisor to the CBD firm.
Progress comes as like-minded people push forward together. In that spirit, kudos are due to Bruce Linton today as he starts his next chapter in the cannabis sector. #FutureGrowth
— Canopy Growth (@CanopyGrowth) September 17, 2019
“I look forward to working closely with the Better Choice team to solidify its global expansion plans, identify other strategic opportunities that will increase shareholder value and expand my role at the company in the future,” Linton said.
The company plans to buy certain assets from Tryke Companies, including six stores under the Reef Dispensary name. “With significant in-state populations and tourist traffic, Nevada and Arizona were key near-term targets for expansion,” Charlie Bachtell, CEO at Cresco Labs, said in a statement.
In the lead up to the launch of edibles and infused products, a variety of cannabis companies have been racing to get their offerings ready for the launch of these new novelty items. Case in point: RavenQuest BioMed (CSE:RQB,OTCQB:RVVQF) created a joint venture for the development of a line of THC and CBD tea drinks.
“As Canada’s legalization of edibles and beverages draws near, specialized tea is a great initial foray into the beverage segment because many recreational stores have limited space for bottled inventory,” said George Robinson, CEO of the company.
Edible products will become legal in Canada on October 17. However, customers won’t be able to purchase these products until mid-December, according to Health Canada.
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: Valens GroWorks is a client of the Investing News Network. This article is not paid-for content.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).