This past trading week (March 5 – 9) saw two major conference call updates from two cannabis operators, one in the US and the other with Canadian and international ventures. The Investing News Network (INN) had the opportunity to get an inside look into one of the biggest deals of the cannabis industry. The weekly performance of the Marijuana Life Sciences Index ETF and an interview with the CEO of a licensed producer (LP) complete this Cannabis Weekly Round-Up.

This week investors got a closer look at two companies offering conference calls to provide updates on recent activities and quarterly reports. First, on Wednesday (March 7), LGC Capital’s (TSXV:LG) CEO John McMullen sought to present a clear vision of the company’s international ventures and its current position as a cannabis investor company.

“We believe our investee companies can reach an annualized net production to LGC Capital of 40,000 to 80,000 kilograms in 2019-2020,” McMullen told shareholders.

LGC faced a delay with its investment in South African company House of Hemp since as per the agreement, the producer is required to obtain a license in the country first. “The reality is that to date the government of South Africa has not issued such a license to House of Hemp or to any other company in its jurisdiction,” McMullen said.

Then on Thursday (March 8), it was MPX Bioceutical Corporation’s (CSE:MPX; OTC:MPXEF) turned to share an update with analysts and investors. Scott Boyes, president, and CEO of MPX announced the company’s footprint in the US was steadily increasing, directly in the Arizona market thanks to the company’s most recent acquisitions.

“This is one of the largest footprints in the US cannabis industry and one we intend to expand even further by expanding in states where we already operate and by entering into new markets,” Boyes said after detailing the current production capabilities and dispensary locations across the US for MPX.

When asked about the impact the Sessions memo had in the business of the company Boyes and Beth Stalova, chief operating officer of MPX, agreed that the whole case had not caused any major issues for MPX.

“It was like a minor speed bump that the industry raced over pretty fast,” Boyes said during the call.

 

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Up close and personal with Newstrike Resources

The Investing News Network (INN) had the opportunity to chat with Jay Wilgar, CEO of Newstrike Resources (TSXV:HIP) on the fallout of the CanniMed deal back in January. Wilgar provided an inside look into the days leading up the deal with CanniMed getting tossed aside, how his company began a reconstruction work and where he sees the strengths of Newstrike becoming key once the adult-use of cannabis becomes legal in Canada later this year.

“The vast majority of Canadians, sure, they are looking for safe products they are looking for a controlled market that they are going into, but a lot of people are also going to look for a brand, just like they do with any other consumer good,” Wilgar said.

Wilgar also told INN about the relevance branding will have when it comes time to differentiate between all the cannabis companies in the public markets and revealed Newstrike may have been an option when it came to the blockbuster deal between Aurora Cannabis (TSX:ACB; OTCQB:ACBFF) and CanniMed.

Regarding that blockbuster deal, this week CanniMed issued a statement to its shareholders saying Aurora was successful in its offer for all issued and outstanding common shares of the company. CanniMed further explained:

The number of CanniMed common shares (the “CanniMed Shares”) tendered as at the close of business on March 8, 2018 totals 17,847,341, representing approximately 70.66% of the total outstanding CanniMed Shares on a fully diluted basis. All of the conditions to the Offer having been met, Aurora will take up the tendered CanniMed Shares and pay for those shares as soon as possible, and in any event not later than 3 business days after the CanniMed Shares are taken up. Aurora will issue a total of approximately 50.6 million Aurora common shares and pay a total of approximately $98 million in cash for the CanniMed Shares tendered as of March 8, 2018.

 

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This past week INN also had the chance to catch up with Neil Closner CEO of MedReleaf (TSX:LEAF). Closner talked about the potential the worldwide medical cannabis market has for the entire industry, the launch of MedReleaf’s lifestyle brand appealing to the sensibilities of recreational marijuana consumers.

One of the unique aspects of MedReleaf’s business includes a DNA-based test where patients will be able to find out how strong of a dose do they need for their cannabis medical products. Closner told INN his company hopes the test will “enable a lot of new doctors to enter the market.”

During the past trading week, the Marijuana Life Sciences Index ETF (TSX:HMMJ) increased in value 3.35 percent. As of 1:27 EST on Friday, the ETF traded at $19.13 per share. Since it’s inception the ETF has gone up in value 86.63 percent and so far this year index has started turning things around and increased 1.06 percent in value.

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

Cannabis Weekly Round-Up: 2018 Canadian Budget Reveals Cannabis Tax Plan

March 2, 2018 – By Bryan Mc Govern

This past trading week (February 26 – March 2) a cannabis producer decided to safeguard its US interest from the regulations of its exchange by switching into the Aequitas NEO Exchange. Taxes on cannabis products in Canada and the launch of the first direct marijuana stock into the Nasdaq complete this Cannabis Weekly Round-Up.

On Monday (February 26) Cronos Group (TSXV:MJN) announced it had received approval to list its common shares on the Nasdaq Global Market under the symbol “CRON.” This unprecedented listing will co-exist with the company’s current TSX Venture option.

“We believe this will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors,” Mike Gorenstein, CEO of Cronos Group said in the company’s announcement as reported by the Investing News Network (INN).

Later in the week, it was reported Bruce Linton, CEO of Canopy Growth (TSX:WEED), said his company had been working to also launch on the Nasdaq but had to put those plans on hold once the investment deal with Constellation Brands (NYSE:STZ) came into the picture. The report from VICE Money credited a report from Beacon Securities analyst Vahan Ajamian for the announcement.

Linton told VICE Money it would be focussing on the Nasdaq listing now that the Constellation Brands deal was done. “What I like about the Nasdaq is they basically do not have a pot policy,” Linton said. “If you follow all the rules you are welcome on their exchange.”

 

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Cannabis company drops TSXV in favor of saving US interest

Maple Leaf Green World (TSXV:MGW) is a company listed on the TSXV with existing assets in the US. The exchange sent a warning to the company since it does not allow cannabis companies to hold interests in the market below the border, due to the status of the drug on the federal level.

At first, Maple announced it would defend its status with documentation arguing it had not started production specifically in its Nevada facility. This week, however, the company decided to avoid any more issues and will be moving its common shares into the Aequitas NEO Exchange.

“The US part of our operations is a big piece of the company, so divesting it really was not an option and being delisted would not go over too well with the shareholders,” Dale Shirley, investor relations for Maple Leaf Green World, told INN.

A day later after announcing the new home for their common shares, the company provided shareholders with an update on the reason they chose the NEO instead of more popular exchanges for Canadian cannabis companies operating or with assets in the US.

“As a company deeply entrenched in the North American cannabis sector, it was important for management of the Company to select to partner with an exchange that has clear views on where it stands in relation to the industry,” Maple Leaf explained.

The market reacted this week by cutting Maple Leaf’s share price down 18.18 percent over the past five trading days, a $0.18 per share loss.

 

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As part of its fourth-quarter report for 2017, GMP Capital (TSX:GMP) attributed its growth of $59.3 million reported revenue to the burgeoning blockchain and cannabis sectors according to Harris Fricker, president, and CEO of GMP.

“Underwriting revenue in fourth quarter 2017 increased 30 [percent] compared with fourth quarter 2016 led by robust client activity in the blockchain and cryptocurrencies and cannabis sectors,” GMP wrote as one of the reasons for its revenue numbers.

Canadian budget reveals taxing plans from the federal government

The Canadian federal government unveiled its official 2018 budget this past week and in it came the tax strategy proposed for cannabis products. As reported by INN taxing for cannabis products will come down to two options: whichever is the highest applicable per product, either a $1 per gram standard or 10 percent of a product price.

The only products that won’t face taxes are those with low amounts of tetrahydrocannabinol (THC) and pharmaceutical items derived from cannabis, so long as they have a Drug Identification Number and are only available with a prescription.

Canadians for Fair Access to Medical Marijuana (CFAMM) issued a statement over the “outrage” they had in light of this budget. According to the patient advocacy group, the products facing no taxes are a minority among the patient population and represent a small representation of use.

“Exempting a small minority of patients does not address the affordability issue and implies some patients are more legitimate than others, Jonathan Zaid, executive director of CFAMM stated.

During the past trading week, the Marijuana Life Sciences Index ETF (TSX:HMMJ) increased in value 2.6 percent. As of 1:36 EST on Friday, the ETF traded at $18.54 per share. Since it’s inception the ETF has gone up in value 80.88 percent and so far this year index has decreased 2.06 percent in value.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Editorial Disclosure: Maple Leaf Green World is a client of the Investing News Network. This article is not paid-for content.

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

 

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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.

 

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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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