During the past trading week (May 20 to 24), the California Senate voted in support of a bill that could open the doors to state-chartered cannabis banks.

Shareholder support for an upcoming critical vote on a major acquisition deal made headlines, while the issuance of new retail licenses to public players also caught attention.

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

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

California votes for state-chartered cannabis banks

On Tuesday (May 21), the California Senate approved legislation that would allow the creation of state-sanctioned banks capable of participating in the marijuana market.

“Hopefully, it will open up the possibility of more banks serving cannabis companies in California,” Marc Adesso, veteran cannabis attorney with law firm Waller Lansden Dortch & Davis, told the Investing News Network in an email statement.

Adesso said he hopes to see other states follow suit with California’s bill.

The legislation must now be approved by the State Assembly and California Governor Gavin Newsom.

Attorney Robert Selna with California-based Wendel, Rosen, Black & Dean, told CNBC that the bill, if approved, “will help cannabis companies pay the rent.” However, he is unsure how it may interact with federal law, which still prevents banks from conducting business with US marijuana companies.

Shareholder vote deadline looms

Following the announcement of a blockbuster deal under which Canopy Growth (NYSE:CGC,TSX:WEED) is seeking to acquire an option to buy Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF) at a time when cannabis becomes legal in the US, the two firms have had to face questions from shareholders.

On Thursday (May 23), Canopy Growth issued a package to shareholders breaking down the deal to gain support for a favorable vote. Shareholders of the Canadian firm face a voting deadline of June 17.

Also on Thursday, private investment firm Cresco Capital Partners voiced its support for the deal as an Acreage investor.

“From an Acreage perspective, it now has 58 million shares of Canopy Growth injected in the company to continue to make strategic acquisitions and expand across the country,” Matt Hawkins, managing partner at Cresco, said in a letter to investors, according to a report from MarketWatch.

Market updates

Manitoba has confirmed an additional round of retail license winners in the province. Public retailers Westleaf (TSXV:WL,OTCQB:WSLFF), High Tide (CSE:HITI,OTCQB:HITIF) and Fire & Flower Holdings (TSXV:FAF) are the selected marijuana firms for stores in Altona, Niverville and Swan River, respectively.

Marijuana producer Tilray (NASDAQ:TLRY) announced on Thursday that its Portugal-based subsidiary has obtained a standard manufacturing license and Good Manufacturing Practices (GMP) certification based on standards from the European Medicines Agency.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

“This licensing and certification marks a critical milestone for our growth in Portugal and Europe,” said Sascha Mielcarek, managing director for Tilray in Europe. “The next phase of GMP certification will allow us to utilize the full capacity of our multi-faceted facility and continue to serve more patients in-need.”

The cannabis firm plans for its Tilray Portugal Unipessoal subsidiary to serve as its hub in Europe in terms of export for product. “This license and certification further enhances Tilray’s capacity to serve international markets such as Germany and other EU member states, as well as non-EU jurisdictions that recognize EU GMP certification,” the company announced.

Multi-state operator Columbia Care (NEO:CCHW) announced a brand new collaborative medical study on the effectiveness of proprietary cannabidiol (CBD) tablets for pain management in patients with inflammatory arthritis.

The study is designed to inspect pain management done with the ClaraCeed tablets alongside existing non-opioid treatments already in use by the nearly 100 patients enrolled for the research.

“We are also collecting safety information regarding the use of medical cannabis in the rheumatologic population, many of whom are taking numerous other medications,” said Dr. Jill Landis, lead on the study and board certified rheumatologist at Westmed Medical Group, Columbia Care’s partner in the research.

On Wednesday (May 22), Dixie Brands (CSE:DIXI.U,OTC Pink:DXBRF) announced the launch of dissolvable, hemp-derived CBD-infused tablets for beverages. A subsidiary of the public firm is launching the novelty product under the name Fizz Tabs.

The launch line will include three different items. According to the company, these tablets are set to dissolve in water and have effects lasting between four to six hours.

“The line expansion creates an on-the-go option for consumers and promotes a powerful addition to wellness regimens,” the company indicated in a press release.

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: Acreage Holdings and High Tide are clients of the Investing News Network. This article is not paid-for content.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

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

Cannabis Weekly Round-Up: Pot Exec Second Highest Paid in 2018

By Bryan Mc Govern, May 17, 2019

During the past trading week (May 13 to 17), one of the leading US Democratic candidates voiced his support for marijuana decriminalization, but not full legalization yet.

The announcement that a cannabis CEO cracked the top five executives paid in 2018 made headlines, while a new acquisition deal in the Canadian cannabis market caught attention.

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

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Data from Bloomberg confirms that Brendan Kennedy, CEO of Tilray (NASDAQ:TLRY), was the second highest paid CEO in 2018. According to the report, Kennedy was awarded US$256 million in the year Tilray went public and saw its meteoric rise in the stock market.

The cannabis executive received the bulk of his compensation in the year in the form of “special awards.” On his whole payment, Bloomberg wrote:

Kennedy’s 2018 compensation consisted of US$425,000 in salary, an equal-size bonus and restricted shares and stock options worth US$5.82 million and US$25.1 million, respectively, when they were granted. At year-end, the shares had swelled to US$52.9 million and the options to US$202.3 million. The value of his package has dropped about 25 percent so far this year as the stock has continued to tumble. It closed Thursday at US$47.59.

Tilray’s CEO placed only behind Elon Musk, CEO of Tesla (NASDAQ:TSLA), in Bloomberg’s list. The rest of the top five are Bob Iger, CEO and chairman of Walt Disney (NYSE:DIS); Tim Cook, CEO of Apple (NASDAQ:AAPL); and Nikesh Arora, CEO and chairman of Palo Alto Networks (NYSE:PANW).

Leading Democratic presidential candidate supports marijuana decriminalization

A Joe Biden campaign spokesperson told CNN this past week that the US presidential candidate is in favor of legislation to decriminalize marijuana. However, the representative wouldn’t confirm support for a full legalization process for the drug.

“He supports decriminalizing marijuana and automatically expunging prior criminal records for marijuana possession, so those affected don’t have to figure out how to petition for it or pay for a lawyer,” Andrew Bates, a Biden campaign spokesman, told the news outlet.

Bates explained that Biden, if elected, would let the states continue on the path of legalization as they elect to do so. Biden would also seek to make it easier to reseach cannabis by recategorizing the plant as a Schedule 2 drug.

According to a recent Ipsos poll, Biden is ahead of the Democratic candidate pack with 29 percent support from registered voters in the US. Most candidates for the left have voiced their support for some form of marijuana reform.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

New acquisition moves forward in the Canadian market

On Thursday (May 16), The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) confirmed an all-stock deal worth C$48 million to acquire Blissco Cannabis (CSE:BLIS,OTCQB:HSTRF).

Navdeep Dhaliwal, CEO of Supreme Cannabis, said in a press release that Blissco has been able to create a “distinct and authentic” brand centered around premium products for the wellness market.

“This transaction will allow Blissco to focus its business around the production and commercialization of cannabis oils and topicals for the premium wellness consumer,” Dhaliwal said.

According to the agreement, if shareholders approve the acquisition, Blissco shares will be converted to a 0.24 of a common share of Supreme Cannabis.

Blissco is set to become the health and wellness lead operation of Supreme Cannabis if the deal goes through. The two firms need approval from just over 66 percent of Blissco shareholders to complete the transaction.

Bankers in the US show support for marijuana companies

A new survey in the US shows bankers support the idea of banks being allowed to service the marijuana industry and its businesses.

“Like the rest of us, bankers are on the fence as to which direction the economy is headed,” Mark Jacobsen, president and CEO of Promontory Interfinancial Network, said in a press release. “The good news is that bankers may be feeling more positive about their industry as this quarter’s survey shows banker confidence on its first upswing in five quarters.”

A total of 82 percent of bank executives surveyed from 453 different banks showed support for companies that commercially sell marijuana. The biggest show of support came from areas in the west and midwest of the US.

Survey respondents represent over 8 percent of the banks in the US.

Market updates

On Monday (May 13), Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF) confirmed its interest in entering into a real estate investment trust play.

The company confirmed its intention to sell real estate assets to GreenAcreage Real Estate (GARE) for these to be leased back to Acreage.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Acreage holds a 20 percent interest in the parent company of GARE, GreenAcreage Management.

Shares of Columbia Care (NEO:CCHW), a recently publicly launched marijuana company with operations in the US, was added to a new US-focused exchange-traded fund (ETF).

Operated by Horizons ETFs Management (Canada), the Horizons US Marijuana Index ETF (NEO:HMUS) offers investors exposure to the US cannabis investment market with an index of multi-state operators.

According to Horizons ETFs, Columbia Care’s C$2 billion valuation makes the company eligible for a maximum weighting of 10 percent in the fund’s portfolio.

A report from the New York Post on Sunday (May 12) indicated that executives from retail giants Walmart (NYSE:WMT) and Target (NYSE:TGT) are pursuing launch plans for the sale of cannabidiol (CBD) products.

Interest for these products has risen as other established retailers, such as CVS Pharmacy (NYSE:CVS) and Walgreens, a Walgreens Boots Alliance (NASDAQ:WBA), kicked off sales of these novelty products.

Executives from Aurora Cannabis (NYSE:ACB,TSX:ACB) questioned interest in marijuana-infused beverages in the Canadian market.

According to a report from BNN Bloomberg, during a conference call with investors, Cam Battley, chief corporate officer at Aurora Cannabis, said the company has focused on areas of the market known to attract consumer demand based on what legal US states have seen in their market evolution.

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: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

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.

Keep reading... Show less

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.

Keep reading... Show less

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.

Keep reading... Show less
  • 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 ”).

Keep reading... Show less

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.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

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

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

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

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

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.

Keep reading... Show less