This past trading week (March 19-23) the cannabis markets saw a new company enter the public sector on the Canadian Securities Exchange (CSE). A new study projected the benefits of legalizing marijuana for tax purposes in the US, market news and an interview with Namaste Technologies complete this Cannabis Weekly Round-Up.
The Investing News Network (INN) had the chance to catch up with Sean Dollinger, president, and CEO of Namaste Technologies (CSE:N; OTC:NXTTF), to talk about the company’s plans this year and the progress of their recently launched NamasteMD platform.
“Our whole idea is about being a platform, so LPs place their products on our platform; whereas we are the technology behind it,” Dollinger told INN.
Lawmakers for one of the biggest cannabis markets in the US are exploring the possibility of reducing taxes for the drug as a way to combat the existing illegal market. On Thursday (March 15) the Los Angeles Times reported a group of California lawmakers proposed a reduction of state taxes for three years on growing and selling cannabis.
“We need to give legal businesses some temporary tax relief so they do not continue to be undercut by the black market,” Assemblyman Tom Lackey (R-Palmdale) said. According to the Los Angeles Times, if approved the new legislation wants to cut the state excise tax from 15 to 11 percent, in addition to suspending a cultivation tax of USD$148 per pound.
A new study projected the benefits a legal framework for cannabis could have on the US economy up to the year 2025. The report, prepared by cannabis research firm New Frontier Data, projected USD$105.6 billion in federal tax revenue benefit for the US by 2025 if marijuana were to be legalized nationwide.
GMP Securities analyst Martin Landry issued a note to investors saying he sees Aurora fully valued, even after the CanniMed acquisition.
“By combining with CMED, ACB has evolved into the industry’s largest LP by market cap. with significant platforms to capitalize on both domestic and international growth opportunities,” Landry wrote, according to Cantech Letter. “While we like ACB’s strong balance sheet and growth prospects, we feel these are already reflected in the company’s valuation.
The Green Organic Dutchman Holdings, a private cannabis producer announced this past week it filed an amended and restated preliminary long form prospectus with the securities regulatory authorities as the company prepares for its initial public offering. At the Canaccord Genuity cannabis investor day conference, the company shared with investors it would be preparing for its public launch and revealed it expects to have a completely funded 116,000 kilograms of annual production.
This past week CannaRoyalty (CSE:CRZ; OTCQX:CNNRF) and National Access Cannabis (NAC) (TSXV:NAC) revealed an upgrade to their partnership in order to set the foundation for a future in which CannaRoyalty can offer its cannabis products in Canada.
Afzal Hasan, executive vice president for corporate development with CannaRoyalty, told INN said the company doesn’t expect this option to materialize anytime soon, but he outlined the ways in which CannaRoyalty could enter the Canadian retail market eventually.
Another cannabis operator with assets in the US began offering its stock to the Canadian market, by launching publicly on the Canadian Securities Exchange. Cannex Capital Holdings (CSE:CNNX) officially started trading on Wednesday (March 14). Anthony Dutton, CEO of Cannex Holdings said in the statement, the CSE listing will give Cannex an opportunity to “build a strong public shareholder base.”
Beacon Securities analyst Vahan Ajamian told Bloomberg Cannex has the “highest trailing revenue” of any US focused cannabis companies in the public market. He also revealed the company raised $48 million as part of a financing deal.
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Editorial Disclosure: The Green Organic Dutchman Holdings 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.