Cannabis Weekly Round-Up: Two Provinces Reveal Deals in Place for Recreational Market

INN rounds some of the biggest news in the cannabis market for the past trading week

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This past trading week (February 12-16) two Canadian provinces revealed the companies they plan to work with in terms of the supply and sale of recreational cannabis, once the drug becomes fully legal in the country. The launch of a new cannabis ETF and the details of expansions plans complete this Cannabis Weekly Round-Up.

The Investing News Network (INN) reported on the holdings that launched with the latest cannabis exchange-traded fund (ETF) to enter the market. During its first day of trading on Wednesday (February 14), the Horizons Emerging Marijuana Growers Index ETF (AQN:HMJR) was represented by Cann Group (ASX:CAN) and Auscann Group Holdings (ASX:AC8) and The Hydropothecary Company (TSXV:THCX) as its heaviest holdings.

Horizons indicated the inclusion of Australian cannabis companies will be allowed to represent approximately a 21 percent of the total holdings in the emerging index. This new ETF is available for investors on the Aequitas NEO Exchange.

INN had the opportunity to chat with Chris Wagner, CEO of Emerald Health Therapeutics (TSXV:EMH) on the framework for the legalization of cannabis in Canada and the development of their company in the industry at large.

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Two provinces award licenses and deals for cannabis adult-use in Canada

In regulatory news, this week two provinces announced the winners of coveted agreements to supply cannabis, once Canada fully legalizes the drug later this year. The province of Quebec revealed six firms that got an initial agreement with its alcohol agency on the various amounts of cannabis it will be allowed to send. Hydropothecary, a local Quebec producer, was awarded the highest amount of cannabis, with an initial deal for 20,000 kilograms of products in the first year of recreational sales.

On Friday (February 16) Manitoba also revealed the companies it planned to work alongside for their cannabis plans. Another local company, Delta 9 (TSXV:NINE), in partnership with Canopy Growth (TSX:WEED), was approved for its proposal to operate retail cannabis locations in the province.

The other groups awarded these deals were National Access Cannabis (TSXV:NAC), Tokyo Smoke, a subsidiary of Hiku Brands (CSE:HIKU), and an unnamed grouping compromised of Avana Canada, Fisher River Cree Nation, Chippewas of the Thames, MediPharm Labs and US-based retailer Native Roots Dispensary.

As an attempt to gain a “better understanding of cannabis use in Canada” the country’s statistics agency will conduct a national survey to track the impact of adult-use legalization.

Each quarter, a sample of 12,000 households will receive an invitation to complete the 21-question online survey,” Statistics Canada revealed as part of their new initiative. “In addition to frequency of use, amount and types of product consumed, and prices paid, Canadians will be asked about changes in their behavior or consumption patterns.”

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New greenhouse facilities plans revealed

After announcing its separation with Aphria (TSX: APH), Liberty Health Sciences (CSE:LHS; OTCQX:LHSIF) announced this week its new plan to construct state-of-the-art greenhouses and processing facilities in Florida. The company completed the purchase of a 387-acre parcel of land in Gainesville, Florida for the construction of their Liberty 360° Innovation Campus.

Liberty 360 will enable us to expand our production capabilities and provide a broader range of products and delivery methods to Florida’s patients in need,” George Scorsis, director, and CEO of Liberty said. “It will also serve as our center for new product innovation and development as we remain on the leading edge of the medical cannabis industry.”

Cannabis Wheaton Income (TSXV:CBW), a streaming deal cannabis company, announced on Friday a new operation alongside Peter Quiring, a greenhouse builder for the development of a new facility in Leamington, Ontario.

The partnership officially will be with newly formed subsidiary GreenhouseCo. Initial plans revealed by the company show 1.4 million square feet of greenhouse as its phase 1 operation. It was revealed GreenhouseCo will also pursue an ACMPR license for the cultivation and sale of cannabis.

“The Facility will be purpose-built with state-of-the-art automation and operate under a 100% closed-loop water recycling system,” Cannabis Wheaton revealed. Its president Hugo Alves said this project was exciting for Cannabis Wheaton because of its scale and technological sophistication.

During the past trading week, the Marijuana Life Sciences Index ETF (TSX:HMMJ) went down in value 3.36 percent. As of 1:00 EST on Friday, the ETF traded at $18.13. Since it’s inception the ETF has gone up in value 76.88 percent and so far this year index has decreased in value by 4.23 percent.

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

Editorial Disclosure: Hiku Brands Company 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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Comments
  • I own a large number shares in numerous pot stocks and the information you have concerning some of the ones i own is very informative

    Reply
  • Market Correction? It’s hard to figure out what’s really happening. Speculators with their expensive programs tell them exactly where all the new money is going. They put big buck to help drive up the market and just when the new investors are happy to see some gains then puff! It’s all gone… Stolen by rich speculators. Tell me I’m wrong.

    Reply

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