Business Archives - Green Market Report

Debra BorchardtDebra BorchardtMay 24, 2019
stocks.jpg

3min1370

SLANG

SLANG Worldwide Inc. (CSE:SLNG) elected to exercise its right under the warrant indenture governing the common share purchase warrants of the company issued on July 23, 2018, to accelerate the expiry date of the Warrants. Slang may accelerate the expiry date of the Warrants if, at any time prior to July 21, 2020, the closing trading price of the common shares of the company on the Canadian Securities Exchange exceeds $1.75 for a period of at least 20 consecutive trading days. As of the close of markets on May 23, 2019, the closing trading price of the Common Shares on the CSE exceeded $1.75 per Common Share for more than 20 consecutive trading days.

As of May 23, 2019, a total of 9,101,927 of the 13,436,005 originally issued Warrants had yet to be exercised. Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.15. Consequently, if all Warrants are exercised, proceeds to the Company will total $10,467,216.05.

Flowr

The Flowr Corporation (TSXV: FLWR) (OTC: FLWPF)  announced that the Nasdaq Stock Market has approved the Company’s application to have its common shares listed on the Nasdaq Capital Market. A trading date will be announced once the company’s Form 40-F registration statement becomes effective with the SEC. The common shares will be listed on the Nasdaq under the symbol “FLWR”. The Company’s common shares listed on the TSX Venture Exchange will continue to trade under the symbol FLWR.

Green Growth Brands

 Green Growth Brands, Inc. (CSE: GGB) (OTCQB: GGBXF) approved the grant of an aggregate of 595,000 restricted share units under the company’s equity incentive plan to certain of its employees. The RSUs will be granted to the RSU Recipients as compensation for their services to the company and as an incentive mechanism to foster the interest of such persons in the long-term success of the company.

True Leaf Brands

True Leaf Medicine International Ltd. (CSE: MJ) (OTCQX: TRLFF)  announced today that, effective immediately, the Company is officially changing its corporate name to True Leaf Brands Inc. 


Video StaffVideo StaffMay 24, 2019

2min2700

Organigram is the latest Canadian company to begin trading on the NASDAQ. Using the symbol, OGI the cannabis company said that investor demand pushed them to make the move.

Green Thumb Industries closed on a $105 million secured debt financing.

Gotham Green advanced an additional $80 million to MedMen as part of the previously announced convertible credit facility

It was a super busy week for acquisitions.

Canopy Growth finalized its acquisition of skin care company This Works in an all-cash deal valued at C$73 million.

MPX bought all the share of Swiss CBD company HolyWorld in a deal valued at C$13 million.

Australis Capital is acquiring Green Therapeutics in a deal valued at $8 million.

Northern Swan took a page from the Acreage playbook and named Former Majority Leader Tom Daschle and former Representative Joe Crowley to its board. Crowley lost his seat to Alexandria Ocasio-Cortez.

Horizons ETFs Management launched the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU”) and the BetaPro Marijuana Companies Inverse ETF (“HMJI”). The Units of the ETFs will begin trading on May 24, 2019, on the Toronto Stock Exchange.

TerrAscend generated revenue of $14.6 million in the fourth quarter of 2018 and the net loss for the quarter was $11 million.

It’s a three-day weekend. Markets will be closed for trading on Monday in honor of Memorial Day.

 


StaffStaffMay 24, 2019
shutterstock_750493204.jpg

10min1330

Although an unconvincing earnings season has clouded the picture, marijuana stocks still enjoy strong fundamental catalysts

By Josh Enomoto, InvestorPlace Contributor May 16, 2019, 1:00 pm EDT

Since their inception, marijuana stocks attracted significant attention. Due to both investment sentiment – and let’s face it, raw emotions – the cannabis sector absolutely skyrocketed. But now, the segment is attracting attention for failing to live up to analysts’ expectations. Is the honeymoon phase over for weed?

Hardly! While cannabis firms have produced some disappointing results during earnings season, that’s no reason to abandon them. For one thing, the resurgent U.S.-China trade war is incredibly favorable for marijuana stocks to buy. Prolonged tensions will almost surely cause us economic damage. An easy fix here is to legalize weed and fully open the door to a multi-billion dollar industry.

Another reason to stay the course with marijuana stocks to buy is the medicinal-cannabis market. Currently, 33 states have legalized medical marijuana, which is indirectly an indictment against the pharmaceutical industry. As I’ve argued many times before, pharmaceuticals must take at least some responsibility for the opioid crisis. This story alone has converted many people who have realized the benefits of all-natural treatments.

Moreover, medical marijuana is becoming a popular and potentially profitable exported good. We all know that progressive Europe is receptive to cannabis-based therapies. But more shocking is that conservative Asian countries notorious for their draconian anti-drug policies have demonstrated tolerance. Thailand became the first Southeast Asian country to legalize medical marijuana, while South Korea is the first East Asian country to jump onboard.

No matter how you look at it, this development strongly benefits the “botanical” industry. Here are the best three marijuana stocks to buy right now:

Aurora Cannabis (ACB)

Aurora Cannabis (NYSE:ACB) recently issued its earnings results for the first quarter of 2019. Let’s just say the print wasn’t exactly great for ACB stock. Although Aurora Cannabis’ net-revenue haul of 65.2 million CAD exceeded the year-ago quarter’s tally by a country mile, it missed analysts’ consensus target of 67.6 million CAD.

Also, a miss was earnings per share. Wall Street expected a loss of 4 cents per share, but Aurora instead delivered a loss of 16 cents. With such a wide gap, conventional wisdom dictates that you should avoid ACB stock.

Actually, though, even if Aurora Cannabis hit its metrics with flying colors, I wouldn’t pay much attention. Why? Because this is a marathon investment toward an unprecedented sector. As such, you’ll find nearer-term noise. Ignore it.

The key here is that the management is positioning itself for dominance in the lucrative medical-marijuana market. Its acquisition of Whistler Medical Marijuana indicates that the focus is on quality, not quantity. When weak marijuana stocks get flushed out, ACB will remain standing.

Canopy Growth (CGC)

Undeniably, a motivating factor to buy shares of Canopy Growth (NYSE:CGC) is the company’s international presence. Primarily, it puts up a strong showing in the European mainland. Currently, Canopy is pushing both westward and eastward in the region. However, the ultimate prize for CGC stock and others is the U.S. market.

Of course, this is seemingly a pipe dream due to our country’s (misguided) Schedule I classification of marijuana. Still, CGC stock jumped mid-April when Canopy announced a contingent offer to buy out Acreage Holdings (OTCMKTS:ACRGF). Canopy will pay $300 million upfront if the U.S. legalizes marijuana.

Many botanical advocates argue that Schedule I is a relic of the ignorant and racist past. However, it’s still federal law, which means cannabis firms in green-friendly states are still technically at risk.

But thanks to the U.S.-China trade war, I genuinely believe that full legalization is nearing reality. A prolonged conflict with the world’s second-biggest economy will invariably hurt our own fiscal health. That’s why the U.S. has to explore marijuana if they insist on playing hardball with China. If so, look for CGC stock to soar.

Hexo (HEXO)

If you’re like most folks who learned about marijuana stocks to buy late in the game, you’re probably hesitant on exposing yourself to the top-tier names. After all, we see them splattered on investment headlines all over the internet. If that’s you, you might want to check out Hexo (NYSE:HEXO).

For starters, Hexo is an understated name. It generates interest, of course, but not nearly as much as the top dogs. I believe that benefits HEXO stock and is partially the reason why shares have steadily made robust gains. Year-to-date, the cannabis firm’s equity is up over 113%.

That said, HEXO stock has much more upside remaining over the long term. Renowned alcoholic beverage-maker Molson Coors Brewing (NYSE:TAP) has a partnership with Hexo to develop cannabidiol (CBD) infused, non-alcoholic drinks.

CBD recently gained mainstream recognition because it offers the cannabis plant’s health benefits but without levering a negative psychoactive effect. In other words, the compound is a perfect gateway for consumers to try other cannabis-based products.

This is a partnership that provides multiple natural synergies. Even though it’s not quite a household name, you should put Hexo on your list of marijuana stocks to buy.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

 


Sean HockingSean HockingMay 24, 2019
shutterstock_526239820.jpg

21min300

AUTHOR:  “Jordan Zoot.  “aBIZinaBOX Inc., CPA’s
PUBLISHER:  CANNABIS LAW REPORT

 

CA Lobby Activity Background – we enjoy turning over rocks…we find poisonous snakes, scorpions, all kinds of vermin and lobbyists.

Our current fascination is with lobbyists, lobbying firms, trade associations, and consultants that are contracted by businesses to seeking to exert influence over elections, activity by California Legislature, activities bystate-level agencies in California the regulate and tax the legal cannabis industry [BCC, CDPH-MCSB, CFDA-CalCannabis, and CDTFA.]. [We will address the municipal and city level in a separate article.]

The California Fair Political Practices Commission [“FPPC”] has voiced concerns over the unregistered and unreported lobby activity on numerous occasions. We intend to dig into the publicly available information for the activity that impacts the California cannabis industry and shares what we find. In addition, we have put together a repository of tools for anyone that would like to investigate for themselves which can be found here. We believe that we need to provide some background information before we dive into the documents

The Political Reform Act[1] requires individuals, businesses and other organizations that make or receive payments to influence state governmental decisions – such as advocating for or against legislative bills and state agency regulations – to register as lobbyists and submit periodic reports of their lobbying activity. The Act does not regulate individuals or other entities that lobby the federal government, or city, county or other local government agencies. Let’s begin with some basic definitions that will dive deeper into as we proceed.

“A lobbyist is an individual who is compensated to communicate directly with any state, legislative or agency official to influence legislative or administrative action on behalf of his or her employer or client. An individual who receives reimbursement only for reasonable travel expenses is not a lobbyist.

A lobbying firm is a business that is compensated to communicate directly with any state, legislative or agency official to influence legislative or administrative action on behalf of a client.

lobbyist employer is an individual, business or other organization that employs a lobbyist or hires a lobbying firm.

lobbying coalition is a group of 10 or more individuals, businesses or other organizations that pool their funds for the purpose of hiring a lobbyist or lobbying firm.

$5,000 filer is an individual or entity that does not make payments to a lobbyist or a lobbying firm, but still spends $5,000 or more in a calendar quarter to influence legislative or administrative action, such as placing an advertisement or sending a mailing urging others to contact their legislators concerning pending legislation.

placement agent is any person hired, engaged, or retained by, or serving for the benefit of or on behalf of, an external manager, or on behalf of another placement agent, who acts or has acted for compensation as a finder, solicitor, marketer, consultant, broker, or other intermediary in connection with the offer or sale of the securities, assets, or services of an external manager to a board or an investment vehicle, either directly or indirectly.  Individuals who serve as placement agents before an entity such as CalPERS or CalSTRS must register as lobbyists and file disclosure reports.”

Our recent experiences have caused us to focus on the provisions which govern lobbyists[2] and lobbying activities in California. California requires an individual to register as lobbyist if he or she receives (or is entitled to receive) $2,000 or more in a calendar month (other than reimbursement for reasonable travel expenses) to communicate directly with any covered official for the purpose of influencing legislative or administrative action, and to prepare for those direct communications.

In practice, a contract lobbyist might engage in a range of activities, only some of which involve direct communication with officials. Prior to the new rule, the Fair Political Practices Committee [“FPPC “] had little recourse when individuals claimed that less than $2,000 of a monthly retainer was devoted to direct communications with officials to influence legislation, The practice has been referred to as “shadow lobbying” has been talked about for a number of years and we’ve got to start figuring out a way to address it, with the rest attributable to non-lobbying activities, such as strategic planning, grassroots campaigns, or public relations.

When an individual receives or is entitled to receive more than $2,000 a month for services that include direct communications with a public official to influence government action, the FPPC will presume that the entire payment was for direct communications with covered officials and therefore requires registration – unless the individual can produce evidence to support a different allocation. Such evidence may include testimony, records, bills, and receipts establishing that less than $2,000 of any monthly payment is allocable to lobbying activity.

As a result of the new lobbying rule, it is important that consultants and others who engage in direct communications with California officials, but who do not meet the $2,000 per month threshold for lobbying registration, maintain records that substantiate their decision not to register. The FPPC has effectively proposed a reverse-record keeping requirement – mandating that individuals who do not fall under the provisions of the Act maintain records to prove they do not meet the registration/reporting thresholds under the Act,” the California Political Attorneys Association wrote in a letter to the agency.

Anyone communicating with public officials should be keeping records anyway to determine whether they trigger lobbying registration requirements. The presumption is eliminated if they provide evidence showing the payment in question was not made for lobbying activities. The provisions are among a series of actions the commission has taken recently to increase lobbying transparency.

Once a contract lobbyist registers, his/her firm is also required to register, and the lobbyist, firm, and employer are required to file quarterly disclosure reports. Lobbyists, lobbying firms, and employers are also subject to strict gift rules and campaign contribution restrictions.

The FPPC has produced a number of materials and created several channels for individuals and business entities that might have need to seek advice on the application of these laws and regulations. They have created:

  • Publications – Numerous pamphlets, publications and guides that provide explanations and best practices.
  • Informal Advice – Informal advice can provide guidance if you have questions such as where to file campaign statements, filing schedules, or your basic responsibilities under the Act. Unlike formal advice, informal advice does not provide immunity from prosecutions by the FPPC and does notqualify as legal advice[3].
  • Formal Advice – If the request for advice contains sufficient information and the question is within the FPPC’s jurisdiction, the FPPC must provide formal written advice within 21 working days. The response will be provided in the form of an “advice letter.”

A formal advice letter can provide the requestor immunity from enforcement actions by the FPPC. It also provides evidence of good faith conduct in any relevant civil or criminal proceeding brought by another party, so long as the facts presented in the request for advice are accurate and the requestor follows the guidance provided in the FPPC’s advice letter. Formal advice does not provide immunity to any person other than the requestor.

The FPPC saves and posts all advice letters which you can click here to search. The letters may be searched and used for guidance only – they will not provide immunity to any person other than the original requestor[4].

  • Commission Opinions – Another form of formal advice is a Commission Opinion. Any individual or entity (or their authorized representative) may request a formal opinion from the Commission concerning their duties under the Act. The Commission’s Executive Director must accept or reject a request for a formal opinion within 14 days.

A request will normally be rejected if the question can be answered under existing statutes or regulations, or does not otherwise present a significant policy issue. In addition, since the process requires formal action by the full Commission, it normally takes several months after the question is submitted and accepted before a formal opinion may be issued. Due to the topic restrictions and the processing time, Commission Opinions are infrequent.

A Commission Opinion provides the requestor with immunity from civil or criminal prosecution under the Act so long as the facts presented by the requestor are accurate and the requestor acts within the confines of the opinion. More details about the formal opinion process can be found in sections 18320 through 18326 of Title 2 of the California Code of Regulations.

Application to the California Cannabis Industry [Next Installment]

  • Grower’s Associations
  • Government Relations Consultants
  • Attorneys, Certified Public Accountants [“CPA’s] and Other Licensed Professionals

[1] The Fair Political Practices Commission website provides links to a number of resources that are very helpful in understanding the process.

 

[2] § 18239. Definition of Lobbyist.

(1) If an individual engages in direct communication, other than administrative testimony, with a qualifying official for the purpose of influencing legislative or administrative action on behalf of any person other than his or her employer, apply Section 82039 and subdivision (b) of this regulation to determine if the individual is a lobbyist.

 

(2) If an individual engages in direct communication, other than administrative testimony, with a qualifying official for the purpose of influencing legislative or administrative action on behalf of his or her employer only, apply Section 82039 and subdivision (c) of this regulation to determine if the individual is a lobbyist.

 

(3) Except as provided in Section 86300, if an individual is a “placement agent” as defined in Section 82047.3, the individual is a lobbyist for purposes of the Act, regardless of the definitions in subdivisions (b) through (d), below.

 

An individual does not become a placement agent under Section 82047.3 solely as a result of communicating with a state public retirement system representative provided that the individual accompanies a registered placement agent who represents that individual or that individual’s organization, is present only to provide additional substantive information, and would not otherwise qualify as a placement agent under Section 82047.3

(b) A lobbyist is an individual who receives or becomes entitled to receive $2,000 or more in compensation in a calendar month for engaging in direct communication, other than administrative testimony, with one or more qualifying officials for the purpose of influencing legislative or administrative action.

(c) A lobbyist is an individual who spends one-third or more of the time, in a calendar month, for which the individual receives compensation from his or her employer, engaging in direct communication, other than administrative testimony, with one or more qualifying officials for the purpose of influencing legislative or administrative action.

(d) Definitions.

  • “Administrative testimony” means either of the following:
  • Influencing or attempting to influence administrative action by acting as counsel in, appearing as a witness in, or providing written submissions, including answers to inquiries, that become part of the record of any regulatory or administrative agency proceeding:

 

(i)That is conducted as an open public hearing for which public notice is given

(ii) Of which a record is created in a manner that makes possible the creation of a transcript; and

(iii) Where full public access is provided to the record or transcript and to all written material that is submitted as part of the record.

 

(B) Any communication made at a public hearing, public workshop, public forum, or included in the official record of any proceeding, as defined in Section 82002(b) or (c), before the California Public Utilities Commission.

 

(2) “Compensation” means any economic consideration, other than reimbursement for reasonable travel expenses (i.e., expenses for transportation plus a reasonable sum for food and lodging). Under subdivision (b), if it is established in an administrative or civil action that an individual received or is entitled to receive compensation of $2,000 or more in a calendar month 3 from a person for services that include direct communication, other than administrative testimony, with a qualifying official for the purpose of influencing legislative or administrative action, there is a rebuttable presumption affecting the burden of producing evidence that all compensation from that person to the individual during that calendar month is for direct communication. This presumption can be rebutted by evidence that may include testimony, records, bills, and receipts establishing the allocation of the individual’s compensation for all other goods and services provided.

 

(3) “Direct communication” means appearing as a witness before, talking to (either by telephone or in person), corresponding with, or answering inquiries from, any qualifying official, either personally or through an agent who acts under the individual’s direct supervision, control, or direction.

 

(A) Direct communication does not include any request for or provision of purely technical data or analysis to an administrative agency by a person who does not otherwise engage in direct communication for the purpose of influencing legislative or administrative action.

 

(B) For the purpose of determining whether an individual qualifies as a lobbyist pursuant to subdivision (c), an individual does not engage in “direct communication” when the individual is an employee of a lobbyist employer, meets or speaks with a qualifying official in the company of a registered lobbyist retained by the individual’s lobbyist employer, and participates as a subject matter expert regarding a legislative or administrative action at issue. For purposes of this exception, an employee includes a member of a bona fide trade association or membership organization.

 

(4) “Influencing legislative or administrative action” means communicating directly or taking any other action for the principal purpose of supporting, promoting, influencing, modifying, opposing, delaying, or advancing any legislative or administrative action.

 

(5) “Qualifying official” means:

  • Any elected state official;
  • Any legislative official;
  • Any appointed, elected, or statutory member or director of any state agency;

 

(D) Any staff member of any state agency who makes direct recommendations to the persons listed in subdivision (5)(C) of this subdivision, or who has decision-making authority concerning such recommendations.

[3] The information that must be provided when seeking “Informal Advice” includes:

  • State your name, telephone number, and position.
  • List the public official, agency, candidate or committee that is related to your question.
  • If asking a question on behalf of another, state the capacity in which you are authorized to represent the official, agency, committee or other organization (e.g., city attorney, candidate’s attorney, committee officer, campaign consultant).
  • Articulate your question with as much specificity as possible.
  • If you have a question about Form 700 disclosure, include your disclosure category.

 

[4] The request must:

  • Be in writing,
  • Provide specific information about the requestor, and
  • Contain sufficient information for the FPPC’s staff attorneys to conduct a complete legal analysis.
  • If a request does not meet these criteria, the FPPC may provide an informal written reply with general guidance. This type of advice does not provide the requestor with immunity from enforcement actions.

 


William SumnerWilliam SumnerMay 23, 2019
daily_hit004-1280x533.png

5min950

It’s time for your Daily Hit of cannabis financial news for May 23, 2019.

On the Site

Why Canopy Growth’s Deals May Not Translate Into Gains for CGC Stock

Canopy Growth (NYSE: CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS: CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS: ACRGF). Unfortunately, Canopy Growth stock seems to need more.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its financial results for the first quarter of 2019. Revenue was $14.6 milion, up from $5 million in the previous quarter. Adjusted EBITDA was $7.2 million, up from a loss of $7.1 million in the last quarter. “Our sales in Canada continue to be strong, driven by demand from provincial distributors and consumers,” said Michael Nashat, TerrAscend’s CEO. “We are building industry-leading cultivation and processing capabilities. Our Mississauga facility was recently GMP certified by the German authorities – the only such certification granted in the last year – and exports to the EU will commence this quarter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced that it has been advanced an additional $80 million in accordance with a $250 million secured convertible credit facility with Gotham Green Partners. The company has issued additional convertible senior secured notes to the lenders with a conversion per subordinate voting share of the company equal to $3.29 per share.

Tilray

Tilray, Inc. (NASDAQ: TLRY) announced that its wholly owned subsidiary Tilray Portugal Unipessoal Lda. (Tilray Portugal) has received manufacturing licensed and a Good Manufacturing Practices certification for its Biocant Park manufacturing facility in Cantanhede, Portugal. “This licensing and certification marks a critical milestone for our growth in Portugal and Europe,” said Sascha Mielcarek, Tilray Managing Director, 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.”

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) announced that it has closed a $105 million senior secured non-brokered private placement financing through the issuance of senior secured notes. The notes will mature on May 22, 2022 and will bear a annual interest rate of 12%, with an option for GTI to extend the date by an additional 12 months. “Strategic capital allocation is fundamental to the business and this financing strengthens our balance sheet at an attractive cost of capital for our business and shareholders,” said GTI Founder and CEO Ben Kovler. “We are well-positioned to capitalize on the attractive market opportunities in front of us. The proceeds will fuel our aggressive growth plans for faster route-to-market in key markets like New Jersey, as well as pursue expansion opportunities that broaden the reach of our brand portfolio.”

 


StaffStaffMay 23, 2019
Canopy4.png

8min570

CGC stock remains in a range as Canopy Growth solidifies its market leadership

By Will Healy, InvestorPlace Contributor

Canopy Growth (NYSE:CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS:CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS:ACRGF).

Unfortunately, Canopy Growth stock seems to need more. CGC has again sold off after briefly crossing the $50 per share mark in late April. While the deals with Canopy Rivers and Acreage boost the long-term prospects of Canopy Growth Corporation, they also show the difficulty of breaking CGC stock out of its current trading range.

Canopy Growth Continues to Improve Market Positioning

Canopy Rivers announced that the portfolio company it owns, PharmHouse Inc., will commit more of its production to Canopy Growth. CGC will now buy an additional 20% of PharmHouse’s output for the next three years. PharmHouse had previously committed 10% of its flowering space to Canopy Growth.

Still, despite what the PharmHouse deal means to Canopy Growth, much of the focus has settled on mergers and acquisitions (M&A). The latest M&A deal for Canopy involves a buyout of New York-based Acreage Holdings. However, in reality, one could better describe this “agreement” as an option. The deal will not close until recreational weed becomes legal across the U.S.

I agree with my InvestorPlace colleague Tom Taulli that the alliance with Constellation Brands (NYSE:STZ) alliance holds Canopy Growth in good stead. I also believe the company has positioned itself for a leadership position in the U.S. in both hemp and cannabidiol (CBD). This benefits the firm without regard to what happens with the Acreage deal. I also see Canopy Growth remaining the market leader in North America when U.S.-based companies can operate with full legal status.

Investors Should Separate Canopy Growth, CGC stock

Still, what helps Canopy Growth may or may not boost Canopy Growth stock. The current hype regarding marijuana stocks renders the price-to-sales (P/S) ratio of around 135X meaningless. However, it also leaves investors without a valuation-based metric with which to evaluate CGC stock.

Hence, this leaves investors with the charts as a guide. For all of the hype, Canopy Growth stock has twice pulled back after spiking above $55 per share in intraday trading. In recent weeks, even the Acreage deal could not keep CGC stock above $50 per share. Moreover, since Jan. 15, it has rarely moved below $40 per share or above $50 per share.

CGC Stock Has Become Range-Bound

Despite its elevated multiple, I do not think it will break through the lower end of the range unless a recession occurs, or the U.S. suddenly makes cannabis legal.

For now, traders have focused on when and how CGC stock will break through on the high end of the range. The elevated P/S ratio will struggle to go even higher without further stimulus. However, seeing the rally fizzle after the stock moved past $50 per share could make one wonder whether stimulus truly helps. Moreover, seeing marijuana stocks (including CGC) tank after weed became officially legal in Canada remains fresh on investor’s minds. It also shows the strange and powerful phenomenon of illegality driving cannabis equities.

Like most, I believe CGC stock will trade at higher levels years from now. However, until we see the stock stay above $55 per share, I do not think that the higher stock price will come in the near term.

Final Thoughts on CGC Stock

CGC stock trades near the high end of its range, and I expect CGC will stay in the range. The PharmHouse deal serves as yet another confirmation that the growth story remains intact for Canopy Growth. However, it will likely not have a material effect on Canopy Growth stock.

Moreover, before the company announced this deal, CGC had fallen back to levels it saw before they announced the Acreage Holdings deal. Simply put, CGC stock has become range-bound.

The prospects of the cannabis industry should keep Canopy Growth stock at an elevated multiple in the near term. However, even a major coup such as the Acreage deal has failed to put CGC stock back on a growth trajectory.

The Acreage and the PharmHouse deals show that Canopy Growth has both the strategic vision and the product needed to lead the marijuana industry. Unfortunately, translating this insight into near-term growth for Canopy Growth stock will prove more elusive.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.

 


William SumnerWilliam SumnerMay 22, 2019
daily_hit004-1280x533.png

5min870

It’s time for your Daily Hit of cannabis financial news for May 22, 2019.

On the Site

Green Market Report Stock Index Releases 2019 Q1 Summary Report

The Green Market Report (GMR), the cannabis industry’s most trusted source for credible in-depth financial and economic reporting, today released its 2019 Cannabis Company Index Q1 Summary Report. The report can be downloaded at GreenMarketReport.com/reports.

A Simple Guide To Making An Investment In Marijuana Stocks

As well as advances in the treatment of pain relief and other medical symptoms, and the cultural aspects which surround recreational use, there is now a growing investment industry around marijuana. In fact, investing in marijuana stocks represents a great opportunity for even the greenest (pun intended) investor. Here are all the things that potential investors need to know.

Organigram Holdings

Due to investor demand, Organigram Holdings Inc. CEO Greg Engel decided to move the company’s exchange listing to the NASDAQ Marketplace. It is one of the few Canadian cannabis companies that the NASDAQ has allowed to list for trading. Engle and CFO Paolo De Luca spoke with Green Market Report on the day the company joined the NASDAQ.

In Other News

Horizons ETFs

Horizons ETFs Management Inc. announced the launch of the BetaPro Marijuana Companies 2x Daily Bull ETF (HMJU) and the BetaPro Marijuana Companies Inverse ETF (HMJI). HMJU will provide leverage exposure to the North American MOC Marijuana Index, while HMJI will provide inverse exposure. “HMJU and HMJI will be the fourth and fifth ETFs we offer that provide exposure to Marijuana equities.” said Steve Hawkins, President and CEO at Horizons ETFs. “HMJU and HMJI are higher-risk ETFs that will give Canadian marijuana equity investors the opportunity to potentially generate returns in both positive and negative markets in the Marijuana sector.”

Canopy Growth

Canopy Growth Corp. (TSX: Weed) (NYSE: CGC) announced it has finalized its acquisition of This Works, a skincare and well-being company with a customer base in 35 countries, in an all-cash transaction for C$73.8 million. Post-acquisition, This Works CEO, Dr. Anna Persaud, will continue to run business operations for the company. “As a leading wellness brand and a pioneer in sleep beauty products, we are passionate about the opportunity CBD offers beauty consumers,” said Persaud. “Canopy Growth will provide the expertise, research, scientific rigour and quality assurance that will allow This Works to drive the agenda in wellness beauty’s ever-evolving market.”

MPX International

MPX International Corporation (CSE: MPXI) (OTC: MPXOF) announced that it has acquired all of the outstanding shares of the Swiss CBD brand HolyWorld SA for C$13.38 million. Under the agreement, MPXI issued HolyWorld shareholders   25,252,830 common shares of the company at a price of C$0.53 per share. Roughly 80% of the issued shares will be placed in voluntary escrow and will be released pending the fulfillment of certain conditions. If the terms are not met by June 30, 2021, the shares will be released to MPXI for cancelation.


StaffStaffMay 22, 2019
shutterstock_613981220.jpg

7min1430

This is a guest post by Katrina Hatchett.

The role of marijuana in society, and more lately in business, has never been simple, but in recent times this natural product has stepped more and more into the mainstream. Now, in the United States, more than half of the 50 states recognize marijuana for medical purposes, and there is a growing acceptance of its recreational use too (marijuana is now legal in 10 States, as well as DC). In Canada, marijuana has actually been legalized for recreational use as well as for medical purposes. In the rest of the world, there are countries which have legalized marijuana, decriminalized it, or have relaxed rules with regards to personal use and cultivation. Medical usage is now accepted in about a quarter of the world’s countries, with many more having legalization on the agenda.

What does that mean? As well as advances in the treatment of pain relief and other medical symptoms, and the cultural aspects which surround recreational use, there is now a growing investment industry around marijuana. In fact, investing in marijuana stocks represents a great opportunity for even the greenest (pun intended) investor. Here are all the things that potential investors need to know.

Not all stocks are the same, so choose one that suits your strategy

Every potential investor must, first of all, think about exactly what they want for their investment: this is true no matter you are looking to invest in. Are you looking for a quick pay-day, or are you more concerned with stable growth over a longer period? Investing in marijuana stocks offers all sorts of potential returns, so conduct immaculate research first.

The cannabis industry has grown to such an extent that it now includes a wide-ranging and eclectic assortment of businesses: from hospitals and pharmaceutical companies to concrete manufacturers, believe it or not. Many of these businesses are looking for investment capital, but as you can see they may all share a reliance on one particular product, but that is where the similarities end, so this is far from a catch-all topic.

Use an investment broker and a legal expert

The decision to go with a professional broker may depend entirely on the strategy you wish to employ, plus the size of the investment you want to make. If you are considering putting a major chunk of your capital into marijuana stocks, it is definitely worth getting professional advice, which may also include legal advice on the various regulations which exist. Remember that the US Federal Government still identifies marijuana as an illegal substance, so you need to understand very well what you can and cannot do.

Pay close attention to the market

This is a piece of advice that rings true once more for whatever you may be investing in, but with it being such a delicate subject, you really must keep your ear to the ground with regards legal updates and changes in regulations. Of course, it’s good news for investments if more countries decide to legalize cannabis for both medical and recreational purposes, so you will need to ascertain what the likelihood of that happening is in different territories.

Then there are huge market players who are looking at new ways to use cannabis. For example, drinks giant Coca Cola is examining ways to produce marijuana-infused drinks, so stock prices are sure to been affected by such a move.

“A great piece of advice is to look at the marijuana companies that major companies are investing in because that is usually a sign of a solid investment,” points our Eve Stoddart, a marketer at Write My X and NextCoursework.

Never forget the golden rule

No matter what you are investing in, the golden rule is always to diversify your portfolio. The oft-quoted golden rule is 10%: never have more than 10% of your capital invested in one stock. The same rule applies here.

“The danger with investing in marijuana stocks, a little like cryptocurrencies, is that investors will somehow treat it as ‘different’ due to all the noise that surrounds it. That is a mistake. Look at any investment with the same, objective eye as you would when entering any market,” urges Terry McNeil, a project manager at BritStudent and Australia2write.

Katrina Hatchett is a lifestyle blogger at Academic Brits with a particular interest in the art of communication: a field in which she has cooperated on many projects. She is a regular contributor at Origin Writings, as well as a blogger at PhDKingdom.

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 3 days

Our biggest fans this week: cluns4rd, CannabinoidLife. Thank you! via

@GreenMarketRpt – 3 days

My week on Twitter 🎉: 9 Mentions, 21.4K Mention Reach, 13 Likes, 4 Retweets, 10.4K Retweet Reach. See yours with…

@GreenMarketRpt – 4 days

Our biggest fans this week: WallandBroad, cluns4rd, CannabinoidLife. Thank you! via

Back to Top

You have Successfully Subscribed!