Alaska Archives - Green Market Report

Debra BorchardtDebra BorchardtJune 13, 2018

5min2640

It’s time for your Daily Hit of cannabis financial news for June 13, 2018.

On The Site

Green Thumb Industries

Chicago-based cannabis company Green Thumb Industries (GTI) will begin trading on June 13 under the ticker symbol “GTII” on the Canadian Securities Exchange. GTI’s owner VCP23 LLC did a reverse take over (RTO) of Bayswater Uranium Corporation raising C$87 million or $67 million through a private placement.

VCP reported revenue in its filing for the three months ending March 31, 2018, as $10.9 million with a gross profit of $4.8 million and a net loss of $1.5 million. VCP also reported that its total revenue for the year ending December 31, 2017, was $16.5 million with a net loss of $4 million.

Lab Testing

new report from the Alaska Alcohol and Marijuana Control Office and the Department of Environmental Conservation found that labs testing marijuana for potency were delivering very different results.

Different labs using similar methodology should have reported similar results, instead, the results came back and they weren’t even close. For example, the test took a marijuana muffin, cookie crumbs, capsules and dried flower and brought them to the only two testing labs in the state. The results delivered a large margin of error between the two.

In Other News

Farm Bill Passes

The Farm Bill passed with the attached hemp legalization language. According to CNBC, The Senate Agriculture Committee passed the 2018 farm bill in a 20-1 vote despite an attempt to tighten farmer subsidies. Sen. Chuck Grassley, R-Iowa, cast the sole “no” vote, because his amendment to limit subsidy payments wasn’t added to the proposed bill. The farm bill includes hemp legalization legislation that is backed by Senate Majority Leader Mitch McConnell, R-Ky. McConnell made a case during Wednesday’s agriculture panel meeting for supporting the hemp legalization.

22nd Century Group Inc.

22nd Century Group, Inc. (NYSE: XXII) announced that it the Company will be added to the Russell 2000Russell 3000, and Russell Global Indexes when FTSE Russell (Russell) reconstitutes its U.S. and global equity indexes on June 22, 2018. Russell’s preliminary announcement of its annual reconstitution of these Indexes, which includes 22nd Century Group, was posted on the Russell website on Friday, June 8, 2018, after the U.S. stock market closed.

Aurora Cannabis Inc.

Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF) announced that it intends to complete a $7 million investment in Choom Holdings Inc.  (CSE:CHOO) (OTCQB: CHOOF), whereby Aurora will receive 9,859,155 common shares from Choom’s treasury, priced at $0.71 per share (the “Transaction”), representing an 8% ownership interest. Choom currently operates two late-stage applicants under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). Choom has agreements in place to acquire two additional late-stage applicant craft growers in BC and Saskatchewan, including a facility in Sooke, British Columbia, anticipated to receive its cultivation license from Health Canada in the third quarter of 2018.

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TGOD.TO) (TGODF) announced that, effective June 13th, the company has secured DTC Eligibility. The Green Organic Dutchman also wishes to announce that it will begin trading on the OTCQX Best Market June 14th under the symbol “TGODF.”


Debra BorchardtDebra BorchardtJune 13, 2018
lab3.jpg

5min3750

A new report from the Alaska Alcohol and Marijuana Control Office and the Department of Environmental Conservation found that labs testing marijuana for potency were delivering very different results.

Different labs using similar methodology should have reported similar results, instead, the results came back and they weren’t even close. For example, the test took a marijuana muffin, cookie crumbs, capsules and dried flower and brought them to the only two testing labs in the state. The results delivered a large margin of error between the two.

The report said “Each of two muffins in three different retail packages were cut in half and submitted as separate samples. One half of each muffin went to CannTest and the other half of each muffin went to Steep Hill for testing and reporting.” The report said that CannTest said it had a strength of 5.2, while the Steep Hill lab said the strength was 11.9. The state apparently can’t even determine which lab is correct and which isn’t.

“We need some type of standardization for the labs,” said Jeff Doughty, CEO of Capital Analysis a company focused on testing in the recreational cannabis market. “Competency isn’t the issue. Plus, we already have accreditation processes. However, there could be improvements in proficiency testing.”

The Dark Side Of Testing

In addition to inaccuracies among labs, Doughty said that another issue is brewing and that is that some companies are actually paying for potency. He called it the dark side of cannabis. He said that cannabis companies are not accounting for test failures in their business models. A rigorous lab may find all kinds of things wrong with a company’s harvest causing the company to have to destroy expensive inventory. The word gets out and then cannabis companies quit going to the “tough” lab, which causes the lab to rethink how its testing cannabis in order to survive.

“Just because they’re scientists doesn’t mean they won’t do this,” said Doughty. “Producers are also learning to take their samples to various labs to get the best results.” As in the example of the testing in Alaska, a producer may choose to stick with the lab where it gets the results it wants.

Doughty is concerned that this is going to create a race to the bottom for labs. “I could see where big players, the kind of size where one customer alone can support an entire lab will get great numbers. Then the smaller competitor that only brings the lab a little business might end up with deflated numbers.”

One way labs have tried to self-correct is that they redefine what is considered a test fail. They still complete the test, but fewer customers are called out for failing

“It’s not an insurmountable problem,” said Doughty. “We just need to use intelligent processes when crafting our regulations.”

Recommendations

The Alaska report recommended 1) a complete assessment of lab operations as a follow-up to that of A2LA. Essential items to cover in this assessment are verifying the implementation of critical parameters (e.g. incubation temperatures and times, calibrations of support equipment), procedures (e.g. laboratory homogenization and sub-sampling protocols), and general adherence to the laboratory SOPs) 2)
accuracy controls (including all applicable positive controls for microbial testing and frequency) must be incorporated into lab activities, and 3) a regulation update that incorporates the framework for regular oversight of the laboratories.



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 – 1 day

Paragon Coin Settles With The SEC For ICO Violations, Must Pay Back Investors ⁦@ParagonCoin⁩ ⁦…

@GreenMarketRpt – 2 days

$ACRG Acreage Holdings Begins Trading On CSE

@GreenMarketRpt – 3 days

AxisWire Hosts First Annual STAR Media Awards

Back to Top

You have Successfully Subscribed!