Category Archives: News

Hawthorne Gardening Company Announces the First DesignLights Consortium Listing for Gavita LED Lighting Fixtures

Hawthorne Gardening Company Announces the First DesignLights Consortium Listing for Gavita LED Lighting Fixtures

U.S. Rep. Ed Perlmutter and three other representatives who co-sponsored the Secure and Fair Enforcement (SAFE) Banking Act submitted a letter to Senate committee chairman Mike Crapo Jan. 21 to address his concerns about the legislation and to urge him to approve the bill.

In comments released Dec. 18, Crapo, chairman of the Senate Committee on Banking, Housing and Urban Affairs, recommended that lawmakers add public health and safety requirements to the bill, including a potential 2% THC limit on cannabis products and a requirement for companies to disclose product potency as a prerequisite to obtaining financial services from banks, according to The Denver Post.

Crapo also suggested including regulations in the legislation that would prevent “bad actors” from laundering money through banks, the news outlet reported.

The lead sponsors of the SAFE Banking Act, Reps. Steve Stivers (R-OH), Denny Heck (D-WA) and Warren Davidson (R-OH), have remained hesitant to expand the SAFE Banking Act, writing in their letter that, “The primary objective of our bill is to address public safety concerns resulting from marijuana-related transactions being forced outside the regulated banking system.”

The legislators expressed that they must be cautious about “adding limitations to the legislation’s safe harbor that impose unworkable burdens on financial institutions, or would jeopardize the larger, bipartisan effort to address public safety concerns associated with cash-only transactions,” and reiterated, “Our bill is about safety. It does not change the legal status of marijuana and is focused solely on taking cash off the streets and aligning federal banking laws with the decisions states are already making regarding cannabis.”

Sen. Cory Gardner (R-CO), a co-sponsor of the SAFE Banking Act in the Senate, has had several discussions with Crapo regarding the legislation, The Denver Post reported.

“It’s no secret that I, too, was opposed to marijuana legalization in Colorado,” Gardner said in a public statement. “But the people of Colorado chose to try a new approach to legal cannabis, and the sky is not falling. Seven years later, 95% of the United States’ population lives in a state with some form of legal cannabis. Every day that Congress continues to ignore reality, unintended negative consequences pile up for legitimate businesses—both in the cannabis industry and outside it.”

The House passed the SAFE Banking Act in September in a historic vote of 321-103. The bill would ultimately provide a safe harbor for financial institutions that work with cannabis clients, effectively opening the door to formal banking relationships in the industry.

Published at Thu, 23 Jan 2020 21:30:00 +0000

Searching for Big Money in the Cannabis Patch (TLRY, TMGI, ACB, CURLF)

Searching for Big Money in the Cannabis Patch (TLRY, TMGI, ACB, CURLF)

The cannabis bear has been roaring for a year now. But 2020 has sparked a sense of renewed hope for the patch, and we wanted to take a look at a few possible ideas for taking advantage, and pass our judgement on each in turn: Tilray Inc (NASDAQ:TLRY), Marquie Group Inc (OTCMKTS:TMGI), Aurora Cannabis Inc (NYSE:ACB), Curaleaf Holdings Inc (OTCMKTS:CURLF).

Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. That said, it has been trashed by the market since topping its squeeze in September 2018 near $300. The reason for all the pain is that the company is running out of money because of how expensive it is to service its debt.

That’s a deadly conundrum for a company in a commodity market – which is the best way to think about cannabis and cannabis-related markets.

The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada.

According to the company’s IPO announcement, “Tilray, Inc., a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, today announced the pricing of its initial public offering of 9,000,000 shares of Class 2 common stock. 6,524,000 shares of Class 2 common stock will be offered in the United States and certain other countries except Canada at a price to the public of US$17.00 per share for a total offering size of US$110,908,000 and 2,476,000 shares of Class 2 common stock, which we refer to as Subordinate Voting Shares, will be offered in Canada and certain other countries except the United States at a price to the public of CAD$22.451 per share for a total offering size of CAD$55,586,200. Based on current exchange rate1, the total combined offering size is approximately US$153,000,000.00.”

One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

In addition, High Park has developed new brands and products for the Canadian market. Upon the coming into force of federal legalization of cannabis for adult-use and corresponding provincial legislation, High Park anticipates fulfilling adult-use supply agreements and purchase orders in Quebec, Ontario, British Columbia, Manitoba, Nova Scotia, Prince Edward Island, Northwest Territories and Yukon on October 17, 2018.

Even in light of this news, TLRY hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -8%. 

Tilray Inc (NASDAQ:TLRY) pulled in sales of $51.1M in its last reported quarterly financials, representing top line growth of 408.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($122.4M against $130.2M, respectively). But the debt-servicing costs are the problem here, as is the company’s lack of competitive traction. Pass.

Marquie Group Inc (OTCMKTS:TMGI) is a clear emerging leadership play in the CBD space, so it deserves acknowledgement here in this group. 

The company just put out word that it is setting to launch its own branded line of premium CBD tinctures, which could be huge given that the company boasts undeniable expertise in attacking the market for women aged 35-49 – which also happens to be the biggest demographic component of the CBD products marketplace.

While the stock hasn’t yet started to gain traction with traders, the company boasts top talent in the health and beauty space coming together with the concept of the huge growth anticipated in CBD. Much of that promise springs from its leader, Jacquie Carter Angell, who has established an internationally recognized personal brand as a beauty expert, appearing in television, radio, magazine, newspaper and media events around the world. 

According to the company, during that time, she has partnered with celebrities, Olympic athletes, doctors, nutritionists and Nobel Prize laureates in brand-building and marketing health and beauty products to women in more than 90 countries. “The CBD market has grown exponentially, evolving from the virtually unknown, to a marketplace where consumer perception and expectations are on the rise. A lesser-known fact is that the largest consumer for CBD products is women between 35-49 years of age,” commented Jacquie Carter Angell, President of The Marquie Group. “We have predicated the majority of the packaging, branding, marketing, and digital identity around this fact in a manner that positions Whim with far less direct niche-level competition than other CBD product brands.”

Marquie Group Inc (OTCMKTS:TMGI) bills itself as company led by former Director of Worldwide Training and Education for Herbalife Nutrition, Jacquie Carter Angell. It is a direct-to-consumer health and beauty products platform with a pipeline of innovative solutions to pervasive wellness concerns: anxiety, anti-aging, low energy, sleeplessness, and stress that use advanced formulations of plant-based, amino-acids and CBD alternatives to chemical ingredients. 

All products will feature unique formulations of top-quality ingredients meant to impart skin health that comes from improved amino-acid balance and CBD nutrition.

The Marquie Group owns and operates two businesses: Music of Your Life, Inc, the nation’s longest-running, nationally syndicated music radio network broadcast nationwide and internationally to a worldwide audience on the Internet, and Global Nutrition Experience, Inc. (GNX), an intellectual property licensing and development corporation.

Products planned for a 2020 launch include facial skin care serums, a powerful amino acid infused collagen drink and custom blended CBD tinctures each with their own potent puree of nature’s finest fruits, flowers and herbs. Each one is uniquely developed to provide optimal sleep and relaxation, mental focus and clarity or beauty and antioxidant benefits via an array of plant- based ingredients formulated to enhance one’s Inner Health and Outer Beauty.

Aurora Cannabis Inc (NYSE:ACB) has shown us a line of evidence in its strategic moves over the past 24 months to clearly signal that it wants to be a major player in the CBD boom.

For example, in 2017, the company invested in Hempco, a Vancouver-based maker of hemp-based foods, hemp fiber, and hemp nutraceuticals. Hempco also supplied Aurora with raw hemp for extracting CBD. ACB bought the rest of Hempco three months later.

The company next acquired Agropro, Europe’s largest producer, processor, and supplier of certified organic hemp and hemp products. At the same time, Aurora acquired Agropro’s sister company Borela, which processes and distributes organic hulled hemp seeds, hemp seed protein, hemp flour, and hemp seed oil.

Just after that, in late 2018, Aurora acquired ICC Labs, which claims leadership in the South American hemp CBD market, with a large-scale extraction facility that can process 150,000 kg of CBD feed annually.

That’s three big M&A moves in the past 30 months with one clear goal: to capture major market share in the CBD space. And it spans three different continent. This is a company on a mission and investors who believe in the larger growth thesis should take note now.

Aurora Cannabis Inc (NYSE:ACB) managed to rope in revenues totaling $98.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 416.7%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($362M against $436.4M, respectively).

Curaleaf Holdings Inc (OTCMKTS:CURLF) is another primarily cannabis name to make clear moves toward the CBD space. This is likely to be linked with its existing distribution footprint, which keeps expanding by the month.

As a case in point, the company recently announced the opening of its 28th Florida dispensary at 1435 South Tamiami Trail in Sarasota. Curaleaf has the largest cannabis dispensary footprint in the US with 51 dispensaries across the country, and continues to execute on its strategy of rapid expansion in Florida.

“We are proud to deliver upon our commitment to expand our Florida footprint, providing patients with access to Curaleaf’s premium medical cannabis products and educational resources, and serving the Sarasota community 7 days a week,” said Pablo Arizmendi-Kalb, President of Curaleaf Florida.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. 

The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states. 

Curaleaf, Inc. operates 30 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy. 

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

Shares of the stock have powered higher over the past month, rallying roughly 23% in that time on strong overall action. 

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $81.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 192.3%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($120.8M against $98.5M).

Published at Thu, 23 Jan 2020 14:09:06 +0000

InMed First To Take Cannabinol To Clinical Trials

InMed First To Take Cannabinol To Clinical Trials

InMed Pharmaceuticals (CAN:IN / US:IMLFF) has become the first company to conduct human clinical trials involving the rare cannabinoid, cannabinol (CBN). InMed is using cannabinol as the active ingredient in two cannabis-based drug product candidates.

On January 20, 2020; InMed announced that INM-755 (for epidermolysis bullosa) and INM-088 (for glaucoma) both feature CBN as the active ingredient. CEO Eric Adams framed this for investors.
 

“We are proud to be the first company to investigate cannabinol’s therapeutic potential in human clinical trials. InMed has completed more than 30 preclinical pharmacology and toxicology studies, identifying potential therapeutic advantages of CBN in specific disease models over the more common cannabinoids THC and CBD, as well as other rare variants.

We are simultaneously exploring innovative biosynthetic manufacturing methods and therapeutic applications of CBN formulations to target diseases with high unmet medical need.”

The cannabis plant contains roughly 100 known cannabinoids. However, most of these cannabinoids are only found in trace amounts. This has made studying the therapeutic potential of these rare cannabinoids nearly impossible using conventional scientific means.

InMed has proprietary technology that allows the company to isolate and study these rare cannabinoids. It is also pioneering a means for synthesizing these rare cannabinoids so that they can become practical for commercial applications.

INM-755 is InMed’s lead dermatological product for the treatment of epidermolysis bullosa (EB). EB is a rare genetic skin disease that can lead to extensive wounds and blistering.

INM-755, a topical cream, is being tested to treat the inflammation and pain that accompanies EB. InMed also believes that INM-755 has the potential to “enhance skin integrity” for some EB patients.

Shares in InMed jumped ovber 50% on the news to CAD$0.375. The stock is currently trading at CAD$0.32.

With medicinal cannabis already being widely prescribed for the treatment of hundreds of medical conditions, The Seed Investor sees enormous potential for cannabis biopharma.

The global pharmaceutical industry represents roughly a $1 trillion per year revenue pie. But many of the drugs currently in commercial use carry high user risks of serious (sometimes life-threatening) side effects.

Cannabinoids are produced naturally in the human body. For this reason, cannabinoid-based drugs exhibit a remarkably benign safety/tolerance profile. This makes cannabinoid-based drugs eligible for fast-tracking through the clinical trials process.

As InMed (and other cannabis companies) advance cannabinoid-based drugs through the clinical trials process, cannabis investors will want to keep an eye out for opportunities on this front.

DISCLOSURE: The writer holds shares in InMed Pharmaceuticals.
 

Published at Wed, 22 Jan 2020 18:12:59 +0000

Weed and weight: Why are cannabis consumers slimmer?

Weed and weight: Why are cannabis consumers slimmer?

Whether for health or aesthetic reasons (or a bit of both), the desire to slim down feeds billions of dollars into the weight loss industry every year. And yet, as studies keep telling us, results are almost never permanent. It’s enough to make the diet-weary roll a fat one and forget it—which, coincidentally, may be an effective slimming strategy in itself.

Dr. Stephen Glazer, chief medical officer at CannaWay Clinic and bariatric expert, says while research is still in its infancy, studies suggest the endocannabinoid system “contributes significantly to both obesity and metabolic disorders.”

Simply put, the endocannabinoid system is a network of cellular receptors in the body that help keep our system in balance. It is the CB1 receptors within the endocannabinoid system that interact with THC, leaving us feeling euphoric (or “high”).

Glazer says these same CB1 receptors play a large role in energy uptake, storage, and conservation. When this receptor is activated by THC, either through ingestion or inhalation, it heightens our taste and smell pathways and activates our brain’s appetite centre, colloquially known as the “munchies”. This is why he says his patients at CannaWay receiving chemotherapy can benefit from medical cannabis to help them rebuild a healthy appetite.

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Published at Fri, 17 Jan 2020 19:59:17 +0000

Why Traditional Venture Capitalists Don’t Invest in Cannabis Companies – and Who Will

Why Traditional Venture Capitalists Don’t Invest in Cannabis Companies – and Who Will

eCann Media is proud to showcase our portfolio of investments and subsidiaries. We have completed numerous investments across multiple verticals and sectors in the cannabis industry. Requesting an invitation will enable the eCann team to consider your eligibility for investment as well help us to identify the opportunities that best fit your needs and investment objectives.

Published at Thu, 16 Jan 2020 17:00:00 +0000

Aleafia Health Inc (OTCMKTS:ALEAF) Provides Updates Regarding Stolen Recreational Cannabis Consignment

Aleafia Health Inc (OTCMKTS:ALEAF) Provides Updates Regarding Stolen Recreational Cannabis Consignment

Aleafia
Health Inc (OTCMKTS:ALEAF)
recently indicated that a shipment of its recreational
cannabis product had been stolen. It has now indicated that it has received an
update regarding the stolen product from the third-Party transportation
company.

Aleafia
Health’s cannabis product consignment stolen from the carrier

The shipment of finished cannabis products for the recreational market was not stolen from the company’s facilities, but it was rather stolen while on transit. The product was in possession of the shipping company, and it was to deliver the product to provincial wholesale distributors the following week. Its third-party shipping partner has indicated that the product was en route to distributors in provinces before the incident on December 20. The shipping company indicated that the vehicle carrying the cannabis product had presumably disappeared from the carrier’s facility.

The carrier has since recorded a
statement with the police, and it is cooperating with authorities in
investigations. Equally, they have notified Health Canada in line with the
company’s standard operating procedure as well as notified Aleafi’s insurance providers.
The cannabis company has, however, indicated that the value of the stolen
product was “not material.”

Currently, Aleafia is working to
fulfill outstanding purchase orders to its provincial distribution partners.
However, it is unclear who the company’s third-party shipping partner is at the
time. Speaking to The Deep Dive, 3 Sixty Secure Corp CEO Thomas Gerstenecker
stated that his company was not providing shipping services for Aleafia Health.

Aleafia
Health produces proprietary cannabis derivatives

Aleafia Health has three main
cannabis cultivation and production facilities, with two of them licensed and
operational. Its outdoor cultivation facility is the first large scale facility
in the history of Canadia. The cannabis health and wellness company is known to
produce a wide range of cannabis products, which include high-margin
derivatives such as capsules, oils, and sprays.

The company has a large network of
educational centers and medical marijuana clinics staffed by nurse
practitioners, educators, and MDs. The company has maintained a competitive
edge in the medical marijuana segment because of its innovative products.

Published at Thu, 09 Jan 2020 13:38:00 +0000

Platinum Confronts Counterfeit Products in Michigan, California

Platinum Confronts Counterfeit Products in Michigan, California

Two trends—legal cannabis markets expanding and millennials drinking less—are converging, with major implications for both the cannabis and alcoholic beverage industries, and perhaps society more generally, if cannabis gradually supplants alcohol as the intoxicant of choice.

For several years, millennials and Gen Z adults in the U.S., Canada and Europe have been moderating how much and how often they drink, which has driven alcohol beverage brands to reinvent their offerings Global beer brands including Peroni, Heineken, Guinness, Budweiser and, perhaps most remarkably, Leffe, brewed by Belgian monks since 1240 (but now owned by Anheuser-Busch InBev), have responded by introducing low- or zero-alcohol beers. Diageo, maker of Johnnie Walker, Crown Royal, Ketel One vodkas, Captain Morgan and other well-known spirits, recently acquired Seedlip, a line of non-alcoholic distilled spirits based on centuries-old recipes, for $300 million.

It is unclear how access to legal cannabis relates to declines in drinking by millennials, but there is evidence of a correlation. CDC data analyzed by the research firm Cowen showed binge drinking rates were 13 percent lower in states with legal cannabis compared to prohibition states, and that the rate of first-use of cannabis by adults increased as binge drinking declined. Based on that data, Cowen projected flat or slow growth for alcohol brands while increasing its projection of cannabis market size from $50 billion in 2026 to $75 billion in 2030.

It is worth noting cannabis-infused beverages are a relatively small slice of the $11.3 billion in U.S. cannabis sales in 2018. Fortune Business Insights estimated global sales of cannabis-infused beverages totaled $174 million in 2018. The continuing federal prohibition of cannabis has kept risk-averse global brands from investing in the U.S. market, which has left the market to regional brands such as Lagunitas’ cannabis-infused beverages in California.

The legalization of cannabis edibles in Canada, a nation that has long been home to some of the world’s largest and best-known brewers, drastically changed the prospects for infused beverages. Brewers that have already developed zero-alcohol alternatives to their traditional offerings are now preparing cannabis-infused versions of those products. Sales became legal in Canada in December and are expected to ramp up over the course of 2020.

The entrance of global beverage brands into cannabis, with their technical and marketing expertise and access to capital, may have far-reaching consequences. Developing a zero-alcohol, cannabis-infused beverage is not a simple project. Cannabis has a strong flavor that makes infusing wines, other than sangria and some sparkling wines, difficult. Beers, with their stronger flavors, mask the taste more easily. The established process for removing alcohol from beer, called “arrested fermentation,” adversely affects the taste and texture.

Beyond the aesthetic aspects of the beverage is the question of dosage and response. The functional characteristics of consuming cannabis through digestion pose other significant challenges. Inhalation of cannabis smoke causes rapid intoxication that “peaks” relatively soon and, assuming no more consumption, recedes at a predictable rate, which is similar in cadence to drinking alcohol. However, when cannabis is digested, the intoxicating effects do not begin for an hour or more. This creates the risk of people unsuspectingly consuming excessively because they enjoy the taste and feel no effects. Beverage brands have solved this “onset” problem. The cannabis beers coming to the Canadian market are infused with precise amounts of distilled THC that takes effect, peaks and recedes at the approximate rate and pace of alcohol.

Rising sales of zero-alcohol adult beverages indicate adults who want to drink less still enjoy “getting together for drinks.” Infusing these same zero-alcohol products with THC opens an enticing new entry to cannabis for potential users seeking an alternative to alcohol that, unlike smoking or vaping, is familiar. This may have a positive effect on new customer retention, if the first-time THC consumer can simply purchase cannabis-infused versions of products they already enjoy. The customer can replace alcohol with THC without replacing drinking with smoking or vaping.

It is uncertain how, when or even if the major Canadian brands will attempt to market their THC-infused beers in U.S. states where they are legal. Cannabis (other than industrial hemp) remains a Schedule 1 drug in the U.S., so infused beers cannot be exported into the U.S. or shipped between U.S. states if they are brewed here. Brands may choose to bide their time until U.S. law changes. Nonetheless, the next wave of THC-infused beverages creates the exciting prospect of alcohol with its long list of negative health and social consequences gradually being supplanted by cannabis.

Hershel Gerson is the CEO of ELLO.

Published at Wed, 15 Jan 2020 21:51:00 +0000

The 9 Best Weed Strains For Anxiety

The 9 Best Weed Strains For Anxiety

eCann Media is proud to showcase our portfolio of investments and subsidiaries. We have completed numerous investments across multiple verticals and sectors in the cannabis industry. Requesting an invitation will enable the eCann team to consider your eligibility for investment as well help us to identify the opportunities that best fit your needs and investment objectives.

Published at Tue, 14 Jan 2020 13:00:00 +0000

The Cannabis Investors Shopping List (GTBIF, ERBB, TCNNF)

The Cannabis Investors Shopping List (GTBIF, ERBB, TCNNF)

There isn’t a whole lot you can absolutely count on in life and markets, but some things are pretty dependable. Growth is in that group of dependable ideas, and so it volatility. When the two come together, something magical happens: Opportunity.

In this case, the monstrous growth that lies ahead for the cannabis space is extremely well founded. We know that legalization is spawning a boom. It’s practically physics. Something small is becoming something big. The transition between the two states is what we call: Growth.

But markets aren’t about you versus a static game. It’s about you versus everyone else. Over the short term, investable assets – even very sound and powerful ones – will experience big dips because everyone got involved at the same time, and then folks got nervous.

That’s where we are right now in the evolution of the cannabis bet: folks got ahead of themselves. And the action over the past 6 months is their reward. It hasn’t been pretty. But you have the chance now to pick up these assets on the cheap. That calls for a shopping list.

Here are out favorite three cannabis-related stocks for the near and intermediate-term future: Trulieve Cannabis Corp (OTCMKTS:TCNNF), American Green Inc. (OTCMKTS:ERBB), and Green Thumb Industries Inc (OTCMKTS:GTBIF).

Trulieve Cannabis Corp (OTCMKTS:TCNNF) has been rapidly expanding in the sunshine state, and the stock continues to broadly outperform the broader cannabis space on a large time frame. The company just announced that it opened the doors of its latest Florida dispensary on Friday, January 10th.

According to the release, “the Fort Walton Beach location will be the company’s 43rd in Florida and their 45th nationwide. The Northwest Florida location joins Trulieve’s 42 other dispensaries statewide, including in the nearby communities of Pensacola, Destin, and Panama City. Located on Mary Esther Cut Off, the storefront is part of the company’s mission to expand and ensure safe, reliable patient access statewide.”

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges. 

The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

Even in light of this news, TCNNF has had a rough past week of trading action, with shares sinking something like -12% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -19%. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 81% above the average volume levels in play in this stock over the longer term. 

“Trulieve is focused on creating a strong customer-centric experience, and that starts with ensuring that patients across Florida have access to the medications they’ve come to rely on,” said Trulieve CEO Kim Rivers. “Expanding our reach inside the Florida Panhandle is just one of the ways we’re doing that. Our well-trained staff is ready and willing to assist patients during every step of the process, from exploring medical cannabis for the first time to transitioning into a new treatment process.”

Currently trading at a market capitalization of $368M, TCNNF has a significant war chest ($41.1M) of cash on the books, which must be weighed relative to about $64.9M in total current liabilities. TCNNF is pulling in trailing 12-month revenues of $277.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 152.3%.

American Green Inc. (OTCMKTS:ERBB) is especially interesting in this list because the stock is the most undervalued name we could find given the company’s currently run of robust 7-figure sales and better than 450% top-line growth over the past year.

The company is diversified, with strong interests in grow management and consulting, dispensary technology, and CBD products, making it an interesting speculative name with a wide spectrum of possible upcoming catalysts in play.

American Green Inc. (OTCMKTS:ERBB) is second oldest publicly-traded cannabis company in America, with over 50,000 certified shareholders. 

The Company is focused on leading-edge cannabis industry solutions as seen from a “50,000 foot view.” American Green has participated in nearly all facets of the cannabis market and its current initiatives include (but are not limited to) the transformation of nearly-abandoned towns into “cannabis-friendly” destinations, a state-of-the-art cultivation facility in Arizona (Q4/17), promotion of medical-focused CBD (Cannabidiol) products from both whole plant and organic hemp sources, a smart automated vending solution system called AGM designed specifically to electronically identify, in advance of a sale, individuals wishing to purchase controlled products that include cannabis, CBD, pharmaceuticals, and alcoholic beverages in casinos and sports stadiums. 

In addition, American Green sees the continuing legalization of cannabis running in parallel to the gold rush in America in the mid-1800’s. 

American Green has purchased the town of Nipton, California which it intends to develop into energy-independent, cannabis-friendly hospitality and employment zones. AG Managed Services provides consulting and capital resources for existing and new-build industry operations such as its joint venture relationship it enjoys with Hempful Farms.

Moreover, in 2009, American Green, Inc. became one of the first publicly-traded technology companies in the cannabis industry. Now, with over 60,000 individual certified shareholders, more than any other company in the cannabis sector, American Green’s mission is to lead the cannabis and premium CBD industry. 

Leveraging its team of professionals in cultivation management, manufacturing, extraction, wholesale, retail, and community outreach, the company strives to develop sustainable initiatives in the cannabis-adjacent and CBD industries.

American Green Inc (OTCMKTS:ERBB) managed to rope in revenues totaling $440K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 480.7%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($7K against $14.8M, respectively).

Green Thumb Industries Inc (OTCMKTS:GTBIF) just announced that it opened its 40th store, Rise Joliet, the first adult-use only store in Illinois. “January 1 was a historic day in Illinois as adult-use cannabis sales launched in Illinois, and we’re honored that Rise Joliet is part of that history,” said GTI Founder and Chief Executive Officer Ben Kovler. “Our stores that sell to all adults 21+ – Rise Mundelein, Rise Canton, Rise Joliet and 3C Joliet – have served thousands of people so far and the energy and enthusiasm from new customers has been overwhelming.”

According to the release, GTI has six open stores in the state including The Clinic Effingham and 3C Naperville, which will currently only offer sales to customers with a valid Illinois medical marijuana card. The Clinic Effingham is expected to begin adult-use sales later in January pending a special use permit hearing. Naperville will hold a non-binding voter referendum on adult-use sales in March, and until then the store will only be open to registered medical patients. Rise Quincy will be an adult-use store and is expected to open within several days pending final actions by the state.

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

The company markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.

Traders will note 14% tacked on to share pricing for the listing in the past month. Moreover, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 22% over what the stock has registered over the longer term. 

“We thank everyone who celebrated this milestone with us,” said Kovler. “2020 is going to be another big year and we look forward to serving guests at our stores and enabling well-being through cannabis with our branded products such as Dogwalkers, incredibles, Rythm and The Feel Collection available at stores throughout the state.”

Currently trading at a market capitalization of $1.2B, GTBIF has a significant war chest ($87.5M) of cash on the books, which is balanced by about $139.8M in total current liabilities. One should also note that debt has been growing over recent quarters. GTBIF is pulling in trailing 12-month revenues of $214.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 300.1%.

Published at Tue, 14 Jan 2020 12:52:03 +0000

The Best Value in Canadian Cannabis Retail Today?

The Best Value in Canadian Cannabis Retail Today?

Momentum is building for Canadian cannabis retailers, as the Canadian cannabis market (belatedly) gains momentum in Year 2 of cannabis legalization.

It was the lack of cannabis retail stores that caused cannabis sales to disappoint in Year 1 of full cannabis legalization in Canada. In 2020, it’s the growth in the number of these stores that is powering a turnaround for Canadian cannabis retailers.

Former leader in numbers of cannabis stores, Meta Growth (CAN:META / US:NACNF) has already doubled off its November low, from CAD$0.155 to $0.305. New leader in Canadian stores, Fire & Flower (CAN:FAF / US:FFLWF) is up 37% from its November low – sitting at CAD$1.02.

The Seed Investor has already been banging the drum for these companies going back to the summer of 2019. However, another one of Canada’s leading cannabis retailers, Choom Holdings (CAN:CHOO / US:CHOOF) has also started to move.


[chart courtesy of Stockcharts.com]

Currently sitting at CAD$0.20, Choom is also more than 40% above its November low of $0.14. But it’s still several multiples away from its 2019 high of CAD$0.88. In contrast, Fire & Flower is trading at more than half of its 2019 high.

Why look at Choom?

Like META and FAF, Choom has a strong presence in Alberta, which continues to set the pace in Canada for licensing stores.
Choom already has a foothold in the key Ontario cannabis market with its Niagara Falls cannabis store.

Anecdotally, Cannabis 2.0 products have been flying off the shelves in Ontario. With product lines still just starting to expand, retailers are struggling to meet demand.

More recently, Choom has been targeting British Columbia. Canada’s 3rd largest province was also a significant underperformer in 2019. Per capita cannabis sales were just as low as Ontario – Canada’s biggest disappointment in Year 1.

Now B.C. is opening up its cannabis market and Choom is already building a strong footprint. The Company has three locations currently under development in the significantly under-served Vancouver cannabis market.

How important is Cannabis 2.0 in this equation? Very.
 

  1. Three million new Canadian consumers (roughly a 50% increase).
  2. Higher margin products with stronger revenue growth (based on U.S. numbers)
  3. Much stronger demand from female cannabis consumers

Multiply strong growth in licensed cannabis stores by strong growth in Canadian cannabis consumers and the product is massive overall growth potential.

These cannabis derivative products – primarily concentrates and edibles – generally offer stronger retail margins. This means that cannabis retailers should be able to preserve their own margins even as a rising store count increases competition.

In the U.S., these concentrates and edibles have led sales growth in cannabis-legal states.
 

  • 20% for dried flower
  • 33% for cannabis edibles
  • 41% for cannabis concentrates (including vapes)

[Source: Arcview/BDS Analytics]

There is no reason that consumer patterns in Canada should differ much from this profile.

Then there is the market for female cannabis consumers. Sales of cannabis dried flower are dominated by Canadian males (according to Statistics Canada).
 

Males (21%) were almost twice as likely to have used cannabis in the first half of 2019 as females (12%). This held true for every age group except seniors aged 65 and older.

Almost three in five females reported never having consumed cannabis (59%), compared with just over half (51%) of males.

Conversely, female consumers gravitate much more strongly to the derivative cannabis products now coming to market in Cannabis 2.0.
 

…females (23%) were almost twice as likely as males (12%) to report using only products other than dried cannabis.

This fully engages all Canadian consumers in the legal cannabis market. The final driver for sales growth in legal cannabis is rising usage rates.

Alberta opened up over 300 cannabis stores in the first year of full legalization. This broad access to legal cannabis caused cannabis use to increase in Alberta by 25%, from 16% to 20% of the population.

As the rest of Canada starts to catch up to Alberta, increased access should also have a positive influence on overall cannabis usage.

Choom is well positioned to capitalize on these trends.

Bolstering the Company’s growth trajectory is strong leadership. New CEO Corey Gillon boasts broad experience – and deep connections – in the retail industry. This comes via his previous senior management roles with both Walmart and Aritzia.

As Canada’s retail market for cannabis matures in 2020, investors should expect Gillon’s retail depth to increasingly come into play.

The Seed Investor sees last year’s collapse in Canadian cannabis company valuations as this year’s opportunity. Along with Canadian cannabis extraction specialists, we see Canadian cannabis retailers leading this rebound.

As investors look for the best opportunities here today, Choom Holdings is presenting investors with a strong value proposition.

DISCLOSURE: Choom Holdings is a client of The Seed Investor. The writer holds shares in Choom Holdings and Meta Growth.
 

Published at Wed, 15 Jan 2020 02:07:33 +0000