3 Key South American Cannabis Markets Investors Need To Be Watching

3 Key South American Cannabis Markets Investors Need To Be Watching

The cannabis sector has recorded significant advancements during the last year, as new markets have opened up and this is a trend that our readers need to be aware of.

New markets create additional opportunities for all types of companies, and we have been working to identify the businesses that will benefit the most from the cannabis legalization trend. South America has been a hotbed of activity for the legal cannabis industry and we are favorable on the economics associated with the production of cannabis in this region.

Although Colombia represents a premier destination for cannabis companies that are focused on the opportunity in Latin America, we have also been keeping an eye on other markets in the region and believe that some of these opportunities are flying under the radar. Today, we have highlighted 3 companies that are levered to different regions that are associated with the Latin American cannabis market and believe that these are opportunities to be following.

Uruguay has Not Lived up to Expectations so Far

Although Canada is often credited for being the catalyst behind the legal recreational cannabis movement, it was not the first country to legalize it at the federal level. Uruguay was the first country to legalize recreational cannabis and this is a market that does not get the attention that it deserves.

During the last year, we noticed a substantial increase in interest in the Latin American cannabis movement. When it comes to the opportunity in Uruguay, there has not been too much action and this is a trend that surprises us. In late 2018, Aurora Cannabis (ACB.TO) (ACB) made a major splash in Uruguay when it acquired ICC Labs.

The acquisition of ICC was supposed to establish Aurora Cannabis as a leading operator in Latin American, a region with more than 650 million people. ICC, based in Uruguay, has developed a strong portfolio of low-cost production assets, product offerings, and commercial agreements. ICC’s science and its GMP compliant processing facility is expected to play an important role in the export opportunity for Aurora Cannabis and we will monitor how the asset is able to generate value in 2020 and beyond.

In late 2019, Aurora Cannabis issued an operational update that highlighted ICC. According to the update, ICC was preparing for the 2019 hemp season and is expecting to yield more than 100,000 kilograms of raw material upon harvest in April. The hemp biomass will be processed at the company’s GMP compliant extraction facility and we will monitor how the team is able to execute on this opportunity.

Aurora Cannabis considered ICC to be the jewel of Latin America and expected the acquisition to immediately prove to be accretive. Although we are impressed with how the ICC story has evolved since inception, the asset has not been able to live up to expectations so far.

When it comes to the international cannabis opportunity, Aurora Cannabis has been a leader and has amassed an impressive portfolio of assets. If the company is able to fund these growth initiatives, we expect Aurora Cannabis to be one of the greatest beneficiaries of the legal cannabis movement. Currently, the market does not believe that the company will be able to fund all of these growth projects and we will keep an eye on how the ICC asset plays into the mix.

Argentina is a Cannabis Market that is Flying Under the Radar

Argentina is a market that does not get the attention that it deserves and we have been highly focused on the emerging cannabis market. During the last few years, we have seen an increase in activity in Argentina and believe that it is a much less saturated cannabis market when compared to Colombia.

Blueberries Medical Corp. (BBM.CN) (BBRRF) has been highly focused on the Latin America cannabis opportunity and the business has attractive leverage to the Argentinian market. Initially, the company was only focused on the Colombian market and we are favorable on how the story has evolved since then.

Last year, Blueberries Medical finalized a definitive share purchase agreement to acquire cannabis cultivation, processing, manufacturing and other rights in Argentina from BBV Labs. Pursuant to a definitive joint venture agreement with the Argentinean state-owned company Cannabis Avatara, BBV Labs entered into a joint venture with Cannava to develop and cultivate cannabis on a 3.2 million sq. ft. property.

The signing of a definitive agreement represents a major milestone for Blueberries Medical as it gains rights to one of the limited cannabis licenses in Argentina and further expands its production footprint. Going forward, Blueberries Medical will construct a large-scale modern cultivation facility and processing center of excellence in Argentina, while Cannava will contribute the necessary licenses and permits to import seeds, cultivate cannabis, process and extract cannabis oil, export cannabis and derivative products, as well as import/export equipment and products.

The first phase of the joint venture will be a pilot cultivation program that consists of the preparation and cultivation of cannabis on a 107,000 sq. ft. area, with the goal of producing 4,000 kilograms of dry cannabis flower. The company has prepared a proposed pilot project plan to be approved by Cannava and hopes to complete the pilot program by May 2020. This represents a significant opportunity for Blueberries Medical and we expect to see a much larger land package allocated to the company if the pilot program proves to be a success.

We are favorable on the skills that each company brings to the relationship and will monitor how the teams are able to execute on this opportunity. Argentina represents an emerging cannabis industry that is barely in the first innings of a multi-decade growth cycle. We believe that Blueberries Medical is an opportunity that is flying under the radar and expect 2020 to be a banner year for the business.

Capitalizing on the Colombian Cannabis Market

We have highlighted Colombia as a premier destination for businesses that are looking to capitalize on the Latin American cannabis market. During the last year, we noticed a significant increase in interest as it relates to the Colombian market and are impressed with how the industry has evolved in such a short period of time.

When it comes to the Colombian cannabis market, selectivity is key and we are focused on identifying leading operators in the region. Chemesis International Inc. (CSI.CN) (CADMF) caught our attention in 2019 when it acquired La Finca Interacviva-Arachna Med and this is an opportunity that our readers should be aware of.

In late 2019, Chemesis issued an update on La Finca and stated that it is on track to complete its Agronomic Evaluation Programs in the first quarter of 2020. This represents an important milestone for the business as it works to register its own genetics as Intellectual Property (IP). By leveraging the genetics, La Finca believes it will be able to build a stable and consistent revenue stream as a global seed supplier. We are favorable on the amount of value that can be created if La Finca is able to create this platform and we are bullish on this aspect of the story.

La Finca has been focused on increasing the size of its land package and continues to work with the Ministry of Agriculture and local farmers to do so through its previously announced non-profit organization, the Association for the Promotion of Cannabis Cultivation. The association works with local indigenous farming communities and we are favorable on the strategy to increase its production footprint.

Another exciting aspect of the La Finca story is related to the work it is doing to build its seed stock through cultivation. As a result of this, the company expects to have larger harvests in early calendar 2020 and we find this to be significant. La Finca expects to harvest over 5,000 kilograms of biomass in the first quarter of 2020 and we are favorable on the amount of revenue that can be generated through this asset.

We believe that La Finca has made incredible progress in a very short period of time. When compared to other Colombian cannabis operations, the company has been nothing short of an execution story as it works to increase its land package and complete the Agronomic Evaluations. Chemesis believes that La Finca could be a leader in cannabis cultivation, manufacturing and retail in Colombia and we are favorable on this aspect of the business.

Pursuant to an agreement between StoneBridge Partners LLC and Chemesis International we have been hired for a period of 365 days beginning July 15, 2018 and ending July 15, 2019 to publicly disseminate information about (CSI) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month for a period of 3 months. We own zero shares of (CSI), which we purchased in the open market. We plan to sell the “ZERO” shares of (CSI) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (CSI) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. This contract has been renewed for a period of 180 days beginning on August 2, 2019 and ending on February 2, 2020. This contract has been renewed for a period of 60 days beginning on January 27th, 2020 and ending on March 27th 2020.


Share - Facebook

Share - Twitter

Published at Mon, 27 Jan 2020 13:17:29 +0000

Chemesis International Inc. Provides Corporate Update

Chemesis International Inc. Provides Corporate Update

 Chemesis International Inc. (CSI.CN) (CADMF) (CWAA.F) (the “Company” or “Chemesis“), announces, further to its news release dated January 17, 2019, that the Puerto Rico Department of Health has commenced an appeal of the favourable judgment (the “Decision“) obtained by the Company from the Puerto Rico Superior Court, San Juan, in respect of the certain cannabis licenses (“Licenses“) held by its subsidiary, Natural Ventures PR, LLC (“Natural Ventures“) which had effectively been abeyed by the Puerto Rico Department of Health. The Decision, which is now under appeal, found that such abeyance of the Licenses was invalid and unconstitutional and nullified such action.

The Company notes that the Department of Health had applied for a order staying the effect of the Decision until the appeal has been heard and decided; however, the Court decided in favour of the Company and did not stay the effect of the Decision. As a result, the Company remains in active consultation with its legal team with a view to having the Decision implemented as soon as practicable.

The Company notes that, at the current time, the Licenses have not yet been reinstated to being operational, and that Natural Ventures is still not permitted to carry out any licensed activities under the Licenses, though it is permitted to carry out certain activities for the purposes of preserving and maintaining inventory. The Company will provide further updates as appropriate.

On Behalf of The Board of Directors
Edgar Montero
CEO and Director

About Chemesis International Inc.

Chemesis International Inc. is a vertically integrated U.S. Multi-State operator with International operations in Puerto Rico and Colombia.

The Company focuses on prudent capital allocation to ensure it maintains a first mover advantage as it enters new markets and is committed to differentiate itself by deploying resources in markets with major opportunities. The Company operates a portfolio of brands that cater to a wide community of cannabis consumers, with focus on quality and consistency.

Chemesis has facilities in both Puerto Rico and California. The Company believes it is well-positioned to win additional licenses in highly competitive merit-based US states and will expand its footprint to ensure it maintains a first mover advantage.

Investor Relations:

1 (604) 398-3378

Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws relating to statements regarding the Company’s business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including with respect to the Company’s expectations regarding the implementation of the Decision, the outcome of the appeal, the reinstatement of the Licenses, its plans to continue to develop dispensaries in Puerto Rico, and its ability to obtain licenses in additional jurisdictions. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Decision may be successfully appealed by the Puerto Rico Department of Health, the appeal may not be resolved promptly, that the activities permitted under the Licenses will be restored, that the Company’s products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected, including, but not limited to, in relation to developing dispensaries in Puerto Rico, and its ability to obtain licenses in additional jurisdictions. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.


Share - Facebook

Share - Twitter

Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Mon, 27 Jan 2020 16:08:48 +0000

Tennessee Lawmaker Introduces Adult-Use Cannabis Legalization Bill

Tennessee Lawmaker Introduces Adult-Use Cannabis Legalization Bill

The state of New York seems on the cusp of legalizing recreational adult-use cannabis. Governor Andrew Cuomo (D) last week released a budget outline that includes the proposed legalizing and taxing marijuana—a move that echoes his annual State of the State address, in which he pledged to legalize marijuana in 2020. But even in the midst of what seems like cause for celebration, the state’s medical marijuana leaders remain cautious and even a bit concerned—and with good reason, according to Karen O’Keefe, director of state policies for the Marijuana Policy Project.

“New York initially got medical marijuana very wrong,” O’Keefe says. “At Cuomo’s insistence, the program initially excluded pain patients, prohibited whole plant cannabis, and allowed only five vertically integrated licenses—with four locations each—in a state with nearly 20 million people. Large amounts of capital were needed to [get] a license, and licensees lacked diversity. New York over-regulated and drove up costs. The result was that about half of patients who bought cannabis from dispensaries never went back a second time—even after having jumped through hoops to get the state ID card. Unregulated cannabis was cheaper and more accessible.”

While many of those issues have been addressed (under Cuomo’s administration), O’Keefe says the state’s regulations remain “on the restrictive side,” and “it will be worth keeping a close eye to ensure the unnecessarily restrictive, unsuccessful model for medical marijuana isn’t repeated.”

Hillary Peckham, chief operations officer of Etain—a women-owned medical marijuana business with locations throughout New York—believes input from the state’s medical operators will be crucial in “creating a program with products and business practices that keep both consumers and public safety at the forefront.” And she wants medical operators, such as Etain, to “have the opportunity to produce these products for the adult-use program as well as the medical program.”

Adam Goers, vice president of corporate affairs at Columbia Care—a medical cannabis provider in New York as well as 10 other states, Puerto Rico, and Washington, D.C.—says his team has spoken with the state’s social justice groups, law enforcement, community leaders, faith leaders, and policy makers—some in the governor’s office—in an effort to weigh in on the regulations.

“We have a lot of hard work to do until the end to push this [legislation] through,” Goers says, adding that, “ultimately, I think everyone is in a position at the end of this to declare victory.”

Peckham says that New York’s medical regulations require that cannabis products are “almost-pharmaceutical level,” with stringent tolerances for what microbials, metals, and contaminants are allowed—and she’d like to see those same stringent standards applied to recreational pot.

RELATED: New York-Based Etain Continues to Innovate Despite Limitations of Medical Program

Goers agrees. “A medical patient is getting their high-quality, consistent products in the current medical program and we can’t believe—and we know that broad stakeholders agree, too—that someone in the adult-use marketplace should expect any product that is of lesser quality.”

But both Goers and Peckham say some changes should be made, too, that would benefit medical and recreational users alike. Perhaps most importantly, however, they want patients and users to have easier access to marijuana. “Patients want better access,” Goers says. “We heard this loud and clear. Right now, there’s one medical dispensary for every half a million people in the state of New York. That’s not access.” In addition to adding dispensaries, Peckham wants the state to “ensure that the disbursement of licenses is reflective of the population and create geographic diversity,” she says. “This way, there are sufficient dispensaries to serve upstate populations.”

Another move that would make accessing medical marijuana easier, Peckham says, is allowing all New York physicians to certify patients—without having to pay for a course. Peckham also thinks patients should be able to qualify for the program for any reason, “so long as their doctor deems they will benefit,” she says. “This would be extremely helpful in providing access to patients because now, only patients with a qualifying condition can get access to the program.”

Goers would like to see the number of testing laboratories increase throughout the state. He says that with limited laboratories, drivers must travel for hours to reach or deliver products. What’s more, the state requires two drivers to carry products, a regulation medical companies would like to see removed, Goers says, to benefit themselves and patients. “You’re talking about costs that we’re having to pass on to the patients that aren’t making the program any more secure,” he says.

Last year, legalization died in the state Senate. Peckham and Goers see obstacles to legalization this year, too. Peckham admits it may take a few more tries to pass the legislation, but Goers remains optimistic that despite any obstacles, legalization will prevail this year. “Everyone is moving forward in this because, ultimately, for numerous reasons, New York state can’t wait any longer.” Why? He says that patients deserve better access, adult users deserve legal access, and the industry could create an economic boom for the state with jobs and business opportunitites.

“I could find the obstacles, sure,” he says. “But I think those three tenets are the most important ones and I think that’s why everyone is working so darn hard to make sure that this happens.”

Published at Mon, 27 Jan 2020 16:24:00 +0000

2 Marijuana Stocks To Watch As January Comes To An End

2 Marijuana Stocks To Watch As January Comes To An End

2 Marijuana Stocks To Watch As January Comes To An End – Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™

Published at Mon, 27 Jan 2020 15:37:05 +0000

1933 Industries Augments Board of Directors with the Addition of Senior CPG Executives Lisa Capparelli and Mark Baynes and Announces Terry Taouss as new Chairman of the Board

1933 Industries Augments Board of Directors with the Addition of Senior CPG Executives Lisa Capparelli and Mark Baynes and Announces Terry Taouss as new Chairman of the Board

1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF), a vertically-integrated and growth-orientated cannabis consumer packaged goods company, is pleased to announce the appointment of seasoned senior executives in the beauty and CPG industries to its Board of Directors. The Company welcomes Ms. Lisa Capparelli and Mr. Mark Baynes to the board and announces that Mr. Brayden Sutton and Mr. Cameron Watt have resigned as directors. Mr. Terry Taouss has been appointed Chairman of the Board.

CSE:TGIF OTCQX:TGIFF (CNW Group/1933 Industries Inc.)

Ms. Lisa Capparelli is a global marketing executive with deep expertise in creating 360 brand universes, award winning programs and driving business transformation within the beauty industry. Ms. Capparelli has successfully developed effective, innovative marketing and communication strategies for iconic beauty companies including Coty, L’Oréal and Revlon. She possesses a deep understanding of the power of paid, owned and earned media and has extensive experience in creating exclusive partnerships within the beauty and entertainment industries. She is highly adept at identifying emerging beauty trends and creating award-winning digital and influencer marketing platforms. Ms. Capparelli’s expertise will be invaluable as 1933 Industries continues to focus on brand development, consumer engagement and sales growth across the United States.

Mr. Baynes is a senior marketing executive with over 30 years’ bluechip experience in the CPG industry, having worked for Nestle, Kraft, Kellogg’s, and Keurig. During his tenure at Kellogg’s as Global Chief Marketing Officer, Mr. Baynes was responsible for the company’s global brand agenda and overseeing the effectiveness of its marketing capability, brand investment and the execution of its consumer agenda. Mr. Baynes brings a wealth of experience in the areas of consumer, portfolio and brand strategy. As a member of the Kellogg’s executive leadership team for over 7 years, Mr. Baynes was involved with and contributed to the overall leadership of the business. Mr. Baynes held senior positions within the Association of National Advertisers (ANA) and as a Board Member on the Ad Council. With extensive CPG and marketing experience, Mr. Baynes joins the 1933 Industries’ Board to advise on its overall marketing strategy as the Company advances to its next growth phase.

Mr. Chris Rebentisch, CEO of the Company remarked, “As we continue to focus on the growth of our branded consumer packaged goods, we are bringing new directors to help us drive the business and achieve our goals. Both Lisa and Mark are results-driven, experienced executives in their respective fields who will bring their extensive networks and resources to assist us in taking the Company to the next level.”

Mr. Brayden Sutton stepped down from the Board of Directors in order to focus on his family. With vast capital markets and cannabis industry experience, Mr. Sutton will continue to support the Company in an advisory role. Mr. Rebentisch said, “As founder and former CEO, Brayden built 1933 Industries from the ground up, implemented strong capital efficient practices that have ensured the sustainable growth of the Company and helped to guide the Company’s strategy as Chairman of the Board.  On behalf of the Board and the entire Company, we thank Brayden for his enormous contributions, leadership and guidance. We also thank Cam for his valuable contributions during his tenure as a director”.

“I have never been more confident in 1933 Industries. As an investor and ambassador of the Company, I fully support the management team as one of the best in the business. Deeply rooted in the industry, their dedication, leadership and keen eye for identifying trends and brands is unrivalled. Although I am stepping back from the day to day operations, I will continue to actively support the Company as it enters a new chapter of growth and development”, commented Mr. Sutton.

Mr. Terry Taouss, newly-appointed Chairman remarked, “As the Company enters a new phase of rapid growth, we are excited to welcome Lisa and Mark to the Board at this important juncture. 1933 Industries has positioned itself to capitalize on the massive growth opportunity in the US where the cannabis sector continues to evolve rapidly. 2020 will be a transformative year for the Company and the new directors will undoubtedly have a positive impact on the business, bringing valuable new perspectives and expertise in the key areas of marketing, branding and corporate governance.”

The Company also announces that Ms. Alexia Helgason has been appointed VP of Investor Relations and that Mr. Jordan Stroum has been named Director of Operations for 1933 Industries.

About 1933 Industries Inc.
1933 Industries is a vertically-integrated, growth-orientated company, focusing on the cultivation and manufacturing of cannabis consumer branded goods in a wide range of product formats. Operating through two subsidiaries, the Company controls all aspects of the value chain with cultivation, extraction, processing, and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners.

Our award-winning proprietary portfolio of brands include: AMA flower and AMA concentrates as well as CBD-infused Canna Hemp™, Canna Hemp X™, and Canna Fused™ products. Partners under licensing agreements include: Birdhouse Skateboards™, Blonde™ Cannabis, Bloom™, Denver Dab Co., Grizzly Griptape, OG DNA Genetics, The Pantry Company, PLUGplay, and The Original Jack Herer®.

The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC. 1933 Industries continues to focus its operations in the licensed US cannabis industry as a multi-state operator in Nevada, Colorado and California.

About Canna Hemp™
Canna Hemp™ CBD Relief Cream was named “Best Topical” by Leafy’s Best in State: The Top State Specific Products and Experiences of 2018.

About Canna HempX™
Canna Hemp X™ was named “Best Topicals for Pain” by Herb’s Guide to the Best Cannabis Products on the Planet. Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents, which can be found under the Company’s profile on www.sedar.com.   1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.


View original content to download multimedia:http://www.prnewswire.com/news-releases/1933-industries-augments-board-of-directors-with-the-addition-of-senior-cpg-executives-lisa-capparelli-and-mark-baynes-and-announces-terry-taouss-as-new-chairman-of-the-board-300992668.html

SOURCE 1933 Industries Inc.

Published at Fri, 24 Jan 2020 13:32:35 +0000

SAFE Banking Act’s House Co-Sponsors Urge Senate to Take Action, Adult-Use Legalization Efforts Underway in New York, New Mexico and New Hampshire: Week in Review

SAFE Banking Act’s House Co-Sponsors Urge Senate to Take Action, Adult-Use Legalization Efforts Underway in New York, New Mexico and New Hampshire: Week in Review

An increase of mutating microbes around the globe has led medical experts to call antibiotic resistance an “apocalyptic threat” and raises an alarm for needed research into finding new solutions now. The most recent antibacterial drug developments date back more than 30 years at this point. With many of the chemical components of cannabis known to have antimicrobial effects as a way for the plant to protect itself, research into how these benefits can translate into human disease has begun in earnest. In terms of antimicrobial action, one such cannabinoid, cannabigerol (CBG), has proven particularly potent.

The antimicrobial and antifungal implications of CBG were first investigated in 1982 by the Elsohly et al team at the University of Mississippi. But research remained superficial until larger concentrations of the compound could be easily obtained, either from lab synthesis or access to the CBG-rich plants that are now being cultivated after the passage of the 2018 Farm Bill.

In a 2008 study on antibacterial cannabinoids, investigators demonstrated potent activity against a variety of methicillin-resistant Staphylococcus aureus (MRSA) strains by both CBD and CBG via topical application. The researchers also pointed out that the potential synergy of cannabinoids and terpenes, many of which also have antimicrobial potential, should be considered to improve patient outcomes.

Additionally, a 2018 study reported that endocannabinoids, like anandamide (AEA), are able to inhibit the spread of MRSA infections by decreasing biofilm formation which can increase the spread of bacterial colonization on the skin. Drugs that mimic the effects of AEA in the body, like THC, or drugs that inhibit the degradation of AEA in the body by the enzyme fatty acid amide hydrolase (FAAH), may prove agents of promise in the fight against biofilm-associated MRSA infections.

In recent news, a study out of McMaster University in Hamilton, Ontario published in bioRxiv preprint demonstrated that CBG was more effective against MRSA USA300, a highly virulent and prevalent form, than the four other major cannabinoids tested: Δ9-tetrahydrocannabinol (THC), cannabidiol (CBD), cannabichromene (CBC), and cannabinol (CBN).

As effective as vancomycin, a drug widely considered the last line of defense against drug-resistant bacteria, CBG was shown to be successful at treating MRSA. Unlike vancomycin, which has already begun to exhibit bacterial resistance, this superbug displayed no such energy for overcoming the CBG therapy. The cannabinoid was also more potent than conventional antibiotics in inhibiting the thin, slimy biofilms associated with disease persistence and against dormant “persister” cells that have a role in chronic and relapsing infection, rapidly eradicating populations below detectable levels.

More Than MRSA

Additionally, researchers in this new study were able to further elucidate the beneficial effects of CBG against both Gram-positive and Gram-negative drug-resistant bacteria. These two broad categories of bacteria classification are associated with cell wall permeability. The double cell membrane of Gram-negative organisms makes treatment trickier. Without a little help from compounds that can dissolve the outer shell while preserving the inner cell layer, conventional antibiotic treatments have a difficult time getting through. And regular mutations in drug-resistant types make treatment nearly impossible.

Gram-negative bacteria make up 75% of the antibiotic resistant infections highlighted by the World Health Organization (WHO), according to the study’s authors, and are responsible for an array of deleterious diseases, including chlamydia and gonorrhea as well as pneumonic, septicemic, and bubonic plagues. Particularly virulent strains like Klebsiella, Acinetobacter, and Pseudomonas aeruginosa can cause deadly healthcare-associated infections like pneumonia and various sepsis syndromes.

Once investigators demonstrated the ability of CBG to effectively work on the inner membrane of Gram-positive MRSA in a rodent model, they tested its efficacy on Gram-negative E. coli after the outer membrane was made permeable by the addition of polymyxin B, an antibiotic already in use to treat Gram-negative infections. By breaking down the disease cell membrane, polymyxin B provided CBG access to its point of action. While these results are significant, serious side effects are associated with this added compound, including kidney failure, whereas one of the most promising aspects of cannabinoid therapies is the low rate of both serious side effects and toxicity to healthy cells.

The results of the study demonstrated the potential for CBG therapy against MRSA infection and disease persistence by inhibiting bacteria, repressing biofilm formation, eradicating already present biofilms, and effectively eliminating problematic persister cells. The non-intoxicating, non-sedative nature of the cannabis constituent further highlights its therapeutic potential against drug-resistant bacteria with a very low rate of resistance development. Now that CBG has been made more readily available to researchers, human trials will be the next step in determining whether this super drug is an effective therapy against superbugs.

Published at Sat, 25 Jan 2020 13:00:00 +0000

Now That We Have a Cannabis Bottom… What to Do? (CGC, ACB, GDET, CURLF)

Now That We Have a Cannabis Bottom… What to Do? (CGC, ACB, GDET, CURLF)

So, after much ado and bloodletting, the formerly high flying cannabis space – now humbled and begging forgiveness for its second derivative sins – is ready for some browsing speculation once again. Let us be your guide – your Sherpa – as we mount an expedition for value, momentum, and fresh green profits.

Today, we take a glance at Canopy Growth Corp (NYSE:CGC), Aurora Cannabis Inc (NYSE:ACB), GD Entertainment & Technology Inc. (OTCMKTS:GDET), and Curaleaf Holdings Inc (OTCMKTS:CURLF).

Canopy Growth Corp (NYSE:CGC) engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps.

It’s perhaps the biggest overall name in the space when it comes to a combination of producing and investing in the space, so it has to be near the top of any measure as far as benefitting from a shift whereby full-scale legalization in the US market is concerned.

Canopy Growth Corp (NYSE:CGC) generated sales of $76.6M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter “growth” rate of -15.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.8B against $425.8M).

According to its own materials, the company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands.

In the company’s words, “Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.”

This is also one of the most geographically diversified players in the cannabis space, with operations in 12 countries across five continents.

And there has been plenty of PR work here. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its partly owned subsidiary, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector.

One of its most important divestitures and strategic interests is Canopy Rivers Inc., a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The company works collaboratively with Canopy Growth to identify strategic counterparties seeking financial and/or operating support. 

The company has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth and collaborate among themselves, which the company believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

Aurora Cannabis Inc (NYSE:ACB) is one of the most widely diversified players in the cannabis space due to its powerful strategic investments, and it clearly also deserves to be at or near the top of this list.

In addition, the company has demonstrated rapid organic growth and strong execution on strategic M&A, which to date includes 15 companies – MedReleaf, CanvasRX, Peloton Pharmaceutical,  Aurora Deutschland (formerly Pedanios), H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia Labs, HotHouse Consulting, Agropro, Borela, and the pending acquisition of ICC Labs.

We would also note that the company has invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).

However, just drilling down into its core cannabis production operations, Aurora Cannabis Enterprises Inc, trumpets itself as “one of the world’s largest and leading cannabis companies” and a licensed producer of medical cannabis pursuant to ACMPR.

We would expect expansion on the way given the inflow of investment capital. But, at present, the Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as Aurora Mountain, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.

And the stock has been acting well over recent days, up something like 14% in that time.

Aurora Cannabis Inc (NYSE:ACB) managed to rope in revenues totaling $75.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 153.6%, 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 ($236.9M against $464.6M, respectively).

GD Entertainment & Technology Inc. (OTCMKTS:GDET) is another stock that continues to look extremely cheap relative to the strong pace being set by the company in its core strategy, especially on the CBD side.

The company recently opened a store for its CBD-based products subsidiary, The Greenery. The store, which is located at Palisades Center in West Nyack, New York, the second-largest shopping mall in the New York metropolitan area and the eighth-largest in the United States, was opened three weeks in time for Black Friday and the holiday shopping season.

Now it is coming out and already talking about expansion in that space. Specifically, according to its most recent release, the company is entertaining a tangible offer to expand its “The Greenery” (TheGreeneryCo.com) CBD products physical retail exposure to a second, and larger, mall-based physical store location following positive branding and customer traffic data for its first mall-based physical store location.

“Following an extremely positive experience at the kiosk level at Palisades Center, we have been approached by management at that location and given a priority access option to expand to an additional and larger space in another similar mall,” noted Anil Idnani, CEO of GDET. “The vast bulk of the potential market for CBD products has no idea that they need to navigate to some backwater ecommerce portal to buy CBD-based products. Instead, they are walking around popular shopping areas, browsing for something new and interesting to try – and CBD is that new and interesting possibility. The only way capture any piece of that market is to be in front of them, out in the world.”

This is spectacular reasoning, and why we felt compelled to include the stock on this list.

One other dimension that differentiates GDET in this list is diversification: it is also a fully-active and operating blockchain play. There are many potential synergies between these segments. But there is also the advantage of diversification of revenue streams, which may provide some cover if there is a further capitulatory washout in the hemp, cannabis, and CBD complex before the next leg higher in the space gets fully underway.

We would also note that the company just announced a substantial reduction in its outstanding share count to lighten the load and send a shareholder-friendly signal to the market.

“If we move forward with this second location, it will be because we have run the numbers and the store will more than pay for itself,” continued Idnani. “At this point, we believe we can be selective and expand as the right opportunities come along. But we also believe that this approach to distribution is on target for this market because we gain an edge in brand exposure that will pay priceless dividends down the road as this marketplace continues to go mainstream over coming quarters.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) is a vertically integrated cannabis player that has started to move into the hemp-based CBD space in an aggressive fashion. The stock has been outperforming the broader hemp-cannabis-cbd complex in recent action, which is notable.

The company just announced that it has opened its 27th dispensary in Florida at 3631 NW Federal Highway in Jensen Beach on Friday, November 15th. 

According to the release, “Curaleaf has the largest cannabis dispensary footprint in the US with 50 dispensaries across the country and continues to execute on its strategy of rapid expansion in Florida. The new 4,500 square foot location is accessible to patients from the Jensen Beach area, including the communities of Jupiter, Port St. Lucie, Stuart, Port Salerno and Palm City, and will offer a full range of premium quality medical cannabis products and private consultations by meticulously trained staff.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates a large number of 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.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. 

And the stock has been acting well over recent days, up something like 11% in that time. 

“We have been hearing from patients about the need for a full-service medical cannabis center along the Martin County and St. Lucie County coast,” said Joe Lusardi, Curaleaf CEO. “Curaleaf is proud to be the first dispensary in Jensen Beach, and we look forward to serving this community.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $64.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 0%, 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 ($140.3M against $64.1M).

Published at Thu, 23 Jan 2020 14:07:07 +0000

Aleafia Health Named to Newly Launched S&P/MX International Cannabis Index

Aleafia Health Named to Newly Launched S&P/MX International Cannabis Index

Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”), a global cannabis health and wellness company, is pleased to announce that it has become a constituent company of the newly launched S&P/MX International Cannabis Index (MCAN). S&P Dow Jones calculates and manages the S&P/MX Indices. The TMX Group Inc. owns and distributes all S&P/MX equity index data.

MCAN comprises a select issuer group that meets minimum market capitalization and liquidity thresholds, among other requirements.

For Investor & Media Relations:

Nicholas Bergamini, VP Investor Relations
1-833-TSX-ALEF (879-2533)
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health is a leading, vertically integrated cannabis health and wellness company with four primary business units: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with ecommerce, retail distribution and provincial supply agreements.

Aleafia Health owns three major cannabis product & cultivation facilities, two of which are licensed and operational including the first large-scale, operational outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.

Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top performing company prior to its graduation to the TSX.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

Primary Logo

Source: GlobeNewswire (January 24, 2020 – 8:30 AM EST)

News by QuoteMedia

Published at Fri, 24 Jan 2020 13:35:57 +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

Current Hemp Regulations Aren’t Working for Farmers or Regulators

Current Hemp Regulations Aren’t Working for Farmers or Regulators

The hemp market continues to settle as farmers look to the 2020 season. As U.S. growers learn from lessons they picked up in previous years, and as more growers get into the game, the national and international markets will shake out and begin to look more like a commodities market. PanXchange market updates, which we share on Hemp Grower, show us that the transition is already under way.

Andrew Graves, chairman of Atalo Holdings, will be explaining how his company has prepared for the long-term when he speaks at Cannabis Conference 2020. We decided to check in with him to tee up that spotlight session and get a sense of what farmers can be thinking about in this upcoming planting season.

Hemp Grower: Let’s begin with Hemp Knowbility. Why is it important to your company to be talking about long-term plans with other farmers? 

Andrew Graves: We have spent the last five years learning to be proficient in planting, cultivating and harvest, drying and then extracting our material. We now feel like we have accumulated enough information that we can share it with other groups and other farmers on a consulting basis. We’ll even do big grows for those groups that are interested. We have a plethora of different avenues that we can travel. And it’s all about the fact that we have total traceability with our genetics. It’s repeatable. And we know how to achieve those things through our new hybrid, which we’ve developed over these years. We feel like we have a very good product that can help farmers and other groups to achieve their goals.

HG: Whether it’s in that capacity or more informally, what are some helpful ways to get hemp farmers out of the urgency of the fast-paced market to think more about long-term planning?

AG: As head of the company, I have to be thinking of all if I can. What I think is that genetics will lead us to the future, and that means really, really good hybrids. I believe that seed technology in general—and that means anywhere from seed coating to types of colors—all of these things will help farmers to get their use their precision planters to get this thing seeded and placed correctly in the soil.

andrew graves cannabis conference

Now, our company is all about outdoor growing. We are not confined to greenhouse. We think about scale. And that is thinking of the future, because this, obviously, in my mind, will be a commodity. It will be commoditized in every way of the crop. So, the other ways that our company thinks about whole plant—obviously we would use seed and sell seed to a grower that is specific to whatever he was trying to do. Right now, they all call and look for some kind of CBD that’s off the charts in percentage. However, you know and I know it has to remain compliant. Those companies in the future that offer a plant that gets the CBD percentage right up there where it can remain legal, but also, we can offer ways for those growers to sell the various parts of the plant. And that would mean dust, plant fiber, branches, the seed itself: this is something that we offer as a company that you just have to be able to sell everything, as they say, in the old Chicago stockyards, including the squeal. That’s what it’s going to take in order to make farmers remain profitable in this industry, because everyone around the world seems to be trying to get in.

We remain confident that clones are an option, but currently they’re priced in such a fashion that it makes them almost unprofitable from the get-go. I just don’t think long-term that clones and transplanting are going to be the way of the future. We have to be preparing for that time when the low-cost producer is the winner. That’s where we’re going.

HG: Is there a certain scale at which farmers should begin thinking about commoditization? Or, rather, where does the small farmer fit in all of this?

AG: Here in the very beginning, it’s affecting us all. The average grower here is 20 acres. Unless, in the very near future, unless you’re a 50-acre grower or better, I don’t think you can stay in this game. It’s going to go to the larger acreage. Unfortunately, that’s what happens in agriculture. The farmers are very good. They find ways to be efficient and to make money. And that’s just the way they work. And we have to be acting on their behalf to give them the right ideas, the right tools, to show them how to use the tools, and we’ll back up and watch how they operate. It’s all going to be in seed and seed technology.

HG: How about geography? Climate obviously plays an important role in this crop. How will various state hemp programs shake out as commoditization becomes a vital factor in the industry?

AG: Well, unfortunately, I have no way to predict weather. But I will say to all growers, wherever you are, if you’re raising hemp outside, hemp does not like wet feet. So, here in Kentucky, the soils are deep. It does rain, or it or it has, shall we say; nothing is a given. But it rains in a lot of places north of here, south of here. The key is deeper soil, fertile soil and well drained soil. River bottom sounds great until you get a deluge of rain. And then that hemp is going to be grounded. I think Kentucky all the way to the Mississippi River and north all the way to Michigan are going to be the key growing areas for hemp.

HG: What do you hope attendees will bring back to their business from your session at Cannabis Conference 2020? 

AG: I hope that they will be able to capture key bullet points of efficient, quality-based production that they can take home and multiply the effects of. That would be my hope, because for years we’ve been preaching about hemp. And now we can preach about from a qualified standpoint about things that do work—and some things that do not work. So that’s my hope, that they would come and listen to a little of the background, the history of Kentucky and the surrounding areas, from my standpoint, what experiences we’ve seen in the last five years or so, and where we can help them get to in their cultivation practice.

Published at Thu, 23 Jan 2020 15:15:00 +0000

For updates, news and tips.
Your valid email will receive a confirmation for this subscription