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Champignon Provides Update on Disclosure Review

Champignon Provides Update on Disclosure Review

VANCOUVER, British Columbia, Sept. 15, 2020 (GLOBE NEWSWIRE) — Champignon Brands Inc. (CSE: SHRM) (the “Company”) continues to work with the British Columbia Securities Commission (the “Commission”) to address an ongoing continuous disclosure review.  Since the review was commenced, the Company has arranged for:

Filing of business acquisition reports (collectively, the “Business Acquisition Reports”) in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp.
 
Revocation of the initial cease trade order issued by the Commission on June 19, 2020.
 
Preparation of financial disclosure in connection with the acquisition of AltMed Capital Corp. (“AltMed”).  Compilation of the statements is at an advanced stage, and the Company expects this work to be concluded shortly.

Continuous Disclosure Review

On June 19, 2020, the Company was notified by the Commission that it would be subject to a continuous disclosure review.  Such reviews are conducted by the Commission for the purposes of ensuring compliance with the continuous disclosure obligations imposed by applicable Canadian securities laws.  In the case of the Company, this review relates to the Company’s disclosure obligations since it became a reporting issuer on February 6, 2020 and includes a review of the disclosure surrounding acquisitions completed by the Company since that time.

In connection with the review, on June 19, 2020, the Commission issued a cease trade order suspending trading in the securities of the Company pending the filing of Business Acquisition Reports in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp.  As a result of the cease trade order, trading in the common shares of the Company was suspended on the Canadian Securities Exchange.

The Business Acquisition Reports were filed by the Company on July 21, 2020, during which time the Company continued to work with the Commission to address comments received in the course of the disclosure review.  As a result of the filing of the Business Acquisition Reports, on August 26, 2020, the Commission revoked the cease trade order previously issued on June 19, 2020.  Concurrently with the revocation, the Commission issued a replacement cease trade order (the “Replacement Order”), pending the filing of a revised material change report (the “Material Change Report”) in connection with the acquisition by the Company of AltMed.

The Company previously filed a Material Change Report on May 11, 2020, in connection with the acquisition of AltMed.  The Replacement Order will remain in effect until a revised Material Change Report is filed which contains the disclosure required for a restructuring transaction in accordance with National Instrument 51-102 – Continuous Disclosure Obligations.

Prior to finalization of a revised Material Change Report, the Company is required to finalize the accounting treatment for the acquisition of AltMed.  The Company has concluded, in discussions with its external auditor and accounting advisors, that the acquisition of AltMed should be treated as a reverse-takeover in accordance with IFRS 3 – Business Combinations.  As a result of this conclusion, AltMed is treated as the acquiror for accounting purposes and the Company is in the process of compiling the financial statements of AltMed for the six-month period ended June 30, 2020 to meet disclosure requirements.  Compilation of the statements is at an advanced stage, and the Company expects this work to be concluded shortly.

The Company remains committed to working with the Commission to assist in completion of the review and revocation of the Replacement Order in a timely fashion.  Compliance with its continuous disclosure obligations remains of paramount importance to the Company, and its board of directors, and the Company will continue to update shareholders as work with the Commission progresses.

ON BEHALF OF THE BOARD OF DIRECTORS

Dr. Roger McIntyre
Chief Executive Officer
E: info@champignonbrands.com

FOR INVESTOR INQUIRIES:

Champignon Brands | Storyboard Communications
Investor Relations, Toronto, Canada
Investor Line:  +1 (833) 375-9995 x611
E: champignonbrands@storyboardcommunications.com

FOR CHAMPIGNON BRANDS FRENCH INQUIRIES:

Remy Scalabrini
Maricom Inc.
E: rs@maricom.ca
T: (888) 585-MARI

The Canadian Securities Exchange and its Information Service Provider have not reviewed and do not accept responsibility for the accuracy or adequacy of this release.

Forward-looking Information Cautionary Statement
This news release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance are “forward-looking statements.” Forward-looking statements 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 statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events, or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. Such risks and uncertainties include, among others, the Company’s ability to finalize financial disclosure surrounding the acquisition of AltMed and meet the requirements prescribed for the revocation of the Replacement Order. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.  There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company has no obligation to update any forward-looking statement, even if new information becomes available.
 

Published at Wed, 16 Sep 2020 09:23:41 +0000

The Next Level for Cannabis Stocks (GRWG, CURLF, SGMD, APHA)

The Next Level for Cannabis Stocks (GRWG, CURLF, SGMD, APHA)

As we head into the upcoming election on November 3, investors should anticipate major shifts in market behavior.

The uncertainty surrounding this election is palpable, not just because of the intense polarization that marks our current political moment, but because of added uncertainty drawn from the fact that, in a recent Pew research poll, nearly 70% of republican voters said they would vote in person at the ballot box on election day while over 75% of democrats said they were likely to vote by mail.

As both parties work to lay down strategies to support the narrative around this transition that best aids their partisan cause, markets shiver in anticipation of widespread social disarray as both seek to delegitimize the other’s claim to the throne after January.

That could create a lot of capital motion in the weeks ahead, as big money managers scramble to diversify and capitalize on new themes. One of those new themes that could vacuum up a lot of wandering capital is in the cannabis space, as we run toward multiple new legalization votes on state ballots as well as the potential that a putative Biden administration might quickly move to decriminalize on a national level.

As such, we put together a list of some interesting stocks in the space that could represent strong opportunities for speculators over the coming period, including: GrowGeneration Corp (NASDAQ:GRWG), Curaleaf Holdings Inc (OTCMKTS:CURLF), Sugarmade Inc (OTCMKTS:SGMD), and Aphria Inc (NASDAQ:APHA).

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced that it believes it has uncovered fraudulent attempts to manipulate the Company’s stock. On August 21, 2020, an organization calling itself “Hindenburg Research” published false and defamatory statements about certain Officers and Directors of the Company designed to provide a false impression to investors and to manipulate the market to benefit short sellers.

According to the release, GrowGen intends to collaborate with law enforcement and regulators to ensure that any criminal activity is investigated and prosecuted. GrowGen will be taking steps to ensure that the organization ceases and desists from all illegal and otherwise wrongful activity. GrowGen will vigorously defend the value of the Company on behalf of shareholders and investors.

The stock has suffered a bit of late, with shares of GRWG taking a hit in recent action, down about -6% over the past week.

GrowGeneration Corp (OTCMKTS:GRWG) managed to rope in revenues totaling $43.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 123%, 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 ($14.8M against $18.8M, respectively).

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. 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. The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations.

Curaleaf Holdings Inc (OTCMKTS:CURLF) most recently announced the grand opening of Curaleaf Brandon, the company’s 31st location in Florida. The new location, located at 846 E. Brandon Blvd, is the third new dispensary in the Tampa / St. Petersburg / Clearwater metropolitan area this quarter.

Curaleaf is committed to serving the growing base of 394,000 registered medical patients in Florida, which is one of the nation’s fastest-growing medical cannabis markets in the country. In August, the company opened new dispensaries in Clearwater (2081 Gulf to Bay Blvd.) and South Tampa (3030 W. Gandy Blvd.). The company’s strategic expansion in the Tampa Bay area will provide patients and caregivers expanded access to high-quality medical cannabis products, including Select, America’s #1 cannabis oil brand.

The stock has suffered a bit of late, with shares of CURLF taking a hit in recent action, down about -4% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -19%.

Curaleaf Holdings Inc (OTCMKTS:CURLF) generated sales of $162.8M, 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 25.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($167.2M against $176.4M, respectively).

Sugarmade Inc (OTCMKTS:SGMD) operates now mostly through its controlling stake in BudCars, a leading California cannabis delivery company that operates on a traditional retail model with consistent 45-50% gross margins on cannabis inventory.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience. That dynamic has presented SGMD shareholders with a dramatic boom over recent months.

Sugarmade Inc (OTCMKTS:SGMD), to further drive that boom, recently announced that it is submitting an application to the California Bureau of Cannabis Control to expand into cannabis cultivation as part of a strategic plan to partially verticalize its BudCars model, a process that management strongly believes will further increase the Company’s gross profitability over the long-term and provide a rapid potential path to branded product development. The Company has already secured a property containing a 5,000 square-foot indoor premium cannabis cultivation facility located in very close proximity to its Sacramento BudCars hub.

Jimmy Chan, CEO of Sugarmade, noted, “BudCars is a high margin, high-growth business. But it will still benefit from verticalization. Because we have access to our end-market consumer directly and we have cultivation expertise and a premium grow facility, an expansion into cultivation to connect the dots is a clearly advantageous move. In addition, because BudCars is a rapidly growing distribution channel, we will have a clear edge in the marketplace in terms of the capacity to establish our own branded cannabis product line.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

Aphria Inc (NASDAQ:APHA) has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market.

The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. “Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.”

Aphria Inc (NASDAQ:APHA) recently announced it has entered into a Strategic Supply Agreement with Canndoc Ltd., a subsidiary of InterCure Ltd. (TASE: INCR) (TASE: INCR.TA), one of Israel’s largest and most established medical cannabis producers.

According to the release, under the terms of the Agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period, with the option to extend for two additional terms of two years each, and an option for an additional year after that if the parties agree to terms.  During the first two-year term and each additional term, if applicable, the Company will provide Canndoc with 3,000 kgs. of bulk dried flower, which will be processed into finished product, co-branded under the Aphria and Canndoc brand names, and sold exclusively within the Israeli market.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action APHA shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -4% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -3%.

Aphria Inc (NASDAQ:APHA) managed to rope in revenues totaling $152.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 18.4%, 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 ($497.2M against $170.4M).

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Published at Mon, 14 Sep 2020 05:31:44 +0000

Can Wildfires Impact Cannabis Quality and Test Results?

Can Wildfires Impact Cannabis Quality and Test Results?

Editor’s note: This article was originally published during the 2018 wildfire season. Read “California Wildfires Continue to Ravage State Agriculture, Including Cannabis Farms,” published in September 2020, here.

As more than a dozen wildfires continue to burn across California, cannabis cultivators affected by the blaze face challenges ranging from the health and safety of their employees to the potential destruction of their facilities and crops. Consumer safety and lab testing will also become significant concerns as cannabis grown in affected areas hits the market.

“When you start getting into how [it’s] going to affect product and manufacturing and production, this is the big variable,” Jon Vaught, CEO of Front Range Biosciences, a Colorado-based agricultural biotech company, told Cannabis Business Times. “It depends on where the wind’s blowing, what your situation is, where you’re located. You could be right next to a fire and have no issues at all, or you could be ten miles from it and have your building filled with smoke. It really just depends on the weather.”

Smoke can stress or even kill the plants—especially those in outdoor or greenhouse operations—and the residue left behind can pose problems for lab testing and consumer health.

“Smoke taint is the most obvious and the most apparent threat to cannabis as [it’s] exposed to these forest fires, and that’s something you’re going to be able to readily tell from just qualitatively examining the cannabis,” said Josh Wurzer, president of SC Labs, which has operations in both California and Oregon. “So, that’s certainly a concern—just ruining the flavor of the cannabis.”

Smoke from municipal fires that burn buildings and other man-made structures can be more harmful than forest fires that burn trees and foliage, Wurzer added. “[When] cannabis [is] growing indoors in city limits or near other buildings and the fire comes into the city like it is in Redding or like it did last year in Santa Rosa, you have concern that when you have buildings on fire, the smoke … has a lot more potential to contaminate the cannabis with toxic chemicals.”

Pressure-treated wood, for example, contains chemicals like chromium and arsenic, which can settle on cannabis crops in the soot and ash from fires.

Fire retardant can also pose threats to cannabis crops and their water sources, said Lydia Abernethy, director of cultivation science for Steep Hill Labs, which has a California office in Berkeley. “If your product has been exposed to [a fire retardant], you should not consume it or release it into the cannabis market. If Phos-Chek or other fire retardants were dropped on or near your property, it’s important to monitor your waterways to make sure there’s no persistent problem with chemicals in your water.”

Each lab uses its own validated testing methods, Vaught said, so it is difficult to predict if these chemicals would be detected during testing and how fire damage could impact state-mandated product testing overall. “It depends on how well-aware they are of it,” he said. “Are they testing for potential contaminants that might come in through the smoke, or do they recognize that they need to test for other contaminants, and that’s an additional contaminant that they wouldn’t normally test for? There are so many questions around the specifics of that that it’s hard to give a super clear answer on how it might affect it, but it certainly could, and it’ll have to be taken on a case-by-case basis.”

Testing labs are required by their particular state regulatory agencies to test for a specific list of contaminants. Anything outside of that list—which in California, for example, contains a very specific roster of cannabinoids, mycotoxins, pesticides and more—will not likely show up in laboratory test results.

Beginning on Jan. 1, 2019, California labs will be required to test for heavy metals in cannabis, including arsenic, Wurzer said, and the state labs currently test for other chemicals that could potentially be produced during municipal fires, such as benzine, but only in concentrates. California labs are also currently conducting required foreign material inspections, which would detect soot or ash from fire damage, Wurzer added.

“As far as I know, none of the labs have developed a test that is specialized for indicators of fire,” Wurzer said. “To test for other things, you have to develop and then validate a method for that testing, so … unless there’s a need for … the tests, chances that someone can do the test are pretty unlikely. So, all we have really at our disposal is looking at the test results [and being] on the lookout for those certain indicators—is there an elevated level of arsenic? Is there an elevated level of benzine?”

It also remains unclear whether contaminants from wildfires could cause false positives or false negatives in pesticide testing, Vaught said. “The likelihood that specific pesticide residues could show up and trigger a false positive [is] definitely a realistic possibility. … I think the likelihood of it would depend on what was actually burning.”

For example, if a forest of pine trees that has never been sprayed with pesticides burns, it is unlikely that smoke or soot from that blaze would cause false positives in cannabis pesticide testing, Vaught said. On the other hand, if a field of corn that has been heavily sprayed is burning, by-products and combustions of those pesticides could show up in the test results of nearby cannabis products.

The bigger issue, however, is contamination from these potentially toxic substances and how it might affect consumer safety, Vaught said. “Some of them can be extremely toxic, so getting large amounts of soot and combustion by-products on your plants or on your product would definitely be something you would want to avoid, whether it triggers a regulatory test failure or not. That would just be good manufacturing practice and putting out safe products for your consumers and minimizing your risk and potential liability should something go wrong.”

And even if cannabis affected by the fires is safe for sale into the market, it may not be desirable for consumption or even extraction, Wurzer added.

“Typically, heavy smoke or particulate exposure degrades the product quality to such a degree that most people won’t knowingly purchase it,” Abernethy agreed. “As fires continue to affect cultivators across the state, I’m sure we’ll see products (especially flower) fail regulatory testing—like filth and foreign materials testing due to the presence of ash, cinders, dirt and mold. If people are interested to determine if their product might fail regulatory testing, we encourage them to contact Steep Hill for pre-regulatory analysis. Don’t lose hope entirely—if your crop has been affected by fire exposure, there are a few remediation routes to making successful, market-appropriate products.”

If a product does fail testing, California has a remediation policy that allows cultivators two remediation attempts and additional re-tests, she said. Steep Hill warns growers against using chemical products to strip away smoke and ash particulates, however, as these can cause additional product quality and safety issues. “We strongly caution anyone from further contaminating product by stripping it with chemicals to try to wash off the smoke,” she said. “That’s not a sound way to go about remedying this problem.”

To avoid the possibility of ongoing testing failures and consumer safety issues, a cultivation facility needs to be cleaned on some level after being exposed to a wildfire, Vaught said, depending on the amount of damage—how much smoke and soot has been deposited. “It could be everything from a low-level of contamination and cleaning required, where you have to go in and just wipe down your walls and get rid of all your plants and clean out your hydroponic systems … or whatever … different components that could absorb soot and smoke, all the way to heavy contamination which requires pressure washing, replacing dry wall, replacing ceiling tiles—replacing anything that absorbs large amounts of contaminants.”

There are professional fire remediation companies that can be consulted, he added, and operators should not take this responsibility lightly. “As soon as you have something like this happen, … talk with your insurance adjuster, … talk with a local fire remediation company, … [and] get some experts on the scene so that they can help you quickly address the problem, as opposed to trying to say, ‘Well, maybe we don’t need to worry about it.’ It’s always better to err on the side of caution for something like this, and yes, it can cost a little more money, but in the long run, it protects you from creating a liability for your company with your consumers, which is never a good thing.”

Furthermore, there are the consumer-facing issues to consider. A cultivator’s testing lab should be able to have an open and transparent conversation about what it is doing in its business practice to account for the wildfires, Vaught said. “That’s what I would recommend, across the industry—more open dialogue about these important issues for not only for the industry, but for the consumers and the safety of consumers,” he said. “It’s so very critical, whether we’re talking about pesticides or combustion by-products that are toxic from forest fires, or potential food additives that may or may not be approved for human consumption—all of these different issues affect the whole industry.”

Top photo: The Carr Fire in Shasta County on July 27, 2018. Photo courtesy of the California Department of Forestry and Fire Protection.

Published at Sun, 13 Sep 2020 06:00:00 +0000

Third GOP Congressman Pledges To Vote For Marijuana Legalization Bill On House Floor This Month

Third GOP Congressman Pledges To Vote For Marijuana Legalization Bill On House Floor This Month

A third Republican congressman said he will be voting in favor of a marijuana legalization bill that the House is set to take up later this month.

Rep. Don Young (R-AK), cochair of the Congressional Cannabis Caucus, said in an interview with Alaska Public Media last week that he’s supportive of the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would federally legalize marijuana and promote social equity.

“It’s a big vote. And we’re going to pass that, I’m confident. What’ll happen with it afterward, I don’t know,” he said. “I’m one to believe that when people vote on something—as they did in the state of Alaska—we ought to recognize people’s will and follow through with it.”

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Published at Fri, 11 Sep 2020 16:00:15 +0000

Nebraska Supreme Court: Medical Cannabis Will Not Go Before Voters This November

Nebraska Supreme Court: Medical Cannabis Will Not Go Before Voters This November

Nebraskans for Medical Marijuana pulled off what many state cannabis legalization campaigns struggled with this year – collect the number of valid signatures needed to qualify for a ballot initiative in the middle of a pandemic.

Jared Moffat, who has worked on the campaign for more than a year through his role with the Marijuana Policy Project (MPP), knew there would be opposition to the measure. But he said he was shocked when he learned Thursday afternoon that the Nebraska Supreme Court had ruled that the ballot initiative violates the single subject rule as outlined in the state constitution.

After getting the green light from Nebraska Secretary of State Bob Evnen, who certified the initiative in August, and collecting nearly 200,000 signatures – well above the roughly 122,000 valid signatures needed to qualify for the initiative, Nebraskans will not be voting on medical cannabis legalization in November.  

Opponents had submitted similar arguments that the ballot language included more than one question, but Evnen disagreed and said the initiative met the legal requirements to go before voters. The state supreme court disagreed, and its decision is the final word.

“This is an outrageous and deeply flawed decision by a group of activist judges,” Matthew Schweich, deputy director of the MPP, said in a written statement. “This ruling means that sick and suffering medical marijuana patients, including veterans, will continue to be criminals in Nebraska when they try to live healthier lives. This ruling tramples on the constitutional rights of over 190,000 Nebraskans who signed the petition and deprives the voters of Nebraska of their opportunity to decide this issue at the ballot box.”

The ballot language, which would have amended the state constitution, would have legalized possession, consumption and the purchase of cannabis for individuals with serious medical conditions if recommended by a licensed physician or nurse practitioner, and granted access by also allowing private entities to cultivate, process, produce, test and sell medical cannabis products, among other details.

Terry Wagner, sheriff of Lancaster County, filed the objection to Evnen’s certification, according to the Supreme Court opinion, and the Supreme Court agreed with Wagner’s assessment, finding that as written, the language included more than one subject.    

“… the NMCCA’s (Nebraska Medical Cannabis Constitutional Amendment) secondary purpose is not naturally and necessarily connected to its general subject,” according to the Supreme Court opinion. “First, subsection (3) lacks any natural connection to subsections (1) and (2). While subsections (1) and (2) concern a personal constitutional right of patients with serious medical conditions to produce and use cannabis for themselves, subsection (3) concerns a constitutional right of private entities to grow and sell cannabis to others. This constitutional right to sell cannabis, and its accompanying expectation of profit, is a property right.”

Two justices dissented, including Justice Jonathan Papik, who wrote, “as the [Evnen] reasoned here, providing individuals authorized to use cannabis medicinally a means of access is a natural and necessary part of granting a right to use. … I am concerned that today’s decision has squeezed the concept of single subject … such that the people’s right to initiative has been diminished.”

In a written statement, Nebraska state Senators Anna Wishart and Adam Morfeld, co-chairs of Nebraskans for Medical Marijuana, said they were “deeply disappointed” by the ruling, and thanked their supporters.

“Do not despair — we are going back to the ballot and to the legislature. Senator Wishart will be back in January with legislation, and we need to focus our energy on moving the hearts and minds of the Nebraska Legislature.”

Moffat echoed that sentiment on Thursday.

“The fight is not over. By any means, nothing has changed the fact that we still believe a huge majority of Nebraskans support this issue,” Moffat said. “We pulled of a really impressive signature drive, and nothing can take that away. Looking ahead, obviously we have another legislative session coming up. … And then there’s 2022. There’s another election cycle. It’s a setback for sure, but we intend to keep pushing.”

Published at Fri, 11 Sep 2020 14:30:00 +0000

1933 Industries Signs Distribution Deal with CBD Plus to Carry Canna Hemp™ Products in over 120 Stores

1933 Industries Signs Distribution Deal with CBD Plus to Carry Canna Hemp™ Products in over 120 Stores

1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF), a vertically-integrated cannabis consumer packaged goods company with a diverse portfolio of consumer-driven brands, is pleased to announce that it has set up distribution of its Canna Hemp™ line of wellness products in conjunction with CBD Plus, the largest and most trusted supplier of CBD products across the United States.

The Company reports that its wholly-owned subsidiary, Infused MFG, signed a Master Services and Supply Agreement (“Agreement”), with MCV Enterprises LLC, an Oklahoma company doing business as CBD Plus and CBD Plus USA, (“CBD Plus”) for the marketing and sale of Canna Hemp™ products in CBD Plus corporate-owned and franchisee brick and mortar retail stores. The one-year Agreement includes a 45-day trial period, effective immediately.

CBD Plus is focused in the Midwest and Southern US, with over 120 locations and growing in Texas, Oklahoma, Kansas, Arkansas, Tennessee, Georgia, Florida, North Carolina, and Maryland. The partnership with CBD Plus is another important step for the Company as it builds the Canna Hemp™ line as a leading brand in the US CBD market. According to the latest outlook by the Brightfield Group, hemp-based CBD US sales will reach $12.4 billion by 2023 and $16.8 billion by 2025.

Mr. Eugene Ruiz, President of 1933 Industries said, “CBD Plus is a well-respected source of safe, legal and affordable CBD products that meet the highest standards in the industry. We are pleased that our Canna Hemp™ line meets and exceeds those high standards. We look forward to collaborating with CBD Plus to increase awareness and education regarding the benefits and value of CBD in our everyday lives.”

“CBD Plus and its family of franchisees is proud to announce its relationship with 1933 industries”, said Mr. Charles V. Reynolds III, CEO of CBD Plus. “We look forward to introducing Canna Hemp™ products to our entire customer base nationwide. Quality Assurance and Cannabis Education have always been cornerstones of the CBD Plus USA mission, and we are excited to partner with a brand such as Canna Hemp™ that shares those values. We remain committed to helping educate the public on all of the benefits and uses of quality CBD, and we believe this relationship aligns with our goals.”

CBD Plus has been committed to improving the lives of communities since 2017, and has now grown into a trusted source of CBD products in the US. Founded on the cornerstone of empowering customers to live their best lives, CBD Plus has become an authoritative advocate for CBD, and a dedicated educator of the benefits of CBD oil. CBD Plus offers a variety of self-care and lifestyle products with CBD that exceeds the industry standard of quality, producing carefully extracted, pesticide-free, and non-GMO products.

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. The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC.

About Alternative Medicine Association
AMA is a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis-based products and manufactures third-party brands. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to offer medical patients and recreational users alike a cannabis experience that’s exceptional, potent, and consistent in quality.

About Canna Hemp™
With an extensive product line that includes topicals, creams, vapes, elixirs, capsules, dabs, lip balms and pre and post workout recovery sports products, 1933 Industries’ proprietary Canna Hemp™ brand utilizes the power of hemp and CBD to bring natural wellness. The Company’s flagship products, the Canna Hemp™ Relief Cream and Canna Hemp X™ Recovery Cream are recognized as best topicals in the market.  Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance. All products are triple and third-party tested for safety with test results imbedded via QR codes for traceability.

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.

Cision

View original content:http://www.prnewswire.com/news-releases/1933-industries-signs-distribution-deal-with-cbd-plus-to-carry-canna-hemp-products-in-over-120-stores-301128120.html

SOURCE 1933 Industries Inc.

Published at Fri, 11 Sep 2020 13:00:37 +0000

Illinois Lawsuit Lashes Out at ‘Politically Connected’ Licensing Process

Illinois Lawsuit Lashes Out at ‘Politically Connected’ Licensing Process

Nebraskans for Medical Marijuana pulled off what many state cannabis legalization campaigns struggled with this year – collect the number of valid signatures needed to qualify for a ballot initiative in the middle of a pandemic.

Jared Moffat, who has worked on the campaign for more than a year through his role with the Marijuana Policy Project (MPP), knew there would be opposition to the measure. But he said he was shocked when he learned Thursday afternoon that the Nebraska Supreme Court had ruled that the ballot initiative violates the single subject rule as outlined in the state constitution.

After getting the green light from Nebraska Secretary of State Bob Evnen, who certified the initiative in August, and collecting nearly 200,000 signatures – well above the roughly 122,000 valid signatures needed to qualify for the initiative, Nebraskans will not be voting on medical cannabis legalization in November.  

Opponents had submitted similar arguments that the ballot language included more than one question, but Evnen disagreed and said the initiative met the legal requirements to go before voters. The state supreme court disagreed, and its decision is the final word.

“This is an outrageous and deeply flawed decision by a group of activist judges,” Matthew Schweich, deputy director of the MPP, said in a written statement. “This ruling means that sick and suffering medical marijuana patients, including veterans, will continue to be criminals in Nebraska when they try to live healthier lives. This ruling tramples on the constitutional rights of over 190,000 Nebraskans who signed the petition and deprives the voters of Nebraska of their opportunity to decide this issue at the ballot box.”

The ballot language, which would have amended the state constitution, would have legalized possession, consumption and the purchase of cannabis for individuals with serious medical conditions if recommended by a licensed physician or nurse practitioner, and granted access by also allowing private entities to cultivate, process, produce, test and sell medical cannabis products, among other details.

Terry Wagner, sheriff of Lancaster County, filed the objection to Evnen’s certification, according to the Supreme Court opinion, and the Supreme Court agreed with Wagner’s assessment, finding that as written, the language included more than one subject.    

“… the NMCCA’s (Nebraska Medical Cannabis Constitutional Amendment) secondary purpose is not naturally and necessarily connected to its general subject,” according to the Supreme Court opinion. “First, subsection (3) lacks any natural connection to subsections (1) and (2). While subsections (1) and (2) concern a personal constitutional right of patients with serious medical conditions to produce and use cannabis for themselves, subsection (3) concerns a constitutional right of private entities to grow and sell cannabis to others. This constitutional right to sell cannabis, and its accompanying expectation of profit, is a property right.”

Two justices dissented, including Justice Jonathan Papik, who wrote, “as the [Evnen] reasoned here, providing individuals authorized to use cannabis medicinally a means of access is a natural and necessary part of granting a right to use. … I am concerned that today’s decision has squeezed the concept of single subject … such that the people’s right to initiative has been diminished.”

In a written statement, Nebraska state Senators Anna Wishart and Adam Morfeld, co-chairs of Nebraskans for Medical Marijuana, said they were “deeply disappointed” by the ruling, and thanked their supporters.

“Do not despair — we are going back to the ballot and to the legislature. Senator Wishart will be back in January with legislation, and we need to focus our energy on moving the hearts and minds of the Nebraska Legislature.”

Moffat echoed that sentiment on Thursday.

“The fight is not over. By any means, nothing has changed the fact that we still believe a huge majority of Nebraskans support this issue,” Moffat said. “We pulled of a really impressive signature drive, and nothing can take that away. Looking ahead, obviously we have another legislative session coming up. … And then there’s 2022. There’s another election cycle. It’s a setback for sure, but we intend to keep pushing.”

Published at Fri, 11 Sep 2020 17:39:00 +0000

Wildfires Tear Across Western U.S. as Cannabis Growers Prepare and Respond: Week in Review

Wildfires Tear Across Western U.S. as Cannabis Growers Prepare and Respond: Week in Review

Nebraskans for Medical Marijuana pulled off what many state cannabis legalization campaigns struggled with this year – collect the number of valid signatures needed to qualify for a ballot initiative in the middle of a pandemic.

Jared Moffat, who has worked on the campaign for more than a year through his role with the Marijuana Policy Project (MPP), knew there would be opposition to the measure. But he said he was shocked when he learned Thursday afternoon that the Nebraska Supreme Court had ruled that the ballot initiative violates the single subject rule as outlined in the state constitution.

After getting the green light from Nebraska Secretary of State Bob Evnen, who certified the initiative in August, and collecting nearly 200,000 signatures – well above the roughly 122,000 valid signatures needed to qualify for the initiative, Nebraskans will not be voting on medical cannabis legalization in November.  

Opponents had submitted similar arguments that the ballot language included more than one question, but Evnen disagreed and said the initiative met the legal requirements to go before voters. The state supreme court disagreed, and its decision is the final word.

“This is an outrageous and deeply flawed decision by a group of activist judges,” Matthew Schweich, deputy director of the MPP, said in a written statement. “This ruling means that sick and suffering medical marijuana patients, including veterans, will continue to be criminals in Nebraska when they try to live healthier lives. This ruling tramples on the constitutional rights of over 190,000 Nebraskans who signed the petition and deprives the voters of Nebraska of their opportunity to decide this issue at the ballot box.”

The ballot language, which would have amended the state constitution, would have legalized possession, consumption and the purchase of cannabis for individuals with serious medical conditions if recommended by a licensed physician or nurse practitioner, and granted access by also allowing private entities to cultivate, process, produce, test and sell medical cannabis products, among other details.

Terry Wagner, sheriff of Lancaster County, filed the objection to Evnen’s certification, according to the Supreme Court opinion, and the Supreme Court agreed with Wagner’s assessment, finding that as written, the language included more than one subject.    

“… the NMCCA’s (Nebraska Medical Cannabis Constitutional Amendment) secondary purpose is not naturally and necessarily connected to its general subject,” according to the Supreme Court opinion. “First, subsection (3) lacks any natural connection to subsections (1) and (2). While subsections (1) and (2) concern a personal constitutional right of patients with serious medical conditions to produce and use cannabis for themselves, subsection (3) concerns a constitutional right of private entities to grow and sell cannabis to others. This constitutional right to sell cannabis, and its accompanying expectation of profit, is a property right.”

Two justices dissented, including Justice Jonathan Papik, who wrote, “as the [Evnen] reasoned here, providing individuals authorized to use cannabis medicinally a means of access is a natural and necessary part of granting a right to use. … I am concerned that today’s decision has squeezed the concept of single subject … such that the people’s right to initiative has been diminished.”

In a written statement, Nebraska state Senators Anna Wishart and Adam Morfeld, co-chairs of Nebraskans for Medical Marijuana, said they were “deeply disappointed” by the ruling, and thanked their supporters.

“Do not despair — we are going back to the ballot and to the legislature. Senator Wishart will be back in January with legislation, and we need to focus our energy on moving the hearts and minds of the Nebraska Legislature.”

Moffat echoed that sentiment on Thursday.

“The fight is not over. By any means, nothing has changed the fact that we still believe a huge majority of Nebraskans support this issue,” Moffat said. “We pulled of a really impressive signature drive, and nothing can take that away. Looking ahead, obviously we have another legislative session coming up. … And then there’s 2022. There’s another election cycle. It’s a setback for sure, but we intend to keep pushing.”

Published at Sat, 12 Sep 2020 10:30:00 +0000

These Marijuana Stocks May Be Overdue For Bullish Sentiment

These Marijuana Stocks May Be Overdue For Bullish Sentiment




These Marijuana Stocks May Be Overdue For Bullish Sentiment | Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™





















Published at Fri, 11 Sep 2020 16:46:07 +0000

Why CBD Stocks Offer Investors COVID Shelter

Why CBD Stocks Offer Investors COVID Shelter

Investors can’t escape “health” related headlines these days. Most concern the perils to our physical health as a result of the COVID-19 pandemic.

Many headlines, however, are focused on our financial health. In particular, the question now asked is where can investors find shelter in ultra-volatile markets that have cratered from their recent highs?

While cannabidiol (CBD) is not a treatment for the novel coronavirus, CBD stocks could be a potent “medicine” to help stop the bleeding in investor portfolios.

There are several reasons for viewing CBD commerce as being (relatively) sheltered from the economic repercussions of COVID-19. These relate to both the cannabis sector in general, and the CBD sub-sector in particular.
 

  1. As an emerging industry, cannabis has virtually zero international trade being disrupted by COVID-19. Rather than facing steep losses of existing revenue streams, the cannabis industry merely faces (COVID-related) delays in opening up these international markets.
  2. Similarly, the supply chain for the cannabis industry has a very small international trade component. Cannabis (and CBD) operations have minimal vulnerability to supply chain disruptions.
  3. As both a health supplement and medicine, CBD is relatively immune to the depressionary economic impact of the COVID-19 pandemic. Health-related spending is one of the last areas where people make budget cuts in an economic downturn.
  4. The intense desire of many/most people to strengthen and fortify their health during the coronavirus pandemic should stimulate CBD demand even further.

International trade has been severely impacted by the COVID-19 pandemic. In an era of globalization, this has a significant (if not severe) impact on almost every sector of the economy. The emerging cannabis industry is one of a very small number of exceptions.

Here, delays in opening up international markets by (still) cannabis-phobic governments now works in favor of the cannabis industry. Simply, the cannabis industry is losing very little revenue as a result of COVID-19 disruptions to international trade. The cannabis (and CBD) market is still a domestic market.

Cannabis (and CBD) operations are also almost entirely domestic operations. The agriculturally-based cannabis industry has a relatively simple supply chain – and nearly all of these inputs can be supplied domestically. No COVID-19 disruptions here either.

Then there is the allure of CBD products themselves, even during a full-blown economic depression. CBD products – and the markets for those products – have surged into prominence for two simple and closely-related reasons.
 

a)  Western consumers have become increasingly health-focused (even prior to COVID-19)
b)  CBD products – used either medicinally or as a health supplement – are relatively inexpensive

One of the most-obvious indications of the increasing focus on health by consumers is the soaring spending on dietary supplements aimed at improving health.
 

Dietary Supplement Use Reaches All Time High

…More than three quarters of Americans are taking dietary supplements each year—a crystal clear trend that serves as an indicator of the vital role supplementation plays in their overall health and wellness regimens,” said Nancy Weindruch, vice president, communications, Council for Responsible Nutrition (CRN).

Within this soaring market for health supplements, CBD products are now leading the way, as indicated in this 2019 article.
 

A new market report shows CBD sales surging in the U.S. herbal supplement category. Up from almost total obscurity, CBD leapt into the No. 12 spot among best-selling herbal dietary supplements in 2017 with a 303 percent growth compared to the year prior. And between 2017 and 2018, CBD outdid even those numbers, catapulting itself to the top spot on the list of best-selling supplements and dethroning turmeric from the No. 1 rank it held for five consecutive years. The report, in other words, shows CBD sales are soaring and disrupting long-standing trends in the $8.8 billion herbal supplement industry.

Boosting the appeal of CBD products is that they are relatively inexpensive versus many dietary supplements. CBD-rich cannabis (~20% CBD content) can be commercially cultivated at less than $1 per gram. Pure CBD can be produced for approximately $5 per gram.

However, it wouldn’t matter how economical CBD is if it wasn’t also seen by consumers as offering a multitude of benefits.
 

7 Benefits and Uses of CBD Oil (Plus Side Effects)

Cannabidiol is a popular natural remedy used for many common ailments.

Better known as CBD, it is one of over 100 chemical compounds known as cannabinoids found in the cannabis or marijuana plant, Cannabis sativa (1Trusted Source).

Tetrahydrocannabinol (THC) is the main psychoactive cannabinoid found in cannabis, and causes the sensation of getting “high” that’s often associated with marijuana. However, unlike THC, CBD is not psychoactive.

This quality makes CBD an appealing option for those who are looking for relief from pain and other symptoms without the mind-altering effects of marijuana or certain pharmaceutical drugs.

CBD oil is made by extracting CBD from the cannabis plant, then diluting it with a carrier oil like coconut or hemp seed oil.

It’s gaining momentum in the health and wellness world, with some scientific studies confirming it may ease symptoms of ailments like chronic pain and anxiety.

Here are seven health benefits of CBD oil that are backed by scientific evidence…

That was the picture of the market for CBD products pre-COVID. In a world now obsessed with health (and becoming more resistant to infection), how/why can we expect demand for CBD products to grow even faster?

This March 23, 2020 article from Chiropractic Economics lays out some details.
 

The four reasons why COVID-conscious consumers may accelerate their purchases of CBD products even further?
 

i)   Increasing natural killer cells
ii)   Supporting a healthy inflammatory response
iii)   Maintaining a healthy gut microbia
iv)   Alleviating stress/anxiety

CBD doesn’t cure COVID-19.

However, as consumers gravitate toward CBD products as a health-boosting tool to fight this pandemic, CBD stocks can become an effective investor antidote to the general collapse in equities.

Published at Wed, 08 Apr 2020 18:12:27 +0000