Category Archives: Medical Marijuana

U.S. House Plans September Vote on the MORE Act, Massachusetts Regulators Allow Companies to Retest and Sell Quarantined Vaping Products: Week in Review

U.S. House Plans September Vote on the MORE Act, Massachusetts Regulators Allow Companies to Retest and Sell Quarantined Vaping Products: Week in Review

Mission dispensary celebrated the grand reopening of its Chicago store on July 31, two months after it was ransacked by dozens of people in just one of several incidents across the country of looters targeting cannabis businesses amid nationwide protests over the police killing of George Floyd.

RELATED: UPDATED: Cannabis Businesses Targeted in Looting and Robberies

Kris Krane, president and co-founder of Mission’s parent company 4Front Ventures, told Cannabis Business Times in June that it appeared to be a planned attack, as security footage captured several cars pulling up to the store at one time. Thirty to 40 people used crowbars and baseball bats to smash windows and doors to break into the South Chicago dispensary, Krane said.

In a follow-up interview with Cannabis Business Times, Krane says there weren’t many surprises as they worked to repair damages with contractors and construction crews, replace lost inventory and reopen the medical and adult-use store. But the process took time, especially replacing custom-built components like the security doors. They also made upgrades throughout, he says, adding “multiple layers of security.”

Krane also commended city and state officials for being responsive during the inspection process, and inspectors for being clear and straightforward with recommendations.

“We work in a lot of states, and trying to go through an inspection process in many states is a challenging process,” Krane says. (Mission operates stores in Massachusetts, Michigan, Arizona, Pennsylvania and Maryland, as well as Illinois.) “It takes forever to get somebody out there, inspectors come through and can be adversarial in some cases, and getting responses from state can be challenging in some cases. But [in Chicago and Illinois,] the city and state were a pleasure to work with. Not to say they rubber stamped us, but they were really responsive and got back to us quickly.”

Once known as the “South Shore” store, Mission unveiled a name change during its reopening celebration, as well, to reflect more accurately its location in the South Chicago neighborhood.  

“We were listening to the community. We had people who took offense to [the South Shore name] and it wasn’t meant to be offensive,” Krane says. “We wanted to show we are committed to the South Chicago community and to this commercial corridor on Commercial Avenue.”

This photograph taken during the clean up efforts at Mission dispensary in Chicago has been enlarged and will be prominently displayed in the South Chicago store. Photo courtesy of Mission. 

Mission continued to pay “a substantial portion” of its nearly 50 employees’ salaries and pay while the store was closed for repairs, Krane says.

“We thought it was really important to make sure that these folks stayed paid, particularly with everything going on right now with unemployment and with coronavirus … and the fact they were put through a difficult time with the break-in itself,” Krane says, adding that only one staff member left but for unrelated reasons. “We wanted folks back. … Some of them would have been put in pretty dire hardship. Even though this was not something covered by insurance, so it was a financial hit for the company, we felt it was the right thing to do to make sure these folks continued to get paid during this down time. And thankfully, we were rewarded by not losing any employees.”

Local and state elected officials joined the celebration July 31, and Krane says the CEO of a nearby dispensary sent him a note to wish him well on the reopening.

“It was really heartwarming to see the city and the state treating us as an important member of the business community and as an important element of the rebuilding of the community that has been so devastated by break-ins and looting,” Krane says, adding that some businesses, especially locally owned companies, are still boarded up and have not reopened. “We’ve received well wishes from folks throughout the industry when the store was hit. We had offers from folks to make sure we had product available when we opened. Some even offered [product] on consignment or discounted rates to make sure we’re back up and running.”

Customers showed up on opening day, too. Although Mission has been operating primarily with an online-only ordering system during the coronavirus pandemic, the company allowed customers to purchase products in the store over the weekend. Customers were required to wear a mask, and the Mission team monitored lines to be sure people were adhering to social distancing policies. At times, the wait was about an hour the first day of sales.

“By and large it was pretty festive. A lot of people came up and said, ‘I’m glad you’re back,’” Krane says. “There were a lot of people who hadn’t been served for a while, and they may not be familiar with our online menu, so we wanted to be able to serve everybody we could [opening weekend]. …We also had a taco truck set up and gave out free tacos.”

Krane says although supply continues to be a challenge in Illinois, especially for operations that are not vertically integrated, he’s hopeful that as cultivators scale up and more dispensaries come online, more progress will be made. In July, the state recorded another record month for sales, with $61 million in the adult-use market alone, up 28% from the June’s $47.6 million.

“The [sales] numbers so far have been terrific,” Krane says. “We think that legalization has proven itself to be successful. We’re starting to see the first evidence that legal cannabis may be somewhat recession proof.”

Published at Sat, 08 Aug 2020 12:30:00 +0000

Canada Will Let Terminally Ill Patients Use Psychedelic Mushrooms For End-Of-Life Care

Canada Will Let Terminally Ill Patients Use Psychedelic Mushrooms For End-Of-Life Care

Four cancer patients in end-of-life care will be become the first people in decades to legally possess and consume psilocybin mushrooms in Canada after a landmark decision Tuesday by the country’s minister of health.

The patients petitioned Health Minister Patty Hajdu back in April for exemptions from the country’s laws against psilocybin in order to use psychedelic mushrooms as part of psychotherapy treatment. On Tuesday afternoon, Hajdu officially granted the patients’ request, the nonprofit TheraPsil, which assisted with the application, announced.

The approvals mark the first publicly-known individuals to receive a legal exemption from the Canadian Drugs and Substances Act to access psychedelic therapy, Therapsil said, and the first medical patients to legally use psilocybin since the compound became illegal in Canada in 1974.

“This is the positive result that is possible when good people show genuine compassion. I’m so grateful that I can move forward with the next step of healing,” one of the patients, Thomas Hartle, said in a statement Tuesday.

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Published at Wed, 05 Aug 2020 17:35:11 +0000

Five Cannabis Stocks for the Win (CURLF, GTBIF, TCNNF, SGMD, CRLBF)

Five Cannabis Stocks for the Win (CURLF, GTBIF, TCNNF, SGMD, CRLBF)

It’s not a mystery where to find strong growth. As the bull market rages on, driven by extreme monetary and fiscal policy support amid historic challenges, the only way for investors to truly lose the game is to not play. Just about anything else has been working.

But the chapter ahead will likely take a bit more nuance. The division between the pandemic plays and the rest of the market is obvious. And money managers diversifying between the two are doing well. But it’s not easy to find opportunities that have a viable long-term growth thesis but are still trading at a strong value relative to the market.

One area that could become of increasing interest is in the cannabis space, where the long-term growth outlook is tremendous, but flows have yet to surge into the space. Most cannabis plays are still trading at 1-2x sales despite forward topline growth forecasts above 20% over the coming four quarters.

That’s a disposition that is increasingly rare.

With that in mind, we take a look at five cannabis plays that are actively traded and continue to post strong performance data while making significant investments at a strong ROI, including: Curaleaf Holdings Inc (OTCMKTS:CURLF), Green Thumb Industries Inc (OTCMKTS:GTBIF), Trulieve Cannabis Corp (OTCMKTS:TCNNF), Sugarmade Inc (OTCMKTS:SGMD), and Cresco Labs Inc (OTCMKTS:CRLBF)

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the launch of Curaleaf Sublingual Tablets in Florida. These cube-shaped, berry-flavored bites will provide the state’s medical patients with a discreet, sugar-free yet fruity alternative form of medication.

According to the release, Curaleaf’s new Sublingual Tablets, which will be in 30-piece jars, contain 5mg of high-quality cannabis oil per piece, which allows patients to manage their treatment plan with confidence and ease. Each bite, which is made to be ingested orally or sublingually, is translucent in color and features a refreshing “Arctic Berry” flavor. The new product will be sold at all of the Company’s 28 operating dispensaries in Florida with a phased roll-out between August 8th – August 20th. Limited quantities will be released to pre-existing loyalty patients beginning tomorrow, July 30th.

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.’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.

Curaleaf Holdings Inc (OTCMKTS:CURLF) also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

Green Thumb Industries Inc (OTCMKTS:GTBIF) recently announced that it opened Essence South Durango, on June 27. This has been one of the fastest growing MSO’s in the wider cannabis space.

According to the release, this is Green Thumb’s fifth Essence store in the Las Vegas area and 48th retail location in the nation. Profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry.

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

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

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

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of its latest storefront: Tarpon Springs will be home to the Company’s 53rd dispensary in the state of Florida and 55th nationwide.

According to the release, situated next to Lake Tarpon, the dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis throughout the state. It also joins the Company’s 52 other Florida dispensaries, including those in nearby New Port Richey, Clearwater, and Tampa.

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

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

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

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

Sugarmade Inc (OTCMKTS:SGMD) is in the process of expanding into the LA area for its BudCars cannabis delivery business. This is likely to be a strong source of new strategic growth for a company that has already been posting sequential monthly growth above 30% on the topline for several consecutive months after making its flagship investment in BudCars.

At this point, based on recent disclosures from the company, we have a clear sense that, not only is the first LA location on track and simply awaiting some factors no doubt slowed by the pandemic – city council isn’t exactly on vacation right now. Crisis mode is the standard setting for most administrative affairs in local government around the country right now. However, the other key piece here is that the second LA BudCars location is ahead of schedule. That’s perhaps even more important here.

Sugarmade Inc (OTCMKTS:SGMD) also recently issued a mid-month performance update for the month of July, which was on pace to set multiple new Company performance records at the time for sales, gross profits, and total customer orders.

According to the release, as of July 14, the Company is now on pace to meet or exceed its target of $650,000 in total sales in July, with well over 5,000 individual customer orders likely this month, suggesting that sequential month-over-month topline growth will be at or above the Company’s target 30% level.

“Our BudCars Sacramento hub continues to demonstrate accelerating growth that suggests we still haven’t really found the ceiling here in terms of period-over-period upside potential,” commented Jimmy Chan, CEO of Sugarmade. “Ultimately, this is gratifying to see because we have taken a unique approach to retail cannabis product distribution.”

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.

Cresco Labs Inc (OTCMKTS:CRLBF) just announced additional actions in board refreshment and corporate governance to further strengthen its leadership in the cannabis industry, including its move to appoint Carol Vallone.

According to the release, Cresco has appointed Carol Vallone to its board of directors, effective immediately. Ms. Vallone is a well-known business leader, former CEO, and corporate board director, with a strong track record in launching, scaling, and managing global companies… In the past, Ms. Vallone served as President and Chief Executive Officer of leading E-learning companies including WebCT Inc., where she grew the online learning company to cover almost two thousand institutions in seventy countries. She has also served on multiple boards at leading non-profit healthcare, public financial services, and e-commerce organizations.

CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.

Cresco Labs Inc (OTCMKTS:CRLBF) operates a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Tue, 04 Aug 2020 05:33:19 +0000

Weed Edibles Have Sold Really Well During The Pandemic

Weed Edibles Have Sold Really Well During The Pandemic

The communal experience of cannabis, something that has always been closely linked to joints and vapes, has now been put on an indefinite pause. Edibles to the rescue!

Predictions about marijuana use during the pandemic abounded. Once businesses and buildings started to close, different states declared that cannabis is an essential business. People rightly assumed that times of stress are great times to get high, whether consumers were seasoned cannabis users or not.

Opinions varied when discussing inhaled cannabis and its impact on the pandemic. While some people claimed that joints would be discarded due to the lung irritations they could produce, others said that vapes would be making a comeback, even if they struggled throughout 2019 with a mysterious lung illness.

“As restrictions are lifted, we expect a pent-up demand for cannabis products that can be conveniently used in conjunction with outdoor activities,” Tom Brooksher, CEO of Clear Cannabis, told Forbes.

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Published at Fri, 31 Jul 2020 16:39:02 +0000

U.S. House Approves Federal Protections for State-Legal Cannabis Businesses, Maine Expects Adult-Use Sales to Launch This Year: Week in Review

U.S. House Approves Federal Protections for State-Legal Cannabis Businesses, Maine Expects Adult-Use Sales to Launch This Year: Week in Review

With Maine’s first adult-use cannabis cultivators, manufacturers and testing labs expected to open this fall, the Office of Marijuana Policy (OMP) anticipates that adult-use sales will launch by the end of the year, according to the Portland Press Herald.

The OMP delayed its planned June launch due to the COVID-19 pandemic, but now the office’s director, Erik Gundersen, says that licensing the supply chain will give the state’s adult-use industry time to grow, manufacture and test products for Maine’s first recreational dispensaries, the news outlet reported.

Gundersen expects the first adult-use cannabis sales taxes to roll in sometime in the second quarter, which ends in December, according to the Portland Press Herald, and the delayed market launch means the state will likely fall short of the projected $84 million in retail sales during fiscal year 2021.

However, the volume of license applications indicate that the state will reach the predicted $118 million in adult-use sales in fiscal year 2022, the first full year of operations, the news outlet reported.

As of July 28, the OMP had received 342 adult-use cannabis business applications, with 27 now in the final phase of licensing, according to the Portland Press Herald. Of the remaining applications, 151 have a conditional state license and are awaiting local approval, and 164 are still awaiting conditional approval from the state, the news outlet reported.

The state will not issue final adult-use dispensary licenses until a testing lab is operational, and according to the Portland Press Herald, four labs are considering entering the market, although only two are close to obtaining all the required permits to begin operations.

Published at Sat, 01 Aug 2020 12:00:00 +0000

Pot Stocks Set for Biden Boost? (GRWG, CURLF, MCTC, TLRY)

Pot Stocks Set for Biden Boost? (GRWG, CURLF, MCTC, TLRY)

The drumbeat to legalize cannabis is getting louder and louder in the US. Joe Biden is, by all accounts, starting to run away with the presidential takeover, relegating Mr. Trump to the history books as a rare one-term president, and potentially via a decisive landslide. Among other things, such an election result will suggest the incoming administration will have a mandate on certain core issues, one of which, surprisingly, seems to be cannabis legalization, or so say the smart folks at CIBC.

We should note that this is also speculation driven by polling and betting odds that show a strong likelihood that the democrats will take the Senate as well as the White House, while holding onto the House of Representatives, when they sweep through town in November.

Right now, betting site Predictit.org is showing Biden with a 63-40 price edge to win, and Democrats overall with a 62-39 edge in the “Who will control the Senate after 2020?” market.

Furthermore, because of the virus, the vote is likely to actually take place well ahead of November given the massive numbers expected to mail in their ballots this year to avoid crowded polling stations as possible transmission hot spots – and your typical mail-in vote is often penciled in weeks ahead of the official election day. In other words, if Trump is going to mount a comeback, he had better get moving because he has a lot of ground to make up, and only a matter of weeks in which to do it.

All of that takes us back to CIBC’s analyst projection out on Monday: if Biden wins, and the Dems control both houses of Congress, then expect the US to legalize weed for recreational use nationwide sometime in 2021. This makes perfect sense because it ties into what Biden will face as a critical issue in year one of his presidency: the specter of state bankruptcies across the country following the horrors of our collective battle with the virus. Legal weed reduces the burden of enforcement and creates a major tailwind in tax receipts. In other words, people will toke it up either way. But legal weed has a massive impact on state fiscal health.

What does that really mean?

It means that it’s time to get excited about Pot Stocks! With that in mind, here are a few interesting names in the space: GrowGeneration Corp (OTCMKTS:GRWG), Curaleaf Holdings Inc (OTCMKTS:CURLF), MCTC Holdings Inc (OTCMKTS:MCTC), and Tilray Inc (NASDAQ:TLRY).

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. GrowGen also operates an online superstore for cultivators, located at https://growgen.pro/.

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 the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.

According to the company’s release, the Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.

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.

GrowGeneration Corp (OTCMKTS:GRWG) generated sales of $33M, 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 29.9% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. CURLF is a major vertically integrated MSO cannabis operator with a strong presence that is expanding to 23 US 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.

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced that it closed its milestone acquisition of GR Companies, Inc., the largest private vertically-integrated multi-state operator in the United States, on July 23, 2020.

According to the release, with completion of the acquisition of Grassroots, Curaleaf is the world’s largest cannabis company by revenue and the most diversified vertically integrated cannabis company in the United States, the world’s largest cannabis market. The transaction expands Curaleaf’s presence from 18 to 23 states, with the combined company having affiliated operations spanning over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites with 1.6 million square feet of current cultivation capacity. Curaleaf’s expanded geographic dispensary presence now offers access to medical or adult use Cannabis to more than 192 million people, or roughly two-thirds of the United States population.

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

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $129.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 177%, 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 ($251M against $177.1M).

Cannabis Global, Inc. (OTCMKTS:MCTC), currently still trading as MCTC Holdings (OTCMKTS:MCTC), is an R&D play in the CBD and cannabis markets. In a very interesting step, the company just moved into the cannabis delivery-based dispensary retail business through a release that dropped last week. In the release, officially, the company announced the closing of a definitive agreement to “enter the fast-growing California cannabis delivery market.”

According to the release, Whisper Weed, Inc. and Cannabis Global have created a new California Corporation to be named CGI Whisper W, Inc., which will provide management services for the delivery entity. CGI Whisper W, Inc, will receive 51% of the profits from the new entity, which will be recognized as income by Cannabis Global, Inc.

“The delivery sector is the hottest area of the California cannabis business and we are very pleased to have a seat at the table,” commented Arman Tabatabaei. “We not only will be able to grow our revenue base relative to direct delivery, but we also see Whisper Weed as a perfect platform to launch our infusion technologies in the regulated marketplace.  With the deal closing, we are already in the process of adding other delivery platforms and other businesses to our overall portfolio.”

Cannabis Global, Inc. (OTCMKTS:MCTC) views this agreement as an important step toward the verticalization of its IP-driven focus. Many of the technologies developed for CBD and non-THC marketplaces can be directly applied to the regulated California cannabis marketplace, including the Company’s newly developed tetrahydrocannabivarin (THC-V) and Cannabinol( CBN) delivery technologies.

Shares of the stock have been running in recent days, up as much as 60% in the past five trading sessions.

MCTC Holdings Inc (OTCMKTS:MCTC) had no reported sales in its last quarterly financial data. But it appears to be closing in on commercial-stage operational gains for shareholders and has a strong IP edge in the industry. In addition, with this agreement, the company should now be in a position to start booking topline growth in the cannabis delivery-based dispensary retail business.

Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. 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.

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.

Tilray Inc (NASDAQ:TLRY) just announced that it will report results for the second quarter ended June 30, 2020 on Monday, August 10, 2020 after market close. According to the release, the Company will host a conference call to discuss these results in the afternoon (at 5:00 p.m. ET) on that day.

The report should be important for the space in general because TLRY is known for being somewhat overhyped relative to its actual operations, and the market will be anxious to understand how this archetypal “pot stock bubble victim” has managed to evolve in terms of the long-term prospects for servicing its major liabilities.

TLRY shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume.

Tilray Inc (NASDAQ:TLRY) managed to rope in revenues totaling $52.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 126.2%, 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 ($174M against $171.4M).

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Tue, 28 Jul 2020 04:48:22 +0000

Why CLKA Embodies a New Theme in this Bull Market

Why CLKA Embodies a New Theme in this Bull Market

Uncomfortable facts are still facts. You don’t necessarily want to think about them, but they are still true. And, to be a responsible investor, you have to look at the world with a computational self-honesty.

A good example of this is the number of millionaires and billionaires in the world. Even as we wallow in a pandemic recession, the number of super-rich people grows and grows.

According to recent economic research, the rich are likely to get much richer from the current turmoil because balance sheets are everything: If you don’t have enough capital to maintain your capital structure for any organization, you may have to let it go to someone who has the cash to see it through.

The simple example is to imagine a mom-and-pop breakfast restaurant up the street. They may have to shut their doors and sell the business to Denny’s or IHOP in the months ahead because they don’t have deep enough pockets to survive for enough months with basically no revenues during the pandemic crisis. As such, the lease, the kitchen equipment, the location, and its relationship with the community – all of that is still a business. But it just becomes a new Denny’s because Denny’s has the deep pockets necessary to make it to the other side of this virus.

Take that as a metaphorical map of what’s happening right now. It’s happening in everything. It happened in the stock market rapidly in March. Stocks fell so fast that overleveraged, shallow-pocketed investors were forced to dump positions into the hands of richer people at distressed prices, who are now much, much richer for that transition. It’s not an everyone-hurts cyclical downturn. It’s a wealth transfer, plain and simple.

It’s not fun to think about it that way. But as investors, we need to examine the bloodless verdict of the marketplace and act accordingly. In this case, there are a number of rich-get-richer trades to be had – with big tech being the most obvious, and most played out. But we want to focus on a relatively new angle on this dynamic that may be relatively underappreciated: the rare custom luxury goods by-appointment consumer market.

And the stock that may most perfectly capture this theme right now is small-cap Clikia Corp (OTCMKTS:CLKA).

The Model… and the Money

Clikia Corp (OTCMKTS:CLKA) engages in the sale of extremely high-end watches and jewelry, with plans to expand into a number of other product categories, potentially including rare custom luxury cars, clothing, electronics, and possibly even real estate. The model is the key point to understand. It is based on access to a network of suppliers and buyers. That amounts to “being in with the super-rich”.

The company’s founder and CEO, Anil Idnani, has established those relationships and brings them to the table in the form off Maison Luxe, which is now a wholly-owned subsidiary of Clikia.

The establishment of this model has instantly turned around the fortunes of this left-for-dead stock, and we’re not sure the market has priced in the transition, which is a key reason we point it out here.

Clikia is suddenly doing solid seven-figure sales seemingly overnight, after booking basically nothing in sales for the prior few years.

We get this impression straight from the company’s official materials, which suggest CLKA is on pace for well north of $2 million in sales in 2020. That is coming from Maison Luxe individual sales deals with very-high-net-worth clients, as well as its negotiated relationships with duty-free sellers in Colorado, Alaska, and the US Virgin Islands.

That last point was brought up in a recent press release in which the company noted that it had already booked over $300K in sales in recent weeks on a wholesale basis with its duty-free partners.

The combination is a great start. But the ceiling looks to be quite a bit higher even for this small part of the equation.

“The idea is to grow a brand that sources retail markets with responsibly sourced and priced watches,” remarked Idnani. “That’s typically nearly impossible to find. This is now more the case than ever due to a supply shock as factories shut down or halt production of luxury goods. However, demand hasn’t dropped at all this year despite the health crisis and resulting economic turbulence. The result is rising prices on inventory we have in-house.”

The Path Ahead… and the Money

The vision for the company is to leverage its superior market positioning and experienced leadership in the domestic US custom luxury watch and jewelry space as a launching point for expansion into the global custom luxury goods marketplace, with potential for expansion into high fashion, exotic custom automobiles, luxury accessories, and other by-appointment, rare luxury items.

The model that Maison Luxe has developed, in managing by-appointment disruption in market inefficiencies in custom high-end luxury goods, has wide applicability to geographic and product category expansion. Additionally, the Company believes that this model has not been widely developed in terms of market competition, creating a strong opportunity for return on invested capital in expansion.

Expansion in both geographic and product category creates the potential for strong expansion in total addressable market for Maison Luxe in the future.

The other key here to appreciate is the feedback loop of success available to a company in this space that starts with the right connections.

As a company like CLKA sees greater access to capital, management believes margin expansion will become a function of volume purchasing for key items that carry little risk of long-term demand shortfalls and are also capable of price appreciation over time – which is a feature of inventory factors in the high-end custom luxury goods market.

Future capital deployment is anticipated to emphasize margin expansion through optimizing held inventories, creating volume input price advantages for any company in this position.

Additional core investments will be made in multifaceted marketing strategies, including the development of key influencer relationships, with an emphasis on social media networking. In addition, significant investments are expected to go toward developing additional product sourcing relationships outside of the US market and in multiple additional product categories.

And, again, the results so far are actually on track to be almost astonishingly good – as far as we can tell from company materials – in terms of turning Clikia around from a relative nothing to a company now driving huge topline growth and millions of dollars of cash flowing in the door.

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Wed, 29 Jul 2020 06:12:10 +0000

Nevada Compliance Board Holds Inaugural Meeting, FDA Issues Much-Anticipated Report: Week in Review

Nevada Compliance Board Holds Inaugural Meeting, FDA Issues Much-Anticipated Report: Week in Review

On July 22, the Boston Cannabis Board (BCB) adopted new rules and regulations. They state that the BCB’s role is to grant licenses to applicants “for cannabis establishments within the City of Boston while ensuring Licenses are granted in such a manner so as to ensure equity, quality, and community safety.

“Specifically, the BCB is the siting authority for such establishments evaluating the proposed time, place, and manner in which these establishments are approved, open, and operate.”

Cannabis Business Times and Cannabis Dispensary spoke with Lydia Edwards, councilor of Boston’s District 1, about the rules and regulations, and she shared several points of contention.

The BCB noted in its new rules and regulations that it “does not have the authority or ability to negotiate host community agreements.” However, Edwards said host community agreements (HCAs) should be part of the applications that come before the BCB and should be approved by the board. Those agreements are part of the local approval process that the Massachusetts Cannabis Control Commission mandates in its licensing scheme.

“Negotiations are currently happening “in the dark,” she said. “So, to what end? To whose benefit? The whole point and the spirit of the law and the reform that Councilor [Kim] Janey was trying to put in, was that a public process with people representing the community would be the ones negotiating and finalizing and getting the HCAs done for everyone to see. And instead, they decided to interpret the regulations to allow for a song and dance.”

The BCB also didn’t address in its rules and regulations the topic of potential disparities between people who are granted brick-and-mortar and delivery licenses. The city previously established a 1:1 ratio for granting social equity and other licenses. However, due to the state setting aside delivery licenses to social equity applicants for the next two years, Edwards wrote in public comment prior to the adoption of the new rules, this could “create an industry with a disproportionate number of dispensaries being operated by non-equity license holders.”

Edwards proposed the BCB issuance of separate license classes for delivery businesses than brick-and-mortar dispensaries and a separate fee structure. Another idea she proposed in public comment is for the BCB to “create an additional license class for cultivation and manufacturing businesses.”

These changes don’t appear in the new rules and regulations, Edwards told CBT and CD. “The whole point of this damn statute is equity and race analysis,” she said. “I am telling you, we are set up so that there are going to be a bunch of white owners, and they’re not incentivized now to get any people of color to own with them if they can just go get Black folks to deliver for them.”

In addition, Edwards said the city needs to provide license applicants with a distinct timeline, which is something that isn’t in the new rules and regulations. “That, I think, is by far the biggest frustration most people have, because they are still paying rent, they put up time, they put up money, they quit their jobs, they’ve done whatever pursuing this—and like, any other business, they would have a predictability.

“Their lawyers or their consultants would be able to say, ‘This is how long it takes to get this part, this part, this part, then you get your decision, and if it’s for you, you go this way; if it’s against you, you go this way.’”

Edwards also weighed in on Massachusetts lawmakers’ efforts to pass a police reform bill. She said she thinks the main issue that needs addressed relates to qualified immunity, a process that protects police from lawsuits and has become a part of the ongoing debate surrounding racism and police brutality.

When asked what the cannabis industry should know about these discussions in Boston and Massachusetts more broadly, Edwards said: “I believe that this industry needs to take a long, hard look at who’s involved and who’s running it, and also needs to be holding them accountable. You cannot just walk in the middle of the most pained history on war on drugs on certain communities and then say, ‘I’m here to make money, and I’ve got nothing to do with that.’ And that’s what I’m seeing too much of.”

Published at Sat, 25 Jul 2020 12:30:00 +0000

The Story Turns Back to Pot Stocks (GRWG, CRON, MEDIF, NUGS)

The Story Turns Back to Pot Stocks (GRWG, CRON, MEDIF, NUGS)

The green machine is back. And we would expect the usual election hype to get started again ASAP. We are now closing in on the next moment when some percentage of the population will be focused more on whether or not their particular state is about to offer legal pot than on who’s the next president.

And that percentage is worth a mint to the industry and to investors who get in for the run into the election. In addition, this time around is super spicy because the polling numbers slant heavily in Biden’s favor and the Biden-Sanders “unity task force” put together a lengthy document of policy recommendations across a wide array of issues that is highly instructive on the pot stock election hype factor.

For example, among the issues that the task force considered was recreational cannabis legalization, calling for the decriminalization of marijuana using executive action. The task force also expressed support for the federal legalization of medical marijuana.

So, get your engines started folks. With that in mind, here’s a selection of some of the most active names in the space, including: GrowGeneration Corp (OTCMKTS:GRWG), Cronos Group Inc (NASDAQ:CRON), and Medipharm Labs Corp (OTCMKTS:MEDIF), and Cannabis Strategic Ventures (OTCMKTS:NUGS).

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 also operates an online superstore for cultivators, located at https://growgen.pro/. 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 the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.

The Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. GRWG shares have been moving higher over the past week overall, pushing about 7% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 10% in that time on strong overall action.

GrowGeneration Corp (OTCMKTS:GRWG) pulled in sales of $33M in its last reported quarterly financials, representing top line growth of 152%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).

The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.

Cronos Group Inc (NASDAQ:CRON) just announced that the shareholders have approved a special resolution authorizing the Company to make an application for the continuance of the Company from the laws of the Province of Ontario to the laws of the Province of British Columbia, as further described in the Proxy Statement.

The Company believes the greater flexibility afforded by the British Columbia corporate statute by virtue of the absence of a Canadian residency requirement for members of the board of directors of the Company will allow the Company to consider Board candidates from a larger pool of candidates to ensure the Board maintains the right composition, skills, expertise and diversity to drive long-term value. The completion of the Continuance remains subject to the satisfaction of the conditions described in the Proxy Statement.

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 CRON shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -5% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. CRON shares have been relatively flat over the past month of action, with very little net movement during that period.

Cronos Group Inc (NASDAQ:CRON) generated sales of $11.3M, 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 17.6% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.9B against $286.8M).

Medipharm Labs Corp (OTCMKTS:MEDIF) bills itself as a company that primarily focuses on producing pharma-grade cannabis oil and concentrates in Canada. It also focuses on providing cannabis contract processing services to licensed producers and growers; supplying cannabis oil to companies for sale under its brand; and supplying raw materials and processing for the creation of ready-to-sell cannabis products. The company was founded in 2015 and is headquartered in Barrie, Canada.

This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.

Medipharm Labs Corp (OTCMKTS:MEDIF) just announced that it has appointed James (Jim) Maloney as Chief Financial Officer, effective July 20, 2020.

In his role, Mr. Maloney will be responsible for leading the finance function including all aspects of financial planning and analysis, setting Medifast’s financial and capital allocation strategies, and managing investor relations. He will serve as a member of the company’s leadership team and report directly to Chief Executive Officer Dan Chard.

The stock has suffered a bit of late, with shares of MEDIF taking a hit in recent action, down about -7% over the past week.

Medipharm Labs Corp (OTCMKTS:MEDIF) generated sales of $11.1M, 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 -65.8% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($21.4M against $25.1M, respectively).

Cannabis Strategic Ventures (OTCMKTS:NUGS) bills itself as one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops, and partners with category leaders within the cannabis and ancillary sectors.

The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.

Cannabis Strategic Ventures (OTCMKTS:NUGS) recently announce topline performance data for the month of June, which featured over $1.3 million in sales, representing over 40% sequential monthly revenue growth. This performance demonstrates a dramatic acceleration in month-over-month growth.

“June set new records for the Company, with a massive acceleration in the pace of growth, which is so far continuing in July,” stated Simon Yu, CEO of Cannabis Strategic Ventures. “We have successfully repositioned ourselves in the ecosystem of the California cannabis marketplace, moving up the ladder and widening our distribution footprint. We will continue to focus on ramping production capacity and steadily driving gains in quality, efficiency, and volume. That has been our focus all year. Besides dramatic expansion in sales volume by weight, we have also been rewarded by the market with steady gains in pricing. That represents the ultimate positive reinforcement.”

Even in light of this news, NUGS has had a rough past week of trading action, with shares sinking something like -2% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 53% in that time on strong overall action.

Cannabis Strategic Ventures (OTCMKTS:NUGS) generated sales of $1.4M, 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 91.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($222K against $13.1M, respectively).

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Thu, 23 Jul 2020 03:35:01 +0000