The Cannabis Job Market In United States Is Alive And Well

The Cannabis Job Market In United States Is Alive And Well

Last year, we noted the increasing interest in the US cannabis market from leading broker-dealers interest in the Canadian cannabis market was declining.

During the last quarter, this trend has become more significant and we have seen an increasing number of job cuts in Canada. In contrast, the US cannabis market which has seen a substantial increase in the number of people who have been hired over the last twelve months.

Another interesting metric to highlight is related to the amount of capital that has been raised by cannabis companies. During the last quarter, we have noticed a substantial decline in the amount of capital that is being raised by Canadian companies. For US cannabis companies, the trend has been much different, and we continue to see capital enter the sector.

We believe that the cannabis industry is reaching an inflection point and our readers need to be aware of this. During the last month, we have noticed an increase in the number of investors who are “running for the hills” when it comes to the cannabis sector and we believe that this means that it is time to start watching the market.

Last week, two high profile Canadian cannabis producers reported plans to lay off approx. 10% of their respective workforce. These announcements sent shockwaves through the industry and the market responded negatively. Going forward, we expect to see an increase in the number of Canadian companies that are laying off employees as companies continue to put a greater focus on profitability.

Earlier this month, Leafly published an article that covered the US cannabis sector and noted its strong job growth. The US cannabis industry seems to have benefited from the opening or expansion of new markets such as Florida and Michigan. California remains the top cannabis market in the US from an employment standpoint and we continue to be bullish on this market.

When you analyze the total addressable market that is associated with the US cannabis market, we find the opportunity to be more significant than Canada from a population standpoint. Although Canada has a legal cannabis market, it is much smaller than the US and this has been one of the most attractive aspects of the US opportunity. Once cannabis is legal at the federal level in the US, we expect to see a massive influx of capital and for this to be the most substantial catalyst for the long-term opportunity.

Although we are bullish on the growth prospects associated with the legal cannabis market, the market needs to have rational expectations when it comes to the size of the market and the number of potential winners from a company standpoint. In Canada, we are most excited about: Canopy Growth Corp. (WEED.TO) (CGC), Aleafia Health Inc. (ALEF.TO) (ALEAF), Fire & Flower (FAF.TO), Namaste Technologies (N.V) (NXTTF), and MediPharm Labs (LABS.TO) (MEDIF). In the US, we are most excited about: 1933 Industries (TGIF.CN) (TGIFF), Columbia Care, Hemptown USA, and Medicine Man Technologies (MDCL).

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Authored By

Anthony Varrell

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

Published at Fri, 14 Feb 2020 12:32:44 +0000

1933 Industries Harvests First Commercial Cannabis Crop in California, Expands Canna Hemp™ Distribution and Provides Market Update

1933 Industries Harvests First Commercial Cannabis Crop in California, Expands Canna Hemp™ Distribution and Provides Market Update

1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF), a vertically-integrated and growth-orientated cannabis consumer packaged goods company, is pleased to announce that, further to its news release dated January 7th, 2020, the first harvest of cannabis plants from its California operation is currently under way and reports that it has commenced distribution of California-compliant full spectrum Canna Hemp™ products to dispensaries in the state.

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

First commercial harvest marks the California debut of AMA and Blonde Cannabis products

Following the completion of a combined 20,000 sq. ft. expanded cultivation, extraction, manufacturing and distribution facility in the Los Angeles area, the Company began harvesting its first cannabis crop this week to be utilized for both its proprietary brand, Alternative Medicine Association (AMA) as well as for its licensing partner, luxury brand Blonde™ Cannabis, with products earmarked for dispensaries for the first time outside of Nevada. With crops of Mimosa and SFV OG, the harvest will be utilized for AMA premium packaged flower, pre-rolls and Blonde™ products. Over a period of approximately three weeks, harvested plants will enter a drying and curing process and laboratory testing with product expected to be available in early March.

Full spectrum Canna HempCBD products entering the competitive California market

The Company established local manufacturing for its proprietary cannabidiol (CBD) wellness line containing California-compliant full spectrum CBD for direct distribution to local dispensaries. The Company reports that the initial run of 30,000 units of full spectrum CBD Canna Hemp™ products passed required state compliance testing and will be delivered to dispensaries this week. Initial products available include, Canna Hemp™ elixirs, vape pens and cartridges, and Canna Hemp X™ elixirs, with Canna Hemp™ Relief creams available later in February.

Market Update and Management Commentary by Mr. Chris Rebentisch, CEO

While the landscape of the entire cannabis sector has changed dramatically and continues to be under pressure, we would like to reassure our investors that the current share price does not reflect our business operations as we continue to execute our strategy. With two capital projects now completed, we are on track to deliver two key infrastructure projects over the next several months that will allow us to fully control our input materials, lower our costs of production, increase our revenues and margins with profitability as our key priority in fiscal 2021 and beyond. We are continuing to achieve further efficiencies across our operations, managing our cash position conservatively and controlling expenses to endure current market conditions.

Nevada cultivation, tetrahydrocannabinol (THC) extraction expansion and GMP hemp extraction lab updates

We are on schedule to harvest commercial crops every 14-18 days from the Las Vegas cultivation facility starting in March. We have 5 harvest zones with plants growing in various stages for 4 of the 5 zones. We are pleased to report that the biomass from the first harvest from this facility has been utilized to produce our line of high value concentrates for the Nevada market and leverage one of most exciting verticals within the cannabis industry.

On January 27th, we submitted a third round of comments to the Clark County Building Department (CCBD) for the expansion of our THC extraction facility. A construction schedule will be forthcoming once the building permit is awarded. In the meantime, we have prepared work for electrical upgrades to the facility.

Although the peer review of the customized extraction equipment for the GMP hemp extraction lab has not been completed to date, we are still on track to deliver this project mid-year. We continue to make progress in building design and equipment engineering.  We report that the distillation system has been delivered to the facility in Las Vegas. All milestones will be reported until the final completion of this project.

Our focus continues to be the strengthening of our existing operations in Nevada with increased production capacity, the growth of our Californiaoperations and the generation of new revenue from that market, and the advancement of our capital initiatives while capitalizing on the sale of our line of CBD Canna Hemp™ products across the attractive US cannabis markets. A revamped E-commerce website for Canna Hemp™ will be launched this Friday with a direct to consumer strategy. Our Company’s mission is to provide safe products that focus on the benefits of the plant and that are in line with consumer demands, offering quality of ingredients and consistency at affordable prices.

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

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

The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC. 1933 Industries continues to focus its operations in the licensed US cannabis industry as a multi-state operator in Nevada, Colorado and California. The Company operates in California via a management services agreement with Green Spectrum Trading Inc., a medicinal and recreational cannabis business licensee in the state.

About Canna Hemp™
Canna Hemp™ CBD Relief Cream was named “Best Topical” by Leafy’s Best in State: The Top State Specific Products and Experiences of 2018.
http://www.cannahemp.com
https://www.leafly.com/news/strains-products/best-in-state-2018-nevada-cannabis

About Canna HempX™
Canna Hemp X™ was named “Best Topicals for Pain” by Herb’s Guide to the Best Cannabis Products on the Planet. Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance.
http://www.cannahempx.com
https://herb.co/learn/best-cannabis-products/

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 to download multimedia:http://www.prnewswire.com/news-releases/1933-industries-harvests-first-commercial-cannabis-crop-in-california-expands-canna-hemp-distribution-and-provides-market-update-301005120.html

SOURCE 1933 Industries Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2020/14/c5885.html

Alexia Helgason, VP, IR and Corporate Communications, 604-674-4756 (ext. 1), alexia@1933industries.com; Chris Rebentisch, CEO & Director, 604-674-4756 (ext. 1)Copyright CNW Group 2020

Published at Fri, 14 Feb 2020 13:35:21 +0000

Here Are the Six Cannabis and Hemp Businesses That Will Pitch to Investors at SXSW

Here Are the Six Cannabis and Hemp Businesses That Will Pitch to Investors at SXSW

Location: Salinas Valley, Calif.

One word to describe your cultivation style: “A hybrid between canna-ag technology and large-scale, year-round production,” Hackett says.

Indoor, outdoor, greenhouse or a combination: Greenhouse

Can you share a bit of your background and how you and your company got to the present day?

Photos courtesy of Riverview Farms

Riverview Farms employs a 75% to 85% female workforce.

I was born and raised here in the Salinas Valley by my parents, Mike and Sylvia Hackett. We were educated here. My parents have been entrepreneurs their whole lives, having multiple businesses—agricultural businesses, commercial real estate, restaurants. After they educated us, I was a St. Mary’s graduate with a business degree. I decided to move back to the Salinas Valley and [start] my career in agriculture at a local, family-owned and -operated company called Church Brothers. I was with them for about five years in the sales department, running their largest account, which was Sysco Food Service. Then, I decided to transition into our family business, which is Riverview Farms.

Riverview Farms was established in 2016 by my dad, Michael Hackett. He was the first cannabis operation in the Salinas Valley to get the exemption to even grow within our county and our city. Riverview Farms is a family-owned and -operated cannabis company that is vertically integrated. We hold nursery, cultivation [and] distribution licenses, so we control everything that we do from seed to sale.

It’s an incredible experience because I get to not only work side-by-side with my dad, who founded our company—he stepped back and put me in the lead position—but [also with] my sister, Lauren, [who] has also come on board and manages our retail division. Now, I would consider ourselves the largest female-owned and -operated cannabis company out of the Salinas Valley and possibly even in the state of California. We’re definitely very proud of that. My mom is our landowner, my sister and I run the company together, and we employ over 75% to 85% of a female workforce. I find that extremely important to me and to the ethics we hold here at Riverview Farms because I just don’t think a lot of companies could say the same about themselves. We employ our people 365 days a year. We don’t stop for a winter or fall crop. We are a consistent, 365-day-a-year supplier, producer [and] grower.

What tool or software in your cultivation space can you not live without?

For our style of growing, which is greenhouse-grown, we are relying 100% on the natural environment. We don’t have any supplemental lighting in the greenhouses. So, the software or tool that I would say comes in most handy for our lead cultivator and our entire team is an atmosphere control system that allows us to monitor the temperature both inside and outside the greenhouses 24/7, 365 days a year. It measures the temperature, the humidity [and] the wind speed both inside as well as outside the greenhouse, which is really awesome. Temperature control is everything. The atmosphere for the plants can greatly dictate the success of the crop. Being sure that we have a tool that we can monitor 24/7 the atmosphere of our greenhouses is very important.

What purchase of $100 or less has most positively impacted your business in the last six months?

The best purchase of $100 or less would be the king-sized Advil at Costco for the headaches that Monterey Country has put on our industry as a whole. I feel that Monterey County has been one of the most challenging counties within the state to work with. My family and I come from ag. We’re looking to run this as an agricultural operation. If you come visit us, no one is stoned. No one is doing anything that’s not on the up-and-up, and [there is] a lack of local enforcement and [the] headache of the hoops that our county is making us go through.

For example, we already report to the state through Metrc—that’s out track-and-trace system. Our county decided to add on CC reporting, which is basically a redundancy of what Metrc’s doing. [There is also a] lack of opportunities for additional licensed retailers. I think that creates a lot of challenges for us and makes it almost impossible to succeed. So, I guess the Advil helps you ease those headache days.

Hackett runs Riverview Farms as she would any other agricultural operation.

What cultivation technique are you most interested in right now, and what are you actively studying (the most)?

The most important thing for us in terms of longevity is finding the strongest genetic library that we can possibly have. Part of being vertically integrated means that we have our own nursery on site, so we generate 100% of our own clones. Finding the plants that are going to do the best— [that are] going to yield the highest, have the highest THC percentage and cannabinoids—and making sure we keep it fresh and consistent is very important to us. Some of the strains that work, for example, in an indoor or outdoor cultivation [operation] might not work well here in the greenhouse model, but I would say the No. 1 thing that Riverview Farms focuses on is making sure we have the strongest genetic library possible.

How has a failure, or apparent failure, set you up for later success? Do you have a “favorite failure” of yours?

For us, failure is not an option. This is our family’s legacy that we’re putting into this company. I’ve made this 100% my career. My sister has made this 100% her career. We’ve tied up 20 acres—that’s what we cultivate on—of my parents’ commercial real estate to make this a successful business.

We have learned from our mistakes and we grow every time that we are faced with a challenge. Part of being in a new and emerging industry is no one has done production to this scale before, ever, [with] cannabis cultivation. I think for us, [we’re] learning how to be the best grower we can be and how to sustain our business long-term. We’re in it for the long haul. Longevity and consistency and being a sustainable, successful business is really what we’re focused on. Every single crop comes with its own challenges. We’re on a waiting list for power upgrades. We’re dealing with Mother Nature. This is still a plant—not every single crop performs the exact same way, but we always learn from previous challenges and better ourselves for that next round.

Although every crop comes with its own unique set of challenges, Hackett remains focused on making Riverview Farms a sustainable business that produces consistent product.

What advice would you give to a smart, driven grower about to enter the legal, regulated industry? What advice should they ignore?

If I were new to this space and coming in, I would really do my research. If you’re in the state of California, which county is really working best with their growing operations? You want to be in a county where [cannabis is] widely accepted, and the regulators are actually trying to understand the challenges that growers are faced with and understand that it’s a commodity-based business. [Do] your research into where you’re actually going to be putting your cultivation space and [make] sure it’s sustainable. Rent, taxation, distribution fees—it really adds up very quickly. It’s a money pit, and you have to be prepared to sustain your business. [Make] sure that you’re in the best possible area that’s setting you up for success long-term because a lot of people enter into these high-end leases and think they’re going to turn a profit immediately, and that’s not always the case. In any start-up business, it takes time to generate cash flow and there are a lot of expectations in terms of compliance. It’s a very exciting industry to get into, but also one of the most challenging industries I’ve ever worked in. The United States is still against you—[cannabis is] still not federally regulated. There’s a big red target on your back always. [You have] payroll, taxes, crop loss, construction, power upgrades—there are so many things that you’re faced with on a daily basis that you may not see in the beginning or you don’t think it will affect you directly, but it affects us all. It catches up with any business, so be prepared.

Some of the biggest and most talked about brands, companies [and] retailers in the industry, unfortunately, are failing tremendously due to the amount of investor capital they’ve taken in and some of the poor business decisions that have been made. So, just because it’s potentially a big or widely known name in the industry, do your research. Make sure that’s a company that can pay you on your product. Some of the biggest retail names or some of the biggest brand names are not paying their vendors because they’re in so much debt that they’re in fear of closing down businesses. There are huge walkouts of employees who were once paid these large salaries but are now doing large-scale exits of 50, 100 [or] 150 employees. Six months ago, they were the talk of the town, like “Oh my gosh, are you in Shop x?” or “Are you carrying Brand x?” Some of these very hyped-up retailers or these very hyped-up brands have not been sustainable due to the companies’ lack of organization and financial independence. So, I guess my advice would just be to keep your circle small of who you’re doing business with and make sure that you are very aware of people’s cash flow. Not all business is good business. Do your research into who you do business with and who you’re selling to.

Riverview Farms cultivates greenhouse-grown cannabis on 20 acres of family-owned land in Monterey County, Calif.

How do you deal with burnout?

Because we’re a family-owned and -operated business and because our headquarters is actually on our cultivation site, we keep a very tight-knit community atmosphere. My employees see [me], my sister and my dad on a daily basis—we’re very active in the day-to-day activity. So, ultimately, we always have a list of people wanting to come and work with us. We’re very fortunate and very blessed that in Salinas Valley specifically, we employ a very large amount of ag labor. In the other local commodity crops—such as lettuce, broccoli, spring mix, berries, artichokes [and] wine grapes—most of those are only seasonal opportunities, so only about six months of the year are those crops growing here, and then the other six months, they’re moving to Yuma, Ariz., so you have to uproot your family if you want consistent work. At Riverview Farms, because we’re choosing to grow 365 days per year, we can offer that consistency in terms of workflow. So, we are very fortunate to have opportunities to bring on additional staffing [to avoid burnout].

How do you motivate your employees/team?

I really try to go above and beyond for our Riverview family. I make sure that every single month we do an appreciation barbeque or, as it gets hot, I’ll grab snow cones or Jamba Juice for everybody. [Sometimes it’s] just going out and having lunch and talking with our people about what’s going on. We’ve very involved, making sure they’re treated with the utmost respect because without them, we wouldn’t have a business.

Things [can be] as simple as proper meal breaks, clean lunch areas [and] making sure our restrooms are sanitized daily. You would think that these are all common-sense requirements for this industry, [but] I’ve heard horror stories of people who have worked at other grows or other operations, even locally, who aren’t treated to that same high standard. I think the way we motivate is by ensuring that we are doing best practices, not only on a day-to-day basis, but also making sure that we’re working hard but have a lot of fun, too. For senior management, we do appreciation days, we do Christmas parties, we do team bonding events. I really try to make sure that we stay very engaged with one another.

One of Hackett’s goals is to have a strong genetic library to maintain high yield and a robust cannabinoid profile.

What keeps you awake at night?

What really keeps me awake at night is knowing how skewed the perception of our industry really is. I feel that our county sees [cannabis], as a collective group, as the enemy, and that makes it very challenging. I don’t feel like our local jurisdiction wants to see cannabis succeed in our county, which is a real bummer. What really keeps me up at night is knowing that we just constantly have that big target on our back, and instead of working together and being transparent and educating people, I feel like our local county is so closed off to learning about our industry and growing together and making it a successful and safe business for our state and our community. What bothers me or what irks me is knowing that we don’t have that support, and I wonder if it would be different in other counties or in other jurisdictions, where it would be a little bit more well-received.

What helps you sleep at night?

What helps me sleep at night is knowing that I have an incredible team that I can rely on to get this done 365 days a year, knowing that were are in full control of our business, being vertically integrated and family-owned, and knowing that I don’t have any outside investors expecting unrealistic returns on a profit. We’re being modest and growing at a rate that we can actually afford to and [we’re] being sustainable for the long haul.

Because we’re part of the Salinas Valley, which is known as the “Salad Bowl of the World,” it’s so important that we are thinking about our environment and being sustainable. We want to be eco-friendly and conscientious as much as possible. For example, in our greenhouses, we use drip irrigation to make sure we’re not overwatering [or] overfeeding our plants, but then we’re also recollecting that water at the end of its cycle and reusing it here on the farm.  We also reuse and sanitize all of our pots throughout our operations, so we’re not going through as much plastic. Even the style in which we grow—being a greenhouse cultivator, relying on 100% natural UV light and not using any supplemental lighting in our greenhouses is growing green in the natural way. Whatever you’re getting is true to that time of year—during the colder or winter months when you’re not getting as big a bud structure or as high a THC percentage, that’s true and natural to the time of year in which we’re growing. When we have full sun in spring and summer and we have these big buds and high THC, that’s because we have the UV light. We’ve also added a special topping to our roofing, [which] helps us save on our heat bill by about 20% to 30%.

Editor’s Note: This interview has been edited for style, length and clarity.

Published at Fri, 14 Feb 2020 14:26:00 +0000

Majority Of Kentucky Residents Back Legalizing Marijuana For Any Purpose, Poll Finds As Medical Hearing Approaches

Majority Of Kentucky Residents Back Legalizing Marijuana For Any Purpose, Poll Finds As Medical Hearing Approaches

Nine out of 10 Kentucky residents support legalizing medical marijuana, and almost 60 percent say cannabis should be legal under “any circumstances,” according to a survey released on Wednesday.

The Kentucky Health Issues Poll, which involved phone interviews with 1,559 residents from October to December 2019, shows a significant increase in support for reform over the past several years.

In 2012, just 78 percent of Kentuckians said they favor medical cannabis legalization and 38 percent said it should be legal for any purpose.

Interestingly, the new survey separately asked respondents about their views on “recreational” legalization, as opposed to legalizing under “any circumstances.” Just under half—49 percent—said they back legalizing recreational marijuana.

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Published at Mon, 10 Feb 2020 18:49:32 +0000

Governors Across U.S. Step Up Push To Legalize Marijuana In Their States

Governors Across U.S. Step Up Push To Legalize Marijuana In Their States

State legislatures across the U.S. have convened for new sessions over the past month, and a growing number of governors are taking steps to push lawmakers to include legalizing marijuana as part of their 2020 agendas.

At least 10 governors have gone so far as to put language ending marijuana prohibition in their annual budget requests, or used their State of the State speeches to pressure legislators to act on cannabis reform.

Some are proactively addressing the issue, while others appear to be mostly reacting to support that has already built up among lawmakers. But altogether, it’s clear that top state executives are now taking marijuana more seriously than ever before.

Here’s a look at how governors are taking action on marijuana as 2020 legislative sessions get underway.

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Published at Tue, 11 Feb 2020 21:10:25 +0000

3 Canadian Cannabis Stocks With A Business Model Built To Weather The Storm

3 Canadian Cannabis Stocks With A Business Model Built To Weather The Storm

2020 has proven to be a challenging period for the cannabis industry so far and we will continue to  keep an eye on how the sector is able to perform from here. Although the recent trend has been to the downside, we have been able to identify a few bright spots in the industry and believe that selectivity will be more important than ever going forward.

When we are analyzing a cannabis company, there are a number of metrics that we take an in-depth look at and want to highlight some of the most important metrics:

  1. Balance Sheet Strength: Access to capital has become a major pain point for the sector and we are focused on companies that have enough cash on the balance sheet in order to execute
  2. Cash Flow: Aside from having cash on the balance sheet, we are focused on companies that are generating significant cash flow. We are primarily looking for businesses that are operating profitably and have a large total addressable market
  3. Management Team: This is the most important aspect of any cannabis company. We work to identify companies that are led by a management team that is focused on creating value for shareholders. We prefer well rounded teams that have proven track records of success

During the last year, the cannabis sector has been under immense pressure and this is a trend that our readers need to be aware of. Although this trend has shown no signs of changing, we believe the sector is reaching an inflection point as new markets come on-line and as Canada’s market appears to be gaining traction. Today, we want to highlight 3 Canadian cannabis companies that have come across our radar and are worth taking a look at.

Namaste Technologies: Continues to be an Execution Story

Namaste Technologies (N.V) (NXTTF) is well positioned to be a beneficiary of the changing landscape of the Canadian cannabis industry and possesses many of the traits that we consider integral to the overall success of a company in this industry.  During the last year, the fundamental story recorded several major advancements and we are impressed with how the management team has been able to drive the story forward.

When compared to the average Canadian cannabis company, Namaste represents an attractive opportunity from a balance sheet strength and valuation standpoint. During the last few quarters, the company has been expanding its sales channels   and we believe that the management team is focused on bringing the business down a path to profitability. From a cash flow standpoint, we are favorable on this aspect of the operation and expect this metric to be a key focus point that is commonly associated with the opportunity.

Namaste has an attractive operating structure and we are most excited about the growth profile that is associated with CannMart, a wholly owned subsidiary of the company. CannMart has played a key role in the success of the business and we expect it to become a more significant aspect of the business as Namaste continues to execute on previously announced initiatives. Canada’s cannabis 2.0 opportunity represents an attractive vertical of the industry and is a market that CannMart has been highly focused on.

When it comes to analyzing a cannabis company, we have a tendency to prefer businesses that represent differentiated opportunities. Namaste’s business model does not require the construction of massive cultivation facilities and we find this to be significant when it comes to managing cash flow. The company’s business is much less capital intensive than Aurora Cannabis (ACB.TO) (ACB) and we are favorable on this aspect of the story. Through CannMart, Namaste is positioned to be a major beneficiary of the legal cannabis movements and going forward, we will monitor how it is able to capitalize on emerging international markets.

Namaste has significant potential catalysts for growth, and we are favorable on its risk-reward profile. At current levels, we find the valuation to be attractive and believe that the opportunity is flying under the radar. Over the next year, we expect to see Namaste report major advancements, and this is an opportunity to be watching.

Aleafia Health: A Burgeoning Growth Story to be Watching

During the last year, Aleafia Health (ALEF.TO) (ALEAF) has been nothing short of an execution story and has been a business that we have been closely following. From Canada’s medical cannabis market to burgeoning international markets, the company has been executing of several initiatives that have been creating significant value for the business.

Although Aleafia Health reported major improvements over the last twelve months, the shares have traded lower with the rest of the Canadian cannabis sector and this is an opportunity that we are bullish on. In the most recent quarter, the company reported to be profitable and recorded incremental revenue growth when compared to the same period from last year. Going forward, this is a trend that is expected to continue, and we expect the business to benefit from having several significant revenue streams.

From medical cannabis sales to wholesale cannabis sales, Aleafia Health is levered to some of the most attractive verticals of the cannabis industry. From a pricing standpoint, the company has an attractive business and we are favorable on the amount of inventory that it has for sale. Over the next year, we expect Aleafia Health to report strong revenue growth and are favorable on the way the management team has been managing cash flow.

When it comes to the international cannabis opportunity, Aleafia Health has been active and has been capitalizing on this side of the business. We expect the international side of the business to play an important role in growth on a going forward basis and believe that this aspect of the story is underappreciated by the street. Aleafia Health has been capitalizing on the cannabis opportunity in Australia and in the European Union (EU). We are bullish on the growth prospects associated with these markets and will closely monitor how this side of the business supports growth from here.

Aleafia Health has access to capital and is well positioned to take advantage of organic and inorganic growth opportunities. We are favorable on this aspect of the story and believe that the management team has the business well positioned for growth. We consider Aleafia Health to be a differentiated opportunity and believe that this is a business that is flying under the radar.

Canopy Growth: Not Living Up to Expectations in 2020 So Far

Many cannabis experts and analysts consider Canopy Growth Corporation (WEED.TO) (CGC) to be the global cannabis leader and we have been closely following the business since 2014. The last twelve months have been hard on the company and we continue to closely monitor the opportunity. Last year, Canopy Growth fired Bruce Linton as CEO and Executive Chairman and this represented a major change in direction for the business.

Only time will tell if the change in leadership a strategic decision for the business and this was is a story that we will continue to closely follow. When compared to the rest of the cannabis sector, Canopy Growth has the strongest balance sheet by far. In 2018, the company received a $4 billion investment from a leading alcohol conglomerate, and this provided the business with a solid cushion from a capital standpoint.

The acquisitions that Canopy Growth has completed after the $4 billion capital infusion have not been impressive and this has been a major negative that is associated with the business. According to the most recent earnings report, the company still has more than $2 billion of cash and cash equivalents and we will monitor how the management team is able to use the capital to continue to grow the business.

So far, 2020 has not proven to be the bounce back year that many people expected it to be for Canopy Growth and we will keep an eye on the trend from here. We believe that the company has attractive growth prospects and will monitor how the new management team is able to drive the story forward.

Pursuant to an agreement between StoneBridge Partners LLC and Namaste Technologies Inc. (N)(NXTTF) we have been hired for a period of 180 days beginning October 1, 2019 and ending April 1, 2020 to publicly disseminate information about (N)(NXTTF) including on the Website and other media including Facebook and Twitter. We are being paid $7,500 per month (N)(NXTTF) for or were paid “0” shares of restricted common shares. We own zero shares of (N)(NXTTF), which we purchased in the open market. We plan to sell the “ZERO” shares of (N)(NXTTF) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (N)(NXTTF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

Pursuant to an agreement between StoneBridge Partners LLC and Aleafia Health Inc. (ALEF) we have been hired for a period of 180 days beginning August 15, 2019 and ending February 15, 2020 to publicly disseminate information about (ALEF) including on the Website and other media including Facebook and Twitter. We are being paid $8,000 per month (ALEF) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (ALEF), which we purchased in the open market. We plan to sell the “ZERO” shares of (ALEF) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (ALEF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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Anthony Varrell

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

Published at Wed, 12 Feb 2020 12:34:37 +0000

Are Beverage Pot Stocks Still A Buy In 2020?

Are Beverage Pot Stocks Still A Buy In 2020?



Are Beverage Pot Stocks Still A Buy In 2020? | Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™














































Published at Wed, 12 Feb 2020 14:21:39 +0000

Where Are They Now: Q&A with Jeff Radway

Where Are They Now: Q&A with Jeff Radway

New Hampshire lawmakers have again launched cannabis legalization efforts this year, this time taking a criminal justice approach to the issue.

H.B. 1648 would legalize the possession and limited home cultivation of cannabis for adults 21 and older, and may be more palatable to lawmakers than past legislation aimed at creating a taxed and regulated cannabis market in the state, according to Matt Simon, New England political director for the Marijuana Policy Project (MPP).

“It just eliminates the existing civil penalty for possessing up to three-quarters of an ounce,” Simon told Cannabis Business Times. “It eliminates criminal penalties for possessing up to six plants, of which three can be mature, and that’s pretty much it. There is no regulation or tax component. It’s a straight-up criminal justice reform, similar to what Vermont passed in 2018.”

The House Criminal Justice and Public Safety Committee approved the bill Jan. 28 in a 13-7 vote, and a full House vote is expected sometime this month.

“It’s significant,” Simon said. “It passed in a 13-7 vote and last year, the legalization bill passed in a 10-9 vote, so we gained three votes, which could be attributed to the issue evolving [or] to the bill being simpler and not having a complex regulatory and tax proposal along with it. Either way, it’s a sign of momentum. It’s a sign that we’re continuing to gain support in the House.”

Last year, the New Hampshire House passed a similar bill, H.B.481, which would have not only legalized cannabis, but also created a regulated and taxed market. The legislation passed the House, but ultimately stalled in the Senate after the Judiciary Committee referred it for “interim study.”

Simon is optimistic about the House vote on this year’s bill but fears the legislation could hit a snag in the Senate again, unless lawmakers are more receptive of legalization that does not include a commercial market.

“The House has been much more amenable than the Senate or the governor in previous years and with past cannabis legislation, so I’m pretty sure it will pass the House, hopefully by a big margin,” he said. “Then we’ll go to the Senate and we’ll face more of an obstacle.”

It is an election year, however, and polls have shown strong public support for legalization in New Hampshire, Simon added.

“It’s an issue that’s more popular than any politician in the state at this point,” he said. “Do they really want to go through another election having been prohibitionists, or do they want to get on the right side of this before being potentially challenged by somebody who might be good on the issue and knock them out of office? It used to be politicians were afraid of running for cannabis during an election year, and now I think they should be afraid to vote against it in an election year. Two polls in a row show 68% support for legalization in New Hampshire. That should work in our favor.”

Gov. Chris Sununu, however, might be the largest roadblock to legalization of all. The Republican governor has been largely opposed to adult-use legalization and other cannabis policy reforms in the state, which earned him a D+ grade on NORML’s recent 2020 Gubernatorial Scorecard.

Simon said that unless Sununu changes his mind this year, he could continue to stand in the way of any legalization attempts in the state.

“He talks about how much he appreciates the ‘Live Free or Die’ state and all the wonderful freedoms we have in New Hampshire, yet we’re surrounded by states that have more freedom relative to cannabis, and that would seem to be at odds with most of his other positions,” he said. “Of course, we hope he comes around, and we’ll see if he does.”

Ultimately, a legalization bill lacking a tax-and-regulate component is just this year’s approach to the issue, Simon added; next year, MPP may support legislation to implement a commercial cannabis market in the state.

“This is just a strategy for this year, given we know we don’t have the votes in the Senate for a comprehensive, regulated-and-taxed system,” he said. “The strategy worked very well in Vermont in refocusing the issue as a state criminal justice reform and civil liberties issue. As we’ve seen in Vermont, once it’s legal for adults, often a lot of our opponents say, ‘Well, I didn’t want it to be legal, but now that it is legal, it should obviously be regulated,’ and then they become allies in the push for taking that step.”

MPP has been lobbying, organizing attendance to public hearings, encouraging residents to contact their elected officials and conducting media outreach to build awareness and momentum in New Hampshire, Simon said, and the organization will continue to do so until the state successfully legalizes.

“So much of the support is passive and people assume it’ll happen eventually, and they don’t feel like they need to necessarily do anything,” he said. “A lot of our opponents are really motivating—they think the sky will come crashing down if cannabis is legal, and even though that’s only a few dozen people in the state, they can be really loud if they put their mind to it. So, we have to counteract that with a broad, robust coalition that comes to the statehouse and that engages elected officials and at some point, it will be successful. It’s just no guarantee whether some point will happen in 2020.”

Several other cannabis-related bills have been introduced in New Hampshire this year, in addition to H.B. 1648. One, another legalization bill, would distribute cannabis through the state’s liquor stores. That legislation has not yet been scheduled for a hearing, and Simon noted that it could still be amended to take a different approach to legalization.

Other cannabis policy reform efforts this year include a medical cannabis home grow proposal, S.B. 420, which would allow patients to cultivate their own plants. The Senate approved the legislation Feb. 6, and the bill will proceed to the House for consideration.

The legislature passed a similar bill last year, but the legislation was ultimately vetoed by Sununu. The House voted to override the veto, but the Senate vote fell short of the required two-thirds majority to override the veto in that chamber.

Simon points to the medical home grow bill as an indication of whether a legalization bill has the support to pass the legislature and, ultimately, Sununu this year.

“If that bill doesn’t pass, you might conclude that H.B. 1648 is not going to do very well,” he said. “If they’re not going to let patients have a few plants, are [they] going to let everybody have a few plants? We’ll see.”

Published at Fri, 07 Feb 2020 21:05:00 +0000

Canopy Growth to Announce Third Quarter Fiscal 2020 Financial Results

Canopy Growth to Announce Third Quarter Fiscal 2020 Financial Results

Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NYSE: CGC) will release its financial results for the third quarter fiscal 2020 ended December 31, 2019 before financial markets open on February 14, 2020.

Logo: Canopy Growth (CNW Group/Canopy Growth Corporation)

Following the release of its third quarter fiscal 2020 financial results, Canopy Growth will host an audio webcast with David Klein, CEO and Mike Lee, EVP & CFO at 10:00 AM Eastern Time on February 14, 2020.

Webcast Information
A live audio webcast will be available at:
https://event.on24.com/wcc/r/2171215/8311836AC24F7988B042B4BB0FA5622A

Replay Information
A replay of the call will be accessible by webcast until 11:59 PM ET on May 14, 2020 at:
https://event.on24.com/wcc/r/2171215/8311836AC24F7988B042B4BB0FA5622A

About Canopy Growth Corporation

Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents.

Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.

Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.

From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates eleven licensed cannabis production sites with over 4.7 million square feet of production capacity, including over one million square feet of GMP certified production space. For more information visit www.canopygrowth.com

 

Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/canopy-growth-to-announce-third-quarter-fiscal-2020-financial-results-300999781.html

SOURCE Canopy Growth Corporation

Published at Fri, 07 Feb 2020 12:01:33 +0000




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