The Morning Blunt

Volume 2| Issue 25

October 25, 2018

“ It takes 20 years to make an overnight success.“ –Eddie Cantor

Stock Market

Investors will have to wait a little longer to celebrate legalization as pot stocks fell again for the seventh session in a row. Market Watch’s Tomi Kilgore gives a full rundown on how poorly cannabis stocks performed Wednesday.

Canopy Growth CEO on cannabis sell-off from CNBC.

Rather than investing in volatile cannabis stocks consider ancillary businesses designed to support the cannabis industry. Real estate holding firms like Crop Infrastructure Corp specializing in cannabis properties allow investors to profit from the cannabis boom without the risk.

Liberty Health Sciences rebounds at the announcement of three new medical cannabis facilities which will provide 24-hour delivery service throughout the state of Florida.

Should you buy, sell, or hold cannabis stocks? It’s a common question. Greg Taylor portfolio manager at Purpose Marijuana Opportunities and Financial Post’s Larysa Harapyn discuss what you should consider before investing in cannabis.

Will Stuart, a well-known cannabis insider, is returning as senior vice president of corporate and public affairs to Harvest One Cannabis Inc. Harvest one develops products worldwide for patients in regulated markets.

Dual listings are on the rise as US companies have been flooding the Canadian Securities Exchange. Of the 106 cannabis firms listed 49 are US related. In terms of funding US cannabis firms have raised $760M and Canadian firms $780M.

KushCo announced that it has joined the Sustainable Packaging Coalition which focuses on environmentally sound packaging solutions. As the largest supplier of packaging to cannabis companies, KushCo has the ability to develop innovative packaging solutions and the reach to make a huge impact.

According to Business Insider’s Jeremy Berke, though Aurora Cannabis’ debut on the NYSE was less than extraordinary investors and analysts aren’t worried as volatility is expected in the sector. Shares fell 15% before recovering at the end of the day Tuesday and shares fell again Wednesday.

Canadian cannabis producer FSD Pharma Inc. made an agreement with nano-cap company Therapix Biosciences ADR, an Israel based clinical-stage specialty pharmaceutical firm that focuses on cannabinoid pharmaceuticals.

Global News

South Koreans may face five years of prison time if they are accused of smoking cannabis while abroad. Cannabis consumption is a serious offense in South Korea and officials warn there will be no exceptions made.

Pacific island off the east coast of Australia Republic of Vanuatu has legalized medical cannabis as of last month. Only five licenses will be granted to the cannabis industry. Denver based cannabis firm Phoenix Life Sciences International issued a press release saying the company had received permission from the Vanuatu government to manufacture pharmaceutical products.

Mexico is “absolutely” considering cannabis legalization in hopes of reducing trafficking and violence in lieu of the failing war on drugs. Currently Foreign Minister Marcelo Ebrard said the country could adopt either the Canadian or Uruguay legalization model.

Canada legalizing cannabis could help change US perspectives on the substance. Cannabis reform legislation has been introduced in the Senate that President Trump has shown support for in the past. The legislation would exempt legal state cannabis activity from the Controlled Substances Act and protect banking institutions working with legal cannabis businesses.

US News

The FDA published a notice in the Federal Register on Oct. 10th that it will accept public comment on the international classification of cannabis. These comments will be considered in the meeting with the WHO regarding the abuse liability and diversion of these drugs.

This week until Oct. 27th, a nationwide series of free legal clinics will help those impacted most by marijuana convictions offering expungements, removals, seals, or to reclassify convictions of attendees. Immigration advice, health screenings, enrollment in social services, and voting registrations will be available depending on location. Expungement Fairs are scheduled this week in the Atlanta, Baltimore, Boston, Chicago, Denver, Detroit, Los Angeles, New Haven, Philadelphia, Prince George’s County, San Francisco, and Washington, DC areas.

Bougainville Ventures Inc. provides turnkey infrastructure and seed to sale services to licensed growers in Washington State, providing cultivation facilities, access to ancillary services such as recycling, soil remediation, equipment leases, property management, consulting, and advisory services and yield optimization technology.

California dispensaries recently received the go-ahead from state officials to sell medical and recreational adult use cannabis. However, it’s unclear when dispensaries will file the $275 paperwork to do so. Currently only two dispensaries have applied for amended operator licenses and are awaiting approval.

California cannabis enforcement agencies have recently proposed rules and regulations for California cannabis businesses. The DFA recently proposed a rule modification prohibiting companies from sharing certain types of premises with other license holders. Take a look at what the DFA is proposing and how to comment on the process before Nov. 5th.

Ex Speaker of the House and serving on the advisory board for cannabis firm Acreage Holdings John Boehner announced his full support of the cannabis industry. Boehner said it’s not a matter of if but when will cannabis be legalized, urging investors to go all in on cannabis.

Watch the latest video at foxnews.com

Florida’s GrowHealthy Holdings LLC a vertically integrated cannabis operator announced the opening of its newest distribution center in Deerfield Beach. GrowHealthy promises to receive and deliver orders within 24 hours seven days a week, and local orders to Deerfield can be delivered within 4 hours.

Gallup released a poll Monday showing that 66% of Americans want to legalize cannabis, more than those who want to legalize gay marriage. The uptick in support is due to state adult use legalizations, medical in a majority of states, and Canada.

Medical cannabis now has a face in the Virginia Lobbying world called CannabisVA, a trade association focused on the economic and medical opportunities that would be beneficial to the state.

San Francisco Supervisors voted to create a committee to oversee the city’s growing cannabis industry and enforce regulations. The Cannabis Oversight Committee, made up of stakeholders in the industry, will advise the Board of Supervisors and Mayor London Breed on cannabis industry issues, regulations, and enforcement.

Lakeport California is weighing in on five new cannabis cultivation licenses for the county and a fee reduction for grow permits. The fee reduction is expected to be approved and will reduce costs from $5,073 to $4,160.

Canada News

The Ontario Cannabis Store, the only legal place to purchase cannabis in the province, received more orders than all other provinces combined. Due to Canada Post strikes and skyrocketing demand, Ontario Cannabis Store is asking for consumer patience as it works to fulfill orders with a contingency plan.

Though Canada just legalized cannabis there will be no branding opportunities for a while. Stores are entirely different from the display stores carrying brand name products. Canadian customers are greeted with menus and given generically packaged products decorated with warning labels and information on THC and CBD potency.

In the first five days of Canadian cannabis legalization Alcanna, who operates five Nova Cannabis retail locations, raked in approximately $1.3M, averaging over $50K per day per store. These numbers reflect Alberta’s few retail locations and the novelty of legalization.

Science

Check out this interview about the future themes of cannabis testing with senior scientist of the analytical and diagnostic company Agilent Technologies and visiting professor at John Hopkins School of Medicine, Anthony Macherone.

A study on mice found that Liverwort, a moss like plant, has similar effects as THC, and in fact the molecular makeup is very similar. Researchers are looking into the possible medicinal properties of liverwort.

Stanford University researchers formed biotech company Katexco Pharmaceuticals to develop oral cannabis-based therapies for inflammatory diseases like Crohn’s disease, gout, and multiple sclerosis.

Evio Inc. of Bend Oregon, a cannabis testing and research firm. announced the launch of Genomics Testing Program for Pathogen Identification in cannabis. The DNA sequencing service will surveillance pathogens in grow environments.

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