Weed Stocks

Marlboro cigarette manufacturer Altria Group Inc. (NYSE: MO) has entered into discussions regarding the acquisition of cannabis producer, Cronos Group Inc. (NASDAQ: CRON). No deal has been reached at this time. Altria has also been rumored to be looking to acquire a minority stake in Juul, an e-cigarette company.

Monday, short seller Quintessential Capital Management’s Hindenburg Research alleged Aphria Inc. (NYSE: APHA) insiders used funds from dilutive share issuance to complete unfair acquisitions. Among the numerous allegations, Hindenburg said Aphria was guilty of making overvalued buyouts and posting fraudulent financial reports.

Investor Ideas Potcast features stocks to watch, cannabis news, and insights from inside players, thought leaders, and experts. This potcast features updates on 48North Cannabis Corp. (TSXV:NRTH), Canopy Growth Corporation (TSX:WEED) (NYSE: CGC), National Access Cannabis Corp. (TSXV: META), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Khiron Life Sciences Corp. (TSXV: KHRN), (OTCQB: KHRNF) and Namaste Technologies Inc. (TSXV: N) (OTCMKTS: NXTTF).

New Age Beverage Corp. (NASDAQ: NBEV) skyrocketed 18% in premarket trade on Monday. The Colorado CBD company announced a deal to buy Utah-based Morinda Inc. for $85M.

Monday, at the Kase Learning Short Selling Conference in New York, Chris Brown, a partner at long-short firm Aristides Capital, announced his firm has opened up a short position in Tilray (NASDAQ: TLRY). Brown called the cannabis industry a commodity business, and predicted the price of raw cannabis would come down aggressively over time. Tilray fell 2.7% after the hedge fund pitched its position in the company.

Innovation Shares filed a registration statement for a new cannabis ETF earlier this week. The ETF would use a broker-dealer as its custodian rather than a bank. Privately traded broker-dealers are capable of holding stocks on behalf of an investment company without the federal regulatory risks, making them perfect custodians.

Three cannabis stocks turned a legitimate profit in their recently ended quarter. Though Innovative Industrial Properties (NYSE: IIPR) revenues were only $3.93M, the low fixed costs of a REIT have allowed the company to be healthfully profitable. Trulieve Cannabis (NASDAQOTH: TCNNF) recognized $28.3M in sales and Charlotte’s Web Holdings (NASDAQOTH: CWBHF) produced an operating profit of $4M.

48North Cannabis Corp (TSXV: NRTH) announced Monday that it has completed the acquisition of Good & Green. The company also completed a $3M strategic investment financing agreement with Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) fulfilling a $10M private placement. As part of the acquisition, 48North also appointed Jean VanderMarel as co-CEO and a member of the company’s board of directors.

In an all-stock deal, Sunniva (OTCQB: SNNVF) announced that it will acquire San Diego based LTYR Logistics for up to CA$7.9M. LTYR will add a major piece to Sunniva’s vertically integrated seed-to-sale operations in California.

Global News

Monday Philippine President Rodrigo Duterte jokingly said he used marijuana to stay awake at a recent regional meeting in. Duterte, whose controversial war on drugs has cost thousands of lives, took an open stance against medical cannabis in May 2018. Possession of marijuana in the Philippines is punishable by a long prison sentence and heavy fine.

With New Zealand’s coming cannabis legalization referendum, the Cannabis Referendum Coalition is trying to give the ‘yes’ campaign a respectable face in an attempt to rebrand public perception of cannabis.

US News

Residents weighed in on recreational marijuana in New York on Monday, in a public hearing at Babylon Town Hall in Lindenhurst. Members of the state Assembly gathered input on legalization and how it has worked for other states.

Recreational marijuana will be legal in Michigan on Thursday. The Michigan Municipal League issued a document detailing issues with the language in the state’s recreational cannabis initiative. The report also highlights problems with the licensing and regulatory body of the recreational cannabis industry. The article also notes zoning restrictions, rules for prior marijuana convictions, and more.

Monday the Utah Legislature passed a bill in both the House and the Senate to replace the ballot initiative voters approved on Nov. 6. Governor Gary Herbert is expected to sign the bill. Critics of the bill have called the replacement measure an usurpation of the voters’ will. The bill also makes patient access to medical marijuana significantly more difficult.

Ohio’s wait for medical marijuana is coming to an end. Monday the state medical board authorized physicians to register patients and their care givers through the state’s online registration system. To qualify for the medical marijuana program patients must suffer from at least one of the 21 qualifying medical conditions recognized by the state. Dispensaries will be set to open in the coming weeks, however supply will be limited.

California News

Hundreds of marijuana products may have to be recalled after a state inspection uncovered the lab director of Sacramento-based Sequoia Analytical Labs had been falsifying cannabis product testing results for nearly four months.

Evio Inc., a provider of cannabis testing and research, announced it now meets California’s Phase 3 cannabis compliance testing requirements. Beginning January 1, 2019 the Bureau of Cannabis Control will require additional testing for terpenoids, mycotoxins, heavy metals, and water activity.

The Martinez City Council is poised to limit cannabis cultivation cultivation in an ordinance that would limit indoor grow operations to six plants. The ordinance also prohibits outdoor cultivation and commercial cultivation of marijuana.

Science

Shimrit Uliel-Sibony, MD, of Tel Aviv Sourasky Medical Center’s Dana Children’s Hospital, reported CBD tolerance developed in 32.6% of patients with treatment-resistant seizures who used cannabis oil for an average of 19.8 months.

Minnesota’s Department of Health announced Monday that Alzheimer’s will be added to its cannabis program. Although research on the effects of cannabis on Alzheimer’s is limited, some studies have found marijuana inhibits the formation of tau proteins that accelerate dementia and memory loss associated with the disease.

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