Pot companies warned on promoting cannabis
It couldn’t all be smooth sailing for the early days of legal weed here in Canada, of course. Aside from supply shortages and shipping delays, since Oct. 17 Health Canada has issued warnings to seven cannabis producers for violating new federal laws on promoting marijuana. BNN Bloomberg’s David George-Cosh reports that the country’s cannabis regulator has contacted these so-far unnamed licensed producers, warning them that they are not in compliance of the Cannabis Act’s rules on promoting marijuana products, accessories or services.
Curaleaf makes public debut on CSE
There’s another billion-dollar cannabis company on the Canadian public market. U.S. cannabis producer Curaleaf Holdings started trading on the Canadian Securities Exchange Monday, sporting a nearly $6-billion valuation, reports BNN Bloomberg’s April Fong. The company operates in 12 U.S. states – including Florida, New York and Oregon – with 28 dispensaries, 12 cultivation facilities and nine processing sites. It’s the largest company to trade on the CSE after raising nearly $520 million in a private placement last week.
Hexo aims to make splash in Big Apple
Quebec-based Hexo is hoping to reap some of the capital rewards enjoyed by some of its peers, after announcing plans to list on the New York Stock Exchange later this year. Bloomberg’s Sandrine Rastello reports that Hexo CEO Sebastien St-Louis is hoping the listing draws more attention from global investors to his firm, which sees itself as a potential takeover target. Hexo shareholder Riposte Capital published a letter last month criticizing the company’s “severely depressed valuation,” urging it to sell itself or go private.
GMP revises cannabis firms’ revenue forecasts downward
With the rollout of legal cannabis facing a number of supply issues, GMP Securities analysts issued a report Monday that revised down their expectations on full-year revenues from some of the industry’s biggest pot companies. In one example cited by GMP, Ontario’s online pot store only has one strain of dried flower on the website for Canopy’s flagship Tweed brand, which GMP expects to impair Canopy’s ability to capture expected market share.
CannTrust announces Asia-Pacific expansion
Vaughan, Ont.-based CannTrust Holdings is looking to make a big move Down Under. The company announced Monday that it entered into a strategic partnership with Australian licensed producer CannaTrek. CannTrust is taking a 19.8 per cent stake in CannaTrek in a deal worth just $6 million. CannaTrek is currently building a 1.7 million square-foot greenhouse facility, one of the largest dedicated cannabis grow-ops in the world, that should provide “significant” supply for Asia-Pacific’s nascent medical cannabis sector.