This Week in Cannabis Investing September 20th


It was a different down-week in the cannabis sector. The extended-overdue (and significantly awaited) rally for North the American cannabis business has but to arrive. For accurate investors, this supplies extra time to shop about for the finest bargains amongst marijuana stocks.

There is nevertheless lots of news to track in the cannabis space. In the U.S., respiratory illnesses (and deaths) have resulted from unregulated/partially-regulated vaping goods. This has place even extra stress on the federal government to legalize cannabis – so that cannabis can be effectively/totally regulated. That is only one particular of quite a few significant regulatory concerns at present looming for the U.S. cannabis business.

Monday, The Seed Investor started the week debunking extra anti-cannabis myths. Particularly, we discovered proof that legalized cannabis is essentially drawing escalating numbers of U.S. migrants into cannabis-legal states.

This parallels a preceding survey that showed that 25% of vacationers going to the state of Colorado from 2014 to 2018 cited “legal cannabis as a explanation for their stop by. Although a lot of politicians in the U.S. stay cannabis-phobic, a widening majority of Americans are enthusiastically embracing cannabis legalization.

Then we took a different appear at one particular of the difficulty markets for the U.S.’s legal cannabis business: California. Even as the state launches a new (high priced) ‘War on Drugs’ law enforcement campaign against its cannabis black industry, the quantity of cannabis licenses in the state has shrunk in 2019.

This is due to each the complexity of cannabis regulation in the Golden State as effectively as a main overhaul to the complete regulatory framework. Sadly, that overhaul didn’t deal with the principal difficulty in California’s cannabis business: regional government.

Quite a few of California’s counties stay either partially or entirely off limits for the legal cannabis business. These counties have refused to endorse cannabis legalization in spite of the will of the voters in approving legalization by state ballot.

Tuesday, we reported on escalating stress on the FDA to (lastly) make a national regulatory framework for CBD goods in the U.S. This is specially crucial for hemp-derived CBD, which is supposed to be totally legal in the U.S. following passage of the Farm Bill 2018. Political stress is coming from quite a few directions, such as a bipartisan letter becoming circulated via Congress straight on this topic.

Then The Seed Investor took a rapid appear at the new endeavors of Bruce Linton, the former CEO of Canopy Development (US:CGC / CAN:WEED). Although a frequent target of pot-shots from the (grossly uninformed) mainstream media, Linton remains a respected figure inside the cannabis business. Amongst his new roles is as an “activist investor” for U.S. cannabis branding leader, SLANG Worldwide (CAN:SLNG / US:SLGWF).

Wednesday, we focused on the Secure banking bill that has been on the table in Congress for quite a few months now. Assistance is creating for its passage, such as stress from the banking business itself to make cannabis financing in the U.S. a reality.  One-third of the Senate has now signed on as co-sponsors of the legislation.

Then we zeroed-in on a “weapon” that the U.S. federal government has been making use of against the legal cannabis business: anti-trust laws. For 30 years, U.S. politicians have pretty much entirely ignored these laws – as the world’s biggest multinational corporations have been permitted to purchase up and merge with every other.

Even so, when two cannabis organizations (1/100th this size) want to combine, abruptly U.S. politicians have dusted off these guidelines to undermine the legal cannabis business. We pointed out that U.S. cannabis organizations requirements to be in a position to consolidate, to produce sufficient efficiency and economies of scale to compete with black industry cannabis. There is no justification of any type for the U.S. government to be rejecting cannabis offers on “anti-trust” grounds.

Also on Wednesday, The Seed Investor alerted cannabis investors to extra concerns with regards to cannabis legalization in New York. In an MSNBC interview, Governor Cuomo expressed his robust opposition to smoking cannabis. He also opined (primarily based on private ignorance) that cannabis customers didn’t will need access to cannabis dried flower due to the fact the THC in the cannabis plant could be extracted.

But THC is just one particular of roughly 100 cannabinoids in the cannabis plant. A expanding physique of scientific proof suggests that it is the mixture of these ~100 cannabinoids (along with terpenes and flavonoids) that make the complete medicinal/overall health advantages from cannabis. If Cuomo imposes a smoking ban as a situation for complete legalization, he merely guarantees that New York’s cannabis black industry will continue to thrive. Or, the legalization bill will merely fail once more – as occurred earlier this year.

Thursday, The Seed Investor shifted its gaze north of the Border. We supplied cannabis investors with but extra examples of the gross ineptitude of Ontario’s government in rolling out legalized cannabis in that province. Merely, Ontario has completed anything incorrect.

As Canada’s biggest province, this has had an enormously damaging influence on Canada’s legal cannabis business. And as we observed in our most current coverage of this regulatory train-wreck, there is small sign of the predicament enhancing in the close to future.

We then looked at anything good in the cannabis business. We supplied but extra coverage of the expanding connection in between cannabis and sports, each amateur and qualified. An professional who has worked with extra than 100 planet and national athletic champions listed 7 methods in which medicinal cannabis can enhance athletic functionality – by enhancing the overall health of athletes.

As The Seed Investor observed, all of these overall health advantages becoming derived by elite amateur and qualified athletes are offered to all of us from the therapeutic use of cannabis. This reinforces preceding articles reporting that cannabis is becoming the recreational drug-of-decision amongst educated specialists.

Friday, we wrapped up the week by noting that a (former) cannabis heavyweight in Israel’s emerging cannabis business has shifted its concentrate. Private firm, Tikun Olam has entirely sold off its Israeli assets, but the firm is moving into other cannabis jurisdictions – notably the huge-and-expanding California cannabis industry.

Tikun Olam controlled roughly 40% of Israel’s medicinal industry for cannabis. Israel is also one particular of the international R&ampD leaders in the cannabis business. But the firm was becoming restricted from additional development in Israel. As management looked to redeploy its cannabis experience (and assets), they saw California as a premier location.

As North American cannabis investors grapple with particularly depressed valuations in the cannabis business, a lot of “heavy hitters” in the corporate planet continue to flock toward the emerging cannabis sector.



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