Can This Pot Stock Pullback Equal Gains for Investors?

Can This Pot Stock Pullback Equal Gains for Investors?




Can This Pot Stock Pullback Equal Gains for Investors? | Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™























Published at Thu, 24 Sep 2020 20:13:56 +0000

Preparing for Early Frosts: Q&A with Veritas Farms’ Derek Thomas

Preparing for Early Frosts: Q&A with Veritas Farms’ Derek Thomas

In early September, a sudden frost stretched across portions of Colorado and neighboring states, causing alarm for hemp farmers just weeks out from harvest. In some cases, highs dropped to around the freezing point; lows hovered in the 20s.

In ideal conditions, hemp is harvest before any frost hits the farm. The crop tends to be somewhat “frost-tolerant,” as the University of Vermont’s 2018 Hemp Cold Tolerance Trial lays out, but farmers should certainly watch out for related changes in moisture levels and even more unusual effects, like branches snapping under the weight of attendant snow. 

We spoke with Derek Thomas, vice president of business development at Veritas Farms, a Pueblo, Colo.-based hemp operation, to get a sense of how his company monitors the twists and turns of weather patterns in late summer and early fall. In Pueblo, Veritas got away from the early frost with its 140 acres of hemp fairly unscathed.

But this wasn’t the first time a sudden temperature drop has affected the farm, and lessons abound for all farmers eager to adjust their pre-harvest protocol.

Eric Sandy: What was early September like for Veritas Farms? And what sort of weather monitoring system is in place for the company?

Derek Thomas: It’s such an important topic, especially for a fully vertically integrated brand, because ultimately our crop is our commodity. It’s our lifeblood. So, we’re very cautious. We’re very considerate and we’re always monitoring. We have a number of SOPs implemented at the farm, which help us mitigate any severe weather concerns, both from a monitoring perspective and an action item standpoint. So, we knew that [this early frost] was coming, unfortunately, and we prepped the best we could and we took action immediately after.

And the damage was pretty negligible this year. We really kind of came out of it unscathed. Where we are, the temperature of the day before was a nice 80 degrees, and the snow really melted before the end of the day. So, the ground stayed nice and warm, and the roots of the plants stayed pretty warm. We were pretty fortunate, at least in our neck of the woods, that no real damage was done.

ES: What are some of the red flags or warning signs that farmers might want to watch out for when we’re talking about those colder temperatures and snowy situations?

DT: You know, it’s definitely going to depend where you’re at in your growing cycle. When we’re coming into late summer and early fall, that’s obviously when a lot of plants are pretty far along in the process. You’re really monitoring humidity levels and ground temperature, but anything that trends toward freezing is when we start to monitor and engage— anything in the low 50s, in the 40s, that’s when we’re starting to pay attention. The closer we get to freezing, that’s where more of our thresholds are triggered in terms of additional monitoring or even action items. So, it’s really the temperature that we’re monitoring the hardest.

Actually, two years ago, we had another early frost and it was quite a bit more severe. It triggered a bit of an early harvest and it also inspired us over the past year to play around with some new genetics. And that’s another reason why we were really fortunate this year that that frost has affected us even less. The plants on our farm are a little bit squattier. They’re not the really tall kind of plants that you see in some other areas of the country. They’re really squatty. And they’re really hearty and sturdy. We didn’t really have to worry about branch breakage from the weight of the snow. And the ground didn’t necessarily freeze, so that was really good for us.

In fact, from what we’ve seen so far this year, the frost actually might’ve benefited us a little bit. It causes a swelling in the moisture inside of the plant. And, really, what we’re noticing is that our buds are a little bit swollen in a good way. We’re not forecasting any type of negative impact from that snow.

ES: Hemp crops are, of course, in many situations, outdoors and fairly vulnerable to the elements. Are there any physical defenses that might be helpful to think about—whether that’s a literal covering or anything like that?

DT: I know that we haven’t done [that] yet because we’re talking about acres and acres and acres. I think that it could help a smaller grow. That might be more feasible. I’m not sure that the infrastructure exists yet for some type of large-scale covering. Although I do know that’s kind of a standard practice in some other agricultural commodities.

One of the main things that we look to do is monitor the water supply of the plants. The less water that is in the ground around the roots before frost, the less chance you have of freezing those roots, which is obviously something that we definitely want to avoid. Depending on the length and severity of the frost, this is really going to depend on some of the actions that you put in. The first one that we always go to is monitoring the moisture level in the ground, because the last thing you want is for the ground to freeze.

Published at Thu, 24 Sep 2020 13:06:00 +0000

Tropizen Announces First Outdoor Cannabis Harvest

Tropizen Announces First Outdoor Cannabis Harvest

In early September, a sudden frost stretched across portions of Colorado and neighboring states, causing alarm for hemp farmers just weeks out from harvest. In some cases, highs dropped to around the freezing point; lows hovered in the 20s.

In ideal conditions, hemp is harvest before any frost hits the farm. The crop tends to be somewhat “frost-tolerant,” as the University of Vermont’s 2018 Hemp Cold Tolerance Trial lays out, but farmers should certainly watch out for related changes in moisture levels and even more unusual effects, like branches snapping under the weight of attendant snow. 

We spoke with Derek Thomas, vice president of business development at Veritas Farms, a Pueblo, Colo.-based hemp operation, to get a sense of how his company monitors the twists and turns of weather patterns in late summer and early fall. In Pueblo, Veritas got away from the early frost with its 140 acres of hemp fairly unscathed.

But this wasn’t the first time a sudden temperature drop has affected the farm, and lessons abound for all farmers eager to adjust their pre-harvest protocol.

Eric Sandy: What was early September like for Veritas Farms? And what sort of weather monitoring system is in place for the company?

Derek Thomas: It’s such an important topic, especially for a fully vertically integrated brand, because ultimately our crop is our commodity. It’s our lifeblood. So, we’re very cautious. We’re very considerate and we’re always monitoring. We have a number of SOPs implemented at the farm, which help us mitigate any severe weather concerns, both from a monitoring perspective and an action item standpoint. So, we knew that [this early frost] was coming, unfortunately, and we prepped the best we could and we took action immediately after.

And the damage was pretty negligible this year. We really kind of came out of it unscathed. Where we are, the temperature of the day before was a nice 80 degrees, and the snow really melted before the end of the day. So, the ground stayed nice and warm, and the roots of the plants stayed pretty warm. We were pretty fortunate, at least in our neck of the woods, that no real damage was done.

ES: What are some of the red flags or warning signs that farmers might want to watch out for when we’re talking about those colder temperatures and snowy situations?

DT: You know, it’s definitely going to depend where you’re at in your growing cycle. When we’re coming into late summer and early fall, that’s obviously when a lot of plants are pretty far along in the process. You’re really monitoring humidity levels and ground temperature, but anything that trends toward freezing is when we start to monitor and engage— anything in the low 50s, in the 40s, that’s when we’re starting to pay attention. The closer we get to freezing, that’s where more of our thresholds are triggered in terms of additional monitoring or even action items. So, it’s really the temperature that we’re monitoring the hardest.

Actually, two years ago, we had another early frost and it was quite a bit more severe. It triggered a bit of an early harvest and it also inspired us over the past year to play around with some new genetics. And that’s another reason why we were really fortunate this year that that frost has affected us even less. The plants on our farm are a little bit squattier. They’re not the really tall kind of plants that you see in some other areas of the country. They’re really squatty. And they’re really hearty and sturdy. We didn’t really have to worry about branch breakage from the weight of the snow. And the ground didn’t necessarily freeze, so that was really good for us.

In fact, from what we’ve seen so far this year, the frost actually might’ve benefited us a little bit. It causes a swelling in the moisture inside of the plant. And, really, what we’re noticing is that our buds are a little bit swollen in a good way. We’re not forecasting any type of negative impact from that snow.

ES: Hemp crops are, of course, in many situations, outdoors and fairly vulnerable to the elements. Are there any physical defenses that might be helpful to think about—whether that’s a literal covering or anything like that?

DT: I know that we haven’t done [that] yet because we’re talking about acres and acres and acres. I think that it could help a smaller grow. That might be more feasible. I’m not sure that the infrastructure exists yet for some type of large-scale covering. Although I do know that’s kind of a standard practice in some other agricultural commodities.

One of the main things that we look to do is monitor the water supply of the plants. The less water that is in the ground around the roots before frost, the less chance you have of freezing those roots, which is obviously something that we definitely want to avoid. Depending on the length and severity of the frost, this is really going to depend on some of the actions that you put in. The first one that we always go to is monitoring the moisture level in the ground, because the last thing you want is for the ground to freeze.

Published at Thu, 24 Sep 2020 15:50:00 +0000

Cannabis Global, Inc. (OTCMKTS:CBGL): Four Reasons to Take a Closer Look

Cannabis Global, Inc. (OTCMKTS:CBGL): Four Reasons to Take a Closer Look

We have made the case that we believe the bottom formed in the cannabis space in March of this year represents a cyclical bottom in an ongoing long-term structural bull expansion trend that has potentially decades in front of it. From that perspective, investors will be looking for opportunities to find early-stage long-term winners in the space now that could grant access to powerful returns over the long run.

With that basic framework in place, we take a look today at Cannabis Global, Inc. (OTCMKTS:CBGL), a leading cannabinoid products company with a number of interesting catalysts recently announced, imminently coming to fruition, and brewing under the hood.

“It’s been approximately one year since we reorganized the Company toward cannabinoid technologies and products,” commented CEO, Arman Tabatabaei.  “We have made substantial progress in our selected technology areas, and based on these innovations, we have designed a revolutionary set of products, which are now rolling out into the marketplace.  I am pleased to offer our investors and the industry the following summary of activities and insight into our direction for this new fiscal year.”

That brings us to the four key avenues of expansion we see right now in CBGL.

Key Diversification

The company recently put out an update that covers its most important developments over the past year.

One key point was its recent acquisition of a key stake in a fully licensed cannabis manufacturing and distribution business operation located in Lynwood, California, operating under the name Natural Plant Extract of California, Inc. (“NPE”).

This move gives the company exposure to a Type 7 California Manufacturing License as well as a California Distribution license. The stake cost them just over $2 million and stands to grant them a solid channel of financial performance, while diversifying the company’s exposure to the cannabis plant as a business commodity, including direct access to current revenue growth, which is important given the company’s current positioning.

In addition, as noted in the release, the acquisition represents a strategic horizontal expansion of the company’s core technologies beyond hemp and CBD into California’s legal recreational and medical cannabis sectors.

Key Innovations

Cannabis Global, Inc. (OTCMKTS:CBGL) has also been busy on the R&D side, developing important IP and proprietary technology.

To that end, in the past year, the company filed six provisional patent applications. In its release, the company noted that it feels the most important of these provisional patents have to do with new methods to produce highly loaded polymeric nanoparticles, powderization technologies for hemp extract containing honey, and the single-serving tableting technology for beverage infusion.

That technology sets the stage for the company’s recent expansion in products, including coffee pods and alcohol-substitute cocktail mixers.

In addition, the company also discovered a proprietary process to produce Tetrahydrocannabivarian (THCV) in commercial quantities, and it is currently involved in research to add to the evidentiary profile of THCV with a study using mice. Progress here could give CBGL something like a near monopoly on a potentially very marketable cannabinoid with big things ahead. As noted in its release, “During the year, the Company developed new methods to produce nanoparticles of THC-V and other cannabinoids filing provisional patents on both the methods and the particles produced.”

Cannabis Global, Inc. (OTCMKTS:CBGL) is also continuing its R&D program in the area of tablet technology for single-serving beverages having recently filed a provisional patent relative to these areas. As noted in its release, additional filings are expected over the coming weeks.

New Products

The company has also been very aggressive with the development and commercialization of new products in the hemp, cannabis, and CBD marketplace.

For example, during the year, the Company developed Hemp You Can Feel technology based on powdered water-soluble preparations developed by the Company.  Marketed in cocktail mixers, the Company believes this is the industry’s first real alcohol replacement technology. We are in the process of placing the alcohol mixers in a major distribution company to maximize our exposure to customers.

In addition, based on the technology innovations developed through the previous fiscal year, Cannabis Global has developed multiple innovative products with coffee, Kombucha, and cocktail mixer products currently being marketed. Additionally, the Company is in production for both its hemp-based sweetener products and its highly innovative THC-V tea product line.

Expanded Distribution

Finally, Cannabis Global, Inc. (OTCMKTS:CBGL) is marching toward expanded distribution for its expanding stable of commercially available products.

According to the company’s release, “Moving into the newly commenced fiscal year, the major emphasis of the Company is expanding distribution channels for the highly innovative product lines.  To this end, the Company has recently begun an affiliate marketing campaign and is now offering products on the Amazon and RXLeaf platforms.  The Company plans to also begin marketing its alcohol-free cocktail mixers on Amazon with two cocktail mixers SKUs delivered to Amazon this week.”

That suggests the R&D has an outlet in the form of new products ready for market, and those products have an outlet in the form of an expanding connection with interested end-market consumers.

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Mon, 21 Sep 2020 06:13:58 +0000

Ethos Cannabis Announces Official Entrance into Maryland Market

Ethos Cannabis Announces Official Entrance into Maryland Market

September 23th, 2020 – Maryland. – PRESS RELEASE – Ethos Cannabis, a multi-state operator with operations and investment interests in Pennsylvania, Massachusetts, Florida and Arizona, has officially acquired the right to manage and ultimately purchase Maryland medical cannabis dispensaries of 4Front Ventures Corp., which are currently operated under the Mission brand. Ethos is acquiring the rights to manage and ultimately own three operational dispensary licenses in Rockville, Catonsville and Hampden, Md., which are all in the Baltimore and Washington, D.C. areas.

RELATED: Ethos Cannabis to Acquire Seven of 4Front Ventures’ Mission Dispensaries

Ethos is focused on serving mainstream consumers and further developing the health and wellness market to help individuals feel and live better through their experiences with cannabis. The transaction for the rights to manage and ultimately own the Maryland dispensaries had been pending final regulatory approval from the Maryland Medical Cannabis Commission, which is now complete. All existing locations will be rebranded from “Mission” to “Ethos.”

The transaction regarding the Maryland dispensaries comes following the raising of over $50 million in debt and equity completed by Ethos. To date, the company has raised approximately $90 million of capital predominantly from investors based in the Philadelphia area. Ethos has a strong focus on the strategic deployment of capital with prioritization of execution and the development of its platform in several core markets, including Maryland.

“The acquisition of the Mission dispensaries in Pennsylvania and the right to manage and ultimately acquire the dispensaries in Maryland represent a highly strategic step forward in the growth of Ethos in new markets. Developing a mainstream oriented, vertically integrated platform with a core focus on retail and the expansion of the health and wellness market through relationships with academic medical institutions like Thomas Jefferson University are at the core of our strategic objectives at Ethos. These transactions follow our pursuit of growth in other key target markets for our company,” said Teddy Scott, Chief Executive Officer of Ethos and the founder and former Chief Executive Officer of Pharmacann.

RELATED: Ethos Cannabis and Jefferson University Launch Their First Studies Under Pennsylvania’s Medical Cannabis Research Program

David Clapper, President of Pennsylvania and Chief Financial Officer, added, “This is a very exciting time for Ethos as an organization. After closing on our recent financing round, we have capitalized on an excellent opportunity to add core retail assets in attractive markets including Maryland that are highly prioritized on our strategic roadmap.”

Published at Wed, 23 Sep 2020 17:45:00 +0000

Scooping Up Value in Live Sports Stocks (WWE, BTDG, MSGS, CHDN)

Scooping Up Value in Live Sports Stocks (WWE, BTDG, MSGS, CHDN)

One area of the economy bit by the Covid-19 pandemic health crisis where stock investors may have massively overdone their fears is the live sports space.

It’s always the same: we see how something can’t work, but we can’t see the plasticity inherent in the process and the degree to which people, working together, with everything on the line, will invariably find new ways to make it basically work out okay.

It should be listed as a sort of natural law. And now, with the successful return of live sports, we may be seeing yet another confirmation of this principle. No big crowds? No problem. Pay-per-view and streaming coverage is booming. And sports venues have adapted to allow media production that makes the competition in many ways even more interesting.

This has been strikingly on display with the (so far) very successful launch of the 2020 NFL season. With that in mind, we take a look here at some of the most interesting names in the space, including: World Wrestling Entertainment Inc (NYSE:WWE), B2Digital Inc (OTCMKTS:BTDG), Madison Square Garden Sports Corp (NYSE:MSGS), and Churchill Downs Inc (NASDAQ:CHDN).

World Wrestling Entertainment Inc (NYSE:WWE) may not be a “real sports” company, but its audience and end product is effectively lined up in the same niche. The company is an integrated media and entertainment outfit that engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

It operates through three segments: Media, Live Events, and Consumer Products. The Media segment engages in the production and monetization of long-form and short-form media content across various platforms, including WWE Network, pay television, and digital and social media, as well as filmed entertainment. The Live Events segment is involved in the sale of tickets, including primary and secondary distribution; provision of event services; and sale of travel packages related to its live events.

World Wrestling Entertainment Inc (NYSE:WWE) just announced that Steve Pamon, President and Chief Operating Officer of Parkwood Entertainment has been elected to its Board of Directors. “Steve brings an extraordinary track record from the media and entertainment industry and is an accomplished senior executive,” said Vince McMahon, WWE Chairman & CEO. “I am confident his experience and insights will add tremendous value to our company.”

According to the release, as the President & Chief Operating Officer of Parkwood Entertainment founded by global entertainer Beyoncé in 2010, Pamon oversees an extensive global media portfolio, including artist management, music production, concert tours, motion pictures, television specials and consumer products. Throughout his tenure, he has achieved critical and commercial success as evident in the Super Bowl 50 Halftime Show, Lemonade visual album, The Formation World Tour, Netflix’s Homecoming documentary and the Disney+ film, Black Is King, among many others.

Even in light of this news, WWE has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -13%.

World Wrestling Entertainment, Inc. (NYSE:WWE) generated sales of $223.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -23.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($547.9M against $544.3M).

B2Digital Inc (OTCMKTS:BTDG) is a growing player in the mixed martial arts (MMA) space. The company styles itself as effectively the farm league for the UFC, which is the big pro league in MMA.

The company operates live events, pay-per-view media, gyms, and other resources to maximize the development of future stars in the MMA sport.

B2Digital Inc (OTCMKTS:BTDG) most recently announced another expansion step, nabbing yet another state license (Kansas) to bring the company to 11 states where it can hold live MMA fight events and broadcast them to the world over its pay-per-view and streaming distribution network of relationships and through its partnership with PrestoSports.

“We continue to aggressively pursue geographic expansion in terms of our LIVE event footprint, and our move into the Kansas marketplace will tap into a wealth of value and continue to drive exciting growth for our brand and shareholders,” commented Greg P. Bell, Chairman & CEO of B2Digital. “Kansas has a tremendous MMA, fitness, and live sports culture, and we look forward to building our new Blaze MMA brand of the B2 Fighting Series in the fighting sports community.”

Adam Roorbach, Executive Director, Kansas City Athletic Commission, added, “We are excited to bring the B2 Fighting Series into Kansas for compelling live sports action. We are constantly working to attract MMA sports organizations to bring their events to Kansas, and the growing success of the B2 Fighting Series made it a natural choice. Kansas has become a destination for some of the top MMA organizations in the world, and our tremendous fight fans are a large reason why. We also welcome the exposure that B2Digital will bring as it broadcasts Kansas-based live events out to the world.  The KAC is committed to the health and safety of all involved, and will work with B2 Fighting Series to ensure a healthy environment for all.”

If you’re long this stock, then you’re liking how it has acted over the past couple months. If you’re not, it may deserve a look given the pullback over recent days.

B2Digital Inc (OTCMKTS:BTDG) pulled in sales of $169K in its last reported quarterly financials, representing top line growth of 155%. In addition, the company is stocking over $75K on hand in liquid cash assets. But the big numbers appear to be ahead as it scales up in a very rapidly growing marketplace that’s likely to only get stronger as we gradually move past the pandemic.

Madison Square Garden Sports Corp (NYSE:MSGS) is a professional sports company with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL); two development league teams, including the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL); and esports teams.

The company also owns two professional sports team performance centers, including the MSG training center in Greenburgh, New York and the CLG performance center in Los Angeles, California. Madison Square Garden Sports Corp. was formerly known as The Madison Square Garden Company.

Madison Square Garden Sports Corp (NYSE:MSGS) recently announced that David Hopkinson – an accomplished executive with more than 25 years of diverse sports industry experience – has been named Executive Vice President MSG Sports, President Team Business Operations.

According to the release, in his role, Mr. Hopkinson will lead the commercial strategy for MSG Sports’ portfolio of assets, which includes: the New York Knicks (NBA) and New York Rangers (NHL); two development league teams – the Westchester Knicks (NBAGL) and Hartford Wolf Pack (AHL); and esports teams through Counter Logic Gaming, a North American esports organization, and Knicks Gaming, an NBA 2K League franchise.

The stock has suffered a bit of late, with shares of MSGS taking a hit in recent action, down about -8% over the past week.

Madison Square Garden Sports Corp (NYSE:MSGS) managed to rope in revenues totaling $-7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -102.6%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($90.7M against $290.3M, respectively).

Churchill Downs Inc (NASDAQ:CHDN) bills itself as an industry-leading racing, online wagering, and gaming entertainment company anchored by our iconic flagship event – The Kentucky Derby. The company owns and operates Derby City Gaming, a historical racing machine facility in Louisville, Kentucky.

It also owns and operates the largest online horse racing wagering platform in the U.S., TwinSpires.com, and sports betting and iGaming through its BetAmerica platform in multiple states. CHDN is also a leader in brick-and-mortar casino gaming with approximately 11,000 slot machines and video lottery terminals and 200 table games in eight states.

Churchill Downs Inc (NASDAQ:CHDN) most recently announced its plans to open simulcast and historical racing machine operations at Oak Grove Racing, Gaming & Hotel in Oak Grove, Kentucky, to the public on Friday, September 18. According to the release, Oak Grove will debut 1,325 state-of-the-art HRMs with some of the best themes from Ainsworth, Scientific Games and International Gaming Technology. Dining and beverage options include Garrison Oak Steakhouse, two quick serve eateries, a coffee house, sports bar and luxurious lobby bar. The second phase of the Oak Grove project will open in October 2020 and will include a 128-room hotel, equestrian center, amphitheater, and RV Park.

“We have an exceptional team poised to deliver a premier entertainment experience and regional destination for Western Kentucky and nearby Nashville, Tennessee,” said Bill Carstanjen, CEO of CDI. “We are committed to investments like Oak Grove that will help support live racing at Kentucky racetracks by generating larger purses and attracting better horses.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -5%.

Churchill Downs, Inc. (NASDAQ:CHDN) managed to rope in revenues totaling $185.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -61.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($699M against $488.2M).

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Published at Wed, 23 Sep 2020 04:38:13 +0000

Survey Shows Support For Marijuana Legalization Among South Dakota Voters

Survey Shows Support For Marijuana Legalization Among South Dakota Voters

Could marijuana legalization be on its way to South Dakota? As if 2020 couldn’t get any stranger, a new poll suggests that voters in the Mount Rushmore State could be ready to take the leap.

The survey, conducted by South Dakota-based marketing firm Lawrence and Schiller and conservative pollster Public Opinion Strategies on behalf of a group opposed to legalization, found that about 60 percent of voters intend to vote for Constitutional Amendment A, a proposal to allow adults aged 21 and over to use marijuana. 

There is, however, a significant caveat to the data. Constitutional Amendment A is not the only pot-related proposal on South Dakota’s ballot this November. There is also Initiated Measure 26, which would make medical cannabis legal in the state.

Read More

Published at Tue, 22 Sep 2020 17:03:35 +0000

Neptune Wellness Enters Strategic Distribution Partnership with Global CPG Company

Neptune Wellness Enters Strategic Distribution Partnership with Global CPG Company

Neptune Wellness Solutions, Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on natural, plant-based, sustainable and purpose-driven lifestyle brands, today announced an import and stocking distribution partnership with one of the world’s leading consumer goods companies, making and selling around 400 brands in more than 190 countries, for professional beauty, personal care and hygiene product lines generating potential sales revenue from as much as USD $65 million up to USD $137 million over the next 18 months based on the consumer product company’s and Neptune’s projections.

Neptune Wellness Solutions Logo (CNW Group/Neptune Wellness Solutions Inc.)

Neptune expects to receive first shipments of products into its inventory by the end of October 2020 . It should be noted that the distribution agreement does not require any minimum annual purchase commitments, acceptance of orders placed by Neptune are at the discretion of the global consumer product company. Accordingly, there is no certainty at this time that the full deal size will be realized.

The deal is consistent with Neptune’s B2B and B2C dual go-to-market strategy to serve consumers at both wholesale and retail levels, with the Company serving as the U.S. and Canadian master distributor for its partners’ products, including hand cleaning wipes and hand sanitizing wash and gels across commercial, industrial and institutional channels.

As a master distributor for the global CPG organization, Neptune additionally expects to expand its reach into major North American retailers to create new distribution opportunities for Neptune branded consumer packaged goods products.

“This is the latest in a growing list of partners, including national retailers in the club store channel, International Flavors & Fragrances, and others,” said Michael Cammarata, Chief Executive Officer and President of Neptune. “We believe these high-profile partners will help Neptune expand our distribution relationships and help us with our goal of bringing our own branded products to market.”

Dr. Toni Rinow , Chief Financial Officer and Global Operating Officer of Neptune, added: “We intend to develop long-term relationships with high-quality partners to steadily expand our revenue. At the same time, the business remains focused on innovation to drive revenue, and it is part of our core financial strategy to enhance margins and capitalize on asset-light innovations.”

ABOUT NEPTUNE WELLNESS SOLUTIONS, INC.:
Neptune Wellness Solutions is a diversified and fully integrated health and wellness company. With a mission to redefine health and wellness, Neptune is focused on building a broad portfolio of high-quality and affordable consumer products in response to long-term secular trends and market demand for plant-based, sustainable, and purpose-driven lifestyle brands. The Company utilizes a highly flexible, cost-efficient manufacturing and supply chain infrastructure that can be scaled up and down or into adjacent product categories to identify innovation opportunities, quickly adapt to consumer preferences and demand, and bring new products to market through its mass retail partners and e-commerce channels. Leveraging decades of expertise in extraction and product formulation, Neptune is a leading provider of turnkey product development and supply chain solutions to business customers across several health and wellness verticals, including legal cannabis and hemp, nutraceuticals, and white label consumer packaged goods. The Company has a strong position in cannabis and hemp research, development, and commercialization focused on the use of cannabinoids in household products to make them safer, healthier, and more effective. Neptune’s corporate headquarters is located in Laval, Quebec , with a 50,000-square-foot production facility located in Sherbrooke, Quebec , and a 24,000-square-foot facility located inNorth Carolina . For additional information, please visit: https://neptunecorp.com/ .

FORWARD LOOKING STATEMENTS:
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the U.S. securities laws and Canadian securities laws. These statements are based on certain factors and assumptions, including, the validity of the forecast provided by the global consumper company, anticipated demand for the products of the global consumer company, the volume of purchase orders placed by Neptune, the types of products that will be subject to purchase orders placed by Neptune,  prices at which the products will be purchased by Neptune and sold to its customers, the availaibility of sufficient cash or credit facilities for Neptune to fund its purchase orders,  expected financial performance,  the effect of the ongoing global COVID-19 public health emergency on the Company’s operations, business prospects, the ability of Neptune to sell the products purchased by it from the global consumer company and the price at which Neptune will sell such products and like matters. While Neptune considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes”, “belief”, “expects”, “intends”, “up to”, “projects”, “forecasts”, “anticipates”, “will”, “should” or “plans” to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. . Important factors that could cause actual results to differ materially from expectations include but are not limited to: that current customers will continue to make and increase orders for the Company’s products,and in accordance with communicated intentions (including in purchase orders), that the Company’s supply chain will be adequate to replace material supply and manufacturing, Company liquidity and capital resources, including the availability of additional capital resources to fund its activities, level of competition, changes in laws and regulations, legal and regulatory proceedings, the ability to adapt products and services to the changing market, the ability to attract and retain key executives and the ability to execute strategic plas.  Past performance is not guarantee of future performance and readers should not rely on historical results as an indication of future results. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the “Cautionary Note Regarding Forward-Looking Information” section contained in Neptune’s latest Annual Information Form (the “AIF”), which also forms part of Neptune’s latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com , on EDGAR at www.sec.gov/edgar.shtml and on the investor section of Neptune’s website at www.neptunecorp.com . All forward-looking statements in this press release are made as of the date of this press release. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under “Risk Factors”.

Revenue forecasts herein constitute future–oriented financial information and financial outlooks (collectively, “FOFI”), and generally, are, without limitation, based on the assumptions and subject to the risks set out above under “Forward–Looking Statements”. Although management believes such assumption to be reasonable, a number of such assumptions are beyond the Company’s control and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. FOFI is provided for the purpose of providing information about management’s current expectations and plans relating to the Company’s future performance, and may not be appropriate for other purposes. The FOFI does not purport to present the Company’s financial condition in accordance with IFRS, and it is expected that there may be differences between actual and forecasted results, and the differences may be material. The inclusion of the FOFI in this news release disclosure should not be regarded as an indication that the Company considers the FOFI to be a reliable prediction of future events, and the FOFI should not be relied upon as such.

Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

Cision

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SOURCE Neptune Wellness Solutions Inc.

Published at Tue, 22 Sep 2020 11:22:43 +0000

Why Canada Is The Natural Launch-Pad For The Psychedelic Drug Industry

Why Canada Is The Natural Launch-Pad For The Psychedelic Drug Industry

The emerging psychedelic drug sector was an opportunity in need of a base of operations.

Why is Canada becoming the natural destination for this industry? Why is this such an important question?

Major investment opportunity

The psychedelic drug industry has all of the ingredients necessary to become the “next big opportunity” in the highly lucrative life sciences space.

It has a driver.

The WHO has officially declared a “Mental Health Crisis”. It affects over 1 billion people around the world. It is expected to cost the global economy $16 trillion in lost productivity by 2030.

It has a market.

The mental health services market is already a $225.1 billion treatment market in the United States alone.

It has a competitive advantage.

Existing therapies for mental health conditions such as depression, addiction and PTSD suffer from appalling success rates for treatments currently on the market. Early clinical trials with psychedelic drug-assisted therapies are generating far superior clinical results.

It has the backing of market-makers.

Heavyweights from both Silicon Valley and Wall Street have been quick to get involved in building this industry. Big-name investors like Peter Thiel, Mike Novogratz and Tim Ferriss have personally invested in and lent their reputations to this new sector.

It has the funding.

Even at this early stage, psychedelic drug companies have cumulatively raised $100s of millions. Now one individual player – Compass Pathways – is raising over $127 million just for its IPO.

But where is the best launching-pad for this exciting opportunity?

Canada.

Canada: first for cannabis, first for psychedelics

There is no doubt that the United States represents the single largest potential market for psychedelic drug therapies. But it’s a terrible base of operations for an industry that requires both enormous regulatory movement and flexible capital markets.

Canada scores top marks in both of these categories. We can illustrate this by looking no further than the cannabis industry.

Canadian exchanges provided the access to public markets that permitted over 100 cannabis companies to raise billions in seed capital.

Canada’s government was the first major economy to fully legalize cannabis at the national level. And years after the cannabis industry was launched, it’s still well ahead of other nations in facilitating the development of a cannabis industry.

We already see strong parallels in the psychedelic drug sector.

Once again, it’s Canadian exchanges that have taken the lead in allowing psychedelic drug companies to go public.

More than a dozen psychedelic drug companies have public listings in Canada, led by emerging names such as MindMed Inc (CAN:MMED / US:MMEDF) and Champignon Brands (CAN:SHRM / US:SHRMF).

These companies are either new RTOs or IPOs, or else already-public companies (mostly cannabis companies) that have been allowed to add psychedelics-based operations to their business model.

Despite their microcap status, these public companies have collectively raised approximately $100 million already, led by MindMed – who has raised over $40 million itself.

Similarly, Canada is already (once again) showing political leadership on the regulatory front.

While most of these substances are still criminally prohibited in Canada, Health Canada has already begun to grant “medical exemptions” to allow patients with exceptional medical need to access psychedelic drug therapies.

An industry starts to take root

As previously noted, the participation of Wall Street and Silicon Valley corporate icons has already generated significant visibility and credibility for the psychedelics space.

What is another indication that this is a sector starting to come of age? The lawyers are moving in.
 

Last week, the Canadian legal publication Law Times highlighted the growing corporate involvement and increasing regulatory activity in the psychedelic drug industry in Canada.

Lawyers such as Jeffrey Merk, a partner at Aird & Berliss LLP are doing more and more business working with clients in the psychedelics industry as part of its corporate finance and commercial practice.
 

Merk advises public and private companies in the psychedelics space in capital raising transactions, private commercial matters, tax law, IP law, as well as labour and employment matters.

As mental health has expanded in the public consciousness, many are exploring the opportunities in alternative treatments available through psychedelic drugs, he says. Over the last two-to-three years, he has had clients involved in psychedelics emerge from both the capital markets and research and development streams of the industry.

Merk cited four types of psychedelics-related “business” that now regularly lands on his desk.
 

  • R&D-related work, especially with respect to drug patent law and other IP
  • Nutraceuticals work, especially with respect to the psychedelics companies also involved in the rapidly-growing functional mushrooms space
  • Providing legal services for psychiatric clinics that offer psychedelic-assisted therapies (at this stage of regulation, most commonly ketamine)
  • “psychedelic tourism”

Even at this early stage, Aird & Berliss is already fielding considerable interest from clients interested in legal psychedelic “experiences” – in jurisdictions like the Netherlands and Brazil.

A new industry is emerging with the potential to capture a $225 billion market – to address a multi-trillion-dollar crisis.

Canada stands front and center as a safe jurisdiction for this R&D with one of the most progressive regulatory environments – and close access to the huge U.S. market.

As IPO fever hits the psychedelics space, Psychedelic Stock Watch will be publishing an exclusive feature article on a new life sciences startup (based in Canada) that is well-positioned for this market.
 

Published at Sat, 19 Sep 2020 06:00:05 +0000

Investing In The Green Rush