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Cannabis Cultivators Focus on Developing Stronger THC Blends As Demand Skyrockets

/PRNewswire/ — The cannabis industry has been fighting for legalization for decades. With each passing year, the cannabis industry matures and continues to…

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PALM BEACH, Fla., Feb. 1, 2021 /PRNewswire/ — The cannabis industry has been fighting for legalization for decades. With each passing year, the cannabis industry matures and continues to grow exponentially. The market value of the cannabis industry is projected by all industry reports to continue strong growth for several years to come. These projections comes at a time when cannabis remains federally illegal. As legalization grows, so will the size of the market, but also in the methods of production and cannabis consumer behavior. Approximately 36 states and 4 territories (District of Columbia, Guam, Puerto Rico and U.S. Virgin Islands) have enacted measures in the medical marijuana industry and recreational can’t be far behind… consumer demand is playing its part in shaping the successful product lines and brands. Recent reports are showing that consumers are demanding higher and higher THC levels/percentages. A recent report on recent trends by an industry insider, said: “What we’ve been seeing over the last few years, is an increasing demand for high THC strains. While we’re learning more about how the present terpenes in a strain might play a more important role in the effect or ‘high’, consumers consider their options in a simple way: highest THC for lowest cost. ” Active Cannabis companies in the markets this week include Tilray, Inc. (NASDAQ: TLRY), Christina Lake Cannabis Corp. (OTCPK: CLCFF) (CSE: CLC), Agrify Corporation (NASDAQ: AGFY), Sundial Growers Inc. (NASDAQ: SNDL), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED).

The report continued saying: “Cultivators have to play the game and stay on top of the preferred strains in the market. Or better yet, one step ahead. Tastes and preferences change very frequently in this market, partly fueled by breeders constant production of new cannabis strains.” It concluded: “Growers who have access to a breeder or employee who can start a program, would be wise to develop and name their own strains. When you’re the only producer of a certain strain, your competitive edge improves.”

Christina Lake Cannabis Corp. (OTCPK: CLCFF) (CSE: CLC.CNQ) BREAKING NEWS: “From Seed to Sale”: Fully Integrated Production Chain can Provide Unique Advantages to Christina Lake Cannabis in Commercializing Distillate Oils – Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”), is pleased to announce that one of its cannabis distillate oils has been certified to have a tetrahydrocannabinol (“THC”) concentration of 90.3% based on a certificate of analysis dated January 15, 2021 from a testing laboratory accredited by Health Canada. The Company recently announced its intent to primarily focus on producing cannabis distillate oils by extracting from its 2020 harvest of 32,500 kg / 71,650 lb of biomass grown under natural sunlight. Based on market demand for distillate oils, which typically contain THC concentrations in excess of 90%, the Company believes it is uniquely positioned in the cannabis marketplace to be a competitive supplier of distillate oils. Additionally, the Company is planning to blend cannabis-derived terpenes with its distillate oils, a combination which has only recently been requested in the Canadian cannabis industry despite being relatively common in other markets.

As a fully integrated producer of cannabis oils, the Company is favourably situated in the Canadian cannabis industry on account of its control over and visibility into the production chain. CLC has a genetic databank consisting of over 100 proprietary cannabis strains and a total inventory of over 600,000 seeds, which it began cultivating outdoors last spring at its facility in Christina Lake, British Columbia with over 950,000 square feet / 88,258 square metres of outdoor grow space. After harvesting and processing the crop, the Company then extracts oils from its dried biomass using its Vitalis R-200 CO2 extraction machine. This year, the Company has been successful in producing commercial quantities of market-ready winterized cannabis oil with distinct terpene profiles, which are sought-after for use in recreational products under Cannabis 2.0 for adult consumers ( e.g. , vapes, edibles, topicals) as well as in medicinal products.

In CLC’s January 13, 2021 press release, it was announced that the Company was beginning to produce ultra-high potency cannabis distillate oils, samples of which are presently undergoing independent third-party assessment of THC levels and other metrics. Distillate oils are not commonly used as a standalone product, but rather as an ingredient in products which could be enhanced through the addition of concentrated THC ( e.g. , food and beverage, personal care, cosmetics). Although the ability to produce cannabis distillate oils is not unique in and of itself, the Company benefits from several advantages it has as a fully integrated producer which can allow for lower risk, above-average profit margins, and greater supervision.

Cost of Raw Materials: Cultivating cannabis outdoors naturally using sunlight allows for substantially lower costs compared to growing in greenhouses or indoors. Given the ratio of dried biomass needed for each millilitre of cannabis oil, even small differences in the cost of biomass can have a significant effect on the profitability of a producer of cannabis extracts.

Robust Supply: Because the exact yield rate of distillate oil from dried biomass is not always known, producers of cannabis extracts often risk depleting their supply in the event that yields are lower than expected. As the Company’s inaugural harvest garnered 32,500 kg / 71,650 lb of biomass, CLC possesses a sufficient supply of raw material to handle this risk without a significant effect on profitability.

Extraction Costs: Extraction is a function that is typically outsourced by cannabis producers, which tends to be more costly than extracting in-house. The Company owns its Vitalis R-200 CO2 extraction machine and all ancillary equipment, and has extraction personnel on staff. As such, the Company’s relatively low costs of extraction could prove advantageous in reducing CLC’s net cost of producing cannabis distillate oils.

In-House Visibility: Another disadvantage of outsourcing cannabis extraction to a third party is a lack of ongoing visibility into the processes. Observations made during each step of the way from initial extraction to final distillation are crucial to ensuring a consistent and high-quality finished product, especially when controlling for operational variables and unique properties of specific strains. CLC’s extraction workflows are designed to gather insights in great depth, which can be analyzed collaboratively to make cultivation and business decisions based on observations from empirical data collected during extraction.

Joel Dumaresq, Chief Executive Officer and a director of the Company commented, “Part of our vision with Christina Lake Cannabis was not just to maximize the advantages that come from growing outdoors, but also integrating as much as we can into our in-house operations so that we can do things other licensed producers cannot necessarily do. There are many moving parts to any agricultural product ranging from the seed, to the setting in which it is grown, to techniques for cultivation, to harvesting, to post-harvest activities such as extraction. We have sought to bring all of this in house which can enable us not only to reduce costs, but also to oversee each and every step to ensure consistent quality. As we work towards making our first sales of cannabis extracts, it is becoming clear that we have done many things right, and we are confident that market reception could reflect this and give us the opportunity to further optimize our strategies for our second year of growing and beyond.” To read this and more news for Christina Lake Cannabis Corp., please visit https://www.financialnewsmedia.com/news-clc/

Other recent developments in the markets include:

Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis production, research, cultivation, and distribution, recently announced that it has been selected by the French National Agency for the Safety of Medicines and Health Products (ANSM) to supply Good Manufacturing Processes (GMP) certified medical cannabis products for experimentation in France. Tilray will supply GMP-produced medical cannabis products to serve patients in need for the duration of the French experiment (18-24 months), due to begin in the first quarter of 2021.

Tilray products will be administered to qualifying patients in the French experiment, for whom existing treatments do not provide sufficient relief from their symptoms, and for therapeutic indications. Tilray has received the necessary regulatory approvals to participate in the ANSM experimentation in France and will export medical cannabis products from its GMP-certified facility in Cantanhede,

Agrify Corporation (NASDAQ: AGFY), a developer of highly advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace, recently announced the pricing of its upsized initial public offering of 5,400,000 shares of common stock at a price of $10.00 per share for total gross proceeds of $54 million, before deducting underwriting discounts and commissions and offering expenses payable by Agrify. The shares of common stock began trading on the Nasdaq Capital Market under the symbol “AGFY” on January 28, 2021.

Maxim Group LLC and Roth Capital Partners are acting as joint book-running managers for the offering. Agrify has granted the underwriters a 45-day option to purchase up to an additional 810,000 shares of common stock to cover over-allotments, if any. The offering is expected to close on February 1, 2021, subject to customary closing conditions.

Sundial Growers Inc. (NASDAQ: SNDL) has recently launched high-quality cannabis derivative products under the Top Leaf brand in response to rising consumer demands for solventless cannabis extracts. This most recent launch is consistent with Sundial’s focus on premium inhalables, following branded retail offerings of flower, pre-roll and vape cartridges.

“We made a strategic decision to produce these premium products based on demand for solventless, flavorful, pure, and potent cannabis concentrates from a growing group of consumers,” said Andrew Stordeur, President and Chief Operating Officer of Sundial. “Our control of the entire manufacturing process from cultivation to extraction enables us to deliver premium quality products on a consistent basis. Adding bubble hash and other advanced concentrates to our product portfolio will expand Sundial’s share of this rapidly expanding market segment.”

Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), a world-leading diversified cannabis, hemp, and vaporization device company, recently announced the launch of Martha Stewart CBD for Pet – a new line of scientifically-backed CBD wellness solutions for canines developed by Martha Stewart with her own beloved dogs in mind.

The Martha Stewart CBD for Pet product portfolio includes oil drops and soft-baked chews in three gourmet flavor combinations and formulas – Wellness, Calm and Mobility – designed to support pet mental and physical well-being, reduce the effects of everyday stress, and maintain joint health and mobility by harnessing the power of CBD and other ingredients. The product packaging is inspired by Stewart’s own Chow Chows and French Bulldogs.

“My dogs are not only my companions, but they are part of my family, and I prioritize their emotional and physical well-being as I do my own,” said Martha Stewart. “Just as CBD can support human wellness, it’s been shown to improve the quality of life for pets as well. With the help of the scientists and veterinarians at Canopy Animal Health, I’ve created CBD oil drops and savory soft-baked chews designed to support the health of dogs of all ages, sizes and breeds in delicious gourmet flavors that your canines won’t be able to resist.”

DISCLAIMER: FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has been compensated forty five hundred dollars for news coverage of the current press releases issued by Christina Lake Cannabis Corp. by a non-affiliated third party. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

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Source: https://www.prnewswire.com/news-releases/cannabis-cultivators-focus-on-developing-stronger-thc-blends-as-demand-skyrockets-301218651.html

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Future Returns: Investing in the Cannabis Industry

As more states legalize the plant for recreational use, the sector presents both risk and reward

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“Over the long term if you pick the right horses in the sector, there’s still quite a lot of growth to be had,” says Matt Bottomley, equity research analyst at Canaccord Genuity in Toronto. Photo by Uriel Sinai/Getty Images)

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Several years ago Morgan Stanley did a poll of over 1,000 high-net-worth investors to see if they’d invest in legal cannabis. A full 65% said they were not likely to invest if cannabis were legalized in the next 12 months.

But Matt Bottomley, equity research analyst at Canaccord Genuity in Toronto, doesn’t hear this same level of objection to the industry today, and for good reason. “At the end of the day, I think the U.S. cannabis sector at maturity is probably US$80 billion to US$100 billion in sales,” he says.

The stigma once associated with cannabis has dropped off dramatically, and within the past month states including New York and Virginia, as well as Mexico, have either legalized it or announced plans to do so.

“You’re going to see it slowly, over the next years and decades transition from a more traditional consumer-packaged goods market,” Bottomley says. Presently, leading U.S. companies “are kind of doing everything in every market,” he says—from growing to producing, up to creating edibles and even operating retail in some markets. As legalization expands across the world, big pharma may look to get in on it, changing valuations.

Big-name companies trading in the U.S. such as Canopy and Tilray see their stock prices appreciate when pro-legalization stories hit the news. But because cannabis is still a Schedule I drug, meaning tightly regulated by the government, Bottomley says, “the fundamentals are not necessarily going to flow down to those types of companies.”

Meanwhile, leading American companies like Curaleaf or Trulieve trade on Canadian junior exchanges, less easily accessed by the overall U.S. retail investor market. He thinks there’s a tremendous amount of capital yet to come into this space. Many companies, he adds, are underserved by institutional investors as well.

“Over the long term if you pick the right horses in the sector, there’s still quite a lot of growth to be had.”

Here are three things Bottomley says to keep in mind when investing in the cannabis sector.

Take Stock of Your Risk Profile

Investors entering the cannabis market have to consider their risk thresholds. “All of our buys on cannabis stocks to date are all speculative buys, and we do have holds and sells as well,” Bottomley says.

The sector can be home to wild price swings where for weeks at a time stocks go in one direction, before pivoting and going the other way. If they consider a 2%-to-3% move in a day outside their risk threshold, it might not be for them. Especially because the “wild directions” stocks move in aren’t necessarily tied to company performance.

Bottomley says it also requires a lot of patience. “You really have to be comfortable about where you are on that growth curve and how far ahead of markets opening up—you want to invest your incremental dollar to get ahead of what could eventually be a very large push upward.”

Valuation is Relative

Cannabis is a sector where policy announcements about the future of legalization can cause stocks to move in the same direction, but investors can’t let that alone sway them. Even if every cannabis stock is moving up or down, and the shift seems uniform, Bottomley advises exercising caution.

Not every cannabis company has exposure to the same markets or regions. When looking at companies in the cannabis space, he says it’s necessary to see how they’re situated in markets relative to their peer group.

He offers the example of a Canadian company trading at 30 or 40 times its forward profitability metrics, or Ebitda (short for earnings before interest, taxes, depreciation, and amortization), but that lacks access to the U.S. market or other growth drivers.

“I prefer buying a company that’s trading at a lower multiple than that, but actually has that exposure,” he says. “That’s the first thing that I look at when I’m putting a rating to any of these companies that I cover.”

Understand the Management Team

For Bottomley, management teams and their philosophies are particularly important in the cannabis industry. “We’ve seen a lot of good case studies for huge success stories and a lot of case studies where things haven’t gone so well,” he says.

Prior to Covid-19, Bottomley went on a lot of site visits, meeting management teams. What benefits investors long term, he says, are companies that aren’t too aggressive with mergers and acquisitions, don’t overpay for assets and focus on core markets where they have competencies and market share. But this also means having good infrastructure, like call centers to support patients for medical cannabis companies, or adequate supply for and quantity of retail locations to gain market share.

“Management teams can be fairly aggressive with respect to their messaging,” Bottomley says, “and that’s fine if you can back it up, but I think that’s something investors have to be particularly careful of when they’re choosing which operators they want to back.”

“Over the long term if you pick the right horses in the sector, there’s still quite a lot of growth to be had.”

Source: https://www.barrons.com/articles/future-returns-investing-in-the-cannabis-industry-01619549824

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Cannabis Stocks: Why TLRY, APHA, OGI, GRWG, SNDL Stocks Are Getting High

Cannabis stocks like SNDL stock and GRWG stock are rallying today thanks to news that New York had legalized recreational marijuana.

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Cannabis stocks are on the rise today after some comments by Senate Democrats regarding legalization. Chuck Schumer and a constituency of cannabis supporters are pushing to get a federal bill passed as soon as possible. Meanwhile, New York joined the ranks of Washington and Colorado as the 15th state to legalize recreational cannabis.

multiple jars of different sizes carrying marijuana

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Senate Majority Leader Chuck Schumer is reportedly drafting a bill with Oregon Sen. Ron Wyden and New Jersey Sen. Cory Booker. The bill will deescalate cannabis from the list of controlled substances. And, while it doesn’t specifically use the word “legalization,” it will give states the green light to draft their own legislation over the substance.

Democrat lawmakers’ pushes to draft marijuana legislation come in tandem with the huge news that New York is now the 15th state to legalize recreational cannabis. Gov. Andrew Cuomo is signing the bill Wednesday morning and says the state expects around $350 million in annual tax revenue from the law. The law also expunges marijuana-related convictions from records. This is a huge win for social equity, given racial disparities in arrests for marijuana-related offenses. In 2020, people of color represented 94% of all arrests. With this in mind, the New York Times reported that 46% of revenue from cannabis sales will go toward Black and Latino communities in New York.

Cannabis legislation is a longstanding partisan issue within Congress. However, legalization laws are passing in red states like Montana and South Dakota. It’s clear that some lawmakers are beginning to come around on cannabis. Democrats want to strike while the iron is hot to get this long-awaited legalization in place.

How the Big News Is Boosting Cannabis Stocks

All of this news has done wonders for cannabis stocks this morning. The industry has been long awaiting some news regarding legislation. Now, where stocks were slumping, they are now turning around and giving investors hope.

Some big winners among cannabis stocks today include names like Tilray (NASDAQ:TLRY), Aphria (NASDAQ:APHA) and r/WallStreetBets regular Sundial (NASDAQ:SNDL). Other gainers are OrganiGram (NASDAQ:OGI) and GrowGeneration (NASDAQ:GRWG).

TLRY stock, one of the fastest-growing companies in the cannabis industry right now, is seeing a 7% boost after the news. This is one of the best bets in the industry right now. APHA stock is also up by 7%, and is a great bet for investors as it prepares to merge with Tilray. SNDL stock, the cannabis option of choice for r/WallStreetBets, is seeing gains of 3% after all this news.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Democrat lawmakers’ pushes to draft marijuana legislation come in tandem with the huge news that New York is now the 15th state to legalize recreational cannabis. Gov. Andrew Cuomo is signing the bill Wednesday morning and says the state expects around $350 million in annual tax revenue from the law. The law also expunges marijuana-related convictions from records. This is a huge win for social equity, given racial disparities in arrests for marijuana-related offenses. In 2020, people of color represented 94% of all arrests. With this in mind, the New York Times reported that 46% of revenue from cannabis sales will go toward Black and Latino communities in New York.

Source: https://investorplace.com/2021/03/cannabis-stocks-why-tlry-apha-ogi-grwg-sndl-stocks-are-getting-high/

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As New York moves toward marijuana legalization, experts warn it may lead to more overdoses in kids

Legalizing marijuana in New York could lead to more overdoses in kids, experts say.

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Experts say parents should be aware of the dangers of accidental consumption.

Experts say there has been a recent rise in pediatric exposures to cannabis, and “marijuana edibles” are landing children in emergency rooms across the country.

“We are seeing these edible exposures more and more often in younger kids, they come in completely sedated after getting into brownies at a party or getting into edibles that belong to their teenage siblings,” said Dr. Payal Sud, the medical toxicologist and associate chair of the emergency department at Glen Cove Hospital.

According to a study published by the American Academy of Pediatrics, poison center calls associated with unintentional pediatric exposures to cannabis have increased in the United States from 2017 to 2019, largely as a result of the accidental consumption of edible cannabis products.

“Lots of edibles look just like candy. From the outside it looks like candy and when you unwrap it, still candy — but they are infused with THC, the active ingredient in marijuana,” Sud said.

According to Sud, the dangerous thing about these edibles is that they are made to taste good. “People don’t feel the effects right away,” she said. “So, when a child bites into them, they may end up eating a lot more than a typical dose and it will end up hitting them all at once.”

Sud said that although death from eating marijuana edibles is extremely rare, very young children might experience extreme sedation, depending on the dose consumed.

“But even if the exposure doesn’t result in a fatality, having a child be subject to testing and hospitalization in general is not without risk,” Sud said.

This is a trend that has been most notable in states where marijuana use is already legal.

A study published in JAMA Pediatrics revealed that after legalizing recreational marijuana in 2014, Colorado saw an average 34% increase in cannabis-related poison control cases per year.

“Parents shouldn’t be surprised when they go to the homes of their friends, families or neighbors and marijuana is openly being used once it has been legalized,” said Dr. David Lee, a medical toxicologist, emergency medicine physician and retired professor at Hofstra-Northwell Medical School.

Lee expects more marijuana products to be left out in the open at people’s houses because users may no longer feel compelled to hide them. But it’s these behaviors what could put kids at an increased risk of exposure.

According to toxicology experts, parents should be aware of the dangers of accidental consumption.

“You’d be pretty surprised at the high concentrations of THC one little piece of candy can have,” said Dr. Nima Majlesi, the director of medical toxicology at Staten Island University Hospital and an emergency medicine physician.

He said that sometimes it’s not intuitive. “In some cases, you might think a single dose is one chocolate bar, but in reality, one dose is just a tiny little piece of that chocolate bar,” Majlesi said.

Majlesi added that marijuana edibles should be treated just like any other medication kept in the house: They should be stored in a lock box, especially if you have toddlers or infants.

“Think about them like your mom and dad’s blood pressure medications” he said. “These things are made to look appetizing, and kids don’t know any better, so locking them up is probably the best way to go. I would encourage those safety precautions with all toxic substances in the house.”

Dr. Stephanie Widmer, an emergency medicine physician and medical toxicology fellow in New York, is a contributor to the ABC News Medical Unit.

Editor’s note: This story has been updated to clarify Sud’s comments about the possible effects of children eating marijuana edibles.

ABC News

Source: https://abcnews.go.com/Health/york-moves-marijuana-legalization-experts-warn-lead-overdoses/story?id=76712674

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