The ‘Bis weekly news update – August 25 to 31, 2018

The end of another week means that there has been seven days of something new and exciting in the world of Canadian cannabis. August is over, the October deadline draws ever closer and the industry continues to develop at breakneck speed.

Stay up-to-date with The ‘Bis for August 25 to 31, 2018.

Citron Research calls foul, Cronos shares’ lose 27%

Cannabis took a hit on Thursday after short-seller and self-proclaimed fraud watch-dogs Citron Research called Canadian cannabis producer Cronos Group “all talk” and accused them of omitting key details about the size of its distribution agreements.

According to the document, Cronos “appears to have been deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces — unlike every other major cannabis player.”

“Our sources have informed us that it’s because the agreements are so small they could never justify the premium investors are paying for the stock,” Citron Research said.

Cronos has not commented on the report as of yet. The market was shaken as the company’s stock plummeted by 27%.

As of writing it is sitting at 9.12 in the stock market today, as Citron gave the stock a price target of 3.50. Others would also dip, Canopy lost 4.2%, and Tilray 4.9%.

Canada announces new cannabis tracking system

Health Canada announced today the new Cannabis Tracking System. It hopes to use this system to prevent illegal week entering the market.

The Cannabis Tracking System builds the system used to track medical pot. It will be used by provinces and territories, as well as those that hold a federal licence to cultivate and process cannabis, to track the movement of cannabis from cultivation to processing to sale.

Personal information on individual consumers will not be collected. The government says it will only collect data that is necessary for Health Canada to track cannabis at a national level.

“We have been clear about our objective of keeping profits out of the hands of criminals and organized crime,” said Bill Blair,
Minister of Border Security and Organized Crime Reduction. “The Cannabis Tracking System is one of several legislative and regulatory measures designed to help prevent the movement of cannabis from the legal market to the illegal market, and vice versa.

“Other measures include routine and unannounced inspections and rigorous personnel and physical security requirements.”

There has been no indication of what cost the additional security measures will cost private business owners.

Government approves roadside testing machine for police

Dräger, a company better known for producing the breathing systems worn by fire departments and military personnel, is producing a road-side testing device that allegedly can detect cannabis in saliva. The Attorney General of Canada has given approval for the Dräger Drug Test 5000 to be the first roadside oral fluid drug screening device used by Canadian law enforcement.

“Dräger is proud to be selected as a provider of roadside drug screening technology for use by Canadian law enforcement,” says Rob Clark, managing director of Dräger Canada, said in a press release. “We have worked side-by-side with police around the world. We look forward to helping police make Canadian roads safer.”

Lloyd’s of London is now allowing underwriters to give insurance to cannabis companies

Iconic British insurance company, Lloyd’s of London has issued a notice saying they will be providing insurance for Canadian cannabis businesses.

“It will be legal to produce, distribute, sell and possess cannabis in Canada,” it said in a notice. “It is anticipated that this legalization of cannabis-related activities will give rise to new opportunities for insurers considering writing related risks.”

Lloyd’s is satisfied that, “if properly done,” their underwriters are well positioned to write Canadian cannabis business subject to compliance with local Canadian requirements.

The company says it consulted their legal counsel to see if they would be in violation of the United Kingdom’s Proceeds of Crime Act by underwriting insurance coverage in Canada, but are satisfied they are

Ontario soccer stadium to be made into new grow facility

Soccer players in Stoney Creek, a Hamilton, Ontario suberb, are looking for a new pitch to play their game next winter after the sale of Players Paradise. The 100,000-square-foot facility will be home to the latest expansion of the cannabis company, Green relief.

“Players Paradise Sports Complex Inc. will officially close its doors on Oct 31st after nine years of proudly serving Hamilton and its surrounding communities,” read a notice on the stadium’s website. “We were honoured to host players, teams, coaches, families and schools, as well as other local businesses who participated in trade shows and events in the venue over the years.”



Back to Blog