It’s been another week of interesting cannabis developments in Canada. We’re now only 3 months out from legalization and things have hardly slowed down.
To keep you updated here is the The ‘Bis weekly news update for July 13 to July 20, 2018
Canadian licenced producer Tilray (TLRY) has been making serious waves on the NASDAQ stock exchange since the launch of their initial pupblic offering on Wednesday.
Tilray sold 6.254 million shares for $17 USD each during their IPO, after estimating that would go for between $14 to $16 USD beforehand. The other 2.476 million shares at $22.45 CDN. The company raised a total of $153 million.
On Thurday they opened 36% higher at $23.05.
Tilray is the third cannabis stock to list on a major US exchange. Canopy Growth (CGC), which already traded in Canada under the ticker “WEED,” first listed on the New York Stock Exchange in May. Cronos Group (CRON), which also traded in Canada initially, first listed on the Nasdaq in February. Those listings were not technically IPOs.
Cannabis companies seeking to grow their products in Germany are back to square one, after the German government officially cancelled a tender process last week. The talks had been stalled since March.
The German government had been looking to award the country’s first cannabis cultivation licences, and put out a call for companies that could supply it with a total of 6,600 kilograms of medical-grade cannabis. One key stipulation is that it all had to be grown within Germany.
A number of Canadian companies, including Canopy Growth Corp., MedReleaf Corp. and Aphria Inc. (through its acquisition of Nuuvera Inc.), were on the short list alongside their domestic partners, according to people with knowledge of the tender process.
Last week, however, the department in charge of Germany’s medical marijuana regime sent out letters informing finalists that the tender had been cancelled.
Four provinces are planning to launch sting operations against marijuana retailers to test whether they’re keeping underage customers out of their stores.
B.C., Nova Scotia, Saskatchewan and Newfoundland and Labrador all forbid people under 19 from buying or trying to buy cannabis, but have made an exception for teens hired by an enforcement authority to try and find retailers selling pot to minors.
The programs would be similar to those run for years in several provinces to find retailers who sell tobacco or alcohol to underage customers. The teens must be at least 18-year-old and will conduct the checks under the supervison of an officer.
NSLC president and CEO Bret Mitchell announced to press at the company’s location on Joseph Howe Drive in Halifax, that Nova Scotia is the only jurisdiction to bring cannabis and alcohol sales under one roof.
“We have a very unique situation here in Nova Scotia and one that’s definitely going to be setting the stage for the world,” said Mitchell inside the new cannabis store, located in a renovated section of the liquor store.
“It hasn’t been done to my knowledge anywhere else in the world, and so it’s going to make it a very different retail environment than you’ll experience in any other jurisdiction.”
The entrance to the 130 square-metre rectangular-shaped store — which will be one of the largest in the province — is located in the back left corner of the liquor store beneath large letters that read “cannabis.”
Customers walk through an opening with frosted glass and around a corner into a brightly-lit space with light-coloured walls.
Cannabis-infused beverages could emerge as a major segment in Canada’s legalized recreational market, accounting for as much as half of all marijuana sales in five years, according to the new chief executive of Green Organic Dutchman Holdings Ltd.
Brian Athaide took over as CEO of Mississauga, Ont.-based Green Organic Dutchman on July 2, after the company’s former CEO, Robert Anderson, stepped down for medical reasons. Athaide told BNN Bloomberg in his first major interview since his appointment that he expects drinks that contain water-soluble cannabis could be a “major disruptor” in both the alcohol and cannabis markets, especially among health-conscious consumers.
“It may not happen in the first year or two, but over time we do see [beverages] becoming the biggest part of the market because of the ease of consumption,” Athaide said in a phone interview with BNN Bloomberg.
“By developing beverages that have the ability to look like an alcoholic drink – that you get the efficacy of it within 10 to 15 minutes and then fade after a few hours – we believe that will lead to a breakthrough in terms of conversation from other types of beverages.”