Posts tagged with "Pot"

Martha Stewart signs on with Canopy to ‘cook up’ a new line of CBD products

March 1, 2019

Lifestyle guru Martha Stewart is going to pot, literally. She has signed on as an adviser to Canada-based marijuana producer Canopy Growth—agreeing to help develop and launch a line of pot-based products for both humans and animals, Reuters reported on February 28.

For 77-year-old Stewart—who has worked as a model, a stockbroker, a cookbook developer, a magazine editor, and a television star—this is simply another transition. And it’s one that she welcomes.

She famously has said: “Without an open-minded mind, you can never be a great success.”

The deal between Canopy and Sequential Brands Group, which owns the Martha Stewart brand, will seek to leverage Stewart’s mastery of consumer branding to launch a line of products based on CBD, the non-psychoactive chemical found in marijuana.

Sequential’s shares surged 51% to $1.81 in early trading.

“I’m especially looking forward to our first collaboration together, which will offer sensible products for people’s beloved pets,” Stewart commented on the deal.

In Canada, where both pot and CBD are legal for recreational use, cannabis companies have been pouring cash into their businesses—both to fend off competition and develop new products

According to Reuters, Canopy also has announced plans to invest between $100 million and $150 million in a hemp industrial park in New York State. The U.S. Food and Drug Administration has not yet approved edible CBD; nor has New York State.

But word is, both approvals may be coming soon.

Research contact: @MarthaStewart

Pot luck: If New York legalizes marijuana, who would cash in?

December 20, 2018

New York Governor Andrew Cuomo knows what he wants in his Christmas stocking: Funding to pay for crucial subway repairs. And while he has never been an advocate for legal marijuana, Cuomo now thinks that statewide recreational use by adults could be the best way to “sweeten the pot.”

Indeed, the Big Apple is looking for about $37 billion to upgrade its antiquated underground system of trains, tracks, and tunnels—and  Cuomo now has been convinced that he can raise the revenue by legalizing adult-use recreational marijuana within the next year, according to a report by Real Money.

Justifying his sudden turnaround on legalizing pot, the governor said in a speech before the New York State Bar Association on December 17, “The fact is we have had two criminal justice systems: one for the wealthy and the well-off, and one for everyone else,” Cuomo said in describing marijuana laws that he maintains “for too long [have] targeted the African-American and minority communities.”

During the midterm elections, the New York state government shifted to Democratic control and it was expected that the new lawmakers would fully legalize cannabis, after approving medical marijuana last June. So, Cuomo really is just getting ahead of this expected move, Real Money notes.

Financial experts agree that legalization could raise much-needed revenues for the state. Last May, New York City Comptroller Scott Stringer published a report estimating that the New York statewide cannabis market could see up to $3.1 billion in annual sales, with up to $1.1 billion generated in New York City alone. In terms of tax revenue, legal cannabis could generate up to $436 million for New York state and $336 million for New York City.

Other states already have profited immensely off their marijuana sales. In 2015, Colorado collected $135 million in legal marijuana tax revenue. And during the first five days of sales in Massachusetts, the state’s two pot shops pedaled more than $2.2 million worth of legal marijuana products.

Cuomo probably isn’t thinking just about the tax dollars, but also is looking at job creation. A study published by Joblift shows that cannabis career growth in California is steadily declining, while New York State is experiencing a strong market. New York is now third in terms of gross domestic product and is experiencing a “surge in medical marijuana job postings,” with the study saying it could hold “the most potential for overall growth in the sector.”

Cuomo does not want New York to lose these jobs to neighbors, such as New Jersey and Massachusetts, which also are legalizing cannabis use.

Next comes the question that investors want answered: Who is poised to capitalize on the New York market?

Cannabiz Media is a company that tracks license holders in states around the country. According to its data, it looks like MedMen Enterprises is poised to be the big winner as a result of its acquisition of PharmaCann, which had the highest number of permits awarded in the state. MedMen acquired PharmaCann for $682 million in an all-stock deal back in October. The transaction not only doubled the reach for MedMen, but expanded its presence in New York.

Vireo Health is next on the list, Real Money reports. Vireo is a physician-led multi-state medical cannabis company that says It is “committed to safely alleviating pain by providing patients with best-in-class cannabis products and compassionate care.” This company is still private, although it did raise $17 million back in August and said it is planning on going public at some point.

And number three would be Columbia Care, which isn’t public yet but soon will be following a merger with Canaccord Genuity Growth. The deal is expected to close in the first quarter of 2019. Columbia Care was selected to be one of five licensees in Virginia and became the first U.S. company licensed in the European Union. It was recently awarded one of the six new licenses in New Jersey.

To date, eight U.S.  states have legalized recreational marijuana use: Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, and Washington. Washington, D.C., also allows the recreational use of marijuana.

Research contact: @WallandBroad

Canadian legislators vote to ‘go to pot” nationwide in September

June 21, 2018

Following a 52-29 vote in Canada’s Senate in favor of The Cannabis Act (Bill C-45) on June 19, America’s neighbor to the north will become the second country in the world—and the first G7 nation—to legalize marijuana this coming September. The first nation to do so was Uruguay, which decriminalized marijuana production, sales and consumption in December 2014, according to a report by CNN.

The move—promised by Prime Minister Justin Trudeau in the run-up to his election—was supported by nearly 70% of the Canadian population, based on findings of a CTV poll conducted back in 2016. A more recent Nanos survey established that 43% of Canadians fully supported legalization, while 26% “somewhat’ supported the idea; and only 26% opposed decriminalization.

On Twitter, Trudeau said he was happy with the legislative vote, noting, “It’s been too easy for our kids to get marijuana—and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate. #PromiseKept

Indeed, the bill set a floor on the minimum age of the consumer at 18 years—and makes the production, distribution, or sale of cannabis products an offense for minors. Canadian adults will be able to carry and share up to 30 grams of legal marijuana in public, the bill specifies. They also will be allowed to cultivate up to four plants at home and prepare products such as edibles for personal use.

However, stringent rules will still govern the purchase and use of marijuana, CNN reports. Consumers are expected to purchase marijuana from retailers regulated by provinces, territories or—when neither of those options are available—federally licensed producers. Marijuana also will not be sold in the same location as alcohol or tobacco.

The Canadian government also has implemented changes to its impaired driving laws, to address repercussions is estimated to surge as high as 58%, especially as users are expected to be willing to pay a premium for legal access to the drug

In the United States, BDS Analytics  has estimated that the marijuana industry took in nearly $9 billion in sales in 2017.

Research contact: @bani_sapra