Cannabis Approval Ratings Just Increased in North America Again
Palm Beach, FL – May 29, 2019 – The bullish momentum in cannabis stocks has continued in 2019. Related stocks have already exploded on news of Canadian legalization, U.S. states approving its medicinal or recreational use, and corporate America interest. The U.S. FDA approved the very first cannabis-derived drug, as well as the 2018 Farm Bill, which legalized hemp and hemp-based CBD. Even major retailers are jumping on board. Better, Cowen analysts say U.S. cannabis sales could reach $80 billion in the next 11 years. In addition, according to The General Social Survey conducted by NORC at the University of Chicago, 61% of those surveyed support legalization. That’s up from 57% in 2016. A Gallup survey found that 66% of Americans are in favor of legalization. That’s up from just 60% in 2016. A Pew survey found that 62% of Americans want to see cannabis legalization in the country, as compared to just 57% in 2015. Some of the stocks benefiting from the cannabis market boom include Lifestyle Delivery Systems Inc. (CSE:LDS)(OTC:LDSYF), CannTrust Holdings Inc. (NYSE:CTST)(TSX:TRST), and The Supreme Cannabis Company Inc. (TSX:FIRE)(OTC:SPRWF), Canopy Growth Corp. (NYSE:CGC)(TSX:WEED), and Emerald Health Therapeutics Inc. (OTC:EMHTF)(TSX-V:EMH).
Lifestyle Delivery Systems Inc. (CSE:LDS)(OTCQX:LDSYF) BREAKING NEWS: Lifestyle Delivery Systems Inc. announced that it signed a Memorandum of Understanding to enter into a Joint Venture with National Green Biomed Ltd. Under the terms of the proposed JV agreement, NGB will provide an extension of its Rosebud Health Canada License to the JV and land for the new facility to manufacture CannaStrips. Upon completion of a definitive agreement, LDS will invest a total of CAD$255,000 in a private placement for shares of common stock of NGB at $0.30 per share. The $255,000.00 will be made in 3 payments. The first payment of $75,000.00 upon signing our definitive agreement, the second payment of $75,000.00 90 days after the agreement having become effective and the third payment of $105,000 upon issuance of a license from Health Canada. LDS will contribute funds for the permits, design and build-out of the facility and will share the cost of consulting associated with the Health Canada licensing. NGB will receive a royalty on all sales from the Mission facility, more specifically a 5% royalty for sales in Canada and a 3% royalty on all sales outside of Canada. The Mission facility will be required to purchase raw material from NGB and provide custom processing for future products or business opportunities presented by NGB.
“The establishment of a Canadian CannaStrips manufacturing and distribution facility has been a goal of the Company for some time. Now our agreement with NG Biomed has put the Company on a path to accomplish this goal in 2019. Hopefully, with this agreement and favorable legislation in the near future CannaStrips can be shipped around the globe. I don’t believe there is another delivery system better suited to overcoming the challenges of the social perception associated with traditional cannabis consumption and the concerns of unintended sharing of cannabinoids with others nearby. The discreet and inoffensive nature of CannaStrips is an alternative for a new market of customers looking for a stealth experience. It is also the most affordable cannabis product available,” says company CEO Brad Eckenweiler. For additional news for Lifestyle Delivery, please visit: https://www.lifestyledeliverysystems.com/lds-press-release
Other cannabis-related developments from around the markets include:
CannTrust Holdings Inc. (NYSE:CTST)(TSX:TRST) released its financial results for the first quarter ended March 31, 2019, including record quarterly revenue of $16.9 million, a 115% increase over the first quarter of 2018, 67% was through the medical channel and 33% through the recreational channel. Total active patient count reached 68,000 at March 31, 2019, a 70% increase over the first quarter of 2018; Harvested production increased by more than 400% to over 9,400kg, versus the first quarter of 2018, and 96% over the fourth quarter of 2018; Sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram.
“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million (before exercise of the over-allotment option), we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year. This is a very exciting time for CannTrust and we plan to continue executing on our vision of becoming a global provider of innovative cannabis products and brands.”
The Supreme Cannabis Company Inc. (TSX:FIRE)(OTCQX:SPRWF) announced its financial and operating results for the three and nine months ended March 31, 2019. “Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.
“As we report the Company’s third quarter of fiscal 2019, we reflect on our first six months of legal cannabis sales in Canada. While Supreme Cannabis was originally viewed as a contrarian for taking a consumer-oriented approach to the cannabis market, 7ACRES’ strong consumer feedback, status as a top-ten revenue producer in the industry and recognition as a coast-to-coast award-winning premium brand affirms that our approach to the Canadian cannabis market is winning with the people who will drive revenue: consumers.”
Canopy Growth Corp. (NYSE:CGC)(TSX:WEED) just announced the next phase in its partnership with Parent Action on Drugs and Canadian Students for Sensible Drug Policy which will see PAD launch two new digital tools to help youth along with their parents, adult caregivers, and influencers, on how to make responsible decisions about cannabis use. PAD employed the technical expertise of Massively, a leader in artificial intelligence, to develop a fun and interactive chatbot designed to engage, educate and encourage conversation between parents and their kids about cannabis. This tool helps parents structure conversations with their pre-teens about cannabis to inform and prevent early use, associated with a number of negative short and long-term outcomes. By having an informed, open dialogue about cannabis, parents can protect their children while creating a culture of knowledge and resiliency.
Emerald Health Therapeutics Inc. (OTCQX:EMHTF)(TSX-V:EMH) has been appointed by the American Trade Association for Cannabis and Hemp (ATACH) to lead its International Affairs Council on CBD and Hemp in ATACH’s engagement with the US Food & Drug Administration (FDA) regarding policy pertaining to CBD-containing products and associated cross-border trade. The FDA is slated to begin public consultation on May 31 to discuss potential pathways for CBD products to come to market in the US. “Emerald Health Therapeutics is one of Canada’s original Licensed Producers and has expertise on CBD extraction and associated regulatory development,” said Michael Bronstein, President of ATACH. “We look forward to leveraging Emerald’s knowledge and experience as we participate in the FDA process on how to best navigate and implement a potentially-new regime for products containing cannabinoids in the United States.”
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