Wednesday, November 30, 2022

Psychedelic Stock News - Red Light Holland (CSE: TRIP) Reports Second Quarter 2023 Financial Results

Psychedelic Stock News - Red Light Holland (CSE: TRIP) Reports Second Quarter 2023 Financial Results

Cannabis Beverage Stock News - Hill Street (TSXV: HILL) Releases Q1 FY 2023 Results

Cannabis Beverage Stock News - Hill Street (TSXV: HILL) Releases Q1 FY 2023 Results

Investor Ideas #Potcasts 639, #Cannabis News and #Stocks on the Move- (CSE: $IWIN.C), (OTCQB: $XBRAF), (NASDAQ: $VLNS), (CSE: $RIV.C), (Nasdaq: $HITI)

Investor Ideas #Potcasts 639, #Cannabis News and #Stocks on the Move- (CSE: $IWIN.C), (OTCQB: $XBRAF), (NASDAQ: $VLNS), (CSE: $RIV.C), (Nasdaq: $HITI)

 


Vancouver, Delta, Kelowna, BC, November 30, 2022 (Investorideas.com Newswire), investorideas.com,  a global news source covering leading sectors including marijuana and hemp stocks and its potcast site  release today’s podcast edition of  cannabis news and stocks to watch plus insight from thought leaders and experts.

 

Listen to the podcast:

https://www.investorideas.com/Audio/Podcasts/2022/113022-StocksToWatch.mp3

 

Read this in full at https://www.investorideas.com/news/2022/cannabis-potcasts/11301IWIN-XBRAF-VLNS-RIV-HITI.asp

 

Hear Investor ideas cannabis potcast on iTunes  

 

Hear the investor ideas potcast on Spotify

 

Today’s podcast overview/transcript:

 

In today’s podcast we look at a few public company announcements covering areas such as membership programs, beverages, Canadian LP’s and Psychedelics.

 

High Tide Inc. (Nasdaq: HITI) (TSXV: HITIannounced the launch of Cabana Elite, an optional paid membership upgrade for Cabana Club members. Starting today, customers can sign up for ELITE in-store and online at www.cannacabana.com. The Company expects that ELITE will extend the Cabana Club membership program, attract new customers and instil even greater customer loyalty. The Company anticipates that further discounts, benefits and promotions will be regularly added to ELITE.

 

"I am delighted to finally announce the launch of ELITE, the next evolution in our innovative discount club model and a huge milestone for High Tide. The continuous innovation from our team has positioned us as a top-performing Canadian cannabis company, and ELITE is the natural result of this success. By leveraging the strengths of our diversified cannabis ecosystem, we are providing additional value to ELITE members by offering discounts on High Tide's global online consumption accessories platforms. We see this as a big step towards building our loyalty program into a global cannabis community as we continue to convert price-conscious consumers from the illicit market into our legal cannabis ecosystem," said Raj Grover, President and Chief Executive Officer of High Tide.

 

"Our goal is to sign up as many Cabana Club members to ELITE as possible within the first year, following which we anticipate an even greater financial impact in subsequent years. During these inflationary times, we decided to offer the ELITE membership at a 50% discount for a limited time to allow our customers to try out the new program at a minimum cost. Once our customers see what ELITE has to offer, we anticipate they will look to maintain their status in subsequent years. Launching ELITE was not an easy task, given the varied regulatory landscape in the Canadian provinces where we operate. Our team has been working hard on this project for many months, and I want to take this opportunity to extend my sincere gratitude to our team members and provincial regulators, who helped us get to this pivotal day. We are confident ELITE will generate excellent returns for our shareholders, who can rely on High Tide for continued innovation and execution," added Mr. Grover.

 

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), an acquisition and investment firm with a focus on building a leading multistate platform with one of the strongest portfolios of brands in key strategic U.S. markets, today released its financial results for the three and six months ended September 30, 2022 ("FQ2 2023").

 

FQ2 2023 Highlights

       Received New York State Cannabis Control Board ("CCB") and New York State Office of Cannabis Management ("OCM") approval for Etain, LLC's change of control request, clearing the path for the Company to complete the final closing of the previously announced acquisition of ownership and control of Etain IP LLC and Etain, LLC (collectively, "Etain") (the "Etain Acquisition")

       Entered into a lease agreement with Zephyr, a leading California-based developer, for the development and operation of a planned new flagship cannabis cultivation and manufacturing facility in Buffalo, New York

       $165 million of cash on-hand to, among other things, support the completion of the Etain Acquisition, the expansion and development of Etain's cultivation and processing facilities, and to pursue new growth opportunities

       Reported a net loss of $142.3 million, including a goodwill impairment charge of $138.9 million related to the Etain Acquisition

 

"Having cleared all regulatory hurdles, we are eager to complete the final closing of the Etain Acquisition before the end of 2022, establishing RIV Capital as a strongly positioned, vertically integrated cannabis operator in New York," said Mark Sims, President and CEO of RIV Capital. "With the long-awaited drafts of New York cannabis market regulations approved for publication last week, we are looking forward to continuing to work with the State to help create an efficient market where registered organisations can operate effectively. We intend to provide our feedback during the public review period and continue to work with the regulators to support the creation of rules that are mutually beneficial for all stakeholders."

 

"The draft regulations further support our thesis that there will be a robust wholesale market in New York, where the most successful companies will be those that can build the strongest brands. New York continues to offer us the best platform to launch our brand-focused strategy, and our expanding cultivation footprint designed to support the premium New York market provides RIV Capital with attractive wholesale opportunities."

 

Eddie Lucarelli, Chief Financial Officer of RIV Capital, added, "In this environment where access to capital and liquidity continues to be challenging for many cannabis companies, we believe we remain well positioned with a strong balance sheet to execute our expansion strategy in New York and simultaneously evaluate other growth and capital allocation opportunities."

 

The Valens Company Inc. (TSX: VLNS) (NASDAQ: VLNSannounced that its shareholders have voted in favour of the resolution approving the plan of arrangement pursuant to which SNDL Inc. will acquire all of the issued and outstanding common shares of Valens on the basis of 0.3334 of a SNDL common share for each outstanding Valens common share, on and subject to the terms of the arrangement agreement dated August 22, 2022 to which Valens and SNDL are parties. Over 96% of votes cast at the Company's special meeting of shareholders held on November 29, 2022 were in favour of the Resolution.

 

"With this announcement, we are one step closer to combining two best-in-class cannabis companies that have extremely complementary assets to create a true market leader. This pro forma company will create Canada's first large vertically integrated cannabis company that unites SNDL's exceptional balance sheet and largest cannabis retail network in Canada with Valens' low-cost manufacturing platform. We look forward to taking Valens' brands to new heights and unlocking 2.0 products for the SNDL platform," said Tyler Robson, Chief Executive Officer of The Valens Company. "We believe the pro forma company provides investors with attractive exposure not only to the highest revenue generating cannabis company in Canada trading well under its tangible book value but also a dominant platform that can become a global leader in cannabis."

 

Xebra Brands Ltd. (CSE: XBRA) (OTCQB: XBRAFannounced that its cannabis infused beverage Vicious Citrus OG, is a top performer, based on multiple metrics, in Ontario, Canada's largest Cannabis market where more than 1,300 cannabis retailers are based.

OG is the first launch of several non-carbonated lemonade products under the Vicious Citrus brand.  OG, which stands for "Original", is differentiated by its non-carbonated profile and the addition of CBN, a unique cannabinoid that works synergistically with THC, to enhance the overall effect.

 

Vicious Citrus OG launched in Ontario in August 2022, and in only approximately 10 weeks, is the best-selling non-carbonated lemonade, the best-selling lemonade, the fastest growing lemonade in sales, in the top 20% of all cannabis beverage SKU's sold in Ontario, and in the top 1/3 of all cannabis beverage brands based on sales.

 

Vicious Citrus OG is also retailing in Saskatchewan, and is expected to be available soon in British Columbia, Alberta and Manitoba.

 

"Vicious Citrus OG is off to a strong start in Canada," said Jay Garnett, CEO of Xebra Brands, "Budtender and consumer feedback has been exceptionally positive, and we are confident the brand will continue to grow in current markets as well as expand into new ones."

 

Xebra management is considering introducing the Vicious Citrus brand outside Canada and is taking steps to assess opportunities.

 

Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINFannounced today that it reached a binding, arms-length, agreement to acquire Serenity Health, LLC in Louisville, Kentucky, on November 25, 2022. The move continues Irwin’s national ketamine clinic rollup strategy that has seen the Company move quickly toward its goal of building Irwin Naturals Emergence into the world’s largest chain of psychedelic mental health clinics. Irwin Naturals was founded in 1994, building itself into a nationally renowned company with its first-in-class line of nutraceuticals that are available in more than 100,000 stores across North America. The Irwin Naturals brand is recognized in 80 percent of American households.

 

Klee Irwin, CEO of Irwin Naturals, said, “With each clinic we bring under the umbrella of Irwin Naturals Emergence, we take another step toward the forefront of this new approach to mental healthcare. We are the world’s first household name to enter the space and are moving fast with the goal of being the first mover in this market.”

 

Irwin Naturals Emergence already includes clinics in Florida, Vermont, New Hampshire, Iowa, and Georgia. Currently, ketamine is the only psychedelic available for use in the United States outside of clinical trials when used as prescribed. However, MDMA and psilocybin may be authorised for therapeutic use in the future. This creates the possibility of radically changing the way we treat mental-health concerns.

 

Beth Ann Nevius, co-founder and CEO of Serenity Health, said, “What impressed us about Irwin’s approach to America’s mental health crisis is its philosophy of using national scale to drive down patient costs. Furthermore, the Irwin team has proven itself capable of building a national brand with an exceptionally faithful customer base. We are looking forward to becoming part of the Irwin team and taking this great brand nationwide, making mental healthcare accessible to all.”

 

Irwin Naturals Emergence is a wholly owned subsidiary of Irwin Naturals, and it was formed when the Company decided to enter the fast-growing sector of psychedelic mental healthcare. Over the past year, Irwin Naturals Emergence has identified ketamine clinics that practise a high standard of care to explore the possibility of adding these clinics to the national chain. This offers the possibility of increased economic efficiency because of the national scale of the operation that could help drive down operating costs, making it possible to pass savings along to the consumer in the form of sliding-scale discounts and even pro-bono treatments for those in need. Irwin Naturals’ name and reputation makes it an impactful voice in this new area of mental healthcare due to the Company’s history in safely caring for the health of its patients vouching for the safety and the efficacy of psychedelic treatment.

 

Irwin added, “We see ourselves as the Coca Cola first mover, and will be leveraging our brand equity and status as a cult brand to expand rapidly as society embraces the psychedelic mental health revolution. This is important because, as a psychedelic, ketamine is an effective treatment for many mental health disorders. However, some Americans are not clear on its potential. The trusted Irwin brand will be the welcome face of a familiar friend in a crowd of strangers – making this life-saving solution a bit less intimidating to those in need.”

 

The Agreement is subject to certain customary closing conditions and regulatory approvals. The total consideration will be paid in upfront and deferred consideration. Also included are contingent payments based on milestones related to expansion and profitability goals.

 

Investor ideas reminds all listeners to read our disclaimers and disclosures on the Investorideas.com website and that this podcast is not an endorsement to buy products or services or securities. Investors are reminded all investment involves risk and possible loss of investment.

To hear more Investorideas.com podcasts visit: https://www.investorideas.com/Audio/.

The Investorideas.com podcasts are also available on iTunes ( Apple Podcasts) ,  Audible , Spotify, Tunein, Stitcher, Spreaker.com, iHeartRadio ,  Google Podcasts and most audio platforms available.

 

About Investorideas.com - Big Investing Ideas

We publish breaking stock news, stock research, guest posts and create original top rated investing podcasts, plus sector tag articles featuring up and coming companies and industry leaders.  Investor Idea’s original branded content includes the Crypto Corner Podcast , Play by Play Sports Podcast , Cannabis News and Stocks on the Move Podcast ,  Cleantech and Climate Change Podcast,  Exploring Mining Podcast , Betting on Gaming Stocks Podcast and the AI Eye Podcast.  We also create free investor stock directories for AI and tech, biotech, cannabis, cleantech, crypto, defense, gaming, health and wellness, mining, oil and gas, sports and water. 

 

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions. Disclosure:  GTCH is a paid featured Ai stock .More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

 

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Thursday, November 10, 2022

Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move-Episode 638: New #Legalization Following #Midterms



Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move-Episode 638: New #Legalization Following #Midterms

 

Delta, Kelowna, BC, November 10, 2022 (Investorideas.com Newswire), investorideas.com,  a global news source covering leading sectors including marijuana and hemp stocks and its potcast site  release today’s podcast edition of  cannabis news and stocks to watch plus insight from thought leaders and experts.

 

Listen to the podcast:

https://www.investorideas.com/Audio/Podcasts/2022/111022-StocksToWatch.mp3

 

Read this in full at https://www.investorideas.com/news/2022/cannabis-potcasts/11101New-Legalization-Following-Midterms.asp

 

Hear Investor ideas cannabis potcast on iTunes  

 

Hear the investor ideas potcast on Spotify

 

Today’s podcast overview/transcript:

 

In today’s podcast we look at the recent Midterm results and how this impacted cannabis legalisation and decriminalisation in the U.S.

 

Maryland and Missouri joined 19 other states and the District of Columbia in legalising recreational cannabis, while legalisation proposals did not pass in Arkansas, North Dakota and South Dakota.

 

Following the passage of Maryland’s Question 4, adults in the state will be allowed to possess up to 1.5 ounces, or two marijuana plants, beginning July 1, 2023. The amendment also allows for the expungement of records for people arrested for cannabis possession, and for people serving time for simple possession to have their sentences reconsidered. It would also establish a cannabis business assistance fund for small businesses, as well as minority- and women-owned businesses, entering the cannabis industry. Laws surrounding liscensing and taxation still need to be determined.

 

In Missouri, voters approved the state’s Amendment 3, which removes existing prohibitions on marijuana and allows adults to purchase and possess up to three ounces and grow up to six flowering plants at home. A 6% sales tax will go toward facilitating automatic expungements for certain nonviolent cannabis offences, veterans’ health care, substance misuse treatment and the state’s public defender system. It also adds at least 144 new small business licensees to the existing businesses licensed for medical marijuana, according to Legal Missouri 2022, the advocacy group that sponsored the measure. New licence holders will be selected by lottery.

 

While these two states moving forward was another great win for cannabis advocacy, are states saw more of the same as voters in Arkansas rejected Issue 4, which would have allowed for the purchase of up to an ounce of marijuana from licensed retailers, and in North Dakota, voters rejected Measure 2, which would have allowed for the possession of up to an ounce of marijuana and finally voters in South Dakota rejected Measure 27, which would have legalised possession of up to one ounce of marijuana.

 

Moving away from the State level, voters in five Texas cities decided in favour of municipal ballot initiatives eliminating the local enforcement of low-level cannabis offences.

Voters in the cities of Denton, Killeen, San Marcos, Elgin and Harker Heights decided ‘yes’ on the measures. Specifically, the ordinances limit local law enforcement from making arrests or issuing citations for most marijuana-related violations. It also prohibits police in most circumstances from considering the odour of cannabis as probable cause of a crime.

 

Local activists are anticipated to place ballot questions before voters in additional cities in the coming year.

 

Meanwhile in Colorado, Proposition 122, Access to Natural Psychedelic Substances, was passed with about 51% of the vote according to the Secretary of State’s Office.

 

Possession, use, cultivation and sharing of psilocybin, ibogaine, mescaline (not derived from peyote), DMT and psilocyn will be legalised for adults 21 and older, without an explicit possession limit. There will be no recreational sales component.

 

The Department of Regulatory Agencies will be responsible for developing rules for a therapeutic psychedelics program where adults 21 and older can visit a licensed healing centre to receive treatment under the guidance of a trained facilitator.

 

There will be a two-tiered regulatory model, where only psilocybin and psilocyn will be permitted for therapeutic use at licensed healing centres until June 2026. After that point, regulators can decide whether to also permit regulated therapeutic use of DMT, ibogaine and mescaline.

 

This makes Colorado the second state, following Oregan, to legalise psychedelic substances.

 

With another Midterm election over the US continues its slow march forward with regards to drug reform policy but like most of the world, including Canada, when it comes to dealing with the many who are in prison for cannabis offences, there is still much lacking.

 

When it comes to Biden's pardons announced Oct. 6, only about 6,500 people convicted of cannabis possession at the federal level were affected. None remain in prison. Without a felony on their record, they won't be tripped up when applying for a job or trying to rent an apartment.

 

While this is a clear positive, Biden's pardon does not affect some 3,000 people convicted of higher level marijuana crimes who remain in federal prisons, and as many as 30,000 who are still in prison in several states, according to the advocacy group the Last Prisoner Project. Those numbers do not reflect people with convictions for marijuana possession at the state level, although approximately 2 million marijuana convictions have been expunged or pardoned by states where the drug is now legal.

 

Investor ideas reminds all listeners to read our disclaimers and disclosures on the Investorideas.com website and that this podcast is not an endorsement to buy products or services or securities. Investors are reminded all investment involves risk and possible loss of investment.

To hear more Investorideas.com podcasts visit: https://www.investorideas.com/Audio/.

The Investorideas.com podcasts are also available on iTunes ( Apple Podcasts) ,  Audible , Spotify, Tunein, Stitcher, Spreaker.com, iHeartRadio ,  Google Podcasts and most audio platforms available.

 

About Investorideas.com - Big Investing Ideas

We publish breaking stock news, stock research, guest posts and create original top rated investing podcasts, plus sector tag articles featuring up and coming companies and industry leaders.  Investor Idea’s original branded content includes the Crypto Corner Podcast , Play by Play Sports Podcast , Cannabis News and Stocks on the Move Podcast ,  Cleantech and Climate Change Podcast,  Exploring Mining Podcast , Betting on Gaming Stocks Podcast and the AI Eye Podcast.  We also create free investor stock directories for AI and tech, biotech, cannabis, cleantech, crypto, defense, gaming, health and wellness, mining, oil and gas, sports and water. 

 

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

 

Investor Ideas does not condone the use of cannabis except where permissible by law. Our site does not possess, distribute, or sell cannabis products.

 

Tuesday, September 27, 2022

Psychedelic Stock Investor News - Psyched Wellness (CSE: PSYC) Announces Successful Pilot Run, Final Flavour Profile for Calm and Shipping Pre-Orders in October

Psychedelic Stock Investor News - Psyched Wellness (CSE: PSYC) Announces Successful Pilot Run, Final Flavour Profile for Calm and Shipping Pre-Orders in October

Investor Ideas #Potcasts 637, #Cannabis News and #Stocks on the Move- #CanadianCannabis Industry on the Ropes (Nasdaq: $SNDL), (TSX: $DN.TO) (OTCQX: $DLTNF) (NASDAQ: $HITI) (TSXV: $HITI.V)

 



Investor Ideas #Potcasts 637, #Cannabis News and #Stocks on the Move- #CanadianCannabis Industry on the Ropes (Nasdaq: $SNDL), (TSX: $DN.TO) (OTCQX: $DLTNF) (NASDAQ: $HITI) (TSXV: $HITI.V)

 

Delta, Kelowna, BC, September 27, 2022 (Investorideas.com Newswire), investorideas.com,  a global news source covering leading sectors including marijuana and hemp stocks and its potcast site  release today’s podcast edition of  cannabis news and stocks to watch plus insight from thought leaders and experts.

 

Listen to the podcast:

https://www.investorideas.com/Audio/Podcasts/2022/092722-StocksToWatch.mp3

 

Read this in full at https://www.investorideas.com/news/2022/cannabis-potcasts/09271SNDL-DN-DLTNF-HITI.asp

 

Hear Investor ideas cannabis potcast on iTunes  

 

Hear the investor ideas potcast on Spotify

 

Today’s podcast overview/transcript:

 

In today’s podcast we look at the Canadian Retail and Medical Cannabis sectors and how these two markets are currently developing and issues they are facing.

 

While Canada was the first G7 country to legalise cannabis and many were at first boldly optimistic about the Canadian cannabis market, we are now seeing a fairly intense period of consolidation and struggle due to a variety of factors in each province which has made many investors as well as cannabis operators reassess where the Canadian market is at.

 

recent news article from CBC discussed the issues currently facing the Province of Alberta, a province that has, like Saskatchewan and Manitoba, become oversaturated due to granting too many cannabis licences.

 

In the article one Craig Kolochuk, CEO and founder of 13th Floor Cannabis was blunt in his assessment of Alberta's retail cannabis scene: there are too many stores, competition is fierce, price wars have broken out and dozens of locations are at risk of closing.

 

"Unfortunately, right now, there's blood in the streets. We're just carving up the pie too much and the market's not there. It's going to be ... who can persevere and who has a strong balance sheet and some supportive shareholders," he said.

 

 

According to the latest information from Alberta Liquor, Gaming and Cannabis (AGLC), there are 761 licensed cannabis providers in the province, with 194 of those located in Calgary.

"I think 30-40 percent of locations will be shut down in the next 12 to 24 months," said Kolochuk.

 

One analysis of the Canadian retail cannabis market, done earlier this year by data firm Cannabis Benchmarks, concluded that Alberta has too many retail outlets based on comparable data from Colorado and Oregon, two U.S. states that legalised the sale of cannabis in 2012 and 2016 respectively.

 

Het Shah, who compiled the data, says Colorado has one recreational retailer for every 9,600 residents, while in Oregon there is one store for every 6,150 people.

Alberta has roughly one retail outlet for every 5,911 people. By comparison, the national number is pegged at one store for every 12,184, according to Shah's research. He says there is room for expansion across the country, just not in Alberta.

 

"On average, we found that Alberta had roughly 27 per cent more stores than required to serve the population," he said.

 

This is an issue many Alberta residents, retailers and cannabis investors have been warning about since the onset of legalisation as Alberta, Manitoba and Saskatchewan were less restrictive on the cannabis licensing, initially to attract cannabis businesses and strengthen their local economies, but as time as progressed we are starting to see the repercussions of this lack of foresight, much as in the U.S. states with a more limited licence policy are facing less issues than states with a more open policy.

 

Now while for most small private retail operators this issue is reaching a breaking point, for larger retail brands such as DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) there is opportunity for acquisition and growth. Delta 9 just recently announced that on September 6, 2022 it completed a previously announced transaction with 10552763 Canada Corp. whereby, pursuant to the asset purchase agreement between the Company and the Vendor dated August 12, 2022, the Company acquired all or substantially all of the Vendor’s assets relating to the operation of three Garden Variety branded retail cannabis stores located in Manitoba, two in Winnipeg and one in Brandon.

 

“We are pleased to announce the closing of another strategic retail acquisition to grow our market share across the Canadian prairies,” said John Arbuthnot, CEO of Delta 9. “Delta 9 now operates 38 cannabis retail stores, positioning us as one of Canada’s largest vertically integrated cannabis retailers.”

 

Alberta, Manitoba and Saskatchewan are not alone in witnessing a consolidation period as we see a similar example with High Tide Inc. (NASDAQ: HITI) (TSXV: HITI), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, who announced the completion of its acquisition, through Companies' Creditors Arrangement Act ("CCAA") Proceedings, of the final retail cannabis location out of the nine store portfolio for CAD$1.1 Million. The Store is located at 7555 Montrose Road in Niagara Falls, Ontario, and is situated in Niagara Square, an outlet mall anchored by numerous national big box and discount retailers.

 

For the three months ended April 30, 2022, collectively, the Store, along with the eight Choom locations that were previously acquired by High Tide, generated annualised revenue of CAD$10.2 million and annualised Adjusted EBITDA of CAD$1.3 million. The purchase price (inclusive of all nine Choom locations) represents 3.8x annualised Adjusted EBITDA for the three months ended April 30, 2022.

 

High Tide Inc. also just recently filed its financial results for the third fiscal quarter of 2022 ended July 31, 2022. One of the key highlights was revenue increasing to $95.4 million in the third quarter of 2022 compared to $48.1 million in the same quarter last year, representing an increase of 98%. Sequentially, revenue increased by 18% compared to the second quarter of 2022

 

 

We are not only seeing consolidation on a small scale with retail acquisitions and mergers, but also on the larger scale like with last month’s announcement from SNDL Inc. (Nasdaq: SNDL) and The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) who announced that they have entered into an arrangement agreement to combine their businesses and create a leading vertically integrated cannabis platform.

 

Pursuant to the terms of the Agreement, SNDL will acquire all of the issued and outstanding common shares of Valens, other than those owned by SNDL and its subsidiaries, by way of a statutory plan of arrangement.

 

With 555,500 square feet of cultivation and manufacturing space and 185 cannabis stores under the Spiritleaf and Value Buds banners, the combined company will offer a complete portfolio of branded products to consumers in Canada through its own supply and distribution channels. With approximately $314 million1 in net cash and no debt, SNDL will continue to have one of the strongest balance sheets in the North American regulated cannabis industry. SNDL will also have the highest pro forma Canadian cannabis revenue on a last fiscal quarter annualised basis.

Now while provinces like Alberta are having issues with an abundance of licences, in the province of Quebec, we are seeing a serious backtrack with their most recent move to make home growing illegal.

Recently in Quebec City, the Supreme Court of Canada heard arguments on the constitutionality of a Quebec law that forbids people from growing cannabis plants for personal use.

 

Janick Murray-Hall is challenging the ban on the grounds that it is unconstitutional and that it directly contradicts the federal Cannabis Act. Passed in 2018, the federal law makes it legal for Canadians to cultivate up to four plants for personal use.

 

"We seem to be putting aside the existence of this right to grow," Murray-Hall's lawyer Maxime Guérin told the nine Supreme Court justices.

 

"There's an opposition between the federal position and the provincial position."

 

The lawyer arguing on behalf of the attorney general of Quebec, Patricia Blair, told the court that the Criminal Code is meant to prohibit certain actions and does not give people positive rights.

That means the Cannabis Act does not entitle people to grow their own plants, it just makes it not illegal to do so, she said.

Quebec has been a province under constant criticism from the cannabis industry and cannabis advocates for continually lagging behind other provinces with regards to both its recreational and medical cannabis market run by the SQDC.

 

There has been criticism surrounding funding, licensing, distribution and recreational and medicinal access and things don’t seem to be improving.

 

One recent news story discussed how some medical cannabis operations have refused onboarding more patients due to funding issues.

 

Santé Cannabis is the only no-fee medical cannabis service covered by Quebec's public health insurance.

Patients would get a referral from their doctor, then be paired with a nurse-practitioner and physician to learn which cannabis products could work for their specific needs. The organisation does not sell cannabis.

 

"It really is an essential health-care service that isn't offered by the SQDC, isn't available in pharmacies and clinics or hospitals across Quebec, we're here because there's an important and critical need," said Prosk.

 

By law, only doctors and nurse-practitioners can write a medical document like a prescription for cannabis. But less than 10 percent of doctors in Quebec actually prescribe cannabis, the lowest in Canada, said Dworkind.

 

Even the more populous provinces of Canada have seen massive complications in their cannabis industry as both BC and Ontario have had recent meltdowns of their government run wholesale distribution networks with the BCLDB strikes causing layoffs and closures and the AGCO not faring much better.

 

As each province fails outright at effectively competing with the illicit market and continues to suffer from government incompetence and shortsitedness, the Canadian Federal government has launched their long awaited review of the Cannabis Act that came into existence four years ago legalizing cannabis in Canada.

The review is supposed to determine if the legislation is meeting with the needs and expectations of Canadians.

George Smitherman, president and CEO of the Cannabis Council of Canada said they welcome the review but want to see urgent relief from the tax and regulatory burden on legal cannabis producers to enable competition with the illicit cannabis industry.

“Some areas where we’re really in need of reform to compete better with the Illicit market are to restore some order of financial viability for licensed participants, to give us some more flexibility to communicate with our consumers and to reduce some of the regulatory burden that we’re experiencing,” Smitherman said.

CTV National News spoke with the former CEO of cannabis behemoth Canopy Growth, the president of the Cannabis Council of Canada, and a brand partnerships expert who currently works for a company that is connecting consumers with black market products.

While nearly everyone working in the marijuana game agrees that wholesale changes are needed, finding a consensus on how to move forward remains elusive.

 

Industry complaints range from sky-high taxes, government overreach and advertising restrictions to the proliferation of the black market.

 

Leafythings, an online cannabis directory, was recently given the “best innovative technology” award at a national industry gala, though their big win turned heads mainly because the products they offer online come from both licenced companies and unregulated retailers – which lawmakers still point to as illegal.

 

George Smitherman, the president of the Cannabis Council of Canada, believes that “the playing field is nowhere near level. There's illegal retail store fronts, there’s also considerable illegal delivery services which are also largely ignored (by the authorities).”

 

As this review continues Canadian cannabis companies such as Aurora Cannabis and Canopy Growth have both not only seen massive decline in their stock prices over the last two years but have also been dropped from the S&P/TSX Composite Index and S&P/TSX 60 Index.

 

As both investor confidence, consumer confidence both medically and recreationally and the confidence of cannabis business operators all continue to decline due to a market that has been clearly mismanaged by both the Provincial and Federal Governments, one can only guess what the results of this current federal review will be and how or if the Canadian cannabis industry can bounce back in the face of so much adversity.

 

Canada may have been the first man through the door when it came to federal legalisation but a success story it is surely not.

 

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