More Canadians passing on beer in year one of legalization

Canadians consumed less beer during the first year of cannabis legalization, according to Bloomberg News. The report cites data from industry advocacy group Beer Canada, which found beer volumes fell by three per cent through November. Declining sales have led to several partnerships between alcohol and cannabis companies, such as Constellation Brands Inc.’s investment in Canopy Growth Corp. in November 2018. The recent decline in volumes is “far worse” than trends seen in the previous four years, when beer industry volumes fell an average of 0.3 per cent, according to Cowen & Co. analyst Vivien Azer.

Pot accessory maker High Tide secures $10M credit facility

High Tide Inc., a Calgary-based manufacturer and wholesaler of cannabis paraphernalia listed on the Canada Stock Exchange, announced it has secured a $10-million credit facility from Toronto’s Windsor Private Capital. High Tide said in a release it intends to use the funds to acquire and build retail cannabis stores in Alberta and Ontario, as well as for “general working capital purposes.” The company touts partnerships with Snoop Dogg and Paramount Pictures and investments from major cannabis producers Aphria and Aurora Cannabis.

Harvest sues to terminate takeover of Falcon

Harvest Health & Recreation is trying to get its money back from its 2019 takeover of California-based Falcon International. Harvest is suing Falcon for breaching the terms of the agreement. Harvest claims Falcon hasn’t met its legal obligations in a number of ways, including failing to hand over audited financial results, thus preventing Harvest from moving forward with the deal.

Supreme Cannabis shares downgraded after abrupt departure of CEO

CIBC Capital Markets is downgrading shares of Toronto-based pot producer Supreme Cannabis to neutral from outperform, cutting its price target to 65 cents from $1.25 per share. In a note yesterday, analysts John Zamparo and Krishna Ruthnum said the abrupt exit of CEO Navdeep Dhaliwal, which was announced Monday, signals “upcoming turbulence.” CIBC noted that Dhaliwal’s “significant industry knowledge was an asset that’s now been disposed of, and we see investors left with more questions than answers at this point.” Additionally, CIBC deemed Supreme’s 2020 revenue forecast of $150 million-to-$180 million “unattainable,” adding that consensus stands at just $90 million.

Toronto rugby team welcomes CBD into the pack

The Toronto Wolfpack – the only North American team in Europe’s top rugby league – has announced that the CBD-infused Rugby Strength body cream will be its primary jersey sponsor for the upcoming season. Rugby Strength is a line of athlete-focused CBD products borne out of the Wolfpack’s partnership with Vancouver-based companies International Cannabis and Organic Flower Investments Group via its HowlBrands subsidiary. The Wolfpack – which also has a sponsorship pact with Air Transat – joined the U.K.’s third-tier rugby league in 2017 and has advanced to the top-tier Super League in just three seasons.


-- Predicted cannabis edible and beverage market share in Canada by the end of 2020, according to analytics firm Headset Inc.

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