Aphria’s slide continues amid analyst, investor concerns

A day after a short-seller report on Aphria’s Latin American operations sent its shares tumbling about 27 per cent, the pot producer’s stock continued to fall on Tuesday amid bearish investor sentiment and analyst concerns. Aphria’s stock has now fallen more than 40 per cent after Quintessential Capital Management and Hindenburg Research published a report that alleges Aphria acquired foreign companies in Jamaica, Argentina and Colombia at "vastly inflated" prices that appear to be “largely worthless.” Meanwhile, GMP Securities and Bank of Nova Scotia analysts placed their ratings of the Leamington, Ont.-based company “under review,” while the Bank of Montreal revised its price target of the company’s stock to $9 from $22.

Where the Champagne of Pot is grown in Canada

Behold, cannabis connoisseurs, there is a Moet & Chandon Champagne of pot and you can find it in British Columbia. Bloomberg’s Natalie Obiko Pearson reports on the rise of artisanal pot where shops pay as much as 25 euros a gram (US$805 an ounce) for the best strains. In B.C.’s interior, these growers are often small-time and grow in smaller batches where cultivation is more of an art than a science. The payoff could be huge – the region produces about 25,000 kilograms a year of high-class bud, roughly an eighth of Canada’s expected annual production in legalization’s first year.

Cronos Group confirms talks with Altria

Cronos confirmed Tuesday in a press release that the pot producer is engaged in discussions concerning a potential investment by Marlboro cigarette maker Altria Group. Cronos added that no agreement has been reached between the two companies and “there can be no assurance such discussions will lead to an investment or other transaction involving the companies.” Shares of Cronos spiked Monday following a report from Reuters that the two companies were engaged in discussions for a possible acquisition. Philip Morris International, one of Altria’s rivals, is keeping clear of the burgeoning pot market for now, the company’s CEO told Bloomberg.

Are we ignoring the environmental impact of legal pot?

With cannabis now legal in Canada, some environmentalists are raising concerns about the impact that the proliferation of the drug will have on the environment. In an opinion piece in The Guardian, amid the tide of marijuana legalization steadily sweeping North America, so too would be the potential damage of the more than 95 pesticides that can be used by licensed cannabis producers from leaching into nearby water bodies and reaching its flora and fauna. More work needs to be done to better understand if freshwater sources could be contaminated by the increase in cannabis production, the opinion piece states.

DAILY BUZZ

1.4 million 
–  The amount of cannabis-infused softgel capsules that Aurora Cannabis expects to produce in a week once its Quebec facility reaches full production next year

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