Supply woes continue to spoil Canada's legal cannabis debut
The rough start of legal pot in Canada
It’s been three months since Canada legalized the recreational usage of cannabis and it’s been a bit of a rough start. BNN Bloomberg’s Jon Erlichman details how the Canadian cannabis industry has been beset by supply issues, bureaucratic red tape and stumbles on rolling out bricks-and-mortar retail outlets. As Erlichman notes, one of the federal government's key goals with legalization was to reduce the amount of cannabis coming from the illicit market. But until the supply shortages are worked out, industry players expect a significant number of cannabis consumers will continue accessing pot illegally.
Aurora announces US$250M in convertible senior notes
Shares of Aurora Cannabis Inc. were trading in negative territory on Thursday after the company announced it would offer US$250 million in convertible senior notes due 2024. Aurora said it plans to use proceeds from the sale to support its Canadian and international expansion initiatives, for future acquisitions and other general corporate business.
Hexo to trade on NYSE small-cap exchange on Jan. 23
Quebec-based Hexo Corp. announced Thursday it will commence trading on New York Stock Exchange’s small-cap exchange, the NYSE American, on Jan. 23. The move comes amid a growing need for Canadian pot companies to tap a broader investor base, and in Hexo’s case, after the company looks to develop a range of pot-infused beverages. Hexo, which already trades on the Toronto Stock Exchange, will join several other Canadian cannabis producers that have listed on the NYSE, including Aphria Inc. and Aurora Cannabis Inc.
Beer makers eye cannabis to stem lower sales, shifting consumer tastes
Worried by declining sales, beer makers are making a big push into the cannabis space. The Associated Press reports on how cannabis is being used to combat saturated markets and shifting consumer trends. Anheuser-Busch InBev, Molson Coors and Corona brewer Constellation Brands Inc. have all announced partnerships with several Canadian cannabis producers as a potential engine for future growth. However, Wall Street remains cautious about the potential return of investing into cannabis given the current illegality of the drug at the federal level in the U.S.
– How much CSE-listed MedMen Enterprises made in revenue in its fiscal second-quarter, up 40 per cent sequentially from its prior quarter. The company operates 31 cannabis stores in several U.S. states.
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day