Cash to remain king for pot companies amid pandemic: Linton
When it comes to cannabis companies looking to survive the COVID-19 pandemic, it will help to have some cash on hand. That's what Bruce Linton, now executive director of U.S. cannabis operator Vireo Health International Inc., told BNN Bloomberg on Monday. Linton said his former company, Canopy Growth, as well as Cronos Group, are in a select group of well-capitalized pot companies that should be able to emerge from the current crisis. "I frankly don't see cash coming in. U.S. companies are very busy but their access to capital is quite limited," he said. Linton added that pot companies with dedicated medical patient bases, will also fare well, as medical marijuana has been deemed an "essential service" in many parts of the U.S. and Canada.
iAnthus delays Q4 results, to default on interest payments
U.S. cannabis operator iAnthus Capital Holdings announced Monday that it would default on interest payments on US$157 million worth of debentures, citing liquidity constraints caused by COVID-19-related market conditions. The payments were due March 31, the company said in a statement. iAnthus said that a special board committee was formed to explore strategic alternatives to address its capital needs. It also delayed the release of its fourth quarter results, without providing a date on which it would be made available.
CBD drug no longer a controlled substance by D.E.A.: GW Pharma
GW Pharmaceuticals said in a release on Monday that the U.S. Drug Enforcement Administration confirmed its cannabidiol formulation is no longer subject to the Controlled Substances Act. GW's cannabidiol product, Epidiolex, was the only CBD medicine approved by the U.S. Food and Drug Administration, and is used in treating child epilepsy. Altacorp analyst David Kideckel said in a report that the descheduling is significant for the U.S cannabis industry, as it moves the needle towards CBD being a legal substance at the federal level.
Fire & Flower launches curbside service in Sask., says Ontario shutdown to lead to increased illicit sales
Canadian cannabis retailer Fire & Flower Holdings isn't happy that Ontario has shut down licensed pot shops in the province. The company, which has two stores in Ontario said the temporary closures announced last week may "bolster the illicit market and the potential sale of unregulated, potentially harmful products without oversight of health and safety practices, inventory tracking, product testing and sales and marketing to young persons." Meanwhile, Pineapple Express, the province's only legal delivery service, announced Monday it would expand its footprint into three new cities in Ontario.
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