Pot stocks among biggest market losers in second quarter

Cannabis investors must have a pretty strong stomach after what the sector went through in the past quarter. Canadian pot stocks were among the biggest laggards in the second quarter of 2019 for a myriad of reasons, ranging from softer-than-expected sales to supply chain issues that continue to punish the sector. The biggest decliner was CannTrust Holdings, but it was also a rough quarter for Aphria, Hexo Corp, Aurora Cannabis, Cronos Group and Canopy Growth. Even U.S. cannabis companies weren’t immune to bearishness in the second quarter with Curaleaf, Harvest Health and Recreation, and Acreage Holdings all trading in the red over the past three months.

Maine governor inks bill to introduce recreational cannabis next year 

Recreational cannabis is coming to Maine next year. Janet Mills, the state’s governor, officially put her signature on a bill late Thursday that spelled out how Maine residents can grow, buy, and sell legal marijuana, per the Portland Press Herald. The regulations signed by the governor allow only people who have lived in Maine for four years to seek a licence to grow or sell marijuana, make marijuana products, or own a majority interest in a cannabis business. Language that limited out-of-state control of Maine cannabis businesses was dropped from the final rules. Industry observers estimate Maine’s cannabis market will reach US$107 million in 2020.

Constellation Brands ‘not pleased’ with Canopy Growth’s recent financial results

U.S. beverage company Constellation Brands, which also has a minority stake in Canopy Growth, is writing down the fair value of its Canadian cannabis investment by a sizeable amount after it reported its fiscal first quarter results on Friday. Constellation reported a US$828 million decrease in the fair value of its 45-per-cent stake in Canopy Growth investment, for which it spent $5 billion last August. Constellation’s CEO Bill Newlands said he remains “happy” with its investment in Canopy and the long-term prospects of the business, but the company was “not pleased” with its recent financial results. Still, Newlands will continue to support Canopy long-term in its strategy to win markets and achieve profitability.

Legal pot here to stay in Canada: Conservative’s Andrew Scheer

Legalized cannabis in Canada is here to stay, even if the Conservative Party is victorious in the country’s federal elections this October. Andrew Scheer told CTV’s Power Play that a Conservative government would not only keep cannabis legal but would also stay the course with its support of pardons for Canadians convicted of pot possession. "We will maintain…the fact that cannabis is legal, we are not going to change that and we do support the idea of people having those records pardoned," Scheer said. Scheer’s comments clarify remarks he made back in October where he did not provide a firm answer on whether a Conservative government would re-criminalize cannabis.

DAILY BUZZ

$7.25
-- The price of a gram of cannabis in Canada, up 4.2 per cent from the prior week, according to the Cannabis Benchmark’s Canada Cannabis Spot Index. This equates to US$2,500 per pound at current exchange rates.
 

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.