The Talking Hedge

A positive historical relationship exists between cannabis stock prices and the percentage of stock used in M&A deals.  Recently the percentage of stocks considered during an M&A process have ebbed & flowed with the stock market. Over the last six months,70%+ chose to use equity, an indication of what's believed to be an emerging trend of higher stock components. A counterintuitive trend is emergi...

Michael Burwick and Nick Richards of Greenspoon Marder law firm discuss cannabis law and the benefits of section 453, which could dwarf the impact of 280E. Episode 906 of The #TalkingHedge with Pro Cannabis Media... https://youtu.be/MSnD2cBglZI

Cannapreneur Partners is building a vertically integrated cannabis company that will be focused on servicing the rapidly emerging east coast market. Cannapreneur Partners mission is to strategically lead and elevate purpose driven entrepreneurs to create a global impact in their industry. Created by Michael Scott, Cannapreneur Partners will be launching their next venture to connect the industries...

Puerto Rico has a thriving medical cannabis program because of the combined efforts of government, advocates and industry professionals who created a legal framework to provide the island’s 3.2 million citizens a new option for managing their health and wellness. Puerto Rico is a U.S. territory and Puerto Ricans are American citizens but don’t have congressional representation and do not vote in f...

Federal prohibition prevents the US Department of Labor’s Bureau of Labor Statistics from counting state-legal marijuana jobs.  The 2022 Leafly Jobs Report found 428,059 full-time equivalent jobs supported by legal cannabis as of January 2022. Last year, the cannabis industry created an average of 280 new jobs per day.  That’s a 33% increase in jobs in a single year. And it marks the fifth year in...

Analyst are expecting revenues for the large MSOs to continue to decline, causing a sharp reduction in their EBITDA estimates for Curaleaf (CSE: CURA) and TerrAscend (CSE: TER) and moderate decreases for AYR (CSE: AYR.A), Cresco (CSE: CL), and Jushi (CSE: JUSHF). Estimates for Columbia Care (CSE: CCHW) and GTI (CSE: GTII) are virtually unchanged, and Verano and Trulieve estimates are higher. Earni...

Marijuana legalization through state legislatures heated up in 2021, and that trend likely will continue this year as lawmakers in several states are expected to legalize either recreational or medical cannabis. The Northeast and mid-Atlantic states are in the spotlight for adult-use marijuana legislative activity, with Rhode Island the top candidate to approve a regulated commercial market, accor...

Flora Growth (NASDAQ:FLGC), the first plant-touching cannabis company to list as a direct IPO on Nasdaq, operations are set up in Colombia.  Advantages of Colombia, cost-effectiveness and experience with growing and exporting commodities. Plans for regional and global expansion. Various barriers of entry across sectors and regions. Interview Outline: *Acquisition of #JustCBD *The importance of dis...

British Columbia reached over $550 million in cannabis sales in 2021, the market clearly shows upward growth. With that being said, British Columbia presents unique challenges for both retailers and brands to succeed. Being a retail operator in any industry is hard work, but the cannabis industry surely presents additional challenges. And finding success in cannabis often means discovering creativ...

According to Coherent Market Insights, the global cannabis extract market is estimated to be valued at $10.74 billion in 2022 and is expected to exhibit a CAGR of 17.3% over the forecast period (2022-2030). The key players operating in the market are focusing on formulating new product offerings infused with CBD oil to provide consumers with easy access.  A hemp survey collected data for hemp foun...

Social cannabis use reform is the next frontier for activism efforts across the globe. For those that do not know what social use reform is, it largely relates to cannabis clubs and lounges. Public use of cannabis is illegal across the globe, even in jurisdictions where cannabis is now legal for adult use. It creates a problem for patients and consumers. They can legally purchase cannabis and poss...

THCV, or tetrahydrocannabivarin, is a compound in cannabis that offers a unique array of effects and medical benefits that sets it apart from other cannabinoids like THC and CBD.  THCV has potential to suppress appetite in people struggling to lose weight, regulate blood sugar levels in those with type 2 diabetes, reduce epilepsy-related seizures, delay neurodegeneration associated with Parkinson'...

Cryptocurrency went from obscurity to U.S. national security, but can it work for the Cannabis Industry? On the one hand, the vast majority of citizens support cannabis legalization, both medicinally and recreationally. We see this reflected every year in local elections that bring more and more parts of the country into the legal cannabis fold. And yet, despite broad public support, marijuana rem...

The Prince George Airport in British Columbia is one step closer to hosting what reportedly would be the world’s first in-airport cannabis store. Air travelers may legally bring cannabis on domestic Canadian flights. Although the airport is a nonsmoking zone, they plan a designated cannabis consumption area for the responsible consumption of cannabis products. “It’s not necessarily because we view...

California hits $420M in monthly sales, while Illinois took in more tax dollars from cannabis receipts than alcohol during 2021. However, retail and wholesale prices continue to decline every month since August 2020 with the exception of January 2021. For example, after hitting a record in December of $140 million, Illinois adult-use cannabis sales plunged 15% to $117.3 million in January. Still,...

In the midst of the post-pandemic recession, governments argue the cannabis industry could diversify regional economies, add value to the flower at source and improve local wages. Although the cannabis market is growing faster than that of wine, beer, tobacco combined, the development of the industry and its economy is held back by the burden of draconian regulations and the lack of coherent polit...

Capital raise activity jumped upward based on renewed hopes of enacting the Safe Act. Total capital raises for the first five weeks of 2022 total $766M, down 48% from last year's total. The average capital raise was $46.8 million last week versus $13.4 million in the same week last year. 2022 M&A activity is up about 83.6% from 2021, with $1.12BM in transactions. Nine M&A transactions closed with...

Time to examine how Prerolls are sold: singles or multiples within a pack. When you compare the market share in the US and Canada, Multi-Packs of Pre-Rolls are more popular in Canada than single Pre-Rolls. For example, in 2021, Multi-Packs accounted for 79% of Pre-Roll units purchased in Canada, and only 25% in the US.   Focusing on different age groups and how they purchase Pre-Rolls in Canada, y...

We'll take a look at the impressive growth of Arizona’s first year of adult-use sales. Witnessing the introduction of adult-use cannabis into a market can be exciting to watch. In markets that are already medically legal, adult-use legalization can result in a drastic increase in the total addressable market for operators and retailers that creates opportunities for growth across the entire supply...

Cannabis was domesticated in what's now NW China around 12,000 years ago, according to an analysis of the genomes of 110 plants from around the world.   China is very sensitive to anything associated with drugs due to its history, keeping marijuana illegal with conviction for drug trafficking punishable by death.   China even banned the use of cannabidiol (CBD) in all cosmetics last March. The exp...

2022 has not been kind to the stock market in general and the cannabis stock market in particular. U.S. cannabis stocks suffered a  20% rout in January, tumbling more than the broader market as hopes for federal marijuana legalization in the near future continued to fade.   Cannabis specific issues in play: *Retail revenue growth has slowed in several key US markets and turned negative in Canada....

The SAFE Banking Act, which only weeks ago seemed defeated when it was stripped out of a military spending bill, has been revived as an amendment to a domestic spending bill in the U.S. House of Representatives.   The U.S. House of Representatives formally attached a marijuana banking reform amendment to a large-scale bill dealing with innovation and manufacturing, marking the most recent developm...

Sales of cannabis-infused beverage market is projected to grow from $915.06 million in 2021 to $19,063.58 million in 2028 at a CAGR of 54%, as companies sought to capitalize on new cannabis consumers seeking a familiar form of consumption and those looking for an alternative to alcoholic drinks.   Cannabis beverage companies, for example, have been cashing in on health-related trends such as Dry J...

Cannabis stock prices and valuation multiples have been trending downwards since peaking in mid-February 2021 with multiples fluctuating around 15x.   They spiked upward in February 2021 on renewed hopes of federal legalization and have drifted lower ever since, despite improving profitability and cash generation, proven access to both debt and equity capital markets, strong cash positions, scaled...

We don’t often examine so many cannabis categories in a single report, but some interesting trends emerge when Capsule, Tincture & Sublingual, and Oil categories are compared in the US and Canada.     When we look at the combined market share for the US and Canada, we can see that the Capsules, Tinctures & Sublinguals, and Oil categories (CTSO), are stabilizing at just below the 1% mark.   When we...