WeedLife News Network

Will These Cannabis Stocks See More Momentum?

Cannabis has been illegal at a federal level in the US since 1970, when the Controlled Substances Act was passed by the Congress. Things started to change in 1996, when California became the first state to legalize medicinal use of marijuana. Since then it has been a long and treacherous road, but most states (35 to be more exact) have legalized the medical use of cannabis. In 2012, Colorado and Washington became the first states to legalize recreational use of cannabis and some other states follow suit. Currently, 15 states legalized the recreational use of cannabis and in 16 other states the consumption for recreational purposes is de-criminalized, and more reforms in this area are expected in the nearest future.

We know what you’re thinking: isn’t an article about “cannabis scalability” a bit premature? After all, we’re talking about an industry that’s still federally illegal. How could businesses plan for the future when marijuana laws are in constant flux? 

True, scalability is trickier in the cannabis sector, but that doesn’t mean business owners shouldn’t consider it. Cannabis may be a new industry, but it’s moving at a rapid pace. Competition in recreationally legal states is already intense, and you’d better believe established companies have a game plan for new markets. 

According to the Canadian Hemp Trade Alliance, Canada’s hemp acreage and export value are both up more than 20% this year.

“The Canadian hemp industry continues to grow in 2020 despite the challenges posed by COVID-19,” CHTA board chairman Keith Jones said in a statement after the group’s annual meeting, held online this year. “Canada seeded some 92,000 hemp acres in 2019, with exports exceeding $110 million Canadian dollars ($85 million).”

The United Nations has voted to remove cannabis from its classification as a dangerous drug. This week the U.N. Commission on Narcotic Drugs voted to remove cannabis and cannabis resin from a category of the world’s most dangerous drugs. This decision could potentially jumpstart the global medical marijuana industry. Many cannabis companies have eyed global expansion, but the markets have proven to be challenging as laws have remained strict.

The U.S. Department of Agriculture (USDA) Risk Management Agency (RMA) has announced an expansion of the pilot Multi-Peril Crop Insurance (MPCI) plan for hemp that will take effect in the 2021 crop year.

MCPI is the most common form of the federal crop insurance programme in the USA that insures against crop yield losses from all natural perils such as weather, fire and pestilence by enabling farmers to insure a certain percentage of historical crop production.

While delivered by private companies, MPCI is reinsured by the federal government.

The new states to be included for MPCI coverage are Arizona, Arkansas, Nevada and Texas – but only select counties within each. Additionally, 13 new counties are being included in states with existing coverage.

On Tuesday, Dec. 8, from 1-2 p.m. CST, the Minority Cannabis Business Association (MCBA), along with the U.S. Hemp Roundtable (USHR), will host a free webinar, “Cultivating Entrepreneurship in the Hemp Industry: A Complimentary Webinar for Small and Minority-Owned Companies.” The webinar is designed to provide essential information for small and small minority-owned businesses and engage all industry stakeholders.

Zimbabwe sees export earnings from cannabis outstripping those of tobacco by almost three times after last year legalizing the cultivation of the plant for medicinal use.

(image: Cresco Labs)

As the industry standards continue to be defined, this is the packaging every weed company should focus on.

It may come as a shock to you, but most people don't know much about cannabis. A Science Daily study about THC levels in edibles found that most consumers aged 16—30 could not identify if an edible had low or high THC levels based on the label. Add to that the fact that roughly 30% of Americans consume cannabis, which leaves a sizable audience who can benefit from cannabis if they knew more about it. 

(image: Inside a GrowGeneration hydroponic garden center. Source: GrowGeneration)

GrowGeneration Corp., the largest hydroponic garden-center chain in North America, is on a tear worthy of its name.

The gardening supply company has gained over 700% so far this year, making it the best-performing cannabis stock of 2020 amid a sector-wide rally on hopes the U.S. is poised for federal legalization after the election.

Investors are drawn to the $1.6 billion retailer, which sells equipment used to grow pot, as it’s one of the few U.S.-based cannabis plays listed on the Nasdaq. It’s also free of the legal risks that growers pose as it doesn’t actually sell the plant itself.

Marijuana firm Aurora Cannabis (TSX:ACB)(NYSE:ACB) has entered into one of the biggest medical cannabis supply deals by a Canadian pot grower with an Israeli firm to-date. This comes after the Canadian marijuana firm announced its two-year supply agreement with Cantek, a leading cannabis market player in Israel.

Aurora Cannabis said it “intends” to supply a “minimum of 4,000 kilograms of bulk dried cannabis flower” per annum to Cantek in a two-year deal that could be extended. The volume involved could make the ACB deal one of the largest export deals to Israel by a Canadian firm to-date.

Commissioners seem ready to close out a bumpy policy-setting process next week with a vote to adopt new regulations that would reshape the legal marijuana industry to include a home delivery aspect, but that decision could give way to a legal challenge in short order.

Through an attorney, some existing marijuana retailers recently threatened to sue the Cannabis Control Commission if it votes to adopt its latest set of industry rules on Monday, as is expected. Though the new regulations affect the entire marijuana industry, the provisions that would allow a new class of licensees to deliver marijuana to customers at home have drawn the most controversy.

If passed, the measure will improve Mexico’s living conditions while reducing drug trafficking crime. However, cannabis advocates and legal experts have several concerns.

The luscious green plants stretch as far as the eye can see. Row after row, lovingly tended in a glasshouse that’s roughly the same size as 34 football pitches.

Thought to be one of the UK’s largest glasshouses, the 45-acre glasshouse in Wissington, Norfolk, sits in an area known for the growing of crops, vegetables and fruit, from peas and beans to tomatoes and strawberries.

But this crop is slightly different. Once filled with tomato plants, the glasshouse owned by British Sugar is now home to hundreds of thousands of cannabis plants grown for the pharmaceutical company GW Pharmaceutical.

Legal cannabis continues to become a new reality in states throughout the U.S., giving lawmakers the unique challenge of installing a regulatory system on newly established marijuana markets. 

California is largely seen as the leader of the cannabis industry (both legal and illegal) due to the state industry’s size, experience, and innovative spirit. But the growing pains experienced by California’s legal cannabis market in its first four years offers essential lessons to states that are actively setting up their cannabis programs for the first time. 

Here are some issues newly legal states should tackle to ensure a smooth transition. 

The day before Thanksgiving has a bit of a sordid history. Back in 2007, the day was coined ‘Drinksgiving’ or ‘Blackout Wednesday’ by college students flocking back home to be with family for the holidays. Unfortunately, it is also a horrifically common night for drunk driving accidents, surpassing New Year’s Eve by a longshot.

‘Tis the season for America’s favorite foodie holiday, and whether turkey, tofurkey, or none of the above are on the menu, this is sure to be a Thanksgiving like no other. With Covid-19 spikes turning the U.S. map red and growing concerns about the capacity of states to handle an even higher coronavirus positivity rate if citizens choose to gather, some thought leaders in the cannabis industry are taking a stab at predicting the impact on Thanksgiving sales.

In the Nov. 3 election, voters in New Jersey voted to legalize cannabis for recreational and/or medical use. As the marijuana industry continues to grow generating jobs and profits in New Jersey, CPAs have been asked to provide their services to businesses that cater to the ever-growing industry–but this is uncharted territory.

Precision® Extraction Solutions ("Precision"), the world leader in cannabis and hemp extraction technology, today announced a strategic partnership with Pressure Safety Inspectors (PSI). Through the partnership with PSI, Precision is launching a safety and certification program that will streamline compliance when buying Precision extractors.

A large scale East Ladner greenhouse which made the switch from vegetables to cannabis has deal to utilize renewable natural gas from the Vancouver Landfill.

Village Farms International Inc. announced its wholly owned subsidiary, Village Farms Clean Energy Inc., has renewed and expanded its existing contract with the City of Vancouver, which operates the landfill in Delta, under which the greenhouse receives captured landfill gas.

The plan is for Village Farm to significantly reduce its reliance on natural gas to produce CO2 in its operations, transitioning and converting landfill gas into renewable natural gas (RNG), which will also generate food-grade liquid CO2.