An Exciting First Half and 12 Stories from New Cannabis Ventures

This is a copy of the July 1st edition of our weekly Newsletter, which we have been publishing since October, 2015.


With 2018 now halfway behind us, we can reflect upon what has truly been an eventful beginning to the year. Some of the key milestones have been the first approval by the FDA of a pharmaceutical derived from botanical cannabis, the improving federal political outlook in the U.S. and the passage of the Cannabis Act in Canada, making it the first nation to legalize cannabis for adult access. While stock prices as measured by the Global Cannabis Stock Index and the Canadian Cannabis LP Index fell, this follows a very strong performance in the back half of 2017 ahead of California legalizing.

In the U.S., the big story this year has been capital-raising since mid-April, when President Trump signaled his willingness to defer regulation of cannabis to states. Recall that the year began with the rescission of the Cole Memo, a move by the Attorney General that resulted in a huge dislocation in the market as investors and operators feared the progress made over the past few years might come to a halt. We have seen dedicated cannabis-focused funds raising and deploying capital into leading public and private companies, and we note that there has been substantial investment from broader funds into the ancillary space as well.

In Canada, over $2.3 billion has been raised in primary capital raises by just the public licensed producers. This excludes warrant exercises and raises from pre-public LPs, ancillary companies and ACMPR applicants. This figure is double the amount raised cumulatively to date from late  2015, after Trudeau was elected, through the end of 2017. We continue to expect that the ancillary market will attract some investor attention, and we remind our readers that leveraged ETFs will be introduced shortly and could add some price volatility.

Looking ahead, we expect to see friendly capital markets open the door to more high-quality U.S cannabis operators (both direct and ancillary) going public, mainly through the Canadian Securities Exchange, though we are aware of a potential ancillary NASDAQ IPO as well. In Canada, we anticiapte the October 17th implementation of retail sales will galvanize global attention. Between now and then, we will learn more about distribution in Alberta, British Columbia and Ontario. Finally, we believe that other geographies will command increasing focus, including Europe, Latin America and Africa, all of which are rapidly embracing medical cannabis.

Enjoy your holiday this week!

TerrAscend is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market.

To learn more about TerrAscend, visit the company’s Investor Dashboard that we maintain on its behalf, click the blue Follow Company button in order to stay up to date with their progress.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:

To get real-time updates download our free mobile app for Android or Appledevices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers.

View the Public Cannabis Company Revenue Tracker, which ranks the top revenue producing cannabis stocks that generate industry sales of more than $2.5m per quarter.

Consider subscribing to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013 for more in-depth information and market intelligence about the publicly traded cannabis sector.

Discover your place in the cannabis industry by visiting our Careers and Jobs Page and learn which companies are hiring aggressively.

Alan & Joel

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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