Canopy Growth reported a net Q1 non-cash loss of $1.28B, along with net revenue of $90.5M, down from an already weak $94.1M the previous quarter. Analysts expected $109M or more in revenue. The company acknowledged it remains three to five years away from profitability.
Globe and Mail
The company increased its dry-flower sales by 94% over the quarter.
Canopy released interim CEO Mark Zekulin's remarks in full. He reiterated the company strategy of building out its CBD platform in the US and aiming to acquire Acreage in full upon US legalization, and predicted the company would hit its $1B annualized revenue target by March, 2020.
The first ousted Canopy co-founder, Chuck Rifici (now CEO of Auxly Cannabis), reported he and Canopy have dropped their claims/counterclaims over his dismissal.
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For the second time this summer, Health Canada found CannTrust noncompliant—this time at the company's production site in Vaughan, Ontario. The company is left with no productive assets.
Globe and Mail, MJ Biz Daily
Last fall, CannTrust shares traded at more than $15. On Monday they closed at $3.04.
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Statistics Canada released its second-quarter National Cannabis Survey, and the biggest takeaway is the number of Canadians using cannabis between April and June has held steady at roughly 16% over the last year—except for those above 65.
A report by the Ottawa Hospital, the University of Ottawa and Ottawa's Bruyère Research Institute found the 260 REC stores across Canada (at the time of the research) were concentrated in low-income neighbourhoods.
Tilray reported revenue of $45.9M (beating estimates of $40.3M), but posted a loss of $17.9M when analysts only expected losses of $14.4M.
After promising and failing to make a statement last Thursday about its decision to raid a home and apartment in order to seize three plants spotted by an off-duty RCMP officer on a neighbourhood garden tour, the Revelstoke, BC detachment of the RCMP refused to comment further on the case.
Nipissing First Nation Chief Scott McLeod said his Council supports the individual from his community who succeeded in applying for an Ontario REC retail license. However, the Chief said, "We don't necessarily support the idea that the province has jurisdiction in our First Nation lands. we're still pursuing the avenue of working out a bilateral agreement with the federal government so we can maintain jurisdiction and the creation of laws in our land."
The government's new cannabis-possession records suspensions won't likely be much use in the North, say lawyers and academics. Though the records-suspensions themselves have no cost, they require hundreds of dollars in spending to order criminal records and other information, and Northern people are less likely to be able to afford that. As well, Northerners convicted of cannabis possession are usually also convicted of other crimes at the same time.
After members of Chippewas of Nawash Unceded First Nation protested locally owned cannabis company Wiisag was licensed without proper consultation, the community's Band Council asked Health Canada to withhold a license for the facility. Health Canada agreed. Chief Greg Nadjiwon and his Council stressed they were not opposed to cannabis, but were opposed to Wiisag "for environmental and other reasons."
Owen Sound Sun Times
University of Calgary researchers—including former Degrassi-star Dr. Rebecca Haines-Saah—considered 1,047 studies related to cannabis and mental health to develop a report on how researchers should approach cannabis.
Technically, only licensed REC retailers may sell CBD products—but unlicensed companies like illicit Toronto CBD-seller Calyx Wellness use lavish storefronts to appear to be operating within the law. Consumers seeking only CBD products for health and wellness may not understand the legality of products they're buying. Fortunately this week, Health Canada issued a long-awaited factsheet on CBD and its regulation in Canada. It includes the brass tacks of legality for a variety of CBD-related discussions.
MED activist and dispensary owner Chris Enns was charged with possession of cannabis for the purpose of selling, as well as for the production and distribution of illicit cannabis. He plans to challenge the constitutionality of MED access laws.
Cannabis packaging remains a source of complaint across the country. For REC retailers and their customers, Health Canada's demand that consumers buy cannabis without being able to open, see, or smell it provides one more barrier to adopting legal REC.
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