Health Canada announced it will reinstate Winnipeg LP Bonify's sales license, which was suspended for eight months after an investigation revealed the company purchased 200 kilograms of illegal cannabis through a broker and sold it to Saskatchewan buyers.
Bloomberg, CTV News
Insiders were stunned by Health Canada's decision. Lawyer Trina Fraser said, "Prior illicit conduct is often a basis for licence refusal...but once you get a licence you can engage in illicit conduct and still keep the licence?? If they get a 2nd chance, then pretty much EVERYONE should get a 1st chance."
Twitter—Courtland Sandover-Sly, Trina Fraser
Both Hexo and CannTrust announced sweeping layoffs. Hexo cut 200 positions across the company, including those of Chief Manufacturing Officer Arno Groll and Chief Marketing Officer Nick Davies. The cuts represented roughly 20% of Hexo's workforce, which grew to about 1,100 after its May acquisition of Newstrike (producer of Tragically Hip–affiliated REC brand Up Cannabis).
NewsWire, Twitter—David George-Cosh
Hours later, CannTrust announced it was "temporarily" laying off "as many as 140 people, approximately one quarter" of its employees, between now and 2020. NewsWire
Also this week, US-based vaporizer-maker PAX Labs announced it's laying off 25% of its workforce, following US-based cannabis site WeedMaps, which also fired 25% of their staff last week.
MJ Biz Daily
· CannTrust submitted its remediation plan to Health Canada, indicating the intention to carry out all parts of the plan before the end of the first quarter of 2020. Bloomberg
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Hexo—whose stock has declined 35% over the last few weeks—announced it was pushing back its quarterly earnings report (scheduled for Thursday) until Monday as it was raising a $70M private placement in convertible debentures to provide working capital as well as meeting other corporate needs.
NewsWire, Financial Post
Hexo CEO and co-founder Sebastien St-Louis was joined by three board members and co-founder Adam Miron in buying $8.67M worth of debentures.
MJ Biz Daily
Zenabis took a different approach to financing, attempting to raise $20.8M in a deeply discounted rights offering with shares 73% lower than five-day market price—and shareholders were punished for it, as Zenabis stock lost 42% of its value between Wednesday and Thursday
Globe and Mail, Twitter—Ryan Lee
The Green Organic Dutchman announced revised construction schedules with the aim of reducing its 2020 production capacity by 85% (from an expected 147,500 kilograms to between 20,000 and 22,000 kilograms) in the hopes of achieving profitability within a year.
NewsWire, MJ Biz Daily
New Brunswick charted a striking 59% increase in sales, while Yukon sales increased by only 1.8%. Manitoba's REC sales actually declined by 1.7%.
BC is eager to keep the momentum going, especially since the Business Council of BC forecasted feeble economic growth in the province. Solicitor general Mark Farnworth is working to develop a framework to allow widely desired farm-gate sales by LPs at their production sites, which would be a boon to the province's burgeoning craft industry.
Business in Vancouver, Twitter—Mike Hager, Business In Vancouver
Vancouver REC store Village Bloomery asked LP sales reps to kindly stop harshing their vibes by shaking staff down for sales numbers and hovering eerily around customers.
Kitchener felt the sales boom as local LP James E Wagner announced it was looking to hire 400 workers over the course of 2020. The company hired the first 15 workers at a job fair last weekend, noting they were "overwhelmed" by interest from prospective hires.
CEO, Critical Mind Inc., Adelanto CA Affiliations: CA State Bar; Board member, Adelanto Growers Association
Critical Mind, Inc. is a Medical Cannabis Cultivation and Manufacturing Facility located in Adelanto, CA. Providing the highest quality Cannabis products. Compliance without Compromise! criticalmindinc.com
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Canadians went to the polls and unenthusiastically elected Justin Trudeau's Liberals to a tepid minority government, but as Bruce Linton predicted this summer, the election largely ignored cannabis.
Yahoo Finance, Twitter—David George-Cosh
After first giving licenses to First Nations eight applicants in August, the Alcohol and Gaming Commission of Ontario will issue 26 more licenses on First Nations territories.
Globe and Mail
As REC beverage makers rush to get their products ready for the new market, a number of companies are turning to white-label deals with companies who can make and/or package their products.
Globe and Mail
Freedom Cannabis's production site west of Edmonton will soon switch on the largest rooftop array of solar panels in Canada, helping remove the company from Alberta's coal-fired electrical grid.
MJ Biz Daily
Nunavut's government is considering expressions of interests from REC retailers, but has not yet decided how it will open physical stores in the territory. For the moment, cannabis can be purchased in Nunavut only online through private retailers Tweed and Vertical Cannabis, but Liberal finance minister George Hickes said online sales weren't doing enough to displace the illicit market.
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