Alcohol sector has ‘valid reason to be concerned’ about cannabis legalisation

CannTrust’s exclusive global JV with Apotex, aiming to develop novel and proprietary MC dosage formats, including sustained-release, provides validation and product differentiation as the competitive environment evolves. A JV with Club Coffee is launching BrewBudz, a patented formulation permitting single-serve cannabis doses using brewing pods compatible with popular brewing machines. A JV with specialty animal health company Grey Wolf will serve the veterinary market. CannTrust is a licensed producer and distributor of medical cannabis and began MC production at its 40,000 sq ft hydroponic indoor facility in Vaughan, Ontario in 2015.

  • However, it is already establishing a presence in Greece to prepare to enter the European market.
  • Tesco is another one of several UK supermarkets to announce big payouts to help to fund needy causes during the pandemic.
  • Your request has been identified as part of a network of automated tools outside of the acceptable policy and will be managed until action is taken to declare your traffic.
  • Market capture by Canadian companies in South America has drawn particular criticism.
  • During the course of 2020, the team was particularly active advising mining clients on the impact of the pandemic, which was reflected in an increase of restructuring, crisis management and corporate governance mandates over the review period.
  • Last month, Michigan has voted to ban all cannabis-infused drinks in a pre-emptive move should the state legalise marijuana for recreational use this month.

Alcohol is a key component of hand sanitiser, a fact that hasn’t escaped the drinks companies of the world, which are busily handing over their supplies of ethanol, or tweaking distilleries and factories to manufacture the hygiene essential. Diageo, the maker of Guinness and Smirnoff, has donated two million litres of alcohol, enough for more than eight million 250ml bottles of hand sanitiser. As we’ve all discovered, hand sanitising whether it’s done using soap or an alcohol-based gel, is one of our best weapons against the virus. The world’s biggest soapmaker, British-Dutch consumer goods company Unilever, has ramped up production and is giving away soap, hand sanitiser, disinfectant and food worth more than $109 million (£88m). Cultivate cannabis, or participate in the legal production, marketing, or distribution of it for medical or non-medical purposes. Another problem that the marijuana industry has had to deal with, is the current U.S. federal law that places severe restrictions on banks and financial institutions that deal with marijuana-related businesses.

Canopy will use some of that capital to continue acquiring businesses, either to add new technology or to scale up the business. It recently bought Europe’s largest cannabinoid-based pharmaceuticals manufacturer, C3, and The Works, which focuses on using cannabis for skincare and to improve sleep. As well as cannabis-infused beverages, Canopy is hoping to be the leader in using cannabis in everything from animal health products to pain relief to health and wellness products. Canopy Growth was the first cannabis stock to go public in North America in 2014 and the first producer to list on the New York Stock Exchange in 2018. The company is pursuing all aspects of the market, selling both medicinal and recreational cannabis – although sales in the latest quarter were heavily skewed in favour of the latter.

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Through Instagram, people can nominate caregivers in order for them to receive some of the fluffy footwear. The brand will be giving $1 million (£800k) worth of donations and products to help key workers to get through the virus outbreak. Best known for its deluxe skiwear, Moncler has written a fat cheque towards the construction of a new hospital in Milan, the city where the company is based. The €10 million ($11m/£8.9m) donation went a long way towards providing the additional 200 intensive care beds the new facility houses.

  • The company has also come to an agreement with Oxford University and Vaccitech for the mass-production and distribution of any vaccine that they manage to develop.
  • Yahoo Finance will soon be upgrading our Conversations message board platform to provide a better experience for our users.
  • It is fully licenced to produce both medicinal and recreational cannabis in Colombia and Uruguay, although the medicinal market is the priority.
  • The parent company of Absolut vodka and Perrier-Jouët Champagne is donating 70,000 liters of pure alcohol to make 1.8 million individual 50ml vials of hand sanitiser and repurposing distilleries in Spain and Ireland, which will serve as hand sanitiser factories.
  • On top of that $10 million (£8m) was allocated for matching donations made by app users, while $50 million (£40.3m) went towards the TikTok Creative Learning Fund, giving grants to educators to support distance learning.

In Illinois, an ‘early application’ scheme for non-medical licences was implemented for established medical cannabis businesses in January 2020 — albeit for application fees of $30,000 plus 3% of the organisation’s annual sales revenue. In Michigan, the Marijuana Regulatory Agency made it a requirement for a number of its licence types that primary applicants already possess a medical cannabis operating licence. This included all licences for retailing and processing cannabis, as well as the majority of cultivation licence types. Michigan also established equivalent licence types between medical and non-medical cannabis regulations, and allowed medical businesses to transfer 50% of their product for non-medical sales to streamline the transition. Emerald Health Therapeutics produces dried cannabis and oils to the medicinal and recreational markets, operating a ‘seed-to-sale’ model.

Quality Inn Fremont

After improving the product range, simplifying its management set-up, restructuring its balance sheet and converting £4.3m of loans into equity, today’s owners have been credited with preserving its identity. In the nearly 40 years since it was founded by a young couple around a kitchen table in Skipton, it has seen moments of marital happiness, commercial innovation and rapid growth as well as separation and tragedy. OF all the businesses set up in Yorkshire’s back bedrooms, living rooms or sheds, few can have had as tangled or as emotional a history as Rohan Design. Europe maintains its ranking as the top foreign location for filings with seven core filings this quarter – with five of these seven against companies domiciled in the UK. This is greater than the total number of filings against UK issuers in the first half of the year and potentially worrying development for the London Market insurers and insureds given the current trends in US litigation and court awards. Don’t Monopolize the Conversation.We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts.

One such company taking on the challenges of cannabis branding is Canadian cannabis company CannTrust. However, in recognition of wide variation in consumer knowledge, interests and uses, CannTrust has created not one brand, but three. And expects to secure over 240 acres of land in total for low-cost outdoor cultivation which it will use for its extraction-based products. Due to the product on hold, some CannTrust customers and patients will experience temporary product shortages. During which time CannTrust had pending applications for these rooms with Health Canada. These rooms were constructed in accordance with regulations and Good Production Practices, and licenses were issued for each of the five rooms in April 2019.

People have different tastes, different preferences and they want choices for different experiences and occasions,” she says. “It’s crucially important to establish a clear sense of our brands with consumers – what they represent in terms of quality and consistency, and what they deliver in terms of flavour and experience. While many may assume there is no major difference between one cannabis product or another, CannTrust sees cannabis branding as vital to its success. CannTrust has accepted Health Canada’s non-compliance finding and has taken actions to ensure current and future compliance. Meanwhile, fellow distributor Breakthru Beverage Group formed an exclusive partnership with cannabis producer CannTrust anddeveloped its own cannabis sales platform.

It is currently ramping-up cultivation capacity to 138,000kg per year and extraction capacity of 50,000kg. The company has agreed to merge with medicinal producer Emblem, creating the ‘largest cannabis medical clinical network’ in Canada. It says merging with Emblem gives it access to higher-margin products like capsules, oil and sprays, and to Emblem’s ecommerce platform and distribution capabilities that will allow it to sell directly to patients.

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North American Marijuana Index – Started in January 2015, this index has two sub indexes – the U.S. Marijuana Index and the Canadian Marijuana Index, depending on which market is the prominent one, decides which index a company is in. The minimum inclusion requirements are market capitalization of $80 billion, average daily trading volume of $2 million and a minimum share price of $1.00. If a company has had over $5 million in revenues the last five years, they are exempt from the requirements. Stellar growth rates continued throughout the 1980s and as it did cash flow became a concern, prompting Rohan to consider other means of funding, including going public. When the markets crashed in late 1987, however, just days before a float, the Howcrofts were left with massive bills and, under pressure from the banks, a sale became the only option.

  • The SCA against Canada Goose alleges it sourced the down and fur used in its clothing products in ways that treated animals in an unethical and inhumane manner.
  • The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in.
  • And you start to think “Hey, I should invest in this company, their stuff is really good!
  • It is also developing new products including tablets, lozenges, sprays, oils and capsules.
  • It has said it will not enter the US market until cannabis is legalised at the federal level, showing it is slightly more hesitant than its competitors.

Future regulation needs to create a better balance between lifting the restrictions of prohibition and ensuring the new markets promote social wellbeing. Colorado’s initial regulatory model, for example, indirectly preferenced existing medical actors by requiring that retailers produced at least 70% of cannabis that they sold. This requirement was pushed for by existing medical businesses as it was already in force to regulate medical cannabis sales, meaning these businesses had already achieved compliance with this regulatory hurdle, potentially prohibitive for smaller market actors. Indeed the requirement had the effect of delaying market access for new businesses, which had to develop capacity to overcome this hurdle. Guarding against excessive influence in policy making necessitates constraining corporate power more generally, to prevent the emergence of corporate monopolies or market dominance by a few large actors. The history of both alcohol and tobacco regulation illustrate how difficult this can be.

The larger the acquirer, the easier it would be to manage the lawsuits, penalties, fines and losses of existing / future business. This will take a year or more to truly fix, making it too big a challenge for the incumbent board of directors. First is The Green Organic Dutchman, they have low revenue compared to peers. The company also had $174 million in cash and only $2 million of debt on March 31st. Regarding the smaller of the 9 companies, for them a transaction would really move the needle, so perhaps they are more inclined to make a move?

Companies around the globe are falling over each other to produce or donate protective face masks and other personal protection equipment . DuPont produces the Tyvek hazmat suit, a PPE essential that has been in high demand throughout the pandemic. Doing its very best not to let customers down, the US biotech and chemicals behemoth has got staff working overtime to keep its nine global manufacturing facilities running 24 hours a day, seven days per week. Many countries around the world are grappling with a shortage of COVID-19 test kits. The biggest giver so far has been Google, which has committed a total of $800 million (£646m).

Expanding beyond a medical cannabis market

They focus solely on pure-play cannabis companies, in other words, ones whose main endeavor is cultivation and/or distribution. You’re spending your hard earned money at the local dispensary and there is a certain brand of CBD oil that speaks to you or a specific company’s weed that makes your day more mellow. And you start to think “Hey, I should invest in this company, their stuff is really good!

is canntrust still in business

The ‘blank slate’ offered by legal regulation can be muddied by existing medical cannabis markets. For jurisdictions with existing medical markets that wish to promote equitable market access, there is an inevitably unequal playing field, given some businesses are already well established, licensed and experienced at producing or retailing cannabis products. New actors looking to break into the market will face a strong competitive disadvantage, potentially requiring intervention to re-level this playing field. The cannabis team at Bennett Jones LLP offers dedicated transactional, regulatory and litigation services for a range of national cannabis producers. Toronto-based Curtis Cusinato and Gordon McKenna advised on CMG Partners’ $282m SPAC offering, the largest cannabis-industry SPAC in history. It also leverages the firm’s broader insolvency practices to advise on a number of restructurings in the industry.

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It already has deals with many of the big guys, including Cronos, Canopy Growth, AusCann and Emerald Health Therapeutics. The company has struck a major deal with ingredients giant Symrise to create Califormulations, a new beverage company that will look to launch organic hemp-based cannabidiol beverages in the US before going global. OrganiGram claims to have ‘one of the lowest cultivation cost per gram’ of any licensed Canadian producer, partly thanks to its proprietary software. It is scaling up rapidly and should have capacity of around 113,000kg per year in 2020 from just 61,000kg at present. Its main facility uses vertical farming methods and it has recently dedicated a section to producing edibles and other derivative products. It intends to launch several new higher-margin products soon, with vape pens to be launched before the end of 2019 and both chocolates and a dry-powdered beverage formulation to be released in 2020.

The board owes it to shareholders to do the right thing and hand over the keys. The board should announce that a sales process has commenced and name the investment banks retained to run the process. Seriously, this is the only honorable exit strategy, and it would maximize shareholder value. The share price is down 45% and it could get worse the longer the board tries to ride out this unmitigated diaster.

New cannabis markets have presented opportunities for actors in other sectors, including alcohol and tobacco companies, to diversify into the cannabis space. This raises obvious concerns, especially given the long history of the tobacco and alcohol industries lobbying against public health regulation. Tobacco and alcohol not only bring enormous financial muscle, but decades of lobbying and PR expertise which can be deployed against regulation geared towards both public health and social equity. From a regulatory perspective, however, these experiences highlight the need to pursue strong and effective licensing policies from the outset. Allowing established players to entrench and corner these markets, especially ahead of full legalisation, risks negating social equity measures later on.

In France, for example, a market battle was sparked in early 2020 between Canadian companies and French producers ahead of a French trial of medical cannabis. In 2019, Aurora Cannabis bought facilities in the Netherlands following news that the Dutch government was potentially expanding scope for medical cannabis beyond the Dutch monopoly-holder Bedrocan . The emergence of the Canadian cannabis non-medical market in 2018 contributed to the so-called ‘green rush’ among stock market investors, with huge investment pouring eco sober house complaints into what was seen as a potentially profitable new commodity. Following legal regulation, a number of federally-licensed producers benefited from large investments. Heavy early investment was scaled back once the market picture became clearer, however, and stock prices dropped dramatically in the second half of 2019. The value of Canopy Growth and Cronos Group, two of the largest producers, more than halved between April and November 2019, while Aurora Cannabis dropped by around three quarters in the same period.

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