In this edition of "Rising High," the Israeli cabinet approved medical cannabis as a Canadian official said marijuana edibles may not be available for sale as soon as they’re legalized.
ISRAEL APPROVES MEDICAL MARIJUANA EXPORTS: The Israeli cabinet approved medical cannabis exports in a move expected to result in increased investment in agriculture, research, production as well as creation of new jobs, Bloomberg reported Sunday. Officials have estimated that exports could bring in as much as $273M a year in tax revenue. “The medical-cannabis revolution gets underway,” Finance Minister Moshe Kahlon said, adding the move “will bring hundreds of millions to the nation’s coffers and will strengthen Israeli agriculture and technology.”
CANADIAN EDIBLE SALES MAY MISS GOVERNMENT TARGET: Justin Trudeau’s pot czar Bill Blair said marijuana edibles may not be available for sale as soon as Canada legalizes them as provinces will need time to ready for sales, Bloomberg reported Wednesday. The government previously said edibles and other products will be “permitted for legal sale” no later than October 17, but Blair said the federal regulations due on the date are not the final step. “It’s a complex area with a greater risk, because of the way in which it’s consumed,” Blair said. “We said we’re going to take the time to do it right.” Once regulations are established, the government will work with provinces “to determine an appropriate process of implementation, and I don’t have the dates for that,” he said. “Those are conversations that I think we’ll begin more appropriately as we get further along in the development of the regulatory framework that’ll control edibles.”
GGB TO ENTER ARIZONA MEDICAL MARKET: On Thursday, Green Growth Brands announced an arm’s length definitive agreement to acquire control of ZLJT LLC & Arizona Natural Pain Solutions, collectively known as Desert Rose. Desert Rose holds a license for a vertically-integrated operation in Arizona, including retail, cultivation and infusion. As consideration for the membership interests, GGB will pay an aggregate purchase price of $12.35M in cash. In addition, GGB announced Tuesday that it had hired Brian Logan as its new chief financial officer. Logan most recently served as Group VP, Finance at Abercrombie & Fitch (ANF).
GREEN THUMB INITIATED AT BENCHMARK: On Thursday, Benchmark analyst Mike Hickey started Green Thumb Industries (GTBIF) with a Buy rating and $16 price target. The analyst believes the company is an opportunity to "get involved in the ground floor of the emerging U.S. cannabis market." Green Thumb has an early mover advantage in the "rapidly developing" adult and medical cannabis markets in the U.S., Hickey said, adding he thinks the company has an opportunity to establish national consumer brands across several product categories that use cannabis as an active ingredient.
CANOPY GROWTH PRICE TARGET RAISED: On Friday, Piper Jaffray analyst Michael Lavery raised his price target for Canopy Growth Corporation (CGC) to $60 from $40 and kept an Overweight rating on the shares. Lavery continues to estimate a $250B-$500B potential long-term global cannabis market, with a $15B-$50B near-term opportunity. Canopy is well positioned in the growing cannabis market, which is transitioning from illicit trade to legal sales, Lavery said. He considers Canopy's recent approval of a New York hemp license to be a "tangible first step forward" in the U.S. that points to the beginning of a "long" U.S. growth trajectory.
OTHER CANNABIS STOCKS: Other publicly traded companies in the space include Aurora Cannabis (ACB), Aphria (APHA), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Cronos Group (CRON), General Cannabis (CANN), Tilray (TLRY), Innovative Industrial Properties (IIPR), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), KushCo (KSHB), MedMen Enterprises (MMNFF), Elixinol Global (ELLXF), Planet 13 Holdings (PLNHF). Wayland Group (MRRCF) and The Green Organic Dutchman (TGODF).
“Rising High" is The Fly's recurring series focused on cannabis stock news.
