Money Are Canadian Cannabis Companies Growing Responsibly?

07:25  07 january  2018
07:25  07 january  2018 Source:   fool.com

Canadian cannabis producers set their sights on global domination

  Canadian cannabis producers set their sights on global domination The Czech Republic has joined Germany, Australia, New Zealand and a growing list of other nations which are turning to Canada as a safe and legal source for medical grade cannabis. In recent months, more than a dozen countries have legalized medical marijuana. New laws are pending in at least a dozen more as national regulators and even the World Health Organization recognize legitimate medical uses for a drug which had long been banned under international treaties.The moves have sparked an unprecedented demand for legally grown, high quality marijuana, as well as the oil which is extracted from it.

With the Canadian cannabis industry currently in overdrive, questions as to how marijuana producers will be able to meet demand quotas while meeting the ethical and regulatory burdens placed on the companies by investors and the government alike remain.

Growing cannabis at home in Canada . They wanted to ban things such as hats and t-shirts carrying logos of cannabis companies Independent Senator Andre Pratte is angry at the government. Also, Canadian businesses have openly been selling cannabis against the law.

a close up of a plant© Provided by Fool

The idea of “responsible growth” is one which underpins the long-term thinking of many investors and executives in mature companies; at a certain point, growing too quickly (either by acquisition or organically) has the potential to invite more long-term problems than near-term benefits for any organization, negating what may otherwise be amazing returns over a short period of time.

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Aurora signs deal for European joint venture

  Aurora signs deal for European joint venture EDMONTON - Aurora Cannabis Inc. has signed a deal to form a joint venture with European greenhouse vegetable company Alfred Pedersen & Son (APS). Under the deal, Aurora (TSX:ACB) will own a 51 per cent interest in Aurora Nordic Cannabis A/S, based in Odense, Denmark. APS received its license to grow cannabis from Denmark's Medicines Agency effective Jan. 1. The joint venture will focus on the cultivation and sales of cannabis in Denmark, Sweden, Norway, Finland and Iceland.Aurora Nordic plans to build a 93,000-square-metre automated cannabis production facility.

We don't know, but it's easy to imagine some Canadians will want to try their hands at cannabis agriculture once it's legal. Data on legal home growing in the U.S. remains scarce. Keep in mind: Canadians may be less enthusiastic about growing marijuana at home if the regulations turn out to

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With the Canadian cannabis industry currently in overdrive, questions as to how marijuana producers will be able to meet demand quotas while meeting the ethical and regulatory burdens placed on the companies by investors and the government alike remain. With Canada’s oligarchy of cannabis producers continuing to consolidate the marijuana production industry, while simultaneously working toward delivering what is expected to be a massive amount of legalized recreational marijuana (a questionable claim, but one which is present nonetheless) by this summer, concerns about how these companies are setting out to achieve their goals have arisen.

Marijuana will be sold in Saskatchewan by private retailers, government announces

  Marijuana will be sold in Saskatchewan by private retailers, government announces Marijuana will be sold in Saskatchewan by private retailers, government announcesSaskatchewan will allow cannabis to be sold by private retailers.

Canadian Cannabis LP Tier 3 Index. Ranking. Featured. Thus far, only a few companies are offering formats in the softgel or capsule form, and it is probable that Health Canada will allow other formats, such as cartridges for vaporization or pre-loaded pens, in the near future.

The Supreme Cannabis Company ’s (TSXV: FIRE) (OTC: SPRWF) first investment and now wholly owned operating subsidiary in the cannabis sector is the Canadian licensed producer 7ACRES, one of the first 40 federally legal licensed producers in Canada .

In August, I wrote about a recall of approximately $1 million worth of cannabis from Canopy Growth Corp.’s (TSX:WEED) subsidiary Mettrum Ltd.; with numerous other recalls issued for Canadian cannabis producers in 2017, I asked the question, “Just how well are Canada’s cannabis suppliers currently regulated?”

As with any other industry in its infancy, the answer may be fuzzy; this past week, however, Health Canada announced it would be fining Canadian cannabis producers $1 million per violation for using banned pesticides — a hefty fine, but one which has invited discussion on the cost-benefit analysis of using banned pesticides and achieving sky-high yields, or reaping the cost of lower yields without pesticides.

The impetus for investors to consider the means by which companies achieve sky-high growth rates can be anything from an ethical curiosity to a long-term fundamental investment mandate. Personally, I don’t invest in companies without a track record of at least five years — in my opinion, investing in publicly traded securities that have shorter track records is equivalent to penny-stock investing.

Politicians bungle everything — legal pot will be no different: DiManno

  Politicians bungle everything — legal pot will be no different: DiManno Politicians bungle everything — legal pot will be no different: DiMannoI happened to spend three days over New Year’s in Las Vegas.

The question for investors is which cannabis companies will have the first shot at being Big Cannabis ? Canopy is the current Canadian leader with 568,000 square feet of growing space, and with that it can produce about 40,000kg of cannabis annually.

There are several other Canadian companies that are pursuing business in California, Nevada and Washington as well. While the U.S. cannabis industry is growing rapidly, the opportunities for the public to invest remain extremely limited relative to the options to invest in Canada .

The fact that so many cannabis firms are present on Canada’s Toronto Stock Exchange has boggled the minds of many in the investment community; the Canadian Venture Exchange has traditionally been the avenue that most venture-stage companies have picked to raise money. The argument that companies such as Canopy Growth Corp., Aphria Inc. (TSX:APH), Aurora Cannabis Inc. (TSX:ACB), or MedReLeaf Corp. (TSX:LEAF) are anything other than venture companies is a view which, in my opinion, can be very dangerous.

As with other venture companies, raising money comes with a whole different set of risks than with mature firms in industries with an established regulatory backdrop, measurable revenue, and earnings numbers, and an agreed upon market size and supply/demand fundamentals.

To the risk takers go the spoils in venture markets during a steady bull market run. I just sure hope the market doesn’t turn sour for investors who got into the cannabis industry at its peak.

Stay Foolish, my friends.

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Will Canadian Cannabis Stocks Shrug Off the U.S. Move Against Legal Pot?

  Will Canadian Cannabis Stocks Shrug Off the U.S. Move Against Legal Pot? Aurora Cannabis Inc. (TSX:ACB), Aphria Inc. (TSX:APH), and other cannabis stocks were rattled after a hostile move against the industry from the U.S. Department of Justice.9TX

Image caption Flowering cannabis grows at a medical supply greenhouse in Ontario. "We've been told by those who've gone before to expect surprises," she said. Stocks of Canadian marijuana companies surged in anticipation of the report. Image copyright Getty Images.

Follow our blog for helpful information about the cannabis growing industry. American Cannabis Company , Inc. Secures New Online Distribution Channels with Walmart, The Home Depot and Amazon for SoHum Living Soils® and Dr. Marijane Root Probiotic.

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Fool contributor Chris MacDonald has no position in any stocks mentioned in this article.

Aphria buying Broken Coast Cannabis .
LEAMINGTON, Ont. - Licensed marijuana producer Aphria Inc. has signed a deal to buy Broken Coast Cannabis Inc., a cannabis producer on Vancouver Island, in a transaction it valued at $230 million in cash and stock. Under the agreement, Aphria (TSX:APH) will pay up to $10 million in cash with the remainder in shares based on a deemed price of $15.09 per share. Each of the three co-founders of Broken Coast are expected to remain with the company. 0000

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