CANNABIS SENDING KIDS TO HOSPITAL MORE THAN BOOZE

study by the Canadian Institute for Health Information found of the 23,500 Canadians aged 10 to 24 hospitalized due to substance use in 2017-2018, alcohol caused 16% of ER trips, while cannabis caused 40%.
CBC Health, CBC Ottawa

  • Among those older than 25, cannabis is associated with only 11% of substance-use-related ER visits, while alcohol is associated with 58% of such visits.
  • A majority (69%) of all substance-use-related hospitalizations required mental health care. Among cannabis-related hospitalizations, 81% involved mental health care, compared with 49% of those with opioid-related hospitalizations.
  • Alberta youths were hospitalized for reasons related to substance use more than those of other provincesCBC Calgary

Quick Hits

  1. Quebec’s CAQ government will not require renters to show landlords their MED prescriptions to prove they use cannabis for medical reasons, leaving it up to provincial housing authorities to decide on whether renters involved in a dispute with landlords need to prove their medical need.
    Ici Radio-Canada—In French
  2. Canopy‘s Ontario hometown of Smiths Falls hopes to reframe itself as Canada’s REC tourism destination, except no one in the town of 9,000 can legally sell you any weed.
    Leafly

PLANT THEFT GETS SERIOUS

It may be legal in much of Canada to grow four cannabis plants, but that takes months. As growers across Canada are learning, stealing them is a lot faster.
Global News

In Oshawa, a resident confronted two men stealing his plants at 3:45am, only to have them stab him. He was hospitalized with non-life-threatening injuries.
Toronto Sun

  • Growing outdoors in a residential neighbourhood has other risks: Canadians for Fair Access to Medical Marijuana’s Dan Goulet reported his plants were pollinated by neighbours who didn’t recognize male plants. Goulet said, “Growing outdoor in Canadian suburbs in 2009 seems to be yielding similar results as growing outdoor in Canadian suburbs in 1975.”
    Twitter

Quick Hits

  1. Cannabis aquaponics (growing in water used in fish farming) is still in early days—after only two LPs have received aquaponics licenses, Habitat Craft Cannabis became Canada’s first craft aquaponics licensee.
    NewsWire
  2. Hemp growers in PEI are asking Ottawa to be allowed to grow high-CBD hemp plants, which they say would make them competitive with US counterparts.
    CBC PEI

GREEN PARTY CANNABIS PLATFORM RIDDLED WITH ERRORS

The Liberals could be campaigning on the success of legalization, but in keeping with Bruce Linton’s prediction that Conservatives and Liberals would avoid the subject of cannabis this election, we haven’t heard much from either leading party.

This week, however, the Green Party released its complete 88-page platform, including a section on cannabis full of errors.
The Conversation, the Leaf, Global News

  • The platform promises to lower the non-existent “federally set price for cannabis,” to eliminate non-existent “requirements for excess plastic packaging,” and to “allow outdoor production” (licensed outdoor LP growing began in June and more than a dozen LPs are now licensed to grow outdoors).
    CTV News
  • A Green government would also “impose organic production standards,” a move BC Independent Cannabis Association President Courtland Sandover-Sly said “would devastate the industry.”
    Twitter

The platform has some common-sense cannabis planks, like removing the excise tax on MED, pulling CBD off the Prescriptions List and allowing its sale as a Natural Health Product, and loosening onerous security requirements.

Quick Hits

  1. CBD LP Eureka 93‘s entire leadership team resigned following an Ontario Securities Commission cease-trade order on the company’s stock early this month. In good news, the company just got a new greenhouse license.
    Globe and Mail
  2. The Toronto Stock Exchange debuted the TSX30, recognizing the 30 best-performing stocks over a three-year period. Canopy came in first, and there are four cannabis companies in the top 10.
    TMX

VAPE ILLNESS THREATENS BURGEONING CANADIAN MARKET

In the US, Cowen & Co estimated vaping represents 24% of the REC market, and many expected vape pens would be the first REC 2.0 product to explode in popularity. After a summer of stock market losses, the industry was looking forward to new products to buck them up. For them, the U.S. vape crisis couldn’t have been more poorly timed.

Quick Hits

  1. The Canadian Centre for Substance Use and Addiction launched its searchable Canadian Cannabis Research Database, charting cannabis research under 40 topic headings.
  2. Aphria launched a program for parents to discuss cannabis use with their children. They partnered with Drug Free Kids Canada, an organization with which Health Canada severed ties in November after learning it was founded by a donation from opioid company Purdue Pharma.
    Winsor Star, Hill Times

RETAIL CHECKUP

The Globe interviewed CEOs from four major REC retailers. They reported consumers have “zero brand recognition” and are looking mostly for high-THC flower and convenient prerolls.

It’s a good time to be an Alberta REC retailer, especially after last week’s report that Calgary now has more REC stores than BC, Ontario, and Quebec combined. For everyone else, it’s more of a challenge.
Cannabis Retailer, MJ Bi

Vancouver Business Brokers, who broker commercial real estate, listed two REC stores on BC’s real-estate Multiple Listings Service, though it is unclear whether the sites are licensed.
Times-Colonist

Cannabis NB is set to pay its board members $50,000 for their servicetwice as much as board members receive for sitting on the board of provincial wine and spirits regulator NB Liquor.
Ici Radio Canada—In French, GrowthOp

The supply shortage may be over, but many provincial REC websites are having difficulty keeping their products fully stocked.
Maclean’s

Regina Police raided four unlicensed dispensaries, charging six. In the process, they also raided a cannabis-education business with a sign on its door noting there was no cannabis inside. Owner Kelly Csada was fined $250 for possessing an illicit MED edible, despite informing police she has a prescription. She believes she has the right under the Supreme Court decision R v Smith 2015, which guaranteed access to non-dried forms of edibles. Expect a lawsuit.
Regina Leader-Post, Global News, CBC Saskatchewan, CTV News

ONTARIO MAY END GOV’T WHOLESALE, DISMISSES DISQUALIFIED REC RETAILERS

Ontario may end its government monopoly on cannabis wholesale and join Saskatchewan in allowing LPs to sell to retailers without an intermediary.

  • The Ontario Cannabis Retail Corporation owns crown online REC retailer the Ontario Cannabis Store and funnels all REC through its provincial wholesale warehouse.
  • The motivation for the change is the threat that after legalization 2.0, there will be so many new products the provincial warehouse will not have space to stock them.
  • Lawyer Trina Fraser praised the idea, saying, “There is no reason for a provincial distributor. The integrity of the supply chain can be maintained without product sitting on the shelf of a warehouse in Oakville for god knows how long.”

A panel of judges dismissed a claim by 11 disqualified Ontario REC retail lottery winners, also ending a freeze on licence processing.
Bloomberg

The Cannabis Council of Canada pressured the Ontario government to fast-track opening more REC retailers, arguing supply is now strong enough to support the whole market.
Press Release

SECTOR ANALYSTS UNEASY

CIBS analyst John Zamparo published a client note calling consensus estimates from other analysts “unachievable.” He believes the next year of REC sales will be lucky to hit $2.2B instead of the $6.5B in consensus revue estimates.
Bloomberg

Market research group the Cannalysts argued legal cannabis (including MED) was “falling woefully short” of ousting the illicit market, with legal REC meeting only 14% of June’s total demand by volume.
MJ Biz Daily

Retail revenues are so slow that a Mackie analyst suggested firms with less than six months’ worth of cash on hand should start thinking expansion.
MJ Biz Daily

REC RETAIL SALES CRACK $100M/MONTH

Statistics Canada revealed Canadians bought $100M in legal REC in July, the most they’ve spent to date—up 14.3% from June’s $91M in revenues. (And exceeding October and November 2018 sales combined.)

  • Canadians have spent $686.4M on legal REC since legalization.
    Twitter—David George-Cosh
  • July’s sales jumped the most in BC (34.1%) and Northwest Territories (23.5%), while sales remained closer to stable in the Yukon (1.4%), Saskatchewan (1.7%), and Nova Scotia (5.3%).
    Twitter—David George-Cosh
  • Though BC’s sales increased, they remained the lowest per capita of any province, due not only to a slow REC retail rollout, but also to the province’s longstanding legacy market.
    Globe and Mail

Cannabis sales are growing, but they’re nowhere near other common goods. Over the Q1 2019 period, retailers sold $167M in legal REC while alcohol sellers sold $5.6B worth of booze. Yard and gardening equipment: $247M in the same period; while cut-flowers and houseplants: $330M; costume jewelry $171M.
GrowthOp

 

AURORA MISSES OWN ADJUSTED GUIDANCE

Earlier this year, Aurora predicted it would be profitable by EBITDA standards within the year. Last month, the company adjusted their statement to say they were “on track” to profitability. This week, posting a $11.7M EBIDTA lossAurora said, “The Company expects adjusted EBITDA to continue to improve.”
MarketWatch, Twitter

CEO Terry Booth said the company is “laser focused” on the US CBD market.
MJ Biz Daily

Quick Hits

  1. 48North co-CEO Jeannette VanderMarel, who also co-founded the Green Organic Dutchmanstepped down from her position for personal reasons, and will stay on as a board director.
    Globe and Mail
  2. Both Aurora and Canopy Growth have developed secret formulas to predict when the US will either legalize REC or allow states to legalize.
    MarketWatch

MED ACTIVISM RAMPS UP

Ahead of the election, MED advocates are pushing to make MED access a point of discussion.
Twitter—Kate Robertson

Quick Hits

  1. The Canadian Medical Association called for Ottawa to lower the maximum 10mg THC to 5mg per discrete edible or package of edibles.
    Calgary Herald
  2. You too can get a microcultivation license for “comfortably under $15k” (providing you already own a property on which there’s a suitable standalone building).
    Reddit