Cannabis stocks slightly lower last week after the prior week’s strong gains, but the industry appears to be rapidly approaching a regulatory tipping point.
Just over a year after Colorado and Washington legalized adult-use marijuana, more than a half dozen other states are considering decriminalizing the drug or legalizing it for medical or recreational use, including conservative states in the south. Federal regulators have also softened their stance on the drug by discouraging crackdowns in states where cannabis is legalized and encouraging bank access. Finally, concerns about the implications of legalized marijuana have been largely addressed by Colorado’s successful efforts in pioneering cannabis regulation and enforcement.
Several cannabis companies also surpassed key milestones last week. mCig Inc. (OTCBB: MCIG) provided an update on its proposed spin off of VitaCig Inc. as a part of its plan to qualify for an up-listing on the NASDAQ; IMD Companies Inc. (OTCBB: ICBU) and Anything Technologies Media Inc. (OTCBB: EXMT) announced that their joint venture selling marijuana growing equipment and vaporizers launched successfully; and, Abattis Bioceuticals Inc. (OTCBB: ATTBF) signed a letter of intent to acquire organic and hydroponic fertilizer formulas to complement its existing operations.
- Could Canada Experience a Cannabis Shortage? – Canada’s new MMPR deadline is rapidly approaching and only five producers are licensed to grow and sell cannabis to an estimated 38,000 patients consuming 190,000 kilograms, while new laws will forbid these patients from growing their own cannabis.
- Abattis Signs LOI to Acquire Fertilizer Formulas – Abattis Bioceuticals Corp. (OTCBB: ATTBF) signed an LOI to acquire organic and hydroponic fertilizer formulas that are well known by many expert cultivators in order to build out a low-cost nutrient line to complement its existing operations.
- Vaporizers Could Become the “Google of Cannabis” – CNBC’s “Marijuana in America” explored the role that vaporizers are playing in the cannabis industry just as they began taking off in the tobacco industry. Companies like Vape Holdings Inc. (OTCBB: VAPE) could be poised to capitalize on the trends.
- Enertopia Signs Agreement with MMPR Joint Venture – Enertopia signed an acquisition and joint venture agreement with a company applying to become a licensed grower under Canada’s MMPR. Under the agreement, it acquired a 49% stake and has an option to acquire up to a 75% stake in the venture.
- U.S. vs. Canada: Where Are the Best Cannabis Investments? – The U.S. and Canada have both been on the forefront of cannabis policy changes over the past couple years, but the two countries differ greatly in their approach to the market, particularly with regards to federal laws.
What to Watch This Week
The cannabis sector moved lower last week as traders took some profits off the table after the prior week’s strong gains. As more states like Oregon and Alaska push for cannabis legalization, traders should watch for the space to continue its rise higher. Meanwhile, eyes will remain on Canada’s MMPR decisions that could affect multiple public companies attempting to become licensed producers of cannabis.
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