Topic: Cannabis Investing

Cannabis in the news September 12, 2018

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With legalization just about a month away, the flood of articles and opinions on marijuana continues to swell—and each week we select the five articles that have the most to say to investors.

1. Cannabis producer Aphria Inc. will now exit the U.S. after an agreement to sell the last of its assets in the country.

The Ontario-based company has struck a deal to sell its remaining 64.1 million shares in Liberty Health for $59.1 million.

Aphria says it will re-enter the U.S. market only when federal laws change to legalize cannabis use. Its aim is to then become a major supplier for that market. A growing number of U.S. states have already moved to give their residents access to cannabis for medical and, increasingly, recreational use.

The company will retains the option to repurchase the Liberty Health shares for up to five years.

2. Makers of the only screening device approved by the federal government to test for impaired driving due to cannabis argue the device is highly accurate.

Dräger Safety Canada makes the DrugTest 5000 device; company officials now cite data suggesting its tests are more than 95% accurate.

Critics of the device have called into question that accuracy by pointing to research on its use in frigid cold temperatures.

Late last month, Justice Minister Jody Wilson-Raybould approved the Drager DrugTest 5000 as the first saliva-screening equipment for use by Canadian law enforcement agencies. The system tests for evidence of THC, the main psychoactive agent in cannabis.

3. The head of a Toronto startup says his company has developed beer made from cannabis, and not just infused with its oil.

Alcoholic-beverage giants, such as Constellation Brands and Molson Coors, have already formed partnerships with cannabis producers to develop marijuana-infused beverages.

Like those industry leaders, Province Brands Canada aims to bring its beer, brewed from marijuana, to the Canadian market as soon as the federal government permits “edibles.” That could come less than a year after recreational use of marijuana comes into force on Oct. 17, 2018.

A new report from Deloitte suggests Canada’s recreational and medical cannabis market will generate more than $5 billion in 2019. That’s even without edibles.

4. The Canadian government will let most service members use recreational cannabis, although some restrictions apply on when and where.

Under a new policy introduced early this month, members of the Canadian Armed Forces will be blocked from using recreational cannabis within eight hours of a duty shift. That restriction extends to 24 hours if the shift work includes operating weapons or vehicles.

Service members will be allowed to use cannabis off the job, but not when deployed outside the country.

The military’s chief of personnel has already shared details about the new policy with U.S. and British armed forces as well as other key allies.

5. A new study suggests baby boomers are increasingly turning to cannabis use, in part to ease pain.

The research, published this month in the journal Drug and Alcohol Dependence, suggests about 9% of U.S. adults between 50 and 64 used cannabis at some point in 2015 and 2016.  That’s up from similar research pointing to 7% of baby boomers using pot in 2013.

The gains likely reflect the legalization of cannabis in key U.S. states, including Colorado and Oregon. In addition, the growing number of baby boomers facing chronic pain as they age likely played a role.

Researchers at the University of California now aim to map marijuana’s effects on pain. Their goal is to study patients who are now on opioid painkillers such as oxycodone.

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