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Money Aurora Cannabis Inc. (TSX:ACB) Beats Canopy Growth Corp. (TSX:WEED) in Alberta

21:51  09 july  2018
21:51  09 july  2018 Source:   fool.com

Organic farmer wins best pitch for $1 million cannabis investment

  Organic farmer wins best pitch for $1 million cannabis investment An organic farmer has cleared the first hurdle in receiving $1 million to build a greenhouse to grow organic cannabis in southern Ontario. Mike Matthews, a farmer and founder of Bella Vista Cannabis, said if everything works out, the money would be used to build a 465 sq. m (5,000 sq. ft) greenhouse to grow […]An organic farmer has cleared the first hurdle in receiving $1 million to build a greenhouse to grow organic cannabis in southern Ontario.

Canopy Growth was among the first to update the market about the new deal in a press release on July 5, revealing that the cannabis giant has been allowed to supply 15,000 kg of cannabis to Alberta in the first six months of recreational sales and claiming that the agreement was “the largest of its kind

Which marijuana play between Aurora Cannabis Inc . ( TSX : ACB ) and Canopy Growth Corp . ( TSX : WEED )(NYSE:CGC) is leading in the battle for medical cannabis market share in the fast-growing Germany market?

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Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) and Aurora Cannabis Inc.(TSX:ACB) are among the 13 cannabis licensed producers selected by the Alberta Gaming, Liquor, and Cannabis Commission (AGLC) as preferred suppliers of recreational marijuana to the province of Alberta out of a total of 31 interested applicants.

Canopy Growth was among the first to update the market about the new deal in a press release on July 5, revealing that the cannabis giant has been allowed to supply 15,000 kg of cannabis to Alberta in the first six months of recreational sales and claiming that the agreement was “the largest of its kind in Canada.”

Canopy Growth posts quarterly loss as era of legal marijuana nears

  Canopy Growth posts quarterly loss as era of legal marijuana nears Canopy Growth Corp. reported a fourth-quarter loss of $61.5 million as it prepared for the launch of the legal Canadian recreational cannabis market later this year. The loss amounted to 31 cents per share for the quarter ended March 31 compared with a loss of $12 million or eight cents per share a year ago. Revenue totalled $22.8 million, up from $14.7 million in the same quarter last year. During the quarter, the company sold 2,528 kilograms and kilogram equivalents at an average sales price of $8.43 per gram. That compared with 1,740 kilograms and kilogram equivalents at an average price of $8.

The Leverage Ratio of Aurora Cannabis Inc . ( TSX : ACB ) is 0.223898. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Located in Smith Falls, Ontario, LP Canopy Growth Corp . operates out of the former Hersheys chocolate factory, but

WEED .TO - Canopy Growth Corporation . Toronto - Toronto Delayed Price. Currency in CAD. Canopy Growth (CGC) ( WEED ) is one of the top cannabis stocks (MJ) in terms of market capitalization followed by Aurora Cannabis ( ACB ) (ACBFF) and Aphria (APHQF).

That was indeed very true … but for a limited time. Its close competoitor announced a 67%-bigger deal just eight minutes later.

Aurora announced a similar agreement with the AGLC to supply cannabis products for the adult consumer use market in the province, and the aggressively growing marijuana firm “will initially allocate up to 25,000 kg of product” for the first six months of sales to the Alberta market.

Effectively, Aurora may be able to supply up to 50,000 kg of cannabis products to Alberta in the first 12 months of recreational marijuana sales, and that’s a significantly bigger deal than the 30,000 kg that Canopy contracted for with the AGLC.

Why did Aurora get more?

Irrespective of the fact that Canopy has the highest productive capacity for cannabis cultivation right now, the AGLC, which is responsible for regulating private retail cannabis licensing, distribution of cannabis to retail stores, and operation of the online cannabis store, is very much inclined to support local Alberta-based growers.

Ottawa isn't putting a cap on the potency of many cannabis products

  Ottawa isn't putting a cap on the potency of many cannabis products Health Canada has released new regulations around what legal marijuana will look like this fall, but there's no clear threshold for THC, the active component in cannabis, potency.As of Oct. 17, Canadians will be permitted to legally buy fresh or dried cannabis, cannabis oil, plants and seeds, and to possess up to 30 grams of dried cannabis or its equivalent in public.

Aurora Cannabis Inc . ( TSX : ACB ) and Canopy Growth Corp . ( TSX : WEED ) are two of the best-positioned pot stocks to own as legalization day approaches. Which offers investors with the greater long-term upside?

Canopy Growth Corp . ( TSX : WEED )(NYSE:CGC) and Aurora Cannabis Inc . ( TSX : ACB ) won't be able to use branding or promotions soon. If that happens, how will each firm differentiate themselves from the pack?

In fact, the AGLC’s announcement on the supply deals explained that the provincial body “will continue to engage additional LPs as they become federally licensed, specifically Alberta-based producers.”

On one hand, Aurora is based in Alberta and has three grow facilities in the province, including the 800,000-square-foot Aurora Sky at Edmonton airport, which is almost complete, and a larger Aurora Sun, which is under construction. On the other hand, Canopy is based in Ontario but has a planned 100,000-square-foot facility in Edmonton that is under construction and shall be operated under a 20-year lease from the Goldman Group.

It appears that one is more invested in Alberta than the other, and the former was more than a favourite to win the lion’s share in the province.

Other successful competitors

Aphria Inc. (TSX:APH) was a contender in Alberta too, and it managed to get a small quota of 870 kg and did not divulge whether this is per annum or over six months. MedReleaf Corp.(TSX:LEAF) got something too, but no numbers were revealed in its press release. However small the MedReleaf quota will be, it’s all good news for Aurora, its soon-to-be parent company.

Are marijuana stocks expanding too quickly?

  Are marijuana stocks expanding too quickly? Canopy Growth Corp (TSX:WEED)(NYSE:CGC) and Aphria Inc (TSX:APH) have their sights set on a new part of the world.Load Error

Canopy Growth Corp (TSE: WEED ) (NYSE:CGC) (FRA:11L1) CEO Bruce Linton talks about Aurora Cannabis Inc ( TSX : ACB ) (OTCQB:ACBFF) (FRA:21P) ‘s acquisition

Does Canopy Growth Corp ( TSX : WEED )(NYSE:CGC) have a clear lead in the battle for provincial In its recent quarterly financial results earnings release on August 14, Canopy Growth ( TSX : WEED ) Worse still, MedReleaf did not disclose deal volumes in two provinces, namely the Alberta and British

The only other selected supplier to reveal deal numbers was Maricann Holdings Inc.(TSXV:MARI), which will be able to supply 3,375 kg equivalents of recreational cannabis products to Alberta in the first six months of sales.

The other successful applicants were ABCann Global, The Supreme Cannabis Co. (7 Acres), Newstrike Resources Inc.(UP Cannabis), Organigram, WeedMD, CannTrust Holdings Inc.Emblem Corp., and Starseed Medicinal Inc.

Investor takeaway

As previously discussed, the strength of a cannabis player’s supply contracts and the depth and reliance in its distribution channels will play a crucial role in generating required revenue and profitability growth necessary to defend current high valuation multiples.

Productive capacity alone may not guarantee success in the budding industry, while everyone else is scaling up their productive facilities in anticipation of the great sales boom after recreational sales begin on October 17 this year.

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Health Canada 'concerned' by pot sponsorship

  Health Canada 'concerned' by pot sponsorship Health Canada said Friday it's prepared to crack down on licensed medical marijuana producers who are sponsoring music festivals and other events. The federal department said it's "concerned" about some companies that have engaged in corporate sponsorships and other promotional activities that go against the Cannabis Act.

Aurora Cannabis Inc . ( TSX : ACB ) is a "safer" bet with more upside than many of today's hottest pot stocks . Here's why.

Canopy Growth (CGC) ( WEED ) is one of the top cannabis stocks (MJ) in terms of market capitalization followed by Aurora Cannabis ( ACB ) (ACBFF) and Aphria Which marijuana play between Aurora Cannabis Inc . ( TSX : ACB ) and Canopy Growth Corp . ( TSX : WEED )(NYSE:CGC) is

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Energy, pot stocks pull Toronto market lower .
Canada's main stock index closed in the red as a drop in crude prices pushed energy stocks lower, while U.S. stocks were mixed. The August crude contract fell $2.95 or 4.15 per cent to close at US$68.06 after U.S. officials toned down threats against countries and businesses who buy Iranian oil.Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo said those who import Iranian oil after sanctions return in November could avoid penalties if they reduce those imports significantly, rather than cut off the trade entirely.

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