Cannabis Professional’s daily roundup of industry news. View archive here.
Tilray and AB Inbev say their CBD infused drinks should be on store shelves before the end of the year, but THC drinks will come later; The Quebec government said it will appeal a recent decision that allowed home growing in the provinces; Panama is debating legalization of medical marijuana; and Echelon has initiated analyst coverage of retailer Fire & Flower.
– Rob Gilroy
Tilray, AB InBev to launch CBD drinks in late 2019
A joint venture between B.C. cannabis company Tilray Inc. and the world’s largest brewer Anheuser-Busch InBev plans to have CBD-infused drinks on the Canadian market as early as December, but says it needs more time to research beverages containing THC. Fluent Beverage Company’s chief executive Jorn Socquet said that through the two companies’ previously-announced research partnership, it has determined how to formulate beverages containing cannabidiol, the non-intoxicating compound also known as CBD, in a way that keeps the active ingredients stable and potent over the lifecycle of the product.
Tetrahydrocannabinol, the cannabis compound which produces a high and is known as THC, has proven much more unstable, he added. Socquet said he didn’t have a timeline for when he expects Fluent’s THC beverages to be ready. “We’re not going to rush it, because again, we want to always deliver a safe experience for our consumers,” he said. “Obviously, we are aiming to be in market as soon as possible.”
Socquet said Fluent, a joint venture between AB InBev’s Labatt subsidiary and Tilray’s recreational cannabis subsidiary High Park Company, is preparing to launch its portfolio of CBD-infused products in Canada in December, but it will depend on the various provincial and territorial bodies governing cannabis retail and distribution. Fluent hasn’t produced any product yet, but it is currently commissioning the machines needed and expects to start commercial production in the coming weeks, said Socquet.
– Canadian Press
Quebec will appeal court ruling on home growing
The Quebec government is appealing a court decision last month that invalidated the parts of the province’s cannabis law that prohibit home cultivation. Premier Francois Legault told reporters Thursday his government “will go right to the limit in the courts to do what we think is good for Quebecers.” On Sept. 3, Quebec Superior Court Justice Manon Lavoie ruled Quebec’s legislation infringed upon the jurisdiction of the federal government, which has sole responsibility for legislating on criminal matters. The judge ruled unconstitutional the sections of the Quebec Cannabis Regulation Act prohibiting the possession and cultivation of cannabis plants for personal purposes. Federal law allows Canadian citizens to grow up to four cannabis plants at home, but Quebec chose in June 2018 to legislate against home cultivation. Lionel Carmant, Quebec’s junior health minister, said the province supports a public health approach and wants to avoid trivializing the use of cannabis.
- Canadian Press
Panama debates legalizing medicinal marijuana
Lawmakers in Panama have taken up an initiative that seeks to legalize marijuana for medicinal purposes. Debate over the issue began two years ago. The previous legislature gave it initial approval but decided to subject it to broader study. Marijuana is the second most commonly consumed narcotic in Panama, after cocaine. Its sale and possession are both illegal. The congressional Commission on Work, Health and Social Development took up the measure Wednesday night. It would have to pass through further debates, consultations and votes, and then be signed by President Laurentino Cortizo. If it passes, Panama would be the first country in Central America to legalize medicinal marijuana. Costa Rica has also held debate on the issue.
- Associated Press
Echelon initiates Fire and Flower coverage at ‘speculative buy’
Echelon Wealth Partners said it initiated coverage of Fire and Flower Holdings Corp. at “speculative buy” with a 12-month target price at $2, as the Edmonton-based pot company was viewed as the best-positioned business to become the leading cannabis retailer in Canada.
Fire and Flower “represents the most investment-worthy opportunity within the cannabis retail vertical in Canada,” Echelon said in a note, pointing to the retailer’s well-capitalized balance sheet, 28 licensed stores, Hifyre digital platform and direct investment from Alimentation Couche-Tard.
Echelon viewed Fire and Flower’s strong balance sheet as placing the retailer in an advantageous position relative to peers, while the timing and extent of Ontario licensing remains the most significant variable in the company’s ramp-up timeline.
- Marcy Nicholson