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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "He and Canopy Growth were far from the only topics discussed in the pot business circles last week.There was a legal problem with best Canadian producers, a huge increase in sales with a manufacturer of packaging and accessories and a historic hearing on the legalization of the pot in Congress. "data-reactid =" 12 "> He and Canopy Growth were far from being the only topics of discussion in the pot business circles last week.There was a legal problem with one of Canada's top producers, a significant increase in sales with a manufacturer of packaging and accessories and a historic hearing on the legalization of the pot at Congress.
Marijuana plants in a marijuana grow room.
Source of the image: Getty Images.
CannTrust non-compliance
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The week in marijuana shares does not not started The Monday before the opening bell, the Canadian producer & nbsp;CannTrust Holdings (NYSE: CTST) admitted to receiving a report of non-compliance from the regulator Health Canada. "data-reactid =" 26 "> The week in marijuana stocks has not started encouraging Monday before the opening bell, Canadian producer CannTrust Holdings (NYSE: CTST) admitted to receiving a report of non-compliance from the regulator Health Canada.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It seems that society is growing around 5,200 kilos of product in five rooms in his Niagara greenhouse which was not licensed at this time (October 2018 to March 2019). All in all, the establishment has 12 culture rooms. CannTrust then voluntarily withheld about 7,500 kilos of other stocks produced in these premises. "Data-reactid =" 27 "> It appears that the company was producing approximately 5,200 kilograms of product in five rooms of its Niagara greenhouse that did not have a license (October 2018 to March 2019), CannTrust has by the voluntarily retained some 7,500 kilos of other stocks grown in these premises.
The management of the company has not fully absorbed the responsibility for the decision. In a press release, the non-compliance report was "based on regulatory authorities' observations regarding the cultivation of cannabis in five unlicensed rooms and on inaccurate information provided to the regulatory authority. by CannTrust employees ". As much for taking a bullet in the head and for keeping staff morale in a controversy.
Although marijuana is now legally recognized in Canada, lawmakers take its regulation very seriously. There is little excuse for not being in full compliance at all times, especially since in the worst case a company could lose its cannabis license if it does not. did not do it.
CannTrust is losing the trust of its investors and it will be difficult to recover. The fall of nearly 50% in the price of its action this week could integrate or even worsen, depending on the evolution of the situation.
Historic hearings of the pot in Congress
We could consider legalization where it matters most – the US Congress. This week, for the first time, the House of Commons Subcommittee on Crime, Terrorism and Homeland Security held hearings on easing federal marijuana laws.
Support appears to be broad and sufficient for the reform of the marijuana law in both houses of Congress, with Democrats and Republicans indicating that they are willing to change. A bill to legalize marijuana, the STATES Act, was introduced in the Senate last year and co-sponsored by Republicans and Democrats. An accompanying bill has been introduced in the House.
Although this is an important first step towards decriminalization if not complete legalization, it faces several obstacles.
The first is the consensus, because the opinions of the Congress differ on the objectives and the best paths towards a relaxation of the federal law. The second is the position of political figures. Majority leader Mitch McConnell seems to resist the legalization of marijuana, while President Donald Trump has at best expressed his support.
In any case, as in the case of recent developments in cannabis, such a hearing would have been inconceivable only a few years ago. The fact that this is taken seriously, debated and even legislated in the form of these bills is an encouraging sign for the marijuana industry that legal ice will soon melt … at least to some extent .
KushCo triples its sales
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "KushCo Holdings (NASDAQOTH: KSHB) generates strong growth in sales. "data-reactid =" 42 ">KushCo Holdings (NASDAQOTH: KSHB) is experiencing strong growth in sales.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The specialist in marijuana supplies and packaging unveiled its results for the third quarter of the 2019 financial year Tuesday. These revealed that, primarily due to organic growth in demand, the quarter's sales figure has tripled from $ 12.9 million in Q3 201 to $ 41.5 million. Gross profit then doubled during this period to reach $ 7.4 million. -reactid = "43"> The Marijuana Supplies and Packaging Specialist unveiled Tuesday its third quarter results of fiscal year 2019. These revealed that, thanks to organic growth in demand, sales had tripled to $ 41.5 million. Q3 2018 of $ 12.9 million. Gross profit margin doubled during this period to reach $ 7.4 million.
Unfortunately, operating losses and net losses have deepened. That said, the shortfall in the third quarter of 2019 was not much more serious, at $ 10.6 million compared to $ 9.2 million in the corresponding quarter of the prior year.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Overall, the results have been encouraging. In the nascent marijuana sector, losses are expected, and KushCo is not afraid enough to discourage investors, and the company is a useful niche in this sector and its attempts to control costs are paying off. cleverly capitalizing on the popularity of modern means of consumption"data-reactid =" 45 "> Overall, the results have been encouraging: net losses are expected in the nascent marijuana sector and KushCo is not afraid enough to discourage The company is a useful niche in the industry and its attempts to control costs are paying off, while cleverly capitalizing on the popularity of modern consumer goods, such as vaporizers (vapes).
Finally, its ambition to be listed on the Nasdaq will confer legitimacy on KushCo's shares and should attract the interest of funds and individual investors in more traditional industries.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 47 "> More from The Motley Fool
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Eric Volkman has no position in any of the actions mentioned. Motley Fool recommends CannTrust Holdings Inc. and KushCo Holdings. The Motley Fool has a disclosure policy."data-reactid =" 52 ">Eric Volkman has no position in any of the mentioned actions. Motley Fool recommends CannTrust Holdings Inc. and KushCo Holdings. Motley Fool has a disclosure policy.
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