Last week was a wild week for the cannabis sector and we are closely monitoring how the sector performs this week.
On Friday, the cannabis sector recorded some significant price movements and leading Canadian cannabis producer Tilray (TLRY) fell more than 30% on above-average volume. The recent price movements have been significant and today, we highlighted 3 company developments to be aware of.
Namaste Announces a Major Milestone
On Friday, Namaste (N.V) (NXTTF) announced a major milestone after its Cannmart subsidiary was granted the first Sales-Only License under the ACMPR from Health Canada. This was a significant announcement and we are monitoring how the market responds to this development.
2018 has been a banner year for Namaste and the company has created several strategic relationships during this time. Cannmart is well positioned to capitalize on Canada’s recreational cannabis market which will open in less than a month and we are monitoring how the team executes ahead of this.
Namaste has come under pressure and we think this weakness is overdone. The granting of a Sales-Only License from Health Canada is huge and we are monitoring how the market responds to this. To receive updates on Namaste Technologies, please reach out to firstname.lastname@example.org.
Integrated Cannabis Company: An Emerging Opportunity
Earlier this month, Integrated Cannabis Company (ICNAF)(ICAN.CN) announced the completion of a market ready Tetrahydrocannabinol (THC)-infused spray product and has the licenses required to manufacture the product in Colorado.
ICAN offers a novel line of health care and life-enhancement nutraceutical sprays for pain relief, awareness, sleep, libido, energy, and recovery under the X-SPRAYS brand name and is focused on the development, manufacturing, marketing, and distribution of botanically-based consumable products in Canada and internationally.
Last week, the company signed a letter of intent (LOI) to distribute X-SPRAYS products throughout the clinics and doctors’ offices of Empower Clinics Inc. (EPW.CN) (ADENF), a leading owner and operator of medical cannabis and wellness clinics in the United States.
On Friday, ICAN was under pressure and we are monitoring how the shares continue to trade. The recent developments have been significant and we are favorable on the growth potential via Empower. The cannabis clinic company has significant reach in the United States and is in the early innings of a major growth cycle. ICAN has several catalysts for growth and we think this is a company that investors need to be watching.
Organigram and Canopy Ink Partnership
Last week, Organigram Holdings (OGI.V) (OGRMF) and Canopy Growth (WEED.TO) (CGC) signed a two-year supply and distribution agreement after Organigram was approved as a cannabis supplier in Newfoundland and Labrador.
Organigram will become a key supplier of branded, finished cannabis products to Canopy Growth’s Tweed-branded retail operations once the recreational market opens. Canopy Growth will also perform a B2B sales function for Organigram by marketing its portfolio to other licensed retail outlets in Newfoundland and Labrador.
Currently, Organigram also has supply agreements/memorandums of understanding with the provinces of New Brunswick, Nova Scotia, Prince Edward Island, Alberta, Manitoba and Ontario. Canopy has secured supply agreements in every province & territory with announced supply plans.
This relationship is significant and Organigram has been in the middle of a major expansion. We think the Canadian cannabis producer has been flying under the radar and expect the relationship with Canopy to prove to be profitable. This is a relationship to keep an eye on.