There are as many reasons to be optimistic on cannabis stocks in the US and Canada with the full legalization of the Canadian market in October of last year, and the recent progress made in various US states. From this, it seems cannabis is poised to go much more mainstream in the years ahead.
Aurora Cannabis Entering New Markets
Canadian cannabis giant Aurora Cannabis (ACB) Inc reported on Thursday a 2-year contract has been signed and initiated to supply medical cannabis to the Italian government. Leveraging its current business matrix already set up in Germany, ACB hopes to bridge the two countries in a bid to spread across sections of Europe.
ACB will supply a minimum of 400 kg of medical cannabis to the country from its Canadian EU GMP certified facilities, routing through its Germany establishment “Aurora Deutschland”.
Analysts are still suggesting that Aurora is keen on making at least 1 major acquisition within 2019 in order to stay in the hunt for the top Cannabis company in North America, following Canopy Growths major acquisition in 2019.
….it’s stands to reason that Aurora has the infrastructure in place, and global reach especially in Europe, to disrupts Canopy growth dominance in a t-5 year period.
Canadian CBD Company Enters China
The Globe and Mail reported last week that EastWest Biosciences (TSX.V:EAST) is in the process of obtaining a business license for the sale of products in China. The sales will be conducted through a partnership with Diverse Global Services, which is based in Suchuan Pilot Free Trade Zone. Diverse Global will also be a consultant and broker for EastWest.
EastWest Bioscience is a TSX Venture Exchange Cannabis Company that is in the process of expanding its operations to the USA and China in a bid to cover two of the largest markets in the world.
Sichuan is currently in the process is growing as a port service for international commodities, distribution, de-consolidation, bonded logistics, financial services, and related services.
Fanika Javanovic Perika a lead at Global Business Development, shared in the press release,
“Entering the People’s Republic of China has always been part of the global expansion strategy for EastWest Bioscience. Partnering with Diverse Global Service allows milestones to be reached rapidly and efficiently. We are looking forward to working with DGS to implement the long-term sales goals of our Hemp-based products.”
New MJ Banking Co. Breaks Ground.
Major issues facing the cannabis industry, such as limited access to MJ related banking services, have stalled in Congress without even getting a hearing, much less a floor vote.
That changed in 2019, when a subcommittee of the now-Democratic-controlled House Financial Services Committee testified on the difficulty legal cannabis businesses have opening and maintaining bank accounts.
The hearing – which also will looked at proposed cannabis banking legislation that the banking industry supports – was only the first step in getting a measure passed.
“It’s a new Congress, with new leadership in the House, and I think we have a real shot getting this issue resolved this session. … That’s why we’re seeing this hearing so early in the year,”
said Aaron Smith, executive director of the National Cannabis Industry Association.
A recently entry into the MJ banking industry Discovery Gold Corp. (DCGD) made progress into its transition to a MJ banking entity. It has been documented that a reverse merger into this clean shell purchased by GRN Funds LLC) with an announced ticker symbol change via GRN Holding Corp. change of registration has been initiated. Reports are suggesting a number of registered brokers have informed investors that the process to change the ticker from DCGD to GRN has been initiated, although no time frame has been set as to when this process will be complete. We have not independently verified the CUSIP/Ticker change process as per reports. The first step includes major brokerages to confirm the underlying CUSIP/Ticker has begun a “change of identification” process, which will require confirmation. Lastly, ticker changes must be confirmed by FINRA, as they have the last word, and no broker can initiated any cross sectional changes until FINRA approval has been given.
Justin Costello (CEO- GRN Holding Corp) brokered the largest cannabis deal ever in 2017, GRN Funds LLC (WA-Oregon) which is an investment firm with $1.15 Billion Dollars under management and $600 Million under deposit established in 2014 by Justin Costello. GRN Funds LLC provides secure banking resources for small to medium businesses and ancillaries and enables businesses to reach larger markets and engage an ecosystem of providers to develop and increase profitability. Serving over 400 businesses across the USA with $500 million in PMS banking in the West.
Disclaimer: This is an editorial analysis piece, and no member of EquityBulletin.com has been compensated by any of the companies mentioned, nor do we hold any position in any of the companies mentioned in this editorial.