This was a fun one!

In this episode we talk about our favourite new products we've seen or tried. 

Most of these products are from California and give us a hint of what's to come in other markets.

#1) HEXO CBD Peppermint Spray - https://ocs.ca/products/elixir-cbd-peppermint-oil-oral-spray-hexo (Canada only)

#2) THC & CBD Infused Bath Bomb - https://myjane.com/ (California subscription service)

#3) Atlas Edibles Raspberry Hibiscus Beverage Mix - http://atlasedibles.com/raspberry-hibiscus/ (California only)

#4) CBD lined Eye Mask - https://myjane.com/ (California subscription service)

#5) Dosist Vape Pen - https://dosist.com/

#6) Foria Sexual Wellness - https://foriapleasure.com/pages/home

What's the coolest product you've seen or tired? Let us know - [email protected]

In this episode we explore the July 2019 sales data for Canada and compare it to sales numbers for mature US markets

- How Canada compares to Colorado, Washington and Oregon (mature markets)

- How other emerging markets like California and Nevada compare

- We breakdown how sales are doing and what future sales might look like 

- Lastly we derive future potential valuations from both conservative and aggressive projections 

- How do the current market valuations compare to future potential?

- Where is there more opportunity for investors?

Ultimate Resource for US Data: https://www.reddit.com/r/weedstocks/comments/d2txuf/us_statebystate_cannabis_industry_data_sources/

**Footnote: The Canada data is based on July 2019 sales data

In This Market Update:

- Valens Grow releases excellent earnings. What this means for the extraction sector

- How does Valens compare to Medipharm Labs?

- Auxly proposes an interesting solution to $100M of upcoming debt

- How this will impact Aurora's upcoming $230M (March 2020)

- Origin House - HSR Date passes with no announcement...what's going on?

- Cannabis 2.0 officially kicks off with good marketing

- Ontario looking at reforming it's distribution model

- Nevada freezes all license transfers

In this episode we discuss the new reality of the Cannabis Market - corrected values and the end of easy money

1) The Correction -- How did we get here?

- Natural transition from a hype-driven to a results-driven environment

- Using real estate developments as an example (selling the sizzle vs the steak)

- How the overall sales numbers are WAY off the projections ($4.6B vs $1B)

2) What is Easy Money?

- Lack of due diligence; "sizzle" driven investing

- Emotion driven investing style

- Focus on upside instead of risk mitigation (Greed > Fear)

3) The Effects of Easy Money

- Asset prices / Company Valuations start to rise rapidly

- How this has happened in Real Estate since 2008

- Attracting shady players ("promotes")

- Speculative behaviour of investors chasing comparable gains

4) What Next? What does this mean for investors?

- Resetting values can be attractive for investors

- "Cashed up" players can take advantage of this downturn through M&A

- Investors need to pay closer attention to margins: gross and net

- Cash and Cashflow are extremely important

- Focus on companies who have a proven ability to execute and make money

- How a failing company can create an investing opportunity in a winning company

Bonus: Manish and Abi make a $3 Billion Dollar Bet for 2020

We are at a critical juncture in Cannabis:

- There is a structural shift to evaluating companies on fundamentals and cash burn

- Bad News: Medmen and Pharmacann cancel proposed merger

- Who got a better deal? And Medmen's CFO getting fired

- How this might impact Origin House / Cresco Labs

- More Bad News: HEXO misses revenue and CFO gets fired (note the pattern)

- HEXO drops hard in price - is it valued fairly?

- Even More Bad News: Village Farms raises $25M at half the value from a few months ago

- How  we should have seen this coming

- What this says about the market and about VFF (good and bad)

- Good News! Mitch McConnell (senate leader) visits California and meets with Cannabis companies

- This bodes well for the SAFE Banking Act vote (but still uncertain)

- Good News: MediPharm Labs gets an increased bank facility at reasonable rates

In this episode we examine how the Canadian market has evolved over the past few years. We explore each part of the value chain - Cultivation, Brands, Processing and Retail and see if Canada is losing ground to other countries. 

In this episode we go through the mechanics of how and why Weed Companies raise capital. This is especially important in today's environment when companies may be forced to suffer significant dilution if they can't raise on favourable terms. 

We use a theoretical company ABC ("Always Be Cultivating") and explore how they might approach investors at each stage of their business. 

See how a company progresses from Seed Funding to Series A to IPO/RTO and beyond. We discuss what investors should look for and what questions to ask.

In this Market Update we discuss how we are right in the middle of a perfect storm of negativity and uncertainty:

- How we got here (CannTrust > Recession Fears > Canopy Earnings > Vapegate)

-  Why the Vape Issue is really a Black Market Problem

- How Vaping should be solved and the unfortunate knee jerk reaction

- Emergency Financing: Why Prices Dropped 20-30% in the last week

- KushCo (KSHB) Raises $30M USD at a steep discount 

- Ianthus (IAN) Raises $20M USD from Gotham Green on a 13% convertible note

- What happened to Harvest's (HARV) $225M USD Debt Financing? (Torian Capital deal explained)

- Data: How much have Vape Sales declined? Less than you might think...

- How much of this is priced in already? Is this Sentiment or True Risk?

- Closing: What Stocks Manish Sold and Why 

- Selling: Medmen/CVSI/IAN/HARV/KHSB

- Booking Tax Loss consideration ahead of others (risks and reward of this)

- What to look for Going Forward (important of cash and cash flow)

We are back with a PACKED Market Update:

1) Breaking down the HISTORIC passage of the SAFE Banking Act (by the House)

- How it happened and Why it matters

- The road ahead (goes through the Senate)

- Benefits of the SAFE Banking Act

- Why Traditional Bank Financing would be a huge positive for US Cannabis companies

2) Exploring the Vaping Health Epidemic (is it really an epidemic?)

- 350 cases with 8 deaths so 

- How bad is this? How aware is the general public?

- What's the cause? Vitamin E Acetate? The Black Market?

- How much should investors care? Is this just a blip?

- How simple and negative news can spread far and wide

- Why Vaping is so important to Cannabis Companies

- Massachusetts' 4 month ban on ALL vaping products (who's next?) 

3) Pennsylvania and the Tri-State Area (NY/NJ/CT) Going Full Rec

- 4 neighboring states all looking to go rec in short order

- Why New York wants the other states to share the same rules

- PA = 21M people; NY = 19.5M

- All 4 States = 53M people (1.5x Canada!!)

4) CIBC says Canada Sales Estimates are WAY too High

- $6.5B of 2020 Sales reduced to $2.2B (1/3rd of original)

- $7.5B of 2021 Sales reduced to $3.3B (44% of original)

- People online bashing CIBC over this. Are they right?

- Are these numbers accurate? Let's compare to real numbers

- What this means for the Canadian market

- US sales vs Canadian sales

Closing Thought: Long-term focus and being patient

- This is a 3-5 year investment play! 

- Don't get caught focusing on the ups and downs

In this episode Abi discusses his recent California trip and how complicated distribution in the Golden State is. We compare Canada to California and talk about the fragmentation of the market.