Connect with us

Cannabis

Aphria Concerned Not Enough Supply To Get High

Daniel Chase

Published

on

stock_price_esketit

Recreational marijuana usage will be fully legal in Canada on October 17, and cannabis retailers across the country are getting concerned that their inventory will be insufficient to meet the demands of consumers. 

Canada’s fourth-largest producer of cannabis, Aphria Inc.(APH), is one of the many companies concerned with potential supply shortages. Aphria’s chief executive officer expects “sold out signs” at cannabis retail shops across Canada, following the legalization of Cannabis, next week, Yahoo Finance reports. 

“There will be supply shortages in the early stages of adult use, including from Aphria, as the industry crosses a major inflation point. There will not be complete satisfaction by any of the provincial regulators out of the box. The pipeline fill is not going to be there.”

Vic Neufeld, CEO Aphria, Inc. 

Neufeld expressed total confident that Aphria’s (APH) inventory will satisfy the consumer demand for both recreational and medical marijuana “over the medium and longer term,” but shared the concern that the legalization of cannabis will not bode well unless supply-chain issues are fixed. 

Aphria (APH) currently produces a maximum of 35,000 kilograms annually, according to production capacity reports, but expects to reach nearly 260,000 kilograms by November once facility expansion projects are completed. 

According to recent studies released by the University of Waterloo, the current inventory of legal cannabis in Canada is set to meet only 30% to 60% of consumer demand. Research released from the C.D. Howe Institute, a Toronto-based think-tank, estimates that “legal supply will rise from about 146.13 tones (146,000 kg) to roughly 210 tonnes (210,000 kg) per year, after legalization, while demand is expected to hover around 610.6 tonnes (610,000 kg).”

Some industry experts are predicting that a shortfall of legal pot producers will be met with demand support from the illegal market. Essentially, while Canada’s legalization of cannabis offers consumers with regulated quality products with no concern of lacing or tampering, the lack of ample supply may lead consumers to get their pot the old fashioned way. Authors of the C.D. Howe report say that their results “show that both pricing and supply shortages will contribute to maintaining the black market. Resulting in lost tax revenues and a continued need to spend significant resources on law enforcement activities related to the market.” 

Despite cannabis producer concerns, the Canadian government remains confident that there will be plenty to puff, puff, then pass. Mathieu Filion, a spokesperson for Health Minister Ginette Petitpas Taylor, had this to say:

“Based on current inventory levels and growth in production capacity, the industry is well-positioned to supply product as consumers transition to the legal market”

Mathieu Filion, Spokesperson for Health Minister Ginette Petitpas Taylor

Filion insisted that (Canadian) Parliament provided ample time for federally-related producers to “harvest, package, and ship cannabis products to authorized distributors and retailers.” Bloomberg reports that very few brick-and-mortar retailers will even be up and running by Oct. 17, with none in Ontario, Canada’s densely populated province. Market analysts are distressed that limited availability will negatively affect pot stocks that have “soared in anticipation of Canada becoming the first Group of Seven nation to legalize marijuana.” 

According to Deloitte, Canada’s makes is expected to climb to C$4.3 billion ($3.3 billion) in the first year. While worries about producers ability to meet the demand for day one are prevalent, the only thing left to do is turn off, tune in, and drop out.

Continue Reading
Click to comment

Cannabis

How Industries Are Being Changed By Marijuana Stocks

Joe Samuel

Published

on

marijuana stocks to watch April

You’ll most likely read about them in the news today. Marijuana stocks are taking center stage after a whirlwind year in 2018. If one thing’s certain, it’s that this has become a very real industry and it is scaling quickly.

Where most people will think about growing cannabis or selling cannabis, marijuana stocks encompass much more than just the agricultural industry.

Eat Your Heart Out, Uber

Take, for instance, Parcel Pal, Inc. (PTNYF) (PKG). This is a company that has begun to build a model for delivery.  We’ve all seen the mass appeal for mobile applications like Uber Eats, Postmates, DoorDash and the like. Parcel Pal is going one step further.  Not only are they deliverying everything under the sun from groceries to clothing but they’ve also begun to put deals together with Canadian LPs for cannabis delivery.

Take, for instance, Parcel Pal, Inc. (PTNYF) (PKG). This is a company that has begun to build a model for delivery.  We’ve all seen the mass appeal for mobile applications like Uber Eats, Postmates, DoorDash and the like. Parcel Pal is going one step further.  Not only are they delivering everything under the sun from groceries to clothing but they’ve also begun to put deals together with Canadian LPs for cannabis delivery.

Don’t get me wrong, there are other companies that deliver cannabis but few, if any are actually doing it on a direct level with licensed producers.  For this reason, Parcel Pal could truly become a gamechanges within the industry and a pioneer for the new age of on-demand delivery.  According to a recent press release, this delivery should have begun this week starting on April 15th in Saskatoon, Saskatchewan.

ParcelPal to Launch Cannabis Delivery on April 15th

“We are extremely excited to go live with our first partner in the cannabis space, Kiaro.”

Kelly Abbott, President and CEO

Furthermore, the company also has a previously announced deal in place with Choom Holdings (CHOOF) (CHOO). The Company received the agreement from Choom for the establishment of distribution from various retail outlets in Canada.  Being that the company recently achieved a major milestone of its 2 millionth delivery, Parcel Pal is far from the new kid on the block.

Global Reach Is Growing Strong

Other companies are also getting into the mix to shake up the cannabis industry with a big focus coming from investment banks.  Aurora Cannabis  (ACB) and Canopy Growth (CGC) (WEED) both had analyst coverage initiated by Bank of America. The coverage comes with Buy ratings and fresh price targets to add to the excitement.

Special Delivery! On-Demand Tech Companies Hit Billion-Dollar Valuations; Here’s How Investors Can Capitalize In The Market

Don’t forget that Canopy Growth has been on the hunt for big buyouts of companies in the marijuana arena.  The company announced that it will be expanding its European footprint through the purchase of a Spanish licensed cannabis producer, Cafina.  Canopy will be adding Cafina’s 1,600 square foot greenhouse to the existing 430k square foot licensed production site in Denmark. It will also include its facility in Germany.

Needless to say, marijuana stocks have taken their lumps. This happened during the period from March 15 to April 15 period but similar to last year, the turnaround may be nearby. The MJ industry saw a similar pullback during this time frame last year. Shortly following tax day, the industry rallied well into May.  Could this be the same thing we see in 2019?

marijuana stocks to watch April

MIDAM VENTURES LLC has been compensated $75,000 per month by a ParcelPal Technology, Inc. for a period beginning September 1, 2018 and ending February 1, 2019 to publicly disseminate information about (PTNYF/PKG) to publicly disseminate information about (PTNYF/PKG). Midam Ventures has been compensated $100,000 by Parcel Pal and has extended coverage to April 1, 2019. Midam Ventures has been compensated $100,000 by Parcel Pal and has extended coverage to May 1, 2019. We may buy or sell additional shares of (PTNYF/PKG) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. We own zero shares. Click Here For Full Disclaimer

Continue Reading

Cannabis

Are Marijuana Stocks Set For A Rebound?

Daniel Chase

Published

on

stock_price_btfd

Marijuana stocks and the marijuana industry have proven to be incredibly lucrative throughout the last several years with increased acceptance of CBD by medical experts as well as innovation-driven products making their way to the market.

In the months leading up to Canadian legalization of recreational cannabis use, the sector saw exponential gains enjoyed by some of the industry’s leading producers. One research report suggested that in those early months, several top cannabis stocks would experience a market value increase of over 100% in some cases. With such unprecedented potential for growth, investors were ready to ride the high to the top.

However, in the week or so following Canadian legalization, the volatility of the market became incredibly clear. Even with the advent of Canadian legislation, and other nations with policy procedures in the woodworks, the cannabis industry is still very much in its infancy, meaning that there is a large amount of growth the sector must undergo before investors can enjoy its full potential. Though cannabis supply is low, sector hopes remain high that the industry will meet the demand of consumers and prove profitable. In the meantime, it looks like the street could be prepping for that #BTFD moment ;).

Click Here For The Full Article: Marijuana Stocks: Are We Ready For The #BTFD Moment?

Continue Reading

Cannabis

The Weed Man, The Paper Boy, The Evening TV

Daniel Chase

Published

on

OTTAWA — The Canadian Union of Postal Workers said in an official statement late Tuesday that it has given strike notice to Canada Post, a company that functions as the primary mail provider in Canada. If American postal workers are some of the kindest individuals in the public sector, I can only imagine the severity of whatever is causing the union to strike. 

The Canadian Union of Postal Workers (CUPW) represents nearly 50,000 Canadian postal workers across the country. In their official press release, the union stated that if their demands are not met, “rotating strikes will begin at 12:01 am, Monday, October 22. Locations have yet to be determined. ”

As for their demands, the CUPW claims Canada Post needs to address issues of “health and safety, gender equality and preserving full-time, middle-class jobs,” says Mike Palecek, CUPW National President. The union has been reportedly pushing for 3.5% annual wage increases but has been met with offers far below inflation, Palecek added. 

“Our goal is still negotiated settlements with no postal disruption. This week is Canada Post’s chance to make that happen-Mike Palecek, National President Canadian Union of Postal Workers 

Canada Post spokesman Jon Hamilton, in response to union strike threats, said in a statement that the postal service has found common ground with the union before, with issues far more severe than this, and he confident a resolution will be found. 

Hamilton also assured the Canadian public that the postal service will still be operational in the event of a strike, as Canada Post is the largest parcel service company in Canada. 

The CUPW’s decision to advocate for their rights and strike, while important, comes at a very inconvenient time for many industries in Canada, notably the cannabis industry. 

On Tuesday, at 12:01 am, distribution and use of recreational marijuana became legal for Canadian citizens, ending almost a century of prohibition. While many cannabis consumers are ecstatic about the news, individuals living in communities without retail cannabis shops have little to no access to the product. 

It was at this moment, cannabis producers had a revelation. We can get more products to consumers if we offer delivery services through the Canada Post. Game changer. 

According to the British Columbia Liquor Distribution Branch (BCLDB), the organization partnered with Canada Post to deliver cannabis. As far as the terms of the contract, customers will be responsible for a $10 shipping fee when ordering, and their orders will be shipped directly from the LDB’s warehouse within 48 hours of order submission. Ironically, or not, on the first official day that cannabis is recreational legal, the Canada Post decides to go on strike. Canada Post hasn’t officially stated that their demanded issue changes have any relation to cannabis distribution responsibilities. 

While the Canada Post, the Postal Workers Union, and the BCLDB get their affairs in order, other companies in the space are implementing creative solutions to deliver the quality product to consumers. 

Enter Choom (CHOOF),  an “emerging adult use cannabis company” which has secured the rights to 52 retail opportunities across Western Canada, with 29 “highly strategic and sure locations” around the province.

Choom (CHOOF) has worked tirelessly to create their best-in-market retail storefront brand in the Canadian adult use market and officially announced in September, that they entered into a distribution agreement with ParcelPal Technology Inc. (“ParcelPal”) (PTNYF). 

Step aside, Canada Post, and let the real cannabis players get their hands dirty. Gone are the days of standing for hours in line for your lunch, rushing to the store after work to grab your clothes, and now, waiting for Postal Workers Unions to settle their grievances. 

ParcelPal (PTNYF), the pony express built for the digital age that Canadians have waited for, offers “on-demand delivery of merchandise from leading retailers, restaurants, liquor store and,” as of 12:01 am on Tuesday, medical and recreational marijuana. 

“We recognize the importance of utilizing the existing technology of ParcelPal’s mobile app in concert with their outstanding track record of home delivery execution. We believe this will provide an exceptional customer experience and we are excited to offer this to our valued customers upon the upcoming rollout of our retail strategy.”

Chris Bogart President and CEO Choom

As for the legality of cannabis delivery, ParcelPal (PTNYF), in partnership with Choom, will be held to the same standards as Canada Post. Upon delivering your product, you will need to show proper identification indicating that you are nineteen years or older. 

I wish the Canadian Union of Postal Workers the best of luck in their organizing and hope that Canada Post takes their demands seriously. If either party starts to get stressed, no reason to panic. Choom (CHOOF) delivers. 

marijuana stocks


Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC an affiliate of JSG COMMUNICATIONS LLC, MIDAM VENTURES LLC. has been compensated $75,000 per month for 3 months by a ParcelPal Technology, Inc. for a period beginning September 1, 2018 and ending December 1, 2018 to publicly disseminate information about (PTNYF/PKG) to publicly disseminate information about (PTNYF/PKG). We may buy or sell additional shares of (PTNYF/PKG) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. We own zero shares. Midam has been paid $80,000 from Choom Holdings and 200,000 restricted common shares of Choom Holdings for a duration of 4 months beginning May 14, 2018 and ending September 14, 2018. We may buy or sell additional shares of (CHOOF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable InformationClick Here For Full Disclaimer 

Continue Reading

Join Our Newsletter

Get stock alerts, news & trending stock alerts straight to your inbox!


We keep all user information pricate & promise to never spam.*

Privacy Policy

Search Stock Price (StockPrice.com)




Trending

Subscribe Now & Begin Receiving Free Stocks News, Articles, Trade Alerts & MORE, all 100% FREE!

We are your #1 source for all things Stock Market & Finance, Subscribe Below!

Privacy Policy: We will NEVER share, sell, barter, etc. any of our subscribers information for any reason ever! By subscribing you agree we can send you via email our free e-newsletter on stock market & finance related, articles, news and trade alerts. Further questions please contact privacy@stockprice.com