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Recreational Cannabis Legalized In Canada

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The Canadian parliament has passed a law that legalizes the use of cannabis for recreation. The legislation has sparked heated debate and headlines around the world. Some of the media houses that first reported the news of the bill were BBC and CNN among others.

Comparison of the new law with other countries

Many of the global media houses were comparing Canada’s law with those in their countries. Additionally, many people are speculating about many countries around the world adopting a similar step.

The Cannabis Act was passed with a 52-29 vote in the Senate. The bill will control and regulate the manner in which marijuana is grown, distributed and sold in the country. People in Canada will now be able to buy and use cannabis legally starting September this year.

Following the way of Uruguay

Canada becomes the second country to legalize the countrywide use of cannabis in the world. In December 2013, Uruguay became the first country in the world to legalize the sale and use of cannabis for recreational purposes. Additionally, several states in the United States have also taken similar steps.

Possession of cannabis in Canada has been criminal since 1923. However, it was legalized for medical use in 2001.

After it was passed in the Senate, the bill is expected to receive the Royal Assent this week. From there, the government will give a timeline on when the law will become effective.

Prime Minister’s comments on the bill

In a tweet, Canada’s Prime Minister Justin Trudeau lauded the move by Senate saying that legalizing marijuana will make it hard for children to access it. He added that the new law will make it possible and easy to prevent criminal elements from reaping huge profits from the sale of cannabis.

Dissenting voices

Controversial as it is, the bill has not been without opposition. A number of groups have raised their opposition towards the bill. Among them are the opposition Conservative politicians plus other indigenous groups. Following the passage of the bills, provinces and territories will be given between eight and 12 weeks to put in place new marijuana market places.

BUSINESS

Dosecann Inc, A Subsidiary Of Auxly Cannabis Group Inc (OTCMKTS:CBWTF), Enters A Pact With Lonza Group AG (OTCMKTS:LZAGF) For LEMS Machine And Capsule Filling And LEMS Technology

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Auxly Cannabis Group Inc (OTCMKTS:CBWTF)’s subsidiary Dosecann Inc has signed a pact with Lonza Group AG (OTCMKTS:LZAGF)’s subsidiary Capsugel Inc. As per the terms of the accord, Dosecann receives rights to use sealing LEMS and capsule filling LEMS technology. The company also gets equipment for capsule sealing and filling besides proprietary liquid filled Licaps capsules of Lonza. Dosecann collaborates with Lonza for new formulations to produce Cannabis capsules.

Lonza’s technology in health applications

Lonza’s technology is used in functional improvements such as odor and taste masking, bioavailability enhancement, controlled/ delayed release, and combination products in nutritional and health applications.

Annual capacity for 200 million capsules

Dosecann will equip its PEI facility with a complete production line having an annual capacity to fill/ seal 200 million Capsugel Licaps capsules. It can provide new compounds having improved functionality.

Dosecann will improve its production and product development capabilities by getting access to patented technologies of Lonza. The company will also use the patented technology to support the differentiated product offerings via possibilities of color and branding and multiple delivery systems. The new technologies of Lonza will enable Dosecann to introduce differentiated and innovative capsule products in different dosages.

President of Auxly, Hugo Alves said the company is thrilled to work with an international leader in encapsulation technology and capsules. He looks forward to develop a fruitful and creative long-term relationship with Capsugel and Lonza. It is the right time for the deal because Auxly is preparing to market derivative products with expected legalization by end of this year.

Auxly focuses marijuana derivatives

Auxly is focusing on marijuana derivatives expansion by end of this year despite widening its net loss. The company has reported revenues of $817,000 CAD in Q1 2019. The company has derived sales of $525,000 CAD from deferred service contracts contributed by KGK Sciences. It has generated balance sales of $292,000 CAD from cannabis flower. The company is holding back the dried flower to produce concentrates, edibles, and topicals expecting legalization by Health Canada by October 2019. Its net loss has widened to $13.8 million CAD in Q1 2019 from $10.5 million CAD in Q1 2018.

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Real Brands Inc (OTCMKTS:RLBD) Signs An LOI To Purchase Proprietary CBD Formulas From Florida Based Integrative Medicine US

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Real Brands Inc (OTCMKTS:RLBD) has signed an LOI to buy proprietary CBD formulas of Integrative Medicine US. The formulas comprise ancient Chinese Medicine and Herbal Remedies that are blended CBD, nutrients, and endocannabinoid systems. Following the acquisition, Real Brands will use the formulas in its CBD Pharmacy brand. The company will use the new logo with a Chinese Symbol of healing.

CBD Pharmacy products

The initial product launch of CBD Pharmacy comprise salves, tinctures, balms, powders, and capsules developed to treat pain and promote relaxation, and boost immunity and energy.

Jerry Pearring, Chief Executive Officer of Real Brands, said medicinal herbs, CBD, and vitamins are blended using a proprietary formula to develop innovative medicine by Jonathan M. Fields, the founder of Integrative Medicine. The new products will help to keep the Real Brands in the driver’s seat to create a strong brand for CBD Pharmacy.

According to Pearring, CBD Pharmacy is expected to satisfy the growing consumer demand for hemp derived cannabidiol products. Consumers will also enjoy the benefits of eastern medical therapies.

Jonathan said the recent technological advances helped the company to develop superior medicinal products. Its features include Vegan, 100% Non-GMO, and tested in a third-party lab using cannabidiol. The company developed delivery mechanisms so that customers can get CBD and other ingredients in the right dosage to provide the desired effect for long-time.

Partners with Scot Piercy

Real Brands has partnered with Scot Piercy, a professional athlete, in April 2019. He will act as an ambassador for Real Brands Team and invested in the company last month. Pearring commenting the partnership said the company is excited to announce Scot as an ambassador. The investment shows the belief in the business model of the company and the long-term prospects. Pearring is pleased to welcome Scot on board Real Brands.

Piercy said he is proud to join the team of Real Brands. He studied about Real Brands and provides the support to grow hemp derived cannabidiol brands. Piercy further said it is looking forward to work with the company to introduce unique brands of Real Brands through e-commerce sites and retail channels.

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BUSINESS

Hexo Corp (NYSEAMERICAN:HEXO) Acquisition Of Newstrike Brands Finalized

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Acquisition now Finalized

Hexo Corp (NYSEAMERICAN:HEXO) has announced that it has completed the acquisition of all of Newstrike Brands’ issued and outstanding securities totaling 558,971, 064 marking the finalization of the acquisition process. The company has also received regulatory approval from relevant authorities including the high court further stamping the deal.

Reportedly, Newstrike Brands’ board of directors voted enthusiastically in favor of the acquisition that saw each of Newstrike’s stock exchanged for 0.06332 of Hexo’s share. Following the completion of the acquisition process, is expected to be delisted from TSX exchange platform as it will now operate under its new owner- Hexo.

Increased Production Space and Capacity

Popular voices in the industry believe that the $263 million acquisition sets Hexo among the industry’s elite. Among the several befits Hexo stands to gain from the acquisition includes additional production space estimated at 470,000 sqft. This is a significant addition to the company’s existing 1.3 million sqft.

With additional growing space comes increased production capacity. It is estimated that Hexo’s annual production capacity will surge from the current 110,000 kilos annually to a whopping 150,000 kilos annually which obviously translates to revenue influx.

Hexo’s CEO, Sebastien St-Louis said that “The combination of these two talented teams, both pioneers in the cannabis industry, will accelerate Hexo’s vision of creating the best cannabis technology company.” He adds that the Hexo is now commencing journey on the next phase of its progress.

The acquisition enhances the company’s solid position in the Canadian cannabis space and opening it up to countless possibilities abroad. The company already announced plans to set up operation in Greece as it seeks to seize the upcoming European market. Plans are also underway to set up operations in South America, the U.S (which is expected to open up fully by 2020), and more other locations.

The company already adjusted its 2020 revenue outlook to an optimistic $400 million. This projection factors in the company’s now bigger size in terms of production capacity and market access considering Hexo now assumes Newstrike’s distribution agreements with strategic partners across 8 Canadian provinces.

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