How much is that MSO in the window?

Well, CGC ($WEED) has been busy wrangling more deals up - this one a contingent option on a US based MSO. How much did CGC's shareholder's pay for it? Relatively straightforward - CGC paid a $300MM USD premium for the right to buy Acreage Farms for a whopping .5818 shares on the barrelhead. Some shmoes are pricing it out at current share price - which comes in around $3.4B. Challenge is - it's a moving target. And a contingent option to be clear (let's not forget that). The hair on this isn't the Acreage option per se, it's in the details of the Constellation…

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TREND Analysis – Hexo: “Gas in the Tank”

Hexo, like Aphria, does not break Inventory into Work in Progress or Finished Goods in their notes or MDA. Hexo always had minor Medical sales and was looking to adult recreational to be their core business. Bio Assets has been growing the last two Q's, and Inventory has certainly also shown growth. Inventory, like Aphria, is very linear but it is tough to tell if they will be able to keep up the sales pace without knowing the FG available for sale.. The Sales delta is exceeding the Inventory Delta in the last Q.

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TREND Analysis: Cronos “Gas in the Tank”

Nice to see the other analysts are catching on to the Finished Goods and throughput issues we have been talking about since mid-February. Cronos started the present Q with far lesser Finished Goods Inventory than the preceding Q. Last Q (Q0-1) they entered the Q0 with Finished Goods Inventory greatly surpassing their Sales for Q0. We noted that their decrease in FG Inventory of $10.1 million far outstripped their sales for the Q of $5.6 million, likely meaning a writedown in inventory. I would cation readers that if there was a writedown the previous figures Qs of inventory and bio assets are likely overstated.…

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TREND Analysis – CannTrust: “Gas in the Tank”

I thought it would be good, given TRST gave Q3F19 guidance yesterday, to put up the Trend Analysis for TRST to see how much "gas they had in the tank". TRST gave guidance that they harvested a good amount of product in Q3 [not graphed above], their GM % will rebounding to a figure higher than the previous 3 Q's and negative EBITDA was sliced in half. (These positives went to battle with the equity raise bouncing the stock price around considerably yesterday.) Yet TRST share a similar deficiency to a number of the other LP's... being their FG Inventory is considerably below sales…

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Patent #5: Oral Spray by GW Pharma

GW Pharmaceuticals has one of the largest cannabis patent portfolios in the industry. One of those patents is for an oral cannabinoid spray filed in Canada under CA2454644C set to expire in 2023. The patent is granted in several other countries as well, but not the USA. This patent is one protecting GW Pharmaceuticals Sativex formulation. Starting with the abstract:“The invention relates to pharmaceutical formulations, and more particularly to formulations containing cannabinoids for administration via a pump action spray. In particular, the invention relates to pharmaceutical formulations, for use in administration of lipophilic medicaments comprising one or more cannabinoids via mucosal surfaces, comprising: at least one…

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