When will the Canadian Commercial Banks start lending to the cannabis sector?

There is this general assumption that once rec happens the Canadian chartered banks are going to be falling all over themselves to lend to this sector.That could be one of the dominos that MAY need to fall. But there are bigger ones than day 1 of rec that need to be tipped.Commercial lending for Canadian banks is very homogeneous. They are subject to similar risk rating methodologies (Basel II when I was last inside), similar return requirements (RAROC: Risk Adjusted Return on Credit) they pretty well all use the same financial statement spreading software... HOMOGENEOUS.If you bid a deal to several banks there will…

Continue Reading
Gain on Bios for the layman/laywoman: Lemonade Stand posts: CGC Q3 and Q4 F2017

Ok... these are two satirical posts trying to explain GoB. [To CGC Investors: These are historic looking numbers. I fully recognize that you are investing with forward looking view. So if you laughed at u/Monteviale ACB using shares to Buy Itself post, I’d hope this gives you a chuckle and some learnin’. ] Before you look down your nose at Stockhouse (where I originally posted these) I have heard from multiple sources that these stories have made the rounds of a number of I Banks. Q3 https://www.stockhouse.com/companies/bullboard/t.cgc/capital-gold-corporation?threadid=25856421 Q4 http://www.stockhouse.com/companies/bullboard/t.aph/aphria-inc?threadid=26416116 GoBlue

Continue Reading
Demystifying Gain on Biologicals

This is a post I did 5 months ago and was posted on r/weedstocks. Before you ask a Q see if it was already asked and answered. It is looong. https://www.reddit.com/r/weedstocks/comments/6k7qnt/demystifying_gain_on_biologicals_gob/ Given the live example CGC provided, and I get a ton of Q's on GoB, I thought I'd put up a post that may serve as a reference going forward. It is very difficult to analyze an LPs financial statements without understanding GoB. It is an International Financial Reporting Standard (IFRS) that impacts when profit from harvests is taken into Net Income. I will not talk about the Biological Assets (pre harvest) on…

Continue Reading
Cannabis: The Dumb Plant

I wrote this a while back to explain to someone why Canopy was growing different strains in their indoor facility than Aphria was growing in their greenhouses. When growing cannabis, water and light requirements must be kept within certain ranges at different stages in the grow process. Unlike crops we’ve cultivated for centuries, we haven’t selectively bred cannabis for stable growth traits required in industrial scale cultivation. Instead, we’ve bred the plant to produce the most THC/CBD with the greatest number of trichomes. You can picture the scenario as a human growing hair, if we breed a human to grow hair at 3x the…

Continue Reading
Selective Comparison of the Cannabis Extract Industry Part 1: Extraction

When I look at and compare cannabis companies I always start by looking at their public documents. After some time trying to decipher how the companies operate, I inevitably get annoyed at the lack of detail in both their financial statements and on their websites. At this point I turn the scientific literature behind their products to glean some insight into the operations they don’t want to communicate with their shareholders. For some context, I started this analysis with the intention of comparing some of the companies on this listwith others speckled throughout, since they fall into a similar category of companies that primarily…

Continue Reading
Close Menu