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Although the Canadian cannabis sector offers tremendous upside, investors need to be cautious and focus on companies that have a differentiated strategy.

Back in the gold rush, the miners did not make all the money. It was the ancillary business who profited then and although times have changed, the opportunity has not. We believe that investors need to take a different approach and diversify around the Canadian licensed producers.

We have highlighted three Canadian cannabis stocks that trade in both the United States and Canada which we think have long-term upside due to their respective strategy.

InMed Starting to Catch Fire

InMed Pharmaceuticals Inc. (IMLFF) closed Friday down 5.3% but the shares ended the week up more than 12% off its lows and we think this is a stock investors need to watch. IMLFF broke below its 20 and 50-day moving average on this move lower and we think the shares are set to move higher as trading volume was well below its weekly average on Friday.

Earlier this month, InMed filed a provisional patent application in the United States for a cannabinoid-based topical therapy for glaucoma. The company has taken steps to execute on its strategy and has several event-driven catalysts set to occur in the back half of the year.

Cannabis Wheaton is Changing the Game

One company that looks to have found a bottom and is trending higher is Cannabis Wheaton (CBW.V) (KWFLF). The shares continued to rally on Friday and ended the day up 15% and 16%, respectively. The Canadian symbol is trading at $1.58 while the United States symbol, KWFLF trades at $1.16. Cannabis Wheaton has taken the licensed producer game to a different level and we believe there is significant value in several of its deals.

Earlier this month, Cannabis Wheaton released its roster of streaming deals and its partners include 14 companies based in six provinces across Canada. Of these companies, 2 have sales licenses (Broken Coast and Green Relief), 2 have cultivation licenses, 4 have affirmation letters and 6 are advanced pre-affirmation stage applicants.

Canadian Biotech Breaks Out of Oversold Territory and Set to Rally

Vinergy (VNNYF) traded almost 900,000 shares on Friday and VNNYF rallied well off its lows of the day. We think this massive increase in trading volume is significant and the shares no longer in oversold territory.

We see significant upside to current levels as VIN (the Canadian symbol) remains halted due to closing of the MJ Biopharma deal. Vinergy recently announced that it was increasing the size of its non-brokered private placement due to the high demand and this is a stock investors need to have on their radar

Disclaimer: Pursuant to an agreement between MAPH and InMedPharmaceuticals., we were hired for a period beginning February 24 2017 and ending April 24, 2017 to publicly disseminate information about (IMLFF) including on the Website and other media including Facebook and Twitter. We are being paid $40,000 (CASH) for and were paid “250,000” shares of restricted common shares of InMed Pharmaceuticals. Pursuant to an agreement between MAPH and Cannabis Wheaton (KWFLF) we were hired for 30 Days to publicly disseminate information about (KWFLF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for and were paid “0” shares of restricted common shares of Cannabis Wheaton. Pursuant to an agreement between MAPH and a non-affiliate third party, we were hired for a period of 1 month from 5/1/2017 – 6/1/2017 to publicly disseminate information about (VNNYF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for or “ZERO” shares of restricted or unrestricted common shares. We own zero shares of (VNNYF) which we purchased in the open market. We may buy or sell additional shares of (IMLFF, KWFLF, VNNYF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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    2016 was a year to remember for Canadian licensed medical cannabis producers and investors had every reason to be excited early during 2017.

    However, the last two months have been painful for Canadian cannabis investors. But we believe this weakness has created great opportunities for investors. Although we do think the sub-sector has almost found a bottom, investors need to be selective and focus on companies that have a differentiated strategy and competitive advantage over its peers.

    Canada Continues to Expand its International Presence

    One of the ways Canadian licensed medical cannabis producers have been able to differentiate themselves from their peers is through he countries they are levered to.

    Canopy Growth Corp (WEED.TO) (TWMJF) Cronos Group (MJN.V) (PRMCF), and Aurora Cannabis (ACB.V) (ACBFF) have accomplished this very well and are levered to markets like Germany and Australia.

    The emerging legal cannabis industry has created ample opportunities from legal cannabis businesses across the globe and we believe that companies with a global presence are best positioned over the long-term.

    A Streaming Rally

    Since Monday, shares of Cannabis Wheaton (CBW.V) (KWFLF) are up more than 12% and this recent IPO has seemed to have found a bottom. We are favorable on the company’s differentiated strategy and believe it has secured some high-quality partners.

    Earlier this month, Cannabis Wheaton released the list of companies it has streaming deals with and we were very impressed with the quality of the roster of its clients, especially Broken Coast Cannabis Ltd. and Green Relief Inc.

    Cannabis Wheaton’s streaming partners include 14 outstanding companies located in six provinces across Canada. Of these companies, 2 have sales licenses (Broken Coast and Green Relief), 2 have cultivation licenses, 4 have affirmation letters and 6 are advanced pre-affirmation stage applicants.

    We are favorable on the recent improvement in trading volume as well as the associated rally and investors should keep Cannabis Wheaton on their radar.

    A Royal Deal in Oregon

    Earlier this week, CannaRoyalty Corp. (CRZ.CN: CSE) (CNNRF) announced that its investee, Rich Extracts, received a processing license from the Oregon Liquor Control Commission (OLCC) to begin producing and wholesaling cannabis products to licensed distributors and dispensaries throughout Oregon.

    CannaRoyalty previously advanced $2.3 million in debt to the company for the right to convert $2.15 million of the debt into a 30% royalty stream on Rich Extracts’ gross sales in perpetuity. The company is a fully integrated cannabis operator and has been focused on building and supporting a diversified portfolio of cannabis assets.

    Rich Extracts operates out of a 30,000-sq. ft. facility and produces cannabis extracts through a proprietary process. The company expected the OLCC to introduce new standards and started a new project to meet such standards. At full capacity, the facility can produce 80,000 grams of concentrates and distillates every month. Based on industry information, current wholesale prices for such products in Oregon range from $15-20 per gram.

    We are favorable on this development and continue to monitor CannaRoyalty as the shares have been under significant pressure (down 35% from April highs). The company’s United States symbol, CNNRF broke out of oversold territory last week and we are monitoring this unique Canadian cannabis firm.

    Author: Michael Berger

    Pursuant to an agreement between MAPH and Cannabis Wheaton, we were hired for a period of 30 days to publicly disseminate information about (KWFLF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH). We may buy or sell additional shares of (KWFLF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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    Lexaria Welcomes Canada’s Proposed Cannabis Legislation

    The Cannabis Act provides the opportunity for Canada to craft the safest and most responsible cannabis production and consumption framework in the world, especially with respect to consistent and reliable dosing formats that technology such as Lexaria’s enables in modern edible formats. The Cannabis Act prohibits second hand smoke and second hand vapours from inhaled cannabis use, consistent with existing federal legislation that prohibits second hand cigarette smoke. It is also in everyone’s best interest to support the consumer shift away from the high sugar, high fat, inconsistent and unpredictable effectiveness and onset-times associated with edible product formats endemic in other adult-use cannabis markets.

    Lexaria’s patented technology — currently subject to collaborative examination together with Canada’s National Research Council — is strongly supportive of macro trends by embracing edible cannabis formats with zero added sugar, and lower micro-dosage unit sizes. Micro dosing of 10mg and even as little as 5mg of THC is rapidly gaining popularity in other legal cannabis jurisdictions that mandate micro dosing edible formats as a more responsible way of consuming cannabis, without creating issues of second hand smoke or second hand vapour for non-consumers. Micro dosing tends to lead to lower overall levels of consumption with reduced likelihood of overconsumption.

    “Modern technology allows for safer, more consistent and less obtrusive methods of cannabis use than ever before,” says Chris Bunka, CEO of Lexaria. “We have a once in a lifetime opportunity to support consumer health trends in the cannabis world through advanced delivery techniques unlike anything available even five years ago. I hope to see Canada lead the world in embracing public health in the cannabis sector.”

    While utilizing Lexaria’s technology, both in vitro and human biomarker studies point to significantly higher cannabinoid absorption and quicker & and more consistent onset of effects than can be achieved with conventional edible preparations. Further consumer focus studies conducted by Lexaria licensees have reported a more pleasurable, faster acting and predictable experience.

    Through a patented process that combines cannabinoids with natural delivery enhancers at a molecular level, Lexaria’s technology is believed to alter the absorption pathway of cannabinoids within the human body (designed to bypass first-pass liver filtration when desired for more rapid onset of effectiveness). More efficient and effective absorption of cannabinoids has been shown, while simultaneously masking and even eliminating inherent strong flavours and odors typical of cannabis extracts, avoiding the need for added sugar and fat. Lexaria’s technology was conceived to allow for the creation of edible product formats that mirror as closely as possible the potency and onset of effectiveness associated with inhalational dosing without its unwanted effects. Lexaria is thrilled to have the opportunity to lead advancements in bio-availability and speed & predictability of onset for health-conscious consumers.

    About Lexaria

    Lexaria Bioscience Corp. is a food biosciences company with a proprietary technology for improved delivery of bioactive compounds. The Company’s lipophilic enhancement technology has been shown to enhance the bioavailability of orally ingested cannabinoids, while also masking taste. This technology promotes healthy ingestion methods, lower overall dosing and higher effectiveness in active molecule delivery. The Company’s technology is patent-protected for cannabidiol (CBD) and all other non-psychoactive cannabinoids, and patent-pending for Tetrahydrocannabinol (THC), other psychoactive cannabinoids, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules.

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    Canada is set to make history this week by tabling legislation that would make the nation the first G-7 country to legalize recreational cannabis.

    This development has captured the attention of the market and many investors are focusing on companies levered to this opportunity. We want to highlight two Canadian companies that investors should be monitoring closely.

    OrganiGram Announces LOI with Trauma Healing Centers

    Organigram Holdings (OGI.V) (OGRMF), a licensed medical cannabis producer in Canada announced that it entered a letter of intent to acquire all the issued and outstanding shares of Trauma Healing Centers Incorporated. Under the terms of the LOI, Organigram will issue 719,425 common shares at $2.78 per share to the company.

    Trauma Healing Centers currently services over 3,500 patients across 7 Canadian locations and it has plans to open 7 more locations. The company specializes in medical cannabis assessment and prescribing. Trauma sees patients on a referral basis and offers a multi-disciplinary approach to healing chronic conditions.

    Trauma Healing Centers will continue to operate independently by providing referrals based on client need to any licensed producer in Canada. The company is the only organization to have a multi-disciplinary designation with Blue Cross for military and RCMP veteran clients.

    We favorable on this development due to the potential synergies between the two companies. Also, the $2 million purchase price is attractive when compared to similar transactions. OrganiGram has rallied off its recent lows and this is a company that should be on every investor’s radar.

    Canabo Announces Groundbreaking Results

    On Friday, Canabo Medical (CMM.V: TSX Venture) (CAMDF: OTCQB) released the results of an observational study that connected doctor-supervised medical cannabis treatments to a decrease in benzodiazepine reliance among Canadian patients.

    Research conducted over the past year revealed that 40% of patients who were prescribed medical cannabis to treat pain and anxiety eliminated the use of benzodiazepines within 90 days. The number of patients that stopped using benzodiazepines increased to 45% within a year of cannabis treatment.


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    With one of the biggest cannabis IPO’s out of the way for the venture market, it’s important to reassess where Emblem Cannabis stands today, and where its headed in the future, in light of all the interim short-term movement. It is often the case, that we find ourselves with too narrow a horizon, and often overlook key fundamentals with all the hearsay of the stock market. I first spoke to Maxim Zavet, President of Emblem, to see where the company stands. I then did a bit of digging on my own. To the goodies!

    A Talk With Maxim Zavet, President of Emblem

    1. Demand is high, while supply is low, for the medicinal cannabis market (currently). I have heard of stocking problems from other Licensed Producers’ clients. What are you doing to make sure this isn’t the case for Emblem?

    Maxim: “We will stop taking registrations to manage supply for our existing customers and only take new registrations when we can supply new customers.”

    2. What do you consider your unique value proposition, and how do you intend on translating it into growth?

    Maxim: “We have three very distinct verticals 1) High Grade or Premium indoor grown dried flower; 2) Pharmaceutical product development; and 3) Patient education clinics. All of these verticals will create revenue streams and more shareholder value.”

    3. John Stewart, and the pharma division of Emblem, have a lot of keen eyes closely watching. When do they begin operations and what will be their primary focus?
    Maxim: “We’ve begun our extraction activities under his leadership and hope to be ready to sell Cannabis Oils very soon as the first step, he is also working to create novel formulations and delivery mechanisms from those extractions that we are already producing.”

    4. Where do you, as Emblem, expect to be in this space, by the time legalization in Canada is enacted as the law? 2019 likely seems to be the case, where do you expect to be by then as as far as expansion is concerned?

    Maxim: “You can expect us to be very competitive in the legalized market with a high quality product at a competitive price. We’ve begun expanding our current facility and will continue expansion as we move closer to legalization. We are getting really good feed back with respect to our branding and we believe that Emblem is going to be a very strong mainstream premium brand.”

    5. When supply eventually starts meeting demand, and within the mid-term (let’s say 5 years approx.), if the price of cannabis falls per gram due to that, what safeguards do you have in place to ensure your profit margins aren’t overwhelmingly impacted?

    Maxim: “Within the next five years, we feel that if there is downward pressure on the price of cannabis it would be with lower quality greenhouse produced cannabis. This is the case in California where greenhouse product is half the price of indoor premium quality dried flower. Also pharmaceutical like products would not be subject to the same price pressures as dried cannabis would be.”

    Favourite Topic: Pesticides

    It’s been the concern and cause of a lot of speculation in the industry, as of late. I asked Emblem’s front desk, what they are doing, to protect their product from such pesticides.
    The answer: “Hello Hamzah, in regards to the question about pest control, We use organic mites to maintain a healthy plant dynamic so we don’t have to spray our cannabis with chemical pesticides. While Health Canada approves some chemical sprays, we avoid that as they can leave residue on the plant which we do not want to promote.”

    Senior Management

    Emblem is headed by one of the best senior managements’ in the industry. Gordon Fox, the CEO of Emblem, has practical experience running a successful pharmacy, and handling patients is something he has great familiarity with. Maxim Zavet, the President of Emblem, has traveled the world, studying phenotypes and strains for a living. He is in possession of in-depth knowledge of medicinal marijuana with a long list of contacts around the world. John Stewart, President of Emblem Pharmaceuticals, needs little introduction. He was the man responsible for bringing OxyContin to market during his reign with Purdue Pharma, a drug that rakes in multi-billion dollars annually. Finally, Harvey Sharpio, President of GrowWise Health, served as the CEO for TSX listed Dynacare Inc., a company which was eventually acquired by Laboratory Corp. of America Holdings. This top of the line senior management has invested $6 million of their own, indicating the sort of confidence they have in their operations.

    Emblem’s ‘Hybrid’ Double-Edged Sword!

    Emblem boasts a model and the experience to back it up, in a way, not many others can. The company has a full-scale grow operation, along with a full-fledged pharma production under way, led by John H. Stewart. The aim is to develop new dosage forms of cannabinoid medication. Gel caps, sprays, trans-dermal patches and pills. Push even a single drug through the market, and this company can fly to new heights. This is the very reason I have been so bullish on Emblem. They also have ‘the’ person to back up their aims in this division.

    Production & Expansion

    Emblem has invested $11 million in its state-of-the-art facility 60 miles southwest of Toronto, located in Paris, Ontario. The location consists of two buildings, spread across 4.3 acres of land, with a cultivation capacity of 14,500 sqft. Phase 2, subject to and based on initial expentancy, has been completed as of February, 2017, adding 1400kg to their existing 700kg production capacity for a total of 2100kg, for a total of $17.85 million in potential annual revenue, excluding oil sales. Capacity will remain that way until phase 3, which is expected to be complete sometime this year. The scaling out expansion is expected under phase 4, which is expected to be complete by 2018. Emblem plans on having a 12,000kg production capacity by then, with annual potential revenues soaring to $102 million. Emblem, at full production can produce 16,000kg of cannabis, with $136 million in annual revenue.

    Greater Profit Margins

    Based on phase 2 production, cash cost per gram is set at $1.52, with all-in cost per gram at $2.08 (includes ammortization and packaging). Average sale price is $8.50 per gram, translating into 71% profit margins. Projected operating margin for oil sales is set at a staggering 90%.

    Oil Sales

    All of this, already, without taking into account oil sales. I expect Emblem to be an industry-leader in this division, fully utilizing their pharma capacities to produce quality product. Within the first 12 months of operations and sales, Emblem expects to rake in $2.9 million in oil sales. The real revelation is in future numbers. For every 100kg of dried flower produced, 20% weight of the remaining plant can be used to produce 10,000 bottles of THC/CBD based oil bottles, translating into $8.1m in potential revenue (harvested 6 times). Simply put, $23.6 million is the potential annual revenue from a single grow room dedicated to oils!

    Patient Acquisition

    Emblem has out-done it’s own expectations. The company projected an estimate 1,000 patients to have been acquired by March, but that number currently stands just north of 2,000, with 8 days still left in the month. The company has seen a massive growth of 4167% in patient acquisition since operations kicked off. The company has a third prong, apart from cultivation and pharma, which is playing a pivotal role in expediting patient acquisition. GrowWise Health aims to educate the masses about cannabinoid based-treatments, and while doing that, has strategically been positioned to expand the bottom line: growth of the company.

    Legal disclaimer: The writer holds a long position in Emblem Corp. (TSXV: ‘EMC.VN’)

    And an affiliate of MAPH Enterprises LLC has a share position via private placement of 43,500 shares and 21,750 warrants of Emblem Corp Stock.

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    The Canadian cannabis industry may have received the catalyst it needed…

    Yesterday, CBC News reported that the Liberal government will announce legislation next month that will legalize marijuana in Canada by July 1, 2018.

    This is a huge announcement as it was one of the main reasons why Justin Trudeau and the Liberal Party won the Canadian general election in 2015.

    CBC said it learned that the legislation will be announced during the week of April 10th and will broadly follow the recommendation of a federally appointed task force that was chaired by former liberal Justice Minister Anne McLellan.

    A Change of Words

    According to the CBC, Parliamentary Secretary to the Minister of Justice Bill Blair briefed the Liberal caucus on the roll-out plan and the legislation during caucus meetings this weekend.

    This is a big change from early March when Blair said the Canadian government will take as much time as it needs to correctly implement a legal recreational cannabis program. Blair previously did not suggest a specific time frame because he said it could vary from province-to-province and territory-to-territory

    An Industry to Watch

    The Canadian medical cannabis industry continues to record double-digit percentage growth on a month-over-month basis and has more than 100,000 patients. There are currently 38 federally licensed medical cannabis producers in Canada and we are favorable on the opportunity that these companies have on hand.

    We are favorable on this update and expect to see the market rally higher off this news. Some companies investors should watch include: Cronos Group (MJN.V) (PRMCF), Emblem Corp (EMC.V) (EMMBF), OrganiGram (OGI.V) (OGRMF), Canopy Growth (WEED.TO) (TWMJF), Aphria (APH.V) (APHQF), Aurora Cannabis (ACB.V) (ACBFF), and VinergyRes (VIN.CN) (VNNYF).

    Authored by: Michael Berger


    Pursuant to an agreement between MAPH and a non-affiliate third party, we were hired for a period of 2 months to publicly disseminate information about (VNNYF) including on the Website and other media including Facebook and Twitter. We are being paid $120,000 (CASH) for or “ZERO” shares of restricted or unrestricted common shares. We own zero shares of (VNNYF) which we purchased in the open market. We may buy or sell additional shares of (VNNYF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. An affiliate of MAPH Enterprises LLC owns 43,500 shares of EMBLEM as well as 21,750 Warrants


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    With the Trump Administration in complete disarray and touting debunked information about Cannabis & Opioid connections we at decided to play a little game of devils advocate. The fact remains that the Trudeau administration remains progressive and is doing what all governments should be doing i.e. listening to its people. Canadians are in overwhelming support of legal cannabis markets which is why they legalized medical marijuana last year. This year the country plans on legalizing recreational use in an effort to crush black markets, create jobs, industry and position itself as a worldwide leader in cultivation. With a completely legal market Canada will face one major issue that will reap major benefits to public cultivation companies. That issue being one of supply and demand. Already operating at a deficit and coupled with an approval process by Health Canada that can take years we foresee investors sending their capital north of the border unless they are invested in companies insulated by restrictions on the recreational markets. Those US companies being: Construction for Cultivation, manufacturers of products, companies monetizing industrial Hemp’s many uses, CBD manufacturers, technology & media services (like us).

    One of the highly anticipated events of 2017 is the tabling of legislation as it relates to a legal recreational cannabis program in Canada. This development is expected to take place in the Spring.

    During December, a federal task force released its long-awaited recommendations relating to the legalization of recreational marijuana. The report was prepared by a committee comprised of nine members who have worked together since June.

    All Eyes on Legislation this Spring

    When Canada legalizes recreational marijuana, demand is going to increase significantly, however it will take time for the program to be up and running. For this reason, Canadian licensed medical cannabis producers have been aggressively raising capital to make acquisitions and to increase production capacity.

    One of the largest fundamental changes within the Canadian cannabis sector over the last year relates to the amount of capital entering the industry as well as the source of the capital. The capital entering the industry is not only larger but smarter too; these investors and firms are long-term holders that see the bigger picture.

    Five Opportunities to Watch

    The Canadian cannabis industry has continued to be a bright spot for cannabis investors and 2017 has already provided investors with strong investment returns.

    This sub-sector of the cannabis industry has been on fire since July 2016 and the increased interest has been fueled by anticipation of Canada becoming the first G-7 nation to legalize recreational cannabis.

    Although the Canadian cannabis industry offers investors a lot of opportunity, it does not come without risk. Many of the companies levered to this sector have seen a significant rally over the last six months while some have not fared as well.

    We want highlight five Canadian cannabis stocks that should be on every investors radar. From

    The Green Organic Dutchman’s second round of financing closes today at 5pm and investors can still reach out to if they still want to access this opportunity.

    Terms of the offering are as follows: The company is selling units at $1.15 CAD per unit and the minimum purchase level is 5,000 units. Each unit consists of one common share and one full share purchase warrant. Each warrant provides the investor to purchase shares of The Green Organic Dutchman at $2.15 for the next two-years no matter what price the shares are trading at.

    The Green Organic Dutchman produces farm grown pharmaceutical grade organic cannabis. The company has differentiated itself from the competition by producing high-quality organic cannabis that sells for a higher price and has better profit margins. The company is led by a management team that has a proven track record of success with licensed Canadian medical cannabis producers such as OrganiGram and Emblem Corp.

    Aphria (APH.V: TSX Venture) (APHQF: OTC) has been one of the top performers this year and the shares are up approximately 30% YTD. The shares moved considerably higher after the company received conditional approval to up-list on the TSX exchange and we remain favorable on the company’ long-term outlook.

    In early February, Aphria announced a $50 million private placement at $5.00 a share and this transaction is expected to close this week. The company expects that 80% of the net proceeds will be allocated towards the currently unfunded portion of Part IV Expansion, with the balance being allocated towards strategic investments.

    The Part IV expansion will increase Aphria’s capacity from 300,000 to 1 million square feet. In addition, the company’s infrastructure will grow to over 250,000 square feet which is necessary to service the expected 70,000 kilograms of eventual annualized harvests. The project includes 700,000 square feet of Dutch style greenhouses, 230,000 square feet of infrastructure, including new Level 9 vaults, automation for all the greenhouses, processing areas, warehouse facilities, a 15 MW power and heat co-generation facility and security consistent with ACMPR standards.

    Aphria anticipates completion of Part IV within 12 months, Health Canada approvals within 4 months of completing the expansion and first harvest within 4 months after such approvals.

    In December 2016, Aphria invested $8.4 million in Canabo Medical Inc. (CMM.V: TSX Venture) (CAMDF: OTC) at $1.40 a share. Canabo is another stock we are very favorable as the shares trade at an almost 40% discount to the level at which Aphria invested at.

    Canabo owns and operates the largest line of medical cannabis clinics in Canada and we expect to see the company continue to expand its footprint across Canada.

    CMM.V is trading at $0.85 after the shares rallied more than 13% on above-average volume. We highlighted the company last month as an attractive opportunity and continue to see upside to current levels. The company’s United States symbol, CAMDF is trading below $0.67 after a 16.4% rally and we continue to see upside to these levels.

    PharmaCan Capital (MJN: TSX Venture) (PRMCF: OTC) has the top performing licensed Canadian medical cannabis producer this year and the shares are up 92.6% YTD. The company does business as Cronos Group and in 2016, it sold one of its properties to NYSE-traded Innovative Industrial Properties (IIPR).

    The shares were under pressure last week after the company announced a $15 million private placement at $2.25 a share. MJN.V quickly bounced back and rallied more than 40% over the few trading days.

    The company’s wholly-owned subsidiary, In The Zone, recently received approval from Health Canada to sell medical cannabis. This comes while its other wholly-owned subsidiary, Peace Naturals is positioned to capitalize on the recent medical cannabis legislation in Germany through its export relationship with Pedanios GmbH.

    Although the shares have recent run significantly higher, we have become increasingly favorable on the company over the last quarter and continue to monitor trading closely. Become a Technical420 Premium Member to keep up with our analysis.

    Canopy Growth Corp. (WEED.TO: TSX) (TWMJF: OTC) continues to be the Canadian medical cannabis leader and we view the company as one of the best long-term cannabis investments.

    The company recently completely the acquisition of Mettrum Health, which significant expanded its product line and led to a surge in revenue. The market did not initially respond favorable to Canopy earnings report and the shares recorded its largest drop of the year.

    During the quarter, Canopy Growth recorded $3 million in net income off $9.8 million in revenue and total revenue increased 15% when compared to the prior quarter and 180% when compared to the same period last year.

    During the quarter, the company sold 1,245 kilograms and kilogram equivalents at an average price of $7.36 per gram, up from 462 kilograms at an average price of $7.34 per gram during the prior year period.

    The company recorded strong growth on pretty much all metrics and as of December 31st , Canopy Growth reported to have over 29,000 registered patients which is more than 260% higher than the number of patients as of December 31, 2015.

    Canopy has recaptured most of its losses and we continue to remain favorable and monitor trading activity closely. WEED.TO recently traded into the $13.20 range and the shares are currently trading at $12.64. We remain favorable on Canopy Growth and this company should be on every cannabis investor radar screen.

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    Vinergy Resources/MJ BioPharma to Acquire 65% of Health Canada and FDA Licensed Laboratory to Pursue Drug Testing and Dosage of CBDs, THC and Terpenes

    Biolennia will provide a host of drug testing services to support MJ BioPharma’s product line and provide research and development (R&D), product formulation, extraction facilities, systems design and develop standard-operating-procedures (SOPs). The lab is currently in the process of applying for a Dealer’s License from Health Canada. Once issued the license will allow the Company to process cultivated cannabis (extracts and/or derivatives) for R&D purposes.

    Biolennia was founded in 2001 by Dean Swift as the internal R&D and quality testing laboratory to support Micrylium Laboratories Inc. (“Micrylium”). In 2002 it upgraded to a full active ingredient and microbial testing laboratory for several Health Canada approved products. Biolennia is a specialty development laboratory with expertise in Microbiology (bacteria, fungi, viruses), Chemistry (proteins, enzymes, drug testing, material science and analytics). The Laboratory currently provides testing, R&D and quality control for a proprietary line of Health Canada registered and approved industrial disinfectants and other consumer products on behalf of Micrlylium.

    Biolennia has in-house expertise in methods accepted by Health Canada and the Federal Drug Administration (FDA) for determining purity and quality of many of the materials and methods used in validating cannabis and or testing cannabis products. Biolennia brings a highly talented team of Microbiologists who are familiar with testing high purity water, ethanol, ethyl acetate, propylene glycol, xylitol, glycerine, propandiaol, d-limonene, myrcene, and beta caryophelline.

    The lab operates from a secure premises in Toronto, Ontario (Canada) alongside Micrylium which manufactures products registered under licensure from various agencies including: CE, FDA, EPA, Health Canada, Swiss BAG, and German VAH. MJ BioPharma will provide the proprietary line of disinfectant products, globally to the cannabis industry to ensure improved hygiene for cultivation facilities, nutrient hoses, labs, extraction systems, dry utensils and edibles manufacturing spaces.

    Under the terms of the acquisition Vinergy/MJ BioPharma will acquire 65% of Biolennia for CAD $260,000 and 150,000 shares of Vinergy at the time the definitive agreement is signed. The Company expects to close on the acquisition in Q1-2017.

    “This is a fantastic acquisition for us and supports our entire product line and R&D initiatives moving forward. Our technical expertise in drug testing, extractions, and formulas containing CBD, Terpene, THC and other botanicals is continually being furthered. We have a remarkable team. We feel strongly that science based products formulated from extracts and derivatives that are properly dosed and manufactured in GMP environments to ensure consistency and safety for all customers whether they be recreational or medical users, is the future of the cannabis industry,” MJ BioPharma CEO Kent A. Deuters.

    European Acquisition Update

    Based on early due diligence the Company has terminated its letter of intent announced February 02, 2017 to acquire up to 51% a European plant breeder.

    This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

    The CSE does not accept responsibility for the adequacy or accuracy of this release.

    Vinergy Resources Ltd.

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    Canadian licensed medical cannabis producers built off the momentum from Wednesday and benefited from this as it carried into Thursday’s trading session.

    These movements are significant because several of these stocks were under pressure on Tuesday and early Wednesday (post-Canopy Growth earnings).

    Investors should keep an eye on how this sub-sector continues to trade as we believe it is comprised of some of the highest quality opportunities for investors.

    We recapped some of these recent price movements and provided our updated thesis below:

    Canopy Growth Corp (WEED.TO: TSX) (TWMJF: OTC) recaptured most of its losses from Tuesday after the shares rallied 3.7% on above-average trading volume. We continue to view Canopy Growth as one of the top long-term cannabis investments due to its leading position in the Canadian medical cannabis market. Canopy Growth recently broke below the $10 level and investor should keep an eye on shares as we continue to see long-term upside to current levels.

    OrganiGram Holdings (OGI.V: TSX Venture) (OGRMF: OTC) saw a nice rally yesterday and we will monitor how this continues today. OGI and OGRMF rallied more than 5% and this was a nice change from the recent trend. We will provide updates on any significant price movements today. Stay tuned as we continue to hold cautiously.

    Emblem Corp. (EMC.V: TSX Venture) (EMMBF: OTC) continued to rally yesterday and the shares were one of the top performers as they also rallied more than 5%. EMC is trading at $4.17 while EMMBF trades near $3.20. We continue to hold as we are favorable on the long-term outlook. Emblem has a lock up coming up in March and we have started to receive questions about this. Although we expect this to cause a short-term dip, we do not expect it to last long and will keep an eye on any significant price movements leading up to this.

    Aurora Cannabis (ACB.V: TSX Venture) (ACBFF: OTC) ended the day up less than 2% and we continue to hold onto the shares. We have contemplated exiting this position and re-entering on weakness, however, we have not decided yet. The reason why we are questioning this holding is due to valuation. When you look at Aurora’s fully-diluted market cap, it is over $1 billion which is significant. We view the risk-reward scenario as balanced here and will keep you updated on how the shares move from here.

    Aphria (APH.V: TSX Venture) (APHQF: OTC) edged lower yesterday and this move followed an 18% rally over the last week. APHQF traded as high as $5.15 before ending the day at $4.97 and We continue to see upside to current levels but we may trim the size of our position because of the strength of the recent rally.

    CanniMed Therapeutics (CMED.TO: TSX) is trading at $11.95 after the shares edged slightly higher yesterday and we are on the sidelines at current levels. Although we are favorable on the company’s recent execution, the exchange it trades on, and its business model; we are cautious at these levels. We will keep you updated on how the shares trade from here

    Cronos Group (MJN.V) recaptured all its losses from Wednesday as the shares rallied approx. 8% yesterday. MJN.V is trading at $2.59 and we are on the sidelines at current levels. We were favorable on MJN after Wednesday’s dip and will monitor how the shares respond today. The company announced a bought deal this week at $2.25 a share and this has caused the shares to trade a little more volatile over the last two trading sessions.

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    Canadian cannabis leader Canopy Growth announced that it closed an approximately $7 million stock offering for the recently formed Canopy Health Innovations.

    Canopy Health is partly owned by Canopy Growth and private investors. The company operates as a pure research incubator whose mission is to increase the understanding of cannabis based therapies through research, to drive product innovation and to develop an intellectual property portfolio that can be built into commercial opportunities for Canopy Growth and its subsidiaries.

    Plans to Commence Clinical Research Studies

    Canopy Health will use the proceeds to establish general operations and begin clinical research into the effectiveness of clinically ready whole plant cannabis drug formulations and dose delivery systems on specific indications. The company will conduct clinical research in partnership with licensed third parties, including Canopy Growth.

    Canopy Growth CEO Bruce Linton said his intention with Canopy Health is to build an extension of the business that is dedicated to product specialization. By defining how to apply specific cannabis profiles and delivery systems to certain conditions, Canopy will be able to drive physician acceptance and grow the market at the same time.

    Pursuant to agreements between the companies, Canopy Growth will act as a primary supplier of cannabis products for clinical research. It will also act as a research partner through its Tweed Inc. subsidiary which recently acquired a Dealer’s License from Health Canada. This license allows Tweed to possess cannabis and cannabis by-products for the purposes of analytical testing. It also allows the company to use these products for the commercialization of intellectual property by Canopy Health.

    Canopy Hires a Founding President and Director

    Canopy Growth (CGC.TO) (TWMJF) also announced that Marc Wayne will join Canopy Health as its founding President and Director. Wayne is thought of as a pioneer in the Canadian medical cannabis field having co-founded Bedrocan Canada and serving as its founding Chair.

    Wayne played a key role in helping develop the Canadian Consortium for the Investigation of Cannabinoids and turning it into a global innovator in education and research on the medical uses of cannabis. Effective upon the closing of the offering, Wayne resigned from his position as Managing Director of Canopy Growth Corp and as President of Bedrocan Canada Inc.

    Completes $60 Million Capital Raise

    This morning, Canopy Growth announced that it closed its previously announced $60+ million capital raise at $10.60 a share. The offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. and Dundee Capital Partners, and including Cormark Securities, PI Financial, and Canaccord Genuity .

    Canopy Growth intends to use the proceeds for potential real estate acquisitions and fit-up of growing operations at such locations. In the event such potential acquisitions are not completed, a majority of the funds will be used to expand capacity at its existing sites over the next 12 months. Additionally, the company expects to incur international development expenditures of approximately $2,000,000 primarily to further explore and develop international market opportunities where federally legal to do so.

    The balance of the net proceeds will be used for general working capital purposes, such as potential acquisitions for both capacity and brand augmentation and related integration, and developing new product offerings. The company may reallocate these funds as market and regulatory indicators warrant in light of the anticipated legalization of a national recreational cannabis market and the ACMPR.

    An Emerging Trend

    Over the last quarter, we have noticed a trend in the emerging Canadian cannabis industry where licensed producers are significantly increasing their focus on the development of cannabis drug formulations and dose delivery systems for specific ailments and debilitating illnesses.

    Earlier this month, Emblem Corp (EMC.V) (EMMBF) commenced trading on the TSX venture exchange after a very successful initial public offering. The company is comprised of three distinct divisions. One of the company’s divisions is Emblem Pharmaceuticals and it is focused on pioneering the next generation of Canadian medical cannabis by providing medication in standard pharmaceutical dosage formats.

    Emblem Pharmaceuticals is a very attractive aspect of the business as it offers investors leverage to not only the legal cannabis market but also the cannabis pharmaceutical market.

    In the second quarter of 2017, Emblem Pharmaceuticals President John Stewart will lead the launch of cannabinoid-based medications in customary pharmaceutical dosage forms such as liquids, gel caps, oral sprays, and inhalers.

    Stewart has over 30 years experience developing and commercializing pharmaceutical products. He has launched 11 new products, including OxyContin, and was the worldwide President and CEO of Purdue Pharma, the largest privately held pharmaceutical company in the world.

    Since inception, management has invested over $6 million in the company and executed flawlessly on the business plan to create a production facility that offers premium products. We are very excited about Emblem’s opportunity within the pharmaceutical market of the cannabis industry on account of its best-in-class leadership, its state-of-the-art production facility and its continued execution.

    Important Investor Disclosures

    Disclosure. Compensated Affiliate. This report was authored by and is property of StoneBridge Partners LLC. All information and data relied upon in drafting this report is publicly available. The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report. Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice. Any projections or other information generated by StoneBridge Partners LLC regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment. This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation. The securities discussed in this report may not be eligible for purchase and/or sale in certain jurisdictions or by particular individuals. It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction. Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks. The securities of non-United States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission. Please contact a Financial Advisor for professional advice regarding any and all securities investments. This report is intended for informational purposes only. StoneBridge Partners LLC’s officers, directors, employees, affiliates, or subsidiaries may have positions in securities covered by StoneBridge Partners LLC. StoneBridge Partners LLC receives compensation from the company and/or has a position in the securities mentioned in this report


    Authored By: Michael Berger

    To read more from Michael Berger’s take on Biotech companies read this

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