The North American Marijuana Index rose on Monday, with pot stocks benefitting from the surprise announcement that Canadian supermarket giant Loblaws was approved to sell recreational cannabis in the province of Newfoundland and Labrador. In total, The Loblaw Company was said to have gained the rights to ten out of 24 total sites approved by the province in the current round of licensing. While most experts understood the company to be entering into the medical cannabis sector, many were shocked to find them securing a position in the recreational space as well.
As The Financial Post reported earlier, sales will take place just outside of the company’s grocery stores within designated tobacco shops. “It would be available behind the counter, in small, existing tobacco shops, adjacent but separate to our Dominion grocery stores,” Company spokeswoman Catherine Thomas noted in a statement.
The Index rose 6.43 points, or 2.70 percent, to close out the day at 244.74, with the United States Marijuana Index gaining 2.63 percent and the Canadian Marijuana Index jumping 2.86 percent.
Meanwhile, stateside Congressman Earl Blumenauer’s (D-Oregon) office put out a statement condemning the Small Business Administration (SBA) for their recent move to deny loans to state-legal cannabis businesses and the companies with which they do business. Calling the cannabis industry “a core part of the economy in Oregon and dozens of other states” Blumenauer pressed SBA head, Linda McMahon, to repeal the guidelines as a way of preventing further economic harm to cannabis-friendly states.
Wall Street gained on Monday as oil prices and Apple both helped fuel a surge in stocks, with Apple showing its sixth straight day of gains. The S&P Energy Index rose, although early gains were pared as President Trump tweeted he would make a decision on withdrawing from the Iran nuclear deal by tomorrow, giving some investors pause.
“Oil has done well in anticipation of the announcement from Trump. People are braced for the worst,” said Keith Lerner, chief market strategist at SunTrust Advisory Services in an interview with Reuters.
The Dow Jones Industrial Average rose 0.39 percent to end the day at 24,357.32, while the S&P 500 rose 0.35 percent to close out the day at 2,672.63. Similarly, the Nasdaq Composite rose 0.77 percent to end Monday at 7,265.21. At one point early in the day, the S&P 500 gained nearly 0.75 percent.
The Horizons Marijuana Life Sciences ETF (HMMJ.TO) rose CAD$0.30 per share, an increase of 1.83 percent to close out the day at CAD$16.73 and the Evolve Marijuana ETF (SEED.TO) jumped CAD$0.06 per share, or 0.37 percent to end the day at CAD$16.47.
Scythian And Isodiol Partnership
Research and development company Scythian Biosciences Corp. (TSXV:SCYB) announced on Monday an agreement with cannabidiol (CBD) leader Isodiol International Inc. (CSE:ISOL). Scythian will import and distribute Isodiol products in the Caribbean, Central America, and South America, including to the countries of Argentina, Colombia, and Jamaica. The five-year agreement also sees Scythian investing $2 million into Isodiol in exchange for 2,739,726 units consisting of one common share and one whole Common Share purchase warrant.
“Scythian shares Isodiol’s commitment to developing the purest and most advanced medical cannabis products for patients in need,” remarked Rob Reid, CEO of Scythian in a statement. “On the heels of Isodiol’s milestone approval by the United Kingdom’s Medicines and Healthcare Products Regulatory Agency, we’re proud to be able to tap into Isodiol’s experienced, top-tier team of chemists, technicians and professors that yield the purest government-approved CBD oil available for the advancement of the industry’s understanding and application of medical cannabis.”
Tweed announced the location of a new production facility and four retail stores in the province of Newfoundland and Labrador… The Hydropothecary Corporation (TSX-VENTURE:THCX) is hosting an investor day in New York on May 16… Namaste Technologies Inc. (TSXV:N) (OTCMKTS:NXTTF) signed an exclusive drop-shipping supply agreement with Ample Organics Inc.
Capital Ideas TV And The Executive Conversations
Watch as Capital Ideas TV interviews the CEO’s of Aphria Inc. (TSX:APH), Namaste Technologies (TSXV:N) and Invictus MD (TSXV:GENE), discussing the details of each individual company with this diverse group of executives: