Originally published February 5, 2021 on www.TheCannalysts.ca
Having sat through a cannabis gold rush before, and the ensuing fallout, we have some thoughts on the sequel to 2017-18.
The level of “loud voices” is growing louder. And lord, some of the loudest and most bombastic could not find an MDA if their life depended on it. (And that isn’t a euphemism, that happened yesterday with an argumentative and opinionated loud voice on social media).
“Buy this”… because I own it. “Here are the reasons (the company) says I should invest in (the company) ….”
“Don’t buy that”… because I don’t own it. “Here are the hot takes that I have decided to parrot from others in social media”.
Molly laid out a warning yesterday about the level of noise and bullshit investors are being bombarded with on our subReddit yesterday. Great reading!
We are in a hype environment. Fundamentals of companies have not changed dramatically but the perception has. The regulatory landscape is now more welcoming in USA, but still very much unknown as to final state and timing.
Interestingly, those chiming in on how a Republican Senate would allow “moat building” are now full-on “legalization is coming, let’s dance in the streets!”.
States will be allowed to do their thing within their borders, pretty much as they have been. But if you want your product to cross a border it will have to abide by Federal rules when dropped and operationalized. (Medical has preceded recreational in almost all jurisdictions, and the thinking is it will in US federal too). Should this happen it will impact cultivators and processors more than retail shops.
Retail shops may have their own issues. “Social Justice” issues have held up Illinois rollout, and it will be interesting to see what federal views (FDA), legislation and state response are to the Democrat lead initiatives.
Do fundamentals matter? Not right now. When the tide goes out, they will.
In Canada, we have two money incinerating companies back stopped by strategic cash. Neither has shown much in the way of operating efficiency/competency. Yet, investors are assured that this time Daddy took the keys, or the oversight is better now. Oversight was the same as the day the cheque from the strategic investor cleared and their proxies installed on the board and in the c-suite. Until signs of change manifest in the financial statements it is all words. The HOPE of being profitable in the US of A, and the big cash balance they can deploy, seems to suffocate thoughts of past stumbles and ongoing ineptitude.
One of the lone company’s to be showing promise has to buy sales to keep their facilities churning at levels to keep them +EBITDA. You can talk about synergies, Europe, CPG extensions, but the bottom line is they (and many others) built too large of a footprint for Canada and exports. Hindsight is 20-20.
The next group of Candian companies have diluted the crap out of investors and have yet to stem the bleeding. This latest stock price surge has allowed a new load of cash to come in. The i-banks have unloaded on retail yet again. And retail fell for it, yet again.
Zombies will be staggering around even longer now. Much to my chagrin. It isn’t fun spreading crap and finding bodies under the rug.
TheCannalysts believe rec sales are stalling (listen to the next Inside the Ropes, we go through it). The last big “catalyst” was the ramp to 80 stores a month in Ontario. A drop in January (potentially double digits) after a likely reasonable December holiday buying season is a possibility. A 28-day February follows. The media will likely not differentiate that the $ drop is due to three less days than January (which is one of the reasons we run the daily purchases metric). Back-to-back monthly “decreases” could spook investors.
We might not see an uptick in Canada until March, which will be reported in late May by StatsCan, but those March quarter ends will tell the story by mid May. (Canopy year end is March 31, so financials will drop by end of June). Aphria Feb 28 Q, due by mid April, will include SweetWater revenue. This might occlude a soft to negative Canadian recreational figure with December sell in compensating for soft mid to end quarter sales. The Ontario covid December through February and counting lockdown ennui, limiting retailers to click and collect and delivery, might provide further headwinds.
IF that happens, what will happen with perception on the Canadian names?
The US is different, in that the companies’ viability is further along than in Canada. But does the viability support the stock price? What needs to happen that is not within the companies control for them to support the price? Will regulatory meteors strike, like they have in Canada. (Hey, New York state is on its third year of “this year we are legalizing”). Have founders ensconced themselves with long dated warrants and options?
(An aside… Molly and I have been discussing the impact of long dated in the money warrants and options. It is interesting to note if a company issues a convertible debenture and the strike is in the money, the company reacts quickly to take the further increases to the debt holder – who has funded the operations – off the board. But when the same c-suite, entrenched by multi voting super shares to ensure matters of control, are deep in the money -off the backs of new shareholders and paid out converts – there’s a lack of the same urgency (I dropped a Q on Molly unannounced on the latest Inside the Ropes – which is in edit – on the subject).
But you are saying: “Blue, that’s fundamentals. It doesn’t matter.”
Agreed, right now it doesn’t. Not one lick. You know how I can tell? The flotsam and jetsam of Canada and US cannabis are ALL rising.
In the USA there are going to be Harvest One, Maricann, RavenQuest, CannTrust, Aleafia Health, WeedMD, Hexo, Organigram, VFF, Supreme, Sundial … type of companies. There are going to be Aphria’s, Aurora’s, Canopy’s and Cronos’. And there will be better ones too.
Every flavour you can imagine.
Molly’s slog through Tier 3 operators confirms that the US has its share of slugs. And those slugs’ stock prices are also benefiting right now.
We harp on fundamentals. This a “fundamental” store. If you are looking for technical analysis, you are in the wrong spot. In the short term the best fundamentals may not equate to the best stock price.
Our subReddit Community members hated when we harped on the operating metrics of Aurora and Canopy in 2017-2019. The outcries were loud and often…
Wait until rec!
Wait until 2.0 formats launch!
Wait until Ontario opens more stores!
We are in 2021, third year of adult use, they are still trying to get their Canadian operations fixed. (I was chuckling with Molly and Cyto the other day upon reading comment upon comment of “my faith in (insert company here) has paid off” when said company has delivered a Golden Sombrero or even a Platinum Sombrero of negative gross margins.)
Others hated that we “favoured” Aphria operationally. (We certainly favour good operators, regardless whose name is on the masthead. Numbers and trends speak to us.) Operationally they have outperformed a very weak peer group.
Canada is like Triple AAA sports (Major Junior Hockey for us Canadians or NCAA football and basketball). A great player in Triple AAA might go on to be Hall of Famer, might be average or a flop. Only time will tell. Some, by virtue of being a high draft pick and a big signing bonus (think… those who got strategic money), will get a shot at the majors given they have been invested in. But generally, a dog in Triple AAA becomes a dog in the majors, if they get there. They could be “coached up” but those that need coaching up after being a high draft pick probably have some missing ingredients, or had some blemishes that were apparent yet overlooked when they were younger.
Did Aphria and Tilray double their stock price (insert every other Canadian company and their increase) in two months because of fundamentals? Hell no! They are riding a wave. The questions become: how much higher is the wave AND how far out will the water level recede?
Big bets. Big risk. Big returns or Big bags?
In a hype market, retail investors seem to be oblivious to the difference between fundamentals and hype. You can make a lot of money in a hype market. Thinking you are a genius because you hit the lottery seems to be common theme for retail investors.
But when that crazy hype cools, and the tide goes out, we see that folks get very uncomfortable in their positions that they were previously boldly trumpeting their “unrealized gains”.
Aphria was three years between $20 stock prices. And if you account for dilution, Aphria is not yet at the 2018 $20. Three years is forever for many. And I can say that I am surprised how quickly it climbed (and that goes for most of the Canadian industry).
I have scaled down my Aphria position rather substantially from its peak and still hold an oversized chunk. BUT, when hype overran my comfort zone, I sold in January 2018 and took out my entire initial investment and let the unrealized gains ride. I rebuilt the same number of units just shy of what I sold on de-risking events through 2018-2020, all but one purchase sub C$8.50. I have sold that accumulation and then some. I am three years closer to retirement right now, thus that, coupled with knowledge gleaned since the start of this journey in March 2016, has me more cautious now.
I have set stop losses for more units, but I am willing to let a portion ride. That is a benefit of being in at a low price. Would I add here? Not a chance.
For those riding the USA wave. Change takes time. Legislation takes time. Sometimes you get stupid regulations (I am looking at you Health Canada and most of the provinces) that hobble progress.
In Canada it took from 2015 to October 2018 from Trudeau being elected to first legal gram sold. The USA, at the federal level, will likely take that much time to implement.
This is not a “set and forget” industry to invest in. “If you believe in the industry just jump in” is the biggest load of horseshit out there.
I hold around 30 Blue Chips, a few in each sector. I have started selectively adding from my cash position after a long hiatus, save for a March 2020 sector rotation. My target right now, solid performers who should do well in the continuing covid environment.
I do a hundred times more due diligence on weed stocks than I do on my Blue Chips.
But as I always harp… my reality is not yours. My portfolio, age and risk appetite are very likely not yours. And they certainly are not the wallstreetbets gamblers reality.
Right now, putting new money at risk comes with a lot of uncertainty. In the cannabis sector or any other overheated sectors.
Don’t get me wrong. We want you to be rich and successful. If your “at risk funds” stress you out while the market is going up, they will be a load if it should go south. Cannabis investing can change your life for good as well as for bad. I witnessed in 2018 an entrepreneur who went all in Aphria at $12-14, after selling his business that he built over decades, bailed at a loss, loaded into Cronos and it dropped… I wonder how he is doing. He went from the biggest cheerleader to very very bitter in a very short time.
Know what is unknown. There are going to be a ton of opinions on the “unknown”, and in the current environment those opinions are leaning on heavily bullish scenarios. Don’t get in over your head. As I don’t know if I can take three years of pissing and moaning, again. The couch got worn out last time.
And, slowly circling back to the title of the post … I was lucky (stock rebounded faster than I thought possible), knowledgeable (I baby sit my cannabis investment like an eagle on a nest. I know what is in the financials and MDA because of the level of analysis we do), I de-risked (when hype overran fundamentals in 2018 I took out my initial investment, and sold again now as the merger, combined debt, need for dilution, slowing of sales has me wickedly thankful for a $20 exit on a portion of my position), I reloaded as events de-risked (as Aphria was stringing “Progress Quarters” together and de-risking events like Diamond license happened), I was patient (but Progress Quarters allowed that to happen), and importantly early.
Best of luck to all.
The preceding is the opinion of the author and is in no way intended to be a recommendation to buy or sell any security or derivative. The author has a position in Aphria and will not start one or divest (EXCEPT FOR IN PLACE STOP LOSS) in the next five days. The author has no position in any of the other mentioned companies and will not start one or divest in the next five days.

Let's look back at some memorable moments and interesting insights from last year.
Your top 10 posts:

• "Adult Use Vape Carts For Sale In Alberta (Currently Sold Out)" by u/IvanSkavar
• "I guess outdoor harvest is underway..." by u/IvanSkavar
• "Aleafia clears $9,846,364 from Aphria settlement (give or take $3,600,000)." by u/IvanSkavar
• "Aleafia Health Launches Cannabis 2.0 Portfolio with 510 Vape Cartridges Featuring Unique Formulations" by u/RadMoney1
• "Aleafia staying conservative" by u/fed09
• "Dearth of medical coverage / Research may be the only way forward" by u/IvanSkavar
• "Cloudbuster 5mg THC (I'm a lightweight) - More weed/THC-flavoured than the CBD 10mg which was pure peppermint. Started working in 10 minutes, slow start and peaked at 2 hours, lasting about 4. Good stuff, especially for $2.75 a pop (medical). Great packaging for carrying in a pocket or wallet." by u/IvanSkavar
• "Aleafia Health Approved by Janssen Pharmaceuticals to Administer Antidepressant SPRAVATO®" by u/Czech_pivo
• "Aleafia Health Secures Health Canada Licence Amendment for Port Perry 60 Acre Outdoor Cultivation Expansion" by u/RadMoney1
• "Aleafia Health Reports Fourth Quarter and Year-End Results" by u/gkmackdadzzz1

Why go medical when the market is shrinking right? There are less medical patients as of June/2020 (303,221 patients) than there were back in April/2018 (307,397 patients).
Those people seeking medical documents did so for a couple of reasons. A huge chunk were people who just wanted a legal way to get their mitts on some weed. However, I think a big one was to actually get their medicine. Hence why there are still ~300,000 people using that route.
For a select few, it’s even covered by their insurance.
Well with few covered by insurance, and cheap recreational options, why pursue the niche medical market?
~
Perhaps there will be other way of increasing availability of funding/coverage for medical cannabis sooner than we think...
“Cannabis Catalyst in Canada are running thin ... the next big news is that the biggest Unions in Canada are entering the fray ... it began w/ LiUNA & $WMD therefore I fully expect the Ontario Teachers Union & Autoworker Unions like Unifor to start dipping their toes.”
BettingBruiser is not always right, but he often is.
~
Let’s take a look at Unifor:
It represents ~310,000 members in Canada.
There’s been a bit of chatter from some of their locals on cannabis coverage:
“President of Unifor Local 444 Dave Cassidy told BlackburnNews.com some of his members have also raised the issue of offering coverage for things like CBD oil.”
Unifor as a whole previously did a deal with Sunniva in 2019 to send Unifor members to Sunniva’s clinics. But now Sunniva is defunct and is in CCAA proceedings.
Unifor’s latest round of bargaining reports all make mention of cannabis. From the one with Ford:
“Annual limit of $500 where prescribed by physician due to illness or medical condition. Following conditions need to be met prior to approval: Age 25 or over; suffering from chronic neuropathic pain or spasticity due to MS or nausea due to chemotherapy, and deemed last resort treatment for above.”
So currently not really an amazing prospect of revenue. But if coverage were to change, having a group ready to use your products wouldn’t hurt.

In the Q4-2019 conference call a few things were stated that show some promise for Q1-2020 and going forward.
~

• "In this Q1 2020 to date, we have sold an additional approximate 4,000 kilos and will continue -- and continue to consider additional transactions."'

Aleafia had a wholesale contract at $2.50/g to be finished delivery by January/31/2020 with a remaining 1,718kg on it, totalling $4,295,000 in revenue. That leaves another ~2,282kg that they had sold as of the date of the release of financials (March/18/2020). So did they sell it at $2.50/g? No indication either way, but with more and more producers dropping off the map and being unprofitable being able to grow and sell their own, it seems like that wholesale price wouldn't have dropped all that much.
A lot of the cannabis that is currently on the books for many LPs has been there for a looong time and is likely unsaleable at this point. So there probably is a constraint on supply to some extent.
~

• "Certain top-selling medical products were stuck between November and early February due to a lack of raw input material. The successful outdoor harvest helped rectify this, and we now have built medical inventory. Now that we finally have sufficient inventory, we have reallocated resources towards expanding our medical sales team. There is substantial room for growth in medical sales through both attracting new registered patients and increasing revenue per patient."

Though total Canadian medical patient count growth had slowed (not stopped) since legalization, as of Sept/2019 there were still 369,614 total patients. Aleafia had shown a complete stalling and actual loss of patients from Q3-2019 (10,298) to Q4-2019 (10,249). Was it due to shortage of product that has now been remedied? Time will tell.
Just in March Aleafia hired a new VP Sales and Business Development, Raffaele Spadafora, who had initially shown promise in his time at Tilray (though Tilray's focus has switched to recreational), and has a decent resume. I doubt we'll see the effects in any immediate time frame (not in Q1-2020 anyway). Where is Kesara Wellness and Well & Ness (this image is from their May/2019 investor presentation) when you need them?
~
Sitting waiting wishing over here. Looks like Q1 probably won't be saving the day, though it will likely be decidedly better than this last Q4. Rec sales couldn't have decreased again, could they?

​

	Q3-2019	Q4-2019 (Guesstimates)
Canadian Recreational	$2,152,000	$2,152,000
Canadian Medical	$1,450,000	$2,000,000
Consultation Services	$714,808	$714,808
Research	$417,755	$417,755
Canadian Wholesale	$224,000	$2,366,666
FoliEdge Academy	-	$0
One Plant	-	$0
International CannaPacific	-	$0
International Montu Brands	-	$0
International Acnos Pharma	-	$0
Total Revenue	$4,958,563	$7,651,229
Total Expenses	$8,459,697	?
The Gap to Profitability	$3,501,134	?

Canadian Rec - Assuming remaining at least constant, what with all the new retail store openings and specifically of new F&F stores. Symbl (Aleafia's only rec brand currently) has been modestly to decently stocked across the OCS, as well as AlbertaCannabis the BCCannabisStore, and is being sold in Saskatchewan. Could be a bit more, though not expecting less.
Canadian Medical - At end of Q3 Emblem had 10,298 (up 48% from 6,959 at end of Q2). Guessing they've continued at a health clip, this partnered with Emblem price drops in December, should continue to show growth.
Consultation - Assumed constant. Was an average of $713,814 over last 3 quarters.
Research - Assumed constant. Was an average of $468,195 over last 3 quarters.
Canadian Wholesale - Aleafia announced a wholesale dried flower sale of $7,100,000 on Dec/2/2019, to be shipped in "up to three shipments, all of which will be completed before January 31, 2020." I'm assuming 1/3 of this will have happened prior to Dec/31/2019. Could have been more or less.
FoliEdge Academy - I've assumed $0 here, though there could be something here per the courses available Dec/9/2019.
One Plant - I've assumed $0 here, as the first One Plant store opened (Stouffville) on Dec/30/2019, and then the 2nd (Barrie) on Jan/7/2020. As well, at some point in early 2020 Smok Cannabis (Ajax) officially became a One Plant location. Hopefully will see some revenue starting here in Q1-2020.
*** I've been made aware that businesses do not report income unless they own 50% of a business. So One Plant wouldn't show up either way. Not sure of the nitty gritty on that revenue.
CannaPacific - I've assumed $0 here, but on Sept/24/2019 Aleafia announced "the first prescription from a physician for an Aleafia Health product was written earlier this month", but didn't mention it in their financials. Could be popping up as early as Q4.
Montu Brands - I've assumed $0 here, as the deal with Montu was announced Nov/28/2019 with the caveat that "the shipment is expected to be completed in late 2019, following receipt of necessary Health Canada export permits." No news on this since.
Acnos Pharma - I've assumed $0 here, since Aleafia is not yet EU-GMP certified. They only submitted their Site Evidence Package (SEP) to have their Paris license amended for Phase 2 on Nov/14/2019 - and that's just for Health Canada to get it up and running in the first place. It is "“purpose-built to meet European Union Good Manufacturing Practices (“EU-GMP”) certification requirements.” Nothing has been mentioned regarding EU GMP since. Looking at examples around the industry, specifically Aphria, their site was inspected June/16/2019 and approved EU GMP on January/21/2020. That's a 7 month wait. So again, not expecting revenue there for a little while.
~
Would love to hear anyone else's take.

(Disclosure - I have no idea if Aleafia is backing off of dried cannabis - this is simply a description of why it might make sense).
​
There's been a big question mark around Symbl's continued supply of it's dried cannabis products (where are they?). "Why is there not more focus on the flower?"
They are medically focused, and combustible cannabis is out the window for medical. Smoking = bad.
However, there is another, perhaps more pertinent reason. MONEY. I say "forget flower".
​
Here's an outlay of what Emblem's High THC cannabis products sell for (see below for math):

Form	Price Per Gram	Price Per KG
Dried - MED/REC	$8 -> $11	$8,000 -> $11,000
Oil (20mg/ml THC) - MED/REC	$12.8 -> $27	$12,800 -> $27,000
Oral Sprays (25mg/mL THC) -MED/REC	$16.6 -> $24	$16,000 -> $24,000
Capsules (6mg THC per cap) - MED	$39 -> $41	$39,000 -> $41,000

I'm just looking at THC, CBD would come into play in the extraction and I don't know exact cost of that.
International prices are even higher in Europe. Remember the more refined it gets as a medication, the more it actually will be used as a medication and priced as such.
​
~
​
Here's a review of the Canadian inventory levels for cannabis to give an idea of what the market as a whole is up to. A lot of companies are moving toward oil.
Keep in mind that a lot of that dried inventory is earmarked for eventual oil production as well.

Month	Dried Cannabis Sales (KG)	Total Cannabis Inventory -Finished + Unfinished (KG)
Oct 2018	6,346	115,303
Nov 2018	7,285	117,731
Dec 2018	7,600	130,633
Jan 2019	7,307	137,802
Feb 2019	6,683	143,814
Mar 2019	7,626	174,519
Apr 2019	8,874	214,198
May 2019	9,524	262,420
June 2019	9,976	312,251

​

Month	Cannabis Sales (L)	Total Cannabis Oil Inventory -Finished + Unfinished (L)
Oct 2018	6,241	50,828
Nov 2018	7,393	60,669
Dec 2018	7,818	69,931
Jan 2019	7,943	83,933
Feb 2019	7,270	96,378
Mar 2019	7,921	102,312
Apr 2019	8,202	119,883
May 2019	9,816	127,880
June 2019	9,614	141,181

https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/licensed-producers/market-data/supply-demand.html
https://www150.statcan.gc.ca/n1/daily-quotidien/190410/t002c-eng.htm
​
Maths:
C02 extraction efficiency has been quoted at around 78%. Or for every gram of 20% THC dried flower that is extracted there will be 0.156g of THC recovered.
Symbl dried cannabis sells at ~$8 -> $11/g ($8,000 -> $11,000/kg)
~
Symbl's 20mg/mL THC oil (20mg/mL - 30mL).
It contains 600mg THC. That works out to about 3.9g of dried flower used to make this product. It sells for ~$106 on the OCS, ~$50 in AB, and ~$75 in BC.
That range for oils is from ~$12.8/g -> ~$27/g (~$12,800/kg -> ~$27,000/kg)
~
Symbl Atmosphere THC oral spray (25mg/mL- 15mL).
It contains 300mg THC. That works out to about 2.4g of dried flower used to make this product. It sells for ~$58 on on the OCS, $50 in AB, and I believe when it was available it was ~$40 in BC.
That range for oral sprays is from $16.6/g -> $24.1/g (~$16,600/kg -> $24,166/kg)

Webcast Link - and Transcript on Seeking Alpha
4:02: Referring to medical sales: "From June to July, our order count increased by 165%." Then much later in the call...” I think we've already surpassed our Q2 medical sales this quarter.”
Have to wait another quarter to see the full effect here. But I imagine that July 20th price cut had a lot to do with this. If they can double their med sales that can’t hurt.
​
6:01: "Previously, all cannabis sold by Aleafia Health was wholesaled to other licensed producers. This quarter, in contrast, saw 100% percent of revenues from the sale of cannabis go to high margin medical or adult use markets."
They don't break it down into medical and recreational sales this time, so we're left a bit in the dark as to what's what. But we do know that so far they're cutting ties with that CannTrust supply agreement.
​
9:28: 3 questions are asked during the question period: 1.) Aphria Supply Agreement update, 2.) When will supply from outdoor and Niagara produce revenue, and 3.) Prospective margins.
The answers left something to be desired. But who asked them is what's interesting. Arron Grey (linkedin link) was hired March 6 2019 by A.G.P./Alliance. They said he "further cements our position in the Consumer and Cannabis sectors."
Since being hired March 6th, Aaron Grey has initiated coverage on:
Canopy Growth;
Tilray;
and was also on Village Farm's conference call today, as well as GrowGeneration's May 7th.
I believe he is also covering KushCo.
He's on webcasts to ask those questions for a reason. Coverage could possibly soon follow.

Canabo's Dr. Neil Smith had specifically stated that this is Aleafia's plan. They have their own network of clinics set up to run clinical trials at a fraction of the cost of the traditional method.
Aleafia has partnerships with German company Acnos to distribute medications for clinical trials.
Also their partner CannaPacific states they have "a robust clinical trial pathway", and Aleafia has already started sending cannabis oils to Australia.
They have a Product Data Science Fellow, Dr. Graham Merry, who's sole job is to "lead Aleafia Health’s ongoing medical cannabis research".
This is what they mean when they say they are medically focused. No one seems to notice or care but there it is.

~
After contacting WSIB for their numbers back in November 2019, and receiving this report, I learned something interesting and frankly not surprising. Not many people are having the medical cannabis covered by insurance.
This shows that the average amount paid out per prescription quite high at $700/month.
Per the most recent Health Canada numbers) the average medical cannabis user uses 2g/day. So at 60g per month x $10/g = $600/month. Real medical patients - as in the ones who can currently get insurance coverage due to their real medical conditions are few and far between, but may use more cannabis than the average medical user. Makes sense.
~
Here's a summary of that report:

G/L Year	Unique Claim Count	Prescription Count	Amount Paid	Avg. Amount Paid
March	33	171	$80,521.85	$465.44
April	25	48	$50,812.28	$1,058.59
May	23	61	$41,267.52	$665.61
June	27	72	$66,113.76	$893.43
July	32	103	$81,065.62	$779.48
August	30	76	$62,767.28	$804.71
September	30	73	$44,528.86	$601.74

~
That's a total of at most a few hundred (hard to interpret these numbers - are they cumulative?) out of 187,444 Ontario medical cannabis patients as of Sept/2019.
Most important to note is that WSIB operates in Ontario, and covers over 5,600,000 people. The real shocker here is the fact that SO FEW PEOPLE ARE BEING COVERED.
Why?
The entire industry is basing coverage off of the College of Family Physicians of Canada (CFPC)'s guidelines. There's some more detail on that right here.
~
To add fuel to this lack of support for medical cannabis amongst physicians, in Dec/2019 this article was published in the College of Family Physicians of Canada: Cannabis industry and medical cannabis clinics need regulation. It states:
"The evidence for medical cannabis is very limited, and its harms are substantial. Health Canada should require the industry to produce an evidence-based product monograph listing the indications, contraindications, and dosing of cannabis."
and goes on to further recommend:
"Family physicians should only prescribe cannabis to patients with neuropathic pain, at a maximum dose of 400 mg per day with 9% THC and an equal amount of cannabidiol."
While this development is not exactly a warm welcome, it is at least an acknowledgement that medical cannabis is being noticed and addressed by many more who have the power to prescribe it.
~
There is no big push from physicians (that I'm aware of) to increase coverage currently. Save for from those with a passion for cannabis. Enter all those working to provide research and hard facts to the medical community. That includes Aleafia's very own Dr. Michael Verbora and Aleafia Labs. Haven't received any update on Aleafia Labs since these news releases:
October 29 2018 - Aleafia to Launch Cannabis R&D Division Aleafia Labs
October 30 2018 - Aleafia Labs Partners on Cannabinoid Pharmacogenetics Study
February 4 2019 - Aleafia Health to Accelerate Research Division with Appointment of Product Data Science Fellow
February 15 2019 - Aleafia Health Announces new President of Clinic Operations
​
There was also of course the two studies they released in 2019:
January 25 2019 - Aleafia Health Study Indicates 45% of Patients End Benzodiazepine Use Following Medical Cannabis Treatment
March 18 2019 - Aleafia Health Funded Study Finds Increase in Employment Among Epileptic Medical Cannabis Patients
~
Nothing new posted from either Aleafia, Aleafia Labs or Canabo on sagepub or the Health Canada Clinical Trial Database but I'll be keeping an eye out. Would love to hear more about what they are working on and will share it if I learn of anything (though I'm sure we'll all hear at once).

OnePlant confirming that they are partnered with the Ajax "Smok Cannabis".
​
https://www.instagram.com/p/Bz8nTF5B5LQ/
​
Q: Do you have a partnership with Smok Cannabis in Ajax, ON?
A: yes we do.
Q: Hey all. Any chance your partnership with Aleafia means any of these products will be coming to Ontario Canada?
A: yes we are in the process of bringing all @oneplantlife brands to Canada soon
​
The Smok Cannabis website is currently a placeholder, so we can't peruse their catalogue yet.
​
Four of OnePlant's eleven brands are already registered to various companies in Canada. No others have been registered since that post.

Marijuana & Cannabis Stocks (Complete List)
Symbol	Company Name
ACAN	Americann Inc.
ACCA	Acacia Diversified Holdings, Inc.
ACNNF	AusCann Group Holdings Ltd.
ACRGF	Acreage Holdings Inc.
ADHC	American Diversified Holdings Corp.
ADVT	Advantis Corporation
AEGY	Alternative Energy Partners Inc.
AGEEF	Halo Labs Inc.
AGGHF	Agrios Global Holdings Ltd.
AGTK	Agritek Holdings, Inc.
AHGIF	Alternate Health Corp.
ALEAF	Aleafia Health Inc.
ALGWF	Alliance Growers Corp
ALYI	Alternet Systems, Inc.
ALZTD	YSS Corp.
AMFE	Amfil Technologies Inc.
AMMJ	American Cannabis Company, Inc.
APPB	Applied Biosciences Corp.
AQSZF	Aequus Pharmaceuticals Inc.
AREVF	Arev Brands International Ltd.
ASNT	Arias Intel Corp.
ATHC	Accelerated Technologies Holding Corp.
ATTBF	Abattis Bioceuticals Corp.
AUSAF	Australis Capital Inc.
AXIM	Axim Biotechnologies, Inc.
AYRSF	AYR Strategies Inc.
BABL	Buildablock Corp.
BAYP	Bayport International Holdings, Inc.
BBRRF	Blueberries Medical Co.
BCCI	Baristas Coffee Company Inc.
BHHKF	Benchmark Botanics Inc.
BIOIF	Biome Grow, Inc.
BKKSF	Trutrace Technologies Inc.
BLDV	Blue Diamond Ventures, Inc.
BLEVF	Beleave Inc.
BLGO	BioLargo, Inc.
BLGVF	Belgravia Capital International Inc.
BLLXF	Blox Labs Inc.
BLONF	Co2 Gro Inc.
BLOZF	Cannabix Technologies Inc.
BMMJ	Body and Mind Inc.
BNGI	Bangi Inc.
BOSQF	Yield Growth Corp.
BTTR	Better Choice Company Inc.
BUDZ	WEED, Inc.
BUGVF	Bougainville Ventures
CAAOF	Cannabis One Holdings Inc.
CADMF	Chemesis Intl Inc.
CANL	CannLabs Inc.
CANN	General Cannabis Corp.
CANQF	CanaQuest Medical Corporation
CANVF	Cannvas Medtech Inc.
CANX	CannAwake Corporation
CAVR	CAVU Resources Inc.
CBDG	THC Farmaceuticals, Inc
CBDS	Cannabis Sativa, Inc.
CBDY	Target Group Inc.
CBGI	Cannabusiness Group, Inc.
CBIIF	CB2 Insights Inc.
CBIS	Cannabis Science, Inc.
CBMJ	Canna Consumer Goods, Inc.
CBWTF	Auxly Cannabis Group Inc.
CCAN	Canadian Cannabis Corp.
CGOTF	Citation Growth Corp.
CGRW	Cannagrow Holdings, Inc.
CHMJF	Chemistree Technology Inc.
CHOOF	Choom Hldgs Inc.
CIIX	Chineseinvestors.com, Inc.
CLSH	CLS Holdings USA, Inc.
CLSK	Cleanspark, Inc.
CNAB	United Cannabis Corp.
CNBX	Cannabics Pharmaceuticals Inc.
CNGGF	Cann Group Ltd.
CNNXF	Cannamerica Brands Corporation
CNPOF	Canopy Rivers Inc.
CNTMF	Cansortium Inc.
CNVCF	CANNA-V-CELL SCIENCES
CNXXF	Cannex Capital Holdings Inc.
COSM	Cosmos Holdings Inc.
CPTRF	Captor Capital Corp.
CRLBF	Cresco Labs Inc.
CRXPF	Crop Infrastructure Corp.
CSAXQ	CSA Holdings Inc.
CSSI	Costas, Inc.
CTST	Canntrust Holdings Inc.
CTTH	CTT Pharmaceutical Holdings, Inc.
CURLF	Curaleaf Hldgs Inc.
CURR	CURE Pharmaceutical Holding Corp.
CVSI	CV Sciences, Inc.
CWWBF	Cannabis Growth Opportunity Corp.
CXBS	Corix Bioscience, Inc.
CXXIF	C21 Investments Inc.
CYLC	County Line Energy Corp.
DATI	Digital Asset Monetary Network, Inc.
DEWM	Dewmar International BMC, Inc.
DIGP	Digipath Inc
DIRV	DirectView Holdings, Inc.
DKSC	Dakshidin Corp.
DMAN	Demand Brands, Inc.
DMGGF	DMG Blockchain Solutions Inc.
DNAX	DNA Brands, Inc.
DPWW	Diego Pellicer Worldwide, Inc.
DUTV	Digital Utilities Ventures, Inc.
DVLP	Golden Developing Solutions, Inc.
DYMEF	Dionymed Brands Inc.
EAPH	Easton Pharmaceuticals, Inc.
EEVVF	Eve and Co Incorporated
EGRN	Evergreen-Agra Global Investments, Inc.
EHOS	Ehouse Global, Inc.
EHVVF	Ehave Inc.
EMBI	Emerald Bioscience Inc.
EMHTF	Emerald Health Therapeutics Inc.
EMMOF	Emblem Corp
EPAZ	Epazz, Inc.
ERBB	American Green, Inc.
ETII	EnviroTechnologies International, Inc.
ETST	Earth Science Tech, Inc.
EVAHF	Theramed Health Corporation
EVIO	EVIO, Inc.
EXMT	Anything Technologies Media Inc.
FFRMF	Future Farm Technologies Inc.
FIFG	First Foods Group, Inc.
FLOOF	Flower One Holdings Inc.
FLURF	FluroTech Ltd.
FLWPF	Flowr Corp.
FNNZF	Fincanna Capital Corp.
FRLF	Freedom Leaf Inc.
FRLI	Frelii, Inc.
FSDDF	FSD Pharma Inc.
FSPM	Fusion Pharm, Inc.
FUAPF	Global Cannabis Applications Corp
FWDG	FutureWorld Corp.
GABLF	Gabriella’s Kitchen Inc.
GBHL	Global Entertainment Holdings, Inc.
GBHPF	Global Hemp Group Inc
GBLX	GB Sciences, Inc.
GCAN	Greater Cannabis Co Inc.
GCGX	Global Consortium Inc.
GDET	GD Entertainment & Technology, Inc.
GEATF	International Cannabrands Inc.
GGBXF	Green Growth Brands Inc.
GGTTF	GTEC Holdings Ltd.
GHIL	Green and Hill Industries, Inc.
GLDFF	Golden Leaf Hldgs Ltd
GLLA	Gilla, Inc.
GLNNF	Glance Technologies Inc
GLPH	Gala Pharmaceutical, Inc.
GNAL	Generation Alpha, Inc.
GNBT	Generex Biotechnology Corp.
GNCP	GNCC Capital, Inc.
GOHE	Global Payout, Inc.
GOIG	GoIP Global, Inc.
GPLS	Geopulse Exploration, Inc.
GRCO	Greenbelt Resources Corp.
GRLF	Green Leaf Innovations, Inc.
GRSO	Grow Solutions Holdings, Inc.
GRNH	GreenGro Technologies, Inc.
GRUSF	Grown Rogue International Inc.
GRWC	Grow Capital, Inc.
GRYN	Green Hygienics Holdings Inc.
GSRX	GSRX Industries Inc.
GTBIF	Green Thumb Industries Inc.
GWPD	GP Solutions, Inc.
GYST	The Graystone Company, Inc.
HERTF	Heritage Cannabis Holdings Corp.
HHPHF	High Hampton Hldgs Corp.
HIPH	American Premium Water Corporation
HIRU	Hiru Corp.
HITIF	High Tide Inc.
HLIX	Helix TCS, Inc.
HLSPY	Heliospectra AB
HMLSF	Horizons Marijuana Life Sciences Index ETF
HMPQ	HempAmericana, Inc.
HPNN	Hop-on, Inc.
HQGE	HQ Global Education Inc.
HRVOF	Harvest One Cannabis Inc.
HRVSF	Harvest Health & Recreation Inc.
HSTRF	Blissco Cannabis Corp.
HZEMF	Horizons Emerging Marijuana Growers Index ETF
ICNAF	Integrated Cannabis Company Inc.
ICNB	Iconic Brands, Inc.
IDTA	Identa Corp.
IDVV	International Endeavors Corp
IGNG	Imaging3, Inc.
IGPK	Integrated Cannabis Solutions, Inc.
IGRW	Interactive Health Network
IGXT	IntelGenx Technologies Corp.
ILUS	Ilustrato Pictures International Inc.
IMLFF	InMed Pharmaceuticals, Inc.
INLB	Item 9 Labs Corp.
INNPF	Innovative Properties Inc.
INQD	Indoor Harvest Corp.
IOGIF	Pond Technologies Hldgs Inc.
IONKF	Ionic Brands Corp.
ISOLF	Isodiol International Inc.
ITHUF	iAnthus Capital Holdings, Inc.
ITMC	Itoco Inc
IVITF	Invictus MD Strategies Corp.
JTBK	Jetblack Corp.
JWCAF	James E Wagner Cultivation Corp.
KALTF	Kalytera Therapeutics Inc.
KALY	Kali, Inc.
KAYS	Kaya Holdings, Inc.
KGET	Kleangas Energy Technologies, Inc.
KGKG	Kona Gold Solutions, Inc.
KHRNF	Khiron Life Sciences Corp.
KNRLF	Kontrol Energy Corp.
KOSK	One Step Vending Corp
KOVR	Korver Corp.
KSHB	KushCo Holdings, Inc.
LBUY	Leafbuyer Technologies, Inc.
LDSYF	Lifestyle Delivery Systems, Inc.
LFCOF	Lift & Co. Corporation
LFER	Life on Earth, Inc.
LGBI	Cannabiz Mobile, Inc.
LGGCF	LGC Capital Ltd.
LHSIF	Liberty Health Sciences Inc
LIBFF	Liberty Leaf Hldgs Ltd.
LIHTD	Citation Growth Corp.
LIHTF	Liht Cannabis Corp.
LQSIF	Alcanna Inc.
LRSNF	Global Health Clinics Ltd.
LRZZF	City View Green Hldgs Inc.
LTTSF	Lotus Ventures Inc.
LVBX	LevelBlox, Inc.
LVGI	Limitless Venture Group Inc.
LVRLF	CordovaCann Corp.
LVVV	Livewire Ergogenics, Inc.
LXRP	Lexaria Bioscience Corp.
MCIG	mCig, Inc.
MCOA	Marijuana Company of America, Inc.
MCTC	MCTC Holdings Inc.
MDCL	Medicine Man Technologies Inc.
MDTR	Medtainer, Inc.
MEDIF	Medipharm Labs Corporation
MEDT	MediaTechnics Corp.
MGCLF	MGC Pharmaceuticals Ltd
MGWFF	Maple Leaf Green World, Inc.
MICWF	Micron Waste Technologies Inc.
MJARF	Mjardin Group Inc.
MJMJ	The MaryJane Group, Inc.
MJNA	Medical Marijuana, Inc.
MJNE	MJ Holdings, Inc.
MJOGD	SecurCapital Holdings Corp.
MJTK	CannaSys, Inc.
MLCG	ML Capital Group Inc.
MMJFF	Matica Enterprises Inc
MMJJF	MMJ Group Holdings Ltd.
MMNFF	Medmen Enterprises Inc.
MNTR	Mentor Capital, Inc.
MPHMF	Callitas Health Inc
MRMD	MariMed Inc.
MRNJ	Metatron Inc
MRRCF	Wayland Group Corp.
MSPC	Metrospaces, Inc.
MSRT	MassRoots, Inc.
MVEN	theMaven, Inc.
MYDX	MyDx, Inc.
MYHI	Mountain High Acquisitions Corp.
MYMMF	MYM Nutraceuticals Inc
NACNF	National Access Cannabis Corp
NBGV	NewBridge Global Ventures, Inc.
NCAP	Northsight Capital, Inc.
NDEV	Novus Acquisition & Development Corp.
NDVAF	Indiva Ltd.
NEXCF	Nextech AR Solutions Corp.
NGBL	Notis Global, Inc.
NGMC	Next Generation Management Corp.
NGTF	Nightfood Hldgs Inc.
NOBDF	North Bud Farms Inc.
NOSUF	Nerds On Site Inc.
NOUV	Nouveau Life Pharmaceuticals, Inc.
NRXCF	Neutrisci Intl Inc
NSHSF	Nanosphere Health Sciences Inc.
NSPDF	Naturally Splendid Enterprises Ltd.
NUGL	NUGL, Inc.
NUGS	Cannabis Strategic Ventures
NUVG	Nuvus Gro Corp
NXGWF	Next Green Wave
NXTTF	Namaste Technologies Inc
OCBM	Preferred Commerce Inc.
OILFF	NEXTLEAF SOLUTIONS Ltd.
ONCI	On4 Communications, Inc.
ORGH	OrgHarvest, Inc.
ORHOF	CannaRoyalty Corp.
ORVRF	Orchid Ventures Inc.
OWCP	OWC Pharmaceutical Research Corp.
OWVI	One World Ventures, Inc.
PAOG	PAO Group, Inc.
PDPR	Marathon Group Corp.
PHBI	Pharmagreen Biotech Inc.
PHCEF	PHARMACIELO LTD.
PHCG	Pure Harvest Cannabis Group Inc.
PHOT	Growlife Inc.
PHVAF	Phivida Holdings Inc.
PJET	Priority Aviation, Inc.
PLNHF	Planet 13 Holdings Inc.
PLPL	Plandai Biotechnology, Inc.
PLPRF	Plus Products Inc.
PLSI	Phoenix Life Sciences International Ltd.
PLYZ	Plyzer Technologies Inc.
PMCB	PharmaCyte Biotech, Inc.
PMPG	Premier Products Group, Inc.
PNTV	Players Network (THE)
POTN	Potnetwork Holdings, Inc.
PPJE	PPJ Healthcare Enterprises, Inc.
PRCNF	Pure Global Cannabis Inc.
PRPM	ProTek Capital, Inc.
PRVCF	PreveCeutical Medical Inc.
PSIQ	Profile Solutions, Inc.
PURA	Puration Inc.
PVOTF	Pivot Pharmaceuticals Inc.
PVSP	Pervasip Corp.
QILFF	Organic Flower Invts Group Inc.
RBII	Rising Biosciences, Inc.
RDDTF	Radient Technologies Inc
REFG	Medical Cannabis Payment Solutions
RGST	Rogue Station Companies, Inc.
RIGH	RightSmile, Inc.
RLLRF	Sugarbud Craft Growers Corp.
RLLVF	Relevium Technologies Inc.
RLTR	Reeltime Rentals, Inc.
RMRK	Rimrock Gold Corp.
ROMJF	Rubicon Organics Inc.
RSHN	RushNet, Inc.
RSSFF	Affinor Growers, Inc.
RVVQF	Ravenquest Biomed Inc.
RVVTF	Revive Therapeutics Ltd.
RYMDF	Relay Medical Corp.
SAGD	South American Gold Corp.
SARSF	Canada House Wellness Group Inc.
SAYFF	3 Sixty Risk Solutions Ltd.
SCNA	Smart Cannabis Corp.
SEDO	SEEDO CORP.
SETO	SETO Holdings, Inc.
SGMD	Sugarmade, Inc.
SIGO	Sunset Island Group, Inc.
SING	Singlepoint, Inc.
SKTO	SK3 Group, Inc.
SKVI	Skinvisible, Inc.
SKYF	SKY440, Inc.
SLGWF	Slang Worldwide Inc.
SMKC	Smoke Cartel, Inc.
SNIPF	Snipp Interactive Inc
SNMN	SNM Global Holdings
SNNVF	Sunniva Inc.
SODE	Social Detention, Inc.
SOLCF	Sol Global Invts Corp.
SPLIF	Nutritional High Intl Inc.
SPRWF	Supreme Cannabis Co Inc.
SRUTF	Sproutly Canada Inc.
STMH	Stem Holdings, Inc.
STNN	EPHS Holdings, Inc.
STWC	STWC Holdings, Inc.
SUTI	SUTIMCo International, Inc.
SVSN	Stereo Vision Entertainment, Inc.
SVVTF	Tilt Holdings Inc.
SWRM	AppSwarm, Inc.
TAUG	Tauriga Sciences, Inc.
TBPMF	Tetra Bio-Pharma Inc.
TCNNF	Trulieve Cannabis Corporation
TGGI	Trans Global Group, Inc.
TGIFF	1933 Industries Inc.
TGODF	Green Organic Dutchman Holdings Ltd.
THCBF	THC BioMed Intl Ltd.
THCT	THC Therapeutics, Inc.
TKCI	Turnkey Capital, Inc.
TLOOF	Trackloop Analytics Corporation
TNYBF	Tinley Beverage Co, Inc.
TRLFF	True Leaf Medicine International Ltd.
TRSSF	TerrAscend Corp.
TRTC	Terra Tech Corp.
TTTSF	Trutrace Technologies Inc.
TWOH	Two Hands Corporation
TXTM	ProText Mobility, Inc.
UAMM	UA Multimedia, Inc.
UPPR	Upper Street Marketing, Inc.

..........Full List continued HERE (*too long for Reddit Posting Format)

I'm doing a tribute to the 24 days of Christmas by going over the financial statements of 24 companies that are considered downrange, speculative, and just plain high risk.
The legal cannabis industry already has a ton of risk in it - but this stuff - is only for thrill seekers. All opinions are my own, and certainly not a recommendation for or against any of them, or to buy or sell.
I've limited myself to 45mins to each, and kept to most recent financial statements You'll likely know more about the company than me if you're following them. This is only my reactions with a brief commentary about what I see in their financial statements.
I haven't been consistent in following them all over the past year: some I have, others not.
The second one of this year.....is here
CMM - Canabo Medical Inc.
Scratched! Guess there’s another slot open for a Dive in this year’s Crawl! I did take a run at Aleafia’s financials a few weeks ago though. Their ‘merger’ with Emblem hadn’t yet been announced. Alefia ‘Just Said No’ to cultivation by the looks of it. Best choice for them, at least on the face of it.
ISOL - Isodiol International
Price Then: $11.50 Price Now: $1.71

• Has taken cash and turned it into receivables, inventory, prepaids, and fixed assets. Looking good here.
• Except for the $110MM added in goodwill/intangibles. Entrance fee to explore the world of LATAM and vape pens I suppose.
• Significant inventory build. 50% margin YTD.
• That 50% margin - of $9MM YTD, is supporting $21MM of operating expenses over same period.
• Wages and salaries have exploded. As has SBC (which has eclipsed it no less for last period).
• As has advertising and promotions. Doesn’t bode well for margin maintenance
• Professional fees same. ‘Detonated’ applies as an appropriate adjective as well.
• Intangibles/goodwill now 76% of all assets. Up 10%. Less than the rest of G&A is a good thing?
• Per Note 19, of the $143MM in these as Canadian assets, they have $0 in revenue attached.
• US/UK - far better. Provided that goodwill can be leveraged somewhere…..
• Kure Corp eye watering in cost. Hella price to pay for a vape manufacturer. $36MM cash too. Sellers weren’t taking (rolling) paper.
• Share price blast radius is notable.

Well then. International operations do attract cost (their G&A is bracing), as does business dev. Especially in Brazil. When a company with a net book value of $2.7MM costs $36MM (takes me back to Canopy buying 2 money losing greenhouses with a net book value of $6MM for $86MM at the time).
ISOL’s still shopping too. Round Mountain looks like ISOL tossed them a life preserver. One will have to trust mgmt as to quality/fit of underlying assets. I didn’t detail, it’s only a half million, they bought it for what looks like working capital, I assume it saved them from insolvency.
A pretty sweeping and broad horizon is presented by these statements - in a company looking internationally. They’ve got a clean professional presence (I’ve seen them at pretty much every trade show I’ve attended), yet, $12MM in op costs per quarter based on $8MM in sales for same….sheesh.
Margin relatively static as well. That needs to improve, and sales need to triple+ to support ops. They lost $6MM per quarter this year, sales modestly up Q over Q.
IMH - Invictus MD
Price Then: $1.40 Price Now: $0.81

• Cash in pocket. Considering burn (building $15MM, AbLab $10MM), it’s holding.
• Salaries at $2.5MM, professional fees $1.5MM. To the latter, these have been abating as companies get up and planing. Not here.
• Op expenses high, $13MM this quarter. Ouch.
• Margin seems erratic. Might be operational stabilization, might be a very dark cloud.
• Note 15 explains where their cash came from, along with a 40% increase in shares o/s
• Warrant strike prices are all over the map. Relatively modest in options. Despite $2.5MM in SBC this quarter, don’t look like it’s going to be as high for awhile. I’d need more time to confirm that.
• Related party transactions…sigh. Compelling business reasons are great. Anything less....more than simply poor optics. Can’t tell either way, in any of these without going deep. Note 16.
• Getting a rock star as a front end ain’t cheap. Added $7MM in goodwill, from an $11MM spend. Remainder was expensed in sales and marketing. Well then. Note 10.
• Note 11 - ran out of time.

Few things here. While I don’t get the warm and fuzzies from this (what the elves are taking these days apparently does give you that & they swear by it), it looks better than it did last year. I have concerns over sales, margins, and the assets in subs. Wrote one off this year. Only 9 months to find out it’s a mutt? Honestly, this company requires far (far) more time to get a handle on. Will do on website. Needs a full once over to be fair.
MDM - Marapharm Ventures (now: LIHT CANNABIS)
Price Then: $0.92 Price Now: $0.17

• 50% of assets goodwill. Full Spectrum indeed. Better be some good gear.
• 70MM warrants o/s
• Shares were issued for 2018 include (clears throat): cash; assets; services; debt; warrant execution; stock options; bond bonus; RSU’s; and even some for the treasury. Whew! Note 14
• The 10MM warrants issued at $0.20 look like playing catchup. Share price dump has been….unhelpful in that regard.
• Revenues anemic, laying missionary on 30% margins. Blech.
• Wrote a gain on a ‘bargain purchase price’ regarding Full Spectrum. Sheesh. After booking the rest as goodwill?
• Would show heavy losses if it wasn’t for that $7MM up write.
• Good disclosure on commitments (Note 16). And in segmented reporting (Note 17).
• Note 21 (subsequent events) is busy. Operationalizing the US.

Sigh. Another that needs more time. Where is Quadron when you need them?
Nothing stand out - at least in terms of company differentiation or size. Boring. And leveraged. The Full Spectrum thingy hits their financials like landing an 8 ft fish in a 7 ft boat. I’d need to deconstruct that ‘asset’ to get any strong utility out of this. I’d really want to have a handle on it - and management - if I was to go anywhere near this outfit. Doesn’t look unfairly priced. Unless you ask the people who placed at $0.865, $0.70, and $0.50 during the year.
Ugliest thing I see is them issuing shares for $0.38 and $0.04 to retire debts, when the share price was $0.80 and $0.40 respectively. If I was one of those in the private placements, I’d be coming out of my shoes on that (Note 14). Even if it was only $40k. Speaks to quiet desperation at one point.
Whether there’s a viable business in here….tune in next time for another episode of ‘Dive Bar Pub Crawl’. As I see it….this would take far too much time for the level of interest I have in it. Unless Full Spectrum is a home run…..
ATT - Abattis Biocuetical Corp.
Price Then: $0.48 Price Now: $0.08
Man, what a difference a year makes. I’ve largely avoided looking over last years’ Crawl as reference, except to skim for major points. This one remains clear in my memory…it looked like a complete mutt then. Only thing they looked good at was producing press releases. They’re still kicking, as is the rate of news releases/month. They have begun paying a formal IR front end, so maybe this will slow down. Or perhaps speed up. Can’t tell. Ah well, latest fins I can find are somewhat old (Sept release. Amended too :( ). New ones should be due pretty quick.

• Sales in first quarter of this year: $237.00. Yep, that’s dollars.
• Expenses: $6.9MM same quarter. $3.3MM in consulting fees alone.
• Note 13 details the consulting fees. The note is also titled ‘Related Party Transactions’.
• Share float increased from 159MM to 406MM YoY. There are no words for this.
• Net loss for year end, $24MM on $5,900 in sales. There are fewer than no words for this. Like, an empty set of words.
• Well, at least there’s $1.3MM in PP&E. Woot!
• And….$51MM in intangibles.
• And….$10MM in blockchain, via investment in some sort of clearinghouse to provide liquidity for the crypto-tokens they’ve invented (some sort of Active Health/CanNUMUS spit swap).
• * “Token burning will also act as a low‐friction method of returning value to token holders”.* Well, there you go. You can rich, and be frictionless whilst doing so (Note 7).

Gonna stop there. I’ve got a stitch in my side, and a headache. If I ever get my hands on the mug who suggested this one….the elves heads are collectively a ‘bag of cats’, and the little buggers staged a walkout. They’re outside singing Woody Guthrie songs and burning pallets. This totally sucks. As does Abattis’ financials.
They offer low friction on tokens perhaps, but any cash put toward this thing will probably have the friction of a canvas bag re-entering the atmosphere. Poof. My personal choice for ‘Dive Bar of the Year’. Curiously, it’s not an easy title to take.
IN - Inmed Pharmacuetical
Price Then: $1.47 Price Now: $0.37

• Plenty of cash. Not much change in assets, or anything else for that matter over the year.
• Expenses flat, R&D up, as is SBC. Nothing earth-shaking
• Easy to look at from B/S - Income Statement perspective. Loving pharma co’s in this regard.
• Active in placements. Steady amount of funds coming in, even if down-raising. Shows interest.
• 50MM in options and warrants o/s. Share price trajectory has taken a lot of them out of play for the moment.
• R&D expenses mainly salaries, nominal amount to patents.
  In pharma, investors need to have a handle on viability of the research, quality of the management, etc. doing these is kinda fun as the financials are a dream compared to… oh….an ‘Abattis’ let’s say.
  

TGIF - Friday Night Inc.
Price Then: $1.20 Price Now: $0.37
I looked at these guys as recently as July. I also met up with them at MJBizCon in Vegas. I asked for a look at their facility….they never did get back to me. I won a laptop bag and some nice swag at the booth on a business card ‘draw’, it didn’t help getting a tour tho. I really wanted to see it…the financials got me curious in last year’s Crawl, and I strongly get the sense I’m missing something of note in them. Seems an incomplete story tbh. Maybe just some mild indigestion.
And….for a region notorious for $70 eights in top shelf, I was also curious why they were recording sub $5 revenue on grams. Got the annuals now….

• $6MM in gross margin, $11MM in expenses. Ramping.
• Forex and translation (assuming Fx) $1.1MM. A correction, or, an acquisition conversion to native currency.
• Modest forecast for sales price per gram ($4.16). I really want to know why their sales price sucks this hard. Outside of scope for the Crawl (time, and, I need an answer from the company. Guys?)
• Good disclosure largely, Notes 8, 7, and 11
• Writing up forex accretion on goodwill, ptooey.
• Still 22MM of in-the-money warrants and options. ~=$4MM live.
• Marginal adjustments to cap structure through secured lending. Marginal though.
• Related party transactions relatively good compared to peerset.
• More good disclosure in segmentation (Note 19).

There’s a reason price softening is lower in this one compared to others - at least they are in production & they have a product suite (at least in their booth at MJBizCon). No retail frontage (?) would explain the shitty sales price. I have somewhat of a soft spot for Canadian business, and I’d hope that relatively early movers would be seeing this start to ramp.
As my trip to the US revealed - the US is a hyper-competitive compartmentalized environment. I do believe vertical integration is requisite for a company with this breadth and spend.
Gonna sit in on the next call on these guys, and try and get a (the) story. Looks like false starts in build out, and challenges ramping. Sales are growing. They don’t look to be peddling a ’take me out’ story or stance…but….I have blind spots on this one.
Because of Abattis, the elves are now wearing balaclavas and carrying home-made gas masks. Told me they are going for a stroll. I gave the RCMP a heads up. Gotta keep up good community relations and all.

On Aleafia's year end financial statements as of Dec/31/2018, on page 9 they show a list of their ownership and subsidiaries (here are those financials).
​
Of note, the inactive companies are not all inactive anymore, as per the Canada's Business Registries website search tool.
​
Breaking them down one by one:

1. Aleafia Inc. - Enough said - it's active.
2. Canabo Medical Corporation - also enough said - active.
3. 2412550 Ontario Inc. - part of the amalgamation with Canabo - inactive.
4. Aleafia Farms Inc. - Doesn't show up - not sure why?
5. Flying High Brands Inc. - Inactive. Registered Ma27/2018.
6. Mexican Hat Holdings Ltd. - It's now inactive. It's a legacy corp acquired through various RTO's of previous iterations of the shell that Canabo merged into to list, way back. I did a comment explaining this.
7. Aleafia Brands Inc. - Now active. Registered Nov/20/2018.
8. Aleafia Retail Inc. - Now active. Registered Nov/20/2018.
9. 2672533 Ontario - Now active. Registered Dec/21/2018.

​
So, cleaning that up we are basically left with:

1. Aleafia Inc. - Enough said - it's active.
2. Canabo Medical Corporation - also enough said - active.
3. Aleafia Farms Inc. - Doesn't show up - not sure why?
4. Flying High Brands Inc. - Inactive. Registered Ma27/2018.
5. Aleafia Brands Inc. - Now active. Registered Nov/20/2018.
6. Aleafia Retail Inc. - Now active. Registered Nov/20/2018.
7. 2672533 Ontario - Now active. Registered Dec/21/2018.

​
4, 5, 6, and 7 of this abridged list are what interest me.
4 - As you can see in this Material Document from Nov/28/2018, Aleafia Brands Inc. is actually licensing the brands from Flying High Brands Inc., so that covers that.
5 - Aleafia Brands Inc. is likely putting together the portfolio of One Plant brands that are crossing over from the USofA to Canada, highlighted in this post. Likely to see them popping out closer to rec legalization 2.0.
6 - As you can see in this other Material Document from Nov/28/2018, Aleafia Retail Inc. is actually licensing the right to One Plant (at least 9.9% ownership), so that is up and running.
7 - This is a question mark. It could be FoliEdge Academy...or, I am led to believe it will be the ecommerce platform they touted back on February/15/2019. Kesara Wellness has been mentioned on their website for some time, and has yet to be announced. I'm thinking it's that. KesaraWellness.life has been registered as a website since Dec/20/2018.
​
~
​
Just some food for thought.

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Check our aleafia health guys. ALEAF.
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Author: smashedbuds

"I don’t think it’s all about patient numbers. I think it’s really more about how we’re going to be able to utilize this research, and how that revenue is going start really for the first time."
~
As has been known since October 29 2018, Aleafia launched a R&D division, 'Aleafia Labs'. They did this to:
"leverage the company’s existing patient database and intellectual property to advance the development of proprietary cannabis products. R&D activities will focus on the development of cannabis products that may act as a replacement for addictive prescription opioids and sleeping aids."
​
Since Aleafia's purchase of Canabo, they have been increasingly performing research studies with a constant supply of slowly increasing revenue coming in. This new distinction with Aleafia Labs is formalizing this aspect of the company and will likely, despite all of their current and incoming medical and recreational cannabis offerings, direct the future of the company.
​
TLDR at the end!
​
~
We know that Aleafia's Canabo clinics are gathering data points, as many as 400 per patient. What hasn't been discussed here is how that can be turned into revenue. This article from April 19th 2017 sheds some light.
"We may save the insurance $70-to-$80 a day on one patient, so that’s hugely valuable. When we go back to the insurance industry and say ‘do you have any more of those’, their answer is usually either hundreds or thousands of them. That’s a revenue source that we’ve just started to tap into but it seems quiet promising and has huge margins. We only see that increasing because of the value that we provide to the insurance industry sometimes saving them $20-to-$30 thousand on one patient per year."
​
Saving insurance companies money could become a revenue source. We obviously haven't seen the model, but I'm waiting with baited breath.
~
Here are a some studies that have already been mentioned by Canabo:
Partnership with Tweed on Various Chronic Conditions [Feb/10/2015]
Partnership with CannTrust on a Range of Chronic Conditions [Ma12/2015]
Partnership with Terra Life Sciences to Develop Treatments - [May/15/2017]
Partnership with Tilray re Opioids for Chronic Pain (n=1000) - [Oct/5/2017] ¹
Partnership with Cronos on Sleep Study - [Sept/20/2018]
Partnership with Guided 420 Genetics + AKESOgen for Cannabis Patient Genetic Screening Tools - [Oct/30/2018]
Benzodiazepines Study (n = 146) - [Jan/25/2019]
​
1.) Looking at page 12 of this Mackie Research report, we can see that this is funded by Tilray.
2.) Also, on page 12 of the Aleafia investor presentation uploaded March 14th, they mentioned: "epileptic patients improved employment status in first of its kind, 4000 patient study. To be published in Journal of Drug Issues".
​
I wonder how many more of these studies they have cooking, ready to announce. And then how many they are already readying publication of. Rather than a cannabis company, it may make sense to actually look at Aleafia as a research-oriented company with access to cannabis patients, that also currently sells medical and recreational cannabis.
~
TLDR
​
Aleafia has a foundation of research and has relationships with Canopy, CannTrust, Chronos, Tilray, and Terra Life Sciences. They got somethin' goin' on.

I’ve looked through every Emblem and Aleafia MD&A, and they never exactly say in kg how much they can currently put through their extraction facility per month or year.
They do say that Emblem started extracting oils in Dec/2016 and expected to ramp up to as high as 5,000 bottles per month.
They never specified if that meant 60mL or 30mL. I expect that the “bottleneck” had as much to do with their bottling equipment as their extraction equipment.
But I’ll ballpark using 60mL bottles,...they say a 60mL bottle is equivalent to 10g cannabis.
Considering they use CO2 equipment and ~1,000kg 10% THC cannabis input would likely yield ~64kg THC...that means that approximately 15.625kg of input 10% THC flower equals 1kg THC.
I know, I know, that’s a lot of guesswork. (I haven’t found many other guesses out there, but I’m open to others’ opinions).
~
I think the math pretty much works itself out from there:
60mL bottles = 10g
5,000 bottles x 10g = 50,000g or 50kg
50kg x 15.625 = 781.25kg/month.
Or 9,375kg annual throughput capacity (assuming 10% THC as the input flowetrim).
~
Also, the Phase 3 expansion is alleged to increase capacity by 50,000kg [per year].
So, we can surmise* that the phase 3 expansion will be able to extract about 3,200kg of pure THC/year.
*I went ahead and assumed:
A. A lot of things.
B.A bunch of other stuff.

Post ReplyAleafia and Emerald deal discussions.
from mattwats82 via /CANNABISfuturus sent 56 minutes ago
As an Emblem bagholder I couldn’t understand this deal when it was first announced but after looking deeper into Aleafia I am stoked for this merger
Sep 20 - Aleafia Partners With Cronos Group on Medical Cannabis Sleep Study
Oct 2 - Aleafia Submits Application to List on NASDAQ
Oct9 - Aleafia to Launch Industry First 60,000 kg Secure Outdoor Grow Expansion
Oct 17: Aleafia Launches Three New Clinics, Telemedicine Treatment in Significant Expansion
Oct 29: Aleafia to Launch Cannabis R&D Division Aleafia Labs
Nov 1 - Aleafia Labs Partners on Cannabinoid Pharmacogenetics Study
Nov 14 - Aleafia Health to Launch Global Cannabis Education Platform with D2L
Nov 21 - Aleafia and Serruya Private Equity Reach Agreement for National Retail Dispensary, top Performing Brands and $10M Investment
Jan 7 -Aleafia Completes Phase One Construction and Retrofitting of Niagara Greenhouse Facility
Jan 14 - Aleafia Fulfills First Transaction Under Cannabis Supply Agreement with CannTrust
Jan 18 - Aleafia Health Completes Strategic Investment in Australia’s CannaPacific Pty Limited (Benic also got on Midas letter and said they would be announcing other countries shortly)
Jan 25 - Aleafia Health Study Indicates 45% of Patients End Benzodiazepine Use Following Medical Cannabis Treatment
Feb 4 - Aleafia Health to Accelerate Research Division with Appointment of Product Data Science Fellow
Feb 15 - Aleafia Health Announces new President of Clinic Operations (and says they will be launching an ecommerce and education platform within 3 months)
Feb 21 - Aleafia Health Named Top Performing Company of the Year for TSX Venture 50

This is the best tl;dr I could make, original reduced by 83%. (I'm a bot)

The former Toronto police chief and politician who once compared legalizing weed to legalizing murder is defending his decision to open a company connecting patients with medical marijuana.
I'm involved in the medical aspect that helps people greatly through the dispensing of medically prescribed marijuana cannabis.
People suffering from chronic pain, people suffering from post-traumatic stress disorder, sleep deprivation, the post events form cancer treatment - these are the things we're involved with right now.
We're talking about me today, as a responsible, educated, informed citizen who's had the experience of knowing the benefits of medical cannabis for people who are suffering from ailments that are normally not well cared for by plying them with opiates.
The freshly opened Aleafia total health clinic in Vaughan, Ont., where patients can be assessed and connected to medical marijuana.
We are involved with very ethical and honourable people, financed totally by family and friends, who believe, as we do, in the benefits of medical cannabis to help people suffering from various ailments and trying to lessen the dependency on opiates, which a tragedy in this country.

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