Cannabis News
The End of Cannabis 1.0?
Published
1 year agoon
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admin
Canopy Growth Corp., a Canadian cannabis company, experienced a significant decline in its stock value on Wednesday. The stock plummeted approximately 22% to reach 46 cents per share. In light of these circumstances, Eight Capital analyst Ty Collin revised his price target for Canopy Growth, setting it at $0 instead of C$1.75 ($1.32) per share. Collin also reiterated a sell rating for the company, stating that it is no longer appropriate to consider Canopy Growth as a viable business. Canopy Growth previously issued a warning regarding its financial viability, as it faces a shortage of financing options and continues to incur substantial losses without a clear path to profitability. Collin highlighted the bankruptcy of prominent cannabis retailer Fire & Flower and the distressed sale of Hexo to Tilray as indicators that no Canadian cannabis company is immune to failure in the current environment. Although Canopy Growth may undertake various measures to strengthen its financial position, Collin believes these efforts will be insufficient and only prolong the depletion of its cash reserves, given the magnitude of ongoing losses. The stock of Canopy Growth has experienced a significant decline of 80% in 2023, the ETFMG Alternative Harvest ETF has dropped 27.7%, and the Global X Cannabis ETF has recorded a loss of 41.4%. Collin has maintained a sell rating on Canopy Growth since November 2021 and continues expressing concerns about the company’s cash burn rate and ability to address the situation effectively.
Going Concern Warning and Financial Challenges
Canopy Growth Corp. started by now famous Bruce Linton, faces mounting concerns as it recently issued a going concern warning, highlighting its precarious financial situation. The warning indicates that the company may have less than 12 months of cash runway left and emphasises the lack of viable financing alternatives. The combination of diminishing cash reserves, ongoing losses, and the absence of a clear path to profitability puts Canopy Growth in a challenging position, making it difficult to attract investors and secure additional funding.
The going concern warning serves as a red flag, raising questions about Canopy’s ability to meet financial obligations and continue operating in the long term. It signals that the company’s financial resources are insufficient to sustain its operations, necessitating immediate intervention to avoid potential collapse. This warning reflects the broader struggles within the cannabis industry, highlighting the vulnerability of Canadian cannabis companies regardless of their size or prominence.
In this challenging environment, no company is considered too big to fail. Canopy Growth, once seen as a frontrunner in the cannabis industry, now grapples with financial uncertainty and the need for swift adaptation to survive. Investors are advised to exercise caution and acknowledge the heightened risks of investing in the volatile cannabis market. Some have wondered if Bruce Linton would come back to be CEO of a turnaround at this point.
Canopy’s management team faces significant pressure to explore and execute strategies that can strengthen the company’s balance sheet. However, analyst Ty Collin suggests that these efforts may fall short of addressing the magnitude of ongoing losses and the urgent need for a viable path to profitability. The coming months will be critical for Canopy Growth as stakeholders closely monitor the company’s ability to navigate these challenges and regain stability in a competitive and unpredictable market.
Stock Performance: Canopy Growth’s Significant Decline in 2023
Canopy Growth Corp.’s stock has witnessed a drastic downward spiral in 2023, causing significant concern within the investment community. The company’s shares have plummeted by a staggering 80% throughout the year, highlighting a substantial erosion of investor confidence. This steep decline raises alarm bells about Canopy’s underlying issues and emphasises the need for prompt action.
The disparity becomes even more striking when comparing Canopy’s stock performance to industry benchmarks. Notably, the ETFMG Alternative Harvest ETF (MJ) has experienced a relatively modest decline of 27.7% during the same period, while the Global X Cannabis ETF (POTX) recorded a loss of 41.4%. This stark contrast indicates that Canopy Growth’s struggles extend beyond the broader challenges faced by the cannabis sector, reflecting specific concerns about the company’s internal operations and strategic direction.
The significant drop in Canopy’s stock price shows that investor confidence has significantly waned. It underscores growing doubts about the company’s ability to reverse its fortunes and generate sustainable returns. The declining stock value poses a considerable challenge for Canopy as it may further hinder its ability to attract necessary investment and restore market trust.
As a result of Canopy’s profound stock decline, the company faces an uphill battle in rebuilding investor confidence. Canopy Growth must take swift and decisive action to regain stability and reverse its fortunes. This entails implementing effective strategies, demonstrating clear leadership, and communicating a compelling vision for the future. The company’s ability to adapt, innovate, and deliver tangible results will determine its trajectory and long-term success in the highly competitive cannabis industry.
Insufficient Measures to Strengthen Canopy’s Balance Sheet
Canopy Growth Corp. has undertaken several measures to address its financial struggles and strengthen its balance sheet. However, according to Eight Capital analyst Ty Collin, these efforts have fallen short of providing a sustainable solution to the company’s cash flow issues. Despite commendable attempts at cost-cutting, operational improvements, and strategic partnerships, Collin remains sceptical about their effectiveness, given Canopy’s historical performance and the magnitude of its ongoing losses.
Collin’s assessment suggests that Canopy Growth’s current initiatives will only prolong the depletion of its cash resources. The company’s mounting losses and lack of a clear path to profitability necessitate more radical actions. It may require Canopy to consider more drastic cost-cutting measures, reevaluate its overall business strategy, and explore alternative financing options to navigate its financial challenges successfully.
The success of Canopy’s measures to strengthen its balance sheet remains uncertain. The company must be willing to take transformative actions and make difficult decisions to restore financial stability and investor confidence. As Canopy continues its efforts, market observers and stakeholders will closely scrutinise the effectiveness of these measures and assess whether the company can overcome its financial hurdles and position itself for long-term viability in an increasingly competitive cannabis industry.
Bottom Line
Canopy Growth Corp. is facing a critical financial predicament, marked by a substantial decline in stock value, a going concern warning, and industry challenges. The $0 price target set by analyst Ty Collin underlines the severity of the situation and raises doubts about the company’s long-term viability. Despite the company’s efforts to strengthen its financial position, ongoing losses and a lack of clear profitability prospects continue to hinder its progress. The significant drop in stock value is a stark reminder of the inherent risks associated with the volatile cannabis market. To overcome these obstacles, Canopy Growth must swiftly implement decisive and transformative measures to regain financial stability and rebuild investor trust.
CANOPY GROWTH LEAD THE WAY, READ ON…
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Is Kratom Addictive? Understanding Dependence, Risks, and Safe Usage
Published
9 hours agoon
November 12, 2024By
admin
Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.
From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.
However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.
Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.
Understanding Kratom: Origins and Prevalence
Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.
The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.
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From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.
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Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.
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As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.
The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.
Is Kratom Addictive: Investigating the Substance’s Nature
The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.
How Kratom Works in the Brain
Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.
Patterns and Consequences of Long-term Use
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Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.
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Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.
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Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.
Assessment of Addiction Risks
Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.
Physiological Effects: Kratom’s Impact on the Body
There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.
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Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.
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Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.
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FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.
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Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.
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Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.
Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.
Conclusion
Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.
Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.
When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.
The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.
WHAT IS KRATOM ANYWAY? READ ON…
Cannabis News
New Rule, December 5: Oregon Cannabis Retailers, Processors and Labor Peace Agreements
Published
10 hours agoon
November 12, 2024By
admin
Oregon’s Measure 119 passed last week, as expected. This means that as of December 5th, every OLCC licensed retailer, processor, researcher and testing lab must secure a labor peace agreement before OLCC will approve a new or renewal license application. The labor peace agreement must be with a “bona fide labor organization.”
I previewed M119 back in September, explaining:
Compulsory peace agreements aren’t anything new in cannabis, although it would be something different here in Oregon. California, for example, requires labor peace agreements for many of its cannabis licensees, and has for many years. We had clients struggle with the concept initially, and we saw some fumbled rollouts, but people eventually adjusted.
Measure 119 further provides that retailers and processors would be required to remain neutral, under the peace agreements, when labor organizations communicate with employees about collective bargaining rights “with any licensure or renewal application.”
M119 may be legally problematic
I’m not a First Amendment lawyer, but it’s not clear to me that an Oregon business can be constrained from speaking with employees– regardless of what M119 provides. Oregon’s speech protections are extremely broad, which is why we have a naked bike ride, tons of strip clubs and no campaign finance restrictions.
I’m also not a labor lawyer, but I’m told M119 could hit a snag on the National Labor Relations Act.
I’ve run these concepts by an Oregon First Amendment lawyer and a couple of labor lawyers, and all confirmed to me that M119 has real exposure. I found that feedback interesting, because M119 sponsors would have understood this when they set out signature gathering. Back in September, I wrote:
The United Food and Commercial Workers Local 555 spent a good deal of money to get Measure 119 on the ballot, rounding up some 163,000 signatures when only 117,173 were required. This follows on a stymied effort to get House Bill 3183 passed last year, which would have accomplished the same thing legislatively.
HB 3183 failed after a couple of advisory letters from the State of Oregon, Legislative Counsel Committee (see here and here). Those letters discussed preemption exposure for what is now M119 under the National Labor Relations Act, The Taft Hartley Act, and other federal laws. Oregon Business and Industry, the largest business group in the state, also submitted opposing testimony, highlighting legal exposure.
As to the First Amendment issues, anyone watching this is advised to follow litigation recently brought by Ctrl Alt Destroy, Inc., on a similar requirement in California.
So let’s see how that goes, and let’s see if anyone in the Oregon cannabis space wants to make a run at litigating M119. For now, credit to UFCW Local 555, I guess, for not giving up and for getting this thing on the ballot. And for having some fun by slipping a Rickroll into the voter pamphlet. I’m sure that won a few people over.
The OLCC process
I don’t have any information yet on what OLCC is going to do ahead of the December 5th deadline. It’s worth noting that, in addition to California, other recreational cannabis states including New York, New Jersey, Rhode Island, Connecticut and Delaware all have similar requirements. Most likely, OLCC will put out an FAQ page very soon that looks something like this and licensees will need to upload something or other to CAMP with respect to any post-December 5th application or renewal.
As far as OLCC licensees negotiating these agreements, the best approach would be to speak with experienced labor counsel. Labor law is highly specialized, and negotiating a labor peace agreement with any outfit claiming to be a “bona fide labor organization” is not a typical exercise.
For now, this is just one more thing for licensed cannabis businesses to comply with. Please reach out to us if you have any questions or need a referral.
As the popularity of CBD (cannabidiol) continues to rise, many pet owners are exploring its potential benefits for their furry companions. CBD is derived from the hemp plant and is known for its therapeutic properties, which may help alleviate anxiety, pain, inflammation, and other health issues in dogs. However, when considering CBD treats for your dog, it’s crucial to understand the ingredients that go into these products. This article will delve into the essential ingredients to look for in CBD treats, their benefits, potential risks, and how to choose the right product for your canine friend.
Understanding CBD and Its Benefits for Dogs
Before we dive into the ingredients, it’s important to understand what CBD is and how it can benefit dogs. CBD is a non-psychoactive compound found in cannabis plants. Unlike THC (tetrahydrocannabinol), which can produce a “high,” CBD does not have intoxicating effects. Instead, it interacts with the endocannabinoid system (ECS) in both humans and animals, which plays a crucial role in regulating various physiological processes.
Potential Benefits of CBD for Dogs
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Anxiety Relief: Many dogs experience anxiety due to various factors such as loud noises, separation from their owners, or changes in their environment. CBD may help reduce anxiety levels by promoting a sense of calm.
Choosing the Right CBD Treats
When selecting CBD treats for your dog, it’s essential to look beyond just the CBD content. The overall quality of the treat is equally important. Here are some key ingredients you should be aware of:
1. High-Quality CBD Oil
The foundation of any good CBD treat is the quality of the CBD oil used. Look for treats that contain:
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Full-Spectrum or Broad-Spectrum CBD: Full-spectrum products contain all cannabinoids found in the hemp plant, including trace amounts of THC (below 0.3% as per legal standards). Broad-spectrum products contain multiple cannabinoids but no THC. Both types can provide an “entourage effect,” enhancing the therapeutic benefits.
2. Natural Ingredients
Just like human food, the ingredients in your dog’s treats matter significantly. Look for treats made with natural ingredients rather than artificial additives or preservatives. Here are some beneficial components:
Whole grains like oat flour or brown rice flour provide essential nutrients and fiber that support digestive health. They are also a good source of energy for active dogs.
Healthy fats are vital for maintaining your dog’s coat and skin health. Ingredients like coconut oil or peanut butter not only enhance flavor but also provide beneficial fatty acids that support overall well-being.
Incorporating fruits and vegetables into your dog’s treats can boost their nutritional value:
To make treats more appealing without resorting to artificial flavors, look for natural flavorings like chicken broth or carob (a chocolate substitute safe for dogs). These ingredients can enhance taste while keeping the treat healthy.
3. Functional Ingredients
Some treats may include additional functional ingredients designed to address specific health concerns:
These compounds are often included in joint support treats to help maintain joint health and mobility, especially in older dogs or those with arthritis.
Probiotics can promote gut health by supporting a healthy balance of bacteria in your dog’s digestive system.
Certain herbs like chamomile or ginger may offer calming effects or aid digestion. Always ensure these herbs are safe for canine consumption before choosing treats containing them.
Ingredients to Avoid
While there are many beneficial ingredients to seek out, it’s equally important to know which ones to avoid:
1. Artificial Additives
Many commercial pet treats contain artificial colors, flavors, and preservatives that can be harmful to your dog’s health. These additives may lead to allergic reactions or other health issues over time.
2. High Sugar Content
Just like humans, dogs do not need excessive sugar in their diets. Treats high in sugar can lead to obesity and dental problems.
3. Low-Quality Fillers
Avoid treats with low-quality fillers such as corn syrup or by-products that do not provide any nutritional value.
Always ensure that any CBD product you choose contains less than 0.3% THC to avoid any psychoactive effects on your dog.
How to Introduce CBD Treats Safely
When introducing any new treat into your dog’s diet—especially one containing CBD—it’s essential to do so gradually:
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Start Small: Begin with a small amount of the treat to see how your dog reacts.
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Monitor Your Dog: Observe your dog for any adverse reactions such as changes in behavior or gastrointestinal upset.
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Adjust Dosage as Needed: Depending on your dog’s size and needs, you may need to adjust the dosage over time.
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Consult Your Veterinarian: Before starting any new supplement regimen, including CBD treats, consult with your veterinarian—especially if your dog has existing health conditions or is taking other medications.
Conclusion
CBD treats can be a beneficial addition to your dog’s diet when chosen carefully with attention to ingredient quality and safety. By understanding what goes into these treats—such as high-quality CBD oil, natural ingredients, functional additives—and knowing what to avoid, you can make informed decisions that support your dog’s health and well-being.
Always prioritize transparency from manufacturers regarding ingredient sourcing and product testing; this will ensure you’re providing your furry friend with safe and effective options tailored to their needs. With proper research and guidance from a veterinarian, you can confidently explore the potential benefits of CBD treats for your beloved pet while ensuring they enjoy a tasty snack that’s good for them too!
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