This article originally appeared on Grizzle, which PotNetwork is thrilled to be partnering with to bring you occasional features highlighting everything you need to know in the marijuana stock market. Scott Willis is the co-founder and head of research at Grizzle. Grizzle provides critical money analysis and insights for topics that matter to millennials. For more in-depth analysis of marijuana, crypto, and investing, check out grizzle.com.
After rumors swirled for months that Molson was looking to enter the cannabis space, they ended up forming a joint venture with Hydropothecary (TSX: HEXO), disappointing some investors who thought that Aphria was the front-runner for a Molson tie up.
Molson will have control over the JV without a cash investment and was granted warrants for six percent of HEXO, leading us to question what value HEXO is receiving besides access to Molson's considerable distribution platform.
Attorney General Jody Wilson-Raybould decided that the Draeger DrugTest 5000 will be the device used across the nation to sniff out cannabis impaired drivers.
The company that produces the device is Dragerwerk A.G. & Co. a German company. Drager only generated four percent of cash flow from North America in 2017, so the sales from this new device are unlikely to make this company a compelling investment as a play on the growing cannabis industry.
Scientists from Queen Mary University in London found that Mice suffering from pancreatic cancer and a combination of CBD and chemotherapy drugs lives for 56 more days, compared to only 23 days with chemotherapy drugs alone.
Human Clinical trials could start shortly adding yet another data point supporting the clinical use of CBD.
Italian Health Minister Gulia Grillo posted on Facebook Tuesday saying the government will move to either approve private cultivation or a public-private partnership structure to make sure citizens will have access to enough supply of cannabis.
The population in Italy is 70 percent larger than Canada, and domestic supply is almost nonexistent, introducing a significant opportunity for Canadian licensed producers.
Marijuana stocks were basically flat for the week, but an interesting rotation took place with large-cap stocks underperforming small cap for the week which rarely happens.
The underperformance was likely driven by a rotation out of Aphria and into Hydropothecary as investors showed their disappointment that Molson did not choose Aphria as an infused beverage partner.
Even with all of the positive momentum on legalization, the stocks are down ten percent since the recent bottom in April. Retail investors are still waiting for a rebound in stocks leading up to legalization which could happen for a few weeks just before the October 17 legalization date with some follow through into the end of the year due to a shortage of product, but it's looking like this is going to be a long summer of lackluster performance.