Organigram among best-placed producers for Cannabis 2.0 - Raymond James

Lifeist Wellness

17/10/2019 14:49

** Licensed Canadian cannabis producers with
well-established manufacturing and formulation expertise, such
as Organigram  OGI.TO , are best-positioned to start Canada's
Cannabis 2.0 era, Raymond James analyst Rahul Sarugaser says
    ** Cannabis 2.0, or legalization of marijuana derivatives
including edibles, beverages, extracts and vape pens, took
effect on Thursday, with sales seen beginning in mid-December
    ** Canada had legalized use of recreational marijuana about
a year ago, but investors have hoped the second wave of
legislation would lift shares of pot stocks
    ** However, the industry faces a bottleneck as retail
outlets haven't been licensed in numbers great enough to receive
the cannabis flower and oil products being produced  urn:newsml:reuters.com:*:nL3N26W3ZT
    ** Sarugaser says new legislation means Canada's cannabis
capital markets have begun their shift from the "buy a dream"
days of 2017-2018 to a more measured "buy a good operator" epoch
    ** While companies that embrace engineering principles,
invest in intellectual property and leverage foundational
scientific data will be long-term winners, new laws will be a
"nightmare" of high costs with poor sales and unprofitability
for companies with little expertise in producing - Sarugaser  
    **  U.S.-listed shares of pot producers Canopy Growth Corp
 CGC.N , CannTrust Holdings  CTST.N , Tilray  TLRY.O , Aurora
Cannabis  ACB.N , Hexo Corp  HEXO.N  and Cronos Group  CRON.O 
rise as Cannabis 2.0 kicks off   urn:newsml:reuters.com:*:nL3N27231T

 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 1208;))