It’s been quite the last few weeks for the world of Canadian cannabis news, and considering we all have lives, it may have been hard to keep up with it all. That’s why I’m here, and that’s why we’ve gathered the most compelling and important news stories from the last seven or so days for this week’s Cannabis News Week Wrap-Up.
CANADA’S SUPREME COURT RULES: QUEBEC HOMEGROWN CANNABIS BAN CONSTITUTIONAL
On Friday, Canada’s Supreme Court upheld Quebec’s prohibition on homegrown cannabis, which is a total bummer. In 2018, when Canada legalized marijuana, the Quebec Cannabis Regulation Act prevented the possession and cultivation of Mary-Jane for personal use. Fast forward a year later to 2019, and Janice Murray-Hall successfully challenged the ban when speaking to Quebec’s Superior Court, arguing that only the federal government has the authority to ban the cannabis plant. Afterwards, the province’s attorney general appealed the decision, which Murray-Hall took to the Canadian Supreme Court. Unfortunately, the Supreme Court dismissed the appeal in an unanimous ruling announced Friday, which is a total buzz-kill. Today, we remind ourselves once again why Quebec is the worst province to live in our great nation.
CANNABIS SEIZURES AT US-CANADA BORDER UP 929% AFTER LEGALIZATION
The biggest argument against marijuana legalization and/or decriminalization is that the black market will continue to thrive while average citizens get stuck paying taxes on their herb. Well, that’s been proven a true statement tenfold, as this week, a federal report has stated that the amount of illegal weed seized at the border has increased by at least 929%. The report identified this surge in cross-border bud bootlegging as a “potential harm to Canada’s international reputation”. It also states that: “experts who participated in the evaluation estimate the overall increase of illegal cannabis exportation from Canada worldwide since domestic legalization could be as high as 2,000%.” One thing I know for sure, I’m also 2,000% higher since the legalization of marijuana, and I’m not complaining one bit.
CANOPY GROWTH EXTENDS $100 MILLION DEBT
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced this week that it has entered into an exchange agreement with Greenstar Canada Investment Limited Partnership (GCILP), a wholly-owned subsidiary of Constellation Brands, Inc. (CBI), in order to extinguish C$100 million. Boy, that’s a mouthful and a lot to process. Basically what’s going on here is: one company agreed to acquire and cancel C$100 million worth of another company's debt in exchange for a cash payment in the amount of unpaid interest owed, and a bunch of other nonsensical business jargon I don’t fully understand. Canopy Growth is a leading North American cannabis and CPG company that delivers innovative products for weed smokers, and apparently, they also have a great accounting and monster lawyers. Always remember: while we struggle making rent, and are breaking up roaches this month because of our student loans and car notes, there are people out there making hundreds of millions of dollars disappear into thin air like smoke.
TILRAY TO ACQUIRE BALANCE OF HEXO CORP
HEXO Corp. (TSX: HEXO) (NASDAQ: HEXO) announced on April 10, that it has entered into a definitive agreement with Tilray Brands, Inc., where Tilray will acquire all of the issued and outstanding common shares of HEXO, subject to approval and satisfaction of both parties. HEXO Shareholders will receive 0.4352 of a share of Tilray common stock in exchange for each HEXO Share held. I think that means some people made some money. A special committee has been assembled to make sure all of these dealings are kept fair and square and that all parties have crossed their t’s and dotted their lower-case j’s. HEXO is an award-winning producer of cannabis products on a global scale, and operates three major grow-sites in Ontario and Quebec. HEXO Corp. is a publicly traded company, so if you’re into playing the stock market, keep an eye on HEXO.
