Medical Marijuana ETF To Debut Soon

It is often said in the exchange traded funds (ETFs) business that “all of the good ideas are taken.” Well, maybe not. The legal marijuana industry is booming in the U.S. and, as of now, there is not a dedicated ETF that investors can tap to play that trend.

That could change as ETF Managers Group (ETFMG), a New Jersey-based company that helps ETF sponsors bring their products to market, has filed plans for the Emerging AgroSphere ETF. Assuming the Emerging AgroSphere ETF comes to life, it will track an index created by BE Asset Management.

That index "tracks the performance of the exchange-listed common stock (or corresponding American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”)) of companies across the globe that (i) engage in lawful medical research intended to lead to the production of government-approved prescription drugs which utilize natural or synthetic versions of the cannabidiol CBD and other cannabis-based extracts, (ii) are involved in the production or sale of products which are legal derivatives of industrial hemp, or (iii) are involved in the supply chain of either category of company. The Fund will not invest in any companies that are focused on serving the non-medical marijuana market in the United States, Canada or any other country unless and until such time as the production and sale of non-medical marijuana becomes legal in the United States, Canada or such other country, respectively," according to a filing with the Securities and Exchange Commission (SEC).

Interested investors should note that Emerging AgroSphere ETF, again assuming it hits the market, will focus on medical marijuana. That means the ETF will not be a play on the highly lucrative recreational marijuana markets that are popping up across the U.S. Colorado is generating handsome tax revenue from legal recreational marijuana and the same could hold true for other states in the future. For example, during the 2016 elections, Californians voted to legalize marijuana for recreational use, and the largest U.S. state by population will see its first recreational pot stores open in 2018.

"Currently, 28 states plus the District of Columbia have laws and/or regulations that recognize, in one form or another, legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment," according to the ETFMG filing with the SEC. "Even in those states in which the use of medical marijuana has been legalized, its sale and use remains a violation of federal law."

The filing did not contain a proposed ticker or expense ratio for the marijuana ETF. Those are often signs that a new ETF is close to coming to market, so it could be a while before investors can access the Emerging AgroSphere ETF.

By Todd Shriber

Source: http://www.investopedia.com/news/maybe-medical-marijuana-etf/

Marijuana Stocks: Plenty of Business Diversity, Yet One Common Theme

Marijuana, excuse the pun, has been growing like a weed for some time now. Just 21 years after California became the first state to legalize cannabis for medical purposes, there are now a total of 28 states that have legalized medical marijuana. Likewise, just a little over four years after voters in Washington and Colorado voted to legalize recreational pot, eight states in total have done so.

Marijuana's blazing growth

One reason cannabis has been gaining such rapid momentum in the U.S. is the improving opinion of pot among the general public. National pollster Gallup has been conducting surveys on marijuana for nearly five decades, and the percentage of the public that'd like to see it legalized nationally has increased from just 25% in 1995 to 60% (an all-time high) in 2016. As favorability toward the drug improves, more and more states have been legalizing pot either for medical or recreational uses.

Image source: Getty Images.

governments have played their role, too. Legally growing and selling marijuana provides new channels of revenue for state governments to collect taxes and licensing fees. In Colorado, $135 million in tax and licensing revenue was collected in 2015 on $996.2 million in legal weed sales, while in California, the passage of Prop 64 this past November (which legalized recreational pot) is expected to add an estimated $1 billion in tax revenue to the state.

Lastly, the significant growth potential behind marijuana has been an allure. Legal marijuana sales hit $6.9 billion in 2016 according to cannabis research firm ArcView, a 34% increase from the previous year. ArcView believes this figure could grow to $21.6 billion by 2021, while investment firm Cowen & Co. believes legal pot sales could tip the scales at $50 billion by 2026.

Marijuana stocks offer plenty of business diversity

This latter point is what's attracted a flurry of marijuana companies to go public in recent years, giving investors a veritable sea of marijuana stocks to choose from.

One thing marijuana stocks definitely don't lack is business diversity, offering investors a lot of ways to potentially capitalize on marijuana's growth.

Image source: GW Pharmaceuticals.

Perhaps the most well-known cannabis stock is cannabinoid-based drug developer GW Pharmaceuticals (NASDAQ: GWPH) . GW Pharmaceuticals has discovered more than five dozen different cannabinoids from the cannabis plant, and it uses these cannabinoids to access the natural CB receptor system in our bodies. Easily the most successful experimental drug to date in GW's portfolio is Epidiolex, a cannabidiol-based drug that met its primary endpoint in phase 3 studies for two types of childhood-onset epilepsy, Dravet syndrome and Lennox-Gastaut syndrome.

Along those same lines, Medical Marijuana (NASDAQOTH: MJNA) licenses its cannabinoid testing and research to the medicinal cannabinoid industry. Medical Marijuana also provides management and consulting services, as well as chewing gum-based cannabis products.

But there are numerous pot stocks outside the biotech realm. Right now there are companies that are:

• Developing marijuana breathalyzer devices for law enforcement;
• Focused on consulting services for pot businesses;
• Manufacturing THC-infused beverages and foods;
• Providing banking solutions to marijuana companies;
• Developing cloud-based technology to run point-of-sale and ordering systems for pot retailers;
• Providing marketing services;
• Leasing cultivation space and facilities;
• Developing new and innovative lighting products for indoor grow farms.

This list could go on for quite some time. The point is that retail sales from dispensaries are far from the only way marijuana businesses are looking to take advantage of legal sales growth.

Image source: Getty Images.

Marijuana stocks share one common theme

Unfortunately, despite this business diversity, marijuana stocks do share something in common: they're basically all losing money, and there's nothing to suggest that this money-losing trend will ebb anytime soon.

Some investors might be quick to point to INSYS Therapeutics (NASDAQ: INSY) , a profitable stock commonly called a "marijuana stock", to debunk this thesis. However, INSYS generated essentially all of its $55.2 million in sales during the third quarter from a sublingual drug known as Subsys, which isn't marijuana-based. It's not exactly fair to refer to Insys as a marijuana stock until it generates a decent percentage of its sales from its dronabinol-based medicines.

Lexaria and Neutrisc Announce Successful Cannabinoid Tablet Development and Positive Results From Initial Human Observational Trials

Kelowna, BC – January 19, 2017 – Lexaria Bioscience Corp. (OTCQB:LXRP) (CSE:LXX) (the “Company” or “Lexaria”) and NeutriSci International Inc. (the “Company” or “NeutriSci”) (TSX-V: NU, Frankfurt- 1N9) are pleased to announce the successful development and initial trial of the industry’s first zero-sugar cannabinoid / pterostilbene edible tablet utilizing both Neutrisci’s and Lexaria’s proprietary and patented technologies.

Neutrisci’s  proprietary pterostilbene tablet  formula  was used to produce the  world’s first pterostilbene / cannabidiol (CBD) rapid melt edible product offering the benefits of Lexaria’s patented CBD conjugation  technology.  The market-ready tablet offers improvements in taste, rapidity of onset, and strength of effect due to greater bioavailability, as had been originally hypothesized.

After trial batch formulation and manufacturing was completed, observational human tests supported that the user will experience the effects faster and last longer while utilizing smaller amounts  of  cannabinoid  than   competing  products. The above noted benefits  offer manufacturing efficiencies over competing products, thus potentially increasing comparative profitability.

NeutriSci and Lexaria confirm the companies expect to officially bind the JV agreement to market and  commercialize a line of edible products using CBD derived from full spectrum hemp oil, which is federally legal in  the United States, to be followed by tetrahydrocannabinol (THC) versions through distribution programs with both  existing and planned new strategic partners. With successful first-stage formulation and human evaluation completed, the companies expect to conclude a working JV structure as soon as possible to financially capitalize on this unique opportunity.

“This  joint  venture  is  a  demonstration  of  the  rapid  innovation  occurring in  the  cannabis industry,” commented Chris Bunka, CEO of Lexaria Bioscience. “We are excited to work with NeutriSci; to combine both technology and form factor to develop healthy cannabinoid products to be sold within NeutriSci’s international distribution network.”

“We are very pleased with the results of this product formulation and observational trial, as the initial results have be invaluable in helping NeutriSci open dialogue with several of the world’s largest CBD manufactures and distributors”, commented Glen Rehman, President of NeutriSci International. “The idea to use our sublingual tablet and form factor to create a new line of zero-sugar and dose-controlled cannabinoid edible products will become a reality.”

Following the recent approvals for recreational use in certain US states, Industry researchers have reported that the legal cannabis market could exceed $20 Billion by 2020.

About Lexaria
Lexaria Bioscience Corp. is a food biosciences company with a proprietary technology for improved delivery of bioactive compounds. The Company’s lipophilic enhancement technology has been shown to enhance the bioavailability of orally ingested cannabinoids, while also masking taste. This technology promotes healthy ingestion methods, lower overall dosing and higher effectiveness in active molecule delivery. The Company’s technology is patent-protected for cannabidiol (CBD) and all other non-psychoactive cannabinoids, and patent-pending for Tetrahydrocannabinol (THC), other psychoactive cannabinoids, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules.

www.lexariabioscience.com

About NeutriSci International  Inc.:
NeutriSci specializes in the innovation, production and formulation of nutraceutical products. Established in 2009, NeutriSci has focused on the development of several breakthrough nutraceutical products with an initial focus on areas such as heart and cholesterol health, sleep deprivation therapies, immune defense as well as men’s prostate and sexual health. NeutriSci continues to build strong relationships and distribution channels for its BluScience™ and NeuEnergy™ products with retailers throughout the United States. NeutriSci is focusing efforts in strengthening sustainable sales models with Convenience, Chain Drug, and Mass Market and Supermarket retailers.

FOR FURTHER INFORMATION PLEASE CONTACT:
Lexaria Bioscience Corp.
Chris Bunka
Chairman & CEO
(250) 765-6424

FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements, including but not limited to: that the market-ready tablet offers improvements in taste, rapidity of onset, and strength of effect due to greater bioavailability, that the user will experience the effects faster and last longer while utilizing smaller amounts of cannabinoids than competing products, or that any JV agreement to market and commercialize a line of edible products using CBD derived from full spectrum hemp oil, or from tetrahydrocannabinol will ever be entered. Such forward-looking statements are estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Access to capital, or lack thereof, is a major risk and there is no assurance that the Company will be able to raise required working capital. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, the patent applications and approval process and other factors which may be identified from time to time in the Company’s public announcements and filings. There is no assurance that any license agreement, corporate activity in the hemp oil sector, or alternative health businesses will provide any benefit to Lexaria, or that the Company will experience any growth through participation in these sectors or as a result of the granted patent. There is no assurance that existing capital is sufficient for the Company’s needs or that it will be able to raise additional capital. There is no assurance that Lexaria’s technology will deliver any improvement in taste or bioavailability with any reliability nor across any product category. There is no assurance that any planned corporate activity, business venture, or initiative will be pursued, or if pursued, will be successful. There is no assurance that any hemp oil or cannabinoid-based product will promote, assist, or maintain any beneficial human health conditions whatsoever, nor that any patent application in the USA or any other nation or under any treaty will result in the award of an actual patent; nor that an award of any actual patent will protect against challenges from unknown third parties. There is no assurance that any of Lexaria’s postulated uses, benefits, or advantages for the patented and patent-pending technology will in fact be realized in any manner or in any part. No statement herein has been evaluated by the Food and Drug Administration (FDA). Lexaria Energy Foods and ViPovaTM products are not intended to diagnose, treat, cure or prevent any disease.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Source: http://www.lexariaenergy.com/news/lexaria-and-neutrisc-announce-successful-cannabinoid-tablet-development-and-positive-results-from-initial-human-observational-trials/

Nasdaq Cannabis Stocks Spike in Volume Ahead of Election for Recreational and Medical Use

The volume of cannabis stocks listed on the Nasdaq have spiked ahead of the election as voters decide tomorrow on recreational and medical use of marijuana.

 

The volume of cannabis stocks listed on the Nasdaq have spiked ahead of the election with some stocks rising as much as 12% on Monday as voters decide tomorrow whether five states will allow recreational use of marijuana while four other states could approve medical use.

Interest in cannabis-related stocks has risen from micro cap to Nasdaq-listed equities, said Jason Spatafora, co-founder of Marijuanastocks.com and a Miami-based trader and investor known as @WolfofWeedST on Twitter. The market is predicting that voters in California and Nevada will approve legislation for recreational use and anticipates that Florida will legalize medical use.

"Should more states adopt laws to legalize either recreational or medicine use of marijuana, we can see a continued run going into the new year," he said.

Some of the stocks have been undervalued as investors were skittish and the use of drugs produced by major cannabis-focused biopharmaceutical companies have not been widely adopted. The current options for mainstream investors in this budding sector are limited to a handful of companies listed on the Nasdaq, including GW Pharmaceuticals (GWPH) , a U.K.-based biotech company with a cannabis-based epilepsy drug; Insys Therapeutics (INSY) , a Phoenix company known for its cancer pain management drug but is developing a cannabis-based drug for the treatment of epilepsy; Cara Therapeutics (CARA) , a Shelton, Conn.-based clinical state biopharmaceutical company that develops and commercializes pain relief drugs; and Zynerba Pharmaceuticals (ZYNE) , a Devon, Pa.-based company focused on developing and commercializing synthetic cannabinoid therapeutics.

This run in stock prices is also boosted by the massive gains that Canadian licensed producers are showing investors, Spatafora said. Canada is also expecting several IPOs such as Emblem Cannabis (TSX: EMC) which is expected to which will go public end of November.

"The Canadian run can prop up the U.S. market well into the spring when their national cannabis law takes effect," he said. "So long as investors are taking profit along the way rather than let greed dominate their accounts, the bubble will not burst."

An approval in Florida means the state's economy would benefit, because "cannabis has a drastic impact on real estate since entrepreneurs need legal means other than cash vaults to store their earnings due to banking restrictions," Spatafora said. "This could inevitably be a residual benefit of cannabis passage that most people are missing."

Recreational passage in California will have a smaller effect on them market since it is already a medical state which currently consists of about 75% of the total U.S. cannabis market, he said. The other states seeking approval are Arizona, Nevada, Massachusetts and Maine.

"Passage in California will only expand those numbers, but the more interesting state is Florida," Spatafora said.

Colorado's passage of both recreational and medical use in 2014 proved to be a groundbreaking test case for entrepreneurs and legislators and has generated hundreds of millions of revenue in taxes.

"The state was a crash test dummy of the industry and for all the doomsayers who said crime would increase as well as drug abuse," he said. "Colorado was a wild success with opioid addiction and overdoses dropping. Two or three states after legalization have shown states that the paradigm shift for legal cannabis has already reached a tipping point and their economies need it."

The economic impact for these states is immense - California is estimated to increase to $10 billion market by 2020, while Florida's medical market should be a $1 billion industry by 2020, said Michael Berger, a former Raymond James energy analyst and founder of Technical420, a Miami-based company that conducts research on cannabis stocks. California's recreational market is not likely to start until 2018 since Colorado voters passed the usage in 2012 and the program did not start until January 1, 2014.

"I expect the cannabis industry to be a $75 billion dollar industry by 2020," he said. "Although many people's estimates are below this, I take into account more than just the sale legal cannabis because the ancillary business will benefit significantly."

The medical marijuana initiatives are being voted on Arkansas, Florida and North Dakota while Montana is voting on an initiative to "fix the medical marijuana program after it was gutted by the legislature several years ago," said Morgan Fox, communications manager for the Marijuana Policy Project, a Washington, D.C.-based marijuana policy reform organization.

In California alone, the state and local revenues are expected to generate over $1 billion annually, according to an analysis from the nonpartisan Legislative Analyst's Office, said the Marijuana Policy Project of California. State and local governments could save $100 million annually from lower costs been allocated for enforcing marijuana-related offenses such as legal and incarceration costs.

Future State Legislation

Ballot initiatives are not likely to occur in 2017, since it is an off-cycle election year, but movement could occur in Rhode Island, Vermont and New Jersey at the statehouse level next year, said Robert Hunt, president of Teewinot Life Sciences, a Tampa, Fla.-based cannabinoid biosynthesis company, and a partner at Tuatara Capital, a New York-based private equity fund dedicated to the legal cannabis industry.

State legislatures who chose to expand a program do not need voter approval and it is likely more legislators will choose this strategy in 2017 and 2018, said Brett Roper, COO of Medicine Man Technologies (OTCQB: MDCL), a Denver-based cannabis consulting services company.

"I predict that in 2017 and 2018 instead of straight ballot initiatives, we will see the first states pass adult use legalization through legislatures," he said. "Vermont and Rhode Island have long been a favorite picks of observers for being the first to legalize through a legislative process and there has been some movement in New Jersey that has also been encouraging."

Well-regulated medical cannabis or adult use state markets can usually generate at least 10% of total sales, Hunt said.

"The total economic impact when accounting for direct and ancillary job creation is often in the billions of dollars in states with a decent sized population," he said. "We are already seeing this in the earliest adopting states with robust markets."

By Ellen Chang

Source: https://www.thestreet.com/story/13883955/1/nasdaq-cannabis-stocks-spike-in-volume-ahead-of-election-for-recreational-and-medical-use.html