Hexo, investors shrug off allegations of cannabis marketing violations
Hexo’s shares briefly declined on Monday after a short seller alleged that the company conducted “aggressive product promotions” on social media platforms. However, the company refuted the allegations and investors appear to not be taking the report seriously either. On Monday, The Friendly Bear alleged Hexo potentially violated Canadian marijuana advertising regulations and questioned whether minors were exposed to ads on social media accounts. In a statement, a Hexo spokesperson said the company is “scrupulous in adhering to rules and regulations” surrounding marketing cannabis in Canada. Health Canada said it is “aware of the situation and looking into the matter,” while Hexo also said it hasn’t received complaints or notices from regulators on its marketing campaigns.
CannTrust board unaware of unlicensed grow room: Interim CEO
CannTrust Holdings Inc.’s board of directors only found out about an unlicensed grow room in one of its production facilities after it was discovered by Health Canada, the company’s interim CEO told The Canadian Press on Tuesday. Robert Marcovitch – the man who has taken over the top job at CannTrust Holdings in the wake of former CEO Peter Aceto’s dismissal last week – would not answer questions about who gave the order to start growing in the unlicensed room due to an ongoing internal investigation. The company’s stock was down marginally – just two cents – on Tuesday but has fallen more than 50 per cent since news broke of Health Canada’s probe on July 8.
NAC revenue rises 5.2% in Q3, eyes 40 pot shops by end of year
Canadian cannabis retailer National Access Cannabis reported third-quarter results Tuesday as revenue rose 5.2 per cent from the previous quarter. NAC, which manages 34 Meta and NewLeaf cannabis stores across Canada – including two more that opened in Alberta – reported $17 million in quarterly revenue during the three-month period ending May 31, and posted a net loss of $4.8 million. The company’s gross margin held mostly steady at 33 per cent during the third quarter. NAC expects to operate 40 pot shops by the end of the calendar year, the company added in a release.
Flowr starts shipping cannabis clones to Portuguese facility
Flowr is shipping its clones to Portugal. The Toronto-based cannabis producer said in a statement Tuesday it received an export permit to send an initial shipment of cannabis clone plants to its facility in Aljustrel, Portugal. Part of the shipment included a nine-week integrated pest management program required for phytosanitary certification, while Flowr used special packaging to ensure the clones arrived unscathed. Flowr’s Portuguese facility is expected to produce as much as 500,000 kilograms annually at full production for the European medical market.
— The amount of cannabidiol created in engineered hemp plants using a special growing method developed by Trait Bioscience. It is roughly four times the amount of CBD produced by conventional hemp plants, the company says.
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