Marijuana News Today
Following the change of policy in Ontario toward private retail locations for weed sales, a popular coffee shop in Canada is now actively looking to potentially convert some storefronts from beans to bud in April 2019.
The Second Cup Ltd (OTCMKTS:SCUPF, TSE:SCU) is up big following the announcement, jumping by 17% in early-morning trading today.
One of the larger coffee brands in Canada, Second Cup has a number of storefronts set up across major urban centers that, should the conversion process go through, will give the company a huge leg up on its competition from a real estate point of view.
Second Cup had already partnered with National Access Cannabis Corp (OTCMKTS:NACNF, CVE:META) earlier this year, looking into the idea of converting coffee shops to marijuana retail locations under the brand name “Meta Cannabis Supply Co.”
Initially, Second Cup’s plan was to begin conversions out west, but with the change in policy in Ontario from public to private storefronts, it’s now taking a second look at leveraging its more than 130 locations across Canada’s most populous province into a running start in the marijuana trade. (Source: “Second Cup says it may convert Ontario coffee shops to cannabis stores,” The Star, August 15, 2018.)
National Access has stated that it would like to open 50 to 70 cannabis retail stores in Manitoba, Alberta, and British Columbia by the end of 2018.
Of course, the two partners will not be able to open any storefronts in Ontario until April 2019 as part of the new provincial government’s plan.
Another barrier to the conversions will be securing a retail license from the province and approval from franchises and landlords.
Still, the news is generating big buzz around Second Cup and is quietly turning this coffee giant into a pot giant.
National Access Cannabis stock also climbed 15% in early-morning trading today.
Both companies, it would seem, are benefiting greatly not just from the plan itself, but also from the timing as the industry received a huge invigoration by way of the billion-dollar investment from Constellation Brands, Inc. (NYSE:STZ).
But the marijuana news today extends beyond just these two companies. It once again shows a willingness of a wide variety of companies and industries to bet big on pot.
Second Cup is another in the long list of unexpected players in the marijuana market. But it only goes to show that there is an immense amount of opportunity in the marijuana market that savvy businesses are finding ways to take advantage of, with strong results for their stock prices as we’re seeing today.
Canopy Growth Stock
The marijuana news today on the stock market side of things—apart from the massive jumps in Second Cup stock and National Access stock—is certainly not as exciting as yesterday, but that may not be such a bad thing.
Canopy Growth Corp (NYSE:CGC) is flat so far this morning, but considering that CGC stock rocketed up by 30% yesterday, no sign of any significant corrections—yet—is great news.
We want to see sustained gains, not a series of peaks and valleys that will have investors tearing their hair out in worry.
As such, if CGC stock can consolidate those massive gains and not have any significant drawbacks, that’s a win in my book. Especially considering that the October 17 marijuana legalization date approaches, and with it, huge potential gains to be made in a few short weeks.
But back to CGC stock, which of course was sent on that massive run yesterday after the alcohol company Constellation Brands, Inc. (NYSE:STZ) put another $3.8 billion into Canopy Growth. The two companies were already joined together in a venture to produce cannabis-infused beverages.
“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space,” said Constellation CEO Rob Sands. (Source: “‘This is rocket fuel’: Constellation Brands spending $5 billion to boost stake in Canopy Growth,” Financial Post, August 15, 2018.)
“This is rocket fuel,” said Canopy CEO Bruce Linton said of the infusion of capital. “We’re going to be way more global.”
It was like rocket fuel…for the whole industry. We saw massive gains across marijuana stocks yesterday.
Aurora Cannabis Stock
And that brings us to another marijuana stock that won big Wednesday, Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB).
Aurora Cannabis stock similarly shot up in value yesterday, climbing by 18%.
It appears that the massive influx of investment from Constellation Brands emboldened investors to jump all-in on marijuana stocks, with many companies registering big gains during the rush.
Aurora Cannabis stock is down about one percent in early-morning trading today, but the gains made on Wednesday were needed to help push the marijuana industry back into the black after having suffered a correction for well over a month now.
Again, we’re looking to see if these gains can sustain rather than fall away as we’ve seen numerous times in the industry. I’d be happy with flat movement over the next few days to consolidate Wednesday’s moves.
CGC & ACBFF Stock Performances
Check out the chart below of the recent performances of Canopy Growth stock (black line) and Aurora Cannabis stock (blue line).
Chart courtesy of StockCharts.com
The marijuana news today is full of big wins on the stock market.
Second Cup and National Access Cannabis stock are both flying high after their move toward leveraging coffee shop storefronts into marijuana retail locations in Ontario. The move, if it succeeds, will give both companies a big advantage in the marijuana market come April 2019.
Meanwhile, the massive stock spike of yesterday appears to be holding with no significant drawbacks this morning, marking another big win for marijuana stock bulls.