An Underwhelming Pot Shop Rollout for Ontario: Cannabis Weekly


2019-04-01 19:00:00 Bloomberg


-- Canada’s most populous province will finally open its first pot shops Monday, nearly six months after legalization. The initial result will be underwhelming, to say the least. As of Friday, only 10 stores in Ontario had received the necessary licenses to open on April 1. That’s one store per 1.4 million people. In Toronto, the biggest city in Canada with a population of nearly 3 million, there will be one store ready to open its doors. Located on the city’s trendy Queen Street West, The Hunny Pot Cannabis Co. is run by real estate agent Hunny Gawri. Gawri was lucky enough to win the provincial government’s lottery after it set a temporary initial cap of 25 stores, citing a national supply shortage that’s plagued the industry since recreational pot was legalized in October. Gawri has hired a public-relations firm to help him manage the media mayhem that’s likely to result from having the only store in a city that’s home to most of the country’s biggest news outlets. Whether customers will be as excited remains to be seen. Ontario residents have been able to buy cannabis legally since Oct. 17 through the government-run Ontario Cannabis Store website, and the black market remains robust due to lower prices and better selection. The illicit market accounted for about 80 percent of the C$5.9 billion ($4.4 billion) Canadians spent on cannabis in the fourth quarter, according to Statistics Canada. Other cities will be better serviced than Toronto at first. Ottawa, the nation’s capital with a population of nearly 1 million, has three stores ready to open on Monday. Kingston, with a population of about 124,000, will have two. Weak Earnings Despite the limited rollout, the opening of Ontario stores is “a very significant development” for the industry, Peter Aceto, chief executive officer of CannTrust Holdings Inc., said in an interview. “I think it’s a very important part of getting us out of the black market and I definitely do think it’ll have an impact on demand,” he said. Demand, however, wasn’t the problem for CannTrust and competitor Cronos Group Inc., which both posted significant stock declines last week after reporting sales that missed the lowest analyst estimate. Both failed to capture much of Canada’s recreational market in the fourth quarter, with Cronos’s share estimated by analyst Tamy Chen at BMO Capital Markets at 2 percent and CannTrust’s at 4 percent. However, both also stressed that revenue should improve over the course of 2019 as new growing capacity comes online. While most of the larger Canadian licensed producers stress that Canada will ultimately be a small piece of a much bigger international opportunity, the direction of their stock price is still very much determined by their performance in the Canadian market. Cronos’s stock fell 9.5 percent in the two sessions following its earnings, while CannTrust’s shares plunged 19 percent the day it reported. Pot Stock Leadership Those declines weren’t enough to remove Cronos or CannTrust from the S&P/TSX Composite Index’s leaderboard. Cannabis stocks made up six of the top 10 performers on the Canadian benchmark in the first quarter. Hexo Corp. led the way with a gain of 87 percent, followed by Aurora Cannabis Inc., up 78 percent. Cronos was in fourth place, Aphria Inc. in sixth, Canopy Growth Corp. in seventh and CannTrust in eighth. Those results helped the benchmark post its best first quarter in 19 years. The cannabis sector as a whole ended the weekly slightly lower, with Bloomberg Intelligence’s Global Cannabis Competitive Peers index falling 1.2 percent. Mixed messages from south of the border weighed on stocks after New Jersey lawmakers scrapped a planned legalization vote due to a lack of support, while the House Financial Services Committee voted in favor of the SAFE Act, which would permit commercial banks to offer services to cannabis companies that are in compliance with state law. Upcoming Events This Week Ontario, Canada’s most populous province, will open its first bricks-and-mortar pot shops April 1, nearly six months after legalizationCannabis Conference 2019, presented by Cannabis Business Times and Cannabis Dispensary magazine, will be held in Las Vegas April 1-3International Cannabis Business Conference Berlin, billed as “the preeminent European meeting point for the cannabis industry,” runs March 31-April 2CannaTech hosts a medical cannabis conference in Tel Aviv, April 1-2iAnthus Capital Holdings Inc. will report fourth-quarter earnings post-market April 1 with an analyst call scheduled for 8:30 a.m. New York time on April 2The Flowr Corp. reports fourth-quarter results post-market on April 4, with a call scheduled for 5 p.m. Toronto time Our Top Stories of the Past Week Major Pot Expansion Looks Like a Dud for Northeast in 2019 Pot Banking Bill Gets House Committee ApprovalAphria CEO Confident of Revenue Surge, Snubs Green Growth AgainCronos Tumbles on Sales Miss as Pot Firm Turns to AltriaLow-Cost Pot a Priority for Canadian Firm Amid Stock Plunge Bedrocan to Return to North America After Winning Canopy CaseThe Former Uber Man Navigating Europe’s Cannabis Rules Cannabis Craze Comes to China Stocks, Drawing Regulator’s Ire
加拿大人口最多的省份周一将开设首家大麻商店,距离合法化已有近6个月时间。最起码,最初的结果将是令人失望。 截至上周五,安大略省只有10家商店获得了4月1日开业的必要许可证。这是每140万人的一家商店。 在加拿大人口近300万的最大城市多伦多,将有一家商店准备开门。 位于新潮的皇后街西边的赫尼·波特·坎纳比斯公司由房地产经纪公司 Hunny Gawri 经营。盖瑞( Gawri )幸运地赢得了省级政府的彩票。此前,该公司设定了25家门店的临时初始上限,理由是全国供应短缺问题困扰着该行业,因为娱乐用大麻在10月份被合法化。 盖瑞聘请了一家公关公司,帮助他管理媒体的混乱局面。这可能是因为他在中国大多数最大新闻媒体的大本营城市拥有唯一一家门店。客户是否会如此兴奋还有待观察。从10月17日起,安大略居民通过政府运营的安大略大麻商店( Ontario Cannabis Store )网站合法购买大麻,由于价格较低和选择较好,黑市依然强劲。加拿大统计局的数据显示,去年第四季度,加拿大59亿加元(44亿美元)的大麻消费中,非法市场约占80%。 其他城市一开始将比多伦多提供更好的服务。拥有近100万人口的渥太华有三家商店准备在周一开业。人口约12.4万的金斯顿将有两个人。 收益疲软 佳能信托控股有限公司( CannTrust Holdings Inc .)首席执行官彼得? “我认为这是让我们走出黑市的一个非常重要的部分,我确实认为这会对需求产生影响,”他说。 然而,对佳能信托和竞争对手 Cronos Group Inc .来说,需求并不是问题所在。该公司上周公布的销售额低于分析师的最低预期,导致该公司股价大幅下跌。 这两家公司都未能在第四季度占据加拿大娱乐市场的大部分份额, BMO 资本市场的分析师 Tammy Chen 和 CannTrust 估计 Cronos 的份额分别为2%和4%。不过,两家公司都强调,随着新产能的增加,2019年的收入应该会有所改善。 虽然大多数较大的加拿大特许生产商强调,加拿大最终将是一个小部分的更大的国际机会,他们的股票价格的方向仍然很大程度上取决于他们在加拿大市场的表现。克罗诺斯公司的股票在盈利后两个交易日下跌了9.5%,而 CannTrust 公司的股票在报告当天暴跌了19%。 Pot Stock Leadership 这些下降还不足以让 Cronos 或 CannTrust 从标准普尔/ TSX 综合指数的排行榜上消失。今年第一季度,加拿大基准股指佳纳巴斯( Cannabis )前10名成分股中,有6只表现最好。Hexo 公司以87%的涨幅领先,其次是奥罗拉(Aurora) Cannabis 公司,上涨了78%。Cronos 排名第四, Aphria 公司排名第六, Canopy Growth 公司排名第七, CannTrust 排名第八。这些结果帮助该基准指数发布了19年来最好的第一季度。 大麻行业作为一个整体结束了每周略有下降,彭博情报的全球大麻竞争对手指数下跌1.2%。由于缺乏支持,新泽西州议员取消了计划中的合法化投票,来自边境南部的混合信息令股市承压。与此同时,众议院金融服务委员会( House Financial Services Committee )投票支持《 SAFE 法案》( SAFE Act ),该法案将允许商业银行向符合该州法律的大麻公司提供服务。 本周即将来临的事件 加拿大人口最多的省份安大略省将于4月1日,也就是合法化将近6个月后,在拉斯维加斯开第一家砖瓦砂锅店。坎纳比斯商业时报和坎纳比斯特许杂志将于4月1日至3日在柏林举行国际大麻商业会议。被称为“大麻产业欧洲最杰出的会议地点”的 CannaTech 将于3月31日至4月2日在特拉维夫主办一次大麻医疗会议,4月1日至2日,安图士资本控股公司将于4月1日下午8点30分在纽约时间上午8点30分发布第四季度业绩报告。电话预定在多伦多时间下午5点 我们过去一周的故事 Pot 的大规模扩张看起来像是2019年东北的一场风波 Pot Banking Bill 获得众议院委员会批准 Apvalhria 首席执行官对收入增长的信心,Snubs Green Growth Again Cronos Tumbles on Sales Miss Pot Company 转向 Altria 低成本 Pot 加拿大公司 Amid Stock Plunge Bedrochan 赢得 Canopy Case 后返回北美优先考虑前 Uber Man 领航欧洲 Cannabis Rules Cannabis Craze 进军中国股市