Cannabis in Germany

In shocking news out of Deutschland, BfArM, the federal agency responsible for the management of the first tender cultivation bid, has issued a notice that it is ditching the first tender bid and will start from scratch.

Shocking? This was the likely result after the March 28 decision from the German regional court.

It is also likely to be even more expensive. Not to mention require easy and quick access to European-based or at least easily confirmable pools of cash. It is conceivable that successful applications this time around will not only have to prove that they have a track record in a federally legal jurisdiction but will also have to be able to quickly access as much as 100 million euros.

The Big Three -- Canopy, Aurora, and Aphria -- from Canada can certainly raise that kind of money. We'll likely know the winners of this new process by next year.


The philosophy of parasites

The logic of slavery:

A person who refuses to work has the right to the fruits of labor from the rest of society! Why would farmers, construction workers, nurses, and doctors work for you for free?

Is it any wonder that socialism doesn't work?


Retarded multiculturalism

Daily Mail: The tragic truth about cousin marriages: They can cause a litany of genetic illnesses and they're a key factor in the deaths of two children a week in Britain, so why is it taboo to talk about them, asks SUE REID.

Because in the Western world, standards are for White people. When Pakis Asians engage in destructive behavior, the prudent and progressive way is to simply ignore the whole thing.

In British Pakistani and Bangladeshi communities, marriage between cousins is designed to strengthen the family and keep wealth intact.

But there are massive health risks involved for the children of such couples. And when they are tragically born with disabilities, it is taxpayers who are left to pick up the huge costs of their NHS treatment, which can run into millions over a lifetime.

Just another benefit of diversity.

Thousands more children of consanguineous marriages survive, but with appalling physical or mental problems. These include blindness, deafness, blood ailments, heart or kidney failure, lung or liver problems and a myriad of often incurable and complex neurological or brain disorders.

When these mentally ill and low-IQ Muslims try and fail to keep a job in the modern world, it's because of BIGOTRY, RACISM and ISLAMOPHOBIA! It's easy to blame the infidels than to face the fact that they are fucked in the head thanks to their parents, culture, and religion.

The likelihood of a couple having the same variant gene is a hundred to one in the general population.

In cousin marriages, that can rise to one in eight because those who are related to each other are more likely to carry the same faults in their DNA.

Yet despite the dangers — and the huge cost to the NHS — according to the BBC, it is estimated that 55 per cent of couples of Pakistani heritage in the UK are in cousin marriages.

Obviously, a tiny minority.


Bell vs. Rogers: Dawn of Gigabit

Unfortunately, this scorching speed is not available in my neighborhood:

Two of Canada’s biggest internet providers have slashed prices by about 45 per cent in parts of the country for their most advanced offerings, but industry observers say such skirmishes are usually very local and short-lived.

Bell Canada is offering a gigabit-per-second home internet package with unlimited data for $79.95 in parts of Toronto, down from $149.95, until the end of July.

The prices at Bell are really odd. For example:

  • Fibe 25: 25 Mbps, 350 GB monthly limit.
  • Gigabit Fibe: 1,000 Mbps, Unlimited usage.

Those two Internet plans have the exact same price -- $79.95!


Does the popcorn come with cocaine?

I had to re-read this headline to make sure I wasn't hallucinating: You Can Now Get Cineplex Movie Theatre Popcorn Delivered To Your House.

On top of popcorn, you can also get combos as well. The most popular item ordered during the pilot project was the 'Cineplex Movie Night In Combo' which features two medium popcorns, two medium candies and two medium drinks for $28.99.

Damn.

  • Medium popcorn for one (from a Costco pack) is $0.25.
  • Assorted candies go for $1 each.
  • A liter of pop is another $1.

Let's call it a generous $5 for a couple. Cineplex will deliver that for $29. That cold movie theater popcorn comes with a $24 premium. It would be cheaper to take a taxi for a round trip to your grocery store.


The "living" wage in action

Financial Post: Minimum wage hikes mean San Francisco restaurants can’t afford waiters, so they’ve put diners to work.

The small menu is so appealing and the place itself so charming that you almost forget, as a diner, that you have to do much of the work of dining out yourself. You scout your own table. You fetch and fill your own water glass. And if you’d like another glass of wine, you go back to the counter.

Soon, the restaurants will make you cook your own food. Hey, not everyone can afford the luxury of an Instant Pot at home!

On July 1, the minimum wage in San Francisco will hit US$15 an hour, following incremental raises from US$10.74 in 2014. The city also requires employers with at least 20 workers to pay health care costs beyond the mandates of the Affordable Care Act, in addition to paid sick leave and parental leave.

Thanks Obama!

If customers won’t buy $20 burgers, or $25 dosas, and the staff in the kitchen can’t be cut, that something is service. “And that is what we did — we got rid of our servers,” Mitra said.

Higher minimum wage = more unemployed people. Also, San Francisco has the worst real estate market in North America. Many upscale restaurants can't get waiters for an average American wage.

A few blocks from the original Souvla, at celebrated modern French restaurant Jardinière, chef Traci Des Jardins said her labour costs, including taxes and health care, now eat up 43 per cent of her budget.

When she opened Jardinière in 1997, they were 27 per cent.


No hospital for you!

When the maternity ward was closed at the hospital in the Solleftea district of northern Sweden early last year, the nearest alternative was 100 kilometers (60 miles) away by road. So the local midwives decided to teach expectant parents a new skill: how to deliver a baby in a car.

Ah, the joys of socialized medical care.

“We have money,” said Hanna Hedvall, 45, who lives in Solleftea and worked as a midwife at the maternity facility for six and a half years. “We may not be able to have specialist care across the country, but here we are talking about rather simple things.”

Then on top of that:

Resentment has built over the influx of more than 600,000 immigrants over the past five years, many from war-ravaged countries like Afghanistan and Syria, a huge number for a country of 10 million people.

Yeah, the government in Sweden can't build enough hospitals but it has no problem handing out billions of dollars to unwanted rapefugees.

There are also soaring crime rates, gang violence, complaints about education and pregnant mothers even being turned away from maternity wards due to a lack of capacity. The number of people waiting longer than 90 days for an operation or specialist treatment has tripled over the past four years.

This is not a unique or surprising phenomenon limited to Sweden. Canadians are experiencing delays when it comes to important surgeries. Why? Government debt, limited hiring of new doctors, and increasing population. If you're in this situation, then save as much money as you can for a medical emergency. When the bad news comes, travel to a country where doctors and surgeons take cash. It'll be expensive but it's better than waiting in line and risking serious decay or death.


The tyrannical heart

In addition to a minimum wage, this Leftist also supports a maximum wealth level:

Fuck off, Peter Daou. Your totalitarian impulse to control how much other people make doesn't make you a saint. Go out, make money, and help others with your own effort. Also, taking money with force from others doesn't mean that you are compassionate and generous. What you are is a rotten, stinking thief!

Also, isn't it funny that he limits wealth at a billion dollars when poor, starving kids around the world can't even make $1 a day. Shouldn't that wealth cap be at one million or, even better, at $50,000? Of course, that would make it difficult to pit the average idiot against the evil mega-rich.


The current marijuana leader

Canopy Growth Corporation reported its fiscal fourth quarter revenue today: $22.8 million. Their previous quarter was $21.7 million. Those are some lackluster numbers. The good news will be in the future:

Total licensed footprint exceeding 2.4 million sq. ft.; 200,000 clones prepared and shipped from Ontario to jump start cultivation in million sq. ft. greenhouses in British Columbia.

Their inventory was approx. 23,000 kg at the end of March 31, 2018. Those 200,000 plants should yield roughly 20,000 kg of marijuana. Add a few more thousand from their current Smiths Falls and Niagara facilities and on October 17, Canopy should have 50,000 kg worth of product for sale. At a reasonable $4 per gram wholesale price, that's $200 million of revenue in one quarter.

Let's see how close Canopy gets.

In the conference call earlier today, one question was about the total kilogram production of Canopy in the near-future. Bruce Linton, the CEO, refused to provide an explicit number. This is in stark contrast to Aurora Cannabis who have repeated their astronomical 570,000 kg of (future) annual production in the media.

For Canopy, when they get to their full six million sq. ft. of capacity, the minimum annual production should be 400,000 kg. The maximum? 600,000 kg.


Wynne's losing strategy

When Kathleen Wynne first announced plans to hike Ontario’s minimum wage to $15-an-hour, she argued the increase was necessary to create “fair workplaces and better jobs.”

[...] In Ontario, it was clearly politically profitable ahead of an election campaign for Wynne to champion millions of low-wage workers struggling to make ends meet, and paint Doug Ford –- then her chief rival –- as an enemy of the working poor.

That worked out well for the Liberals.

After Wynne hiked the minimum wage 21% in Jan 2017 (from $11.60-an-hour to $14-an-hour) employers — particularly smaller ones on tight profit margins — reacted by cutting jobs, cutting hours, cutting benefits, increasing automation and/or raising prices.

That's the insidious nature of minimum wage. Some of the very poor workers lose their jobs and they have great trouble finding work in an environment where many other employers are also cutting hours or firing workers.

What does help low-income families, Fraser suggests, are subsidies and cash transfers. Employers don’t care if employees pay less tax and get subsidies. They don’t react by cutting jobs, or hours or investment.


Toronto is the worst

Global News: Toronto ranked worst city for commuting in North America: study.

The report said an average commuter in Toronto spends 14 minutes waiting for a bus or a train each day. But even worse, the average person spends a staggering one hour and 36 minutes for their daily commute with an average journey distance of 10 kilometres.

If the average guy works 23 years in this case, then he would have destroyed a full year of his life in traffic. For too many people, it's worse.

I had to attend a conference in Toronto many years ago. I went with a colleague who drove his car. He wanted to leave at least two hours before the start of the event and so we did. We got to Toronto in about one hour. I thought to myself, "That wasn't so bad."

Then, it took us an additional hour to travel within Toronto to get to our destination. Obviously, my co-worker was fully aware of the atrocious traffic. So, we burned four hours in our commute.

Canada is the second largest country in the world. Of course, most of the land -- let's say 90% -- is not fit for habitation. Still, this means that the livable area in Canada is larger than Germany and France combined. So, why does Canada have crazy real estate prices in spectacularly tiny cities like Vancouver and Toronto? Why is Tokyo -- a city metro that can hold the entire Canadian population -- cheaper than the crazy cities of Canada? What's stopping people from building more houses in the stunningly empty parts of British Columbia and Ontario?

Government regulation is the likely culprit.


The loathsome Boomers

Just two years ago, the median American born in the 1980s — the cradle of millennials — had family wealth that was 34 per cent below what earlier generations held at the same age, the Federal Reserve Bank of St. Louis reported last month. And all the data show it’s probably going to get worse.

As affluent baby boomers thank years of soaring markets for their paid-off mortgages and plump portfolios, millennials and the next cohort, Generation Z, are weighed down by student debt and stagnant wages. They can only contribute the bare minimum to their retirement plans and struggle to find affordable homes within commuting distance of their jobs.

The last fifty years have given the Millennials in America the following:

  • Lower wages thanks to more women entering the workforce and immigration.
  • The Great Ponzi Scheme aka Social Security reaching its end.
  • Sky high tuition fees for useless degrees.
  • Overall higher taxes.
  • Debt.

But on top of all that, the Millennials and Generation Zyklon will have to deal with The Great War. What will that look like? The breakup of the once United States. The purge of Muslims and other morons from Europe. China flexing its muscles as the new superpower by taking resource-rich areas in Africa.

What can Millennials do?

  • Read history. You can learn a lot about the future by observing the past.
  • Scorching savings rate. Stop buying shit.
  • Ammo is your friend. Learn to shoot.
  • Stick with family and friends.
  • Get a dog. Or two.

Weed in Q4

The date for the start of retail marijuana sales has been set.

Prime Minister Justin Trudeau says recreational marijuana will become legal in Canada on Oct. 17.

[...] "We heard from provinces and territories who told us they needed more time to transition to this new framework, so our government will continue to work in full partnership with them, to ensure the smooth and orderly implementation of this new law across Canada," Trudeau told reporters during an end-of-session news conference.

I bet the province of New Brunswick is not happy. They got to work on legalization years ago. They signed a marijuana supply deal in September of 2017. Almost ten months later, many of the big provinces still haven't bothered with any supply agreements. This obviously created uncertainty for many firms who can't be expected to harvest and stockpile millions of dollars of product without some understanding from the big potential buyers (the provinces).

New Brunswick has their stores ready for July while Ontario and British Columbia have been sitting on their asses. Let's see what they can do in the next four months.


Canada legalizes recreational cannabis

One of the big campaign promises of Justin Trudeau has become reality:

Senators have voted to pass the federal government's bill legalizing recreational marijuana by a vote of 52 to 29, with two abstentions, paving the way for a fully legal cannabis market within eight to 12 weeks.

"I'm feeling just great," said Sen. Tony Dean, who sponsored the bill in the Senate. "We've just witnessed a historic vote for Canada. The end of 90 years of prohibition. Transformative social policy, I think. A brave move on the part of the government."

Retail sales will start in early September. The federal government will announce the exact date soon.


Pot worse than ISIS

Bill C-45 would make the giving or selling of cannabis to any person under the age of 18 a new criminal offence punishable by up to 14 years in jail, a sentence in line with facilitating a terrorist activity, threatening to commit a nuclear offence, bribing a judge, child luring, recklessly discharging a firearm, aggravated assault, torture and human trafficking.

14 years for threatening to commit a terrorist act? That's funny considering that dozens of ISIS terrorists have returned to Canada and their punishment has been zilch. Apparently, in Trudeau's Canada, sharing a joint with a minor will be more harshly punished than beheading infidels and raping girls.

Such terror-related laws have no meaning when the authorities simply ignore them. Likely the same will happen with this ridiculous 14-year nonsense for sharing a joint.

Visible minorities in Canada are already disproportionately arrested, charged and prosecuted for pot, and Spratt said there’s no reason we should expect that to change with legalization. (Nowhere is the white privilege more apparent than in the war on drugs, the McGill conference heard repeatedly.)

Just like the female privilege when it comes to crime in general?


The King of Weed

Aphria announced that it will raise $225 million on June 6, 2018:

Leamington-based marijuana producer Aphria Inc. is boosting production and building a $55-million extraction centre, as part of a $225 million expansion plan, to better serve a rapidly expanding market for marijuana edibles and alternative products like patches, dissolving strips, sprays and infused beverages.

In addition, Aphria could issue a further 2.84 million shares.

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 2,848,110 Common Shares at the Offering Price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the Offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$258,750,794.

So, nearly $259 million! That was the largest raise for any marijuana firm in history.

Canopy: Hold my beer.

The Company will issue C$500 million aggregate principal amount of the notes. Canopy Growth has granted the initial purchasers of the notes an option to purchase up to an additional C$100 million aggregate principal amount of notes. The offering was upsized from the previously announced C$400 million aggregate principal amount.

That's $600 million today from a possible future 5% dilution. Absolutely staggering.


Bruce on the loose!

Bruce Linton, the CEO of the first and so far only marijuana company on the NYSE, spoke in New York on June 1.

The NYSE behaved in a very gutless manner when they didn't allow Linton to ring the bell on Wall Street. They have no qualms about taking hundreds of thousands of dollars annually from Canopy for the listing but they don't want to be too closely associated with a marijuana firm!?

Anyway, CGC will survive. The best part was the Q&A at the end. Linton's answer to the very last question was quite revealing. He didn't shy away from telling us about the numerous failures his company experienced in the beginning. That was refreshing since many other CEOs only talk about rainbows, gold, and unicorns. As long as Canopy seriously learns from its mistakes and continues to be geographically diversified, it'll most likely succeed.


No time for oil

Drivers love to complain about the price of gas, but when it comes to taking action they are not willing to join forces.

A gas price protest scheduled for Wednesday morning sputtered to a stop when one solitary protester showed up.

The contrast between the grinning cops and the body language of the protester is absolutely hilarious.

No time for oil

Easy work for the police today:

Montreal police had even stationed half a dozen officers in patrol cars at the mall, ready to supervise the protesters on their planned slow-moving route.


The ROBELUS Oligopoly

It's data mania in Manitoba:

Looks like Manitoba is quickly becoming a hotbed for wireless competition. The reason for the ramp-up in activity could be the recent Bell/Mts merger, or the pending launch of Xplornet’s wireless service.

Late last week, Rogers unveiled a $70/20GB and $80/30GB Manitoba-only Share Everything plan promo plans for new and existing customers.

I checked out the plans offered by Rogers.

Manitoba: Unlimited Canada wide calling + 30GB of data. Price: $90 per month.

Ontario: Unlimited Canada wide calling + 12GB of data. Price: $145 per month.

Customers in Ontario are getting 40% of the data while paying 61% more!


Soylo didn't shoot

Forget paying for it, I wouldn't watch it if it was free:

They're expecting Soylo: A Soy Wars Soyry to earn the least money of any Disney Soy-based entertainment.

The industry had been expecting, I thin, a $170 million domestic haul over the four-day Memorial Day Weekend (five, really, given that it opened Thursday night), but that had then be reduced to $150 million, and then to $130-$150 million, and then reduced again to $120 million.

The Chinese are really not interested in watching shit:

Soy Wars has not been popular in China. But Soylo just bombed worst than most in its opening night in China -- only $120,000 for midnight screenings in all of China, a nation of a billion and a half, according to a Chinese film industry analyst.

Women ruin everything:

Kathleen Kennedy really has no idea what she's doing. She spent most of her career as an assistant to Steven Spielberg. Now in charge, the only idea she has is to make every 90 pound girl a UFC champion-level badass and make random characters gay (or "pansexual").


Small change

Aurora and MedReleaf are amending their agreement:

Aurora and MedReleaf have agreed to amend the Original Agreement to include, in the consideration payable to holders of MedReleaf's common shares, (each a "MedReleaf Share"), $0.000001 in cash for each MedReleaf Share. As a result, the consideration under the arrangement has been increased from 3.575 Aurora common shares for each MedReleaf Share to 3.575 Aurora common shares and $0.000001 in cash for each MedReleaf Share.

All the shareholders of MedReleaf combined will get ... $100 in cash. Why are they making such a comical change?

Taxable Canadian resident MedReleaf shareholders will be entitled to elect to receive tax-deferred roll-over treatment in connection with the acquisition by Aurora of their MedReleaf Shares.

Yup. Tax reasons. It's funny that Aurora wasn't aware of this a few weeks ago.


The Tesla saga continues

Elon Musk has repeatedly mentioned the $35,000 price for his Model 3. The problem? Tesla can't make money with such a "low" price. In fact, last year Tesla lost $225,000 per hour.

Musk unveiled specifications for a faster and more powerful version of the Model 3 in a series of tweets over the weekend. It will cost US$78,000, more than double the US$35,000 base-model starting price discussed into the run-up before the electric car’s deliveries started last year. And that doesn’t include the Autopilot driver-assist feature.

Losing $2 billion in a year does focus the mind. Anyway, I don't know even one person who would buy a Model 3 at $35,000. The masses will have to wait for their electric nirvana.

“A Model 3 with a US$35,000 price will be the rarest of the rare,” said Kevin Tynan, a Bloomberg Intelligence analyst. “Perhaps the second most collectible Tesla ever, behind the one floating around in space.”

That's funny.


Oh Canada!

The shorts who didn't cover in the past few days will get annihilated tomorrow:

Canopy Growth Corporation (TSX: WEED) ("Canopy Growth" or the "Company") is pleased to announce that it expects its common shares will begin trading under the ticker symbol "CGC" on the New York Stock Exchange (the "NYSE") tomorrow, May 24, 2018.

This listing follows a history of firsts for the Company including being the first publicly traded, federally regulated cannabis company in North America, and the first to be included in the S&P/TSX Composite index.

That's funny. The NYSE is two hundred years old and the first cannabis company to ever publicly trade on it is not even American!

Anyway, the real test for Canopy will come when the US legalizes marijuana. Shrewd Trump will eventually do it and then take credit for the mega multi-billion dollar industry.


Weed in the US

Canopy Growth, the Smith Falls, Ont.- based cannabis company, has applied to list its shares on the New York Stock Exchange.

Canopy is already one of the largest marijuana companies in Canada and its shares trade on the Toronto Stock Exchange under the symbol WEED. But the move to cross-list on the NYSE may open the company up to new investors in the United States.

Canopy Growth will become the first cannabis company on the NYSE. The inflow from US investors, foreign investors, and index funds will mean only one thing: a spike in the stock price. It closed at $30.3 last Friday. Let's see where it is by the end of May.

And then the June 7 vote arrives ...


Aurora buying Medreleaf

Aurora bought CanniMed for roughly $1 billion barely a few weeks ago. That was the largest acquisition in the cannabis industry. Now, according to market capitalization, the second biggest marijuana company will soon acquire the third biggest cannabis producer in Canada:

Aurora Cannabis, one of Canada’s largest licensed weed producers has scooped up rival cannabis producer MedReleaf in a $3.2 billion all-stock deal that sets the stage for Aurora to become the world’s biggest legal weed producer.

The next part is quite funny:

Combined, Aurora and MedReleaf have the funded capacity to produce 570,000 kg per year of cannabis through nine facilities in Canada and two in Denmark, far surpassing the likes of Canopy Growth Corporation, the country’s biggest weed producer which is currently licensed to produce 31,000 kg of weed and weed-related products.

The author just compared the future unlicensed capacity of Aurora to the supposedly current licensed production of Canopy. What's funny is that the first number might not materialize while the second number is false.

Canopy Growth is currently licensed to produce 31,000 kilograms of marijuana and related products, and aims to triple that by July next year, the deadline the federal government has given provinces to make pot legal for all.

The deal gives Canopy 450,000 square feet of greenhouses that can be immediately added to its existing 350,000 square foot facility in Niagara-on-the-Lake, Ontario. It is also building an additional 200,000 square feet of greenhouse capacity on its existing property.

That information is from Sep. 7, 2017. Today, Canopy Growth is in the process of finishing 6 million sq. ft. of total capacity. Bruce Linton, the CEO of Canopy Growth, hasn't been explicit and precise about the total yearly production of his company. He has only stated that it'll be in the hundreds of thousands of kilograms.

Anyhow, now the battle is set for the heavyweight title: Canopy vs. Aurora. Let's see who sells the most in 2019. We'll know the top line by February 2020.

Update
The War of the Words has already begun.


The tale of Aphria

Windsor Star:

Leamington marijuana producer Aphria Inc. is on a hiring spree, filling several high-level positions as it prepares for legalization in Canada while also gearing up for a surge into the global market.

After Aurora went after CanniMed, Aphria also got acquisition fever:

In January, Aphria announced it bought global marijuana retailer Nuuvera for $826 million, and licensed producer Broken Coast Cannabis Inc. in B.C. for $230-million.

Aphria was way too conservative in the past few years. They were profitable which looked great but now the CEO says:

“Between myself and my executive management team, we thought we built enough forward-thinking capacity, but we were so wrong,” he said. “We would have loved to have been in a position right now that we could feed all the provincial hungry mouths that we know are asking for product.”

That's quite an admission. Aphria has had a nice profit every quarter for the past few years. That would certainly have gained them some nice attention from the Big Banks but the executives invested in the United States. Juicy margins but that's illegal. That retarded move limited their access to capital.

Now, Aphria has to sell its US investments and buy other companies to get ready for recreational legalization.

Canopy Growth Corp. has over $100 million of marijuana in inventory. By July, they will easily double that. Let's see how much Aphria has for sale in Q3 of this year.


Skewered

Men are just the worst.

Not cool Tesla

Tesla Inc chief Elon Musk’s refusal to answer “boring” Wall Street questions about the electric car maker’s financial condition sent shares down as much as 7 percent on Thursday and spurred concerns about its ability to raise money in the future.

Tesla just burned over $1 billion in three months. How long can a company survive with that kind of negative cash flow? Who is going to give capital to Tesla after this response?

In a conference call on Wednesday, Musk refused to answer questions from analysts on Tesla’s capital requirements, saying “boring questions are not cool.”

Tesla got tremendous attention because of the crazy acceleration of its cars and the high-tech wizardry inherent in its various products. But now, the bigger problem for Elon Musk is competition ... rich German competition:

VW, BMW and Mercedes-maker Daimler have increased their investment in electromobility, aiming to produce e-cars at a fast clip reliably and find the customers willing to buy them. The German automotive industry invested €4.7 billion between 2016 and 2017 in adapting its factories, more than all the other big competitors together, according to an analysis by consultancy EY.


Ludicrous comparison

Financial Post: 'An absolute gong show': Move over Vancouver, Canada’s craziest housing market is now in Whistler.

A couple of problems with this story:

  1. The core population of Vancouver is 650,000. The Greater Vancouver Area has roughly 2.5 million people. The population of Whistler? 10,000. It's a town built around a tourist area. Most Canadians aren't even aware of its existence.
  2. Why does the story have a photo of Jasper National Park? That park is 400 kilometers away from Whistler. It's so far away that it's in a different province!

The Canadian cannabis space

Financial Post: How the CEOs of Canada's four biggest cannabis companies are gearing up for legalization.

The final vote for the legalization of recreational marijuana in Canada is just five weeks away. It it passes, then in terms of revenue growth rate in the next two years, no other industry in the world is going to come close. Let's see who gets to one billion dollars in yearly top line first. My bet is on Canopy Growth Corp.


Open your wallets for whamen!

The Toronto Star: ‘Free the Tampon’: Canadian campuses aim to offer menstrual products for free.

Centennial College, in particular, has been resetting the coin-operated dispensers in restrooms across the school’s campuses in the Toronto area to provide pads and sanitary napkins free of charge, rather than the standard 25-cent fee.

[Emphasis mine.]

The motto of feminism: I have a vagina. Now, give me free shit!


Canadian stock market fail

The TMX Group provides info on why most of the Canadian stock market simply stopped working on Friday afternoon:

The outage, which began at 1:37:25 pm EDT Friday on MX and 1:39:13 pm EDT on TSX, TSXV, and TSX Alpha, was caused by a hardware failure in a central storage appliance of the trading system. This hardware failure impacted both the primary and the redundant components preventing storage failover procedures from engaging.

Wait. One hardware malfunction takes out both the primary and redundant parts of the system? Looks like the TMX Group should pay for a better setup.


Ignoring economics

Elon Musk knows that if oil becomes prohibitively expensive, then people will switch to electric cars. He wants to accelerate the process. Of course, that means crippling and mounting losses.

The point about the grand forecasts of Musk is undeniable.

For example: In early 2016, Tesla's production forecast for 2020 was 500,000 cars. That was quite an optimistic outlook since the amount of capital, infrastructure, and batteries needed would be staggering. But then, in May 2016, Elon Musk stated that Tesla will produce 500,000 cars in ... 2018!

Let's see the Tesla production numbers from the past few years.

  • 2015: 51,095
  • 2016: 83,922
  • 2017: 101,027

Just a tiny 395% increase in production for the year should do it!

The original Tesla forecast for 2018 was 200,000 cars which Elon Musk bumped up to 500,000 cars! Now, even that initial projection looks wild. I guess those insanely optimistic numbers got him a lot of money but now that he has built up a record of delays and failures, the investors are going to fold their arms.


Canadian stock market croaks

I was checking a Canadian stock quote an hour ago and noticed that it was stuck at 1:39 p.m. The US tickers were working as usual. A halt, perhaps? Nope. The whole Canadian stock market had frozen.

The TMX Group says technical problems have affected the Toronto Stock Exchange, Montreal Exchange and other markets it operates.

The Toronto-based company issued a series of notices by Twitter to alert all users of its trading services.

This is embarrassing:

It wasn't a crazy, high-volume day. So, what happened? Did some diversity hit the fan?


Location, location, location

A Supreme Court of Canada ruling on interprovincial beer imports has sparked fears that provinces and territories will be free to impose restrictions on cannabis flowing over their borders at a time the industry is in its early stages of growth.

In its ruling on the so-called free-the-beer case, the top court said provinces and territories can restrict imports of goods, as long as their intent isn't to impede trade.

(Laughs.) The intent part is hilarious. Trump should use that line.

Kujath worries other provinces will restrict imports of outside cannabis products and give local growers special advantage.

Obviously. Each province wants its jobs, economic growth, and higher tax revenue. Just look at Quebec which announced an epic five-year supply deal with an in-province company called Hydropothecary. The solution is simple: other provinces should do the same.

Last year, I thought that Canopy Growth had an odd strategy. They were building or buying infrastructure for growing marijuana in seven provinces. This means that their average cost per gram wouldn't be as low as other efficient growers. Now, their plans make more sense. If provinces are going to give preference to local production, then the average cost becomes irrelevant -- it's geography that's more important.


The Weed Empire

CBC News:

The smell of marijuana wafting through the airplane on the YVR airport tarmac on Thursday wasn't overpowering, but it left no doubt as to what the huge white boxes filling the plane contained.

Cannabis giant Canopy Growth shipped more than 100,000 tiny pot plants, or clones, from a nursery facility in Ontario to its new greenhouse in Delta, B.C.

Yeah, they did the same thing two months ago:

Just six weeks ago, Canopy invited CBC News to check out its facility in Langley, which it claimed was the largest pot production facility in the world, with 1.2 million square feet of growing space. But now, as the company puts the finishing touches on the Delta greenhouse, it's making new claims on the title. The facility will measure 1.7 million square feet.

There are companies in Canada that have been trying for years to get a license (MGW) or to fully build their greenhouse (ACB). Canopy started converting these pre-built greenhouses in December 2017. They've got the two licenses and 200,000 plants. That's some scorching execution in just five months.


The state of US weed

Canopy Growth Corp. owns the largest legal marijuana greenhouse in Canada today. Its area is 1.7 million sq. ft. The second largest is also owned by them. Its area is 1.3 million sq. ft. Both are in British Columbia.

Aurora Cannabis will soon build the third largest -- 1.2 million sq. ft. -- in Alberta.

It will take some time for the US to catch up: I Went on a Tour of America's Biggest Legal Weed Factory.

The site features a sterile tissue culture lab where plants are sliced up and multiplied, a purple-lit cloning room where weed grows in test tubes out of agar jelly, a $4,000 Futurola grinder capable of shredding three pounds of flower in two seconds, and a 26,000-square-foot Dutch-designed warehouse that will soon be home to 25,000 plants. Manufacturing manager Jeff Spinder says the factory will be capable of producing 10,000 pounds of marijuana every year.

[Emphasis mine.]

That's roughly 4550 kilograms or 0.175 kilograms per sq. ft. That's a staggeringly optimistic prediction of yields. Let's say that in Canada, the producers manage only 0.1 kg per sq. ft. Then, for 2019, the largest Canadian company will likely be harvesting 66 times the amount of the largest US company.

Trump can have a huge winning issue if he decides to make marijuana legal.


Canopy goes for Czech mate

The Weed King expands its empire:

("Canopy Growth" or the "Company") is pleased to announce that the Company has signed definitive agreements to acquire Annabis Medical s.r.o ("Annabis Medical"), expanding the Company's focus into another emerging medical cannabis market. This transaction is scheduled to close Monday, April 16, 2018.

Annabis Medical is the leader in the Czech Republic's medical cannabis industry and currently imports and distributes cannabis products pursuant to federal Czech licenses, with products for sale through pharmacy channels across the Czech Republic. Its founder and CEO, Dr. Robin Kazík, will continue to lead and grow the Czech subsidiary as part of the larger Canopy Growth family.

So, it looks like the Czech company doesn't lose any employees and it gets the largest marijuana firm on Earth as its supplier. Win-win.

Under the terms of the agreement, the Company will issue Dr. Kazík 50,735 common shares in the capital of the Company valued at $1,491,882.70 on closing and, subject to meeting certain milestones, will issue up to an additional 34,758 common shares valued at $1,022,080.00, based on the 5 day VWAP of $29.40519 on April 5, 2018. The total value of the consideration payable under the terms of the agreement is approximately $2,513,962.70. All amounts are in Canadian dollars unless otherwise noted.

That's it!? Considering the hundreds of millions of dollars of dilution by Aphria and Aurora in the last few months, this acquisition is shockingly cheap.


The God Emperor approves

Trump won't take on 29 states which have legalized medical marijuana.

President Trump is going green — and Attorney General Sessions is likely seeing red.

Trump announced Wednesday that he will back congressional efforts to protect states' rights to legal marijuana, according to a Republican senator.

Trump is a businessman and a shrewd politician. By supporting marijuana legalization, he'll be removing uncertainty from a multi-billion dollar industry. Jobs, incomes, and tax revenues will go up. Plus, the super-conservative states that don't want marijuana are free to follow their paths.

Also, it's not like the Democrats are going to oppose Trump on this issue. He'll likely be taking credit for The Weed Boom in his second term.


The Departure of the Dongs

A Ho Chi Minh City-based company is being denounced as a scam that has swindled a hefty sum out of a purported 32,000 victims by duping them into investing in virtual currencies to earn easy, ‘real’ money.

That's a lot of suckers. 6% annual growth would be a reasonable estimate for the US stock market. The "investors" of this Vietnamese scam were promised over 600% per year!

Investors have been told that they would enjoy a profit rate of 48 percent a month from their initial investment, and recoup all investments after four months. People would also be rewarded with an eight percent commission for every new member they have introduced to the network.

Everyone wants to be a lottery winner today. The tried and tested but excruciatingly slow method of building wealth is beyond most people.


Drug dealers with badges

Eight Argentine police officers have been dismissed for blaming missing drugs on mice.

Investigators discovered 540kg (1,191lb) of marijuana missing from a police warehouse in Pilar, north-west of Buenos Aires.

540 kilograms! Damn. That's a lot of mice.

A spokesperson for Judge Adrián González Charvay said that according to experts at Buenos Aires University, "mice wouldn't mistake the drug for food" - and even if they did, "a lot of corpses would have been found in the warehouse".

Legal Canadian growers get around $7.50 a gram. Assuming that the Argentinian "mice" got $1 per gram, that's a cool $540,000.


Canada vs. China

China politely tells the Canadian prime minister to fuck off:

China's ambassador has firmly rejected a key pillar of the Trudeau government's trade agenda, branding its attempts to entrench labour standards in a free trade pact as a non-starter for his country.

Ambassador Lu Shaye said Tuesday that Canada's "so-called" progressive trade agenda has no place in the free trade agreement the two countries have been pursuing in fits and starts for several years.

What! No gay pride parades in China!? Won't they accept tens of thousands of Muslim rapefugees!? No safe spaces for snowflakes in China!?

Sad!


How to create misery

There is a bias in climate policy shared by analysts, politicians, and pundits across the political spectrum so common it is rarely remarked upon. To put it bluntly: Nobody, at least nobody in power, wants to restrict the supply of fossil fuels.

Policies that choke off fossil fuels at their origin — shutting down mines and wells; banning new ones; opting against new pipelines, refineries, and export terminals — have been embraced by climate activists, picking up steam with the Keystone pipeline protests and the recent direct action of the Valve Turners.

Millions of workers will lose their jobs and consumers will pay significantly higher prices for energy. But hey, the "climate activists" will feel good about themselves.


BMO warms up to weed

Bank of Montreal is giving a platform to marijuana growers in Canada:

Bank of Montreal is pushing deeper into the marijuana sector by assigning an analyst to cover the space and holding its first cannabis conference at the end of May.

Who will show up?

The chief executive officers of Canadian growers Aphria Inc., Aurora Cannabis Inc., Canopy Growth Corp., Cronos Group Inc. and MedReleaf Corp. are set to make presentations at BMO’s conference.

Wow. All the big guns will be presenting. Hopefully, there will be a video or a transcript.