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Buzz on the Bullboards: The Cannabis Comeback?


Stockhouse Editorial
2 Comments| April 7, 2022

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After a century of cannabis prohibition, it should not come as any surprise that the normalization of cannabis laws in North America (and around the world) has been a slow, uneven process. Despite how clumsy and inefficient North American governments have been in executing this transition, recent events at the US federal level has been igniting a new interest in the market.

It is just the right time for a reinvigorated look at the market, as many of its top producers are rolling out new products and initiatives both south of the 49th parallel and here at home across Canada.



For example, Tilray Inc. (TSX: TLRY, Forum) subsidiary Manitoba Harvest will debut their Hemp+ Matcha and Hemp+ Supergreens powders at 300 plus Whole Foods Market locations.

Manitoba Harvest is a pioneer and leader in branded hemp-based foods. Its president, Jared Simon, commented on the news.

“We are thrilled to be working with Whole Foods Market to launch our new Hemp+ powders, Matcha and Supergreens.

Whole Foods seeks out the finest natural and organic foods available. This exclusive release is a testament to our product quality and hemp’s increasing popularity.”

Manitoba Harvest’s Hemp+ Matcha and Superfoods powders combine the power of hemp with complementary on-trend plant-based ingredients. Consumers can choose between the added benefits of Matcha-based caffeine or 8 Essential Vitamins & Minerals coming from Supergreens. Each serving contains 6 grams of plant-based protein and 2-3 grams of fibre from hemp.

Megan Causgrove, Global Category Merchant, Whole Foods Market added,

“Whole Foods Market is excited to bring customers an expanded offering of innovative formats within our hemp seed segment that provides multiple benefits in one convenient product. Manitoba Harvest consistently provides well-positioned, quality products that we know will satisfy and delight our consumers.”

For a limited time, Manitoba Harvest’s Hemp+ Matcha will be exclusively available in 348 Whole Foods Market locations, while the Hemp+ Supergreens will be available for purchase in 382 stores across North America. After 90 days, both products will continue to be available at Whole Foods Market and other locations throughout the US and Canada.

A leading natural and organic foods retailer, Whole Foods Market has more than 500 stores in the United States, Canada, and the United Kingdom.

In its third quarter fiscal year 2022 financial results this week, Tilray reported profitable quarter net income of $52.5 million and adjusted EBITDA of $10.1 Million, its 12th consecutive quarter of positive adjusted EBITDA. Its net revenue increased 23% to $152 million; gross profit increased 31% to $39.8 million from the prior year quarter.

This brings us to our Investor Pulse Poll for the week, where we asked what supplementary cannabis market you are most excited for. It seems the edibles segment still reigns supreme.



New Buzz, new Investor Pulse Poll. This time, we look at the tech sector, which has contributed to market volatility of late, does this make you more interested, or averse to the market? Let us know your thoughts by clicking the image below to cast your vote.


(Click image to vote.)



What the "Buzz"

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A technology-focused company with exposure to Artificial Intelligence and Machine Learning, Datametrex AI Ltd. (TSX-V:DM, Forum) and its subsidiary, Nexalogy, have successfully completed the first phase of its AI contract with the Canadian government.

Nexalogy’s Social Media Automated Reporting Technologies (SMART) significantly speeds up the analysis of social media influencer activities with the goal to stop the spread of misinformation and propaganda online.

“With our Nexalogy software being trusted in the global misinformation war by government agencies, this proves our technical advantage when it comes to social media intelligence and data analysis”, said, Datametrex CEO Marshall Gunter.

According to the analysts of Mordor Intelligence, the cyber security market is expected to reach $352.25 billion (USD) by 2026.

SMART reduces the time needed to interpret and integrate large sets of data by offering powerful automated analyses.



Finally, looking at the Industrials market, we highlight the recent performance of Eguana Technologies Inc. (TSX-V: EGT, Forum), who designs and manufactures high-performance residential and commercial energy storage systems.

EGT announced this week that it had entered into a loan agreement for up to $10 million (USD) with Western Technology Investment (WTI).

WTI pioneered the concept of venture debt to fill a significant capital gap in the market.

“We have expedited full turnkey manufacturing and supply chain activities to Omega EMS and this growth capital will be immediately utilized to support further production capacity increases, Enfuse launch volumes, and battery module supply,” explained Eguana CEO, Justin Holland.

“WTI has remained a key partner for Eguana for a number of years, recognizing the strategic market position the team has put in place and the near-term revenue opportunities with both the storage solutions and the micro inverter launch.”

The loan has first priority over all assets of the company and its material subsidiaries.

This week, the company intends to draw $5 million (USD) under the terms of the loan.

An additional $5 million (USD) is available through August 31, 2022, upon the company achieving revenue of at least $14 million (CAD) between May 1, 2022, and July 31, 2022, and the company having unrestricted cash of $10 million (CAD) at the time of the draw.

Each draw will bear interest at a rate of 12% per annum, with interest-only payments being paid during the first six months, followed by both principal and interest payments being paid in equal installments over a period of 30 months, commencing on the six-month anniversary of the relevant draw.

The company may prepay the loan by paying all scheduled but unpaid payments, subject to a scaling discount off future interest owed depending on the date of repayment.

As consideration for the advance of the loan, the company has issued common share purchase warrants, entitling the lender to purchase up to an aggregate of up to 4,934,309 common shares of the company at a price of $0.355 per common share for a period of five years from the date of the loan.

Come to Stockhouse to network with Canada’s largest community of small-cap investors as Stockhouse’s stock hounds look to identify the next winner. And check out Buzz on the Bullboards every week for additional tips and information on what’s hot and what’s not.

For previous editions of Buzz on the Bullboards: click here.



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FULL DISCLOSURE: Datametrex AI Ltd. is a client of Stockhouse Publishing.


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