Aphria rises after Citron sells, MedMen sued by former CFO

PLUS CannabisWatch: The Green Organic Dutchman is still building but not selling, tiny weed producer wins POT ticker lottery


Short seller Andrew Left said early Friday he was exiting his position in Canadian cannabis producer Aphria Inc. and had begun to short Cronos Group Inc., citing its high valuation relative to analyst price targets.

Left’s Citron Research said Dec. 18 that it expected Aphria shares to climb to $8 by the end of 2018, and in a Friday tweet said the stock had gained more than 60%. In the Dec. report Citron said it expected Aphria to gain 40% by the end of last year. Aphria APHA, +0.09% APHA, +9.99%  stock is up 14% in Friday trading, and has gained 89% since Citron made its call.

Citron did not return a request for comment.

In the same tweet, Citron said that it was short Cronos CRON, -0.34% CRON, +6.17%  because the stock was trading 70% above sell-side analyst estimates. According to FactSet, there are seven analysts covering the name, with an average target price of $17.61. Including Friday’s rise of 7.5%, Cronos is trading roughly 57% above the average target price, according to FactSet.

Green Growth makes hostile bid for Aphria official

Cronos stock rose 60% since it announced the $1.8 billion investment in the company by Marlboro-maker Altria Group Inc. MO, +0.10%  Thursday, Altria’s CEO said he expects the global cannabis market to reach $40 billion in 10 years with no new cannabis legalization laws, and $250 billion if pot were legal the world over. He said the company wasn’t planning to stop at Cronos when investing in the industry.

Cannabis stocks largely gained Friday, with the Horizons Marijuana Life Sciences Index ETF HMMJ, +2.05%  rising 2.5%, and the ETFMG Alternative Harvest ETF MJ, +1.82%   increasing 2.8% in afternoon trading. The world’s largest pot company, Canopy Growth Corp. CGC, +0.01% WEED, -0.67%  gained 1%, Aurora Cannabis Inc. ACB, +0.13% ACB, +3.98%  is up 3.6%, and Tilray Inc. TLRY, +1.76%  is up 1.9%.

Other cannabis news
- MedMen Enterprises Inc. MMNFF, -7.06%  Chief Financial Officer James Parker, who resigned from his post in November amid an equity raise which it cut in half, is suing the company in Los Angeles Superior Court for breach of contract and wrongful termination, among other things. At the time, MedMen refused to comment on the CFO departure and said cutting the financing nearly in half was due to a “significant selloff” in the global market.

The American pot retailer said early Friday that it expects to report fiscal second-quarter earnings Feb. 27 after the closing bell.

- Canadian weed producer The Green Organic Dutchman TGOD, +4.55% TGODF, +5.13%  — which has not yet sold any pot in the recreational market but is valued by investors at roughly $1 billion — also rose Friday, after it said would be able to increase its capacity to grow cannabis to 202,500 kilograms a year from 156,000 kilograms a year at its facilities in Canada. However, the company also said several phases of construction would be complete either at the long-end of the company’s previous projected schedule, or delayed until 2021. Dutchman stock is up 7% in Friday trading.


- Weekend Unlimited Inc. WKULF, +145.26%  said Friday that it was the winner of Canada’s lottery for the POT ticker. Weekend Unlimited is a tiny cannabis company with a market capitalization of $46 million and no revenue to speak of in 2018, according to FactSet.

“There has been tremendous excitement generated globally for the POT symbol. The POT lottery served to raise the profile of Canada’s leadership in legal recreational cannabis and we believe it will also serve to raise Weekend Unlimited’s leadership profile,” Chief Executive Paul Chu said in a statement. Weekend Unlimited’s over-the-counter shares rose 122% to $0.18.

- Earlier this week Canada-based Organigram Holdings Inc. OGRMF, +1.12% OGI, +0.90%  said it had rolled more than one million joints.

WEEKEND UNLIMITED WINS THE “POT” LOTTERY

February 01, 2019 12:05 AM

“POT” LOTTERY GENERATES GLOBAL INTEREST AND EXPOSURE FOR CANADA’S LEADERSHIP IN CANNABIS LEGALIZATION

VANCOUVER, BC, CANADA (1 February 2019) – Weekend Unlimited Inc. ("Weekend" or the "Company") (CSE: YOLO – FSE: 0OS1) has been informed by the Canadian Stock Exchange (CSE) that it has won the lottery for the trading symbol POT.

“Weekend Unlimited is thrilled to add the iconic POT trading symbol to its identity,” said Mr. Paul Chu, Weekend Unlimited President and CEO. “As a fast-growing multi-state operator, Weekend Unlimited is developing lifestyle brands around recreational and wellness to help define the future of the cannabis industry. The POT symbol is a tremendous fit with our brand identity.”

The Canadian Securities Exchange, collectively with Toronto Stock Exchange (“TSX”), TSX Venture Exchange, and Aequitas NEO Exchange (together the “Exchanges”) announced the lottery for the POT symbol in January 2019. With the symbol in high demand, many eligible issuers currently listed on any of the Exchanges, or applicants who have made listing applications to the Exchanges, submitted ballots for the POT symbol.

Added Mr. Chu, “There has been tremendous excitement generated globally for the POT symbol. The POT lottery served to raise the profile of Canada’s leadership in legal recreational cannabis and we believe it will also serve to raise Weekend Unlimited’s leadership profile.”

Weekend Unlimited expects to begin trading with the new symbol POT on Monday, February 4th, subject to confirmation by the CSE.

For further information, please contact:

Mr. Paul Chu, President and CEO

Telephone: 1 (236) 317-2812 - Toll free 1(888) 556-9656

E-mail: IR@weekendunlimited.com

-

About Weekend Unlimited Inc.

Weekend Unlimited is capitalizing on its vast industry relationships to establish a lifestyle brand featuring premium products and delivering life’s highest moments.

The company aggregates and scales small to medium brands, primarily in the categories of flower, extracts and edibles. Weekend Unlimited brands have best of class operations, distribution and strong revenue trajectories, making them ideal candidates for the deployment of capital and expertise through access to technologies, infrastructure and centralized systems. Learn more at www.weekendunlimited.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Short-seller Andrew Left of Citron Research sounds off: take profits in Aphria, short Cronos Group

Famed short-seller Andrew Left of Citron Research was taking profits in Aphria Inc (NYSE:APHA) while shorting Cronos Group (TSE: CRON) on Friday. 

Markets didn't seem fazed by the news, with shares of Aphria up 8.7% to $9.50 USD

in afternoon trading while Cronos Group (CRON) climbed 8.5% to $21.35.USD

In a tweet, Citron Research said it was focusing investing effort on US cannabis stocks, having decided that "Canadian weed" has "run too far". 

Aphria shares also saw a boost, thanks to a Bloomberg report saying that Green Growth Brands is flexible and open to negotiations about its unsolicited bid for the Canadian cannabis company. Under the deal’s current terms, Ohio-based Green Growth has offered Aphria stakeholders 1.5714 shares of Green Growth stock for each Aphria share.

CIBC focuses on handful of players 

Left pointed to a report by CIBC released earlier this month that said it expects only a handful of players to end up dominating the global cannabis market.

“We believe Canopy and Cronos are likely to be two of those winners,” the authors wrote in the report, which was titled “The Beginning Of A Global Seismic Shift.”

“We view Aphria as a manufacturing and automation expert but believe concerns about capital allocation and corporate governance could deter investors," said the report. 

https://www.proactiveinvestors.com/companies/news/213836/short-seller-andrew-left-of-citron-research-sounds-off-take-profits-in-aphria-short-cronos-group-213836.html

Hexo Buy And Sells

House Positions for C:HEXO from 20190201 to 20190201

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
79 CIBC	2,756,529	20,847,043	7.563	1,995,376	15,089,170	7.562	761,153	-5,757,873
7 TD Sec	1,237,836	9,360,266	7.562	1,053,598	7,949,029	7.545	184,238	-1,411,237
65 Goldman	61,002	460,232	7.545	2,245	17,051	7.595	58,757	-443,181
35 Friedberg	36,267	272,757	7.521	0			36,267	-272,757
39 Merrill Lynch	337,547	2,553,177	7.564	311,477	2,350,358	7.546	26,070	-202,819
99 Jitney	123,700	934,685	7.556	106,200	804,951	7.58	17,500	-129,734
19 Desjardins	218,123	1,646,263	7.547	210,984	1,589,363	7.533	7,139	-56,900
74 GMP	61,300	459,026	7.488	54,300	407,650	7.507	7,000	-51,376
85 Scotia	408,229	3,091,524	7.573	404,915	3,059,020	7.555	3,314	-32,504
57 Interactive	10,096	76,747	7.602	7,718	57,573	7.46	2,378	-19,174
124 Questrade	120,048	908,627	7.569	118,339	892,352	7.541	1,709	-16,275
76 Industrial Alliance	2,400	18,125	7.552	900	6,768	7.52	1,500	-11,357
143 Pershing	5,973	45,231	7.573	5,684	43,482	7.65	289	-1,749
89 Raymond James	1,300	9,826	7.558	1,500	11,140	7.427	-200	1,314
36 Latimer	4,733	35,630	7.528	4,989	37,688	7.554	-256	2,058
15 UBS	0			300	2,268	7.56	-300	2,268
22 Fidelity	0			1,000	7,500	7.50	-1,000	7,500
72 Credit Suisse	0			1,400	10,570	7.55	-1,400	10,570
70 Manulife	1,650	12,423	7.529	3,550	26,432	7.446	-1,900	14,009
59 PI	0			2,000	15,000	7.50	-2,000	15,000
14 ITG	5,450	41,057	7.533	8,400	62,812	7.478	-2,950	21,755
48 Laurentian	1,000	7,600	7.60	4,255	32,213	7.571	-3,255	24,613
62 Haywood	0			4,700	35,553	7.564	-4,700	35,553
88 Credential	36,091	272,347	7.546	41,520	314,032	7.563	-5,429	41,685
90 Barclays	0			5,600	42,117	7.521	-5,600	42,117
5 Penson	155,552	1,176,086	7.561	167,536	1,269,405	7.577	-11,984	93,319
28 BBS	7,603	57,829	7.606	22,291	168,549	7.561	-14,688	110,720
53 Morgan Stanley	6,371	48,015	7.536	25,000	188,549	7.542	-18,629	140,534
9 BMO Nesbitt	215,991	1,625,628	7.526	246,184	1,862,455	7.565	-30,193	236,827
80 National Bank	221,394	1,673,544	7.559	299,772	2,272,040	7.579	-78,378	598,496
13 Instinet	136,890	1,034,221	7.555	215,595	1,632,599	7.573	-78,705	598,378
2 RBC	519,075	3,914,787	7.542	664,808	5,032,719	7.57	-145,733	1,117,932
33 Canaccord	22,255	171,432	7.703	238,897	1,809,076	7.573	-216,642	1,637,644
1 Anonymous	993,145	7,511,467	7.563	1,476,517	11,166,111	7.562	-483,372	3,654,644
TOTAL	7,707,550	58,265,595	7.56	7,707,550	58,265,595	7.56	0	0