Cowen’s Cigarette & Cannabis Circular Highlights

THE COWEN INSIGHT

Our Cowen Cigarette & Cannabis Circular highlights important news in the tobacco and cannabis industry for the week ending 7/26/2019.

Cannabis

• Health Canada announced May dry cannabis volumes increased 7% QoQ while oil volumes increased 19.2%.
• Quebec will introduce rules to ban the sale of cannabis candies and desserts as well as topical products.
• House Judiciary Committee Chairman Jerry Nadler (D-NY) and Senator Kamala Harris (D-CA) introduced legislation to decriminalize cannabis at the federal level.
• According to a new Gallup poll, adults between 18 and 29 years old are more likely to smoke cannabis (22%) than cigarettes (14%).
• In a Senate Banking Committee hearing, Chairman Mike Crapo (R-ID) did not commit to supporting the SAFE Act. See our colleague Jaret Seiberg’s note here.
• New York lawmakers that sponsored the 2019 legislation to legalize cannabis vowed to renew their push for legalization in 2020.
• One of the new Thailand government’s top priorities will be to develop a medical cannabis market.
• IMB made a C$123 mm strategic investment in XLY. See our note here.
• CTST terminated CEO Peter Aceto with cause while its Chairman Eric Paul resigned at the request of the Board of Directors.
• CURA received a warning letter from the FDA for marketing CBD products with unsubstantiated claims.
• ATD made an investment in FAF, with warrants that could increase its ownership up to 50.1%.

Tobacco

• The FDA announced the launch of its first e-cigarette prevention TV ads educating kids about the dangers of e-cigarette use.
• U.S. Representatives Rosa DeLauro (D-CT) and Kelly Armstrong (R-ND) introduced legislation to prevent online sales of e-cigarettes to minors.
• JUUL’s role in youth e-cigarette incidence was the subject of a two-day hearing in the House of Representatives Oversight and Reform committee. Separately, a Florida law firm filed a motion to ban the sale of JUUL across the U.S.

Full the full report and disclosures here