Albert Labs announces Strategic Investment from Cantheon Capital LLC for First In-Human TrialsMindMed Reports Full Year 2022 Financial Results and Business HighlightsCybin to Participate in the Oppenheimer 33rd Annual Healthcare ConferenceNuminus to Participate in the Sequire Cannabis & Psychedelics Conference on Wednesday, April 5, 2023Braxia Scientific Provides Update on Proposed Irwin Transaction; Company Retains Strategic Clinical Assets and Ketamine Numinus Announces Four Peer-Reviewed Publications from its Chief Clinical Officer in 2023Irwin Naturals Signs Letter of Intent to Acquire Braxia ScientificNuminus Wellness Inc. Reports Q1 2023 ResultsIrwin Naturals and Braxia Scientific Announce Partnership for In-Human Clinical Studies Supporting Pharmaceutical CompanNuminus Develops Mushroom Tea for Use in Psychedelic ResearchIs the Psychedelic Sector Poised for a Comeback?!?PSYC + Nucleus Form New Partnership to Develop and Launch Psychedelic FinderWhat You Need to Know About Numinus Wellness…Numinus provides update on acquisition integration and announces new client financing optionsPSYC Corp’s Psychedelic Spotlight Surpasses One Million Page Views for Fourth Consecutive MonthNuminus to Participate in the H.C. Wainwright 24th Annual Global Investment Conference on September 12-14, 2022The Psychedelic Sector is Quietly Outperforming the S&P 500PSYC Completes and Publishes 2021 Audited Financials; Will Begin Audit of Q1 & Q2 2022Numinus to Participate in the H.C. Wainwright 24th Annual Global Investment Conference on September 12-14, 2022PSYC’s Bonfire Platform Development Progresses; Will Host Free Virtual Community Event on August 29th

Doom or Gloom for Cannabis? Why 2017 Can be the Opportunity of a Lifetime

Jan 3, 2017 • 12:06 PM EST
2017 out.png
4 MIN READ  •  By Michael Berger
Share Share - Facebook Share - Twitter

Will Canadian cannabis stocks remain under pressure following the release of information related to product recalls or will this weakness provide investors with the best buying opportunity of 2017?

Late last week, The Globe and Mail published an article on the discovery of Myclobutanil, a controversial pesticide found in in products sold by Mettrum Ltd. (MT.V), a federally licensed medical cannabis producer.

What is Myclobutanil?

Myclobutanil is a chemical that is prohibited for use on legal cannabis in Colorado, Washington and Oregon because of health concerns. The pesticide is known to emit hydrogen cyanide when heated.

This development follows Mettrum’s voluntary recall on November 1st after pyrethrin, a pesticide not approved for medical cannabis, was found in its products. Following this discovery, Mettrum said that its use was a mistake because it was not listed as an ingredient in a spray used by the company.

When Health Canada decided to further test Mettrum’s samples following the November voluntary recall, the agency found myclobutanil in the tested products. For reasons that are not clear, neither Health Canada nor Mettrum reported these findings to the public. The article raises questions about what controls Health Canada has in place to ensure the product is free of contaminants and chemicals.

Mettrum did not say how the myclobutanil ended up in its product but according to the Globe and Mail article, one of the company’s employees responded in the affirmative when asked if the recall also involved myclobutanil.

Fundamental Story Remains Intact Despite Headwinds

Canadian licensed cannabis producers have been under pressure during the last month and each member of the big five (Canopy Growth, OrganiGram, Aphria, Mettrum, and Aurora) have fallen at least 5%. Of these companies, Aurora Cannabis (ACB.V) was the top performer (down 5.7%) and Canopy Growth (CGC.TO) was the worst performer (down 19%).

We anticipate further weakness in this sub-sector of the cannabis industry as recent developments may have a short-term negative impact on market sentiment. Despite these headwinds, we remain bullish on the Canadian cannabis industry and would be buyers of select companies on further weakness.

Investors need to focus on quality companies that are led by a management team focused on growth and creating value for its shareholders. The fundamentals of these companies have not changed and for this reason, we view this weakness as a buying opportunity.


Join Mushroomstocks and Capitalize on the Rapidly Growing Cannabis Industry…



Important Investor Disclosures 

Disclosure.  Compensated Affiliate.  This report was authored by and is property of StoneBridge Partners LLC.  All information and data relied upon in drafting this report is publicly available.  The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report.  Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice.  Any projections or other information generated by StoneBridge Partners LLC regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.  None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment.  This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation.  The securities discussed in this report may not be eligible for purchase and/or sale in certain jurisdictions or by particular individuals.  It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction.  Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks.  The securities of non-United States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission.  Please contact a Financial Advisor for professional advice regarding any and all securities investments.  This report is intended for informational purposes only.  StoneBridge Partners LLC’s officers, directors, employees, affiliates, or subsidiaries may have positions in securities covered by StoneBridge Partners LLC.  StoneBridge Partners LLC receives compensation from the company and/or has a position in the securities mentioned in this report

Share Share - Facebook Share - Twitter


Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.


Top Stories

Get the Latest Cannabis News & Stock Picks.

Enter your email below to join the official Mushroomstocks newsletter.

 All good -- no spamming here.

The psychedelics sector is starting to take off as smart money begins to position itself across the industry.

Stay updated with all latest updates,upcoming events & much more.