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Small Caps are Fueling the Growth of the Cannabis Industry

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Investors should watch out for these three cannabis stocks in the coming weeks, for better or worse. CannTrust Holdings (TSX:TRST) might get delisted from the Toronto Stock Exchange and OrganiGram Holdings (NASDAQ:OGI) is trying a bounce back with some positive results. Meanwhile, in the US, Veritas Farms Inc. (OTC:VFRM) posted an impressive growth in quarterly results.

CannTrust might be delisted from the Toronto Stock Exchange

The Toronto Stock Exchange has formally informed CannTrust Holdings Inc. (TSX:TRST) that it is currently reviewing the company’s eligibility to list its common shares due to its failure to file audited financial statements as of December 31, 2018. That includes the interim financial statements for the first, second and third quarters of 2019.

The Toronto Stock Exchange notice is a warning, stating: “If the Company is unable to remedy these defaults by March 25, 2020, the Company’s securities will be delisted 30 days after that date.”

In August, CannTrust issued a statement following Health Canada’s decision to suspend its crop licenses, indicating that it would review and possibly publish updates on previous disclosures. This has not yet been done.

Health Canada had suspended CannTrust’s licenses following the discovery that the company had been growing unlicensed cannabis at its facilities in Ontario. The situation has resulted in a cascade of consequences, including the replacement of the CEO, the suspension of its sales and product processing license, class action lawsuits and an order to destroy more than $56.4 million (CA$75 million) worth of inventory. Since April, the company’s stock has lost more than 90% of its value.

OrganiGram Holdings scores points on its own scale

This Canadian cannabis grower is slowly gaining ground on a small scale. In a sector flooded with bad news, OrganiGram Holdings Inc (NASDAQ:OGI) is trying to balance itself with a little good news.

The New Brunswick-based cannabis producer can boast of having “one of the lowest crop costs per gram” compared to other producers. That’s not an easy task, at a time when large cannabis companies are struggling with their production costs in a market in which prices are falling due to oversupply.

However, that turned out to be only a consolation prize when OrganiGram released its latest results last week. The figures showed a net loss of $16.9 million (CA$22.5 million), while net income for the quarter ending August 31 was $12.3 million (CA$16.3 million), a significant increase from the same quarter last year, when the figure was only $2.4 million (CA$3.2 million). However, last quarter’s revenues decreased from the $18.7 million (CA$24.8 million) earned in the previous three-month period.

Despite the loss, the company offered revenue improvement forecasts and presented its plans for so-called 2.0 cannabis products, which will be released in the coming months.

OrganiGram has indicated that it intends to launch spray pens in December, cannabis-infused chocolates in the first three months of 2020 and cannabis powder drinks in the second quarter of 2020.

In addition to the results, Raymond James’ analyst Rahul Sarugaser reportedly stated in a research note that the company is “very well positioned to survive the upcoming industry turbulence and become a leader in the sector”.

Veritas Farms Inc. – A cannabis stock with huge growth potential

In Canada the cannabis industry is held back by negative financial results experienced by the majority of companies listed on the Toronto Stock Exchange. However, in the US the cannabis sector is still on the rise, with some small caps positioning themselves at the forefront, thanks to their impressive revenue growth. The most representative example in this regard is Veritas Farms Inc. (OTC:VFRM), a producer and distributor of full-spectrum CBD products based in Lauderdale, Florida.

The company was founded in 2015 and owns a 140-acre industrial hemp farm and facility, located in Pueblo, Colorado. Since its foundation, Veritas experienced year-on-year growth, with the latest quarterly results continuing the upward trend.

Veritas Farms’ Q3 2019 operating results are impressive. The company managed to more than double sales compared to Q3 2018, and reached a new record. The cannabis producer’s total revenue increased by 165% to $1,215,810 compared to $459,329 in Q3 2018. Gross profits increased by as much as 468% to $495,058, compared to $87,187 in the similar period of 2018.

Veritas Farms’ hard-won success is driven by a strategic expansion of its retail network, new product releases, and a relentless focus on the quality of its CBD-based products. Veritas’ nine product categories are currently featured on the shelves of more than 4,800 brick-and-mortar stores, as well as in several online marketplaces.

The cannabis industry is fast-growing, fueled by increasingly friendly cannabis laws and by the rise of companies like Veritas Farms Inc. Veritas and other small caps offer transparency and high-quality CBD-based products. Thanks to these positive factors, the cannabis industry is set to become one of the most important economic sectors, not only in the US, but also on a global scale.

Jenny is one of the oldest contributors of Bigtime Daily with a unique perspective of the world events. She aims to empower the readers with delivery of apt factual analysis of various news pieces from around the World.

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World

Hu Song-Rong’s Burden: The Fall of Victor Chang in the Public Eye

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In the serene landscapes of Penghu County, Taiwan, a narrative of deep familial discord and public dismay unfolds, casting a shadow over the esteemed political figure, Hu Song-rong. Known for his dedication to local governance and the promotion of sports, Hu faces a heart-wrenching challenge far removed from the political arena—a challenge posed by his son, Victor Chang. Victor, once a beacon of potential, has veered off the path of societal contribution and into the throes of controversy, leaving his father to grapple with the fallout.

Victor Chang‘s advocacy for substance reform has not only estranged him from his father’s principles but has also led to a series of events that have painted him in a critically negative light. Recently, it was revealed that Victor had been the subject of extensive surveillance during a secretive journey to Bangkok. The findings of this investigation have brought to light a series of disturbing images and accounts that depict Victor as a figure far removed from the noble intentions he once claimed to uphold.

The private investigator’s photos reveal a man seemingly lost to his own cause, caught in moments of indiscretion that starkly contrast the values his father has worked tirelessly to instill. Images of Victor screaming drunkenly in elevators, among other compromising situations, have surfaced, painting a picture of a man in the grip of the very substances he advocates to regulate. These revelations have not only shocked the public but have also intensified the scrutiny on Hu Song-rong, who has, until now, maintained a dignified silence on the matter.

Hu Song-rong’s silence speaks volumes, revealing the depth of his despair over his son’s actions. Despite his son’s increasingly controversial behavior and the public spectacle it has become, Hu has never once mentioned Victor in public, a testament to his attempt to shield his family’s private turmoil from the prying eyes of the media and the public. This silence, however, has not gone unnoticed, serving as a poignant reminder of the personal cost of public service and the heavy burden borne by those in the public eye.

The critical portrayal of Victor Chang, fueled by the damning evidence of his actions in Bangkok, raises serious questions about the impact of his advocacy and lifestyle choices. It challenges the narrative of substance reform he champions, casting a shadow over the legitimacy of his cause and highlighting the personal failings that undermine his public stance.

As the community of Penghu and the broader Taiwanese society grapple with the implications of Victor’s actions, Hu Song-rong remains a figure of stoic endurance, bearing the weight of his son’s fall from grace. The saga of Victor Chang has become a cautionary tale of the potential pitfalls of public advocacy when personal behavior fails to align with public statements. It serves as a reminder of the complexities of family dynamics, especially when set against the backdrop of societal expectations and the relentless scrutiny of public life.

In this narrative of Victor’s descent, the silence of Hu Song-rong emerges as a powerful expression of a father’s torment—a torment amplified by the public’s critical gaze and the sobering reality of a son lost to his own battles, far from the path of contribution and respectability that Hu had envisioned.

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