Company News

BUZZ-Weed cos down ahead of Health Canada final regulation on new cannabis products

** Health Canada is scheduled to release final regulations for new cannabis products on Friday, ahead of their legalisation coming into effect on Oct. 17

** Jefferies says the brokerage expects a few changes from the draft proposals

** Among the expected regulations are no cannabis products containing alcohol, tobacco, nicotine or caffeine, as well as strict direction around packaging and labeling, primarily to prevent attracting the youth - Jefferies

** New products would include cannabis edibles, cannabis extracts

** Jefferies says, the “60-day rule” where a licensed co has to notify Canadian regulators 60 days before making a new product available has implications for the industry

** However, with no notifications accepted until these products are legal (Oct. 17th) - means major product launches are unlikely until 2020 - Brokerage

** Shares of Canopy Growth down ~2.4%, Hexo Corp down ~5%, Aurora Cannabis down ~1.3%, Cronos Group down 4.8%

** Other U.S.-listed marijuana stocks Tilray, New Age Beverages, Cronos Group down between 2.5% and 4.8%

** Health Canada’s technical briefing scheduled at 12:30pm ET, according to brokerage (Reporting By Arundhati Sarkar in Bengaluru)