Sponsored by Element 29 Resources

Potco’s in severe financial distress

Canada’s legal cannabis industry is in a state of severe financial distress, nearly five years after the country legalized adult-use marijuana. This dire situation was outlined in briefing materials prepared for Canadian Finance Minister Chrystia Freeland last fall, which was obtained through an access-to-information request shared with the publication MJBizDaily.

According to the briefing note, not a single licensed producer of legal cannabis products is consistently profitable. The sector is plagued by a myriad of issues, including unfair profits gouged by some provincially-owned cannabis wholesalers, a snowballing of unpaid federal excise taxes, disproportionately high rates of insolvencies and bankruptcies, and crashing marijuana prices exacerbated by “inventory liquidations” from failing companies.

You can read more on the matter here.

What’s going on?

• Conventional Uranium Mining In Upswing As Demand Surges (theDeepDive)

• West decries Putin's election win, China, India vow closer ties (Reuters)

• Senator Bernie Sanders Leads Push for 32-Hour Work Week While Maintaining Weekly Pay Rates (theDeepDive)

• An NDP motion puts a big question to the test: Will Canada recognize Palestinian statehood? (CBC)

• Apple Is in Talks to Let Google Gemini Power iPhone AI Features (Bloomberg)

• World’s Largest Nuclear Power Plant Could Soon Restart Operations (theDeepDive)

• Supreme Court eyes government contacts with social media platforms (Reuters)

• Homebuilder sentiment turns positive for the first time since July (CNBC)

• US Job Market Faces Deterioration, Points To Recession (theDeepDive)

• Economists expect inflation rate ticked up above 3% last month amid higher gas prices (BNN)

• Musk Says His Ketamine Prescription Is in Investors’ Best Interests (Bloomberg)

• SEC Sues Elon Musk Anew For Intently Delaying The Current Twitter Suit (theDeepDive)

• Trump can’t secure $454 million appeal bond in New York fraud case, his lawyers say (CNBC)

What’s the latest?

• Home Sales: The Canadian Real Estate Association reported a significant increase in February home sales, rising by 19.7% compared to the same period last year. This surge partly reflects the weakness experienced in February 2023, which marked one of the lowest results for that month in the past twenty years. However, on a month-over-month basis, seasonally adjusted home sales in February decreased by 3.1% compared to January.

• Geopolitics: Following a Reuters report revealing SpaceX's development of spy satellites for a U.S. intelligence agency under a classified $1.8 billion contract, Chinese military and state media have accused the United States of jeopardizing global security. The People's Liberation Army (PLA) criticized the SpaceX program for showcasing the U.S.'s "shamelessness and double standards," amidst concerns over the implications for international security and stability.

• Airbus Strike Nears: Airbus SE's employees in Canada, specifically those involved in building A220 jets, have overwhelmingly rejected a contract offer, citing the proposal of a 10.25% wage increase over three years as "totally unacceptable" amidst demands for better insurance, flexible working hours, and preserved pension benefits. This rejection threatens a strike at the Mirabel manufacturing plant, where the union represents 1,300 of the 3,000 workers.

• Google Invests In Canada: Google.org has allocated $2.7 million in research grants to advance three Canadian AI initiatives aimed at promoting sustainability and AI responsibility. These initiatives encompass CIFAR's decarbonization strategies, Amii's AI-based optimization of water treatment processes, and CEIMIA's Digital Futures Project focusing on AI policy development.

• Liberals Push Back: Natural Resources Minister Jonathan Wilkinson refuted provincial premiers' calls to scrap or delay the upcoming carbon tax increase, asserting their arguments are based on inaccuracies. In an interview, Wilkinson defended the tax, emphasizing its role in making life more affordable through rebates, countering the premiers' concerns about the tax rise to $80 per tonne from $65.

A sitdown with Thomas George of Grizzle

The stock market and stuff

• Hertz Replaces CEO After Failed Tesla Bet (theDeepDive)

• Major Canadian Gildan shareholder weighs in on dramatic boardroom saga (BNN)

• Reddit’s Huffman Leaves ‘Young Troll’ Image Behind in Run-Up to IPO (Bloomberg)

• Goldman Calls For $6.80/lb Copper As Prices Breakout (theDeepDive)

• Bond market sees inflation as a wild card for easing timetable at Fed meeting (Reuters)

• Nuvei Board Forms Special Committee Amid Buyout Talks with Advent (theDeepDive)

In the juniors

• Global Atomic Falls 27% Following Developments In Niger (theDeepDive)

• Pampa Metals Reports 422 Metres Of 0.48% Copper In Final First Hole Assay Results (theDeepDive)

• Canada Nickel Hits 675 Metres Of 0.25% Nickel At Reid (theDeepDive)

• VERSES AI Appoints Alex Kipman As Strategic Advisor (theDeepDive)

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