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After long-awaited approval, cannabis vape supply could be disrupted by coronavirus – Calgary Herald

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Canopy Growth unveiled the company’s edible offerings including these vape products at Hotel Arts in Calgary on Monday, December 9, 2019.


Darren Makowichuk / Postmedia

Just as the uncertainty over cannabis vapes had lifted in Alberta come fears the novel coronavirus could disrupt the marijuana industry’s supply chain.

Distributors and retailers say they’ve been told travel restrictions to fight the spread of the deadly virus in China and the resulting closures of factories where almost all vaping hardware is produced could eventually put a crimp in local inventories.

That includes the cartridges that contain the vaping product, the batteries that heat them and the vapourizers themselves.

“It’s really hard to get your hands on the 510 batteries manufactured in China right now because of the coronavirus,” said Mack Andrews, owner of the Aylmer Nelson Cannabis store in southeast Calgary.

“Suppliers are having a hard time meeting demand.”

Andrews said his store ordered a good-sized stock of the batteries well before the crisis in China, but he added: “I’m not sure every store would have had that luck.”

It’s not certain how long his own store’s supply of the rechargeable batteries will last once vape cartridges go on sale Monday “because it’s a brand new product,” he said.

His store and others are preparing to receive their first orders of cannabis vape cartridges after the province completed a review of their safety and notified retailers Feb. 7 approval would go ahead.

“There’ll be some stores able to sell the cartridges but won’t have batteries,” said Andrews.

A spokesman for Alberta cannabis retailers and licensed producers said members he’s contacted aren’t overly concerned.

“As of yet, we have seen no significant challenges — we don’t really have fact-based assessments we can make,” said Nathan Mison, chairman of the Alberta Cannabis Council.

And the staffer of another store said customers and retailers have stocked up for months on vaping supplies and accessories that would likely carry them through any disruption.

“It’s maybe a concern in the future, but it’s all stuff that’s been here for a long time,” said Beau Gaebel of Queen of Bud in southwest Calgary.

When the first vaping cartridges arrive at his store on Monday, Gaebel said he fully expects them to be a huge hit.

“We’ll sell out that day,” he said.

Some U.S.-based distributors say that product popularity could lead to supply shortages and they’re worried about the timing of the novel coronavirus outbreak.

The virus struck at the height of the Lunar New Year holiday, which was extended in China in an effort to prevent further spread of the disease. This, in turn, delayed the return of workers to factories, disrupting delivery schedules.

The spokesman for a manufacturer-distributor said there is concern about the virus’s impact, at least down the road.

“You don’t forecast this happening, we’ve tried to protect our partners and licensed producers,” said Gerry Tissenbaum of Jupiter Research.

“Do I think there’ll be a supply disruption? I hope not because we’re at the stage where we want to grow the business.”

He said his company is in “a holding pattern to see if the factories come back” following the Lunar New Year in China.

And he noted production disruptions in China impact a huge variety of products far beyond vaping hardware.

But for now, said Tissenbaum, Jupiter’s product stock in North America is deep.

“We brought a large inventory into our warehouses in Canada and the U.S.,” said Tissenbaum.

That uncertainty also comes at a time when doubts about the safety of vaping products have yet to be totally dispelled, following a number of illnesses and deaths across North America.

But Tissenbaum said the industry is in a good position to market the products under a safe, government-regulated umbrella.

“For more (newer consumers) who want to try cannabis, will know the legal process is the way to go,” he said.

“It’s as safe as anything can be.”

The focus on vaping illnesses has fallen on unregulated products with vitamin E acetate additive seen as a prime culprit.

BKaufmann@postmedia.com

on Twitter: @BillKaufmannjrn

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Cineplex reports $24.7M Q3 loss on Competition Tribunal penalty

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TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.

The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.

The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.

The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.

Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.

Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.

This report by The Canadian Press was first published Nov. 6, 2024.

Companies in this story: (TSX:CGX)

The Canadian Press. All rights reserved.

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Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

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TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

The Canadian Press. All rights reserved.

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Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

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ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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