SQDC suppliers making millions off stock sales

Recreational cannabis has been legal for less than a month, but some insiders at companies supplying the Société québécoise du cannabis have already started to cash out. Even before the SQDC opened its doors, insiders at cannabis companies — a category that includes the officers and directors of a company as well as people who hold more than 10 per cent of its shares — had already sold millions of dollars worth of stock. A company’s insiders are required to disclose when they buy and sell stock in that company. Using this data, the Montreal Gazette examined stock sales by cannabis industry insiders, all at companies who have supply deals with the SQDC. Those supply deals with the government-owned cannabis monopoly were announced in April. While these transactions show that some cannabis industry insiders have already made millions, these insiders continue to hold shares worth millions more. Among the insiders to sell some of their shares are John Cervini, the co-founder of Leamington, Ont.-based Aphria. In October 2016, he sold one million shares in Aphria, held through another company that he owns or controls, for $3.5 million. In March, he sold another million shares, this time for a total of $6.5 million. He continues to hold stock in the company worth more than $142 million though the other company. His co-founder, Cole Cacciavillani, has sold more, in transactions he had made more than $25 million selling company stock. His current stake is worth $85.7 million. Both saw the value of their current holdings rise by several million dollars over the past few days as the stock value has increased to $15.96. Terry Booth, the CEO of Aurora cannabis, who currently holds more than $100 million worth of Aurora shares through another company that he owns, has already made more than $10 million selling stock in the company. In November 2017, he sold 700,000 Aurora shares, worth around $5.6 million at the time. In March, he sold 464,183 shares, a transaction worth just over $5.3 million. In both cases, the shares were held by a company he owned or controlled when they were sold. Sébastien St-Louis, the CEO of Hexo, the SQDC’s only supplier based in Quebec, has sold more than $3.3 million worth of shares he holds directly or through a company he owns or controls, selling the stock in March and August. He still holds more than $24 million. Dr. Michael R. Munzar, the chairman of the company’s board, also sold more than $3 million worth of stock in the company, in April and September. He continues to hold more than $10 million worth. Bruce Linton, the CEO of Canopy Growth Corp. — one of the two largest cannabis companies in North America by market capitalization — has sold more than $30 million worth of stock in the company since 2016. His remaining shares are worth well over $100 million. Murray Goldman, who sits on Canopy’s Board, has sold more than $27 million worth of stock, all of which was held indirectly through companies he owns or controls. His remaining stock is worth more than $168 million.