Michigan Capital

At Least 60 Michigan Towns Opt Out of Cannabis Sales

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Michigan’s Department of Licensing and Regulatory Affairs has released a list of 60 cities that have notified the Department that they will be opting out of legal cannabis sales, according to the Detroit Metro Times.

Michigan voters legalized adult-use cannabis via Proposition 1 in the 2018 midterms. However, the structure of the proposition allows for any municipality to opt out. While the list released by Michigan regulators is not finalized, it is indicative that many towns and cities will indeed be opting out out of at least parts of the program.

The list contains 60 municipalities, though it’s expected that there will be even more who choose to reject legal cannabis as the current list contains only municipalities that informed Michigan regulators as a courtesy.

The cities currently opting out are allowed to eventually opt back in, so there’s no guarantee that legalized cannabis sales and operations will be forever banned in these towns. Possession is also not affected by the opt-out and will be legal statewide. This list only applies to those forbidding retail outlets and other businesses.

The list so far includes:

  • Cheshire Township (Allegan)
  • Overisel Township (Allegan)
  • Three Oaks Township (Berrien)
  • Coldwater Township (Branch)
  • Newberg Township (Cass)
  • Volinia Township (Cass)
  • Sault Ste Marie (Chippewa)
  • Dallas Township (Clinton)
  • Greenbush Township (Clinton)
  • Ironwood (Gogebic)
  • Ingham Township (Ingham)
  • Williamston (Ingham)
  • Caspian (Iron)
  • Nottawa Township (Isabella)
  • Brady Township (Kalamazoo)
  • Charleston Township (Kalamazoo)
  • Portage (Kalamazoo)
  • Prairie Ronde Township (Kalamazoo)
  • Ada Township (Kent)
  • Cleveland Township (Leelanau)
  • Fairfield Township (Lenawee)
  • Oceola Township (Livingston)
  • Pentland Township (Luce)
  • Village of Armada (Macomb)
  • Frenchtown Charter Township (Monroe)
  • Monroe (Monroe)
  • Ashland Township (Newaygo)
  • Village of Milford (Oakland)
  • Northville (Oakland)
  • Grant Township (Oceana)
  • Bridgehampton Township (Sanilac)
  • Brown City (Sanilac)
  • Village of Carsonville (Sanilac)
  • Elmer Township (Sanilac)
  • Flynn Township (Sanilac)
  • Lamotte Township (Sanilac)
  • Maple Valley Township (Sanilac)
  • Marlette (Sanilac)
  • Village of Melvin (Sanilac)
  • Minden Township (Sanilac)
  • Village of Port Sanilac (Sanilac)
  • Sandusky (Sanilac)
  • Speaker Township (Sanilac)
  • Washington Township (Sanilac)
  • Watertown Township (Sanilac)
  • Algonac (St. Clair)
  • Burtchville Township (St. Clair)
  • Casco Township (St. Clair)
  • Columbus Township (St. Clair)
  • Kenockee Township (St. Clair)
  • Richmond (St. Clair)
  • St. Clair (St. Clair)
  • Mottville Township (St. Joseph)
  • Sherman Township (St. Joseph)
  • Sturgis Township (St. Joseph)
  • Tuscola Township (Tuscola)
  • Geneva Township (Van Buren)
  • Allen Park (Wayne)
  • Grosse Pointe (Wayne)
  • Plymouth (Wayne)

End


U.S. Supreme Court

Supreme Court Report: Cannabis Prosecutions Down 19% in 2018

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An end-of-year report by U.S. Supreme Court Chief Justice John Roberts indicates that federal prosecution for cannabis crimes declined 19 percent in 2018, Marijuana Moment reports.

Chief Justice Robert’s report covers fiscal year 2018. During that period, several new states launched cannabis sales or continued the roll out of their new cannabis programs.

“Drug crime defendants, who accounted for 28 percent of total filings, grew two percent, although defendants accused of crimes associated with marijuana decreased 19 percent.” — Excerpt from Chief Justice Roberts’ report

States factoring into the report that launched legal cannabis programs during this time period include California, Nevada, Massachusetts, and Maine.

The news from the Supreme Court follows last week’s report that cannabis smuggling has declined significantly since the start of the cannabis legalization movement in the U.S.

It seems that there are many indicators — as cannabis advocates have argued for decades — that ending cannabis prohibition does indeed produce positive outcomes, not the least of which is a reduction in law enforcement costs and freeing up valuable police time for investigating and preventing more serious crimes.

End


New Jersey Capital

Political Spat Delays New Jersey Medical Cannabis Expansions

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Delays continue in the roll-out of New Jersey’s medical cannabis program expansions, now thanks in part to conflict between Gov. Phil Murphy (D) and state Sen. Steve Sweeney (D), Leafly reports.

Delays are nothing new for New Jersey, who has already seen its medical cannabis infrastructure stalled by political action, primarily by anti-cannabis crusader Chris Christie, who was the sitting governor when New Jersey legalized medical cannabis.

Now, Bill S10 — the medical cannabis expansion bill that awaits further consideration — is being delayed yet again due to conflict between state Sen. Steve Sweeney and Gov. Phil Murphy, both of whom are Democrats. Gov. Murphy has taken issue with the tax rate set by Bill S10 and it’s speculated that Sen. Sweeney is refusing to cooperate as part of a strategic push for full adult-use legalization, which is expected to be addressed sometime this legislative session.

Notably, despite their disagreements, Gov. Murphy has called for lawmakers to legalize adult-use cannabis since he took office in early 2018.

The roll-out of New Jersey’s medical cannabis expansions has been riddled with issues. Cannabis advocates say the six new dispensary licenses issued in late 2018 all went to well-financed, out-of-state companies and accuse the legislature of not supporting attempts by local communities to participate in the space. Advocates also argue that none of the companies who were awarded licenses have selected retail or production sites yet, indicating further delays.

Action is needed. Medical cannabis is currently retailing for $500 per ounce in New Jersey — way beyond the national average. Additionally, some patients are stuck driving for nearly two hours just to get their medicine. Patients are also still required to re-certify their medical cannabis status every 30-90 days.

The next session of the New Jersey legislature begins January 15. Advocates hope for some sort of progress but, for now, the state’s high prices and difficult access will continue.

End


Boise, Idaho

Idaho Advocates Plan Legalization Voter Initiative for 2020

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Advocacy groups Legalize Idaho and Idaho Moms for Marijuana held a rally at the Idaho State Capitol Building on New Year’s Day in support of a cannabis legalization bid for the 2020 ballot, according to KTVB.com.

To help make their point, legalization advocates collected items like alcohol, tobacco, and donuts to demonstrate products that are more harmful to public health than cannabis but are still legal in Idaho.

Legalize Idaho plans to launch a campaign in February to collect signatures for putting an initiative to legalize cannabis on the 2020 ballot. Idaho is one of the few remaining holdouts on any sort of cannabis reform — nearly every single state surrounding Idaho has some form of legal cannabis, whether adult-use or medical, including Canada.

“The rest of the country is passing us by and we are completely surrounded on our little island of prohibition.” — Serra Frank, cannabis advocate, in a KTVB interview

Opponent groups like Drug Free Idaho will put up a fight, however. Countering the statement by advocate Serra Frank, the director of Drug Free Idaho told KTVB that Idaho was rather, “an island of sanity in a sea of insanity. We have a narrative right now of, there is zero bad things that happen when you have more marijuana, and we just don’t think that’s the case.”

Ultimately, advocates support leaving the question for voters via their petition and future ballot initiative.

Said Frank, “The people of Idaho want it, the politicians might not, we don’t care what they say. We are the people, this is our Capitol building, we are going to make this happen.”

End


Car Interior

Massachusetts Plans “Open Container” Laws for Cannabis

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Massachusett’s Special Commission on Operating Under the Influence and Impaired Driving — formed after cannabis was legalized — is considering a law that would limit “open containers” of cannabis in vehicles, MassLive reports.

The move aims to align rules for operating a vehicle under the influence of cannabis with alcohol’s open container laws. Unlike in Canada, for instance, having cannabis within reach of a driver in Massachusetts currently does not constitute an open container.

According to Massachusetts’ liquor laws, an open alcohol container has had its seal broken and contents partially consumed. While the exact definition of what constitutes an open cannabis container remains debatable, many council members expressed opinions on the matter.

“We’ve all seen people smoking a joint at the red light next to us, and clearly that’s open container, but then the question gets what about the edibles, what about some of the oils?” —Massachusetts Undersecretary for Law Enforcement Jennifer Queally, via MassLive

Some argued that simply having the cannabis out and visible isn’t grounds to assume they’re intoxicated. Cannabis does not require refrigeration and there is no absolute chemical marker for intoxication. Opponents pointed out that cannabis can easily be kept in the glove box or trunk, where it would be out of sight yet still in the vehicle.

The strongest recommendation in the commission’s report calls for anyone refusing a roadside test by a police officer for cannabis intoxication to have their driver’s license suspended for six months. This would match the current penalty for refusing to submit to a roadside test for alcohol intoxication.

Other recommendations to the Legislature include providing police with information about the proper tests for signs of cannabis intoxication and training on how to administer those tests.

The commission also recommended public education about the dangers of intoxicated driving, establishing rules for how hospitals can test the blood of someone arrested under suspicion of intoxicated driving, and a transition from paper warrants to electronic warrants when seeking permission to conduct a vehicle search.

All recommendations from the commission must be approved by Massachusetts lawmakers before becoming law.

End


Times Square

First Cannabis Advertisements Appear In Times Square NYE Celebration

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This week marked the first time cannabis and CBD companies were allowed to advertise on the electronic billboards that light up the Times Square New Year’s Eve party, the Denver Business Journal reports.

Elixinol — a Broomfield, Colorado-based CBD company that distributes to 40 countries and is traded on the Canadian Securities Exchange — led the pack of cannabis and cannabis-adjacent companies who appeared on the historic billboards Monday night.

“A year ago, we were denied advertising in Times Square. What a difference a year makes — we join the entire hemp community in celebrating what’s to come in 2019.” — Chris Husong, Director of Sales and Marketing for Elixinol, in a statement

Elixinol was joined by other cannabis industry players Cannabis Network Media, Curved Papers, My Bud Vase, MTracTech, and Restorative Botanicals in securing the coveted advertising placement, according to a press release.

https://www.instagram.com/p/BsEVVupgvpP/

In 2014, an effort by Weedmaps to be the first cannabis company to advertise at the Times Square New Year’s Eve party was shut down by the event’s anchor tenant, CBS Broadcast.

President Donald Trump signed the 2018 Farm Bill into law last month, which officially legalized industrial hemp and its derivatives — including CBD products.

Meanwhile, New York Gov. Andrew Cuomo has committed to passing a cannabis legalization law during the 2019 legislative session; New York City Mayor Bill de Blasio said he supports the move.

End


Cannabis

Study: European Cannabis Has Doubled Its THC Content

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European cannabis extracts and flower have doubled in potency since 2006, according to a report by The Guardian.

Researchers from the University of Bath and King’s College London published a study in the scientific journal Addiction shows that both cannabis flower and resin concentrates in Europe have seen dramatic increases in average THC content.

Flower’s average THC content went from 5% in 2006 to 10% in 2016. For resin products, average THC content rose from 8% in 2006 to 17% in 2016. These increases were not shown for CBD content, however, which was shown to have declined or remained consistent with earlier results.

The change is believed to be attributed to the advancement of cannabis cultivation techniques, particularly in Morocco.

Researchers also noted an increase in prices. In 2006, cannabis flower was sold for an average of €7.36 per gram. In 2016, that same gram cost on average €12.22. Cannabis resin went from €8.21 to €12.27 per gram in that same time period.

While some say the increase in THC content means a better value for consumers, others wonder at the risk of declining CBD contents.

Said one of the study authors, “CBD has the potential to make cannabis safer, without limiting the positive effects users seek. What we are seeing in Europe is an increase in THC and either stable or decreasing levels of CBD, potentially making cannabis more harmful.”

End


Stock Exchange

American Cannabis Operators Index Down 18%

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The American Cannabis Operator Index recorded a fall of 18% in value for cannabis companies in December, according to New Cannabis Ventures.

The Index tracks 17 companies as of December. Five of the companies are solely CBD companies, which in general performed better than other companies on the Index, most likely because of the 2018 Farm Bill‘s passage. The other 12 businesses are multi-state cannabis operators.

All companies tracked by the Index except for CBD company Elixinol Global lost money in December. United Cannabis stock declined so much that it will no longer be listed on the Index in January as trading volume fell below the Index’s minimum criteria. Operator Terra Tech had the worst month of those still listed after having been sued for fraud, though the company has contested the accusations.

The Index was launched on October 31, 2018. It contains a list, updated monthly, of the leading cannabis growers, processors, and retailers across the U.S.

To appear in the Index, stocks require a daily trading volume of at least $100,000 and must trade at a minimum price of $0.10 per share. Cannabis revenue must account for at least 50% of any listed companies’ revenue.

A decline in the Index’s value as a whole means that many cannabis producers in the U.S. aren’t making money.

The Index will be updated in January to remove United Cannabis’ listing and to add 1933 Industries and Green Growth Brands, which will bring the number of listed companies up to 18.

End


Large plastic bags of trimmed cannabis product.

Oregon Bill Would Legalize Interstate Cannabis Exports

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Oregon lawmakers are expected to consider legislation this year that would allow the state to export cannabis products into other state-legal cannabis markets, according to a Statesman Journal report.

The bill would be a cooperative effort between Oregon state Sen. Floyd Prozanski (D) and The Craft Cannabis Alliance, which defines itself as a member association of cannabis and allied businesses.

Draft language of the proposal would allow cannabis wholesalers to ship across state lines provided that Oregon’s governor reaches an agreement with the receiving state. Products would not be allowed to cross through states where cannabis remains prohibited, and product transport via airplanes would be prohibited.

Sen. Prozanski introduced similar legislation in 2017 but his proposal died in the statehouse.

“There are plenty of markets that would be thrilled to have world-class cannabis. But prohibition keeps us from sending it into those markets.” — Adam Smith, founder and director of The Craft Cannabis Alliance, via The Statesman Journal

The Oregon cannabis market suffers from an over-saturation of cannabis products, which has resulted in some product diversion to the black market. Meanwhile, wholesale and retail cannabis prices have plummeted.

According to Beau Whitney, a senior economist for New Frontier Data, allowing interstate exports “would either slow or stop the price declines, because there wouldn’t be any more excess.”

“It would create more of a market in which quality and branding and other things would come into play more so than just pure price,” Whitney told The Statesman Journal.

However, the proposal would be a risky step in light of the plant’s ongoing federal prohibition. Since the first state-legal markets launched in 2014, cannabis businesses have operated in accordance with the since-rescinded Cole Memo, which specifically forbade state-legal cannabis products from crossing state borders.

 

End


Colorado Has Earned Nearly $1 Billion In Cannabis Taxes

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In 2012, voters in Colorado and Washington passed the states’ landmark adult-use cannabis legalization initiatives; Colorado’s marketplace launched first — to nationwide fanfare — on January 1, 2014.

As of October 2018, legal cannabis retailers had distributed nearly $6 billion worth of cannabis and the state collected $883,885,907 in cannabis tax revenues.

In Denver alone, cannabis taxes have created $12.8 million in education funding, The Denver Channel reports. This has led to eight different youth diversion programs, training programs in 15 different Denver public schools, and the “High Costs” youth education and prevention campaign that encourages educated decisions and accurate, peer-to-peer conversations.

Beyond the tax revenue, however, Colorado’s cannabis industry has also created a wealth of new jobs and employment opportunities, including ancillary marketplaces that are rich with innovation, technological advances, and entrepreneurship.

Colorado has also served as a proving ground for cannabis research and other states looking at legalizing or decriminalizing the plant. Lawmakers from New Jersey, Utah, and other states have visited the state as they consider their own cannabis legislation.

We have not, however, witnessed the doomsday-type scenarios that were touted by prohibitionists leading up to Colorado and Washington’s historic legalization votes.

Underage cannabis use is not rising and, in fact, some studies have shown that legalization actually helps reduce the rate of teenage use. Additionally, car accident deaths have not seen any significant increase in Colorado when compared to eight other states that have not legalized, according to a Global News report.

Moreover, marijuana arrests have obviously plummeted in Colorado, opening up valuable police time for investigating and preventing other, more serious crimes.

Since Colorado and Washington established their legal cannabis markets, eight other states, one U.S. territory, and Washington D.C. have opted to end cannabis prohibition, with many more states — particularly on the Eastern seaboard — set to legalize sometime in 2019.

End


Pressure Grows to Reform Texas Cannabis Laws

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Texas is one of the last U.S. bastions of outright cannabis prohibition, but pressure is mounting from citizens and lawmakers alike to bring progressive reforms to the Lone Star State’s cannabis laws, The Houston Chronicle reports.

Cannabis remains heavily restricted in Texas. Currently, the state’s only reforms are incredibly strict, allowing only for CBD-rich oils that are prescribed for epilepsy patients who have been failed by other, traditional treatments. There is not a comprehensive medical cannabis program and even minor possession remains a class B misdemeanor punishable by a six-month jail term and up to $2,000 in fines.

“Even in Texas, public opinion seems to have shifted from criminalization to at least decriminalization, with strengthening support for legalization. … All in all, Texans of all stripes may be closer than ever to move toward legalization, especially as everyone around them is going along with this major change.” Nora Demleitner, professor at Washington and Lee University School of Law in Virginia, via The Houston Chronicle

Meanwhile, lawmakers have already filed or pre-filed a dozen bills relating to cannabis reforms, including a full decriminalization bill in November by state Rep. Joe Moody (D).

Texas Gov. Greg Abbott (R), meanwhile, said he would support decriminalizing cannabis by reducing the charges for possession of small quantities of the plant from a class B to a class C misdemeanor, which would carry no threat of jail time and a maximum fine of $500.

In July, the Republican Party of Texas updated its platform to include planks for the decriminalization of cannabis, rescheduling the plant to Schedule II under the federal Controlled Substances Act (CSA), and the statewide legalization of industrial hemp.

Note: hemp was officially removed from the CSA earlier this month with the successful passage of the 2018 Farm Bill.

The Texas GOP also endorsed expanding the state’s limited medical cannabis law to allow for a more comprehensive program, but no further progress was made during the close out of 2018.

On Texas’ southern border, Mexico has also taken huge strides in the fight for cannabis freedom, with adult-use legislation expected to come in 2019.

There are currently 10 states with adult-use legalization on the books, and 33 states with rules to allow for the medicinal use of cannabis.

End


Indiana Gov. Remains Strongly Anti-Legalization

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Despite a growing number of U.S. states moving away from cannabis prohibition — and the two-thirds majority of American voters who now support legalizing adult-use cannabis — Indiana Gov. Eric Holcomb (R) says he is “just not willing to look at that,” The Associated Press reports.

Several state lawmakers, meanwhile, are attempting to organize legislation to relax the state’s cannabis restrictions, including bills for both medical and adult-use legalization.

“I’m just not willing to look at that, especially since it is illegal right now according to the federal government. … Right now, it’s a crime. I’m just simply not willing to look the other way.” — Indiana Gov. Eric Holcomb, to reporters

Gov. Holcomb did sign legislation earlier this year to allow hemp-derived CBD to be sold in the state. According to Holcomb, however, he’s not even tempted by the boost in state tax revenues that would be wrought from adult-use or even medical cannabis legislation.

“Fortunately, we’re in a state that’s in a strong position, fiscally speaking, so we’re not maybe looking to every potential source without addressing all the adverse effects that come with it,” he said.

Currently, there are 10 U.S. states that have ended cannabis prohibition entirely and more than 30 with established medical cannabis laws.

End


Cannabis Tech

Cannabis Innovation and Tech: What’s New in the Industry

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No industry has undergone rapid evolution quite like the cannabis industry. Although the substance has been around for a very long time (it was included in the Chinese book of pharmacopeia some 2,000 years ago), the cannabis plant has only recently re-emerged in modern medicine. In the latter part of the 19th century, cannabis was widely available in pharmacies. You might have even found the “Schedule 1” drug stocked on grocery shelves once upon a time!

History is starting to repeat itself, as today’s cannabis entrepreneurs experiment with innovative extraction methods for the creation of potent distillate oils and controlled-dose edible products. If science is anything to go by (and it should be), then these products should be a welcome addition to any pharmaceutical cabinet.

Demand for Cannabis Innovation is Booming

As cannabis reform blossoms around the U.S. and most recently Canada, demand for high-tech innovations are sprouting. Cannabis’ negative stigma is lifting. By 2025, the global legal cannabis market is predicted to yield $146.4 billion, growing at a CAGR of 34.6%.

There are plenty of new things happening in the cannabis industry. Clinical trials are set to begin on cannabis for cancer, solar cannabis cultivation practices are being carried out, and scientists have even discovered how to make cannabinoids water-soluble. This only scratches the surface of all of the technology currently flooding the market.

Here are some other exciting tech advancements to keep on your radar:

  • Seedo is a fully automated, app-controlled home-growing kit built in a self-contained ecosystem with LED lighting, internal HD cameras for monitoring, and more, all in one easy-to-use DIY package.
  • PotBotics is a cross between Leafly and WebMD for cannabis connoisseurs. The startup’s PotBot app helps recommend marijuana strains for patients by using the scientific and medical research data on different strains and bodily effects in its database.
  • Ehave is a mental health data company using their Ehave Connect platform to track medical cannabis patients in order to advance the therapeutic use of medical cannabis by monitoring treatment plans to prove or disprove medical cannabis’ effectiveness for different ailments, and ultimately help establish treatment guidelines for cannabis therapies.

If the industry continues to perform just as it has been, companies will continue to indulge their consumer audience with market-leading products. Moreover, 420 investors can make a confident investment when they seek out the pioneers in cannabis innovation and technology. Why? Because the more advanced a cannabis company’s techniques, the more appealing they become to consumers.

Technology’s Importance in the Cannabis Industry

It’s not just consumers that benefit from the use of technology but also, investors and anyone else connected with use of the plant in its extracted form. Companies who continuously practice innovation by means of product acquisition and development can effectively serve the demand that is being felt from the edibles and oil extracts segment of the market.

Using technology demonstrates a company’s ability to keep up with the times (demand for cannabis products is outpacing supply in Canada) and maximize the potential of cannabis’ primary cannabinoids, THC (tetrahydrocannabinol) and CBD (cannabidiol).

Take Nutritional High, for example. The company uses technology not only to create first of it’s kind products like the FLÏ™ Chocolate shot (a one-of-a-kind micro-dose chocolate paste that won’t melt in the heat or freeze in the cold), but also to create radical new customer experiences. The Mile High FLÏ™ Club app drives customers to dispensaries with the FLÏ™ Nearby function, and rewards customers for repeated purchases with discounts and swag. The cutting edge program shows consumers and dispensaries alike that Nutritional High is a leader in the market space.

Adapting to Changing Consumer Preferences

As millennials continue to dominate the cannabis market with their desires for clean, organic, and healthy cannabis, cannabis companies will increasingly focus on non-carcinogenic methods of delivery like distillate oils and controlled-dose edible products that match those desires.

Cannabis ‘dabbing,’ for example, has become more popular among heavy cannabis users in recent years as a clear alternative to smoking. Dabbing is the process of inhaling cannabis from a refined extract which provides a healthier form of smoking with the same quick onset effect.

With an equally health-focused demographic Generation Z slowly entering the marketplace, the demand for healthy alternatives to smoking will continue to grow, and will, in all likelihood, become the norm.

Pushing the Industry Forward

Companies that are capable of creating market-leading products that can appeal to a diverse audience are most certainly the ones to watch. Brands that have and continue to meet the demands of the swelling cannabis consumer target market can effectively promote other brands to do the same. With more innovations in cannabis-related technology, companies that can adapt to change within the ever-evolving realm of legal cannabis will pave the way for industry expansion.

End


Border Fence

Study: Cannabis Legalization Better Than Wall For Border Security

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An analysis of Border Patrol cannabis seizures reveals that legalization reduces cannabis smuggling significantly more than the construction of border fencing, Tom Angell reports for Forbes.

The analysis was conducted by the Cato Institute. Cannabis seizures were compared over the years  2003-2018 in relation to the construction of border fencing along the U.S. southern border.

While miles of border fencing have increased over that time, there’s little correlation between those increases and the number of cannabis seizures. Seizures were largely consistent from 2003 to 2013.

When Colorado and Washington began selling legal cannabis products in 2014, however, seizures started to fall sharply, a trend that continued through 2018 as more and more state-legal markets launched.

“Given these trends, a border wall or more Border Patrol agents to stop drugs between ports of entry makes little sense. State marijuana legalization starting in 2014 did more to reduce marijuana smuggling than the doubling of Border Patrol agents or the construction of hundreds of miles of border fencing did from 2003 to 2009.” — David Bier, immigration policy analyst at the Cato Institute, in the analysis

For decades, legalization advocates have predicted this outcome. With additional states choosing to end cannabis prohibition each year, it’s become clear that Americans prefer locally grown cannabis with consistent quality and purity assured by a regulated market over smuggled — and possibly contaminated — cannabis from outside the country.

End


Business

U.S. Company Plans Hostile Takeover of Canadian LP Aphria

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U.S.-based cannabis grower Green Growth Brands is considering a hostile takeover of Canadian licensed producer Aphria, according to Bloomberg.

Aphria’s stock had previously been on the decline due to both general market sentiment following 2018’s record gains as well as accusations by known short-seller Quintessential Capital Management, who claimed that Aphria paid artificially high prices for certain international assets in order to line the pockets of company insiders at shareholder expense. Aphria fired back immediately, however, claiming that the accusations were “false and defamatory.”

Following Thursday’s reports of the possible takeover, Aphria stock rose more than 30 percent in late trading.

“They’re currently at an attractive value in the market. … We were looking for the most positive and friendly way to do this, but I think ultimately, we felt like a delay would be unnecessary. We wanted to be proactive and reach out directly to the shareholders.” — Peter Horvath, CEO of Green Growth Brands

Irwin Simon, Aphria’s Independent Chair of Board of Directors, said in a press release issued Friday morning that, “While we appreciate GGB’s interest in the value we have created at Aphria and our significant growth prospects, their proposal falls short of rewarding our shareholders for participating in such a transaction.”

“The Board has determined that the GGB proposal, as it currently stands, significantly undervalues the company,” Simon said. “Aphria has a tremendous market opportunity as a leader in the sector and a strategic vision to meet those opportunities. Our focus is to realize that value for the benefit of all our shareholders.”

The company has since established an independent committee of directors to consider the proposal and any future formal offers.

The proposed hostile takeover would nonetheless create a higher market cap for Aphria, as Green Growth Brands would value the company at CA$2.8 billion. At close of business on Thursday, Aphria’s market cap was just CA$1.39 billion.

While ongoing federal prohibition in the U.S. won’t allow cannabis produced in Canada to be shipped to Green Growth’s current operations, Horvath said the deal was based on, “taking the talent from both organizations and leveraging it across the different geographies.

“You can’t move product but you can certainly transport intellectual property and capability,” Horvath said. “It’s about combining our consumer expertise with their grow expertise.”

End


Saint Vincent

St. Vincent and the Grenadines Is Latest Caribbean Nation to Decriminalize

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The small Caribbean island nation of St. Vincent and the Grenadines (SVG) recently passed legislation to decriminalize cannabis, Forbes reports.

St. Vincent is the largest island in the Grenadines, a chain of tiny islands in the Caribbean. SVG will be the first member of the Organization of Eastern Caribbean States to decriminalize cannabis, though other nation members of the alliance seek to decriminalize in the near future.

The island nation aims to become a global leader in medical cannabis research and production. The Caribbean climate is well suited to cultivation and, with the ending of outright prohibition, SVG is ready to begin developing a new cannabis economy, according to Minister of Agriculture Saboto Ceaser.

“The planning of this innovative industry has been carefully conducted over a long period in close consultation with the agricultural sector and many different stakeholders to reach the level of maturity we see today. There is broad recognition and buy-in of the economic benefits this tightly controlled and regulated industry is expected to bring regarding direct employment, the creation of support industries and foreign investment.” — Saboto Ceaser, Minister of Agriculture for St. Vincent and the Grenadines, via Forbes

Ceaser went on to say that SVG has already seen an increase in both regional and international “investor sentiment and inquiries.”

End


Boston, Massachusetts

Massachusetts Bill Would Protect Jobs of Cannabis Users

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A Massachusetts bill proposed by state Sen. Jason Lewis (D) would prevent cannabis consumer workers from being fired for using the plant, The Boston Globe reports.

Massachusetts legalized in 2016, though delays in establishing a regulated seed-to-sale program meant that the state’s actual sales launch only took place a few weeks ago, just before Thanksgiving. The program is now underway, with additional retailers being added regularly.

Workers who use cannabis, however, can still be fired from their jobs in Massachusetts, even if they’re not intoxicated at work.

State Sen. Lewis’ legislation would prevent the firing of a worker who uses cannabis in their private home and time, moving cannabis as a substance to be more in line with alcohol. Employers who contract with the federal government, however, would be exempted from the new law, pending the end of federal prohibition.

“This is not intended to be a blanket protection for people to use cannabis whenever and wherever they like. But as long as they’re not impaired and it’s not impacting their work, employers should not be able to discriminate against them in hiring or promotion, and companies certainly should not be terminating people simply because they legally use marijuana on their own time.” — Massachusetts state Sen. Jason Lewis (D), via The Boston Globe

The new bill is expected to be considered by lawmakers during the 2019 session. It’s unclear how lawmakers will react to the new legislation, despite its common-sense overtones.

Cannabis sales, however, have thrived so far in Massachusetts.

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Germany Delays Medical Cannabis Roll-Out

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The licensing of medical cannabis cultivators and distributors in Germany will be delayed for at least another six months, Deutsche Welle reports.

Technically, medical cannabis has been legal via prescriptions in Germany since 2017, but the Federal Ministry of Health has, so far, not acted on the legislation; officials haven’t issued a single cultivation license in the almost two years since the law was passed.

According to the report, the Federal Institute for Drugs and Medical Devices said it needed more time to establish the rules that will eventually oversee the nation’s medical cannabis program.

The agency’s statement was prompted by an official inquiry from opposition politicians in the pro-business Free Democratic Party (FDP) which has criticized the delays. The FDP is joined by two other German opposition parties in calling for the full legalization of cannabis.

FDP lawmaker Wieland Schinnenburg said that the government was creating a “deliberate obstruction” to the launch of Germany’s medical cannabis program and called it a “catastrophe” for German businesses.

With licenses expected sometime during the second quarter of 2019, the soonest that patients in Germany can expect non-imported commercial medical cannabis products is likely early 2020.

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Netherlands Researcher

Study: THC Effective Treatment for Fibromyalgia Pain

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A study conducted in the Netherlands has found that THC-rich medical cannabis is an effective treatment for pain caused by fibromyalgia, according to The Growth Op.

The study was conducted by Leiden University Medical Center and pharma company Bedrocan International in the Netherlands. Interestingly, researchers found that cannabis extracts containing purely CBD were not effective; instead, the evidence suggests that cannabis high in THC is most helpful.

The study compared high-THC extracts against placebo as well as CBD products at several times during the progression of fibromyalgia in 20 patients, via a vaporizer.

“The outcome is very important for patients who suffer from fibromyalgia. Now we have the serious clinical evidence that medical doctors are asking for when prescribing our products and that health insurance companies want to have, to legitimize reimbursement.” — Tjalling Erkelens, CEO of Bedrocan, via the Growth Op

It’s clear in the study that THC specifically is useful for the treatment of fibromyalgia, which affects muscles and tendons specifically. Erkelens said the next phase of testing will be comparing THC-containing products to opiates to determine if cannabis can be used to replace the use of those addictive painkillers.

Another recent study has shown that opioids are largely ineffective against chronic pain. Paired with the new Netherlands study, it seems hopeful that future studies regarding the issue will find that cannabis can be a successful off-ramp for opioid use.

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Tel Aviv, Israel

Israel Approves Cannabis Exports

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The Knesset, Israel’s parliament, unanimously approved the export of medical cannabis products on Tuesday, The Washington Post reports.

Israel is a leading producer of medical cannabis products, but laws attempting to legalize export of the plant and its derivatives have struggled to pass the Knesset for years due to concerns among some lawmakers about potential diversion to the unregulated market.

Currently, Canada and the Netherlands are the only countries that allow for the export of medical cannabis products.

Israel-based medical cannabis company iCAN predicts the international market for Israeli cannabis will reach $33 billion in the next five years. Cannabis company shares in Israel rose nearly 10 percent following Tuesday’s announcement.

“This is a long overdue but welcome development. … Israel, already the most advanced nation in cannabis R&D will now be able to produce and market cannabis and cannabis-based products that will help millions of people suffering from illnesses including cancer, MS, Parkinson’s, sleep disorders, epilepsy, and PTSD, to name just a few.” — Saul Kaye, CEO of iCAN, in a statement

The new law includes language placing police in a supervisory role in the licensing of medical cannabis producers.

Israel‘s executive cabinet is expected to approve the law.

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FDA Begins Planning CBD Regulatory Framework

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FDA Commissioner Scott Gottlieb said that the organization is beginning the process of creating a regulatory framework for the marketing and interstate sales of CBD products, according to a CNBC report.

President Trump’s signature on the 2018 Farm Bill last week technically legalized industrial hemp and hemp products. The bill, however, placed CBD products under the FDA’s jurisdiction.

“We recognize the potential opportunities that cannabis or cannabis-derived compounds could offer and acknowledge the significant interest in these possibilities. We’re committed to pursuing an efficient regulatory framework for allowing product developers that meet the requirements under our authorities to lawfully market these types of products.” — Scott Gottlieb, FDA Commissioner, via CNBC

The FDA plans to hold public meetings soon seeking input on how best to establish the federal CBD marketplace.

“While products containing cannabis and cannabis-derived compounds remain subject to the FDA’s authorities and requirements,” Gottlieb said, “the FDA will continue to take steps to make the pathways for the lawful marketing of these products more efficient.”

Following the farm bill’s passage, a storm of industrial hemp CBD products is expected, perhaps even before the FDA can deploy new regulations.

Meanwhile, the FDA is expected to continue issuing warning letters to CBD companies who make claims that are not backed by federally recognized research.

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Edibles

Canada Releases Draft Rules for Edibles, Topicals

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Health Canada has announced regulations to allow the production and distribution of cannabis edibles and topicals, the CBC reports.

The regulations span everything from allowed additives, to packaging, to the types of foods that can be infused with cannabinoids. The rules also establish a THC cap for each serving.

If the rules are successfully adopted, edibles should be available in the Canadian market by October 17, 2019 — exactly one year after adult-use legalization took effect.

“Assuming the trend is consistent in Canada, the new classes of cannabis will likely represent over time a significant portion of the total market.” — Excerpt from the new regulations, via the CBC

The regulations list many expected standards for producers:

  • Products must not require refrigeration or freezing.
  • Ingredients and expiration dates must be on each package, as well as other nutrition information
  • The use of caffeine as an additive is prohibited, though natural coffee or tea products are allowed
  • No sugars or sweeteners are allowed, though flavor compounds have been approved
  • Flavors that may be appealing to children, like dessert flavors or other classic sweets, are not allowed to appear on the packaging
  • Meat products are not allowed, except for dried meats from certain producers
  • Eyedrops or needles are not allowed

Officials will now hold discussions across Canada regarding the new regulations. The rules require a 60-day period of public comment before they can be finalized.

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Bangkok, Thailand

Thailand Parliament Approves Medical Cannabis

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On Tuesday, Thailand’s parliament voted to legalize medical cannabis in the country, according to the BBC.

Southeast Asia is known for some of the harshest drug penalties on the planet. Thailand, however, is the first country in the region to move toward bucking that trend with the approval of medical cannabis. The same law also applies to kratom, another medicinal plant that is often used as an alternative to opiates.

“This is a New Year’s gift from the National Legislative Assembly to the government and the Thai people.” — Somchai Sawangkarn, chairman of the legislative committee behind the new law, via the BBC

Under the new law, Thai patients will be allowed to carry quantities of cannabis deemed appropriate for personal use. Production licenses will be regulated closely by the government.

Thailand was once known around the world for having high quality cannabis. Cannabis was also used as traditional medicine in the country until prohibition was instituted during the 1930s.

Under the new medical law, however, penalties still remain high. Those caught selling or growing cannabis without a license will face between five and 15 years in prison and fines of up to 1 million baht, or approximately $30,000.

It’s still unclear when Thailand’s new medical cannabis program will take effect and sales begin.

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Trump Signs Farm Bill, Legalizes Industrial Hemp

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President Donald Trump signed the 2018 Farm Bill into law on Thursday, legalizing industrial hemp and its derivatives across the country.

An amendment to the $867 billion bill — which was originally inserted by Senate Majority Leader Mitch McConnell (R-Kentucky) — officially removes hemp and its derivatives, including cannabidiol (CBD), from the Controlled Substances Act.

The legalization language faced little resistance from other lawmakers. One clause was added, however, that blocks individuals who have been convicted of a controlled substance-related felony from partaking in the newly established hemp industry for 10 years after their conviction.

The 2018 Farm Bill followed a rocky path to becoming law. After missing initial deadlines due to bipartisan disagreements over changes to the federal food stamp program, both houses of Congress managed to pass separate versions of the bill which had to be unified during a lame duck session after the midterm elections. After the bill was unified, it then needed to pass both houses of Congress, which it did in record time.

The one remaining doubt — President Trump’s signature — was laid to rest during a televised bill signing event yesterday afternoon.

“The significance of this law change should not be underemphasized. This law marks the first change in the federal classification of the cannabis plant since it was initially classified as a schedule I controlled substance by Congress in 1970, and paves the way for the first federally-sanctioned commercial hemp grows since World War II.” — Paul Armentano, Deputy Director for NORML, in a statement

Trump had praised the GOP-backed food stamp changes, which aimed to add work requirements to the Supplemental Nutritional Assistance Program (SNAP). Those provisions did not make it into the final version of the bill, but the president agreed to sign after being reassured by U.S. Secretary of Agriculture Sonny Perdue that the SNAP reforms would be handled via regulatory oversight, not by Congress. That oversight should not affect the hemp legalization language.

With the prohibition on industrial hemp lifted, it is hoped that research related to CBD and other cannabinoids found in hemp — as well as insurance and business loans for farmers who grow the crop — can now proceed at full speed.

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