Industry News
New Jersey Lawmakers Approve Marijuana Legalization: New Jersey got one step closer to legalizing marijuana on Monday after lawmakers approved an adult-use legalization bill in a joint session of Senate and Assembly committees. A total of three separate cannabis bills were approved at the hearing: one to fully legalize marijuana, one to expand the state’s existing medical cannabis program and another that would create a system to speed up expungements for people who’ve been convicted for low-level marijuana offenses. The marijuana reform proposals will now head for full floor votes. Pending approval by both full chambers the legislation will go on to Gov. Phil Murphy (D), whose office released a statement Monday affirming that the governor “remains committed to legalizing adult-use marijuana, a critical step in eliminating racial disparities in our criminal justice system.” www.marijuanamoment.net
Michigan Sets Recreational Marijuana Legalization Date, Will Take Business Apps in Late 2019: Possession and adult use of marijuana will be legal in Michigan starting Dec. 6, but the launch of what is expected to be a billion-dollar-plus commercial industry is still more than a year away The recently updated Marijuana Business Factbook 2018 projects Michigan will become one of the country’s largest rec MJ markets, generating $1.4 billion-$1.7 billion in annual sales within several years of its launch. mjbizdaily.com
House GOP, White House Forestry Demands Could Bring Down Farm Bill: Senate Agriculture Committee ranking member Debbie Stabenow, D-Mich., said late Monday that she and other congressional agriculture leaders are “very close” to finishing a new farm bill, but that last-minute demands from House Republicans and the White House to make changes to forestry policy could bring down the bill. Then Stabenow added, “It would be very unfortunate if (the demands for forestry policy changes) brought down the farm bill … unfortunate for farmers and ranchers.” Later while talking to a larger group of reporters, Stabenow said, ” Sen. Roberts and I would be happy to proceed without it (the forestry provisions) … we are very close to wrapping up right now.” Stabenow also said that the forestry issue has been bumped up to the Senate and House leaders — Senate Majority Leader Mitch McConnell, R-Ky., Senate Minority Leader Chuck Schumer, D-N.Y., House Speaker Paul Ryan, R-Wis., and House Minority Leader Nancy Pelosi, D-Calif. The forestry issue arose last week in reaction to the latest devastating wildfires in California. Agriculture Secretary Sonny Perdue and Interior Secretary Ryan Zinke said in a call to reporters that Congress should use the farm bill to expand their current authority to enter into partnership agreements with the states for forestry management to localities and Indian tribes. www.thefencepost.com
Maryland Medical Marijuana Sales Surpassing Forecast: Medical marijuana sales in Maryland are surpassing a previous forecast and could reach $100 million this year. The Baltimore Sun reports that medical marijuana sales totaled $67 million for the first nine months of 2018. A market research firm predicted last year that the state’s sales in 2018 would be about $46 million. New Frontier Data Senior Economist Beau Whitney said sales could now hit $100 million in December. 420intel.com
The State Of Cannabis: Who Will Dominate Florida’s Cannabis Market?:
- Florida allows 30 dispensaries per licensee – a total that is set to rise to 35 very soon.
- Florida’s patient count is exploding: It sat at 193,083 in November 2018, up 280% from one year ago.
- There are 74 dispensaries in Florida today, including 22 from state-leader Trulieve with Curaleaf in second with 17 dispensaries.
- Two huge new competitors are entering as well: Both Medmen and Green Thumb have signed leases (five and nine, respectively) to open dispensaries in Florida. seekingalpha.com
Dozens of Marijuana Licenses at Risk After Oregon Inspections: More than a quarter of Oregon’s outdoor recreational marijuana producers had deficiencies or potential compliance violations in their harvest processes, according to the results of Operation Good Harvest – the state’s effort to observe and inspect the 2018 outdoor cannabis harvest. Of the 354 licensed outdoor recreational grow sites inspected by the Oregon Liquor Control Commission (OLCC) between September and early November, 95 licensees – 27% – were found to have discrepancies or shortcomings in their harvest activities, and 41 face possible revocation of their cultivation licenses. According to the agency, many of the licensees not in compliance had multiple deficiencies. mjbizdaily.com
Maryland Sees Flood of Consolidation Deals: In Maryland, outside investors are coming in to swoop up state-licensed businesses. This is taking place despite a state law, intended to ensure that black Americans and other minorities hurt by the war on drugs stand a chance to profit from legalization, prohibiting just that kind of dealflow. According to an investigation by the Baltimore Sun, “several out of state firms” have informed their investors that they’ve locked down deals to acquire state-licensed marijuana firms in Maryland. Companies with Maryland deals or pending deals include Curaleaf, based in Massachusetts, as well as Los Angeles-based dispensary giant MedMen — which earlier this fall closed the biggest-ever deal in American marijuana history — and MPX and GTI, the newspaper reported. Aware of consolidation in other states, Maryland’s medical-marijuana laws prevent companies from holding more than one license, in any one of the state’s three categories for marijuana businesses: cultivation, sales, and processing. Yet despite all that, the deals flow on. Cannabisnow.com
Bermuda Set to Open Door to Medical Cannabis Investments: Bermuda plans to allow medical marijuana production and is inviting international companies to partner with local entrepreneurs to participate, according to recent statements by Premier David Burt. The premier pledged to legalize medical cannabis cultivation “within months” and issue the first licenses to private companies as early as next year. Doctors in Bermuda can already prescribe medical cannabis for a variety of ailments. However, the country has no domestic supply and has not tried to raise its International Narcotics Control Board import quota from the current 1 gram. That means local patients have no legal channel through which to access medical cannabis products. mjbizdaily.com
South Korea Becomes First Country in East Asia to Legalize Medical Marijuana: South Korea became the first country in East Asia to legalize medical cannabis, marking a significant milestone in the global industry and a potential turning point in how the drug is perceived in traditionally conservative societies. The country’s National Assembly voted to approve amending the Act on the Management of Narcotic Drugs to pave the way for non-hallucinogenic dosages of medical cannabis prescriptions. Medical marijuana will still be tightly restricted, but the law’s approval by the central government is seen as a breakthrough in a country many believed would be last – not among the first – to approve any use of cannabis, even if it is just low-THC to start. mjbizdaily.com
BCSC Executive Director Alleges Scheme by Self-Described Consultants: The Executive Director of the BCSC has temporarily prohibited a group of purported consultants from buying or selling the securities of 11 companies listed on the CSE, alleging that they participated in a scheme that is abusive to the capital markets. The Executive Director is also blocking all CSE-listed companies from using the consultant exemption to sell shares without a prospectus to the group of 25 people and 26 firms, most of whom are in B.C.’s Lower Mainland. www.bcsc.bc.ca
Whole Foods Predicts Hemp Will Be a Top 10 Product for 2019: The gurus at Whole Foods Market have spoken: hemp products, already incredibly popular, will be a top 10 food trend in 2019. “While CBD oil is still technically taboo, (prohibited in food, body care, and dietary supplements under federal law), retailers, culinary experts and consumers can’t miss the cannabis craze when visiting food industry trade shows, food innovators conferences or even local farmers markets.” The trend won’t stop at CBD, either. Apparently phytocannabinoids, those compounds that are present in cannabis but also in other plants, are “becoming more visible and prevalent.” “It’s clear that hemp-derived products are going mainstream, if not by wide distribution, then by word of mouth!” www.marijuana.com
Medical Marijuana Could Soon be Covered by New York Health Insurance: Taxpayers could soon be on the hook to help low-income New Yorkers score medical marijuana, thanks to a bill that would force public health-insurance plans to cover it. State Sen. Diane Savino (D-SI/Brooklyn) and Assemblyman Richard Gottfried (D-Manhattan) and pushing a doobie-ous scheme that would require government health-insurance programs such as Medicaid, Child Health Plus, the Essential Plan, Elderly Pharmaceutical Coverage and workers’ compensation to cover weed as they would any other prescription. The lawmakers claim it will help battle the opioid epidemic ravaging the state. 420intel.com
Canadian Cannabis Investor Given Lifetime U.S. Entry Ban While Travelling Through YVR: At least 12 other Canadians en route to MJ Biz Con were detained for hours. A Canadian investor has been issued a lifetime entry ban to the U.S., according to an immigration lawyer he consulted. The individual, who invests in a Canadian cannabis business that has an operation in Nevada, received the ban on Nov. 14, as he travelled to Vegas. leaderpost.com
Murphy Gives Marijuana’s Sober Cousin — Hemp — The Green Light in N.J.: Gov. Phil Murphy signed off on a pilot program Wednesday that gives New Jersey the green light to research and cultivate hemp crops. The state will work alongside qualified institutions of higher education, according to the bill Murphy signed into law. “Hemp is growing in value as a cash crop, and I am sure the New Jersey economy, and our farmers will benefit from this pilot program,” O’Scanlon, R-Monmouth, added. New Jersey will join 38 other states with similar programs for industrial hemp. www.nj.com
Oregon Recreational Cannabis Sales Soar as Prices Continue to Drop: Rampant overproduction in Oregon’s market for legal, recreational marijuana has produced a 50% drop in prices, according to recent estimates by state economists. The widely documented collapse has been tough on cannabis businesses such as cultivators and retailers – but a boon for consumers. “The real economic impact from recreational marijuana will come not from the growing and retailing, which are low-wage and low value-added market segments,” according to a recent revenue forecast by the Oregon Office of Economist Analysis. “It will come from higher value-added products like oils, creams and edibles, in addition to niche, specialty strains.” Recreational marijuana sales in Oregon will be nearly $543 million this year, forecasts show, up 29% from 2017 and well above economists’ expectations. A state study found the retail cost of a gram of marijuana plunged from $14 in 2015 to $7 last year. Mjbizdaily.com
Marijuana Legal to Possess and Consume in Michigan on Dec. 6: Michigan’s new adult-use marijuana legalization law that was approved by voters on Election Day will officially take effect Dec. 6, 2018, according to state officials. Adults 21 and older in Michigan, will be allowed to cultivate, possess and consume marijuana, MLive.com reported. But it’s still going to be a while until the state’s commercial cannabis system is up and operational. Regulators have one year to figure out the rules surrounding retail sales, and are supposed to start accepting license applications for prospective marijuana businesses starting in December 2019. www.marijuana.com
Federal Marijuana Action Is An ‘Inevitability,’ Trump FDA Chief Says: Federal action on marijuana policy is inevitable and will happen “soon,” according to Food and Drug Administration (FDA) Commissioner Scott Gottlieb. Exactly what kind of action he’s anticipating is unclear, though. After dismissing the idea that botanical cannabis has therapeutic value, Gottlieb said in a CNBC appearance on Friday that there’s “probably going to be a policy reckoning around this at some point in the future.” “Obviously it’s happening at the state level, and I think there’s an inevitably that it’s going to happen at the federal level at some point soon,” he said. Gottlieb’s comments could be interpreted as a suggestion that legalization is happening at the state level and the end of federal cannabis prohibition is the inevitability. Or the “policy reckoning” could be some kind of increased enforcement of federal marijuana laws. Gottlieb seems especially bullish about researching and approving synthetically produced cannabinoids or medicines derived from cannabis like Epidiolex, a CBD epilepsy medication the FDA approved earlier this year. That said, in the process of approving Epidiolex, the FDA also concluded that CBD doesn’t really deserve to be federally scheduled at all. The ingredient has “negligible potential for abuse” and “currently accepted medical use in treatment,” the agency said. www.marijuanamoment.net
MJBizCon Expanding to a Full Week: MJBizCon Week is scheduled for Dec. 9-13, 2019.The official MJBizCon Conference and Expo show will take place Dec. 11-13. Prior to that, the first two days of the week will feature new events and activities. HighTimes
Another Record-Setting Year for MJBizCon Mirrors Massive Marijuana Business Potential: This year’s conference attracted more than 27,000 cannabis professionals to the Las Vegas Convention Center, a record for the event and the marijuana industry. That represents a 52% increase from the 2017 show. 1,028 companies exhibited at the event, a 38% increase from 2017’s show. mjbizdaily.com
Pot-Infused Beverage Market Could Hit $600 Million by 2022: In what is becoming an interesting take on the growing cannabis industry in North America, statistics are showing that the beer industry is being impacted negatively as people switch from an alcoholic beverage to pot. No, this doesn’t necessarily mean people are opting to get high instead of drunk, either. In Colorado, where marijuana use has been legal since 2013, sales of marijuana surpassed alcohol sales for what is considered to be the first time in U.S. history. Additionally, cannabis-infused beverage sales are set to overtake the general demand for pot products, capturing 20 percent of the market for marijuana edibles by 2022, according to the analysts. Breaking it down, CBD beverages will become a $260 million market by 2022, and THC-infused beverages a $340 million market. 420intel.ca
Companies Urged to Register Cannabis Trademarks as Pot Takes Root: Global companies who plan to diversify or launch their cannabis products have been advised to identify their consumer base, create their brand and file a trademark ahead of the competition. “The opportunities to create new brands for cannabis-based products are endless, and so too should the requisite protection of intellectual property protection be in place,” said Donvay Wegierski, director at Werksmans Attorneys. Wegierski advised people registering a trademark that it should not be contrary to public policy or be offensive, and it should not be descriptive of the kind of quality or other characteristics of the product. And internationally, competition is fierce. “Earlier this year nearly 1 700 trade mark applications and registrations could be found on the Canadian Trade Mark Database covering cannabis,” said Wegierski. Wegierski expects the requirement for “use” to secure trade mark registration to be removed from Canadian Trade Mark Law in June 2019, which will encourage even more trade mark filings. www.fin24.com
Marijuana Dispensaries Reduce Local Opioid Overdose Rates, Study Finds: Looking at mortality records from 2009 to 2015, a team of researchers investigated whether the presence of dispensaries in counties with medical cannabis laws had an effect on deaths from prescription opioids, synthetic opioids and heroin. The results supported previous research, indicating that access to marijuana can mitigate the opioid epidemic.But not all counties in legal states allow dispensaries to operate. The study found that counties with dispensaries experience six to eight percent fewer opioid overdose deaths overall and 10 percent fewer heroin overdose deaths. The researchers wrote, “while legalizing medical cannabis is not associated with lower levels of opioid overdose mortality, the presence of dispensaries has a large negative impact on the number of opioid-related deaths.” Marijuana Moment
Cosponsors Double, Senate Support Continues to Grow for First Step Act: Nearly a quarter of the United States Senate has now signed on to cosponsor the new First Step Act. Twelve Republican and twelve Democratic senators are leading the way on a once-in-a-generation opportunity to reduce crime and reform America’s criminal justice system. Since yesterday (11/26/18), 12 additional senators have cosponsored the legislation.The new First Step Act is backed by President Trump and endorsed by a number of law enforcement groups, including the nation’s largest police group. It’s also now supported by 172 former federal prosecutors, including two former Republican U.S. attorneys general, two former deputy attorneys general and a former director of the FBI. Committee on the Judiciary
The Blockchain Could Save Legalized Weed: Different weed strains have different effects on people, so you could think of them as separate brands just waiting to be developed and monetized. The concern is that corporations might edge in on territory that’s been staked out by someone else. Since the cannabis industry has been criminalized by the government in the past, patents on existing plants and products are not nearly as well-defined as those in other industries. Craig Nard, a law professor at Case Western Reserve University who has written about cannabis and patent law, believes there is a legitimate fear in the burgeoning weed industry that large agricultural companies will aggressively enter the space in the near future. Patents and copyrights provide a way for smaller businesses to protect their products. Medicinal Genomics offers cannabis genetic sequencing and “point-of-grow” testing technology for weed cultivators, meaning it can give you a breakdown of the genetic makeup of your plant, along with other information. Once Medicinal Genomics has sequences a strain, it puts the information in a file, attaches a timestamp to it, and puts it on the blockchain — essentially an “online ledger” that allows data to be verified. Doing so provides more concrete evidence of what a product actually is than, say, a photo or post on a website.DNA sequencing of a plant’s genomes “can be used for defensive intellectual property purposes, where you can get a sequence of a plant,” he continues. “We end up registering the time at which that sequence existed by hashing it into a blockchain like bitcoin.” Medium
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