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Law The Cannabis Chronicles - Misc Cannabis News

In historic move, US House to vote on cannabis banking bill next week

A bill that would create a federal safe harbor for financial institutions to serve state-lawful cannabis businesses and ancillary companies will be put to a landmark vote in the U.S. House of Representatives next week, House Majority Leader Steny Hoyer said Friday.


Hoyer, D-Maryland, announced on the House floor that he will schedule the SAFE Banking Act for a vote.


His office sent out an email to lawmakers informing them of the decision.





Mariel Saez, Hoyer’s deputy communications director, wrote in an email to Marijuana Business Daily Friday afternoon that the bill is expected to reach the House floor on Wednesday.



The vote is being scheduled despite a request by civil rights groups that comprehensive reform with criminal and social justice provisions be considered first.


SAFE Banking will require a two-thirds majority vote to pass because it’s being filed under what is called a suspension of the rules.


The bill would enable state legal marijuana businesses to gain access to bank financing for operations and expansion


Currently, the industry deals mostly in cash transactions, which creates security and other concerns.


By placing a cannabis banking bill for a vote prior to a more comprehensive measure, sponsors risk losing support of some progressives who believe that federal MJ reform must include addressing the victims of the War on Drugs.


But proponents also hope to gain more support from Republicans with the addition of hemp provisions in the bill.


Rep. Andy Barr, R-Kentucky, and SAFE Banking Act sponsor Ed Perlmutter, D-Colorado, have worked together to add provisions requiring federal financial regulators to confirm the federal legality of hemp and hemp-derived CBD products, and issue guidance to financial institutions.


Hemp businesses continue to struggle to gain access to financial services, despite the fact that hemp is now legal federally with the passage of the Farm Bill of 2018.


The House Financial Services Committee advanced the SAFE Banking Act earlier this year by a resounding 45-15 vote, and cannabis industry officials believe the full House will approve by the necessary margin as well.


Separately, Senate Banking Chair Michael Crapo, R-Idaho, told Politico last week that he wants his committee to vote on a marijuana banking bill by year-end.


But Crapo indicated his office might craft its own bill instead of trying to advance the SAFE Banking Act, which was introduced in the Senate by Jeff Merkley, D-Oregon.


The Republican-controlled Senate is seen as a higher hurdle for a cannabis banking bill.
 
Feds Fund CBD Research but Refuse to Consider THC Studies

The U.S. government will spend $3 million to find out if cannabis can relieve pain, but none of the money will be used to study the part of the plant that gets people high.

'There are so many beneficial effects that patients report. We need to know the science behind it.'
Aditi Das, University of Illinois researcher
Nine research grants announced Thursday are for work on CBD, the trendy ingredient showing up in cosmetics and foods, and hundreds of less familiar chemicals. THC research was excluded.
The federal government still considers cannabis an illegal drug, but more than 30 states allow it use for a range of medical problems.
The science is strongest for chronic pain, the most common reason people give when they enroll in state-approved medical marijuana programs. But little is known about which parts of cannabis are helpful and whether the intoxicating effects of THC can be avoided.

RELATED STORY
The Most Impactful Cannabis Studies of All Time
Playing Catch Up
“The science is lagging behind the public use and interest. We’re doing our best to catch up here,” said Dr. David Shurtleff, deputy director of the National Center for Complementary and Integrative Health (NCCIH), which is funding the projects. The NCCIH is the National Institutes of Health’s lead agency for scientific research on the diverse medical and health care systems, practices, and products that are not generally considered part of conventional medicine.
THC has been investigated extensively, Shurtleff said, and its potential for addiction and abuse make it unsuitable for treating pain.
Lack of Research Is a Public Health Risk
Other federal agencies have supported cannabis research, but much of the focus has been on potential harms. Shurtleff said the grants answer the call in a 2017 National Academies of Sciences, Engineering and Medicine report, which concluded a lack of cannabis research poses a public health risk.
Another driver is the nation’s opioid addiction crisis, with its roots in overuse of prescription painkillers. The crisis has sparked new scientific interest in marijuana’s pain-easing properties.
Dr. Judith Hellman, a grant recipient from University of California San Francisco, said scientists need to better understand pain and to find more ways to treat it. “It’s very exciting to have the opportunity to do that,” she said.

RELATED STORY
The Most Important Cannabis Studies of 2018
Studies on Pain-Signaling Pathways
Hellman’s research involves the body’s ability to produce signaling molecules similar to the ingredients in cannabis. Her and Dr. Mark Schumacher’s work involves human immune cells in the lab, then tests on mice.
Human test subjects will be involved in only one of the grant projects. University of Utah researcher Deborah Yurgelun-Todd will scan the brains of human volunteers with lower back pain to see how CBD extract—mixed with chocolate pudding—affects pain-signaling pathways. Half the volunteers will get pudding without CBD as a control group.
Two more human studies may be funded in a second round of grant awards, NCCIH said.
Growing Cannabinoids in the Lab
In July, the National Institute on Drug Abuse said it would grow 2,000 kilograms (4,409 pounds) of marijuana this year at the University of Mississippi, which holds the sole federal contract for producing research cannabis. Those plants won’t be used in many of the new projects, which instead will use lab-made versions of the chemicals.
Researchers in Illinois hope to create a library of useful compounds found in cannabis plants.
“We make them from scratch and test them one by one,” said David Sarlah of the University of Illinois. Cannabis contains such tiny amounts of the interesting ingredients that it’s too costly and time consuming to isolate enough for research, Sarlah said.
Sarlah, an organic chemist, will make the chemicals. His colleague Aditi Das will run tests to see how they react with mouse immune cells.
“There are so many beneficial effects that patients report. We need to know the science behind it,” Das said.
 
20 States expected to fully legalize marijuana by 2024

The legal marijuana industry is budding before our eyes. What had once been considered a taboo industry that was swept under the rug by lawmakers has now become a front-and-center issue, as well as a big-time moneymaker for investors and companies involves in the pot industry.
According to the team of Arcview Market Research and BDS Analytics, worldwide licensed-store cannabis sales totaled $3.4 billion in 2014. Just four years later, they more than tripled to $10.9 billion. By the time 2024 rolls around, they may nearly quadruple once more, with the 2019 State of the Legal Cannabis Markets report calling for $40.6 billion in global licensed-store sales. And, mind you, this figure doesn't include cannabinoid-based pharmaceutical sales or cannabinoid-based products sold by general retail stores.
Two-fifths of the U.S. should be recreationally legal by 2024
At the heart of this growth is the United States. The U.S. is consistently viewed as being responsible for between a third and half of all global marijuana sales in five to 10 years' time. The big question simply is: Will the federal government change its tune on marijuana?
In the State of the Legal Cannabis Markets report, Arcview and BDS suggest that while medical legalization is expected in all U.S. states by 2024, only 20 states will have given the green light to recreational cannabis sales. Following you'll find the 20 states (listed in alphabetical order) that this duo expects will have legalized adult-use cannabis by 2024.
  • Alaska
  • Arizona
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Illinois
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • Ohio
  • Oregon
  • Rhode Island
  • Vermont
  • Washington
You'll note that 11 of these states have already legalized recreational cannabis use and/or sales. Illinois is set to commence legal weed sales in just over three months, with Michigan and Vermont not too far behind. Meanwhile, nine states are projected to "go green" on a recreational basis sometime between now and 2024, based on this report: Arizona, Connecticut, Delaware, Maryland, New Jersey, New Mexico, New York, Ohio, and Rhode Island.
A green highway sign that reads, Welcome to California, with a white cannabis leaf in the top right-hand corner.


Certain states take precedence
It's one thing to be a recreationally legal market in the United States; but it's an entirely different story when it's a highly lucrative market.



At the top of the pecking order is California, with $7.23 billion in projected annual cannabis spending in 2024 (this figure combines medical and recreational spending). With the Golden State expected to comprise almost a quarter of the United States' 2024 licensed-store sales – as well as singlehandedly outsell Canada that year -- it's no wonder that pot stocks are aggressively fighting for market share. Most notably, Cresco Labs (OTC:CRLBF) is in the process of acquiring Origin House in an all-stock deal. If complete, Cresco Labs will have purchased one of the few holders of cannabis distribution licenses in California, which'll give Cresco access to sell its branded products in more than 500 licensed dispensaries in the state.
But there's plenty of opportunity beyond California. In fact, 12 other states, aside from California, are expected to generate $1 billion in annual cannabis revenue by 2024.
Arguably the most intriguing of those states is Nevada, with $1.41 billion in forecasted sales in 2024. Despite being one of the least populous states, Nevada should generate the highest per-capita cannabis spending, thanks in part to the massive tourism draw of Las Vegas. This tourism is a big reason why Planet 13 Holdings (OTC:PLNHF) chose to set up the largest dispensary in the world just west of the Las Vegas Strip, and why Green Thumb Industries (OTC:GTBIF) acquired Integral Associates.
Planet 13 is currently generating about 10% of all marijuana sales throughout the state, with the company looking to replicate its success with a second store in Santa Ana, Calif. Planet 13's SuperStore in Las Vegas has seen its daily visitor count more than double between November and August.
Meanwhile, Green Thumb's purchase of Integral Associates gives it ownership of the Essence brand of dispensaries in the Silver State. Green Thumb is now the only dispensary operator allowed on the iconic Las Vegas Strip.
A tipped over prescription bottle containing dried cannabis buds that's lying atop a doctor's prescription pad.


The biggest surprise
On the other side of the coin, that leaves 30 states that should have some form of active medical marijuana program by 2024, but no adult-use sales. Maybe the biggest surprise of the State of the Legal Cannabis Markets report is that Arcview and BDS don't see Florida as one of the next states to legalize recreational marijuana.
The Sunshine State is certainly a unique case, with the state having to amend its constitution to legalize marijuana. This means it takes more than a simple majority to wave the green flag on marijuana in Florida.
Then again, it's hard to deny that momentum for legalization is growing across the country, and within the Sunshine State. A survey conducted by Fabrizio, Lee & Associates last month found that 67% of Floridians would support a recreational legalization amendment, with 45% of those polled strongly favoring legalization. Comparatively, 29% of those polled opposed the idea of adult-use marijuana.
Yet, even without recreational weed, Florida looks to be well on its way to becoming one of the largest marijuana markets in the United States. Arcview and BDS have Florida pegged for $1.9 billion in medical marijuana sales in 2024, which would be good enough for third-best among all U.S. states.
If Florida remains devoted solely to medical marijuana, it would also be considered a boost to Trulieve Cannabis (OTC:TCNNF), a multistate dispensary operator that's devoted a lot of its attention to its home market. Trulieve has already opened 30 dispensaries in Florida, which is a big reason it's a market share leader. By focusing on its brands and keeping its expenses close to the vest, Trulieve is one of a very select few pot stocks that's already profitable on a recurring basis.
Suffice it to say that the U.S. cannabis landscape should be worth closely eyeing for the foreseeable future.
 
"Research suggests that taxes — particularly taxes on substances or activities considered harmful, such as gambling, alcoholic beverages or sugary soft drinks — alter consumer behavior."

No shit....you need to be a Ph.D candidate to know this? haha

It’s high time someone studied marijuana taxes — so we did

Consumers don’t seem to mind paying sales taxes on things like food and clothing. Marijuana may be a different story.
As marijuana taxes are imposed in more states, many recreational marijuana users might cross interstate borders to avoid them or even hoard stocks of weed in anticipation of them. If state governments don’t adjust to such behavior, it will reduce revenue and most likely increase overall marijuana consumption.
Not many states have studied the implications of pot taxes on consumer behavior. So we did.

I’m a Ph.D. student of public policy, and my colleagues and I studied data from marijuana users in Oregon.

We wanted to see what the economic consequences of marijuana taxes are on this billion-dollar industry. Also, we wanted to help local governments to understand them — at a time when states are increasingly relying on these new sources of revenue to pay for education, health and law enforcement.

Changing consumer behavior

Although marijuana is considered a Schedule I controlled substance by the U.S. government, meaning the drug has a high potential for abuse and is illegal to possess, 10 states and the District of Columbia have legalized the possession or sale of recreational marijuana.

As of 2019, 33 states have permitted medical marijuana or decriminalized marijuana possession, and most Americans support legalization.
Each state with a legalized market has imposed a tax on marijuana transactions. Starting on Jan. 4, 2016, Oregon officials levied a 25% tax on recreational marijuana, which generated US$60.2 million in tax revenue that year alone.

Research suggests that taxes — particularly taxes on substances or activities considered harmful, such as gambling, alcoholic beverages or sugary soft drinks — alter consumer behavior.

If consumers foresee tax changes, they may purchase and store large quantities before implementation of a tax. This may lower overall revenue raised by the product temporarily until consumers use their stores.

Cross-border purchasing is likely to be a more permanent issue regarding marijuana taxation, especially in states like Oregon, where large population centers are located near borders of other states that have also legalized marijuana sales — making it easy to avoid taxes with a quick road trip.

Many people shifted to untaxed medical marijuana immediately after marijuana legalization passed in Oregon as you can see by the rise of medical marijuana applications post-taxation. Medical marijuana patients may also buy untaxed marijuana for friends and family, further cutting into the revenue raised.

What comes next
So what can public officials do?

One solution is to coordinate tax rates across states to avoid cross-border purchasing.

Our study also suggests that health officials need to work around medical marijuana users who circumvent taxes faced by recreational users. Connecting dispensaries electronically and making the purchasing cards computer-readable to keep track of marijuana sales could help cut down on this practice.
 
Medical marijuana users outnumber recreational consumers 2 to 1

Twice as many Americans report using marijuana to alleviate medical conditions than for recreation, new study finds.
The days of cannabis being most associated with stoners and hippies are over. As research and legalization expands, so too does the reason why Americans consume marijuana. More Americans turn to cannabis for medical conditions than to get high, according to a new study.

Published in the JAMA Network Open, researchers polled nearly 170,000 marijuana users between 2016 and 2017. The survey found that about 46% of users consumed marijuana products to cope or alleviate various medical conditions. Meanwhile, 22% of respondents said they expressly smoked, vaporized, and ate edibles to get high.
“Adults with medical conditions, especially those with respiratory conditions, cancer, and depression, were more likely to use marijuana,” the study’s authors wrote. “At present, marijuana use prevalence decreases with age, even among people with medical conditions. Because public perceptions of marijuana are becoming more favorable and medical conditions increase with age, older adults might also become frequent consumers of marijuana.”
marijuana stronger than ever but doesn't mean what you think it does

Lead author Hongying “Daisy” Dai, an associate professor in the College of Public Health at the University of Nebraska, and her team conducted survey calls with 169,036 participants through the Behavioral Risk Factor Surveillance System, which provided a representative sample of U.S. adults across states. Among young adults between ages 18-24 with medical conditions, 25.5% reported current marijuana use while 11.2% said they consumed cannabis daily.

That current marijuana use for young adults was nearly 10 times the number those ages 65 and older reported (2.2%). Researchers concluded that decreased marijuana use among older age groups possibly stems from lingering stigmas, as adults ages 65 and older were more likely to view marijuana as highly addictive and harmful. However, researchers “the increase in public acceptance of marijuana use could lead older adults to start using marijuana for medical conditions.”
As research lingers in the United States due to its federally illegal status, Dai’s team found gaps between available scientific literature and the medical conditions patients listed as reasons they were using, which included anxiety, stress, chronic pain, cancer, and more.

“Adults with medical conditions have an increased risk of using marijuana, especially those with respiratory conditions, cancer and depression,” Dai told U.S. News & World Report. “Patients who are taking marijuana for a medical condition should be informed of evidence of efficacy and adverse effects for that condition.”
 
House passes SAFE Banking Act

The House has passed The SAFE Banking Act in a major step towards providing state-legal cannabis businesses access to proper banking services and a safer atmosphere that comes with not having giant piles of money.

The bill passed late Wednesday afternoon by a vote of 321 to 103. Republicans were nearly split, with 91 voting in favor of cannabis banking and 102 against. One lone Democrat voted against the bill.

Its next stop in the Senate looks promising thanks to provisions that will help rekindle Mitch McConnell’s beloved Kentucky hemp industry with better banking services, and then it’s off to the White House.

On the eve of the historic vote, one of the most powerful members of Congress, and a newly minted champion of federal cannabis reform, House Judiciary Committee Jerry Nadlerput put his weight behind the vote.

Members of the Cannabis Caucus actually called Nadler’s MORE Act better than the SAFE Banking Act, but will be supporting both pieces of legislation.
Rep. Kendra Horn of the booming cannabis state of Oklahoma was the first person to speak on the SAFE Banking Act the day of the vote. A lot of the day’s discussions prior to the vote had been on the Debbie Smith Act and the current news cycle around President Donald Trump’s Ukraine call.

About 30 Minutes into the House’s day Horn took the podium. She called the bill an important piece of pragmatic legislation.
“The SAFE Banking Act is a bipartisan bill that confronts a problem that has arisen from the conflict between state and federal law and is currently endangering communities. As well as hindering small businesses from growing,” Horn said.

According to Horn, this past April Oklahomans spent more than $18 million on medical cannabis.
“This industry is bringing revenue to our state, helping small businesses, and helping those who suffer from physical ailments,” she said.
But that was just the pregame. Things would be dominated for the next few hours by the Ukraine scandal and the southern border. But the timing would end up almost perfect when it came time to start the cannabis banking debate.

Four minutes after 4:20 p.m. the house commenced debate on H.R. 1595. Everyone was really excited about how nice they were to each other compared to recent topics in Congress, like the whistleblower complaint resolution earlier in the day.

Rep. Ed Perlmutter of Colorado, the bills main sponsor, and Rep. Patrick McHenry of North Carolina would each control 20 minutes of time for the debate. But we use the term debate loosely. While there were some quick references to health concerns, the idea cartels wanted to launder their money in a heavily scrutinized industry, and an old school “Did you know these states are breaking the law?” Generally, things were pretty pro-pot or public safety on both sides of the aisle.
Perlmutter kicked things off saying he was proud to pass this public safety bill that was about accountability and respecting states’ rights. He also covered the most pragmatic aspects.

“We need these marijuana businesses and their employees to have access to checking accounts, lines of credit, payroll accounts, and more,” Perlmutter said.“This will promote transparency and accountability, and help law enforcement root out illegal transactions.”

Perlmutter then again stressed the most important thing was not allowing dispensaries and their employees to continue to be the targets of violent crime.
McHenry took the mic next saying he stood in opposition to the bill not because of the lack of goodwill going around, or willingness to engage, but said it’s just a fundamental difference in approaches. McHenry said he had a lot of respect for the way everyone on both sides was conducting themselves around an issue that could cause a lot of controversy.

“If we seek to give financial institutions certainty, we should deal with the listing of cannabis as a Schedule I substance. Not debating a solution for financial institutions to what is a much larger problem and a larger societal issue we must wrestle with,” McHenry said. “Should continue to be allowed to violate federal law? Does federal law need to be changed… when it comes to the scheduling of cannabis?”

McHenry went on to call The SAFE Banking act one of the biggest changes to U.S. drug policy in his lifetime. But he felt it was done with little debate and pointed to some questions he had for Financial Services Subcommittee Chairwoman Maxine Waters in March that were yet to be answered.
Waters followed McHenry. She spoke on the amount of effort everyone had put in over the years to get to the vote and stuck to the general public safety angle. Waters also noted on the ancillary services like plumbers and electricians that would benefit from getting a check and not piles of cash.

Some drug policy organizations had been wary of pushing cannabis banking through without wider conditions to support the communities hit the hardest by the War on Drugs. But Waters explained how the bill would promote diversity by giving minority and women-owned businesses access to the credit they need to compete.
The Drug Policy Alliance released a comment on the passage of the bill.

“We had no objections to the substance of the SAFE Banking bill,” said Queen Adesuyi, DPA’s Policy Coordinator at its Office of National Affairs, “However, DPA and allies from the civil rights community sent a letter of concern because we believe it is a mistake for the House to pass an incremental industry bill before passing a comprehensive bill that prioritizes equity and justice for the communities who have suffered the most under prohibition. We have long feared that passing SAFE Banking would undermine passage of the MORE Act by taking the momentum out of marijuana reform. The onus is now upon House Democrats to prove us wrong and pass the MORE Act.”

The debate would also feature the co-chairs of the Congressional Cannabis Caucus Rep. Earl Blumenauer and Rep. Barbara Lee, standing in support. Early in the debate, Perlmutter called Blumenauer the quarterback of all the various marijuana bills currently making their way through Congress.
Blumenauer would be one of the first to offer a statement following the victory.

“Today’s vote is historic,” Blumenauer said. “The House of Representatives took the most significant step thus far in addressing our outdated and out-of-touch federal cannabis laws. It never made any sense to deny state-legal cannabis businesses access to banking services. It not only seriously disadvantaged these businesses, but it also was an open invitation to theft, tax evasion, and money laundering. Congressmen Perlmutter and Heck have fought tirelessly to bring their bill to the floor, and I applaud Chairwoman Waters and House leadership for their support.”

Blumenauer also said states have outpaced the federal government on this issue, “and state-legal cannabis industries and their employees have suffered. There is much more to be done to end this senseless prohibition. This is just the beginning.”

NORML Political Director Justin Strekal was quick to weigh in on the historic vote.

“For the first time ever, a supermajority of the House voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization,” Strekal said.

Strekal went on to give his hopes on the other half on Congress.

“Now we look to the Senate, where we are cautiously optimistic,” Strekal said. “Given the strong bipartisanship of the House vote, coupled with Senate Banking Chairman Mike Crapo’s recent pledge to hold a markup on this issue, we believe that Congress’s appetite to resolve this important issue has never been greater.”

The National Cannabis Industry Association has been working on the banking issue for the past six years and today’s vote marked one of their biggest victories ever.
“It’s incredibly gratifying to see this strong bipartisan showing of support in today’s House vote,” said NCIA Executive Director Aaron Smith after speaking on NCIA’s congressional partners. “We owe a great debt of gratitude to the bill sponsors, who have been working with us to move this issue forward long before anyone else thought it was worth the effort.”

Smith called on the Senate to act swiftly in getting the bill to the President’s desk. “This bipartisan legislation is vital to protecting public safety, fostering transparency, and leveling the playing field for small businesses in the growing number of states with successful cannabis programs,” Smith said.

The SAFE Banking Act’s companion bill in the Senate is S. 1200. It was introduced by Senators Cory Gardner and Jeff Merkley in April. NCIA noted that The Senate Banking Committee held a hearing on it in July and Banking Committee Chairman Mike Crapo announced cannabis banking legislation is very possible and being taken seriously.
 
DC leaders consider 2 bills aimed at dropping workplace marijuana testing

D.C. council members are considering two bills that would do away with marijuana testing of employees at work.

Possession of marijuana and its recreational use is legal in D.C., and many District residents have a prescription for medical marijuana. But as the law stands, employees can be penalized at work if they test positive for the drug.

“Our thinking on marijuana from a criminal justice perspective has evolved. But our thinking on marijuana from an employment perspective is stuck in the last century,” said At-Large Council member David Grosso.

The two bills under discussion by the Committee on Labor and Workforce Development involve drug testing at work: The Prohibition of Marijuana Testing Act of 2019 proposes to eliminate marijuana testing in the workplace. This bill passed as emergency legislation but now must transition through the legal process for adoption as a permanent law.

The second, the Medical Marijuana Program Patient Protection Amendment Act of 2019, would do away with marijuana testing on employees enrolled in the city’s medical marijuana program who have a prescription.

“Employers should treat medical marijuana employees as they would with other medical issues,” Queen Adesuyi, with the Drug Policy Alliance, testified to the committee.

Jim Greer, with the National Drug and Alcohol Screening Association, presented to council members information in favor of keeping workplace drug testing in place.

“This current legislation may jeopardize the public safety and will certainly hinder an employer’s right to simply say, ‘I am a drug-free workplace,'” Greer said.

But, Adesuyi said, “Adults should not be subjected to intrusive, overly broad testing and potentially punished for consuming a legal substance.”

Blood and urine testing, which employers often rely on, cannot provide an accurate reading of when a person has used marijuana, others argued.

Tyler McFadden, with the National Organization for the Reform of Marijuana Laws, called it an outdated means of testing, which detects levels of THC that could have been consumed weeks earlier and does not accurately indicate impairment.

“NORML recommends employers and lawmakers cease their reliance on these ineffective procedures and, instead, institute alternative performance-based testing, such as Alert Meter or Druid, in instances where there exists reasonable suspicion of an employee’s impairment in the workplace,” McFadden said.
 
South Park Slams MedMen In Episode About Banning Marijuana Home Cultivation
Screen-Shot-2019-09-26-at-2.51.25-PM-e1569535300609.png


South Park took another hit at the marijuana dispensary chain MedMen in an episode that aired on Wednesday.

As sales start dropping at the fictional cannabis business “Tegridy Farms,” the owner, Randy Marsh, investigates and finds that former customers are increasingly cultivating their own marijuana.

“When you grow your own pot, you’re taking weed out of my children’s mouths,” he says.

He enlists his son Stan to testify in front of the City Council, raising fictitious concerns about the dangers of allowing home grow.

“What’s happened to our country? People are being wronged by a broken system and we must say no more. No more home grown marijuana,” Stan says. “As the son of a proud American farmer, I am concerned about what home grown can lead to.”

“People can grow weed wrong and poison themselves,” he continues. “Unscrupulous growers could use cheap irrigation and drown babies. The fact is simple, marijuana must be grown with Tegridy.”

When the local government declines to intervene, two people who explicitly identify as MedMen representatives show up at Stan’s farm.

Watch the episode in full here.

“We represent a billion dollar marijuana company. You seem to be fighting the same fight we are,” one representative says. “We just want to help you. Ever heard of MedMen?”

“We have a common problem: home grown weed,” he says, as the trio shares a joint.

“We’re just worried about safety, you know? Babies drowning in irrigation and such,” the other person adds.

Stan agrees that babies drowning is no good and anticipates the deal the company wants to offer.

“So you guys want to put all our money together and we go fuck this town up so nobody can ever grow their own weed again? I’m totally in,” he says.

Though deeply hyperbolic, the episode seems to draw from a real-life criticism of the marijuana company. MedMen was part of a New York-based medical cannabis association that sent a policy statement to Gov. Andrew Cuomo (D) last year, urging him not to allow a home cultivation option in legalization legislation—a request he ended up following in his proposal to lawmakers.

MedMen told Marijuana Moment at the time that it supports a home grow option but declined to answer specific questions about the company’s involvement in drafting the document.

In the actual policy statement, the association made arguments against home grow that appear to be the basis of the South Park jokes. For example, the groups expressed concerns that marijuana cultivated for personal use could contain noxious pesticides and other contaminates—though there wasn’t any language about babies drowning.

MedMen did not respond to a request for comment on the episode’s portrayal of the company by the time of publication.

In another scene, Tegridy Farms business partner Towelie asks Randy if he made “a deal with another weed company.” Here’s the exchange:

Randy: Yes, Towelie, I’m working on a merger with MedMen

Towelie: MedMen? But those guys are posers.

Randy: We have a deal in the works to put a stop to home growers once and for all.

Towelie: Jesus, I knew a guy once who thought weed should be for everybody—a guy who believed in integrity. I don’t understand who you even are anymore.

The scene ends with Randy asking what’s “wrong with trying to protect our business,” to which Towelie responds “weed isn’t supposed to be some money-grabbing business model” and that it’s “a gift from God and not something to be exploited by some stupid towel.”

This isn’t the first time South Park has appeared to knock MedMen.



In July, the show released a fictional ad for Tegridy Farms that contrasted its business model with that of a major marijuana corporation that resembles MedMen, though the company wasn’t mentioned by name. The ad is in the same style as a real one the MedMen released in partnership with filmmaker Spike Jonze in February.
MedMen is backing a proposed Florida marijuana legalization ballot initiative that makes no provision for home growing, but an Arizona measure it is helping to fund does allow for personal cultivation.
 
How Republicans learned to love a pot Bill

Republicans in Congress, who have stonewalled pro-marijuana legislation for years, are now emerging as the cannabis industry’s most valuable allies.
In a historic vote Wednesday, 91 Republicans joined 229 Democrats to pass legislation that would finally give marijuana businesses access to banks — a critical tool that the industry needs to grow.

The vote came after the cannabis banking bill's lead sponsors had spent months trying to draw GOP support, walking a tightrope to avoid casting the legislation as a weed legalization bill. The hope was that their backing would boost momentum in the Republican-led Senate.
The Republican turnout for the bill is stark evidence that the politics around cannabis are rapidly shifting after 33 states — and likely more to come — have legalized marijuana in some form. Long-running stigmas around pot are fading as cannabis becomes increasingly entrenched in local economies.
“The genie is out of the bottle,” said Rep. Steve Stivers (R-Ohio), who led efforts to build the bill’s Republican coalition even as he remains opposed to legalizing recreational marijuana.

Republicans have long been the staunchest opponents of legalization, with GOP leaders in Congress refusing in the past to consider even the narrow safe harbor that the House approved on Wednesday. The bill, which passed in a 321-103 vote, would shield banks from federal prosecution for serving marijuana businesses in states where the drug is legal. The federal prohibition on the sale of marijuana remains.

Now, the seal of approval by so many Republicans is giving the bill's backers real hope that the Republican-led Senate will pass the legislation in some fashion.
President Donald Trump has sent positive signals and is not expected to stand in the way. A turning point last year was Trump's ouster of Attorney General Jeff Sessions, who while in office reversed an Obama-era policy that allowed for legal marijuana businesses to operate.
House Republican leaders declined to try to stymie the bill, giving members freedom to vote in favor of the legislation. Among its supporters was Minority Leader Kevin McCarthy (R-Calif.).

Rep. Patrick McHenry (R-N.C.), the top Republican on the House Financial Services Committee, said he didn’t try to dissuade GOP lawmakers from supporting the bill. McHenry voted against the legislation.

McHenry's predecessor, Jeb Hensarling, a Texas Republican who chaired the committee for six years, was widely seen as a major obstacle to the legislation, which Rep. Ed Perlmutter (D-Colo.) first introduced in 2013. The bill received its first committee hearing shortly after Democrats took control of the House in January.
“What I’ve told Republican members is you need to listen to your constituents and your conscience and make the best decision you see fit,” McHenry said.
Several factors helped deliver significant Republican backing, which was reinforced by a major lobbying push by banks, credit unions and the cannabis industry.
The rapid moves by states to permit the sale of cannabis has created public safety concerns because, without access to bank accounts, marijuana businesses have been forced to transact in cash, making them a target for criminals. It has also made it hard for regulators and state officials to track revenue from the industry.

But the legalization of marijuana at the state level has also made it an issue for a growing number of vendors and service providers that may not sell marijuana themselves but do business with the increasingly lucrative cannabis industry.

The knock-on effects have helped make it a key issue for bank lobbyists and skeptical Republicans alike.

“The most compelling arguments have been centered around these secondary relationships,” said American Bankers Association President and CEO Rob Nichols. “It’s the local plumber, it’s the local electrician, it’s the attorney, it’s the accountant who are doing business with a cannabis grower or dispensary who are then having challenges associated with getting banking products and services."

Stivers said he decided to get involved early this year after a nutrient seller in his district informed him they were at risk of losing their bank accounts because they sold to cannabis-related businesses.

“We’re starting to hear from landlords, hardware stores down the street and a whole bunch of other folks,” he said.

After a March committee vote that attracted support from 11 Republicans, the bill’s backers looked for other ways to make the legislation more appealing to the GOP and Senate Republican leaders.

They focused on selling the bill to GOP lawmakers as a piece of banking legislation — not marijuana legalization.
They settled on two additions, which helped bring on more GOP lawmakers and may win over senior Senate Republicans.

One new set of provisions would establish specific banking protections for hemp products, which, like marijuana, are derived from cannabis. Hemp is an increasingly important crop in Senate Majority Leader Mitch McConnell’s home state of Kentucky, and he ensured it was legalized as part of a recent farm bill.

“I’ve been very, very consistent about opposing the legalization of marijuana but supporting the legalization of industrial hemp,” said Rep. Andy Barr (R-Ky.), who decided to support today's bill after winning the hemp addition. “This is the vehicle that’s moving. This is the way I can help industrial hemp."
The other addition to the bill would prohibit bank regulators from discouraging lenders from serving businesses based on reputational risk. It’s legislation that Republicans have been seeking for years to prevent a revival of an Obama-era Justice Department program known as “Operation Choke Point,” which critics said pressured banks to cut ties with payday lenders, gun retailers and other customers that were out of political favor.

Trump administration officials have said that initiative is over, but Republicans argue they don't want the next administration to resurrect it.
Among the program’s chief critics was Sen. Mike Crapo (R-Idaho), who is now chairman of the Senate Banking Committee. Crapo has no legal cannabis industry in his state and was first seen as a potential obstacle to cannabis banking legislation. But he recently told POLITICO he had been convinced to take up the bill in his committee — an announcement that House members believe helped move the needle further with Republicans in their chamber.

"It's one thing to vote for this knowing it's going to a deep and watery death," said Rep. Denny Heck (D-Wash.), who has been working on the legislation with Perlmutter since its inception. "It's another thing if it looks like, 'Hey, maybe this is a viable issue.' ... For him to say something, for the president to say something, it all added fuel to our fire. They were all wood pellets in the burner."

Before the House vote, Stivers said the “Choke Point" addition helped raise his estimate of likely Republican support from 50 votes to at least 80.
“It changed the math,” he said.

The addition brought around Republicans like Rep. Blaine Luetkemeyer (R-Mo.). He voted against the bill in committee and opposes recreational marijuana but has been trying to pass anti-“Choke Point” legislation for years.

Luetkemeyer isn’t convinced that the underlying legislation will resolve the cannabis industry's problems in accessing financial services. But he'll take the win. Like other lawmakers, he's also well aware of the potential medicinal benefits. His granddaughter has seizure problems, and a cannabis product known as cannabidiol, or CBD, is used to treat epilepsy.

“Sometimes you weigh the good and the bad in a bill and you find there is more good than there is bad,” he said.
 
While this article is Canadian, if my Facebook feed is to believed it's happening here in Michigan as well. And I'd have to believe everywhere....

It may be legal, but it's not protected: pot plant thefts growing


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Screen grab from a security camera shows a thief making off with cannabis plants. WINDSOR STAR

While the legalization of cannabis may have eliminated some drug-related crimes — another may be budding for green thumbs.

In the early hours of Sept. 15, someone snuck into a Colchester man’s backyard wearing what appears to be a balaclava and stole four of his legal pot plants — all caught on video. The property ovner, who did not want to be named, saw the footage on his security camera and reported the incident to police.

“I spent a bunch of money, I spent the time. I was going to end up with something I didn’t have to purchase through OCS (Ontario Cannabis Store),” he said. “It’s a prideful thing, it’s all of that. And then, in the end, someone steals your stuff.”

Essex County OPP confirmed the report, but with the investigation ongoing would not provide further details.

Since cannabis became legal last October residents are permitted to grow up to four plants on their property.

The man said he works shifts and uses cannabis to help him sleep. As a hobby gardener, he decided to grow marijuana plants for the first time this year, which he called a labour of love.

“I spent hundreds of hours tending to these since the late spring or early summer,” he said. “I would go out twice a day — minimum, just to kind of see how everything’s doing.”

Meanwhile, instances of stolen cannabis plants have been reported throughout Southwestern Ontario.

Two masked men stabbed an Oshawa man Saturday after he confronted them while they were in his backyard stealing marijuana.

Recently, a Welland man posted signs at the end of his driveway seeking witnesses for the theft of his plants. In Port Dover, a homeowner chased away an intruder who stole pot plants from a home in July. And earlier this month London police caught a plant thief after an ID was left at the scene, though no charges were laid.

London police spokesperson Const. Sandasha Bough said she can’t say if the issue is growing, since they don’t have enough documentation yet, but said there have been 11 reported incidents since the legislation changed.

While it can be difficult to determine the monetary value of a cannabis plant it can range from $400 to more than $1,000.

“I’ve come to the conclusion I’ve lost what I’ve lost. I’m never going to recover that,” said the Colchester man, who nevertheless hopes to bring awareness to the trend. “But I want to make sure this never happens again, or at least people think twice about it.”

OPP spokesman Const. Jim Root said he hasn’t heard of any similar situations in Essex County but said that doesn’t mean it hasn’t happened.

“The novelty’s still there with all this marijuana being legalized and people keeping more than they’re supposed to and so on and so forth so it will be something we keep an eye on for sure,” he said. “But I haven’t heard of it being a problem yet, anyway.”

Jon Liedtke, co-host of the Cannabis Act podcast, said this is the time of year where plants start to reach their full maturity and potency — allowing thieves to sniff them out.
“It’s not surprising with legalization we’re seeing more instances of people’s plants getting taken away from them,” he said. “It’s really unfortunate because people spend four or five months trying to grow something, now doing it for the first time, in many cases. It would be very upsetting to have that taken away.”

Liedtke said pot pinching is why many enthusiasts choose to grow indoors, an entirely different operation that requires more equipment, such as high-powered lighting.
He recommended security measures for outdoor growing such as an enclosed backyard, small greenhouses, or motion-sensor lights, but notes it’s still a risk. People want pot, after all.

The man said he knows others who’ve lost pot plants to thieves — but chose not to report it.
 
“The market has developed and matured and expanded at such a rapid rate that the federal government is playing catch-up,” said Beau Whitney, an economist at Whitney Economics, which tracks the cannabis industry.​

When are they not?

I feel for the farmers. Its a tough and risky way to make a living....but these guys and gals have had enough experience to know to NEVER trust the Government...after all, they are here to help you.....into bankruptcy or death.

Hemp’s first year as a commercial crop is turning into a disaster with billions rotting on farms

The euphoria from the burgeoning prospects of U.S. hemp, grown as an alternative to mainstream crops caught in a trade war, has turned to caution.
In the first year of widespread commercial cultivation, hemp planting quadrupled as growers sought a profitable alternative to crops such as soybeans ensnared in the U.S.-China trade dispute. The hemp-derived compound cannabidiol, known as CBD, has a non-psychoactive cannabis ingredient at the center of a wellness trend sweeping the nation, showing up in everything from beauty products to dietary supplements.

While Congress approved hemp cultivation, the Food and Drug Administration hasn’t cleared CBD yet for use in food and drinks, and the murky regulatory environment has limited expansion in the processing sector. Delta Separations, a Cotati, California-based manufacturer with booming sales of extraction machines used to make CBD, estimated that as much as US$7.5 billion in hemp may rot on farms.

“There hasn’t been the ability to install the infrastructure to support” the fledgling cash crop, Roger Cockroft, chief executive officer of Delta Separations, said in a telephone interview. “Farmers are scrambling.”

Banks also are reluctant to lend to businesses that may appear to be linked to marijuana, curbing prospects for processing expansion, Cockroft said.
Congress legalized industrial hemp and CBD in 2018, clearing the way for expanded planting. Growers seeded 142,691 acres this year, according to Department of Agriculture data on Sept. 12. With some farmers probably withholding data from the government, total acres may reach 230,000, according to the advocacy group Vote Hemp.

“The market has developed and matured and expanded at such a rapid rate that the federal government is playing catch-up,” said Beau Whitney, an economist at Whitney Economics, which tracks the cannabis industry.
David Diekhoff, a farmer in Delavan, Illinois, planted one of his 1,500 acres (607 hectares) with hemp among the soybeans and corn. His grandfather grew hemp to make rope during World War II, and his son is an executive vice president at the marijuana cultivator Revolution Enterprises.

He plans to cut the flowers from the hemp plants for use in CBD and is still looking for a buyer before the harvest at the end of the month.
“I wanted to get in on the ground floor,” Diekhoff said in a telephone interview. “It’s a new crop.”
A July survey by Whitney Economics found that 65 per cent of hemp farmers failed to find a crop buyer. Since then, many have obtained contracts from companies that may face a cash crunch.

Prices for some CBD components have fallen on the Denver-based price platform PanXchange, slumping before an expected expansion in supplies. “We’re definitely seeing some downward pressure on refined products over the last few months,” RJ Hopp, the director of hemp markets at PanXchange.
A price tumble may cause financial woes for smaller processors, leaving farmers with no payment for crops, said Bourcard Nesin, an analyst covering beverages and cannabis for Rabobank.

Farmers may face more hurdles in the fields. Hemp requires specific harvest protocols, and in order for it to be used for CBD, the crop has to be dried after the collection and before CBD extraction.

“There’s not going to be all of that supply hitting the market,” which may soften a price drop, said Whitney, the cannabis economist. “Farmers are inexperienced on how to harvest this and dry this. They’ll dry it in the fields, it’ll rain, it’ll mold.”
Diekhoff in Illinois plans to store his hemp to wait for better pricing.

“I don’t worry about it,” he said. “I think it just depends on your skills of marketing.”

‘Work in Concert’
Integrated CBD owns processing equipment to handle a hemp harvest from 1,240 acres in Yuma County, Arizona, and has lined up buyers in the cosmetics and food industries, among others, for the refined ingredient.

The business model includes growing, drying and extraction capacity to “work in concert with each other,” Patrick Horsman, the chief executive officer of Scottsdale, Arizona-based Integrated CBD, said in a phone interview. “If I was only a farmer and I didn’t have processing and drying capabilities and I was trying to get capacity from third parties, I would definitely be concerned.”

Blake Butler, the executive director of the North Carolina Industrial Hemp Association, said too many farmers made a shift amid prospects for greater profit.
The CBD craze spurred reports that “you can make money overnight, and that is not the case,” Butler said in a phone interview. The industry will balance out as farmers plan to grow hemp for other uses.
 
Malta? Frakin Malta.

hahaha....the entire world is getting ready to grow and try to export MJ. There will be tons and tons of MJ everywhere.

Meanwhile, our politicians and embedded bureaucrats in the DEA actually think that they have any control over MJ anymore. Too funny....well, also too pitiful.

Malta?

Malta to export $1.4 billion of medical marijuana by 2023

Malta announced its plans to gain footing in the pot industry and is aiming to ship out about $1.4 billion worth of medical cannabis products by 2023.
At the tail end of his visit to Canada and the U.S., Maltese Prime Minister Joseph Muscat told Television Malta (TVM), “Exportation will begin in the first quarter of next year.”



“We are estimating that exports by Year 3 of these companies will reach more than one billion Euro and that 900 jobs will be made available, however, we can attract even more players in this respect,” he added.
TVM reports Muscat is confident Canadian companies will invest in the country’s efforts — 20 other companies already have a letter of intent from Malta Enterprise, the medical marijuana regulator in Malta, to work in the Mediterranean archipelago.
Webp.net-resizeimage-15.jpg

Malta’s Prime Minister Joseph Muscat addresses the 74th session of the United Nations General Assembly at U.N. headquarters in New York, on Sept. 26, 2019. Eduardo Munoz / Reuters
Muscat hopes the move will spur stronger economic ties with North America. “The strongest interest we found in New York was in the financial services sector,” he said.
“Here in Canada the interest is in medical cannabis while in the U.S., it is in blockchain.”
Click to expand...
Muscat will be finalizing the country’s budget this week.
 
Nearing finish line, fight for cannabis banking bill shifts to the Senate


Advocates are hopeful that a bill that would allow the financial sector to finally serve cannabis businesses could head to President Trump’s desk by the end of the year.
The House in a strong bipartisan vote last week passed the Secure and Fair Enforcement (SAFE) Banking Act, which would allow banks and financial institutions to work with cannabis businesses.

The bill now faces an uncertain future in the Republican-held Senate, with little time left on the legislative calendar and Congress already distracted by funding fights and the House Democratic impeachment inquiry into Trump.

But supporters see growing momentum for the legislation and are hopeful they are nearing the finish line despite challenges.
The unusual coalition of financial sector lobbyists, progressive lawmakers, law enforcement officials and cannabis businesses backing the bill cheered the House vote as building momentum for the Senate.

“A strong bipartisan outcome in the House last night means that we have a better chance of getting the Senate’s attention,” Terry Holt, a spokesman for National Cannabis Roundtable and a partner at HDMK, told The Hill after the 321-103 House vote, which saw 229 Democrats, 91 Republicans and one Independent back the bill.
“Because the authors in the House were able to work together in a bipartisan way, the bill did improve to the point where we feel like it can reach the next stage.”
Industry groups have long pushed for legislation on the issue.

Banks and credit unions have largely avoided serving cannabis firms because of the legal limbo between federal and state laws. Cannabis is illegal under federal law, but 33 states have legalized medical or recreational use of the drug. Any financial firm that lends to, finances or holds money for a cannabis company or its employees could face steep federal penalties, even in states that have legalized the drug.

Advocates for legalization and a financial services sector eager to tap a fast-growing industry have united behind the SAFE Banking Act. The bill would prohibit federal regulators from penalizing banks or credit unions for serving cannabis businesses that comply with state laws.
It’s a top priority for a cadre of powerful financial services lobbying groups, including the American Bankers Association (ABA), the Independent Community Bankers of America and the Credit Union National Association.

The focus is now on the Senate Banking Committee and its chairman, Sen. Mike Crapo (R-Idaho), who has pledged to take action on the issue. While Crapo is personally opposed to marijuana legalization, he told CQ last week that his panel will consider the SAFE Banking Act or a similar bill “as soon as we can.”
Supporters of the bill cheered Crapo’s pledge.

“Chairman Crapo indicated he wants to get a cannabis banking bill marked up by the end of the year, and we anticipate it will be similar to the SAFE Banking Act. This week’s historic bipartisan vote in the House undoubtedly builds momentum for Senate action,” said ex-Rep. Carlos Curbelo (R-Fla.), a strategic adviser for the Cannabis Trade Federation.

But there are still questions about the depth of GOP Senate support.
While Republicans have eagerly advanced other bills to ease financial sector regulation, GOP senators have shown little interest in grappling with the controversy over cannabis.

Only two GOP senators attended a July Banking panel hearing on the bill: Crapo and Sen. Cory Gardner (Colo.), one of only five Republican co-sponsors of the Senate version of the bill.

“It is really important to see what Chairman Crapo proposes,” said a financial services lobbyist advocating for the bill.
“We don’t know where his head is on this,” the lobbyist added. “We’re very appreciative of his interest and his support and finding a resolution, but the devil’s really going to be in the details.”

Bill supporters have taken steps to win over Republican backing, in particular from Senate Majority Leader Mitch McConnell (R-Ky.).
The House version included a measure to ease regulations on hemp businesses, a crucial industry in McConnell’s home state of Kentucky. McConnell, who could make or break the measure, helped secure a provision to lift federal penalties on hemp production in the 2018 farm bill.
But McConnell remains a wild card. The Senate leader has also spoken out against legalizing marijuana and called cannabis hemp’s “illicit cousin.”
A spokesman for McConnell declined to comment.

Another question mark is President Trump, who has not addressed the issue.

The bill’s supporters, though, say GOP senators will be motived to take action to address the split in federal and state laws and the legal limbo faced by banks.
“There is a growing sense of urgency behind resolving the cannabis banking problem because it would greatly improve public safety and increase transparency into the rapidly expanding state-legal cannabis industry,” Curbelo said.

Advocates note that cannabis businesses often deal in cash because they don’t have access to banking.
Curbelo said he was confident lawmakers would decide that “this industry deserves the same access to banking services as all others.”
Randal Meyer, executive director for a cannabis coalition, Global Alliance for Cannabis Commerce, also touted the SAFE Banking Act to Republicans who don’t want to legalize cannabis.

“The SAFE Banking Act does not legalize cannabis, it solves a narrow and specific public safety and policy question,” Meyer said.
But the bill also faces opposition from groups who see it as a step toward legalizing marijuana nationally.

“We’re foolish to think this is the end to the marijuana industry, this is the beginning. To them, this is legalization by the back door because it allows institutional investors to market and promote marijuana, which is their dream,” said Kevin Sabet, former White House Office of National Drug Control Policy adviser and CEO of Smart Approaches to Marijuana, a group opposing legalization.

“We think that banking would be a handout to drug cartels who will exploit and expose U.S. financial systems to their end,” he added. “I don’t think the Republicans want to be the party of transnational criminal organization.”

Still, financial industry groups say they intend to prioritize the legislation this fall and are pushing the Senate to act.

“We believe that the SAFE Banking Act provides a solid foundation,” said James Ballentine, ABA’s executive vice president of congressional relations and political affairs.
“If it were to become law today, it would be extremely helpful.”
 
I'm actually quite glad. PharmaCann has bought (management contracts or ??? WTF knows) dispensaries in MD and then was an acquisition target for MedMen. This kind of consolidation of licenses is/may well be in violation of MD law and regulations regarding the MMJ program. But the halfwits who are running this program had no idea this was happening and are still far, far behind the power curve with corp lawyers running rings around them.

I was only in one MedMen, in Las Vegas, and I was not impressed with the vibe nor the product. Glad to not see them in MD.


MedMen and PharmaCann terminate $682 million cannabis merger

MedMen, a Los Angeles-based multistate marijuana operator, announced that its blockbuster acquisition of PharmaCann has been scuttled and that the company will focus on beefing up its retail operations in California and other states.

MedMen also fired its chief financial officer, Michael Kramer, replacing him immediately with the company’s chief corporate development officer, Zeeshan Hyder.

The decision to terminate the planned $682 million all-stock transaction, first announced almost a year ago to the day, surprised observers since it came just one month after MedMen said both companies had complied with antitrust obligations under Hart-Scott-Rodino (HSR) requirements and that the deal was now expected to close by the end of this year.

“We understand the need to pivot in a rapidly evolving industry, but this announcement comes as a surprise to us, particularly given the timing of the HSR expiry press release issued less than a month ago, which consisted of optimistic management commentary in regards to the deal’s prospects,” Vivien Azer, analyst at New York-based Cowen, wrote in a research note.

MedMen said the decision to scrap the acquisition was a mutual one on the part of it and PharmaCann.

In a news release, MedMen said the move will allow it to “deepen” its presence in the “core” retail markets of California, Florida, Illinois, Massachusetts, Nevada and New York.

According to the release, PharmaCann has agreed to transfer certain cannabis cultivation, production and retail licenses and related assets in Illinois and Virginia to MedMen for “no additional consideration from MedMen, other than the forgiveness of certain debt.”

PharmaCann also has marijuana operations in Maryland, Massachusetts and New York.

“The cannabis sector has evolved tremendously since we first announced the PharmaCann transaction and based on the current macro-environment and future opportunities that exist for our business, we believe it is now in the best interest of our shareholders to deepen, rather than widen, our company’s reach,” Adam Bierman, MedMen co-founder and CEO, said in the news release.

High executive turnover

Kramer’s ouster as CFO follows a string of high-profile departures from MedMen over the past 18 months. Kramer was less than a year into the job. In the news release, MenMen gave no explanation for his departure.

Kramer’s exit follows the fiery departure of his predecessor, James Parker, who filed a breach-of-contract lawsuit against MedMen in January.

Kramer, who has an extensive background in corporate retail, was hired to bring down some of what analysts had viewed as excessive corporate spending.

Upon his hiring in December, Bierman said, “His appointment underscores our commitment to investing in a strong management team with a track record of execution.”

Under the termination agreement, PharmaCann has agreed to surrender the following cannabis facilities and licenses to MedMen:

  • An operational cultivation and production facility in Hillcrest, Illinois.
  • A retail location in Evanston, Illinois.
  • A retail license for the “greater Chicago” area.
  • A license for a vertically integrated facility in Virginia.

“Today we turn the page and begin a new future for our company and our stakeholders,” PharmaCann Executive Director Greg Cappelli said in a statement.

“Over the past 12 months, PharmaCann has more than tripled its revenues through organic growth in Illinois, New York, and Massachusetts, as well as through recent store openings in Ohio and Pennsylvania.

“Additionally, we continue to make progress on the construction of our Ohio, Massachusetts and Pennsylvania cultivation and processing sites, which are expected to become operational in 2020.”

Antitrust concerns

Like many of the bigger planned cannabis acquisitions, the MedMen-PharmaCann transaction was subject to antitrust scrutiny from the U.S. Department of Justice.


Such unexpected scrutiny cast a shadow over cannabis company stock prices in recent months and even threatened the eventual closing of such transactions.


But MedMen, as noted, was one of the first of several companies recently to say it had complied with obligations under Hart-Scott-Rodino requirements for further compliance and was expecting to close the deal by the end of the year.


MedMen trades on the Canadian Securities Exchange as MMEN.
 
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