Flurry of Investor Interest in Arizona Sparked by Prospect of Recreational Marijuana Legalization

Investors and cannabis companies are jockeying for a stake in Arizona’s $750 million-plus marijuana market in advance of a likely adult-use legalization ballot initiative in November.

If, as expected, residents vote to legalize adult use, the recreational program could launch by next spring.

The rec initiative – which favors existing medical marijuana operators – is creating enormous interest among investors despite the recession and tight capital markets, according to industry insiders.

While the election sets up the prospect of multimillion-dollar medical marijuana license sales, it’s unclear how many businesses will decide to cash out given that the initiative gives existing operators the inside track to what is expected to be a massive rec opportunity.

“We will have adult use, the marketplace will double in size and an Arizona license is going to be one of the best investments” going, said Demitri Downing, founder of the Arizona Marijuana Industry Trade Association (MITA) and a cannabis consultant.

A business’ ability to qualify for an adult-use license immediately increases the value of an operation by 30%-80% because of the additional market opportunities, Downing estimated.

Arizona cannabis attorney Janet Jackim said marijuana companies and investors, both in-state and from other regions, “are trying to gobble up any licenses they can.”

In fact, she said she already is working on several potential transactions.

Continue Reading at Marijuana Business Daily

Louisiana Widening Access to Medical Marijuana Under New Law

BATON ROUGE, La. — Significantly more Louisiana residents will have access to medical marijuana under a major expansion of the state’s therapeutic cannabis program that Gov. John Bel Edwards has signed into law.

The law changes take effect in August.

They’ll allow doctors to recommend medical marijuana for any patient they believe it would help, and remove restrictions on which doctors can recommend cannabis.

The House and Senate agreed to the bill in the regular session that ended June 1. The House voted 75-16 for the measure, while the Senate agreed in a 28-6 vote.

The Democratic governor announced Monday evening that he had signed the bill into law.

In August 2019, Louisiana became the first Deep South state — and one of more than 30 states nationwide — to dispense medical marijuana, four years after state lawmakers agreed to give patients access.

Louisiana already allows cannabis to treat diseases and disorders such as cancer, seizure disorders, epilepsy, glaucoma, post-traumatic stress disorder and Parkinson’s disease.

Read more at wwltv.com

Arkansas Awards Sixth Medical Cannabis Grow Permit as Sales Rise

Arkansas regulators approved a sixth cultivation license to support a rapidly growing medical cannabis market nearing $100 million in total sales.

Carpenter Farms Medical Group, a minority-owned company, was awarded the license Tuesday, according to the Northwest Arkansas Democrat Gazette.

The Arkansas Medical Marijuana Commission awarded the sixth cultivation license after accepting a settlement agreement that resolved a lawsuit by Carpenter Farms, according to the Democrat Gazette.Currently, only three growers have sold products, but two additional ones are expected to harvest soon.

Read more at MJBizDaily.com

Minnesota’s Red Lake Nation Passes Medical Cannabis Referendum

Minnesota’s Red Lake Nation voted May 20 to approve a referendum that legalizes the production, regulation and distribution of medical cannabis, according to a Duluth News Tribune report.

The referendum passed with an overwhelming 80.5% of the vote, the news outlet reported.

The tribal nation is the first in the state to legalize medical cannabis, as well as the first entity in Minnesota to allow the sale of cannabis flower, which is prohibited in the state’s medical cannabis program, Duluth News Tribune reported.

Although it is unclear how the rollout of the program will be handled, who will qualify for medical cannabis and when patients will have access, Kevin Jones Jr., an organizer of the referendum, said depression, chronic pain and opioid addiction will likely be on the list of qualifying conditions, according to the Duluth News Tribune.

SAFE Banking in Stimulus Could Put Cannabis Industry on Steroids

A big and long-awaited boost for cannabis – and those who offer financial products to cannabis businesses – now in the hands of Congress may not only help usher the industry through the coming pandemic-ridden economic slump, it could have an impact akin to putting the sector on steroids.

The leadership of the U.S. House has included wording from the SAFE Banking Act in the latest proposed coronavirus economic relief package. A House vote on the COVID-19 package, a relief bill with a potential $3 trillion price tag that is being met with considerable political headwind, is expected as early as Friday.

The proposed Health and Economic Recovery Omnibus Emergency Solutions Act, or the HEROES Act, includes more stimulus checks, moratoriums on evictions, pandemic pay for essential workers, and SAFE Banking provisions. The SAFE Banking bill had bipartisan momentum in the House until it stalled in committee last fall.

If the SAFE Banking language remains the relief bill, and that bill is passed, it will pave the way for several large commercial carriers to get right into the cannabis market, as well as reinvigorate reinsurance interest, enable much-needed banking services, and bring in more capital, said Ian Stewart, a partner in Wilson Elser Moskowitz Edelman & Dicker LLP.

“If it stays in there, it will put the cannabis industry on steroids,” Stewart said.

Read More at InsuranceJournal.com

Virginia Decriminalizes Cannabis, Plans To Establish Legalization Workgroup

Over the weekend, Governor Ralph Northam approved House Bill 972/Senate Bill 02, decriminalizing cannabis in Virginia. Decriminalization, which begins on July 1, 2020 means that cannabis possession of up to one ounce can only result in a maximum $25 citation and also means Virginians cannot be arrested or criminally charged for it. Additionally, amendments to HB 972 makes it so that past criminal records regarding cannabis charges are sealed preventing potential employers from knowing about cannabis-related charges and that what was formerly considered “hashish” now falls under the same category of cannabis.

“Virginians have long opposed the criminalization of personal marijuana possession, and Governor Northam’s signature turns that public opinion into public policy,” Jenn Michelle Pedini executive director of Virginia National Organization for the Reform of Marijuana Laws (NORML) said.

Currently, possession of cannabis in Virginia is a Class 1 misdemeanor and a first offense can result in 30 days in jail and a fine of up to $500. Subsequent offenses can lead to up to 12 months in jail and a $2,500 fine.

In February, when it seemed as though decriminalization would likely pass in Virginia, local news affiliate ABC 8 noted that decriminalization would drastically reduce the number of arrests for cannabis possession in the state. “According to data from the Virginia Criminal Sentencing Commission, more than 15,000 people were convicted for a first or second marijuana possession offense from July 2018 to June 2019,” ABC 8 reported. “The vast majority were sentenced to probation but more than 1,300 served time in jail for an average of about nine days.”

Continue reading at OutlawReport.com

Coronavirus Could Accelerate US Cannabis Legalization

As the economic damage from the coronavirus pandemic piles up, U.S. cities and states are set to face significant lost revenue given the loss of business activity.

But, as DataTrek Research’s Jessica Rabe writes in a note, “there’s a simple and effective solution for states and cities to help cover their huge budget shortfalls after the COVID-19 pandemic subsides: legalize recreational sales of marijuana.”

New York, the epicenter of COVID-19 cases in the U.S., might see a revenue drop of $4 billion to $7 billion compared to what it was expecting, according to the state comptroller. With a budget of $87.9 billion, that’s significant.

11 states and Washington, D.C. currently allow legal recreational cannabis. (Yahoo Finance)
11 states and Washington, D.C. currently allow legal recreational cannabis. (Yahoo Finance)

“We’ve been thinking a lot about how life will change post-virus, and one big difference will be that state and local governments are going to encounter large unexpected tax receipt shortages,” Rabe wrote. “That’s particularly true when it comes to sales and income taxes amid stressed consumer balance sheets and massive layoffs. And unlike the Federal government, states can’t print unlimited amounts of money.”

Legalization of cannabis for adults, Rabe points out, could be a really easy way to shore up tax basis without driving people out of state, as raising income tax might do. Already it has been successful at raising “hundreds of millions of dollars annually in states like Colorado,” she said. There are currently 11 states with legalized recreational cannabis and another 15 that have decriminalized the drug in one way or another.

Continue Reading at Yahoo.com

Cannabis Finds Its Moment Amid Coronavirus Outbreak

States across the country now consider pot shops “essential” services and anxious Americans are flocking to them.

Cannabis is turning out to be the one thing the coronavirus can’t destroy.

Marijuana sales are booming, with some states seeing 20 percent spikes in sales as anxious Americans prepare to be hunkered down in their homes potentially for months. Weed sellers are staffing up too, hiring laid-off workers from other industries to meet demand. And in the midst of a historic market meltdown, stock prices for cannabis companies have surged, in some cases doubling since the public health crisis began.

“We are hiring because we are having to shift our business a bit,” said Kim Rivers, CEO of Trulieve, which is valued at $1 billion. The company is staffing up its delivery fleet, retail workers, and people to handle increased inventory shipments. “Now is a great time [to apply], particularly if you’re in a business that has seen layoffs.”

Nearly all of the 33 states with legal medical or recreational markets have classified marijuana businesses as an essential service, allowing them to remain open even as vast swaths of the retail economy are shuttered. San Francisco and Denver initially announced plans to shut down dispensaries, but immediately backpedaled after a public furor.

Weed shops are essentially being treated the same as pharmacies, reflecting a dramatic shift in cultural perceptions about the drug over the last decade.

“It is a recognition that it has taken on much greater significance around the country,” said Rep. Earl Blumenauer (D-Ore.), a longtime Capitol Hill champion for cannabis. “This is something that makes a huge difference to the lives of hundreds of thousands of people every day. I do think that this might be part of a turning point.“

Continue Reading at Politico.com

Office of Marijuana Policy Issues Maine’s First Conditional Licenses for Adult Use Marijuana Establishments

Important milestone continues Maine’s structured rollout of adult use industry.

AUGUSTA – The Office of Marijuana Policy, a part of the Maine Department of Administrative and Financial Services, announced the issuance of Maine’s first conditional licenses for adult use marijuana establishments. A total of 31 conditional licenses were mailed on Saturday, March 14, 2020 to adult use applicants, consisting of one nursery, four products manufacturing facilities, 10 cultivation facilities, and 16 marijuana stores.

This important milestone continues Maine’s structured rollout of Maine’s new adult use industry.

“Since its creation last year, the Office of Marijuana Policy has made three commitments to the public and industry stakeholders,” said OMP Director Erik Gundersen. “We committed to submitting our adult use rulemaking to the legislature before they adjourned in June 2019. We did. We promised we would begin accepting adult use applications by the conclusion of 2019. We did. Finally, we have said the adult use industry will launch in spring 2020. Today’s announcement moves us another step closer to honoring that pledge.”

Along with their conditional license, prospective adult use establishments will receive a local authorization form to present to their intended host municipality. Municipalities have 90 days—and in some instances an additional 90 days—to respond to a licensee’s request for local authorization. Some of Maine’s towns and cities have already engaged potential applicants regarding local requirements.

Once local authorization is received, OMP will request supplemental information and updated documentation from the applicant for review prior to issuance of an active license. Conditional licensees may not engage in the cultivation, manufacture, testing or sale of adult use marijuana or adult use marijuana products until the department has issued an active license.

The State of Maine first made adult use applications available on December 5, 2019. By January 25, 2020, OMP announced that it had 70 applications ready to be vetted. OMP staff have spent the month and a half since reviewing application materials for form and substance, with an eye toward details such as ensuring that all applicants completed their required state and federal criminal history record checks, obtained OMP-issued individual identification cards, and that all principles and owners satisfied the requirements of both the Marijuana Legalization Act and the adult use program rule.

OMP will continue to review pending conditional license applications and processing IIC applications. Licensing staff will also prepare to receive completed local authorizations forms from municipalities throughout Maine. In addition, the office will conduct roadshow events later this month to introduce Metrc, the state’s track and trace solution, to prospective adult use marijuana licensees and their employees.

With this important work well underway, Maine is just months away from the legal retail sale of adult use marijuana, a milestone OMP expects will occur in spring of this year. The office anticipates issuing active licenses as early as April. This process would allow for cultivation and products manufacturing facilities to come into possession of marijuana, have it tested in accordance with rule and law, and for retailers to begin stocking their shelves in preparation for Maine’s to-be-announced retail sales launch date.

“OMP identified early on that the lack of a ‘retail sales launch date’ presented many challenges for both the state and industry,” added Gundersen. “Setting such a date will ensure stores have time to stock their shelves and allow product to build up in the system to withstand the demand for marijuana and marijuana product in the first few days of legal retail sales. This approach has been used in other states and has been well received by industry stakeholders.”

This timeline is contingent upon the successful licensure of a marijuana testing facility to satisfy Maine’s mandatory testing requirements of the adult use program. OMP has identified five laboratories that intend to provide testing within the adult use program and have been working closely with each of them to better understand their plans, potential challenges they face, and how OMP can assist them in navigating the application process.

“The mission of the Office of Marijuana Policy is to ensure the health and safety of all Mainers by effectively and responsibly licensing and regulating marijuana establishments,” concluded Gundersen. “Testing bottlenecks have occurred in many states during implementation of their new adult use marijuana markets. To avoid a similar situation in Maine, we will continue to work closely with our prospective testing facilities to ensure they are able to provide this new industry with adequate testing in a timely manner.”

Information on the entities receiving their conditional licenses may be found on the OMP website at https://www.maine.gov/dafs/omp/open-data/adult-use/.

The Mills Administration created OMP within DAFS in February 2019. The Office is responsible for the oversight of all aspects of legalized marijuana, including Maine’s existing Medical Use of Marijuana Program.

The Vice of Choice When Alone is Cannabis

In the intersection of the COVID-19 outbreak and marijuana businesses across the U.S., two different stories have emerged.

At the top of the pecking order, major cannabis players aren’t looking so swell. Entire growth strategies have been scrapped, thanks to disruptions in supply chains and dropping stock market valuation. Raising capitalwas already difficultfor marijuana businesses as of late, and investors could wait to make moves until the market stabilizes.

On the other hand, marijuana dispensaries and stores can’t complain.The Fresh Toastcontacted several stores in Washington’s Puget Sound to better understand how the coronavirus had affected sales. A Snohomish County resident in Washington received the first positive test for the coronavirus in the United States and,by some accounts, the state is suffering among the worst outbreaks of COVID-19 in the country.

None of that, however, has stopped residents from stocking up on marijuana.

”Listen, when the people are in a state of unease about something like COVID-19, they need to know that they can manage their stress and anxiety,” Tedd Wetherbee, owner ofThe Gallerychain in Tacoma, toldThe Fresh Toast. “What better way to do that then with cannabis? Our sales are up and we’re happy that we can be a part of making people feel better about the madness going on around them.”

Stores have taken extra precautions to help contain the spread of the virus while still supplying residents with cannabis. At The Gallery, employees have set up stand-alone sanitizing station at all of their locations to ensure customer safety.

A new research study could help explain why marijuana sales are up. MKM Partnersconducted a surveyof 1,000 cannabis consumers and 863 alcohol consumers and found the two vices are being used the most to self-medicate in these trying times.

According to MKM analyst Bill Kirk, marijuana users were more likely to isolate themselves or gather only in small groups when consuming weed, while alcohol drinkers preferred larger groups. As medical experts and national leaders urge social distance to limit spread of the coronavirus, Americans will find themselves more isolated than usual in the coming weeks.

Continue Reading at  thefreshtoast.com

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