CCMA Greenbrief July 31: 2nd Voluntary Cannabis Recall Hits CA… Canadian Cannabis Farmers Qualify For Agricultural Subsidies… Mormon Leaders at Odds Over Legalization in Utah…

CCMA Political greenBrief

Tuesday, July 31, 2018

Canadian Cannabis Farmers Will Receive Federal Funding As Other Agricultural Farmers

“We’re seeing a broader pool of capital show up. We are very busy in the U.S. with a bunch of companies looking for a better cost of capital through the public markets, and we’re seeing a broader audience institutionally for investment into U.S. cannabis-oriented companies.”
Graham Saunders, Managing Director Of Origination At Canaccord Genuity Inc., On U.S. Focused Cannabis Stocks
“Most current and likely cannabis consumers want a variety of products offered at reasonable prices from suppliers who can vouch for the safety and origin of those products. Cannabis companies will need to have secure supply chains to protect the quality and integrity of their products, and retailers will need to meet consumer expectations, including providing a positive, engaging retailing experience and protecting the privacy of their customers, especially online.”
Jennifer Lee, Lead Partner Of Deloitte, On The Fast Growing U.S. Cannabis Marketplace

The Week(s) Ahead: 5 Marijuana Bills California Lawmakers Are Considering — And Why They Should Pass (CA – Cannabis Legislation) (July 30, 2018) Still in a state of uncertainty and experiencing growing pains, California’s cannabis industry has received a new set of rules since the state legislature adjourned on July 6, 2018. The state’s three state licensing authorities – the Bureau of Cannabis Control, the Department of Food and Agriculture, and the Department of Health — have each published their proposed draft regulations. Released on Friday, July 13, 2018, the suggested rules provide a noteworthy clue on the general direction state regulators are taking for what is projected to be the world’s largest marijuana market.


Second Voluntary Cannabis Product Recall Issued In California (CA – Cannabis Products)

Marijuana Business Daily (July 31, 2018) Just days after the first-ever marijuana product recall in California was issued, a second was underway. David Elias, CEO of Los Angeles-based Lowell Herb Co., confirmed to Marijuana Business Daily that his pre-roll-production business had issued a voluntary recall beginning July 27 after a testing lab reversed its initial finding that a specific batch passed muster and was cleared for retail sale.


Cannabis Leasing Activities Slows A Bit In North Bay (CA – Cannabusiness)

North Bay Business Journal (July 30, 2018) As California and North Coast regulations for cannabis-related companies settle out, the frenzy of commercial property acquisitions in the Santa Rosa area has cooled a bit. Yet the newly legal industry has left a mark on property pricing and contract structure. Several properties gained a lot of Santa Rosa commercial real estate market attention in the past two years as they sold for higher-than-typical prices with designs on attracting cannabis tenants.


Genetically-Engineered Cannabis: Growing Trend In North America? (USA – Cannabis Cultivation)

The Fresh Toast (July 30, 2018) Have you heard of ‘genetic engineering’ and/or ‘genetic modification’? These terms are being used more often regarding food production, especially in America. So far, genetic-engineering of plants and animals is becoming one of the largest environmental challenges of the 21st century. Currently, in America, up to 92 percent of corn is genetically engineered, 94 percent of soybeans, and 94 percent of cotton. Since this is happening with our food, who’s to say that this isn’t happening with different plants like cannabis? As time goes on, various biotech and pharmaceutical companies are utilizing genetic modification techniques in the production of cannabis compounds.


Once-Iffy U.S.-Focused Pot Stocks Are Becoming Investor Darlings (USA – Cannabis Investments)

Bloomberg (July 31, 2018) Call it the erosion of the Jeff Sessions valuation gap. U.S.-focused cannabis stocks, once considered a risky play on a legally iffy product, are seeing heightened levels of investor interest while their Canadian peers drift back to Earth. This is shrinking the discount for U.S. pot companies that was exacerbated in January when Attorney General Sessions said he’d reverse an Obama-era policy that helped states legalize recreational marijuana.


High Times Sells Stock Direct To Investors (USA – Cannabis Investments)

Ganjapreneur (July 30, 2018) Using a new public offering exemption called “Regulation A,” High Times has started selling shares of its corporation direct to non-institutional investors, according to the magazine’s investor site. High Times has been trying to go public for more than a year. In a confusing mess of announcements, the company has reportedly attempted multiple routes to listing on a public exchange. Most notably, in July 2017 the High Times Holding Corporation entered into a $250 million merger deal with Origo Acquisition Corporation — but that deal is still pending.


EDITORIAL: American Invasion: Why U.S. Cannabis Companies Are Finding A Home In Canada’s Public Markets (USA – Cannabis Investments)

Forbes (July 30, 2018) A few months back I wrote a column exploring whether Canadian companies are overextended and overvalued, particularly those trading with valuations north of $1 billion despite still having revenues of less than $100 million. Since that time there’s been no shortage of good news for Canadian publicly traded companies, best exemplified by three of the larger Canadian players getting listed on exchanges in the United States.


Considering Medical Cannabis? There’s A DNA Test For That (USA – Cannabis Research)

Healthcare Analytics News (July 31, 2018) Before using medical or recreational marijuana, people now have the chance to see how their bodies and minds might react. That’s because a biotech startup called Endocanna Health today released its Cannabinoid DNA Variant Test, a direct-to-consumer (DTC) genetic assessment kit designed to measure an individual’s response to cannabis. Using an algorithm and genetic data, the DNA test is the first of its kind that is capable of analyzing a person’s DNA and telling them how they might respond in terms of metabolization, anxiety, drug dependence and more, according to Endocanna Health.


Data Points To The Usage Of Legal Cannabis Is On The Rise (USA – Cannabis Market)

PR Newswire (July 31, 2018) According to a report provided by New Frontier Data, the legal cannabis market was worth an estimated USD 8.3 Billion in 2017 and is projected to grow at a compound annual growth rate of 14.7% and reach an estimated USD 25 Billion by 2025. The medical cannabis industry is projected to grow 11.8% through 2025, as sales of products for recreational use are set to grow at an 18.4% from USD 3.2 Billion in 2017 to USD 12.5 Billion by the end of the forecast period. Citing another report from Deloitte, nearly two-thirds of current cannabis consumers are likely to buy cannabis products from legal channels.


Study: CBD From Marijuana Plus Chemotherapy Tripled Cancer Survival Rates In Mice (USA – Cannabis Research)

Forbes (July 31, 2018) Mice with pancreatic cancer treated with a combination of cannabidiol (CBD) and chemotherapy survived nearly three times longer than those treated with chemotherapy alone, according to a new study that spotlights the potential for human treatment. CBD, the non-psychoactive (non-intoxicating) compound in marijuana, has already been shown to improve side effects of chemotherapy like nausea and vomiting. The latest results provide more justification for testing in humans, building on prior animal research that uncovered possible anti-cancer properties of the compound.


Cannabis Farmers Will Qualify For Some Federal Funding (Canada – Cannabis Market)

Forbes (July 30, 2018) When Canada officially launches its recreational marijuana market later this year, the federal government will provide the nation’s cannabis farmers with some of the same funding opportunities as other green thumb industrialists. Earlier this month, agricultural ministers representing every level of government decided during their annual meeting in Vancouver that the companies producing cannabis plants for both the recreational and medicinal sector should qualify for a portion of the agricultural support offered to traditional farmers.


A Battle Over Pot Pits The Mormon Church Against An Unlikely Group: Other Mormons (UT – Religious Beliefs)
Los Angeles Times (July 29, 2018) Brian Stoll faced a dilemma as his wedding day approached. For more than a year, he had been smoking marijuana to treat severe back pain, but to remain in good standing with the Church of Jesus Christ of Latter-day Saints and get married in the temple, he had to stop using pot. Since marijuana was illegal under Utah law, church leaders told him, it was forbidden. Stoll turned to an opioid painkiller and has continued using it since his marriage three years ago, despite unpleasant side effects and its inability to match the soothing qualities of marijuana.


Mormon Leaders At Odds Over Medical Marijuana Legalization In Utah (UT – Legalization)

Merry Jane (July 30, 2018) In November, Utahns will head to the polls and vote on medical marijuana legalization. But while recent surveys have reported majority support topping 60% for the Beehive State cannabis reform measure, leaders in the Mormon Church, Utah’s largest religious and social institution, remain torn on legal weed, casting a shade of uncertainty on the impending decision. Over the past year, Utah cannabis advocates collected more than 150,000 signatures, and beat back opposition from a powerful doctors’ lobbyist group and the DEA to finally secure a medical marijuana initiative on the state’s midterm ballot.


Widely Criticized State Medical Marijuana Chief Stepping Down (FL – Cannabis Industry)

Daily Business Review (July 31, 2018) After three years as a target of ire amid delays and disputes clouding Florida’s nascent medical-marijuana industry, Christian Bax is stepping down as the state’s pot czar. Bax, who’s been at the helm of what is now known as the Office of Medical Marijuana Use since the first cannabis products went on the shelves, leaves as state health officials gird for another round of headaches as they prepare for an onslaught of applications for a handful of highly sought-after marijuana licenses. Bax, a lawyer, has been widely criticized by legislators, patients and “ganjapreneurs” trying to establish a footprint in the state’s restricted and intensely competitive medical-marijuana market.