Coronavirus Hits Colorado FlyHi Festival & New Zealand Medcan Summit

3/18/2020

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Two more cannabis events have been impacted by the global coronavirus outbreak as Auckland, New Zealand’s Medcan Summit and Denver, Colorado’s FlyHi 420 Festival have announced postponement and cancellation, respectively.

The Medcan Summit, a medical cannabis-focused conference, was set for today and tomorrow at the SkyCity Convention Centre but organizer Dr. Zahra Champion told Sun Media that the event would be rescheduled for later this year “as the future of large events and international travel becomes clear.” About 500 delegates were expected to attend the event, which was scheduled for this month as the nation’s medical cannabis program is set for an April 1 rollout.

“This decision was not taken lightly. However, in the interest of the health of our attendees, speakers, sponsors and staff – and due to the travel restrictions announced on Saturday that are affecting a number of our speakers and attendees – postponement is the right decision.” – Champion to Sun Media

Organizers of the FlyHi festival told The Know that “there are no immediate plans to reschedule” the April 20 event. FlyHi was a free event planned for the Denver Civic Center, headlined by rapper Lil John.

As municipalities and counties issue shelter in place orders and states limit the number of people who can gather in one place, cannabis-centric events throughout the world have announced postponement or cancellation, including Michigan’s long-running Hash Bash; the popular NoCo and Southern Hemp Expo events in Denver and Nashville, Tennessee; New England-focused NECANN in Boston, Massachusetts; and Barcelona, Spain’s epic Spannabis.

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Dispensary Sales Surge Amid Social Distancing

3/17/2020

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As U.S. citizens begin to prepare for social isolation efforts aimed at reducing the spread of COVID-19, or the coronavirus, dispensaries in adult-use states have reported surges in both online sales and foot traffic. News outlets from around the country have displayed empty grocery store shelves as Americans stockpiled toilet paper and non-perishables, but food and supplies are not the only items flying off store shelves.

“After they filled their pantries, it seems consumers went out and filled their stash boxes too,” said Liz Connors, Director of Analytics at Headset.

“Sales of adult-use cannabis in Washington were up 23% on Friday, 14% on Saturday, and 33% on Sunday (over prior week). This was driven by a modest increase in total baskets (about 6% increase in tickets) and a large increase in average basket. Average baskets on Sunday were $33.70 before taxes, up 22% over the prior week and 28% compared to baskets in Jan and Feb of this year. The increase in average basket size was driven by increases in stock-up baskets with over 21% of baskets being greater than $50 (before taxes) compared to only 16% in the prior week.” — Connors, in a statement

Leafly reports that some Washington dispensaries have switched to a mandatory pre-order system to cut back on the length of customers’ stays, while the Have a Heart dispensary in Seattle is offering a 10% discount on all online orders. Cannabis delivery services in California, meanwhile, are reportedly booming — delivery options are particularly popular in the San Francisco Bay Area, where officials from six counties have issued a mandatory “shelter in place” order for the next three weeks.

Brick-and-mortar sales were also up in California, but not as drastically — residents in and around Boston, Massachusetts, however, flocked to cannabis shops to prepare for a potential quarantine.

According to the report, the coronavirus dispensary rush is somewhat reminiscent of the usual 4/20 or Thanksgiving weekend spikes in retail cannabis sales.

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Drug Possession No Longer Felony in Colorado

3/17/2020

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Colorado Gov. Jared Polis (D) has signed HB19-1263 into law, which makes the possession of four grams or less of any Schedule I through IV controlled substance a drug misdemeanor. There are some stipulations, however, such as any possession of gamma-hydroxybutyrate (GHB), four- or more time offenders of possession of Schedule I and II substances, or former charges for any amount of Schedule III, IV, or V substances will be given a level 4 drug felony.

The bill also puts new cannabis guidelines in place: possession of over 6 ounces of flower or 3 ounces of concentrate are to be classified as a level 1 drug misdemeanor. Possession of 3 ounces or less of concentrates is a level 2 drug misdemeanor. A petty offense of no more than 2 ounces of marijuana, however, will not lead to arrest — formerly, possession of these amounts would have been a class 4 felony.

Those who are convicted of level 1 misdemeanors could be subject to 180 days in county jail or 2 years of probation. Level 2 misdemeanor convictions will receive 120 days in jail or a year in probation. In both cases, violation of probation will lead to serving time in county jail. These sentences overall reduce the draconian classifications and sentences for drug violations that were formerly in place.

The bill also highlights a community substance use and mental health services grant program, which will provide grants to counties for the purpose of building strategies like mental health treatment services, diversion programs, and substance use services to reduce the number of people in county jails. Counties can be eligible for these grants if they build these programs in collaboration with community-based organizations, law enforcement agencies, and public health agencies. They have appropriated $123,139 from the general fund to go to the judicial department and probations programs.

Along with these positive outcomes, the Joint Budget Committee released a report claiming that savings from the enactment of this bill could be anywhere from $8.6 million to $13.7 million over the next five years, the Denver Post reports.

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Canopy Temporarily Closes All Dispensaries Due to Coronavirus

3/17/2020

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Canopy Growth Corp. is temporarily closing all of its retail stores throughout Canada today at 5:00 p.m. due to the coronavirus outbreak. The closures will affect all 23 corporate-owned Tokyo Smoke and Tweed retail locations in Newfoundland, Saskatchewan, and Manitoba, along with the Tweed Visitor Centre in Ontario.

CEO David Klein indicated the company would move all sales online.

“We have a responsibility to our employees, their families, and our communities to do our part to ‘flatten the curve’ by limiting social interactions. This is a big decision but it was also an easy one to make – our retail teams are public-facing and have been serving an above-average volume of transactions in recent days. Given the current situation, it is in the best interest of our teams and our communities to close these busy hubs until we are confident we can operate our stores in the best interest of public health.” – Klein in a press release

Medical cannabis patients can still use Spectrum Therapeutics to purchase medical cannabis from Canopy.

Canopy is the first Canadian retailer to announce a move to online-only sales but the spread of the coronavirus has already had an impact on the cannabis industry, including a decline in the number of vape cartridges imported into the country from China; the postponement or cancellation of cannabis trade shows, conferences, and events; and reports of long lines at dispensaries as many cities and towns move toward social distancing and the closure of non-essential businesses.

In Canada, licensed producers are allowed to sell cannabis online; however, in the U.S. delivery and online sales laws vary from state to state.

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Washington State Approves Cannabis Social Equity Program

3/17/2020

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Washington lawmakers have approved a bill to implement a social equity program in the state’s cannabis industry, High Times reports. Under the law, which still requires the signature of Gov. Jay Inslee (D), regulators at the Liquor and Cannabis Board would be allowed to award canceled, revoked, or forfeited licenses to applicants from communities most disproportionately impacted by the cannabis enforcement.

Paula Sardinas, of the Commission on African American Affairs, told High Times that while the bill is a good start toward social equity, the state needed to reform the LCB after an independent review of the agency in December found it acted more like law enforcement than a regulatory body and needed a culture change.

Aaron Barfield, an activist with Black Excellence in Cannabis, called the LCB culture “toxic.”

“People are concerned that the LCB will hand them a license with the right hand and claw it back with the left.” – Sardinas to High Times

Under the measure, the social equity licenses carry an application fee of $250 and a $1,480 licensing fee. The bill defines prospective applicants as “individuals who have been arrested or incarcerated due to drug laws, and those who have resided in areas of high poverty, suffer long-lasting adverse consequences, including impacts to employment, business ownership, housing, health, and long term financial well-being.” It also covers “family members, especially children, and communities of those who have been arrested or incarcerated due to drug laws.”

Other specific regulations associated with the bill have not yet been determined.

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Vermont’s Castleton University Launches Cannabis Certificate Program

3/17/2020

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Castleton University in Vermont is launching a Cannabis Studies Certificate program that will cover the business, cultivation, history, and culture of cannabis.

Vermont’s Castleton University has launched a Cannabis Studies Certificate program; it is the first higher education institution in the state to offer a full cannabis-centric program, VT Digger reports. The program includes three courses: Canna-Business; Cannabis, Cultivation and Care; and Cannabis, Culture and Consciousness, along with an internship component.

There are about a dozen students enrolled to complete the program, which includes cannabis industry economics, sociological and anthropological topics, and the history of the plant and policies.

Philip Lamy, a Castleton professor who helped develop the program, called it “unique.”

“Most of what I’ve seen across the country is colleges and universities focusing on cultivation, CBD production and the medicinal effects of marijuana but very few that are looking at the history, the sociology, the business aspects of it. We’re doing all of it.” – Lamy to VT Digger

The cost of each course in the program runs about $1,500 for in-state students and full-time students must be enrolled in 12 non-Cannabis Studies classes in order to receive full-time federal student financial aid, the report says.

Some faculty have voiced concerns over the program, namely that it doesn’t have an individual or public health component.

Katy Culpo, an associate professor in the Department of Health, Human Movement and Sports, said that the course offerings in the program “needed balance” and that not including the warning messaging would be a “huge mistake.”

“If it was truly a studies program of any substance – alcohol, tobacco, heroin, cannabis – you would need a least one course that really takes a hard look at what we know and don’t know about that substance, whether that’s from a pharmacological perspective, or a psychological, social, biological perspective,” she said in an interview with VT Digger.

Lamy indicated he would consider adding those topics as the program expands.

Adult cannabis use and possession were legalized in Vermont in 2018 but the law did not include taxed-and-regulated sales. Last month, House lawmakers approved a plan to legalize an industry. That measure is currently in a conference committee to align amendments before it moves to Republican Gov. Phil Scott’s desk for final approval.

Colleges and universities in states with both adult-use and medical cannabis legalization have rolled out a variety of cannabis education programs alongside their traditional courses.

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NFL to End Suspensions for Positive Cannabis Tests

3/16/2020

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The National Football Association and its Players Union have approved a new collective bargaining agreement that includes reduced penalties for positive cannabis tests, the Sporting News reports. Under the agreement players will no longer be suspended for positive tests and the threshold for failing a test is now 150 nanograms of THC per milliliter of blood, up from 35 nanograms.

Under the new rules, if a player tests positive for cannabis during the two-week training camp their test is reviewed by a board of medical professionals appointed by the NFLPA and the league who determine whether the player needs treatment for drug abuse. That two-week window for cannabis testing was shortened from four months, which means that less players will be tested for cannabis.

Under the league’s old rules, 10 players per team were randomly selected to be tested each week during the regular season and a first positive test meant a referral to the substance abuse program. A second violation led to a two game check fine, while a third violation was for four game checks. A fourth violation resulted in a four-game suspension, a fifth violation was a 10-game suspension, and a sixth violation led to a one-year suspension.

Previously, the NFL had the strictest cannabis-related rules in professional American sports and with the rule changes just the National Basketball Association has a drug policy among the four major sports leagues in the U.S. that includes suspensions for cannabis use.

Last year the NFL and NFLPA announced the creation of a Joint Pain Management Committee that reportedly would include cannabis and cannabinoids as part of its research into pain management and alternative therapies. Nine of the leagues 32 teams play their home games in states that have legalized cannabis for adult use.

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Teen Cannabis Use Down 50% in Canada Post Legalization

3/16/2020

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Statistics Canada’s National Cannabis Survey found the number of teens aged 15 to 17 who use cannabis has fallen from 20 percent to 10 percent in the nation post-legalization, the Calgary Sun reports. The survey did not find any change in cannabis use among adults 18 to 24-years-old. Which remained at 33 percent from 2018 to 2019.

Michelle Rotermann, Statistics Canada senior analyst, said that while the survey suggests cannabis use among teens fell in the year following nationwide legalization, attributing the change to ending prohibition would require a more in-depth analysis of the individuals surveyed.

“The National Cannabis Survey uses a cross-sectional design, which has been collected every three months from independent samples across Canada. This allows us to look at associations and change at the population level but not changes experienced by individuals.” – Rotermann to the Sun

Nationally, the survey found a 2 percent increase in national cannabis use following the 2018 reforms, to 17 percent.

A U.S.-focused study last year found an 8 percent decline in the number of high schoolers in states with recreational cannabis legalization who have used cannabis within the last 30 days, and a 9 percent drop among teenagers who have used cannabis 10 times in the last month, suggesting that cannabis use among youth may decline following legalization.

Rotermann warned that the numbers of teens using cannabis could spike following ‘Cannabis 2.0’ legalization which allowed the sale of edibles, concentrates, and other so-called ‘alternative’ cannabis products.

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Iowa Poll Finds Majority Support for Adult-Use Legalization

3/16/2020

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A Des Moines Register/Mediacom Iowa Poll found 53 percent of Iowans support recreational cannabis legalization in the state – the first time a poll has found majority support among Iowa residents.

Pollsters Selzer & Co. started asking about cannabis legalization in February 2013 and, at that time, found just 29 percent supported legalizing recreational cannabis in Iowa. Last year, the poll found support and opposition for the reforms even at about 48 percent. In 2017 and 2018, about 40 percent were in favor with about 58 percent opposed in both years. In 2016, legalization had 34 percent support, with 63 percent opposed; 2014 say the widest gap with 28 percent for and 69 percent against.

A supermajority – 75 percent – of individuals 35 and younger supported legalization ion the state, the poll found, along with 56 percent of Iowans aged 35 to 54. Support dropped to 34 percent among those 55-and-older. The reforms were supported by a majority of Democrats (67 percent), independents (58 percent), the non-religious (79 percent), people who make less than $70,000 a year (59 percent), Catholics (53 percent),  and people who live in cities (60 percent), suburbs (58 percent) and towns (53 percent).

Just 44 percent of rural Iowans supported the reforms, along with 42 percent of Protestants, 30 percent of evangelicals, and 37 percent of Republicans.

Another 81 percent of respondents supported expanding the conditions that qualify for the state’s medical cannabis program. Last week, House lawmakers approved a bill that would expand the list to include chronic pain, post-traumatic stress disorder, and “severe, intractable autism with self-injurious or aggressive behaviors,” the report says. That bill, which also allows patients to purchase 4.5 grams of THC-rich cannabis in a 90-day period, still requires Senate approval.

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Study: Cannabis Effective Against Fibromyalgia Symptoms

3/13/2020

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Researchers at the Luigi Sacco University Hospital in Milan, Italy have published new research that suggests medical cannabis can be effective in the treatment of fibromyalgia symptoms, the Cannabis Exchange reports.

The study, published in Clinical and Experimental Rheumatology 2020, recruited 102 fibromyalgia patients who were given two types of cannabis oils, one rich in THC and the other a balanced blend of THC and CBD. Participants were monitored for six months and were asked to measure the severity of their symptoms — which generally include fatigue, anxiety, depression, and prolonged pain — throughout the study using the Fibromyalgia Impact Questionnaire Revised (FIQR).

Some patients experienced significant improvement with their symptoms: 44% of patients reported a significant improvement in sleep quality, 33% reported improvements in their FIQR scores, 42.4% said the treatments helped with anxiety, and 50% said it helped with depression. Additionally, 47% of participants said they reduced or ceased other analgesic treatments during the study. Some patients (54.5%), however, did report a worsening of their fatigue symptoms.

“This observational study shows that adjunctive MCT [Medical Cannabis Treatment] offers a possible clinical advantage in FM [Fibromyalgia] patients, especially in those with sleep dysfunctions. The clinical improvement inversely correlated with BMI. The retention rate and changes in concomitant analgesic therapy reflect MCT efficacy of the improved quality of life of patients.” — Excerpt from the study’s conclusions

Notably, most of the study participants (like most fibromyalgia patients, in general) were women.

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Maine Committee Approves New Rules for Cannabis Caregivers

3/13/2020

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Maine’s legislative Health and Human Services Committee has approved a cannabis caregiver regulation bill that would require potency testing and labeling but does not include provisions backed by the state Office of Marijuana Policy’s that included a ban on small extraction labs, federal background check requirements, and a limit on plant sizes, the Portland Press Herald reports.

Dawson Julia, a medical dispensary operator, said the testing requirement would drive up prices for small-scale caregivers, many of which sell less than $500 worth of cannabis a week. Under the current regime, plants grown by caregivers only need to be tested when they make an advertising claim, such as THC amounts or being pesticide-free.

“This is standard procedure from the corporate scum that continually use our government as a weapon to destroy the small competition. Maine will become just another feeding ground for the blood-sucking vampires of corporate cannabis.” – Julia to the Press Herald

The measure also includes a proposed fine schedule for caregivers who willfully flout regulations, but they did cut the fines in half from what they were in the original version of the bill.

Maine has about 2,600 medical cannabis caregivers who sold 76.5 percent – or about $85.3 million – of all cannabis sold in the state last year. The reform bill still needs approval from the Legislature.

Maine voters approved cannabis legalization in 2016 but regulations had been vetoed twice by then-Gov. Paul LePage (R) until it was overridden by the legislature. In October, officials anticipated recreational sales would begin this month but last week pushed that prediction to June.

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Cannabis Legalization Heads to Parliament In Lebanon

3/13/2020

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Lebanon’s draft cannabis legalization law has been sent to its Parliament, but the measure would only legalize products that contain less than 1 percent THC, Al Jazeera reports. The measure also calls for enhanced penalties for breaking cannabis-related laws and prohibits anyone with a criminal record from getting a cannabis license or working in the industry.

Karim Nammour, a lawyer with Legal Agenda who specializes in drug policy, told Al Jazeera that the bill was “an opportunity missed” and that lawmakers “failed to take a holistic approach” to the reforms.

Sandy Mteirik, a drug policy development manager at Skoun, a Lebanese nongovernmental organization focused on drug rehabilitation and advocacy, said the bill is “not what the farmers of Bekaa want.” The Bekka Valley region is home to the most cannabis cultivation in Lebanon.

“There is no clear mechanism to integrate the existing illegal market into the legal market. You can’t just ignore the implications and consequences of criminalizing drug use and say this new market is the priority.” – Mteirik to Al Jazeera

Prime Minister Hassan Diab said that the nation’s cannabis would likely be grown by “big companies” and “other farmers” and anticipated the sector would be “big business.” Diab has previously expressed support for amnesty for some cannabis crimes; between 3,000 and 4,000 people are arrested every year for drug crimes – not just cannabis – in Lebanon.

The draft law would create a commission with a regulatory authority that would issue licenses for importing seeds and clones, creating cannabis plant nurseries, cultivation, manufacturing, and exporting. Licenses could be awarded to Lebanese pharmaceutical companies, industrial fiber, oil, and extract companies, and foreign cannabis companies. Licenses would also be available to specialized agricultural co-operatives established in the country, Lebanese citizens such as farmers or landowners, and labs and research centers permitted to work with controlled substances.

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Michigan’s Hash Bash Postponed Due to Coronavirus

3/13/2020

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Michigan’s long-running cannabis celebration, Hash Bash, has been postponed due to the coronavirus outbreak, organizers announced yesterday. It’s the latest cannabis-centric event to be postponed or canceled as the global illness spreads.

Nick Zettell, the event’s organizer, made the announcement on Facebook, saying the decision was made in accordance with the state’s declared state-of-emergency and the move by the University of Michigan to cancel all events with more than 100 planned attendees.

“This was not an easy decision to make. In fact, it was actually made much easier by the University’s sensible and proactive decision to cancel all events [more than] 100 People.  Postponing this event is the correct decision, but it carries an emotional weight for myself, the HB Planning Committee, and all of our participants and attendees.” — Zettell in a March 12 Facebook post

Zettell noted that the organizers have “for years…championed the sick and ailing” and that it was important to the group to “respect the health and safety” of the community and country.

“These risk [sic] are not to be overlooked and mitigating the spread of COVID-19 is our responsibility as responsible cannabis users,” Zettell wrote. “This is difficult for all of us, but trust that we are doing the right thing. I have a lot more to say on the matter, and a lot more thinking to do, but believe me when I say this: we will be working very, very hard to make sure the next Hash Bash is the biggest and best ever.”

A new date for the event – which would have been the 49th iteration – has not been announced. It had been scheduled for April 4.

Over the last two weeks, the spread of the coronavirus has led to the postponement of Expo West, CannTech and PsyTech, NoCo Hemp Expo and the Southern Hemp Expo, the conference for the National Cannabis Risk Management Association, NECANN, and Spannabis.

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House Committee Approves Medical Cannabis for Veterans

3/12/2020

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The House Veterans’ Affairs Committee has advanced two separate pieces of legislation that address veterans’ access to medical cannabis, Marijuana Moment reports.

The Veterans Equal Access Act, a proposal put forward by Oregon Rep. Earl Blumenauer (D), would let VA doctors make medical cannabis treatment recommendations in states where medical cannabis access is legal. The VA Medical Cannabis Research Act, proposed by California Rep. Lou Correa (D), would require the VA to investigate the effectiveness of medical cannabis in treating PTSD and other afflictions commonly faced by combat veterans.

The veterans access proposal was advanced on a 15-11 vote, while the research bill was approved in a voice vote.

“Today was a monumental day for our veterans. We have been working for years to reform this counterproductive policy that forces veterans outside of the VA to receive legal medical cannabis treatment for chronic pain and PTSD. This is the culmination of the tremendous work of our movement, but we will not be finished until this becomes the law of the land. We must reform our federal cannabis policy.” — Rep. Earl Blumenauer, in the report

Rep. Correa, meanwhile, said that cannabis could be a long-sought alternative to opioids and other dangerously addictive prescription medications.

“Many studies from around the world show cannabis’s effectiveness for treating PTSD and chronic pain,” Correa said. “It’s time we did the research and got our vets the medications they need. We owe it to every veteran to never stop looking for ways to treat their scars.”

The bills’ appearance in the committee represented the first markup of federal cannabis legislation in 2020. Similar proposals were discussed and scheduled for a vote last year, but those votes were ultimately called off.

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Creso Pharma Hires Former Canopy Growth Executives

3/12/2020

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Creso Pharma Limited (ASX:CPH) has appointed two former Canopy Growth Corp. (TSX:WEED, NYSE:CGC) executives to the senior management team of its wholly-owned Mernova Medical Inc. in Nova Scotia, Canada.

The pair are former employees of Canopy Growth Corp, the world’s largest cannabis company by market capitalisation, currently capped at C$6.8 billion, having once hit the heights of C$24 billion.

Mr. Jack Yu has been appointed as managing director and brings expert-level knowledge of cannabis cultivation and production from 25 years of practical experience growing cannabis, including nine years of consulting for licensed Canadian medicinal cannabis growers.

Mr. Yu’s experience includes working for Canopy Growth Corp. (TSX:WEED, NYSE:CGC), the world’s largest cannabis company by market cap in the position of Production Manager.

He also held the role of Interim Cultivation Manager for Canopy’s Newfoundland, Edmonton, Eastern Canada and Scarborough facilities, and previously held the position of Master Grower for MedReleaf Corp.,  which is now owned by Aurora Cannabis Inc (TSE:ACB).

Furthermore, he consulted for Health Canada license applicants throughout the process to attain licenses for cultivation, production and sales of medicinal cannabis in Canada.

As Managing Director, Mr. Yu will replace outgoing Managing Director Mr. Bill Fleming, and will be responsible for managing all operations at Mernova and will work closely with the Creso Pharma Board.

Isaac Allen has been appointed Vice President.

Mr. Allen has significant expertise in optimising business operations from executive positions in industries spanning cannabis, insurance, technology and entertainment.

He was formerly National Operations Process Improvement Manager at Canopy, where he developed and executed a number of business strategies and efficiency initiatives.

He is also the founder and former chief executive of a disruptive insurance technology start-up and has held senior executive positions at various companies.

Mernova close to achieving European Union GMP certification

Mernova continues to work towards securing European Union Good Manufacturing Practice (GMP) certification. 

Once this certification is obtained, Creso Pharma will be able to begin sales of high-quality cannabis flower and oil into the established and growing consumer markets in countries such as Germany and Switzerland.

Mernova is also continuing to ramp up production and sales in North America, with its latest deal closing last week at a value of approximately C$410,000.

The sale was comprised of varying quantities of four strains of Mernova’s high-quality cannabis flower, and Creso Pharma has received the full purchase amount from the buyer.

For the full year 2019, Mernova’s revenues were AU860,000 (C$761,000), highlighting that the recent sale represented more than 60% of full-year revenues in 2019, making for an excellent start to the year. 

The facility is scaling up to full production capacity which Creso Pharma expects it to achieve this year.

Highlighting the diversified experience the new executive appointments bring to Creso Pharma, chief executive Miri Halperin Wernli said, “We are looking forward to Mr. Yu and Mr. Allen joining the leadership team at Mernova.

‘’Both of them bring practical experience from a variety of fields, not only limited to the cannabis industry.

‘’We believe that they will be invaluable to Mernova and Creso Pharma as we continue to ramp up production and sales.’’

Mernova vice president Isaac Allen said, “Mernova is emerging to be a promising supplier of premium quality flower and oil to customers across the globe, and a compelling opportunity for investors looking to gain exposure to a first-class cannabis production facility. ’I am confident that I will be able to help Mernova further optimise its business operations as it moves closer to obtaining its EU GMP certification.”

Mernova Managing Director Jack Yu also pointed to his relevant attributes in terms of gaining European Union certification in saying, “I am excited to be taking Mernova forward as it looks to scale up its production capacity this year.

“I believe my knowledge of cannabis cultivation and production, as well as my experience in working with Health Canada will prove a real asset to Mernova as it looks to secure the certification that will allow it to commence sales in Europe.”

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Study: Legalization Caused $130M Revenue Boost at Denver Hotels

3/12/2020

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A Penn State University study found that cannabis legalization led to an immediate increase of $130 million in revenue for hotels in Denver, Colorado. Researcher John O’Neill, a hospitality management professor at Penn State who conducted the study, said the effect only lasted about a year and was also partly due to an increase in post-legalization hotel prices.

“We found that Denver hotels were able to charge and receive higher prices for hotel rooms following recreational marijuana legalization, and also found increased visitation to the Denver area with growth in occupied hotel rooms of 9 percent in 2014, higher than any other year we studied, resulting in positive economic impact.” – O’Neill to Penn State News

The study also found the positive effects were more pronounced in tourist-oriented, lower-priced hotels than in higher-priced hotels that typically cater to commercial travelers. Additionally, those positive effects were unrelated to the distance between hotels and recreational dispensaries but “hotels generally located in the neighborhoods and areas of the city where dispensaries are located experienced the most positive effects,” O’Neill said in the report.

O’Neill explained that while the study was conducted during a period of economic growth overall in the U.S, Denver‘s growth after legalization “was above and beyond what would have been otherwise expected without legal recreational marijuana.”

“In addition, its growth was greater than comparable cities, such as Albuquerque, Austin and Salt Lake City. Also, its growth was greater than national averages,” he said. “I believe the difference in hotel revenues was due to the legalization of recreational marijuana in Denver.”

The study, which was conducted using STR hotel data, geo-coordinates and opening dates of recreational dispensaries, appeared in the Journal of Real Estate Literature.

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Idaho House Committee Blocks Hemp Legalization Bill

3/12/2020

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Idaho’s House State Affairs Committee has voted to hold a hemp-legalization bill, likely killing the measure for this year, the Capital Press reports. Lawmakers in the committee have the authority to reintroduce the measure, which was approved by the Senate last month, but it’s unlikely to do so this session.

While the measure would have authorized hemp production in the state, it excluded CBD legalization.

Idaho had become a flashpoint for hemp policy following federal legalization in 2018 after law enforcement agencies in the state continued arresting truckers shipping hemp through the state, which remained a violation of Idaho law.

Last November, Republican Gov. Brad Little signed an executive order to explicitly allow transportation of out-of-state hemp shipments through the state. Little called it “a stop gap measure” until lawmakers could develop a “permanent regulatory framework” around the plant. Little’s executive order only allows hemp to be transported “on interstate highways and in the immediate vicinity of an interstate highway.” In May the U.S. Department of Agriculture issued a memo allowing interstate hemp transport, but Idaho police continued to make arrests despite federal law and the USDA guidance.

Opponents of Idaho’s hemp legalization argued that the reforms would set the stage for recreational cannabis legalization and that other states have found it difficult to differentiate between hemp and THC-rich cannabis, which makes prosecuting cannabis crimes problematic for law enforcement officials.

Only Idaho, South Dakota, and Mississippi have not legalized hemp cultivation. The USDA released federal hemp production rules last October.

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New Mexico Supreme Court Deliberates Tax-Free Medical Cannabis

3/12/2020

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New Mexico officials are asking the state’s Supreme Court to determine whether or not medical cannabis products are exempt from gross receipts tax, like prescription drugs, according to New Mexico Political Report. On Monday, the state Attorney General’s office filed a petition with the court on behalf of the state Taxation and Revenue Department asking for clarification on the issue.

The filing stems from a 2014 case when licensed medical cannabis producer Sacred Garden asked the tax department for a refund on the gross receipts tax the company paid that year. That request was denied by the agency but the state Court of Appeals ruled in favor of the cannabis company, deciding that medical cannabis qualifies for the same tax exemption as prescription drugs, the report says.

In January, the state Court of Appeals ruled that a doctor’s recommendation to use cannabis is essentially the same as a traditional prescription drug. The court also argued that when the Legislature was considering the medical cannabis law, state analysts did not consider tax revenues from medical cannabis sales and, therefore, intended it to be tax-deductible, according to the report.

Special Assistant Attorney General Cordelia Friedman argued in the petition that because federal law prevents physicians from writing cannabis prescriptions it does not fall under the same tax-exempt category as prescription drugs in the state. Friedman argues that the logic in the Appeals Court decision is flawed since neither those who drafted the bill, nor lawmakers, explicitly included tax exemption language in the measure.

“The term ‘prescription’ does not appear in the Act or the regulation promulgated to provide guidance for individuals wanting to obtain ‘registry identification cards’ to receive medical marijuana.” — Friedman in the petition, via New Mexico Political Report

Friedman also argues that there is “no discernible benefit to those in medical need when Sacred Garden receives its requested refund predicated on past sales where it undisputedly charged gross receipts tax to its customers with no obligation to refund it to those customers.”

Following the January Appeals Court ruling, several cannabis dispensaries in the state announced they would no longer charge taxes. If the Supreme Court sides with Sacred Garden, they would be forced to pay back about $24 million in tax revenues paid by the state’s medical cannabis producers.

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California Cannabis Tax Revenues Pass $1 Billion

3/11/2020

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Cannabis-derived California tax revenues have reached $1 billion in just over two years since the launch of recreational sales, the Orange County Register reports. Most of the funds have been used to cover cannabis industry regulatory costs and those associated with the cleanup of public lands harmed by illegal grows, cannabis research, and childcare for low-income families.

Growth, however, has been lower than expected in the nation’s largest cannabis market; slowing in the fourth quarter to 1.5 percent down from 15.5 percent in previous quarters, according to Department of Tax and Fee Administration figures outlined by the Register. The first three months of legalized sales in the state brought in $72.6 million in tax revenues to the state, while the last three months of 2019 brought $172.7 million. California officials had expected to raise $1 billion a year from cannabis industry-derived taxes.

According to the report, 75 percent of cannabis sales in the state still happen illegally as prices at licensed dispensaries are 30 percent to 80 percent higher than prices in the illicit market. California’s tax structure includes a 15 percent excise tax, regular state sales taxes, a cultivation tax by weight, and municipal taxes which can be as high as 20 percent. On January 1, officials actually raised wholesale taxes on flower, leaf, and plants. Regulators said those tax hikes were in line with inflation.

Last October, Gov. Gavin Newsom (D) signed a bill that would override section 280E of the Internal Revenue Service Code allowing state-approved cannabusinesses to take normal business deductions. Lawmakers have introduced bills to eliminate the cultivation tax and temporarily lower the excise tax; however, similar bills have previously failed in previous sessions.

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San Francisco May Consider Freezing Cannabis Licensing

3/11/2020

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While cannabis sales in San Francisco have increased since statewide legalization in 2018, the number of licensed dispensaries has also increased and their average individual sales are shrinking. As a result, officials may consider a freeze on cannabis licensing in the city, the SFist reports.

Despite San Francisco’s increasing rate of cannabis sales, businesses are not benefiting — and there are currently 133 pending applications for new dispensaries, including some social equity applicants.

“You can think of it as the pie getting bigger, but the average slices getting smaller,” Jeff Pomrenke, a controller’s office analyst, told the SF Chronicle. Specifically, individual dispensary sales have dropped on average from $6.3 million to $3.4 million, likely due to the influx of new dispensaries.

When California voters opted to legalize adult-use cannabis in 2016, business owners and advocates warned against burdensome regulations and high taxes but officials went on to install one of the strictest and most heavily taxed state-legal cannabis marketplaces. Today, despite having legalized, the state’s unregulated market continues to flourish, particularly in cities where cannabis prices are driven up by additional regulations, local taxes, and high costs of living.

“San Francisco’s retail cannabis industry is still in its infancy, but it’s clearly facing some growing pains,” said city Supervisor Rafael Mandelman.

“Regulatory requirements are tough for small businesses generally, and the additional burdens placed on cannabis businesses are particularly challenging. As policymakers, we clearly need to work with equity applicants, industry stakeholders and the Office of Cannabis to shorten permit approval timelines and address market oversaturation.” — San Francisco Supervisor Rafael Mandelman, via the SF Chronicle

According to a 2019 audit by the United Cannabis Business Association, there were some 2,835 unlicensed dispensaries and delivery services in California and just 873 licensees.

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Spannabis & NECANN Boston Postponed Due to Coronavirus

3/11/2020

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Organizers for Spannabis and the New England Cannabis Convention have postposed the events amid coronavirus fears, bringing the total of postponed cannabis industry events to at least seven. NECANN was scheduled for later this month at the Hynes Center in Boston, Massachusetts; Spannabis was scheduled to take place in Barcelona, Spain this weekend, from March 13-15.

Spannabis decided this morning to postpone the event after “extraordinary measures” were announced by top officials in Catalonia, Spain.

“Much to our regret, …. gatherings of more than 1,000 people at indoor or outdoor events have been banned, in a bid to curb the spread of Covid-19 coronavirus in Catalonia. … We have tried as hard as possible to hold Spannabis normally, but under these circumstances, we have no alternative.” — Spannabis organizers, in an emailed announcement

Organizers said Spannabis will return later this year in the fall but did not set an official date.

According to the Tuesday update on the NECANN website, co-founders Marc Shepard and Jeff Lawrence said they have not yet secured a new date for the event but indicated vendor registrations and pre-sale tickets would be honored for the new date. The update notes that two popular events – the NE Canna Community awards show and NECANN Competition awards – would also be postponed.

“We appreciate everyone’s patience and support during this incredibly difficult time and this decision, and look forward to working with everyone to make this year’s event as successful as it has been for the last five years.” – Shepard and Lawrence in a statement

The website still lists dates for planned conventions in Chicago, Illinois, Burlington, Vermont, Springfield, Massachusetts, Atlantic City, New Jersey, and Portland, Maine but Tuesday’s update does not indicate whether these planned events will go ahead as scheduled.

On Monday, three other cannabis industry events announced postponement, including the long-running NoCo Hemp Expo in Denver, Colorado – which was rescheduled for August – and the group’s planned Southern Hemp Expo in Nashville, Tennessee. The National Cannabis Risk Management Association event planned for Las Vegas, Nevada was also postponed.

Last week, Anaheim, California’s Expo West was postponed without a makeup date; while CannTech and PsyTech organizers said the Tel Aviv, Israel event would be pushed back until June.

The U.S. Centers for Disease Control and Prevention have suggested canceling large events and mass gatherings amid the outbreak.

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Survey Suggests 5mg is Ideal Cannabis Edible Dosage

3/11/2020

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A recent survey conducted by Canadian cannabis company Organigram found that Canadians’ ideal dosage for edible products is 5 milligrams or less per serving. The survey also found that those 35 and older were more interested in cannabis-infused baked goods and those 19-35 who were more interested in sweets, such as candies.

Greg Engel, CEO of Organigram, said the data was important in the wake of ‘Cannabis 2.0’ rollout in the nation which legalized so-called ‘alternative cannabis products,’ including edibles.

“Legalization has changed the way people think about cannabis consumption. Entering this new era of cannabis legalization and designing new product types, we couldn’t assume to know Canadians’ attitudes on edibles, so we asked them. … These insights will not only help our product teams make informed decisions around product design but will help us understand what Canadians need to know most.” – Engel in a statement

The survey found that women were more interested in sweets than men, 68 percent to 52 percent, respectively. In all, one in three Canadians expected to use edible cannabis products. Most consumers (54 percent) said they planned on using edibles at home alone, with 10 percent less saying they would use in private with friends. Almost 25 percent of respondents said they would use edibles in public spaces.

The survey also found that more than half of cannabis consumers – 53 percent – say thye need more information about edibles in order to make informed purchases, especially those 65 and older.

Canada legalized cannabis for adults in 2018 but edibles only became available in the regulated market last December.

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Study: 98% of Vaping Illness Patients Bought Illegal Products

3/10/2020

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The study was conducted by doctors from the California Department of Public Health (CADPH) and Centers for Disease Control and Prevention (CDC) with the goal of finding and analyzing the clinical characteristics and vaping exposures of patients hospitalized with EVALI. Data was gathered by the CADPH as it was reported from treating clinicians from August 8, 2019, to November 8, 2019.

The case series covered 160 patients’ medical data along with data collected from a survey completed by 86 (54%) of the patients via a standardized questionnaire. Of those 86 patients, only one patient said they purchased vape products from a legal source.

Of the 160 total patients, 62% were male and the median age was 27 years with an official age range of 14 to 70 years old. Of these cases, 46% of patients were admitted to the intensive care unit, four people died, and 29% required mechanical ventilation. Of those directly interviewed, 83% of patients admitted to vaping THC products, 43% vaped CBD products, and 47% vaped products containing nicotine. These patients were asked to report each brand, type, flavor and active ingredients in each product that was used over the 90-day period prior to hospitalization. Officials also collected the pods, vapes, and cartridges from patients after specifying the exact locations where products were purchased. Between the 86 directly interviewed EVALI patients, 130 products were collected.

Eighty-seven of the collected products were THC-only and 91% of those relied on pre-filled cartridges. There were 25 products that contained only nicotine with just 48% of those coming in the form of a pre-filled cart. 56% of THC cartridges in the study were labeled as using flavoring agents and 76% of nicotine vape products were labeled as flavored.

Patients commonly purchased nicotine products from a dispensary or vape shop, according to study data. EVALI patients who smoked THC-only vape cartridges or pods commonly purchased them from another person (44%). Many reported purchasing vape products from a dispensary (33%) and of these, 25% of those interviewed stated that the dispensary was licensed by the state of California. After further research, however, it was found that only four products (all of which were actually purchased by the same patient) came from a licensed adult-use dispensary. Aside from unlicensed dispensaries and friends, the patients had either purchased the contaminated vape products from pop up shops or couldn’t name their source.

After collecting patient data the study analyzed the products, 49 of which were THC-vapes. Between these, vitamin E or vitamin E acetate was found in 84% of vapes. All products tested under 100 parts per billion for heavy metals except one which tested positive for nickel. Low levels of pesticides were also found in 67% of THC containing vape carts including myclobutanil, bifenthrin, bifenazate, tebuconazole, metalaxyl, propiconazole, imidacloprid-urea, piperonyl butoxide, and trifloxystrobin.

The report highlights the fact that most of these contaminated cartridges and pods came from illegal sources, and the data supports the theory that vitamin E and/or vitamin E acetate is the likely culprit in EVALI cases presented in the last year. Researchers do note, however, that more research must be done to reach more conclusive answers.

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DOJ Memo Blocks Gun Sales to ‘Habitual Marijuana Users’ 

3/10/2020

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A recent memo from the Bureau of Alcohol, Tobacco, Firearms, and Explosives has rescinded a 2006 allowance for gun dealers in Michigan to accept a state-concealed pistol license in lieu of a federal background check. The change, first reported by Marijuana Moment, appears to specifically target “habitual marijuana users” among other disqualified individuals.

Before the memo, anyone with a concealed pistol license (CPL) was frequently considered qualified to purchase firearms in Michigan.

“Specifically, ATF learned that CPLs were and continue to be issued to applicants who were likely prohibited due to a conviction for a misdemeanor crime of domestic violence… and to habitual marijuana users. Although possession and use of marijuana is not unlawful under Michigan law, marijuana remains a ‘controlled substance’ under Federal law, and those using marijuana are prohibited from possessing or transporting a firearm.” — Excerpt from the ATF memo, via a Marijuana Moment report

The change is mostly a formality, however, as gun owners are already required by law to disclose whether or not they use cannabis or any other controlled substances.

According to the report, the change is more likely to affect people with misdemeanor domestic violence convictions, as the charges will show up on a federal background check — in fact, the changes would only directly affect cannabis consumers if they have a cannabis-related conviction on their record. Federal cannabis prohibition, however, will continue to disrupt the second amendment rights of cannabis consumers until the disconnect between state and federal laws has been resolved.

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