In Today’s Issue:

• → Infused Pre-Rolls. 🌿

• → Social Equity In California. 💸

• → The Republicans Plan. 🇺🇸

The Demand For Infused Pre-Rolls

Producers are reaping the rewards of producing infused pre-rolls…

We all know consumers care about the amount of THC a product contains.

In Canada, we have even seen certain provinces introduce policies where they will only purchase cannabis flower that meets certain THC thresholds.

The perfect product…

This demand for high THC products works great for the limited numbers of producers who are capable of cultivating cannabis that has 30% THC.

For the majority of producers who can’t produce these products — an alternative is emerging.

As opposed to producing cannabis with 30% THC, a growing list of brands are increasing the THC content of their dried cannabis flower by infusing it with cannabis concentrates.

An example…

To understand the benefits of infusing dried flower with cannabis concentrates, we only need to look to California where the top pre-roll brand in the state is infusing their pre-rolls.

In fact, Jetters which is the top-selling pre-roll brand selling 2 million Jetters per month in California, is now the top pre-roll brand in the U.S.

Founded in 2018, the brand which employs 700 people has taken the market by storm courtesy of infusing its line of pre-rolls with live resin.

The benefits…

There’s a long list of reasons why producers are choosing to add cannabis concentrates to dried flower, however, we will focus on two factors.

1. What Consumers Want

We can debate the merits of consumers only purchasing the highest THC percentage products.

That said, a cannabis brand’s objective is not to convince consumers of what they want — rather it’s to produce the products that they want.

Today, cannabis consumers care about the quantity of THC in the products they are purchasing, and infusing products allows producers to create cannabis products consumers want.

2. Providing Consistent Experiences

It’s impossible for producers to produce cannabis flower that consistently has the exact same cannabinoid & terpene profiles.

Consequently, even if a consumer purchases the same product, produced by the same brand — there’s a high possibility that the product won’t produce the same experience.

Measuring a product’s cannabinoid & terpene profiles and adding cannabis concentrates allows producers to produce products that consistently produce the same outcome.

Looking forward…

One of the primary competitive advantages craft cannabis producers have historically had over larger cannabis producers is their ability to produce cannabis flower with much higher THC percentages.

I see no reason why larger producers won’t simply infuse their dried cannabis flower with cannabis concentrates to compete moving forward.

Our Take

This innovation makes so much sense, and it seems likely we will see a lot of companies — both big & small implementing this practice in the coming years.

I will be keeping a close eye on this area in the coming months as Canada has recently clarified that these products are permitted.

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Social Equity In California

A new report criticizes the cannabis social equity program in California…

The history of cannabis informs us that the reason why cannabis became illegal had very little to do with cannabis, and a lot more to do with the people who were consuming cannabis at the time.

The cannabis industry has an opportunity to rectify the wrongs of the past by ensuring everyone has an equal opportunity to help build this industry.

California…

I personally think the right thing to do is to ensure that the targets of the war on drugs are given an opportunity to help build this new industry, and the state of California agrees.

Unfortunately, good intentions don’t always produce the right outcomes, and the California Cannabis Industry Association is asking California to step up.

“California’s cannabis social equity programming is not working as intended” — California Cannabis Industry Association said.

The criticism….

The report focused on regions that were among the first to receive state funding under a 2018 law called the California Cannabis Equity Act.

The bill provides millions of dollars in grants all across California, however, with a lack of oversight — there’s room for improvement.

“Applicants are waiting years for local approval, yet paying thousands of dollars in rent for property that has yet to be utilized.”

This results in people running out of capital, and they lose the opportunity to help contribute to the success of the cannabis industry.

Ever before they sold a single gram of weed.

Recommendations…

They have made several suggestions:

1. Create a new oversight committee of equity operators and community members to ensure state funds are allocated appropriately.

2. Increase financial assistance for social equity participants, including license fee deferrals, tax relief, and support with startup costs.

3. Increase state funding to ensure the programs have enough capital to succeed as intended.

Our Take

Last year alone, California made $817 million USD in taxes from the adult-use cannabis market.

The cannabis industry is generating more than enough taxation revenue for the state of California to adequately support social equity applicants.

The Republican Plan

The republicans are entering the race to claim credit for legalizing cannabis…

With 68% of Americans supporting the legalization of cannabis, there are significant political points on offer for the party that succeeds in implementing this policy change.

So far, we have seen a number of attempts made by the democrats to pass policy changes that would legalize cannabis, however, the Republicans are now working on a bill of their own.

Republicans vs Democrats

Historically, legalizing cannabis has been a cause championed by the Democrats, however, legalizing cannabis now has bipartisan support.

Despite their head start, the inability of the Democrats to achieve a consensus on what the right regulations for cannabis ought to look like has presented an opportunity to the Republicans.

A republican bill…

The measure, titled the States Reform Act, is said to be ready for release later this month, with the Republicans currently seeking internal feedback before its official release.

Per the initial draft, the following are 6 key points of consideration:

1. Rescheduling

Cannabis will be federally rescheduled, with the regulations treating cannabis closer to alcohol with a mandatory 21 age limit for adult-use cannabis.

2. Cannabis Taxes

Consumers would pay a 3.75% excise tax when purchasing cannabis products.

3. Current Licenses

Existing state-licensed cannabis operators would be “grandfathered” into the federal licensing system to minimize the impact on existing operators.

4. Cannabis Expungements

Non-violent cannabis convictions would be eligible for expungements.

5. Interstate Commerce

Interstate commerce is permitted with the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau overseeing interstate commerce.

The Bureau of Labor Statistics would also be required to issue a report to Congress on the cannabis industry moving forward.

6. Regulatory Oversight

The Food and Drug Administration would oversee medical cannabis, however, they would have very limited oversight over adult-use cannabis products.

7. Cannabis For Veterans

Veterans cannot face discrimination in federal hiring for consuming cannabis & the U.S. Department of Veterans Affairs (VA) would be specifically authorized to issue recommendations for medical cannabis for veterans.

Our Take

While it has taken a considerable amount of time for the Republican party to accept cannabis, I do not rule out the possibility that they will be responsible for legalizing cannabis.

So long as they don’t change the proposed taxation rate before the bills official release — it will very likely be viewed as the best proposal to date.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Fyllo is hiring a Product Marketing Manager.

• → Leafly is hiring an Account Executive.

• → Dutchie is hiring a People Operations Coordinator.

For more, check out our new cannabis jobs board.

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In Today’s Issue:

• → Deloitte’s Data. ✅

• → CBD Products In Europe. 💰

• → Cannabis Production Centres. 🌿

What Cannabis Consumers Want

Breaking down the data on what cannabis consumers want today…

With global cannabis sales on track to surpass $21 billion USD in 2021 — a 50% increase from 2019, a key question is what do cannabis consumers value?

In this edition of Four PM, we will be breaking down the factors that influence the cannabis products consumers are currently purchasing.

Cheap cannabis…

While the industry has seen the emergence of brands consumers love such as Kiva & Cookies, consumers in North America still love cheap weed.

In Canada, 34% of consumers said a product’s price point was the #1 factor that determined the cannabis products they purchased, while 25% of U.S consumers said the same.

Taste matters most…

Certain consumers pay a great deal of attention to product price points, however, one factor which is seemingly more important is a product’s taste.

In Canada, 32% of consumers said a product’s taste/flavor was the #1 factor that determined the products they purchased, and in the U.S some 37% of consumers said a product’s taste/flavor was the most important factor.

Consumers will pay premiums…

While certain consumers are seeking the highest THC products for the lowest price points possible — there remains a growing group of consumers who are willing to pay a premium for certain products.

The perfect example of consumers’ willingness to pay such a premium for live resin cartridges.

In California, less than 8% of cannabis vape cartridges sold in 2019 contained live resin — a more expensive cannabis concentrate.

Over 33% of cannabis vape cartridges sold in California now contain live resin.

Craft cannabis…

An additional data point supports this idea.

Despite the fact that a gram of craft cannabis cost between 16-41% more than the average gram of cannabis in Canada — sales continue to soar.

What is high quality?

If consumers are willing to pay a premium for products that they perceive to be of greater quality, this begs the question — how do consumers define high quality cannabis products?

Our Take

Cannabis is such a unique CPG product, however, it is also very similar to every other CPG product in that certain consumers are willing to pay a premium for products they perceive to be of higher quality.

As several Canadian producers race to the button on products prices, it would be wise to focus on increasing the perceived quality of products as opposed to resorting to price reductions.

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How Will Europe Regulate CBD?

Home to 446 million people, the E.U is considering changing its CBD laws…

Europe may have some catching up to do when it comes to THC, however, they have been ahead of North America when it comes to regulating CBD.

While CBD products can only be sold in cannabis retail stores in Canada, CBD brands in Europe can have their products carried by any store.

Constant change…

In 2020, the European Commission said they viewed CBD as a Schedule I drug which would subject CBD to the same regulations as THC in the U.S today.

Months later in a court case involving a french vape company, they concluded that CBD cannot be considered a Schedule I drug if it were manufactured within the bounds of the law in another E.U Member state.

Cracking down on CBD…

Early this year the International Narcotics Control Board announced its Cannabis Initiative.

Within this new initiative is text which suggests change is coming for CBD companies in Europe.

In a leaked draft that was first discovered in February 2021, the initiative is seeking to subject CBD to the Single Convention on Narcotic Drugs.

‘CBD is not specifically listed in the Schedules of the Single Convention of 1961 or the 1971 Convention, it is considered under control as an extract of cannabis under the Single Convention.’

Looking forward…

Total sales of CBD products exceeded $520 million USD in Europe in 2020.

This represents 31% of the global CBD market share, second only to North America which accounts for 40% of all CBD product sales.

Should the E.U once again change its position on CBD it could have very serious consequences for companies operating in the region.

Our Take

Given the current availability of CBD products in Europe courtesy of the companies that have helped build the industry — it would be a shame to see the E.U move backwards on cannabis.

With several European nations generating significant revenue from CBD, these regulations won’t receive widespread adoption resulting in a similar situation to what we see in the U.S today with THC.

The Cannabis Production Centres

Which states are benefiting the most from cultivating cannabis today?

In Wednesday’s edition of Four PM, we highlighted that cannabis has become the 5th most valuable crop in America today.

With more than $6 billion USD in wholesale revenue in the last 12 months, several states have been generating substantial revenue from legalizing the production & consumption of cannabis.

Alaska…

With limited opportunity to produce crops in Alaska today, courtesy of its cold climate, cannabis is currently the top crop in the region.

Alaska currently has 356 licensed cannabis farms that collectively produced 21 metric tons of cannabis during the fiscal year from June 2020 to June 2021, resulting in $104 million USD wholesale revenue.

While $104 million USD in revenue might not seem like much, this is over 10x the second most valuable crop in the state (hay) which generated just short of $9 million during this same period.

California…

From June 2020 to June 2021, California harvested 514 metric tons of cannabis, resulting in $1.66 billion USD in wholesale revenue.

In addition to the state's 50,000 illegal cultivation sites, there’s an estimated 7 cannabis farm licenses for every adult-use store open in California today.

Colorado…

Colorado farmers produced an estimated 627 metric tons of cannabis in 2020.

Like California, Colorado has issued more cannabis cultivation licenses than stores with 1,245 cultivation licenses and just over 1,000 stores.

Despite having produced more cannabis than California, Colorado’s 627 metric tonnes of cannabis were valued at $1.03 billion last year.

Oregon…

Cannabis is the top crop in Oregon today, generating over $602 million USD in wholesale revenue in the last 12 months.

Despite having the most cannabis retail stores per capita in the country — Oregon has also issued significantly more cannabis cultivation licenses vs the number of cannabis retail stores.

At the beginning of this year, the state was home to 660 cannabis retail stores, however, they had issued 1,319 cannabis cultivation licenses, producing a total of 344 metric tons of cannabis last year.

Looking forward…

It’s very hard to say with certainty which regions will be the primary production centers for the U.S cannabis industry 10 years from now.

States such as California seem perfectly positioned to supply cannabis to other states, however, states could put protections in place to ensure local producers won’t be put out of business.

Our Take

It’s great to see so many states benefiting from producing cannabis today, however, long term a key problem that will need to be solved is the environmental impact of certain indoor grows.

Given enough time all cannabis production facilities will likely move to the regions where producing cannabis can be done most efficiently, assuming the regulations allow this to occur.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Greenline is hiring a Social Media Manager.

• → LeafLink is hiring a Customer Support Agent.

• → Dutchie is hiring a Manager, Strategic Finance.

For more, check out our new cannabis jobs board.

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In Today’s Issue:

• → Leafly’s Report. 💸

• → Cannabis Elections. ✅

• → JP Morgan's Bold Move. 🛑

Cannabis Is A Major Cash Crop

Breaking down the economic boom the legal cannabis industry has created…

What are the most valuable crops in the U.S today?

To answer this question we would normally look to USDA Research Service, however, with cannabis being federally illegal in the U.S they currently don’t track the value of cannabis.

Instead, Leafly has crunched the numbers.

The numbers…

Cannabis is the 5th most valuable crop today.

U.S farmers produced $6.175 billion USD worth of cannabis from September 2020 to September 2021.

Conversely, the following are the crops that topped cannabis in the last year.

An economic boom…

Cannabis is the most valuable crop in Alaska today, worth more than 2x both livestock & crops.

Cannabis is also the most valuable crop in Colorado, Massachusetts, Nevada & Oregon — despite the fact that cannabis is illegal on a federal level.

Our Take

With the legal industry now providing more than 320,000 full time jobs, it’s becoming very clear that cannabis is good for business.

Allowing adults to purchase, cultivate & consume cannabis is what’s driving the creation of these jobs and I look forward to seeing this trend continue.

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Cities & States Embrace Cannabis

Breaking down the regions where legalizing cannabis is up for decision…

There is never a dull day in the cannabis industry.

In this edition of Four PM, we will be breaking down the recent elections that have recently taken place which impact the cannabis industry.

Colorado

On Tuesday, voters in Colorado rejected a ballot measure to increase the state’s tax on cannabis products to raise funds for education programs.

The goal was to provide low income families with an education stipend of $1,500, however, this came at the cost of increasing the taxes on cannabis products from 15% to 20%.

With more than 90% of the votes having been counted, 54% of voters have opposed this measure to increase the prices of cannabis products.

Philadelphia

In Philadelphia, Pennsylvania’s largest city home to over 1.5 million people, voters have approved a referendum to legalize cannabis.

This vote received overwhelming support with early results suggesting 73% of people voted in favor with just 27% of people opposing this measure.

The purpose of this vote is to put additional pressure on law markers in Pennsylvania to legalize cannabis at a state level, with the latest polls showing 60% of voters would like to see this legislative reform.

Ohio

Several cities in Ohio were given the opportunity to decriminalize cannabis with 22 jurisdictions having already decriminalized cannabis.

Of the 14 additional jurisdictions voting on this measure, 7 voted in favor of decriminalizing cannabis, with 7 voting against it.

An estimated 3 million people living in the state now have access to cannabis without the threat of receiving jail time.

Our Take

The speed at which cities & states are legalizing & decriminalizing cannabis across the U.S highlights the strong desire to change these outdated laws.

While the U.S government might be content leaving the laws the way they are, it’s also clear that the people living in the U.S aren’t willing to wait.

Stop Trading Cannabis Stocks

The billion dollar bank that doesn’t want to work with certain U.S companies…

A majority of Americans might have access to legal cannabis products, however, U.S banks continue to put policies in place to prevent their clients from purchasing cannabis stocks.

Yesterday, JPMorgan Chase & Co — the $509 billion dollar bank founded in December 2000 told its clients they will no longer allow them to buy certain U.S cannabis-related stocks.

A bigger trend…

This decision by JP Morgan comes just weeks after Credit Suisse also announced it would no longer allow its clients to buy U.S cannabis stocks.

Per the statement JP Morgan released, this decision isn’t being fueled by their dislike of the cannabis industry — rather they are unwilling to take on the risks associated with certain U.S cannabis stocks.

"J.P. Morgan has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by restricting certain activities in the securities of U.S. cannabis Related Businesses” they said.

Moving forward, clients will only be allowed to sell existing positions.

Canadians vs U.S Companies

These restrictions won’t apply to cannabis companies listed on the NYSE or the Toronto stock exchange, rather they will apply to U.S companies listed on any other stock exchange.

Currently, any plant-touching cannabis company with operations in the U.S is prevented from listing its shares on the NYSE which forces U.S cannabis companies to list on smaller exchanges in Canada.

Why now?

As certain assets increase in price, whether that be cannabis stocks or cryptocurrencies — banks such as JP Morgan face pressure from their clients to provide them with access to these assets.

Unfortunately, over the last 6 months this forcing function has not been working in favor of U.S cannabis companies.

The 5 largest U.S cannabis companies have all seen their valuations sharply decline during this time.

• → Curaleaf is down 36.07%

• → Green Thumb Industries is down 36.22%

• → Trulieve is down 39.24%

• → Cresco Labs is down 38.27%

• → Columbia Care is down 53.70%

Looking forward…

Per their most recent fillings, JP Morgan has spent over $100,000 USD lobbying for cannabis baking reform in Q1 and Q2 of 2021.

I am not of the impression that JP Morgan is morally opposed to clients purchasing cannabis stocks & they will have no hesitation in allowing clients to invest in these companies in the future.

Our Take

The cannabis industry might employ over 320,000 people in 2021, however, there remains a long list of companies that are seemingly working in opposition to the progress being made to build this industry.

Once all of these constraints have been removed, I have little doubt the cannabis industry will experience significant growth in light of having access to the services just about every industry has.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Eaze is hiring a Senior Product Manager.

• → LeafLink is hiring a Customer Success Manager.

• → Dutchie is hiring a Business Development Representative

For more, check out our new cannabis jobs board.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Legalizing Cannabis. 🇳🇱

• → Military Performance. 🎖

• → Cannabis vs Prescriptions. 🌿

Legal Cannabis In The Netherlands

The current cannabis laws in one of Europe’s most liberal nations…

The legality of cannabis in the Netherlands is extremely confusing.

In today’s edition of Four PM, we will be breaking down the history of cannabis in the region and the current obstacles the industry faces.

A brief history…

Cannabis was first criminalized in the Netherlands in 1913 & this remained the case for 59 years.

In 1972, the Dutch government decided it was time to reevaluate its previous policies and divided drugs into two categories.

1. Less dangerous drugs.

2. More dangerous drugs.

As part of this new policy, the possession of under 5 grams of cannabis was decriminalized in the Netherlands.

Along came coffeeshops…

In 1976, cannabis coffee shops began opening.

Currently, there are an estimated 570 coffee shops in the Netherlands, located across 102 of the Netherlands 352 different municipalities.

The primary cause for confusion today stems from the fact that while these shops are allowed to sell cannabis — it remains illegal to cultivate and produce the cannabis products these shops need to supply their customers.

A new solution…

The Netherlands is working on establishing a legal supply chain & on the 22nd January 2019, the House of Representatives adopted the controlled cannabis supply chain experiment bill.

In short, the experiment will supply legal cannabis to coffee shops in 10 municipalities, with adults not needing any qualifying conditions to purchase cannabis from these coffee shops.

10 cannabis producers will be eligible to receive licenses to produce cannabis.

One step forward…

Despite this clear progress, Amsterdam which is considered to be the cannabis capital of Europe is seemingly moving in a different direction.

In 2018 Amsterdam attracted over 20 million tourists, however, to intentionally decrease the number of tourists, the city is considering banning tourists from purchasing cannabis.

So far, the Amsterdam city council has reportedly banned 1/3 of all cannabis cafes operating in the city & store owners have emphasized that banning tourists from their stores would ruin their businesses.

Our Take

The Netherlands will legalize cannabis for adult-use purposes in the coming years, however, it won’t be the first European nation to do so.

With the country so close to legalizing cannabis for adult-use purposes, it would be very disappointing to see Amsterdam implement a policy that would cause such significant harm to the cannabis industry.

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Cannabis In The U.S Military

Does consuming cannabis impact your ability to succeed in the military?

Per a new government funded analysis of U.S. Army recruits — having consumed cannabis has little impact on someone's success in the military.

The findings…

People with documented histories of consuming cannabis were just as likely to get promoted, and make sergeant in the military.

While these people were more likely to leave for “drug use” they were less likely to leave the army as the result of health or performance concerns.

It was not listed if this increase in people leaving for drug use was attributed to people consuming cannabis when they were in the military.

Why do they care?

Whereas once a small percentage of potential recruits consumed cannabis, this has changed significantly in the last decades.

Per Rand, historical rates for cannabis consumption amongst recruits was 0.2% in 2002, however, they estimate this has now increased to 33%.

“Without waivers, a failed drug test for marijuana would block the one third of American 18-year-olds who say they have used cannabis at least once in the past year,” a RAND official wrote.

Beating expectations…

There remains a stereotype that consuming cannabis makes you lazy, however, the report highlights that the recruits who reported to having previously consumed cannabis excelled in certain areas.

“In some cases, they are historically more likely to perform better.”

Our Take

With so many people choosing to consume cannabis, it would be foolish for any employer, whether that’s the military or otherwise, to exclude applicants on the basis that they consume cannabis.

Cannabis vs Prescriptions

Are patients ditching their prescription medications in favor of cannabis?

A common tale told in the cannabis industry today is that the pharmaceutical industry played a pivotal role in making cannabis illegal.

While this specific story lacks any real evidence, what has become clear is that more & more people are choosing plant-based medicines such as cannabis in favor of pharmaceutical formulations.

The data…

A new survey published in the journal of Medical Cannabis and Cannabinoids examined the link between patients usage of cannabis, and how this impacted their usage of prescription medications.

Per the data collected from May 2019 to January 2020 in Florida — 65% of the patients surveyed had either reduced or eliminated at least one prescription medication courtesy of consuming cannabis.

Of the 165 patients surveyed, the following were the most common meditations reduced / replaced:

• → Opioids: 20% reduction & 18% discontinued use.

• → Anti Anxiety: 20% reduction & 18% discontinued use.

• → Antidepressants: 7.3% reduction & 15% discontinued use.

• → Muscle relaxants: 7.3% reduction & 8.6% discontinued use.

Interesting data points…

The survey also examined the relief patients were receiving from cannabis for specific symptoms.

Looking forward…

It becomes very difficult to debate the fact that cannabis has the potential to become a critical component of our medical system as we continue to gather more data that paints this exact picture.

With GW Pharmaceuticals being the largest acquisition in the history of cannabis for $7.2 billion USD it’s also very clear that there are strong financial incentives for companies to develop cannabinoid based medications.

Our Take

I don’t buy into the narrative that the pharmaceutical industry is seeking for the cannabis industry to fail, however, these latest figures certainly suggest that they should be taking a closer look at cannabinoids.

Looking forward, it makes sense that more established pharmaceutical companies would also focus on creating cannabinoid based medications.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Dutchie is hiring a Brand Marketing Lead.

• → Eaze is hiring a Staff Blockchain Engineer.

• → Confident Cannabis is hiring an Account Support Specialist.

For more, check out our new cannabis jobs board.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Adult-use Access. ✅

• → California's Illicit Cannabis. 🔥

• → Youth Cannabis Consumption. ⬇️

Adult-Use Cannabis In 2022

Who’s on track to legalize adult-use cannabis…

In Wednesday’s edition of Four PM, we outlined the four states on track to legalize cannabis for medical purposes in 2022.

In this edition of Four PM, we will be breaking down which states are the most likely candidates to legalize cannabis for adult-use purposes in 2022.

Oklahoma, population: 3.957 million

First up is the state of Oklahoma.

Less than 3 years after the state legalized cannabis for medical purposes, 1 in 10 adults living in the state now has access to medical cannabis, courtesy of not needing a qualifying condition.

In October, activists filed an initiative that would legalize adult-use cannabis.

In order for this issue to appear on the 2022 ballot, activists will need to collect 177,958 valid signatures from registered voters.

Rhode Island, population: 1.06 million

Adult-use cannabis is coming to Rhode Island.

Having spent less than 15 minutes debating the bill, on the 22nd of June 2021, the Rhode Island Senate passed an adult-use bill by a 29-9 vote.

The bill to legalize cannabis won't be decided by the house until after the budget process ends, however, there remains the possibility that this bill could pass during a special session later this year.

Delaware, population: 0.97 million

Next on the list is Delaware.

On the 24th of March 2020, The Health and Human Development Committee approved legislation to legalize adult-use cannabis.

The bill was set to be voted on by the Delaware House in early June, however, this was delayed.

As things stand the bill is set to be reintroduced in January 2022, and with the latest polling showing 61% of voters support the legalization of cannabis — it looks likely this bill will succeed.

Pennsylvania, population: 12.8 million

Currently, there are 582,000 patients in Pennsylvania who have access to medical cannabis.

A move to legalize cannabis for adult-use purposes looks to have support from both Republicans and Democrats, and in early October a bill with bipartisan support was officially introduced to the Senate.

There are currently 2 bills being worked on which would legalize cannabis for adult-use purposes, and with a recent poll showing support for legalization has reached 60% — Pennsylvania is very likely to legalize cannabis in 2022.

Maryland, population: 6.04 million

Medical cannabis is legal in Maryland, and the possession of less than 10 grams of cannabis has been decriminalized since 2014.

There have been several efforts made to legalize adult-use cannabis in Maryland since 2020, and despite losing on each occasion activists in the state have continued to pursue this legislative reform.

In July 2021 it was announced that a referendum will take place in 2022 to allow voters to decide if they would like to legalize cannabis for adult-use purposes, with recent polls showing 60% of voters are in favor of this reform.

So far, Maryland has appointed a 10-member group to establish a regulatory framework, should voters approve this measure to legalize cannabis.

Ohio, population: 11.69 million

Last, but certainly not least is Ohio.

In 2016 Ohio legalized cannabis for medical purposes, and in the time since over 100,000 patients have obtained access to medical cannabis.

There are currently three bills making progress in the state to legalize cannabis for adult-use purposes with both republicans & democrats drafting separate bills to legalize adult-use cannabis.

As things stand, there’s no definitive timeline for when voters will have the opportunity to legalize cannabis, however, it looks likely one of these bills will win the seal of approval in 2022.

Our Take

Today, 18 states have legalized cannabis for adult use purposes & 36 states have legalized cannabis for medical purposes.

By the end of 2022, it seems very likely we will see 24+ states having legalized cannabis for adult-use purposes & 40+ states for medical purposes.

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Legal vs Illegal Sales In California

California continues to battle the illicit market…

California is the #1 cannabis market in North America by sales.

Despite legal sales exceeding $4.4 billion USD in 2020, illicit cannabis sales also exceeded $7 billion in annual sales.

The actions…

In response, California has tried to make it more difficult for companies to succeed in the illicit market.

A key focus has been destroying the cannabis plants being cultivated to supply the illicit market.

From the data the state has shared, we can see the results of this approach.

Looking at the results it’s hard to say what impact this has had on the illicit market where sales remain close to 2x the legal market.

For certain illicit producers, these types of losses are simply the cost of doing business in the illicit market.

Bigger problems…

There are bigger problems in California such as the low number of cannabis retail stores that are open.

Close to 68% of California cities have banned cannabis retail stores.

Consequently, there are roughly 2 cannabis retail stores per 100,000 people in California — one of the lowest rates in the U.S.

With an estimated 50,000 illegal cultivation sites in California today, and the state's limited resources, it’s impossible to find all of these sites.

Future outlook…

It’s estimated that legal cannabis sales in California will exceed $7.2 billion USD in 2024, with illicit market cannabis sales falling from $8.7 billion USD in 2019 to $6.4 billion in 2024.

Our Take

Given the current problems such as the limited number of stores, it’s certainly possible that California can hit these numbers if they can increase consumers’ access to legal cannabis products.

Is Youth Cannabis Consumption Falling?

A new study examines the current usage of drugs amongst the youth…

A common concern associated with the legalization of cannabis is the impact this has on people under the age of 18 consuming cannabis.

The good news is that a new study released earlier this week has highlighted the fact that during the same time several states have loosened their cannabis laws — youth cannabis consumption dropped.

The data…

The National Survey on Drug Use and Health is a federally backed study.

In its latest report, it highlighted that cannabis consumption amongst people aged 12-17 dropped from 13.2% to 10.1% percent from 2019-2020.

During this same period, cannabis consumption amongst people aged 18-25 dropped from 35.4% to 34.5% in that timeframe.

A bigger trend?

The demand for cannabis isn't the only thing falling, with cigarette, vapes, and alcohol usage also falling during this period.

• → Cigarette rates dropped from 12.8% in 2019 to 9.3% in 2020.

• → Vaping rates have dropped from 27.5% in 2019 to 11.3% in 2021.

• → Consumption of alcohol fell from 26.7% in 2019 to 22.8% in 2020.

Our Take

There is a consensus in the cannabis industry that we should not allow people under the age of 18 to consume THC — a position I agree with.

If there is new data available that highlights that consuming THC does not harm the development of the brain then we can change this approach, however, until then I view this as the right approach.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Buddi is hiring a Director of Engineering.

• → Greenline is hiring a Customer Success Representative.

• → LeafLink is hiring a Director of Retail Business Development.

For more, check out our new cannabis jobs board.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Legalization In 2022. 🔮

• → Cannabis Scare Tactics. 🌿

• → Mike Tyson's Latest Move. 🥊

Legalizing Medical Cannabis In 2022

The states on track to legalize medical cannabis…

It might be impossible to predict when exactly the U.S will legalize cannabis at a federal level, however, one thing which we can say with certainty is that more states will continue to legalize cannabis.

In today’s edition of Four PM we will be breaking down which states are the most likely candidates to legalize cannabis for medical purposes in 2022.

Mississippi, population: 2.97 million

First up is the state of Mississippi.

Mississippi already succeeded in legalizing medical cannabis in 2021, however, the state’s Supreme Court overturned this decision shortly afterwards.

With a majority of people voting in favor of legalizing cannabis for medical purposes, it's crystal clear that the people of Mississippi want access to medical cannabis, and politicians are taking notice.

In July Kevin Blackwell, chairman of the Senate Medicaid Committee, and Lee Yancey, chairman of the House Drug Policy Committee, announced they were working on a bill to legalize medical cannabis.

Wyoming, population: 0.57 million

Next up is the state of Wyoming.

So far, two cannabis reform initiatives have cleared an initial hurdle to give voters the option to legalize medical cannabis during the state’s 2022 ballot.

Additionally, activists in the state are seeking to pass a separate decriminalization bill that would impose small fines on the possession of up to four ounces of cannabis / 112 grams.

People caught in possession of cannabis exceeding this limit would face a maximum $500 fine.

Nebraska, population: 1.93 million

Nebraska has already made two attempts to legalize cannabis for medical purposes in 2015 & 2020.

Despite these setbacks, activists have already filed two new medical cannabis initiatives for 2022.

The first initiative would protect doctors who recommend cannabis to their patients, in addition to decriminalizing patients possessing cannabis.

The second measure is much more in line with what we have seen in other states, where Nebraska would establish a regulated supply chain.

Should they succeed in gathering 250,000 signatures by July 7th 2022, voters could then legalize cannabis for medical purposes.

North Carolina, population: 10.49 million

There is very strong support for medical cannabis in North Carolina

A 2021 poll found that 73% of North Carolinians would like to see medical cannabis made legal.

For far this year the North Carolina Senate Judiciary Committee has successfully passed the medical cannabis legalization bill twice, however, patients are still without access to medical cannabis.

Additionally, 54% of adults support legalizing cannabis for adult-use purposes.

Our Take

Every adult should have the means to decide for themselves whether or not to consume cannabis, however, first & foremost it's essential to ensure every patient has access to cannabis.

With 36 states having already legalized cannabis for medical purposes, it's becoming very clear that the U.S has achieved a consensus on this issue.

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Combating The Cannabis Hysteria

As Halloween approaches, the hysteria around cannabis has already begun…

There are two things we can say with certainty will happen this Halloween.

1. Children will consume lots of candy.

2. The media will emphasize the dangers of cannabis products.

Adding fuel to the fire…

Historically, Halloween has been a time where the media seeks to emphasize the dangers of children consuming cannabis products.

So far this year, the attorney generals from multiple states have already started issuing warnings to parents about the dangers of illicit cannabis products that resemble popular candies and snacks.

In New York, Attorney General Letitia James said “unregulated and deceptive cannabis products will only confuse and harm New Yorkers, which is why they have no place in our state.”

In what is a clear admission that the Attorney General lacks an understanding of cannabis, she noted “it is more vital than ever that we do everything we can to curb this crisis and prevent any further harm, or even worse, death”

There isn’t a single recorded case whereby someone has died from consuming too much cannabis.

Next door…

In Connecticut, Attorney General William Tong also emphasized the dangers, however, instead of suggesting children could die from consuming cannabis — he focused on the illicit market.

“These look-alike cannabis products are unregulated, unsafe, and illegal”

“While Connecticut recently legalized adult-use cannabis, many of these products fall far outside the range of what will ever be safe”

Combating this narrative…

Whereas once the cannabis industry had little means to offer an alternative perspective, cannabis non-profit NORML has taken the opportunity to highlight the inaccuracy of this information.

“No one is giving out edibles to children as Halloween candy.

Given the average cost of a one dose edible can range from around ten to twenty five dollars it would not only be idiotic and wrong, it would also be incredibly expensive.”

Misleading the public?

Five Attorney Generals have made press releases bringing attention to this issue with three Attorney Generals so far suggesting children can “overdose” from consuming these products.

While it's certainly possible to consume too much cannabis and have a bad time, it’s physically impossible to overdose from consuming cannabis.

The CB1 receptors THC binds with are not located near the brainstem — the area of the brain responsible for regulating our respiratory system.

Our Take

The demonization of cannabis that occurs during this time of year highlights the need to further educate people on the safety profile of cannabis products.

Mike Tyson Doubles Down On Cannabis

The boxing legends cannabis brand will soon be available across America…

Whereas Mike Tyson was once known for his bad temper & his world-class boxing skills — the former world champion has sharply shifted this image to a cool headed cannabis consumer.

Focusing on cannabis…

In 2016 Tyson made his first foray into cannabis when he launched his Tyson Holistic label.

This was followed up two years later when he announced his plans to open Tyson ranch.

Next was the launch of his podcast 'Hotboxing’ with Mike Tyson in 2019 where he interviews celebrities — all the while consuming cannabis on set.

Now in 2021, Tyson has announced that he is once again doubling down on cannabis — this time partnering with the billion dollar MSO Columbia Care to increase the availability of his products.

The partnership…

Columbia Care who has licenses in 18 U.S. jurisdictions and with 99 retail stores will be the brands cultivation & manufacturing partner.

For Tyson, the partnership allows him to significantly increase the number of cannabis retail stores carrying his products.

For Columbia Care this partnership allows them to increase their brand awareness across the U.S, courtesy of the large following Mike Tyson has.

New leaders…

As part of this announcement, the new company Tyson 2.0 will be led by Adam Wilks as CEO & Chad Bronstein who is the current CEO and Founder of Fyllo as the company's chairman.

Tyson 2.0 has also raised a seed round to the sum of $7 million USD.

Our Take

A celebrity slapping their name on a cannabis brand is insufficient to succeed in the cannabis industry.

Individuals like Mike Tyson & Seth Rogen stand out from the growing list of celebrities who are creating cannabis brands courtesy of both individuals having a strong public relationship with cannabis.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Dutchie is hiring a Strategic Finance Associate.

• → Leafly is hiring a Business Development Manager.

• → LeafLink is hiring a Human Resources Business Partner.

For more, check out our new cannabis jobs board.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Demand For Edibles. 🍫

• → Progress In New York. ✅

• → Cannabis In Costa Rica. 🌴

Cannabis Edibles In North America

Breaking down the demand for cannabis edibles...

The cannabis industry is ever-evolving, and with this it’s essential to understand how consumers’ preferences are also changing.

With an ever-increasing number of cannabis products being brought to market, consumers have no shortage of products to choose from.

In today’s edition of Four PM, we will be examining the demand for edibles.

Canada vs America

The demand for edibles looks very different across North America.

Per Headset, in Canada, edibles held a 5% market share over the previous 90 days, however, in the U.S, edibles captured a 10.2% market share.

Across North America, the majority of all cannabis edible sales are products that have the highest amount of THC permitted.

• → In Canada, 92.9% of sales go to the 10 mg THC package size.

• → In the U.S, 70.8% of sales go to the 100 mg THC package size.

In the case of Canada, one of the most common critiques of the current regulations is a 10mg cap on edibles which results in consumers purchasing products from the illicit market.

What cannabis consumers want?

There might be significant differences in the demand for cannabis edibles between Canada and the U.S, however, there are striking similarities in the types of products consumers are purchasing.

Currently, gummies are by far the most popular type of edible, with over 71% market share in the U.S & over 65% market share in Canada.

To date, the cannabis brands who have focused on producing the best gummies have been duly rewarded as the top 5 edibles brands by sales over the last 90 days in the U.S all focus on gummies.

Looking forward…

‍With this strong demand for edibles, sales are expected to exceed $2 billion USD in the U.S in 2021 & in Canada total edible sales are expected to exceed over $145 million USD this year.

Despite the unpopularity of the current regulations for cannabis edibles in Canada — sales are on track to increase by close to 100% from 2020 to 2021.

In the U.S, where edibles have proven to be more popular, total sales are forecasted to increase by $500 million USD to $2.33 billion USD in 2021.

A 28% increase in annual sales.

Additionally, cannabis edible sales are forecasted to reach a staggering $2.98 billion USD by 2023 as more states continue to legalize cannabis.

Our Take

‍The consumer demand for higher potency edibles suggests Canada has significant room for improvement with respect to its current regulations.

With over 70% of all edibles purchased in the U.S containing more than 100mg THC, it’s likely these consumers in Canada are currently purchasing the same higher potency products from the illicit market.

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New York Continues To Embrace Cannabis

The state is once again leading the way when it comes to cannabis…

Adults living in New York may not be able to purchase legal cannabis products as of yet, however, the state continues to embrace cannabis.

In the past month, New York has made 3 very significant announcements.

1. Ending cannabis tests at work.

2. Allowing patients to cultivate cannabis.

3. Expunging criminal records for cannabis.

The very first…

New York has announced that state employers will no longer be allowed to test employees for cannabis.

This move makes New York the very first state in the country to explicitly prohibit employers from testing both current & prospective employees.

There are limited exceptions to these rules such as someone being visibly impaired or someone bringing cannabis products to work — both of which can result in someone being asked to take a test.

“Only symptoms that provide objectively observable indications that the employee’s performance of the essential duties or tasks of their position are decreased or lessened may be cited.” the new regulations state.

Home growing…

Despite the fact that medical cannabis was made legal in New York in 2014, medical patients in the region are unable to cultivate their own cannabis.

Last Thursday, however, the recently established New York state Cannabis Control Board met for the second time where they issued new draft regulations where patients can grow their own cannabis.

Per the proposal which is now subject to a 60 day public comment period, each patient can grow up to 6 plants — limited to 12 plants per household.

Expunging criminal records…

Last, but certainly not least on this list of recent announcements is the expungement of criminal records for cannabis.

The Cannabis Control Board confirmed 203,000 cannabis-related charges are currently being suppressed from criminal background searches.

Additionally, these records are in the process of being sealed or expunged, as part of legalization.

This comes at the same time when cannabis related arrests continue to significantly decline in New York.

While 163 people were arrested for cannabis in the first quarter of 2021, just 8 people were arrested in the latest quarter of 2021.

Our Take

New York seems to be taking all of the right steps to ensure they create a successful cannabis industry.

I am personally keeping a very close eye on this market, as they continue to impress me with each of the moves they make.

Medical Cannabis In Costa Rica

The central American nation is on track to legalize medical cannabis…

Located in Central America, Costa Rica is home to over 5 million people.

For the 5 million people living in Costa Rica, the laws are very vague when it comes to cannabis, however, a great deal of progress is being made.

The confusion…

Under the current laws, it’s illegal to produce or carry “large quantities” of cannabis with the intent to sell this product.

The problem is that the laws in place have not clearly defined what exactly a large quantity of cannabis is.

This lack of clarity has resulted in the law enforcement in the region being given discretion to make this determination on their own, however, in December 2016 this was put to the test.

170 cannabis plants…

A single cannabis plant, grown under the right conditions can produce close to 500 grams.

Consequently, when Mario Alberto Cerdas Salazar — a Costa Rican lawyer was found in possession of 170 cannabis plants the police arrested him.

Few could have predicted the events that followed when Mario Alberto Cerdas Salazar was acquitted of all charges — thereby unofficially decriminalizing cannabis in Costa Rica.

Medical cannabis…

In March 2019, it was proposed to legalize medical cannabis in Costa Rica.

Last week, the proposal that would legalize cannabis for medicinal use, in addition to legalizing hemp for food and industrial use was approved in a first debate by the Legislative Assembly with 33 votes in favor and 13 against.

The next steps…

This proposal has ways to go before becoming law, including a second debate by the same legislative body and a signature from the President.

The current bill faces opposition from the Costa Rica minister of health — a key stakeholder in this discussion.

More research…

As of today, ROCO Plants SA is the only cannabis company that has been granted permission to study cannabis in Costa Rica.

Led by researcher Daniel O'Bryan, the company's focus is testing which cannabis genetics are best suited to the climate of Costa Rica.

In November of this year, the teams’ work will be showcased to the Costa Rican Congress to help them better understand the cultivation of cannabis.

Our Take

Without the support of the Minister for Health, this bill will face opposition, however, given the strong support they currently have — it looks very likely that Costa Rica will soon legalize medical cannabis.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Buddi is hiring a Director of Engineering.

• → Greenline is hiring a Customer Success Representative.

• → LeafLink is hiring a Director of Retail Business Development.

For more, check out our new cannabis jobs board.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Cannabis In Luxembourg. 🌿

• → Regulating Delta 8 THC. ❌

• → Sales Are Soaring In Arizona. 💸

Cultivating Cannabis In Luxembourg

Luxembourg is allowing adults to cultivate their own cannabis plants…

As North America continues to embrace cannabis, Europe has some serious catching up to do.

The good news is that Luxembourg seems set to ease its current cannabis laws, with adults in the region permitted to grow up to 4 cannabis plants.

The very first…

A number of European nations such as the Netherlands & Spain have had very liberal laws for cannabis in recent years, however, neither nation has officially legalized cannabis at a federal level.

This new legislation would make Luxembourg the first country in Europe to legalize the production and consumption of cannabis.

The laws…

Under this new legislation, everyone 18 and over will be able to legally cultivate 4 cannabis plants per household for personal use.

Adults will be able to purchase cannabis seeds in stores & online, however, Luxembourg won’t be rolling out cannabis retail stores anytime soon.

Initially, the nation had planned to create a national cannabis supply chain with state-regulated distribution as is the case in Canada.

Having faced delays due to the pandemic they have instead taken this first step.

“We thought we had to act, we have an issue with drugs and cannabis is the drug that is most used and is a large part of the illegal market,” — Luxembourg's Justice minister Sam Tamson said.

The goal?

Luxembourg’s goal is simple — they want to end the era of criminalizing the consumption of cannabis.

“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain”

Unfortunately, it will remain illegal for adults to consume cannabis in public & it will remain illegal for adults to sell cannabis.

There also remain penalties in place for carrying cannabis in public, albeit the penalties have been significantly reduced with fines of less than $30 for carrying less than than 3 grams.

Government sources said the legislation was driven by a desire to liberalize consumption and cultivation “within one’s own four walls”.

Luxembourg’s parliament is expected to vote on the proposal in early 2022 which has strong support.

Our Take

Several publications have proclaimed Luxembourg may become the first European nation to legalize cannabis, however, I find these headlines quite misleading.

The proposed laws are much closer to decriminalization as opposed to legalization, however, it’s most certainly a step in the right direction.

Creating The Right Regulations For Delta 8 THC

More & more states are banning products containing this molecule…

Cannabis plants are capable of producing a long list of molecules, from cannabinoids to terpenes, flavonoids, and many more exciting molecules.

One such molecule both cannabis & hemp plants can produce is Delta 8 THC.

The legality of this molecule has been the cause of much confusion of late.

Confusion in cannabis…

In 2018 the FARM Bill received the required support needed such that hemp once again became legal in the U.S, and in the process so did and & all molecules hemp plants can produce with the expectation being Delta 9 THC.

Currently, products containing Delta 9 THC can only be purchased in 18 states for adult-use purposes & 36 states for medical purposes.

The inability to access products containing Delta 9 THC has resulted in consumers seeking out an alternative.

Along comes Delta 8 THC…

Delta 8 THC is a close cousin of Delta 9 THC, having identical molecular formulas, and consequently, producing similar effects.

Currently, hemp plants can produce very small quantities of Delta 8 THC, however, not nearly enough to fulfill the ever-increasing demand for products containing this molecule.

As such brands that are interested in adding this molecule to their products have been seeking alternative sources for Delta 8 THC.

Currently, the most common method to produce Delta 8 THC is to use chemicals to convert CBD to Delta 8 THC.

The lack of oversight for this process is a problem.

States take action…

In September, the DEA released a presentation titled “Delta 8 THC has serious health concerns”.

So far, the DEA is yet to outlaw Delta 8 THC.

This absence of action from the DEA is causing states to take ownership of this issue, with 19 states having already either banned or heavily restricted the sale of products containing delta 8 THC.

Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Kentucky, Idaho, Iowa, Michigan, Mississippi, Montana, New York, North Dakota, Rhode Island, Texas, Utah, Vermont, Washington have all taken action.

Looking forward…

So far, the DEA has made an interim ruling whereby Delta 8 THC would be subject to the same regulations as Delta 9 THC.

Earlier this week, the DEA announced its plans to use Reddit and other “novel” data sources to gain a better understanding of public health issues surrounding the use of cannabinoids.

Although Delta 8 was not specially named, it’s very likely that Delta 8 remains on its radar given the concerns they have expressed to date.

Our Take

The surge we have seen in products containing Delta 8 THC highlights the demand for cannabis products in states where cannabis remains illegal.

The sooner we can start regulating these supply chains, the better.

Record Cannabis Sales In Arizona

Having commenced adult-use sales in January, cannabis sales are soaring...

In 1996, 65% of Arizona voters approved a measure to legalize cannabis for medical purposes, however, it took another 16 years before medical patients in the state obtained access to cannabis.

After a number of failed attempts, the state home to 7.27 million people took this one step further by legalizing cannabis for adult-use purposes in 2020.

Cannabis sales are soaring…

From January to September 2021, Arizona saw $1.6B in total cannabis sales, with the state set to collect more than $150 million USD in taxes.

Recently, sales have been soaring.

With adult-use cannabis sales having commenced in January 2021, this significant increase is attributed to the creation of this new market.

Adult-use vs Medical-use?

Medical cannabis sales in Arizona have been steadily increasing in recent times with sales totaling $46 million USD in January 2021 — increasing to $65 million USD in May 2021.

During this same period, medical cannabis sales as a percentage of total cannabis sales have been declining as adult-use sales have also taken off.

• → In January, adult-use sales accounted for 21.1% of total sales.

• → In February, adult-use sales accounted for 38.09% of total sales.

• → In March, adult-use sales accounted for 41.64% of total sales.

• → In April, adult-use sales accounted for 42.62% of total sales.

• → In May, adult-use sales accounted for 43.96% of total sales.

What consumers want…

Like Canada, dried cannabis flower was & remains the most popular form factor of cannabis in Arizona.

This dominant position is declining with dried flower having once accounted for 52.6% of sales — now down to 44.9% of total sales.

Per headset, the following was the breakdown in September 2021.

1. Dried flower: 44.9% of total sales.

2. Vapes: 25.1% of total sales.

3. Concentrates: 10% of total sales.

4. Edibles: 9.2% of total sales.

5. Pre-rolls: 9% of total sales.

‍As the demand for dried cannabis flower decreases, the demand for vapes and pre-poll products have been increasing in its place.

From January to September, vape pens market share has increased from 21% to 25%, while pre-rolls market share has increased from 5% to 9%.

Our Take

Having long sought to provide its citizens with access to cannabis, it’s been amazing to see Arizona experience such success with cannabis.

As we patiently await federal legalization, I have no doubt that this additional success story will fuel other states to take action on cannabis.

For more like this, subscribe to Four PM today to receive the next edition:

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Today's Cannabis Jobs

• → Jane is hiring a Partner Success Representative.

• → Leafly is hiring a Director of Product Marketing.

• → Dutchie is hiring an Implementation Strategist, Canada.

For more, check out our new cannabis jobs board.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Cannabis In Canada. 🇨🇦

• → An Update From Mexico. ✅

• → Psychedelics Are Taking Off. 🚀

Canadians Spent $1.46 Billion USD On Cannabis

New data reveals Canadian consumers love dried cannabis flower…

Canadian consumers love to consume dried cannabis flower, however, other form factors of cannabis are quickly catching on.

Per Statistics Canada, dried flower accounted for 73% of cannabis products purchased so far this year with total cannabis sales exceeding $1.8 billion CAD.

Having accounted for 80% of the products purchased in the second half of 2020, and over 85% in the first half of 2020, the market share for dried flower is sharply declining in Canada.

The data…

73% market share makes dried flower significantly more popular in Canada compared to the U.S.

• → Edibles sales totaled $55.27 million USD, 3.8% of total sales.

• → Beverages sales totaled $19.15 million USD, 1.3% of total sales.

• → Dried cannabis sales totaled $1.06 billion USD, 73% of total sales.

• → Extracts & concentrates sales totaled $236.76 million USD, 16.4% of total sales.

Market leaders…

• → Auxly is the market leader for vapes.

• → Indiva is the market leader for edibles.

• → Hexo is the market leader for beverages.

• → Pure Sunfarms is the market leader for dried cannabis flower.

Looking forward…

The level of competition cannabis producers face in Canada is continuously increasing as more companies receive licenses to produce cannabis.

We are seeing a shift towards specialization in cannabis with certain producers now focused on winning certain categories.

• → Indiva is focusing on edibles.

• → Pure Sunfarms is focusing on flower.

• → Truss Beverages is focusing on beverages.

Our Take

The idea that a single producer can become the market leader in every single category of cannabis is becoming less logical by the day.

As the cannabis industry matures, it only makes sense that companies would focus on the areas where they have the greatest advantages, as opposed to trying to capture the entire market.

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When Will Mexico Legalize Cannabis?

A top Mexican senator confirms cannabis legalization is coming soon…

The legalization of cannabis has been sweeping its way across the U.S with 11 states having implemented policy changes in the last year alone.

More change is on the horizon for cannabis.

With a population of 126 million people, Mexico will soon become the largest cannabis market in the world.

No urgency…

In November 2020, the Mexican Senate passed a bill that would legalize cannabis, however, in the 11 months since then — lawmakers in the region have struggled to intact this policy change.

Consequently, in June Mexico's supreme court voted to take action on this issue by decriminalizing cannabis as Mexico's politicians failed to pass a legalization bill by the agreed-upon deadline.

Now, the president of Mexico’s Senate says lawmakers are seeking to advance the legislation to legalize cannabis in the coming weeks.

3 years after the Supreme Court declared the prohibition of cannabis to be unconstitutional.

Achieving a consensus…

Lawmakers in Mexico are in agreement that cannabis should be legalized, however, there remain differences in opinions as to what the right regulations for cannabis look like.

This has delayed the process of legalizing cannabis.

“In these times, there is no longer room for the prohibitionist policy,” Senate President Olga Sánchez Cordero said.

One of the key issues that needs to be resolved is the regulatory body that will be responsible for overseeing cannabis regulations.

A revision to the previous bill that received overwhelming support is seeking to delegate the responsibility of overseeing the regulations to the National Commission Against Addictions, as opposed to establishing a new authority.

Looking forward…

Many people are patiently waiting on the commencement of adult-use cannabis sales, however, Mexico remains adamant it will not rush.

Mexican senators have spoken about the pressure they face from other industry interests such as the tobacco and pharmaceutical industries.

So far, they have made clear these lobbyists will have limited influence.

In Canada, both the tobacco & alcohol industries have already taken very large positions in a number of cannabis companies, however, Mexico is seemingly seeking a different fate.

Our Take

I commend Mexico’s willingness to take the time they need to ensure the policy changes they enact produce the cannabis market they envision.

That said, as we have seen with Canada — it’s almost impossible to get everything right the first time around such that I would like to see them start sooner rather than later.

Psychedelics Are Here To Stay

Another industry that was tarnished by the war on drugs is coming back…

An emerging industry that shares many similarities with cannabis is psychedelics.

Like cannabis, psychedelics were once legal, and just like cannabis, the war on drugs resulted in these substances becoming illegal.

The good news is that like cannabis, a spotlight is being placed on psychedelics as the evidence makes clear that these substances are far from the dangerous drugs they were once made out to be.

The return of psychedelics…

Since 2018, the decriminalization of psychedelics has gone from a fringe movement to a force that shows no signs of slowing down anytime soon.

There remains much stigma associated with these substances, however, armed with the data needed to debunk misinformed claims, the perception of psychedelics is sharply shifting throughout society.

With this change, capital is flowing into the psychedelics industry at a staggering rate, with over $1 billion USD having been invested in psychedelic startups in the last two years.

Where’s this cash coming from?

With over 110 companies currently developing psychedelic compounds, there’s an explosion of interest in this new industry.

A theme that’s emerging is technology-focused funds such as Founders Fund, Y Combinator & General Catalyst are willing to provide companies with the capital they need to complete clinical trials.

There are a number of companies leading the way.

Per their most recent valuations, ATAI is the leading psychedelics company.

• → (1) ATAI, $2 billion USD.

• → (2) Compass Pathways, $1.2 billion USD.

• → (3) GH Research, $1 billion USD.

• → (4) Mind Medicine, $814 million USD.

• → (5) Cybin, $342 million USD.

• → (6) Field Trip, $249 million USD.

Psychedelics vs cannabis

Psychedelics & cannabis have much in common, however, they also have many differences.

In cannabis, a majority of the market leaders are focused on the adult-use market.

In psychedelics, the leading companies are focused on clinical trials to gain FDA approval such that specific compounds can be made available for medical purposes.

The largest acquisition in the history of cannabis was GW pharmaceutical for $7.2 billion USD.

GW pharmaceuticals focused on clinical trials, however, few cannabis companies have solely focused on gaining FDA approval.

Looking Forward

Right now, there's an ever-increasing number of psychedelic companies that are seeking to complete clinical trials, however, it's important to note there’s a very significant first movers advantage.

Should Compass Pathways successfully complete its clinical trials to use psilocybin for treatment-resistant depression will have exclusivity for 5 years in the United States & 10 years in the European Union.

This model is in place to encourage companies to complete clinical trials which cost millions of dollars.

Our Take

It’s amazing to see the advancements being made to allow patients to access psychedelics.

From what we know, psychedelics are poised to have a very significant positive impact on mental health, and our ability to treat illnesses that were once impossible to help those who are suffering.

For more like this, subscribe to Four PM today to receive the next edition:

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Bonus Section

• → Greenline is hiring a Customer Success Representative.

• → Dutchie is hiring a Customer Success Manager.

• → Fire & Flower is hiring a Director of Information Technology.

If you gained value from this edition of Four PM, share it with your favorite cannabis professionals. 🌎

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In Today’s Issue:

• → Cannabis & Gaming. 🎮

• → Leaflys’ Latest Numbers. 💡

• → Hexo’s CEO Waves Goodbye. 👋🏽

A Cannabis Brand Focused On The Gaming Industry

Gaming influencer Hector Rodriguez has created his own cannabis brand…

In June, we shared data that suggested there was a very big opportunity to build a cannabis brand focused on gaming.

To recap, in a report from the brightfield group 53% of U.S cannabis consumers reported consuming cannabis before/while playing video games.

Capturing this opportunity…

Last weekend, entrepreneur and gaming influencer Hector “H3CZ” Rodriguez announced the launch of his cannabis brand Pine Park.

This makes Rodriguez the first prominent gaming influencer to professionally align with the cannabis industry, by creating a cannabis brand specifically focused on this growing niche.

By 2023, there will be 3+ billion people who actively play video games globally.

Who is H3CZ?

Hector Rodriguez is the longtime CEO of the esports organization OpTic Gaming & is one of the most recognizable names in esports.

Having gained close to 1 million followers on Twitter & over 400K followers on Instagram, Hector Rodriguez is a figure who yields a significant amount of influence across the entire esports industry today.

Why cannabis?

The decision to pursue this path stems from his personal passion for this plant & the increasing number of regions where cannabis is legal.

Rodriguez supports consuming cannabis as an alternative to Adderall or Xanax — both of which are heavily abused in the competitive gaming industry to help players increase their focus.

“When you go to the doctor, it’s either take Big Pharma this or Big Pharma that, and the side effects include all of these bad things.

So I do think that even this as an option is already 10 times better than what doctors are prescribing at times.” Rodriguez said.

So far, his announcement to create a cannabis brand has been very well received by the esports community with Rodriguez receiving an outpouring of support upon making this announcement.

“A lot of my peers reached out”

“They either want to ask for my help in coming to market in the future, and the rest were all people looking to invest.” Rodriguez said.

The initial focus is products with THC, however, they plan to make products with CBD in the near future to help gamers in a very clever way.

“We are launching a CBD ointment for knuckles and hands, pretty much a hand lotion, that will help you recover during the night”

The playbook…

Pine Park is seeking to solely work with gaming creators to build brand awareness & drive sales.

They intend to build a “roster of creators” focused on cannabis, with a strong emphasis on channels such as Twitter & YouTube to drive brand awareness.

Having already used this model to successfully build OpTic Gaming, it will be very interesting to see how they use this approach to build a cannabis brand.

Our Take

Gaming is one of the few categories where creating a cannabis brand makes perfect sense in my mind given the percentage of gamers who are themselves cannabis consumers.

Hector Rodriguez may be the first gaming influencer to start his own cannabis brand, however, he certainly won't be the last.

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Leaflys Latest Report On Budtenders

What budtenders earn, and the states who are hiring more cannabis professionals in 2022…

As the demand for cannabis products continues to increase, so does the number of people working in the cannabis industry.

As of January 2021, there were 321,000 people working full-time in the cannabis industry.

Per Leafly, since then tens of thousands of jobs have been created.

Fair pay?

Budtender compensation varies all across North America, however, in the U.S wages are said to be between $13 to $20 USD / hour.

The good news is that 80% of cannabis companies now offer paid time off & 70% of cannabis companies now offer health insurance benefits.

Making moves in 2022…

There are a number of states looking to make big moves in 2022.

Adult-use sales will start in New Jersey in 2022 with the potential for adult-use sales to commence in New York & In Pennsylvania in 2022 as well.

Additionally, there are states that continue to grow very rapidly.

• → In Illinois, cannabis sales are up nearly 60% from the start of 2021.

• → In Florida, medical sales have increased 30% from the start of 2021.

• → In Michigan, cannabis sales are up nearly 60% from the start of 2021.

While the report focused on budtenders, it also offers great insight as to which states will be seeking to make many more cannabis hires in 2022.

Our Take

All of this growth, despite the fact that cannabis remains illegal at a federal level in the U.S, and the illicit market is often larger than these legal markets.

Looking forward it looks like this growth will continue, with the cannabis industry on track to reach 520,000 full-time jobs by the end of 2022.

The Last Canadian Cannabis Founder & CEO

Hexo has announced both its CEO & COO will be leaving the company…

Founded in 2015, Hexo is one of Canada's most ambitious cannabis startups.

Having raised over $405 million USD, Hexo did not seek to conceal its ambitions of becoming the top cannabis producer in Canada.

Buying success…

Having failed to become the market leader by producing the right products, Hexo instead decided it was time to start purchasing smaller competitors.

• → Acquiring 48North for $40 million USD.

• → Acquiring Zenabis for $190 million USD.

• → Acquiring Redecan for $747 million USD.

Unmet expectations…

Despite this recent wave of successful acquisitions, today it was announced that Hexo’s CEO, Sébastien St. Louis, is leaving — effective immediately.

This sudden departure is part of a “strategic reorganization” announced today which also includes the resignation of Hexos COO Donald Courtney.

Having lost $441 million USD in 2020, the leadership team at Hexo has failed to deliver on one key promise — profitability.

So far this year Hexo has posted losses of $16.73 million USD in the last quarter & $18.6 million in its previous quarter.

The last in line…

A number of high-profile CEO’s of cannabis companies have stepped down in recent years.

Sébastien St. was one of the very last founders & CEO of a top Canadian cannabis company.

• → Bruce Lipton stepped down as CEO of Canopy Growth in July 2019.

• → Terry Booth stepped down as CEO of Aurora in February 2020.

• → Mike Gorenstein stepped down as CEO of Cronos Group in Sep 2020.

• → Brendan Kennedy stepped down as CEO of Tilray in May 2021.

Our Take

Raising over $400 million USD does not come without risks attached, and as we have seen & continue to see — should the founders of these companies fail to meet investors expectations, they can and they will be replaced.

I look forward to seeing who Hexo has lined up as Sébastiens replacement, with an announcement expected to arrive as early as this week.

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In Today’s Issue:

• → Cellibre’s Recent Raise. ⚡️

• → Canopy Wants Wana. 💰

• → The State of Emergency. ❌

The Race To Commercialize Cultured Cannabinoids

Biotech startup Cellibre raises $11.5 million USD to scale its platform…

Let's talk about Cellibre.

Founded in late 2017, Cellibre is a biotechnology startup seeking to solve a problem that would significantly alter the course of the cannabis industry.

An agricultural supply chain...

Today, the only method to produce cannabinoids is to cultivate cannabis plants — a process that takes 4+ months to complete.

Having successfully cultivated cannabis, the flowers these plants produce are sent to an extraction facility where specialized equipment extracts the cannabinoids from the remaining biomass.

This process is both expensive and rather wasteful with cannabinoids accounting for less than 20% of the total biomass cannabis plants produce.

Cellular agriculture…

In the 1960s a new technology emerged.

This technology was computers, with engineers writing software programs that have completely changed the very nature of our existence.

Now, technologists are seeking to take this one step further — programming cells to produce both the food & medicine we consume.

Just like the supercomputer you carry around in your pocket all day — this technology was once the stuff of science fiction.

Cellibre aims to use this technology to produce cannabinoids, which would reduce brand’s dependency on cultivating cannabis plants to access the cannabinoids consumers are seeking.

Future outlook…

Cannabis brands have access to a handful of the 168 cannabinoids we know of.

Cannabis plants are unable to produce the far majority of these molecules.

Should Cellibre successfully scale its technology, they could then supply cannabis companies with any & all cannabinoids they are seeking.

Cellibre is not without competition in this space to produce cannabinoids using this technology, however, having assembled a world-class team — they stand a great chance of succeeding.

Our Take

Cellibre is one cannabis company worth keeping a very close eye on.

Targeting a 90% cost reduction in the current price of producing cannabinoids, I will personally be watching this space closely.

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The State Of Emergency

A state of emergency in response to the success of illicit cannabis…

Oregon has long been a leader in cannabis.

• → In 1973 they decriminalized cannabis.

• → In 1998 they legalized medical cannabis.

• → In 2014 they legalized adult-use cannabis.

Despite this progressive cannabis regime, the State has struggled to displace the illicit cannabis market & one county is calling for greater support.

Water shortages…

On Wednesday, Jackson County in Oregon with a population of 220,000+ people officially declared a state of emergency in response to their inability to combat the illicit cannabis market.

To understand why the success of the illicit cannabis market warrants such a strong response.

• → Over 80% of Oregon is experiencing severe drought conditions.

The poster child of this concern was the recent discovery of an illegal cannabis facility where 72,000 cannabis plants were being cultivated — with the required water being drawn from the Illinois River.

This poses an "imminent threat to the public health and safety of our citizens from the illegal production of cannabis in our county."

Legal hemp…

One of the primary problems regulators in the state face is the difficulty in distinguishing the differences between cannabis & hemp plants.

Can you personally spot the difference?

Authorities are claiming that it has become common practice for illegal cannabis farms to simply pose as legal hemp farms.

To add weight to this argument, the Oregon Health Authority and the Oregon Liquor and Cannabis Commission recently reported that close to 50% of registered hemp farms inspected in the state are illegally growing cannabis.

• → 25% of registered hemp farms in the region outright refused entry to inspectors.

That said, this report did not offer clarity as to whether this is farmers intentionally cultivating cannabis, or if this 50% of farms were growing hemp plants that tested positive for having too much THC.

Reaching out for help…

In a clear admission that they are ill-prepared to deal with this issue on their own, the region is asking for support from the State to combat this problem.

"Jackson County strongly requests your assistance to address this emergency" the commissioners said in a letter to Gov. Kate Brown

Gov. Kate Brown has authorized doubling the size of cannabis law enforcement grants in the region, in addition to directing the Oregon State Police to dedicate additional resources.

Our Take

I cannot think of any other billion dollar CPG category where a majority of consumers purchase products from the illicit market.

With the current demand for illicit cannabis across the U.S, it’s clear that the legal cannabis industry in the U.S has substantial growth left to go.

Canopy Growth Wants Wana Brands

Canadian giant Canopy Growth is making moves to acquire Wana Brands…

In October 2018, Canada became the first G7 nation to legalize cannabis for adult use purposes.

Subsequently, billions of dollars flowed into the Canadian cannabis industry as producers raced to claim market share of this newly established market.

New demands…

Prior to successfully establishing themselves as market leaders in the adult-use cannabis market — several Canadian cannabis producers declared their ambitions of global domination.

These extremely ambitious goals allowed these Canadian cannabis producers to collectively raise billions of dollars from the investors who wanted a piece of this potentially trillion dollar pie.

The challenge for these companies is that these same investors who provided the capital these companies asked for to conquer the world are now asking for clearly defined plans for their entrance into the U.S market.

• → 38 million people live in Canada.

• → 329.5 million people live in America.

Making moves…

Courtesy of being listed on the New York stock exchange, Canadian companies are currently prohibited from acquiring U.S cannabis companies.

They can, however, purchase the rights to purchase U.S cannabis companies at the point which cannabis becomes legal in the U.S on a federal level.

In April 2019 Canopy Growth acquired the rights to Acreage Holdings in a deal that valued Acreage at $3.4 billion USD which made Canopy the first Canadian producer with a clear path to expand its plant-touching operations to the U.S.

Purchasing Acreage gave Canopy retail stores and cultivation facilities, however, Canopy now has its eyes set on expanding its edibles division.

Welcome Wana brands…

Founded in 2010, Wana brands is the #1 cannabis edibles brand in North America — with a strong presence in 12 states & Canada.

Similar to Cookies, Wanna Brands licenses its IP to other cannabis companies.

Led by Nancy Whiteman, the team at Wana has done a fantastic job scaling the presence of its brand across multiple markets.

This success has not gone unnoticed, and Canopy has announced its plans to acquire 100% of Wana brands for $297.5 million USD.

The timing of the deal closing remains very unclear due to the lack of clarity as to when the U.S will federally legalize cannabis.

Our Take

This is a great move by Canopy Growth, and I suspect Wana brands will not be its last acquisition as they expand into the U.S.

We can expect to see a lot more deals such as this one in the coming years as more Canadian producers make similar moves into this market.

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Bonus Section:

• → Dutchie is hiring a Vendor Manager.

• → Fyllo is hiring a Senior Vice President of Sales.

• → Jane is hiring a Revenue Operations Manager.

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In Today’s Issue:

• → What Consumers Want. 🍹

• → Cannabis In Nepal. 🏔

• → Let The Lawsuit Begin. 🏁

Choosing Cannabis Over Booze

Are consumers ditching booze in favor of cannabis?

Here’s the billion-dollar question.

As more & more consumers turn to cannabis, how is this impacting the alcohol industry?

New data…

Currently, with legal cannabis sales being limited to North America it’s difficult to quantify in dollar terms the impact Cali Sober (consuming cannabis instead of booze) is having on the alcohol industry.

A new report from New Frontier Data does, however, offer amazing insights as to the current percentage of consumers choosing cannabis over booze.

Cannabis vs booze…

When asked why they consume cannabis, 16% of respondents said replacing alcohol was their reason for using cannabis.

Whereas replacing alcohol has clearly caught on, consuming cannabis to reduce one’s alcohol intake is even more popular.

In total, 47% of respondents said they had replaced at least some of their alcohol intake by consuming cannabis instead.

Why cannabis?

One of the most interesting aspects of cannabis is the wide array of distinct experiences cannabis products can produce — which results in many different desires from a consumer standpoint.

Per their research, the five most common reasons for consuming cannabis were.

• → Relaxation - 67%

• → Stress relief - 62%

• → Reducing anxiety - 54%

• → Improving sleep quality - 46%

• → Pain management - 45%

Additionally, 52% of current consumers reported consuming cannabis to improve their mental health during the pandemic.

What do people do when under the influence?

The most common use case for cannabis is relaxation & the activities consumers engage in when under the influence of cannabis reflect this.

• → Sleeping - 48%

• → Browsing the internet - 38%

• → Listening to music at home - 52%

• → Watching TV/movies at home - 55%

• → Socializing at someone's house - 38%

From booze to buds…

With such a significant change in consumer preferences, alcoholic beverage companies are by no means sitting on the sidelines.

3 alcoholic beverage industry giants have already made moves into cannabis.

• → Molson Coors partnered with Hexo to create Truss Beverages.

• → Heineken created a cannabis beverage under its brand Lagunitas.

• → Constellation Brands invested $4.25 billion USD into Canopy Growth.

Our Take

Although we are in the earliest days of the development of this industry, it’s becoming clearer by the day why large alcoholic beverage companies have taken such a keen interest in cannabis.

I have a very high level of confidence that many more consumers will adopt Cali Sober as it becomes more known that cannabis is a safer substance when compared to alcohol.

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The Effort To Legalize Cannabis

Will Nepal once again legalize cannabis with Canada having already done so…

Located on the southern slopes of the Himalayan mountains is a nation home to 29+ million people.

Whereas once Nepal was called a hippies paradise due to its liberal laws in favor of allowing people to consume cannabis, things changed quickly.

A brief history…

Nepal has had strong links to cannabis for centuries.

In the early 1700s Nepalese “charas” was recognized as being some of the highest quality cannabis anyone could purchase.

During this time cannabis was sold openly on the streets by licensed agents.

Increasing demand…

In the 1960s, Nepal began attracting droves of young adults from around the world as it gained the nickname of the “Hippie Trail”.

The production of cannabis skyrocketed to meet this new demand, and cannabis was viewed as being very good for the economy.

Despite this success, in 1973 Nepal canceled the licenses of all cannabis shops, dealers, and farmers, under pressure from the U.S & other nations.

Fast forward to today…

Close to 50 years later, campaigners in the region are once again asking for permission to cultivate, consume & sell cannabis.

So far supporters have introduced a bill in Parliament that would legalize cannabis, with the Nepal Health minister Birod Khatiwada lobbying for the proposed bill to pass.

“I am trying to make it a campaign and issue in Parliament because many countries including the most powerful and developed countries have allowed the use of marijuana,” Khatiwada said.

Our Take

It’s great to see a nation with such a rich history with cannabis once again embracing cannabis.

The emphasis they are placing on small scale production in the region is also amazing to see.

The Million Dollar Court Case

MedMen’s co-founders are accused of a long list of wrongdoings…

One of the most highly anticipated cannabis trials began yesterday with the former MedMen CFO James Parker going head to head with MedMen’s former CEO & President.

The Lawsuit…

Parker is alleging that Adam Bierman (CEO) and Andrew Modlin (President) forced him to resign from his position, in addition to treating MedMen as their “personal piggy bank”.

The lawsuit claims that Bierman & Modlin used the money MedMen had raised to live a life of luxury, purchasing items that had no benefit to MedMen.

• → 24 hour armed security for Bierman, Modlin, and their families.

• → A pearl white Escalades for Bierman.

  

• → A custom $160,000 Tesla SUV for Modlin.

  

Beyond this, Parker alleges the two created a work environment where consuming alcohol & cocaine on the job was simply a norm in addition to calling Parker “a pussy” for refusing to break the law.

Additional allegations include:

• → Engaging in stock manipulation.

• → Being forced to use his personal credit card for company purchases.

• → Using company resources to carry out personal vendettas.

Damages…

Parker, who was paid $750,000 USD annually for his work with MedMen is requesting an unspecified amount in damages.

Should Parker win, this number could very well be in the millions of dollars.

Although these actions were carried out by executives of MedMen, both Bierman & Modlin were named as individual defendants which means they could be personally liable for these damages.

In return, MedMen is accusing Parker of stealing “proprietary company information” based on Parker sending 200 emails from his MedMen email to his personal account & downloading data.

Looking forward...

From the outset, the contracts that were signed when James Parker joined MedMen will play a very significant role as we have already seen with MedMen having to pay at least $500K for Parker’s legal fees for this case.

The trial is expected to last about 3 weeks in total and with both reputations & millions of dollars on the line — many in the cannabis industry will be watching closely to see how this case progresses.

Our Take 

Regardless of how this case is resolved, it’s a bad look for the cannabis industry.

This one case does not reflect the entire cannabis industry, however, if nothing else MedMen’s decline highlights what can go wrong when a company seeks to grow at all costs.

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In Today’s Issue:

• → The Latest Lawsuit. 💰

• → Normalizing Cannabis. ✅

• → Trouble For Tilray. ❌

The MedMen Founders Are Back

They are headed back to court for reasons related to their new venture…

In 2019, MedMen was one of the hottest cannabis startups in North America.

Having raised over $360 million USD to build the Apple of cannabis, the founders of MedMen could do no wrong.

The rise & fall…

Unfortunately for Adam Bierman and Andrew Modlin — the co-founders of MedMen this was short-lived.

In 2019, former CFO, James Parker, filed a lawsuit claiming that he was wrongfully discharged alongside an array of other allegations.

By the end of April 2019 MedMen's COO Ben Cook, general counsel Lisa Sergi Trager, and SVP of Corporate Communications Daniel Yi all resigned.

On the 1st of February 2020, Adam Bierman resigned as CEO and surrendered all of his Class A voting shares of MedMen.

Back for more…

A little over a year after they were forced to resign from their position at MedMen, Bierman & Modlin are going back to court for cannabis.

This time, they are not accused of wrongdoing.

Rather they are claiming their new partners at Coastal Holding Co. created a scheme to sell the company in a “fire sale.”

They filed three lawsuits in state and federal court against the 5 co-owners of Coastal Holding Co. over plans to sell the company for $56.2 million USD.

This sale is to The Parent Co who has agreed to acquire 100% of the company in a cash-and-stock deal worth up to $56.2 million USD.

What do they want?

Adam Bierman and Andrew Modlin claim that as investors and partial owners of Coastal which they invested $3.7 million USD in — they have the right to approve the sale, but have refused to do so.

The owners of Coastal responded in a court filing stating that Bierman organized the very sale he is now trying to stop using the courts.

Different versions of events…

The courts will need to establish the basic facts.

“It was Plaintiff, not Defendants, who recommended, found, and negotiated” the sale of Coastal for $56.2 million, according to a court filing by the company’s other owners.

The version of events being presented by the defendants is that Adam Bierman himself raised the very concern that led to this acquisition.

“In fact, (Bierman) has repeatedly expressed concern that Coastal will not survive without an immediate capital infusion.”

It remains unclear what exactly the former Co-founders of MedMen Adam Bierman and Andrew Modlin are aiming to achieve with these actions.

Our Take

I don’t have all the information regarding the specifics of this case.

That said, if it were to become clear that Bierman & Modlin were working against the company's best interests then it will become incredibly hard for them to remain in the cannabis industry.

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What’s happening with cannabis?

A new survey shines a light on key consumer trends in the cannabis industry…

The cannabis industry exists for one good reason — people really like to consume cannabis.

In a new study conducted by Azuca, they examined how often consumers consume cannabis, and why?

The when…

50% of the 1,089 people surveyed said they had consumed cannabis.

• → 14% consume cannabis daily.

• → 9% consume cannabis weekly.

• → 7.5% consume cannabis monthly.

• → 19.5% said they consume cannabis just a few times a year. 

Why cannabis…

People consume cannabis for many different reasons, as is evident by the range of reasons people reported in the survey.

• → 64% consume cannabis for relaxation.

• → 43% consume cannabis for sleep aid.

• → 37% consume cannabis for wellness.

• → 39% consume cannabis for recreation.  

• → 40% consume cannabis for pain management.

Additionally, in what is a clear sign that the stigma around cannabis is declining — 33% of people reported being able to consume cannabis at work.

Our Take

It’s great to see more consumer research being conducted such that we can collectively increase our understanding of cannabis consumers.

With cannabis producers across North America currently producing vastly too much cannabis vs current consumer demand, research such as this can go a long way in producing products consumers actually want to purchase.

Calling Out Smaller Cannabis Producers

The CEO of Tilray sparks controversy with some unusual comments…

As Canada fast approaches its 3 year anniversary of legalizing cannabis for adult-use purposes, large producers are running out of reasons as to why they are failing to deliver on their ambitious sales targets.

With billion-dollar losses that were initially blamed on the slow rollout of cannabis retail stores in Canada — one CEO is now changing this target.

Smaller producers to blame?

Last week, the CEO of Tilray Irwin Simon decided it was time to take aim at the growing number of small cannabis producers in Canada.

"If you look at us, Hexo, Canopy Growth, and Aurora, all together we have 50% share (of the Canadian market)”

"Underneath that, you have 450 licensed producers that are all ankle biters that are taking a little bit of share away.”

The impact of these “ankle biters” is certainly being felt in Canada where 700+ producers are now licensed to sell cannabis.

Although Irwin Simon characterized this impact as a “little bit” — the data paints a very different picture.

The top 5 producers of cannabis in Canada have lost 20% market share in the last year despite the consolidation.

• → Tilray merged with Aphria to create a $3.9 billion USD company.

• → Canopy Growth acquired Supreme Cannabis for $340 million USD.

• → Hexo acquired Redecan, Zenabis & 48 North for over $950 million.

Pointing fingers…

With such vast amounts of capital at their disposal, one has to wonder what’s the underlying cause of companies not reaching their goals?

• → Tilray lost $321 million USD in 2019.

• → Tilray lost $271 million USD in 2020.

Before Tilray’s merger with Aphria, the combined companies commanded 20% market share in Canada, however, this has since slipped to 16%.

CEO Irwin Simon will earn close to $30 million USD this year as the company continues to expand in many different directions from wellness products to alcoholic beverages, and of course cannabis.

Our Take

This was a terrible choice of words by the CEO.

As opposed to taking ownership of the problems Tilray is having, he instead choose to insult the companies that are actually succeeding where Tilray themselves have fallen behind.

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Bonus Section

• → If you like Marketing, Dutchie is hiring a Social Impact Lead.

• → If you like Sales, Jane is hiring an Account Executive.

• → If you like Marketing, LeafLink is hiring an Email Marketing Associate.

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In Today’s Issue:

• → Sundial’s Latest Strategy. 💸

• → Cannabis M&A In Florida. 🏦

• → The NBA’s Announcement. 🏀

From Buds To Booze

Sundial is acquiring Canadian retailer Alcanna for $276 million USD…

As Canadian cannabis producers struggle to bring their plans of reaching profitability into fruition, several producers have begun revising their initial strategies to reach this goal.

For some producers, partnering with craft cannabis producers is the right path forward, for others focusing on the medical cannabis market is the right play, however, for Sundial Vertical integration is the name of the game.

Building Sundial…

Sundial is based in Alberta, Canada.

While the province of Alberta has exceeded expectations since Canada legalized cannabis for adult-use purposes, the same cannot be said for Sundial Growers.

Since Sundial went public on the 6th of August 2019 when they raised $143 million USD, their share price has declined 96%.

A change of plans…

On the 20th of July, Sundial announced its acquisition of Spirit Leaf — one of the largest Canadian cannabis retailers.

This acquisition cost $107 million USD, which provided them with 86 stores at the time — 18 corporate stores and 63 franchise locations.

This was their entrance into owning retail stores, however, they are now doubling down on this strategy as they announced their acquisition of Alcanna for $346 million CAD in stock.

Alcanna has 171 retail locations throughout Canada, and they also own 63% of Nova Cannabis who owns 62 cannabis retail locations in Canada.

Alcoholic beverages…

With this acquisition, Sundial is one of the first Canadian cannabis companies to move from cannabis to alcoholic beverages.

With Sundial producing products for the cannabis retail stores they own, it remains unclear if they will seek to do the same with alcoholic beverages.

Granted there are similarities from a regulatory standpoint between cannabis and alcoholic beverages, however, cannabis and alcohol are very different product categories.

Looking forward…

Understanding consumer needs in cannabis where many new consumers are still learning the types of products they like is no easy task.

One key aspect of this strategy Sundial has emphasized is its usage of point of sale data to understand consumer needs which is a smart move.

With platforms such as Headset that readily provide all of this information, one has to wonder how necessary it is to own a network of retail stores to obtain this data?

Our Take 

Who knows what the winning strategy is for cannabis in Canada.

In an industry that is clearly so early in its development, what works today is not guaranteed to work tomorrow & at the very least Sundial is willing to try a new strategy to achieve its goal.

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A Race To Capture Market Share

Breaking down the billions being spent to win market share in Florida…

Cannabis companies have spent billions to enter the medical cannabis market in Florida.

This ever-increasing interest in Florida stems from their ever-increasing medical cannabis sales.

• → Sales surpassed $200 million in 2018.

• → Sales surpassed $400 million in 2019.

• → Sales surpassed $1.2 billion in 2020.

Leading the way…

Of the 2.31 million ounces of cannabis sold in Florida since the beginning of this year, Trulieve has sold more than 2.7x more cannabis than two of its largest competitors combined.

• → Parallel sold 194,469 ounces.

• → Curaleaf sold 255,719 ounces.

• → Trulieve sold 1.15 million ounces.

Trulieve is leading the way, however, competition is coming from all angles.

The details of the deals…

Many of the most successful U.S cannabis companies are all headed for Florida to win a piece of this multi-billion dollar market.

• → In September 2020 Cookies acquired a vertically integrated license.

• → In November 2020 Verano Holdings agreed to acquire Alternative Medical Enterprises.

• → In December 2020 Ayr Wellness agreed to acquire Liberty Health Sciences for $290 million in stock.

• → In January 2021 Cresco Labs agreed to acquire Florida Bluma Wellness, for $213 million USD in stock.

• → In May 2021 Trulieve agreed to acquire Harvest Health & Recreation, for $2.2 billion USD in stock.

• → In September 2021 Planet 13 Holdings agreed to acquire a medical cannabis license in Florida for $55 million USD.

Store growth = sales growth

The number of people certified to receive medical cannabis has increased 46% in the last year.

• → Florida had 424,224 patients in October 2020.

• → Florida had 619,278 patients in October 2021.

During this same period of time, where the total number of certified patients has increased 46%, the number of cannabis retail stores open to service this ever-increasing demand has only increased 33%.

Consolidation…

There has been significant consolidation in Florida.

Of the 350+ cannabis retail stores open today, there are four companies that have captured over 60% market share.

• → Curaleaf has 37 stores.

• → AltMed Florida has 38 stores.

• → Liberty Health has 42 stores.

• → Trulieve has 105 stores.

Our Take

Florida has very quickly become one of the most important markets for cannabis in North America.

The importance of this market is likely only going to increase as medical sales continue to reach record highs, alongside the increasing likelihood of adult-use sales being permitted.

No More Random Cannabis Tests

The NBA is extending its policy to allow players to consume cannabis…

Should professional athletes have to ask for permission to consume cannabis?

Although professional leagues have been debating this question for decades as players continued to consume cannabis — this specific issue took center stage following Sha'Carri Richardson's ban.

Following the lead…

Both the National Hockey League and National Football League have amended their cannabis policies to say players testing positive for cannabis will no longer be suspended.

Major League Baseball does not test players for cannabis use anymore, in addition to the UFC having announced they would no longer penalize fighters for consuming cannabis.

Next on this list? → The NBA

In 2020 the NBA stopped testing players for cannabis as they all entered the NBA covid-bubble, where teams completed the season at Disney World.

Building on this…

This decision was not based on an examination of the evidence for cannabis, instead, the league emphasized that this decision was simply to reduce the likelihood of players catching COVID-19.

Now, the NBA has agreed to extend this decision to not randomly test players for cannabis during the 2021 season.

“We have agreed with the [National Basketball Player’s Association] to extend the suspension of random testing for marijuana for the 2021-22 season and focus our random testing program on performance-enhancing products and drugs of abuse.” — NBA spokesman Mike Bass said.

It’s important to note that cannabis remains prohibited under the league’s policies, however, last year, NBA Commissioner Adam Silver said that the league was considering turning this temporary policy into a permanent one.

Cannabis and the NBA

It is virtually impossible to assess how many of the current NBA players consume cannabis, however, anecdotal evidence suggests consuming cannabis is a norm within the NBA.

Kenyon Martin, who played 15 seasons in the NBA estimated that 85% of professional basketball players consume cannabis.

Adding weight to this anecdotal evidence — in 2020, six NBA players anonymously surveyed by NBC Sports indicated at least 50% of the league consumed cannabis in some form.

From basketball to buds…

The industry has seen no shortage of former professional basketball players entering the industry.

• → Kevin Durant was an early investor in Dutchie, in addition to recently partnering with Weedmaps to create a cannabis podcast.

• → Basketball star Al Harrington founded the cannabis brand Viola.

• → Former NBA champions Matt Barnes and Stephen Jackson created a cannabis-focused podcast called All The Smoke.

• → Gary Paton created his own cannabis strain with Cookies which is available across California & now Canada.

• → Hall of Famer Isiah Thomas has invested $3+ million USD into cannabis startups.

Our Take

It’s amazing to see how many professional basketball players have suddenly come out of the cannabis closet — with many of these individuals now founding their own cannabis companies.

I suspect this trend will continue for many years to come as the stigma surrounding cannabis in society continues to be erased.

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Bonus Section:

• → Tantalus Labs is hiring a Brand Ambassador.

• → Cannabis At Work is hiring a Brand Manager.

• → Fire & Flower is hiring a Loyalty Engagement Manager.

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In Today’s Issue:

• → Progress In Pennsylvania. ✅

• → Dried Flower In New York. 💨

• → Legalization In Malta. 🌿

Additionally Pressure On Pennsylvania Politicians

With the largest city calling for a referendum, when will Pennsylvania legalize cannabis?

As the U.S government continues to drag its heel when it comes to cannabis — states are taking control of this issue as they continue to move faster than the federal government on cannabis.

Since October 2020, we have seen 11 states with a combined population of 50,886,000 people stepping up to update their laws.

• → Arizona legalized adult-use cannabis.

• → Vermont legalized adult-use cannabis.

• → Montana legalized adult-use cannabis.

• → New Jersey legalized adult-use cannabis.

• → South Dakota legalized adult-use & medical use sales.

• → Virginia legalized adult-use cannabis.

• → New York legalized adult-use cannabis.

• → Alabama legalized medical-use cannabis.

• → New Mexico legalized adult-use cannabis.

• → Louisiana decriminalized cannabis.

• → Connecticut legalized adult-use cannabis.

Next on this list? Possibly the state of Pennsylvania.

Progress…

Today it was announced that the people living in Philadelphia will be voting on a referendum to legalize cannabis.

To date, we have already seen multiple cities in the state of Pennsylvania with a population of 12.8 million people decriminalize cannabis possession, however, state legislators have continued to stall.

In response, the City Council of Philadelphia has placed this referendum on the local ballot.

A clear demand…

The resolution they are seeking to pass would send a clear message:

“The citizens of Philadelphia call upon the Pennsylvania General Assembly and the Governor to pass legislation that will decriminalize, regulate, and tax the use, and sale to adults aged 21 years or older, of cannabis for non-medical purposes.”

Although this resolution would not make any immediate changes to the laws in place, it would add additional pressure on the state to act.

The good news is that both the Governor of Pennsylvania Tom Wolf and his Lieutenant Governor John Fetterman are already on board with the legalization of cannabis.

Despite this widespread support, the Republican controlled state legislature has so far resisted calls to legalize cannabis for adult-use purposes.

Bipartisan support…

Despite this lack of support, on Monday Republican senator Mike Regan announced he will be filing a bill to legalize cannabis in Pennsylvania.

In addition to this bill, state lawmakers Jake Wheatley and Dan Frankel — unveiled their own bill which would legalize cannabis in the State.

This bill specifically prioritizes social equity for communities most harmed by the war on drugs, similar to the MORE act.

Our Take

Just as there is a level of impatience on the part of the States to wait for the federal government to act on cannabis, this same trend is true for certain cities patiently waiting for States to act.

With several bills now in the works & 58% of residents saying they support legalizing cannabis, I would be willing to bet Pennsylvania will legalize adult-use cannabis within the next year.

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Dried Flower For New York

Great news for medical cannabis in New York…

After waiting several months for any form of progress in New York, the cannabis industry has had much cause for celebration in recent times.

In September, the cannabis industry received the news it needed as the newly appointed governor of New York Kathy Hochul confirmed her appointments to the cannabis control board.

Medical cannabis…

Yesterday, at the first meeting of New York’s cannabis regulatory agency they made the decision to amend the state’s medical cannabis program.

Until yesterday, medical patients in the state were limited to consuming cannabis oils, however, the cannabis regulatory agency has made the decision to expand this to include dried flower.

Additionally, the newly formed Cannabis Control Board is implementing regulations where a much wider range of medical professionals will be allowed to recommend medical cannabis.

Demand for flower…

Many medical patients consume dried cannabis flower as the effects are much more instantaneous (less than 5 mins) vs oils which can take a considerable amount of time to take effect.

Allowing dried flower for patients in addition to the expansion of who can recommend medical cannabis is expected to significantly increase medical cananbis sales in the State.

There are currently 150,000 New Yorkers certified to obtain medical cannabis.

Our Take

All adults should have the choice as to which cannabis products they would like to consume.

Where there is demand for cannabis there will always be supply and if the form factor of cannabis an adult is seeking isn’t available in the legal market, then the illicit market will win a new consumer.

The Continued Effort To Ease Cannabis Laws In Malta

Maltas Minister Owen Bonnici wants to legalize cannabis for all adults…

Since legalizing medical cannabis, an estimated 1,900 people have been prescribed medical cannabis in Malta.

This figure has been steadily increasing since legislative changes came into effect in 2018, however, the nation home to over 525,000 people wants to take things one step further.

The new proposal…

Taking a slightly different approach to regulating cannabis in the region, non-profit associations would be the only organizations permitted to grow cannabis that would be supplied to adults.

This proposal is very similar to the “cannabis clubs” we see in Spain today.

The key details…

• → Any adult over the age of 18 can carry up to 7 grams of cannabis.

• → Up to 4 cannabis plants are allowed per residence, regardless of how many people live on the property.

• → Adults can keep up to 50 grams of dried cannabis at a residence.

• → People cannot consume cannabis in public for non-medical purposes, and is subject to a €235 fine.

• → Cannabis use in front of minors is not permitted, and is subject to a €300-500 fine.  

Cannabis clubs…

Should the proposal receive the required level of support, cannabis clubs would form to supply those who cannot cultivate their own cannabis.

• → No one may be a member of more than one organization. 

• → These organizations would be able to distribute up to 20 cannabis seeds to each member each month.

• → They cannot have more than 500 grams of dried cannabis on site.

• → No more than 7 grams per day can be distributed to each member with a maximum of 50 grams per month.

These clubs would be overseen by the Responsible Cannabis Use Authority, with the clubs having to report all member activity every three months.

The goal…

Malta wants to reduce the amount of cannabis being purchased from the illicit market.

With this being the core problem they are seeking to solve, they are so far not in favor of regulating cannabis like alcohol, instead, they are seeking to create a grass-roots cannabis industry.

"We want to reduce the suffering, humiliation, and deprivation of other rights that many cannabis users have experienced when they have been subjected to arrest and judicial proceedings on possession of small amounts," Bonnici said. 

What’s next?

The bill, which was published this week, was tabled in parliament on Monday for a first reading.

So far more than 300 stakeholders in Malta have submitted feedback to the white paper, however, no official timeline has so far been provided as to when this proposal could become law.

Our Take

I commend Maltas willingness to peruse a community orientated model.

With the commercialization of cannabis clearly not being a priority here, I will be watching very closely to see how this market develops in the coming years should this proposal receive the required support.

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Bonus Section

• → Fyllo is hiring a Director of Product Marketing (remote position).

• → LeafLink is hiring a Email Marketing Associate (remote position).

• → Dutchie is hiring a Customer Success Manager (remote position).

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In Today’s Issue:

• → Cannabis Retail Data. 💡

• → Demand For Concentrates. ✅

• → Biber’s Cannabis Play. 🎶

More Stores Does Not = More Consumers

A new study examines the link between the number of cannabis stores and its impact on new cannabis consumers…

California legalized cannabis for adult-use purposes in 2016, however, cannabis retail stores are unable to operate in 65% of the municipalities in California.

This problem stems from the stigma still associated with cannabis, despite the fact that legal sales surpassed $4.4 billion USD in 2020 — providing California with $1 billion USD in tax revenue.

The new data…

One of the main concerns is that allowing stores will result in more people consuming cannabis.

In order to address this concern— the cannabis industry needs to be armed with the right data.

To do so, professor Michael Armstrong from Brock University examined the link between the number of new cannabis retail stores in Canada, relative to the number of new consumers consuming cannabis.

The results…

The number of new cannabis retail stores that opened their doors had a very strong correlation with the rising sales in Canada, where cannabis sales have increased 6x since 2019.

“Each added (cannabis) store was associated with added quarterly sales of $305,000 CAD.”

That said, the study found very little evidence to suggest that opening cannabis retail stores directly impacted the number of new cannabis consumers.

The research implies, “though does not prove,” that the majority of legal sales involve existing users converting to regulated sources, not necessarily new users consuming cannabis for the first time.

What this means…

This study can now be used to debunk the claim that opening cannabis retail stores results in many more consumers consuming cannabis, instead, these stores take customers out of the illicit market and into the legal market.

As such, each of the municipalities that are choosing to ban cannabis retail stores is directly contributing to the success of the illicit market.

“An indirect implication of the results is that legal sales – so far – mostly represent market share taken away from illegal sellers, rather than new users entering the market.

Additionally, with every cannabis producer supplying the legal market having to abide by rigorous quality assurance standards, the decision to ban legal stores is directly putting consumers in harm’s way.

“One direct implication of these results is that jurisdictions which add more stores get substantial increases in legal sales but limited increases in prevalence.”

Our Take

With the success of the cannabis industry in California, Canada & every other jurisdiction that has so far legalized cannabis — the justification for banning cannabis retail stores is very weak.

Given the percentage of people who are voting to legalize cannabis, it also seems very odd that retail stores would remain illegal in such a large percentage of municipalities in these regions.

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The Growing Demand For Cannabis Concentrates

A new industry report examines the growing demand for concentrates…

In the minds of many, the primary reason why people choose to consume cannabis is for the pleasurable “high” sensation cannabis produces.

As we collectively learn more about the needs of cannabis consumers, and more specifically why they choose to consume cannabis — we are realizing that this reasoning is flawed.

Each person that consumes cannabis has their own reasons why they choose to consume cannabis, and cannabis consumers have preferences for many different form factors of cannabis.

Some consumers prefer dried flowers over edibles, and some consumers have a preference for cannabis concentrates.

There is very mixed demand for cannabis concentrates across North America.

• → In Canada they account for 2.9% of sales.

• → In the U.S they account for 9.5% of sales.

Per Headset, this demand also looks very different right across America.

In Canada, hash is the most popular type of cannabis concentrate — a product made from the trichomes of cannabis.

Live Resin is the most popular type of cannabis concentrate in the U.S — a product made from frozen cannabis plants.

Our Take

This data is necessary to understand what’s happening in cannabis today across North America as consumer’s preferences continue to evolve.

With billions of adults around the world currently not having access to cannabis, it will be very interesting to watch this specific trend in the different nations that legalize cannabis.

Justin Bieber Goes Green

Having conquered the music industry, Bieber is releasing a cannabis brand…

In a first for cannabis, Justin Bieber is leveraging the success of his most recent album “Justice” to launch a cannabis brand.

Courtesy of an exclusive partnership with California based Palms, Bieber’s products will be made available on the 4th of October 2021 across California, Nevada, Massachusetts, & Florida

The products…

Founded in 2018 with headquarters in Hollywood, Palms is a pre-roll brand that can be found on shelves throughout Nevada and California.

Per Forbes, Palms and Bieber were connected by Scooter Brauns who is Bieber’s longtime manager who also happens to have his own cannabis fund

The products will cost between $50 to $60 USD per pack of 7 half-gram joints each rolled with “premium indoor grown cannabis flower”.

The goal…

A conversation long overdue is the positive impact cannabis can have on people’s mental health.

With Bieber having used cannabis in this capacity — he wants to use this opportunity to bring the spotlight to this conversation.

• → He has 114 million followers on Twitter.

• → He has 198 million followers on Instagram.

• → He has 68 million subscribers on YouTube.

“I'm a fan of Palms and what they are doing by making cannabis approachable and helping to destigmatize it–especially for the many people who find it helpful for their mental health.”

Although no numbers have been disclosed, a percentage of the profits from this product line will help support cannabis causes focused on mental health such as Veterans Walk and Talk.

Additionally, they will be supporting The Last Prisoner Project as well as supporting the social equity initiative from Eaze through their Momentum business accelerator.

Following the path paved…

Bieber is by no means the first celebrity to create their own cannabis brand.

• → Ice Cube created Fryday Kush.

• → Seth Rogen created House Plant.

• → Mike Tyson created Tyson Holistic.

• → Martha Stewart created Martha CBD.

• → Snoop Dogg created Leafs by Snoop.

• → Bella Thorne created Forbidden Flowers.

Our Take

We will continue to see more & more celebrities join the cannabis industry in the coming years, as cannabis becomes more “mainstream”.

Although many of these brands won’t obtain the same level of success as a brand like Cookies, these celebrity endorsements will continue to have a positive effect on the destigmatization of cannabis.

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In Today’s Issue:

• → U.S Legalization Plans. 🌿

• → Canadian Taxation Reform. 💰

• → Cannabis Sales In Illinois. 🚀

A Divided Democratic Party

Can the democratic party reach a consensus on the right path forward?

For the past 12,000 years, we humans have been safely consuming cannabis.

Less than 80 years ago, lawmakers successfully enacted legislative reform that prohibited adults from accessing this plant.

Fast forward until 2021, and albeit 36 states have legalized cannabis for medical purposes, 18 for adult-use purposes with 68% of Americans now supporting the legalization of cannabis — U.S politicians remain at a standstill.

Democrats vs Republicans

With such a large percentage of the American population supporting the legalization of cannabis — a great deal of effort is now being made to once again allow every adult to access cannabis.

The problem, however, is that up until the most recent elections — any & all attempts to intact this reform were crushed by the Republican Party.

As of January 2021, the odds of this reform coming into effect significantly increased as the Democrats claimed control of the Senate for the first time in 6 years, while maintaining control of the House.

This control was obtained by the slimmest of margins with the Democrats having 51% of the votes, whereas they require 60% of the 100 votes to successfully pass new legislation.

MORE vs SAFE Banking…

There are currently two pieces of legislation making progress in Congress, however, let’s start by clarifying the primary goals of each.

• → The MORE Act would federally legalize cannabis, with a strong focus on social equity.

• → The SAFE Banking Act would protect financial institutions that work with cannabis companies from federal regulators.

The problem as things stand today is the divided opinions within the Democratic party as to which legislation should be passed, with Democrat leaders working in opposition to one another.

• → V.P Kamala Harris is the lead Senate sponsor of the MORE Act.

• → Senate majority leader Chuck Schumer supports the cannabis administration and opportunity act.

• → Chuck Schumer & Cory Booker stand in opposition to the SAFE Banking Act passing.

Looking forward…

The inability of the democratic party to achieve a consensus on the right course of action to legalize cannabis is undermining any & all progress underway to achieve federal legalization.

To successfully resolve this standstill, one key question needs to be answered — is the democratic party willing to accept moderate reform for cannabis and use this as a stepping stone for future reform?

Or is the democratic party willing to risk gaining nothing, in favor of achieving much broader legislative reform for cannabis?

Our Take

With the republican party strictly in favor of keeping cannabis illegal — until such a point is reached where the democrats can present a united front, nothing will change in the United States.

I empathize with the desire to prioritize social equity reform over banking reform, however, both issues inevitability need to be resolved, such that it might be time to prioritize the issue that has the highest likelihood of receiving the required support.

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Time For Change In Canada?

Cannabis leaders call for immediate tax reform…

In the three years since Canada legalized cannabis for adult-use purposes, sales have been soaring, however, craft producers are calling for change.

• → In May 2019, monthly cannabis sales reached $50 million CAD.

• → In May 2020, monthly cannabis sales reached $200 million CAD.

• → In May 2021, monthly cannabis sales reached $313 million CAD.

Despite the ever-increasing sum Canadian consumers are spending on cannabis, the issues that plagued the Canadian cannabis industry in its earliest days remain in place.

Leading the charge…

After Canada legalized cannabis, craft producers had to wait many months such that they could participate in the legal industry.

Thankfully, these issues were successfully resolved, however, craft producers still have to contend with some of the highest tax rates for cannabis products in any region where cannabis is legal.

Earlier this month, Dan Sutton — CEO of B.C based Tantalus Labs took to Twitter to share his perspective on how Canada’s cannabis tax policy was damaging small businesses.

“It is no exaggeration that under the current excise regime, craft cultivators and processors across the country are marching rapidly towards insolvency in a systematic way.” 

With an outpouring of support agreeing with Sutton’s criticism of the Canadian cannabis industry — he took the initiative to launch a campaign to raise the issue with lawmakers.

The numbers…

Craft producers in Canada are currently paying as much as 30% of their total revenues in taxes, which is causing many producers to reconsider the viability of keeping their doors open.

“We are watching our peers go insolvent under the burden of excessive taxation, and we want to believe in a future of Canadian cannabis that includes small businesses.”

With average wholesale prices at less than $4.50 CAD per gram, craft producers are still paying $1 CAD per gram of cannabis.

“If craft farmers cannot make a living, we will see the sharp transition of market share to large conglomerates” — Sutton added.

The ask…

The campaign is recommending two policy changes:

• → Remove the $1 minimum per gram tax per gram, and maintain a floating percentage on every gram of cannabis sold.

• → Tax cannabis businesses based on their scale, as is currently the case with the Canadian beer industry.

Looking forward…

On the 17th of October, Canadian policymakers will begin their scheduled review of the Cannabis Act.

In theory, Canadian policymakers could enact the requested changes, however, Health Canada which regulates the industry has emphasized that “limited resources” are available for the review.

Our Take

I commend the action Dan Sutton is taking to bring awareness to this issue, and wholeheartedly agree with his analysis of the situation.

That said, with Health Canada very clearly suggesting that they intend to make little to no changes to the existing policies in place — I remain skeptical that such seismic changes will come into fruition from this upcoming review.

Illinois Cannabis Sales Soar

Adult-use sales in Illinois are on track to surpass $1 billion USD in 2021…

On the 1st of January 2020, Illinois became the 11th State to legalize cannabis for adult-use purposes.

Although ten States moved faster than Illinois — they were in fact the very first state in the nation to legalize adult-use sales by an act of the state legislature, as opposed to voter initiatives.

Medical sales…

The Illinois General Assembly passed the Compassionate Use of Medical Cannabis Pilot Program Act in 2013 which legalized medical cannabis for a very limited number of cases.

This law came into effect in August 2013, making Illinois the 20th state to legalize cannabis for medical purposes.

By October 2020, medical cannabis sales were soaring with over 143,000 qualifying patients have enrolled in the program with medical cannabis sales surpassing $366 million USD in 2020.

Adult-Use Sales…

It wasn’t long until Illinois expanded this access to every adult in the State.

On January 1st, 2020, the first day of legal adult-use sales, over 77,000 customers spent $3.2 million in legal sales at stores across Illinois.

Since then, sales have been soaring with the State well on track to surpass $1 billion USD in adult-use cannabis sales in 2021.

Per headset, Illinois is now just $400K away from surpassing Michigan as the 3rd largest market for cannabis sales in the United States.

Key trends…

Since January, cannabis sales have been steadily increasing, however, the products consumers are purchasing have remained much the same.

• → Vape sales have remained between 25.3% — 27.2% of sales.

• → Pre-roll sales have remained between 6.4% — 7.8% of sales.

• → Edible sales have remained between 12.9% — 13.9% of sales.

• → Concentrate sales have remained between 6.9% — 8.5% of sales.

• → Dried flower sales have remained between 41.8% — 43.3% of sales.

Our Take

It looks very likely that the 11th state to legalize cannabis for adult-use purposes will soon become the 3rd largest cannabis market in the U.S.

That said, with over $40 million of the $121 million in adult-use sales coming from out-of-state visitors last month, it will be very interesting to see how federal legalization could potentially impact this figure.

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In Today’s Issue:

• → Is Aurora Slowing Down? ⬇️

• → LA’s 60K Cannabis Dismissals. ✅

• → A $50M Cannabis Compound. 💸

The Rise & Fall Of Aurora’s Revenue

Why Aurora’s adult-use revenues is declining…

Having destroyed over 400 million grams of cannabis between 2018 - 2020, Canadian cannabis producers are still sitting on over 1 billion grams of dried cannabis flower.

With such a large surplus of cannabis products on the Canadian market, prices are falling and larger producers such as Aurora are feeling this pain.

Declining revenues…

Aurora is not alone in producing too much cannabis.

Whereas initially larger producers such as Aurora choose to blame the slow rollout of cannabis retail stores in Canada, during the same period where adult-use cannabis sales in Canada nearly doubled — Aurora’s adult-use cannabis sales are declining.

What’s causing this decline?

Aurora is pointing the finger at Covid for these declining revenues, however, Canada has seen record cannabis sales throughout this period.

It’s more than likely this decline has much more to do with the increased competition in the Canadian market, as opposed to any alternatives.

This problem is not limited to Aurora with the top 5 producers of cannabis in Canada commanding over 50% of the share of total cannabis sales last year.

In the time since this market share has declined 20% in August 2021 with the top five producers now commanding less than 40% market share.

Looking forward… 🔭

Aurora Cannabis lost $550 million USD from June 2020 — June 2021 an improvement from the $2.59 billion USD they lost the year prior.

While this is undoubtedly an improvement, the level of competition Aurora will face in Canada is only increasing as more craft producers join the legal industry, in addition to big brands such as Cookies coming to Canada.

Additionally, larger producers such as Aurora are not only facing an ever-increasing level of competition from smaller producers — they are also competing against much more specialized operators.

While Aurora has chosen to produce every form factor of cannabis from dried flower, to gummies, beverages, vapes — many of its competitors are focusing on one single form factor of cannabis.

Our Take

Given how early we are in the development of the cannabis industry, it would be foolish to assume that the most successful companies of today will be the most successful companies in 5 years time.

Throughout this period we will very likely see many cannabis giants rise & fall as consumers determine which cannabis products succeed, and which fail.

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Dismissing 125,000 Cannabis Convictions…

LA county once again leads the way in dismissing cannabis convictions…

Having dismissed 66,000 cannabis convictions in 2020, LA is once again moving to dismiss an additional 60,000 cannabis convictions.

Under previous district attorney Jackie Lacey, LA county dismissed 66,00 cannabis convictions that took place before California legalized cannabis for adult-use purposes.

New information…

The previous dismissals were based on information collected by the California Department of Justice.

The new district attorney George Gascón said his office was able to identify tens of thousands more eligible cases by combing L.A. County court records.

“Dismissing these convictions means the possibility of a better future to thousands of disenfranchised people who are receiving this long-needed relief.

It clears the path for them to find jobs, housing and other services that previously were denied to them because of unjust cannabis laws.”

Gascón has been a very public proponent of ending the war on drugs due to the outsized impact it has on minority communities & people of color.

In his previous role as the district attorney of San Francisco, he dismissed close to 9,000 cannabis convictions that were processed before the legalization of cannabis.

Leveraging technology, Gascón led the charge on a partnership with Code for America — a nonprofit organization that developed an algorithm to analyze county data and identify cases eligible to be cleared.

Who this helps…

An estimated 20,000 of the 60,000 of the cannabis convictions dismissed under Gascón’s new orders were felony possession or cultivation of cannabis.

It remains unclear how far back this new case review went, however, when working as the district attorney of San Francisco, Gascón overturned cannabis convictions dating to the mid-1970s.

Our Take

Any day whereby we are discussing the actions being taken to rectify the wrongs of the prohibition of cannabis is a day worthy of celebration.

Looking forward, this number could seem small in comparison to the number of cannabis convictions that could be dismissed if the MORE act were to receive the required support.

NBA Star Chris Webber Goes All In On Cannabis

The 5-time NBA All-Star is opening a $50 Million USD cannabis compound…

Having won every possible award on the court, basketball star Chris Webber is now turning his attention to cannabis.

Earlier this year, Webber partnered with Jason Wild of JW Asset Management & Chairman of TerrAscend when they launched a $100 million cannabis fund to invest in business and brands in the Black community.

Webber Wellness…

Next on his list is Webber Wellness — a cannabis compound in his home city of Detroit, Michigan.

The compound, which is currently an old factory, is owned by Players Only Holdings, a business co-founded by Webber and entrepreneur Lavetta Willis.

To transform the 9-acre industrial site into Webber’s vision they are investing $50 million to build this cannabis compound.

"This is my biggest priority in life," Webber said.

"I've seen who (Willis) and I have helped across the country and the lives that have been disrupted by cannabis. 

Hopefully, we can do a little bit of repairing. Hopefully, we can help the city."

The compound will be home to an array of different activities, including:

• → Cookies University which is a job training program run by Cookies.

• → A 60,000 square foot cultivation facility run by Gage Growth.

• → An 8,000 square foot Players Only cannabis retail store.

• → An on-site cannabis consumption lounge.

Additionally, Weber said that record expungement offices will also be included in the facility for those who are in need of services.

Timelines…

Webber started Webber Wellness, the parent company in 2015 after teaming up with his longtime business partner Levetta Willis.

Looking forward, they aim to open the cannabis retail store by March 2022 with the 60,000 square foot cultivation facility open within 18 months

They anticipate opening the lounge within 8 months in what is only the first phase of what will total a $175 million investment in his home city of Detroit.

“I want to be the shining jewel of cannabis, I want us to be the example of diversity, the example of a village of people that have stayed and made a decision to help a city.” — Webber said.

Beyond Detroit, they plan on opening 10 Players Only cannabis retail stores across the U.S. over the next two years.

Our Take

I commend the action Chris Webber, Jason Wild &  Lavetta Willis are taking to establish this cannabis compound such that more people will have the opportunity to participate in the growth of the cannabis industry.

Whereas many people have spoken about creating a more “equitable cannabis industry” this trio are actively investing their capital to ensure this.

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In Today’s Issue:

• → Medical vs Adult Use. 💰

• → Criminalizing Cannabis. ❌

• → The Impact Of Legalization. 💡

Medical-Use vs Adult-Use Cannabis

New data examines what happens when regions allow adult-use sales…

A common concern from conservative politicians is that legalizing cannabis for medical purposes results in a greater acceptance of cannabis which in turn leads to a further loosening of the laws.

Truth be told, this perspective is a very common pattern we are now seeing in the cannabis industry today — especially in North America.

The pattern…

Once a region has gained sufficient support to legalize cannabis for medical-use, the next logical step is to do so for adult-use purposes.

In California — the very first state to legalize medical cannabis, this process took 20 years to complete.

We are also seeing a compression of this timeline with Illinois having legalized medical cannabis in 2013 and then adult-use sales in 2019.

Better yet, earlier this year South Dakota became the first state to legalize cannabis for both medical and adult-use purposes on the same day.

What happens when….

Per Headset, when a region legalizes cannabis for the adult-use market — the region experiences very significant growth in total cannabis sales.

• → Cannabis sales in Illinois have increased more than 3x from $39.2M when they began in January 2020 to $127.8M in July 2021.

• → Cannabis sales in Michigan have increased more than 10x from $9.8M in January 2020 to $115.3M in July 2021.

In Michigan, medical sales grew some 75% from January 2020 to July 2021.

During this time, the percentage of cannabis products purchased from the medical market has been crashing relative to adult-use sales.

This same trend has been impacting the cannabis industry in Illinois with medical sales steadily declining relative to adult-use sales, reaching an all-time low of less than 21% in July 2021.‍

‍The good news is that this isn’t a winner takes all market with many medical patients continuing to source products from the medical market.

Looking at two of the most mature cannabis markets in the world — Colorado & Oregon, medical cannabis sales as a percentage of overall sales declined significantly in the first five years, however, they have since leveled out.

• → Oregon's medical sales have stayed between 8-12% of total sales each month for the last 18 months.

• → Colorado's medical cannabis sales have stayed between 18-20% for the past year.

Our Take

The pattern we are seeing whereby a region first implements a medical market, followed by an adult-use market makes perfect sense.

Cannabis being legalized for medical purposes recognizes the medical value of cannabis, and this paves the way for a much more honest conversation when it comes to commencing adult-use sales.

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Washington Wants A Clean Slate

Having prevented dozens of people with criminal records from working in cannabis, Washington wants to right this wrong…

Having sought to suppress adults’ ability to access cannabis products for decades, on the 6th of December 2012, Washington became the first U.S. state to legalize cannabis for adult-use purposes.

A clear constraint…

This victory was hard-won, however, despite this progress issues remained.

When the prohibition of cannabis was in full effect it disproportionately impacted people of color.

Still, Washington thought it wise to prevent these people from working in cannabis.

Close to a decade later, law markers are finally seeking to address this issue with a new rule set to go into effect early next month that removes some of these restrictions.

The past vs the future…

For the past 9 years, having a criminal record could prevent someone from successfully obtaining a cannabis license.

Recent “misdemeanor convictions” also counted against applicants under the old rules.

Applicants could also be denied for any old misdemeanor or felony convictions they failed to disclose when applying.

As of the 2nd of October 2021, a serious felony conviction within the past 10 years will trigger an in-depth review of a person’s application.

That said, the rules no longer state that these people will be denied licenses.

Moving forward, one minor felony won’t be enough to hold up a person’s license application.

What the numbers say…

Today, roughly 1,800 licensed cannabis businesses operate in Washington.

Since the start of Washington’s legal cannabis market, 43 people have been denied cannabis business licenses due to their criminal history background check, however, 77% of those applicants were white.

Without having an abundance of resources there is said to be a widespread sentiment that people with criminal convictions were discouraged from ever applying for a cannabis license.

Per the Liquor and Cannabis Board in Washington, only 1% of the licensed cannabis cultivation and processing businesses in Washington are majority-owned by black people.

Even though close to 4% of the state’s overall population is black.

Making progress…

The good news is that Washington wants change.

In 2020, Washington lawmakers approved a social equity program that will award the 39 unused cannabis retail licenses to applicants from communities & neighborhoods disproportionately targeted by cannabis enforcement.

Last week, the task force approved recommendations, including proposing a formula to help determine who would qualify for the 39 licenses reserved for communities harmed by the war on drugs.

The task force also recommended that a portion of cannabis tax revenue go towards helping successful social equity applicants launch their businesses.

Lastly, they suggested making it easier for those applicants to find business locations by allowing them to operate closer to facilities such as transit centers, libraries, and arcades.

Our Take

Why would we seek to sideline those who possess the expertise to help grow the cannabis industry?

In order for the cannabis industry to become the best version of itself, we would do well to make it as easy as possible for those with expertise in cannabis to join the legal cannabis industry.

The Impact Of Federal Legalization?

Examining the potential impact of federally legalizing cannabis in the U.S…

As the federal legalization of cannabis looms in the U.S — what’s the potential impact of this reform for existing operators?

Per Politico two in three Americans now live in a state that has approved the sale of cannabis products for adult-use purposes.

Despite the fact that cannabis is only legal for all adults in 18 States and the District of Columbia.

The current efforts…

The Senate majority leader Chuck Schumer is in favor of making very significant changes when it comes to cannabis.

While social equity is a key area — they are also in favor of regulating the cannabis industry on a national level.

This would likely allow for interstate commerce.

Allowing brands to scale much faster with the current regulatory environment making it unnecessarily complex and expensive to build a cannabis brand with national distribution.

Cannabis farmers from the Emerald Triangle in California could suddenly ship their products anywhere in the country — including places where it’s more expressive to cultivate cannabis.

This presents a big opportunity as cannabis is currently being cultivated in many regions where it does not naturally grow well outdoors.

“If the [Schumer] bill is passed, with that current language there that really doesn't give the states the authority they need to keep their markets intact, then I think we see a race to the bottom,” Jeremy Unruh, vice president of regulatory and public affairs at PharmaCann said.

With Washington having residency requirements to receive a license, it will be interesting to see how these two systems can co-exist.

Looking forward

There has to be an alignment between the federal lawmakers and the states that have already proactively created an adult-use cannabis market.

Each with its own unique regulations.

This legislative change is inevitable, albeit the exact timeline remains unclear.

Our Take

Right now there are competing versions of what the immediate future will look like for cannabis in the U.S, and in the coming months, we will obtain clarity as to which version will succeed.

Either way, we will continue to see cannabis sales increasing as more states move faster than the federal government.

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In Today’s Issue:

• → Record Sales For 2021. 🔮

• → Cannabis Media M&A. 💻

• → Bankrolling Cannabis. 💸

31 Billion USD Cannabis Sales

A new report highlights the explosive growth in cannabis sales globally…

Global cannabis sales are reaching record highs.

With several states already having legalized cannabis in 2021, total cannabis sales are surging.

BDSA predicts global cannabis sales will eclipse $31 billion USD this year.

This marks a 41% increase vs the total cannabis sales in 2020.

The United States…

Total cannabis sales in the U.S are on track to surpass $24 billion USD in 2021 — marking a 38% increase vs 2020’s sales.

In established markets such as California, total cannabis sales have increased 25% in the first half of 2021 versus 2020.

In new markets such as Illinois and Massachusetts total cannabis sales have increased over 2x in the first half of 2021 versus 2020.

“New markets, both medical and adult-use, are developing at a faster pace than observed in the past, and states are transitioning from medical only to fully legal in a shorter time frame.”

With a combined population of over 32.2 million people, several states are on track to commence selling cannabis for adult-use purposes.

• → Virginia: 8.53 million people.

• → New York: 8.42 million people.

• → South Dakota: 884,659 people.

• → New Jersey: 8.88 million people.

• → New Mexico: 2.09 million people.

• → Connecticut: 3.56 million people.

In Canada & beyond…

In Canada, they predict sales will total $4 billion USD in 2021, reaching $6.7 billion USD by 2026.

• → In May sales reached $247 million.

• → In June sales reached $251 million.

• → In July sales reached $267 million.

BDSA estimates that Ontario, the largest cannabis market in Canada with a population of 14.57 million people will lead this charge — with 2021 sales on track to exceed 2020 sales by over 85%.

International…

With medical sales growing, international sales will reach close to $1.7 billion USD in 2021 — on track to reach $7.9 billion USD by 2026.

These international sales will largely be driven by the medical cannabis markets in Europe such as Germany, and the U.K with Mexico also on track to establish an adult-use cannabis market.

So far, Mexico’s Supreme Court has decriminalized cannabis nationwide for adults, however, legal products are still unavailable to purchase.

Looking forward…

The analysts predict global sales will reach $62.1 billion by 2026, representing a compound annual growth rate of more than 15%.

They predict over 76% of these sales will occur in the U.S. where sales are estimated to surpass $47.6 billion by 2026.

Our Take

Cannabis is currently federally legal for adult-use purposes in just 2 of the 190 nations.

The cannabis industry in North America is growing very quickly, however, on a global basis cannabis is really just getting started.

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Cannabis Media M&A Continues

Another media company is acquired in cannabis…

One of the key terms to describe the cannabis industry in 2021 is consolidation.

In the first 6 months of this year, billions of dollars have been spent as cannabis producers seek to acquire each other — as they bid to become the largest cannabis producers in the world.

Expanding to media…

A very large percentage of these dollars have so far been spent acquiring cannabis brands and cannabis producers, however, an emerging trend we are watching is M&A in cannabis media.

• → At the beginning of August, Prohibition Partners acquired the B2B cannabis industry publication Business of Cannabis.

• → At the end of August, Fire&Flower announced its plans to acquire the B2C media company Pot Guide for $8.5 million USD.

• → This week, Crain announced its acquisition of Green Market Report.

What’s fueling this?

As more & more nations legalize cannabis — there’s an ever-increasing level of attention being paid to the cannabis industry.

With this, established B2B publications such as Crain Communication who has over 650 employees are simply seeking to add cannabis to the existing portfolio of industries they cover.

With these larger players entering the industry, smaller companies can join forces to compete with these larger companies.

Fire&Flower is also aggressively acquiring media assets such that they can in turn leverage these assets to drive customers to its stores.

Our Take

As the level of interest in cannabis continues to grow there’s going to be more attention paid to publications covering both cannabis as a product, and cannabis as an industry.

With this being the case, I foresee a continuation of this emerging trend as cannabis media companies choose to join forces with competitors — or simply become part of a bigger portfolio of media assets.

The Banks Working With Cannabis

A new report highlights the list of banks willing to work with cannabis companies…

As politicians debate granting U.S cannabis companies full permission to work with banks, a new report reveals an increasing number of banks are already working with cannabis companies.

What the report reveals…

As of the 30th of June 2021, there were 706 financial institutions that had filed reports stating they were actively serving cannabis clients.

This marks a small increase from the 699 financial institutions working with cannabis companies at the beginning of this year.

Right now certain politicians in the U.S are pushing for legislative reform such that banks can work with cannabis companies without fear of consequences.

Rising and falling…

2020 saw a significant drop in the number of banks and credit unions working with cannabis companies from 2019, however, this figure has been steadily climbing in 2021.

One potential explanation for this in 2020 is that the agency stopped including hemp-only (CBD) businesses in its quarterly reports since the crop was federally legalized under the 2018 Farm Bill.

Looking ahead…

A growing list of politicians are working in unison to prevent lawmakers from passing cannabis banking reform in the U.S.

Instead of accepting this milestone, these political leaders have maintained their position that prioritizing banking reform over social justice when it comes to cannabis is simply unacceptable.

“I will lay myself down” to block any other senators who seek to pass marijuana banking legislation before the body approves comprehensive cannabis reform. — Cory Brooks.

Although this language doesn’t exactly inspire confidence that the SAFE banking ACT will receive the required support to become law, the chief sponsor of the SAFE Banking Act remains optimistic.

“I think the fifth time is the charm”

Our Take

It’s interesting to see how many banks are still willing to work with cannabis companies, despite the potential consequences they face.

With the Democratic party conflicted as to which cannabis regulations should precede the other — these banks are offering cannabis companies a much-needed service in the interim.

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