Welcome to Four PM — a newsletter that provides the top cannabis industry news from Canada to California.
Since announcing its plans to legalize cannabis, the number of cannabis-related arrests has fallen by 96% in New York. 👏🏻
In Today’s Issue 💬
→ CBN Goes Mainstream. 👀
→ Panama Goes Green. 🙌🏽
→ Progress in New York. ✅
CBN Is Soaring In Popularity
Can CBN replace THC & CBD as the most popular cannabinoid?
For decades, THC & CBD have been by far the most popular cannabinoids.
Today an array of new cannabinoids are being brought to market & one particular cannabinoid is proving to be a smash hit with consumers.
Cannabis & Sleep 💤
In a study performed by NorCal Cannabis in 2019, some 61% of the total 1,529 respondents reported using cannabis to get a better night’s sleep.
In 2019 the global market for sleep aids totaled $78.7 billion USD, and several cannabis companies have been exploring new formulations to help consumers gain a better night’s sleep.
One such ingredient which has been soaring in popularity is CBN — the first cannabinoid ever isolated in the 1940s.
What does the data say?
Per MJ Biz, the demand for products with CBN is reaching record highs.
In California, sales reached $16.1 million USD in Q2 of 2021 — a 120% increase in less than one year.
In Nevada, the total sales for cannabis products with CBN were almost nonexistent this time last year, however, total sales are on track to reach over $6 million USD in 2021.
In both Colorado & Oregon sales for CBN products have skyrocketed with total sales on track to surpass $7 million USD in both states.
Future Outlook 🔭
It’s very important to remember that there are over 140 cannabinoids.
THC & CBD are by far the most popular cannabinoids today, however, it’s unclear if this will remain the case long term.
With several cultured cannabinoid companies aiming to bring products to market this year, our collective inability to gain access to this array of “alternative cannabinoids” will soon be solved.
When this happens, we will finally be able to answer a key question…
Are THC & CBD the popular cannabinoids because they provide the most benefits, or are they simply the most popular cannabinoid by lack of choice?
It’s almost impossible to predict what the cannabis industry will look like one year from now, let alone anything beyond this.
That said, I cannot see a future where alternative cannabinoids don’t continue to command more market share vs today.
Panama Legalises Medical Cannabis
The 4,200,000 people in Panama will now have access to medical cannabis…
In 1923 Panama banned the cultivation of cannabis.
Earlier this week, however, Panama became the 7th nation in Latin America, and the very first in South America to legalize medical cannabis.
Having failed to pass this legislation for several years, this time around the legislation to legalize medical cannabis received overwhelming support with 44 lawmakers voting in favor and zero Panama lawmakers voting against it.
Additionally, this legislation paves the way for a national program to study medical cannabis “to promote research and develop educational campaigns addressed to the population”.
Upon Panama’s President Cortizo, signing his signature the legislation will be signed into law.
Despite having an ideal climate to cultivate cannabis, the measure will allow very limited commercial cultivation opportunities in Panama.
They are instead choosing to rely on imports from other nearby nations.
As per the report, these new regulations establish that only seven licenses will be issued for the manufacture of cannabis derivatives in the region.
These companies will be able to export seeds, plants, and derivatives, however, there will be significant regulatory hurdles in place suggesting that only those with deep pockets will be able to participate.
One step forward….
The new laws make clear that it remains illegal to sell cannabis from one's home or outside authorized establishments, with anyone breaking these laws facing up to 10-15 years in prison.
Any form of advertising cannabis will also be limited to scientific journals.
Any day 4,200,000 people gain access to medical cannabis is a day worthy of celebration in my calendar.
Granted, this is only one small step in the right direction, however, I commend Panama’s willingness to take this initiative, and I have no doubt that many of its neighbors will take notice as the dominos continue to fall.
New York’s Latest Progress
Big news from the Big Apple as Kathy Hochul makes key appointments…
Having legalized medical cannabis in July 2014, New York followed this up by legalizing cannabis for adult-use purposes earlier this year.
An unclear timeline…
Despite the fact that New York legalized cannabis several months ago, anyone living in the state is still unable to purchase legal cannabis products.
The initial timeline set for retail stores to open their doors was spring 2022, however, with Andrew Cuomo stepping down from as governor of New York this timeline looked very unlikely.
This week, however, 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.
An essential step in the development of the cannabis industry in New York.
Tremaine Wright → A former Brooklyn state assembly woman, will chair the Cannabis Control Board and the Office of Cannabis Management.
Chris Alexander → Previously worked with the Drug Policy Alliance is appointed to serve as executive director of both agencies.
Governor Hochul has made it clear that she intends to waste no time in resolving these issues.
“There is no reason why simple announcements in terms of who the executive director is and who the chairperson is were not done in time, but I’m going to make up for that lost time,” Hochul said.
Focusing on social equity…
New York has big ambitions to emphasize social equity when it comes to cannabis.
50% of all adult-use cannabis business licenses in New York will be made available to social and economic equity applicants.
With Alexander having previously worked with the Drug Policy Alliance, and Wright having served as chair of the Black, Puerto Rican, Hispanic and Asian Caucus — it’s increasingly evident that New York intends to make good on this promise.
This is fantastic news for the cannabis industry in New York, and it’s so very refreshing to see a politician make good on their word to prioritize the development of a cannabis market.
I also commend the approach New York is taking to rectify the wrongs of the past by prioritizing social equity in the State.
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Eaze is hiring a VP of Finance.
LeafLink is hiring a Operations Analyst.
Cresco Labs is hiring a Senior Cultivation Manager.
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