A Rising Tide Lifts All Boats
Were it not for a profoundly news-filled White House week, the biggest story in America right now might be our moment’s cannabis watershed. Driving the expectation that the industry is set to explode in 2019 is Congress's passage of the Farm Bill which legalizes hemp and is expected to be signed by President Trump. Big business is licking its lips.
- As well as making hemp legal and setting the stage for nationwide CBD sales, the bill’s cannabi-related language also addresses issues at the border that threaten to hamstring North American cannabis trade and provides a “compromise” clause for ex-felons in the workplace.
- A pulse of California optimism has stretched to the heartland, with Oklahoma drawing thousands of applicants and possession in Michigan becoming legal.
- Potbotic’s David Goldstein forecast in terms that even a landlocked pot naíf can comprehend: "When we look at scales up to 2025, expectations are that the U.S. market will be worth about $100 billion worth of cannabis sales. That’s slightly below beer, and just north of coffee.”
NCIA (Twitter), Green Entrepreneur, WKAD (Michigan), MJBiz
Photo by Ken Treloar on Unsplash
...Yet the BCC's Gift for Ambiguity Keeps on Giving
- Last Friday, some of the most controversial changes in the California Bureau of Cannabis Control’s proposed final regulations went public. The long-awaited regulations—which cover retailers, testing laboratories, distributors, and micro business—concern on-site structures, shared facilities limitations and stacking, a work-around for the acreage cap, which effectively gives a leg up to huge farms.
- In unambiguous industry victories: packaging regulations were amended in accordance with industry wishes; White labeling will be permitted; and delivery services possibly made out best of all when state regulators ruled that services can operate across the state, independent of local sales bans.
- That delivery service win is being cautiously received. "The [Office of Administrative Law] could take into consideration all the threats of lawsuits and remove that section. That’s still extremely concerning," said Jackie McGowan of K Street Consulting.
Mexico’s Farmacias Magistrales S.A. Bought by Aurora Cannabis
Mexico has its first license to import, store, distribute and manufacture cannabis, after Edmonton juggernaut Aurora purchased Farmaccias Magistrates, which owns and operates a pharmaceutical production facility in Mexico City.
- In the makings for four years, the acquisition will be paid for in stock considerations and based on a valuation of Farmacia distribution revenue projections.
- Farmacia's pharmaceuticals production facility is a 12,000 sq. ft. facility in Mexico City. It's licensed for the import of raw pharmaceutical ingredients, including THC and CBD cannabinoids.
- Nationally, more than 130 million Mexicans will have legal access to non-flower Aurora cannabis products containing THC. In Mexico, the import or sale of dried flower products is prohibited.
New Cannabis Ventures
- Would marijuana by any other name sell as sweet? Not certainly.
- Mainstream business has begun to recognize five careers invented by cannabis. Although there’s an argument to be made that there are at least eight of them.
- NuLeaf Project co-owner Jeanette Ward Horton reiterated that capital is the prime barrier to entry for entrepreneurs of color and added that canna businesses hamper themselves when they stay super white. “Diverse business owners are going to be more attuned to, ‘How do I reach consumers like me?’” she said.
- A downside of the nascent CBD frenzy? Companies should prepare to be hit with lawsuits as untested claims in the largely unregulated CBD market finds dissatisfied customers.
- CWCBE announced its 2019 Expo dates and the trade show’s new tech pavilion.