WeedWeek
BUSINESS
   

A Rising Tide Lifts All Boats

block.alt_text ? block.alt_text : ''
Courtesy of Getty Images

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
block.alt_text ? block.alt_text : ''
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

block.alt_text ? block.alt_text : ''
Courtesy of Getty Images

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

Quick Hits

  1. Would marijuana by any other name sell as sweet? Not certainly.
  2. 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.
  3. 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.
  4. 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.
  5. CWCBE announced its 2019 Expo dates and the trade show’s new tech pavilion.

POLITICS
   

CalPERS Rejects Tobacco, Embraces Marijuana Stocks

block.alt_text ? block.alt_text : ''
Photo by Steven Pahel on Unsplash

The California Public Employees’ Retirement System is the largest public fund in the nation and it doesn’t invest in tobacco. But CalPers does see a future in pot.

  • CalPERS‘s third-quarter filing to the SEC revealed that it owns 1,617 shares of Tipray stock.
    BARRON's

Laggardly Fresno Wades Into MED

After months of debate, the Fresno City Council, long opposed to cannabis sales of any kind, ushered ahead cannabis business regulations that could allow many as two medicinal dispensaries in each council district andestablish “hubs” for commercial activities such as cultivation, manufacturing and distribution along two of Fresno's main highways.
Fresno Bee

  • The council voted to set the tax rate for cannabis businesses at 4 percent for retail businesses and manufacturing.
  • Councilmember Oliver Baines said the council will have to address adult use businesses in Fresno. CLARIFY
  • However tentative, the moves make Bakersfield the largest California city with a ban on cannabis businesses.

Quick Hits

  • California legal weed is only a baby. What’s this creation going to look like, legally, once it comes of age?

New Podcast Episode

WeedWeek Podcast
65. A Very Canadian Pot Scandal with Jesse Staniforth

Jesse Staniforth, Editor of WeedWeek Canada, updates Alex and Donnell on breaking Canadian stories. There is no lack of scandal: Cannabis giant Canopy Growth fired founder and CEO Bruce Linton and CannTrust, a major licensed producer, is estimated to lose C$350 Million for ignoring the law. New regulations limiting THC in edibles exacerbate the over-packaging crisis. The country continues to battle the illicit market which is now also available online and is known by the cool name "MOMS" (mail order marijuana sites). Plus, Alex and Donnell discuss Jay-Z's partnership with Caliva.

Subscribe on iTunes, Stitcher, or SoundCloud

CULTURE
   

Here’s What Happens When You Take a THC-Enhancement & Hit an ‘Alien Orgy’

block.alt_text ? block.alt_text : ''
Photo by Brian McMahon on Unsplash

According to one shoe-leather reporter—who test-drove the project at a Portland sex club—CannaMojo “isn't just about getting high and getting down in the bedroom.”
CIVILIZED

Quick Hits

Editor Note

A big thanks to the patrons and supporters that make WeedWeek possible.

You can learn more about supporting WeedWeek on Patreon.