Texas lawmakers are back in session and some of the bills headed their way have to do with medical marijuana reform. A Cedar Park mother and Texas Original Compassionate Cultivation are working to encourage state legislators to remove restrictions on qualifying conditions and eliminate the THC cap. "The idea that I would give my chi – I mean – my child marijuana, are you kidding," said mother Carissa Barenblat. "That's not something I came lightly…
When the pandemic lockdowns began, people started buying a lot of things. For some folks, it was sourdough bread starters. For others (mostly sadists), it was exercise bikes. And for people in Oregon, it was–to put it bluntly–a metric shit-ton of weed. Oregonians broke their own record, buying more than a billion dollars’ worth of recreational cannabis in 2020, with Multnomah County stoners leading the way, according to data from the Oregon Liquor Control Commission.
“For the first month, business was crazy. It was like people didn’t know how long it would last,” said Laurie Wolf, founder of cannabis edible company Laurie + MaryJane.
Through the long slog of 2020, Wolf watched as her canisters of cannabis-infused fudgy brownies, savory cheese crisps, and almond cakes flew off Oregon’s dispensary shelves. With the November 2020 release of her fifth cannabis cookbook, The Cannabis Apothecary, Wolf had a proposition for these snack-frenzied customers: try making them yourself.
In the last couple of weeks, it has become clearer than ever that the long reaching arms of social media companies have the power to control the way we express ourselves to the public as well as the niche communities we operate in. The chaos on Capitol Hill showed us that no one is exempt from being banned indefinitely, from former Presidents of the United States to everyday keyboard warriors, failure to comply with the terms of service can lead to the same fate.
Though the phenomenon of being banned from social media platforms is becoming more mainstream due to recent events, this is something that has been a reality for the cannabis community for several years now. Many are arguing that these recent bans are an infringement of or inalienable rights to free speech. The fact of the matter is that these social media corporations are private companies and they have the freedom to moderate the content on their platforms however they find fit.
Even though this is nothing new for many cannabis industry veterans, these recent events have resurrected feelings of disdain for the social media giants. This can be difficult for some to understand since now cannabis is fairly deregulated across multiple states nationwide. However, the classic means of marketing implemented by many players in the industry, utilizing social media platforms, served as one of a few ways to promote themselves to masses. And now, after gaining hundreds of thousands of organic followers, it is not uncommon for these companies to suddenly be banned forever from the platform. This completely nullifies the efforts of so many, only trying to help their brand become known.
Despite all the heartache caused by the powers at be of these social media giants, it is quite clear that we are on the brink of widespread cannabis reform. There is always the potential of federal legalization looming in the background. The day that cannabis is accepted federally is the day producers in the industry can rest assured their efforts in reaching their audience is safe.
It’s time for your Daily Hit of cannabis financial news for January 25, 2021.
On the Site
RLX Tech
An e-cigarette brand in China calledRLX Technologyraised $1.4 billion by offering 116.5 million ADSs at $12, above the range of $8 to $10. At the pricing, the company commanded a market value of $18.6 billion. Shares spiked and were lately selling at over $25 with the symbol RELX and now has a $49 billion valuation.
Valens
The Valens Company Inc.(TSX: VLNS) (OTCQX: VLNCF) entered into an agreement with ATB Capital Markets Inc. to purchase 17,080,000 units at a price of C$2.05 per Unit for gross proceeds of C$35,014,000. Then following that announcement,Valenssaid it was buying LYF Food Technologies Inc. in a cash and share transaction for C$24.9 million, plus up to an additional C$17.5 million in consideration upon the business achieving certain earn-out EBITDA milestones. Valens said in a statement that the LYF Acquisition is expected to be accretive in 2021, and if all of the Milestones are met, the transaction represents an approximate ~4.2x multiple on the last milestone achieved. LYF is an edibles manufacturer based in Kelowna, British Columbia with expertise in novel product creation, white label manufacturing, and infusion technologies.
Harvest Health
Harvest Health & Recreation Inc.(CSE: HARV, OTCQX: HRVSF) is getting a lift in its stock after the company announced the closing of a sale-leaseback transaction with Innovative Industrial Properties, Inc. (NYSE: IIPR) that will bring the company roughly $35 million. Harvest sold an industrial property totaling approximately 292,000 square feet for $23.8 million. The company also noted on Friday that it began adult-use sales in Arizona. The stock rose by over 8% on Friday to lately sell at $3.40.
Along with the sale of the property, Harvest entered into a triple net lease with IIP. Harvest said it plans to continue to operate the property as a licensed cultivation and processing facility and expects to recover up to approximately $10.8 million in tenant improvements from IIP.
PSYK
This week the firstpsychedelic stock ETF(exchange-traded fund) will begin trading on the Canadian NEO exchange under the ticker PSYK on January 27. The base currency will be Canadian dollars. The ETF will be managed by Canadianfinancial services companyHorizons ETF Management and it will be focused on the emerging psychedelics opportunity led by life science and pharmaceutical companies. Horizons noted that a growing body of clinical research has demonstrated the potential use of psychedelic compounds, such as psilocybin and ketamine, as treatment for mental illness, depression, addiction, post-traumatic stress disorder (PTSD), and other medical conditions. As a result, there is a growing number of public companies listed in North America that are focused on the development of therapeutic solutions using psychedelics.
SCC
TheSustainable Cannabis Coalition(SCC) has been created by a diverse group of cannabis cultivation, manufacturing, and technology experts. The SCC said it will work proactively with industry cultivation and manufacturing peers and vendors to promote proven sustainability best practices that can be implemented at scale across the cannabis market.
In Other News
iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCPK: ITHUF) provided updates on: (i) a complaint filed by MPX New Jersey, LLC (“MPX NJ”); (ii) the Company’s previously announced recapitalization transaction (the “Recapitalization Transaction”); and (iii) a class action complaint filed against the Company’s wholly-owned subsidiary, iAnthus Empire Holdings, LLC (“IEH”) for alleged violations of the Telephone Consumer Protection Act (“TCPA”).
The Company is in receipt of a complaint filed in the Superior Court of New Jersey by MPX NJ against iAnthus New Jersey , LLC and iAnthus Capital Management, LLC. MPX NJ entered into a Financing, Leasing, Licensing and Services Agreement with iAnthus NJ in August 2019. MPX NJ seeks a declaratory judgment from the court declaring: (i) MPX NJ is solely authorized to represent its interests to state and local officials and other parties and that Ms. Stavola is principally responsible for the management and operations of MPX NJ; and (ii) that the Services Agreement is currently ineffective and unenforceable. iAnthus disputes the allegations of the Complaint and disputes that it ever engaged in the conduct that was the subject of the temporary restraints in the first place.
Delaware lawmakers should legalize the retail production and sale of cannabis in order to create jobs, increase revenue, and disrupt the illegal marketplace, according to recommendations issued by the state Auditor’s office.
The analysis, issued by the Office of the Auditor of Accounts, estimates that legalizing the commercial cannabis market in Delaware would yield some $43 million in new annual revenue and will create 1,400 new jobs within five years.
“Legalization done right in our view would allow Delaware to establish a policy framework to suppress the black market, curb usage through regulation for minors and collect revenue on a market demand that seems only to be increasing,” the report concludes. “It would also provide a new revenue stream and new potential for economic growth. Additionally, it would eliminate arrests and keep people out of prison. Each year that we fail to capitalize on this opportunity means more money could flow to neighboring states instead of being invested here. It is time Delaware pursue legalizing marijuana.”
State Auditor Kathy McGuiness similarly acknowledged: “The State of Delaware is missing out on millions in tax revenue by not taxing and regulating marijuana – money that could be used to plug budget holes in the immediate term and continue to provide revenue in future years. … With nearby states like New Jersey, Pennsylvania, New York, and Virginia on the cusp of legalization and implementation, Delaware should apply the same consideration. Inaction doesn’t reward us with curbed usage but will prevent us from realizing economic benefits and the $43 million that could be available if Delaware were to devise a responsible regulatory framework. It’s time to legalize it.”
In 2018, legislation that sought to legalize the adult-use market fell just four votes short of passage on floor of the Delaware House of Representatives. Under current law, minor possession offenses are subject to civil fines, while physician-authorized access to cannabis is permitted to qualified patients. Statewide polling finds that 61 percent of Delawareans endorse legalizing marijuana for adults.
Commenting on the state Auditor’s report, NORML’s Deputy Director Paul Armentano said: “Legalizing and regulating the adult-use of marijuana in Delaware will disrupt the illicit marijuana market, end low-level marijuana arrests, and create jobs and new revenue. This has been the experience in other jurisdictions that have enacted legalization — none of which have ever repealed or even seriously considered rolled back their policies. That is because these legalization laws are operating largely as voters and politicians intended, and in a way that the public finds preferable to the failed policies associated with criminal prohibition.”
