Vol. 6, No. 42 -- June 21, 2019 -- Edited by Dr. Lloyd Covens, DBA
VEGAS PLEDGES $6.1MIL MJ TAXES FOR HOMELESS -- The Clark County Commission has voted to earmark major MJ-tax funding to help homeless families in metro Las Vegas. The $6.1Mil. was awarded to HopeLink of Southern Nevada, HELP of Southern Nevada and Lutheran Social Services of Nevada and is expected to add 594 beds in mostly short-term rentals. Three years ago, Aurora, Colo pledged $1.5Mil from cannabis taxation for improving services to that city's homeless, including opening a "daytime service center" for citizens to shower, clean their clothes, access computers and obtain minor medical treatment.
2019 MJ Growth to Top $15Bil., Despite RMJ Loss in New York With Illinois' passage of a 620-page legislation bill—and the equally important inability for New York to advance a legalization bill – the cannabis industry can be assured of facing a 2020 election year likely to push for RMJ bills in 20 states – either through the legislature – or again showing up on ballots for the November general election. Voter ballot options to support legalized cannabis are certain to appear in Florida, New Jersey, Arizona and Connecticut. RMJ movement through the legislatures will continue in Delaware (likely to have an RMJ bill out of the House), in Maryland, Rhode Island, New Mexico, Hawaii and again in New York.
Hope for passage of a last-minute RMJ bill for New York this week finally fizzled as lawmakers wanted exact language written in with funding for “negatively-impacted communities” – while Gov. Andrew Cuomo wanted instead to name a commission to oversee spending of an estimated annual tax haul surpassing $700Million per year. As the New York session ended , legislators did pass a bill to further decriminalize small MJ possession amounts, and set up rules for prcoessing expungement for over 300,000 low level MJ offenders. Longtime MJ advocate, Rep. Diane Savino (D-Staten Island) was able to push improvements to the states’ medical MJ program. For anti-pot group SAM(Safe Alternative To Marijuana) who spent barely $10,000 on four billboards, it was a sweet victory in the face of major lobbying dollars spent by Drug Policy Alliance, or the estimated $100,000-plus spent on billboards by WeedMaps.
In its’ 7th annual report, “The State of Legal Markets,” BDS Analytics and Arcview Group, project 2019 global cannabis sales will pass $15Bill., growing in 2024 past $30Bil, or a compound growth of 20% per year. The report also predicts the top 10 states who will have the highest grossing consumer demand for both RMJ and MMJ product. California remains number one in that 2024 estimate, despite early post-legalization statewide rules which continue to be plagued by black/gray markets which easily account for two-thirds of all cannabis sales. Here are the top states as projected for total sales of cannabionoid based products (legal cannabis, CBD and FDA-approved CBD medicines) :
Note: Far right column divides total projected sales by state adult population, yielding an estimate of an average annual amount spent on cannabis products by each individual adult in that state. In Florida, there are now more than 300,000 MMJ cardholders; for Michigan, there are over 280,000 MMJ cardholders, over 210,000 is Arizona. Tourism sales are also likely to drive major MJ purchases in Nevada, Illinois and Colorado. Not making the cut, despite their US population in the top 10, were anti-cannabis leaders in Texas and Ohio, both conflicted in failing to pass any meaningful MJ progress in 2019.
Unlike other prior year reports, the new ArcView/BDS report includes the sales of CBD along with the global sale of legal cannabis. Other items reported:
Investment capital raised by cannabis companies more than quadrupled to $14 billion in 2018, according to Viridian Capital Advisors.
Despite a 55 percent decline in 2018 in New Cannabis Ventures’ Global Cannabis Stock Index, the five largest Canadian licensed producers closed out the first quarter of 2019 at a combined market capitalization of $48 billion.
In Canada, which launched adult-use nationwide October 17, 2018, spending on adult-use cannabis is forecast to grow from $113 million in the partial year of 2018 to almost $4.8 billion by 2024.
Each Tuesday for the next 3 months, West420 will present another special segment report on the Colorado implementation of House Bill 1090. This bill will open up out-of-state investments (and ability to go public) into Colorado MJ licensees. To get the reports--and get a seat at the Augusut 15-16 UnLocking 1090, please click the $345 registration option at https://bit.ly/2Jtvv3N
CANNABIS NEWS BRIEFS... After a week of favorable committee hearings on cannabis measures covering vets, small businesses and banking--- the full U.S. House voted 267 to 165 (June 20) to attach a spending amendment supporting key elements of the STATES act. The bill, for the first time, sends a positive signal that Congress wants no interference by the federal government in the activities of state government in their regulation of legal marijuana policies. Another amendment passed earlier, found $5Mil. stripped from the budget of the Drug Enforcement Agency, organized in part by Democrats angry over excessive marijuana targeting.
Cannabis stocks reacted favorably as the majority of stockholders of Acreage Holdings agreed to terms offered in a lock-up (and future acquisition) by Canadian LP giant Canopy Growth Corp. With US federal illegality still in-force, Canopy has agreed to send $300Mil. in cash to the leading US multi-state operator, and an eventual takeover means Acreage is valued at around $3.4Bil. Canopy Growth would retain the right to buy Acreage should the U.S. legalize marijuana federally, or pass a STATEs bill. Last week, Canopy Growth sent shareholder a 200-page summary making the case for why they should vote in favor of the future acquisition. A small set of Acreage shareholders had vowed to vote against the deal, saying it was undervalued given the major multiples placed on multi-state operators.
The Acreage approval may help turnaround a "June Swoon" experienced by some of North America's largest cannabis concerns. Below, the chart from New Cannabis Ventures (www.newcannabisventures.com) tracked a loss of 10 to 18 percent in stock value for the first half of June. NCV founder and lead analyst Alan Brochstein says the market may be concerned with the loosening of company stock floats-- and sudden increased U.S. government securities oversight over several pending deals. Reprinted with permission, C., 2019, New Cannabis Ventures.
The FDA has extended its deadline for comments on their CBD and cannabis in foods data gathering. Persons wanting to provide written comments have until July 18, up from the original July 2nd deadline. -- Hard times for tobacco predicted. Morgan Stanley predicts a decline in tobacco stock values of over 20%, saying major brand-makers are set to lose up to $160Bil in profits. The study predicts todays' 34Mil smokers (or 13.2% of adults) will fall to just 14Mil. by 2030 and then to one percent of adults by 2050. --- The City of Denver has named a former MJ reporter-- Joey Pena-- to the new position of Navigator. Pena is tasked with supporting the city's burgeoning legal cannabis business community, as part of "a concentrated effort to increase Denver's understanding of new challenges that cannabis businesses are facing."
Health Canada has released its long-awaited rules for expansion into beverages and edibles. Some expect the expansion into these new products to more than double the first 7 months of consumer demand, which has only allowed gelcaps, cannabis oils and MJ bud. Gummies, non-alcoholic beverages and low-sugar chocolates will all be allowed for production in any combinations for CBD, THC or other cannabinoids together in new delivery forms. Health Canada said it does not want to control innovative approaches by product makers, but underscored its warning "not to make these products attractive in any way" to children or under 19 year old consumers. The rules also allow flavors to be incorporated into a wide range of vaping products, but will prohibit vape oil makers from adding "sugars, sweeteners or coloring." Starting July 17th, CBD and THC (non-flower) products will be accepted for Health Canada review, and makers can begin selling to North American markets after October, 2019.
Hemp Experts Line Up Full Suite of Standards
Continuing FDA reivew for CBD as a food, supplement or cosmetic, continues to challenge the US hemp/CBD market, but the industry is not standing-still in developing some scientific answers of their own. This week’s webinar on “Why Standards Matter”, heard from US Hemp Authority CEO Marielle Weintraub, highlighting the organizations mandate to support “fit-for-purpose” methodologies when examining tests covering hemp. Facing a “patchwork” among oversight approaches in the 40-plus hemp-supported states (plus a new end-of-year regime expected from USDA), tests for labeling, contaminants, dosing and measuring the 0.3/THC barrier are part of a complex group of standards that Weintraub is capturing.
“If you try to compare this hemp crop to others, there is great variability,” noted GenCanna’s Chris Stubbs, explaining that the farmers all “want to be compliant.” Dr. Bob Kaufman, Shaman Botanicals, feels the industry has to remain vigilant for customer advsere side effects, and says all company’s must be sure “dosing is consistent from day to day.” All panelists want to support ongoing FDA review and monitoring, but see the demand to have USHA certification and other AOAC/AHPA type standards to assist in maturing the booming CBD sector. The webinar was organized by Centennial, CO health-tracing firm, VALIDCARE. For a repeat of the webinar, visit www.validcare.com.
West420 NewsWeekly is targeted to adults 21-plus and is not a solicitation for any cannabis product or derivative. Please share with your colleagues. Serving the cannabis professional since 2014, we appreciate you comments via email to " DrLLoyd@CBOutlook.com" or for back issues, please Visit This Link Mailing Address: TCC - 1660 So. Albion Ste. 309 Denver 80202 https://us8.campaign-archive.com/home/?u=55c0f4f235ecd7cdcc4130097&id=71dd468869
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