Cannabis customer alert – Week of September 6, 2021 | Dentons
In this week’s edition:
- DEA proposes massive increase in cannabis and psilocybin production for researchers
- Ohio campaign initiative to legalize cannabis lifts one problem
- Israeli cannabis company starts trading on NASDAQ
- Merrill Lynch relaxes cannabis investment policies
- And more…
DEA proposes massive increase in cannabis and psilocybin production for medical research – The US Drug Enforcement Agency (DEA) proposes “significant increases” in the production of cannabis and psilocybin for medical research purposes, “which are directly linked to the increased interest of DEA reporters …[for] clinical trial purposes. Taking a more positive tone than usual, the ad says that “the DEA strongly believes in supporting regulated research on Schedule I controlled substances”, citing the need “to study the effects of marijuana by particularly, as necessary steps towards potential Food and Drug Administration approval of new pharmaceutical products. opinion invites feedback to the DEA over the next 30 days.
Federal Court dismisses DEA rescheduling case, but says cannabis reclassification may be appropriate – The Ninth Circuit Court of Appeals dismissed a petition asking the DEA to reconsider whether marijuana is a Schedule I drug under the federal Controlled Substances Act (CSA). The decision was primarily procedural, stating that it would be better for petitioners to pursue other administrative methods before going to court. A concurring opinion in the case suggested that the applicants’ substantive argument had merit, stating: “[I]In an appropriate case, the Drug Enforcement Administration may well be forced to initiate reclassification proceedings for marijuana, given the strength of the petitioners’ arguments that the agency misinterpreted the control law by concluding that marijuana ” currently has no accepted medical uses for treatment in the United States. ‘ The CSA does not absolutely require the exhaustion of administrative remedies, and plaintiffs can request a new hearing or an appeal to the Supreme Court. The Applicant Scottsdale Research Institute had previously some success in a legal challenge to previous DEA actions relating to cannabis research.
from A to Z – The Arizona Department of Revenue reports that nearly $ 1 billion in revenue has been generated this year from adult consumption and medical cannabis. Medical sales are the majority so far, but some predict the ratio could reverse and revenue could reach $ 2 billion by 2024. According to the Arizona Marijuana Industry Trade Association, around 25% of revenue are donated to the community in the form of tax dollars. .
Florida – Planet 13 Holdings, a vertically integrated cannabis company, has announced its entry into the Florida market as a Medical Marijuana Processing Center (MMTC). The company has entered into a $ 55 million cash license purchase agreement with a subsidiary of Harvest Health & Recreation. Florida MMTC licensees are not subject to restrictions on the number of dispensaries or the number or size of growing and processing facilities they may operate.
MRS – Mississippi Agriculture Commissioner Andy Gipson (right) has indicated he does not want to get involved in regulating a medical cannabis program in the state. (Mississippi voters previously passed a medical cannabis initiative, which the state Supreme Court later struck down, but which is now being reconsidered by state lawmakers.) Although Many states’ cannabis is overseen by their agricultural departments, the Mississippi commissioner noted that cannabis is still federally illegal, and that his oath of office requires him to follow federal law. Gipson’s letter to the state attorney general’s office may prompt the office to issue a legal opinion.
new York – The New York State Senate has confirmed two officials from the new Cannabis Management Board. Executive Director Christopher Alexander was previously the Policy Coordinator for the Drug Policy Alliance and helped draft the bill that formed the basis of the New York Cannabis Act that was passed in March. Chairman of the Board Tremaine S. Wright is a former member of the New York State Assembly and lawyer. Both were appointed by Governor Kathy Hochul (D).
OH – Ohio cannabis advocates have been given the green light to begin collecting signatures for a legalization and regulation bill. A panel of those appointed by lawmakers approved the Coalition’s Bill to Regulate Marijuana Like Alcohol as a Single Problem. If the required signatures are obtained, then the proposal will go to the Ohio General Assembly, which will have four months to act before the measure then goes to voters in Ohio. The bill would provide for adult use and medical licenses, possession of 2.5 ounces and home cultivation.
Hemp / CBD
Cannabinol (CBN) is growing in popularity – CBN, also known as cannabinol, is gaining more and more attention as sales increase and new methods shorten production cycle time. CBN products generated $ 16.1 million in sales in California alone in the second quarter of 2021, up 120% from the third quarter of 2020. CBN is often marketed as a sleeping pill, typically in an edible form and sometimes associated with THC. For example, Kiva’s Midnight Blueberrry Camino, a 5-to-1 THC CBN gummy, has been the top-selling edible product in California for the past two quarters. Long exposure to air and sunlight turns THC into CBN in nature, but manufacturers such as FloraWorks have developed a faster oxidation process.
Switzerland plans to ease restrictions on medical and adult use – The Swiss Federal Council recently opened the debate on amending the national drug law to potentially allow Swiss doctors to prescribe cannabis using their own medical judgment. Currently, such permissions are only allowed in rare circumstances, such as cancer and neurological diseases. Also in the near future, on a trial basis, Swiss pharmacies may be allowed to sell products with high THC content to adults over the age of 21, although there are no plans to allow the cultivation to. residence.
Israeli cannabis company InterCure begins trading on NASDAQ – InterCure Ltd (NASDAQ: INCR), a vertically integrated medical cannabis operator based in Israel, began trading on NASDAQ last week. Former Israeli Prime Minister Ehud Barak is the chairman of InterCure, which has partnerships with cannabis brands such as Tilray and Charlotte’s Web, among others.
Panama approves medical cannabis – In a unanimous vote, the National Assembly of Panama approved medical cannabis for registered patients. If President Laurentino Cortizo signs the bill, Panama will be the first country in Central America to legalize and regulate medical cannabis.
Zimbabwe allows medical growers – Zimbabwe has granted 57 licenses to foreign and local entities to cultivate medicinal cannabis. Production has already started on some farms, according to the Zimbabwe Investment and Development Agency. The country legalized medical cannabis in 2018, but has yet to start exporting it.
Merrill Lynch Finds ‘Flexibility’ to Onboard Cannabis Investors – Merrill Lynch Wealth Management announced that it is streamlining the process for including cannabis-related investments, allowing approval to come from a divisional level in “low risk situations”. Previous practice required the approval of a New York-based executive.
Apple, but not Google, allows cannabis sales apps – A recent Politics The change at Apple now allows applications for the sale and delivery of cannabis, provided they are intended for “licensed or legal cannabis dispensaries.” Eaze, among other examples, launched a “fully functional cannabis delivery” iPhone app in July. In contrast, the Google Play Store still has a policy banning apps that facilitate the sale or delivery of cannabis products “regardless of the legality”.
The cannabis-based wet snuff patented by Goodness Growth – Goodness Growth Holdings Inc. announced that it has received a notice of clearance from the US Patent and Trademark Office for its “Cannabis-Based Wet Snuff”. Goodness Growth affiliate Resurgent Biosciences developed the process, which offers a faster onset and bioavailability than edibles, but a slower onset than smoking or vaping.
Medical / Health
Memory – CBD appears to have the potential to improve certain memory loss, according to a study to be published in the journal Behavioral research on the brain. Specifically, the memory loss in lab rats caused by estrogen depletion was completely reversed with the CBD injections.