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DeSantis Says Marijuana Legalization Will Be On Florida Ballot Following Court Review
Published 4 seconds ago on January 22, 2024
By Kyle Jaeger
Florida Gov. Ron DeSantis (R) says a marijuana legalization initiative will be on the state’s November ballot, predicting a favorable legal outcome for activists in the Supreme Court in the face of a challenge from the attorney general who is seeking to block the vote.
Days before dropping out of the race for the 2024 Republican presidential nomination, DeSantis was asked about the prospect of legalization making the Florida ballot by cannabis lobbyist Don Murphy.
“I think the court is going to approve that,” the governor said at his final campaign event in New Hampshire on Friday, “so it’ll be on the ballot.”
It’s not clear if DeSantis has received some indication from the court about the status of the case, which is still weighing the legal challenge from Florida Attorney General Ashley Moody (R), or if he is just making a prediction based on the issues at play.
Moody has asked the court to invalidate the measure, despite activists collecting nearly one million signatures for ballot placement. The state official previously successfully petitioned justices to prevent a 2022 legalization initiative from receiving voter consideration.
That won’t be the case this round, according to the governor. While he opposes the reform—and pledged not to federally decriminalize marijuana if elected president when he was running—he says voters will get a chance to decide on the issue this time.
The state Supreme Court heard oral arguments in the case against the Smart & Safe Florida campaign last November, but it has not issued a ruling yet. It will need to do so by April 1.
DeSantis also weighed in on another relevant cannabis policy issue last week when he separately told Murphy that he doesn’t believe the federal gun ban for state-legal marijuana consumers is constitutional. Florida’s former agriculture commission, Nikki Fried, brought a lawsuit against the Biden administration over the rule, though the governor did not get involved.
Prior to dropping out, DeSantis also said earlier this month that if elected president, he would “respect the decisions that states make” on marijuana legalization despite his personal view that the reform has a “negative impact.”
With respect to the legalization ballot measure, the Florida Chamber of Commerce released a poll this month showing that the reform proposal enjoys majority support from likely voters—but not quite enough to meet the state’s steep 60 percent threshold for passage.
That said, other previous polls have found that voters are well-positioned to pass the legalization initiative with more than enough support. For example, the University of North Florida put out a survey last month that showed 67 percent of voters back the proposal.
The multi-state marijuana company Trulieve has contributed more than $40 million to the Smart & Safe Florida campaign to date. The state attorney general has accused the company of supporting the measure in order to have a “monopolistic stranglehold” on the state’s cannabis market.
If approved, the measure would change the state Constitution to allow existing medical cannabis companies in the state like Trulieve to begin selling marijuana to all adults over 21. It contains a provision that would allow—but not require—lawmakers to take steps toward the approval of additional businesses. Home cultivation by consumers would not be allowed under the proposal as drafted.
Adults 21 and older would be able to purchase and possess up to one ounce of cannabis, only five grams of which could be marijuana concentrate products. The three-page measure also omits equity provisions favored by advocates such as expungements or other relief for people with prior cannabis convictions.
Earlier this month, a Republican Florida lawmaker preemptively filed a bill that would impose strict limitations on THC potency if the legalization measure is approved by voters.
Meanwhile, Florida officials said last month that they arrested two paid canvassers charged with allegedly falsifying signatures on petitions to put the marijuana legalization initiative on the state’s 2024 ballot.
Economic analysts from the Florida legislature and DeSantis’s office estimate that the marijuana legalization initiative would generate between $195.6 million and $431.3 million in new sales tax revenue annually if voters enact it. And those figures could increase considerably if lawmakers opted to impose an additional excise tax on cannabis transactions that’s similar to the ones in place in other legalized states.
But DeSantis has made clear he would not support the measure regardless of the economic potential. He also recently suggested that the increase in Florida’s medical cannabis patient population is partly due to people using the program as a “pretext” for recreational use.
Last summer, a law enacted by the governor took effect that added restrictions to medical marijuana advertising and manufacturing, prohibiting any products or messages that promote “recreational” cannabis use, while adding more stringent eligibility requirements for workers in the industry.
Additionally, the governor approved a bill in June that expressly prohibits sober living facilities from allowing residents to possess or use medical marijuana, even if the patient is certified by a doctor to legally use cannabis therapeutically in accordance with state law. All other doctor-prescribed pharmaceutical medications may be permitted, however.
He also signed legislation in July banning sales of any consumable hemp products—including cannabis “chewing gum”—to people under 21, an expansion of an existing prohibition on young people being able to purchase smokable hemp.
The organizer of a separate Florida ballot initiative to legalize home cultivation of medical marijuana by patients recently withdrew the proposal, explaining that the campaign raised barely more than $4,000 and couldn’t cover costs associated with trying to qualify the measure.
In the legislature, meanwhile, a Florida Republican senator introduced a bill last month to allow licensed medical cannabis businesses to take state tax deductions that they are barred from claiming at the federal level under an Internal Revenue Service (IRS) code known as 280E.
30 Million on BID at 0002, Breakout?
Lets see what happens, that 600 Million on the BiD .0001 may never get filled !! LOL
Record date was 7/1/23 to 9/30/23, so we are 3 months behind schedule
Really not a big deal, nothing goes on schedule anymore, particularly an audit of financials of a Cash business that is prohibited from using the Federal Banking system, like all cannabis companies, LOL
Pervasip Corp.
PVSP
will spin-off 100% of its wholly-owned subsidiary, Artizen Corporation, as a separate public company, with an anticipated record date between July 1, 2023, and September 30, 2023.
Correct, read the disclosures,
No CD holders of any kind, only Common Stock Holders, no special issues
Heavy restriction will apply to Selling requirements, so probably why we are seeing PVSP CD holders converting and selling the past year.
CD Holders will receive Artizen stock from the Founders 85M shares
New company with 100M Common Shares, will have zero debt or CD's and PVSP shareholders will own 15% of the new company, great deal!!
Pervasip Corp. (OTCPK:PVSP) agreed to spinoff Artizen Corporation on January 17, 2023. Holders of Pervasip's issued and outstanding common shares as of the record date will receive an aggregate of 15,000,000 shares of Artizen common stock, Likewise, holders of Pervasip's Series K and other convertible securities will receive an aggregate of 85,000,000 shares of Artizen common stock.
You have to Own PVSP to get Artizen Shares
PVSP shareholders will receive the same % of shares of Artizen that they hold in PVSP, plus after the spin off PVSP shares holder will keep ALL their shares, but they will now hold 80% of company vs the current 13.5% we hold currently.
The remaining 20% will be continue to be held by the Artizen Founders and they will use their 20% for any and all of future CD or other funding, which is NICE to say the least.
Improved Capital Structure
Pervasip currently has about 5,000,000,000 shares of common stock issued and outstanding, corresponding to about 15% of Pervasip’s fully diluted issued and outstanding common stock. Pervasip additionally has 850,000 shares of Series K convertible preferred stock issued and outstanding, corresponding to 85% of Pervasip’s fully diluted issued and outstanding common stock, as well as various other convertible securities.
Holders of Pervasip’s issued and outstanding common shares as of the record date will receive an aggregate of 15,000,000 shares of Artizen common stock, corresponding to 15% of Artizen’s fully diluted issued and outstanding common shares upon completion of the transaction (in addition to retaining their shares in Pervasip). Likewise, holders of Pervasip’s Series K and other convertible securities will receive an aggregate of 85,000,000 shares of Artizen common stock, the vast majority of which will be subject to lock-up restrictions prohibiting sales prior to Artizen’s realization of material growth and other performance objectives. Artizen will have 100,000,000 common shares outstanding on a fully diluted basis upon completion of the transaction, with no convertible debt or other securities.
Marijuana Advocates Plan ‘Largest Bipartisan’ Push For Federal Reform At Pre-4/20 Event In D.C. As Rescheduling Decision Looms
Published 8 hours ago on January 18, 2024By Kyle Jaeger
A leading cannabis group is planning to mobilize the “largest bi-partisan coalition of cannabis advocacy, industry, and grassroots organizations” that will convene in Washington, D.C. to push for federal reform just ahead of the marijuana holiday 4/20 this year.
Organized by the Last Prisoner Project (LPP), the meeting will feature an ideologically diverse collection of advocates and stakeholders to promote legalization centered in equity, the organization said in a press release on Thursday.
LPP has also released a new memo that’s meant to help guide advocates on how to “leverage” a potential federal cannabis rescheduling decision to fight for more comprehensive reform at the administrative and congressional levels.
A New Poll Finds That Floridians Want Legal Marijuana
The limitations of simple rescheduling were detailed in a Congressional Research Service (CRS) report that was released on Tuesday, explaining how state cannabis markets would continue to run afoul of federal law and certain criminal penalties for marijuana-related activity would remain in force, for example.
For the April 18 event, representatives of multiple national marijuana organizations and trade associations are already set to participate. Those include the Drug Policy Alliance (DPA), Minority Cannabis Business Association (MCBA), National Cannabis Industry Association (NCIA), NORML, Parabola Center, Reason Foundation, Students for Sensible Drug Policy (SSDP) and more.
“We are thrilled to participate in this day of action to underscore the urgency of marijuana justice,” Maritza Perez Medina, director of federal affairs at DPA, said. “At this critical juncture for federal marijuana reform, our communities will not be sidelined.”
MCBA President Kaliko Castille said the organization “is proud to support this day of action because it’s clear that Congress needs to be reminded during this critical election year that ending prohibition has the broad support of the American public.”
“Congress is the only governing body that can truly end this national nightmare of locking humans in cages simply for possessing or growing a plant. Our communities can’t afford to wait any longer,” he said.
The LPP memo, meanwhile, lays out various avenues for equity-focused cannabis reform that could build upon any scheduling change, such as pushing for standalone congressional legislation to facilitate expungements and urging the Biden administration to expand the scope of the president’s mass pardons for cannabis possession offenses by commuting the sentences of people currently serving time for federal marijuana-related convictions.
It also notes that rescheduling could embolden the Justice Department to issue updated guidance on prosecutorial discretion for federal marijuana cases. And it says state officials could additionally leverage existing administrative mechanisms to provide for retroactive relief for past cannabis offenses, which could also be incentivized with a federal rescheduling action.
“We need an all hands on deck approach to ending the unjust war on our community, which means leveraging incremental wins as we build toward bigger, bolder reforms,” LPP Executive Director Sarah Gersten, who authored the new memo, said. “While rescheduling alone will not offer retroactive relief, it would be a historic shift in policy, and we must be ready to push open the door of reform when it happens. We have outlined several ways the administration can achieve real relief and add substance to the President’s mostly symbolic reforms so far.”
Geoffrey Lawrence, research director at the Reason Foundation who recently coauthored an op-ed for Marijuana Moment on the shortcomings of existing state social equity programs, said rescheduling cannabis “might sound like a good idea, but it’s fraught with danger”
“A Schedule III designation would continue to criminalize the manufacture, distribution, or possession of marijuana at the federal level for any products that haven’t received pre-market approval from the FDA,” he said. “Substantively, that means the change would imply no relief from criminal law for existing consumers or licensees, while any new exercise of regulatory authority by the FDA could imperil existing state-regulated markets.”
“All the progress advocates have made over past decades could be erased,” he added. “Full descheduling is the only approach that should be considered for marijuana.”
Meanwhile, the U.S. Department of Health and Human Services (HHS) finally released its full Schedule III recommendation and scientific findings it shared with DEA last week, and HHS Secretary Xavier Becerra said his agency has “communicated” their “position” on marijuana rescheduling to DEA and has continued to offer additional information to assist with the final determination.
DEA has steadfastly maintained it has “final authority” over the matter and can make any scheduling determination that it sees fit, however.
“DEA has the final authority to schedule, reschedule, or deschedule a drug under the Controlled Substances Act, after considering the relevant statutory and regulatory criteria and HHS’s scientific and medical evaluation,” the agency said in a letter to lawmakers last month. “DEA is now conducting its review.”
The statement came in response to an earlier letter from 31 bipartisan lawmakers, led by Rep. Earl Blumenauer (D-OR), that urged the agency to consider the “merits” of legalization as it carried out its review.
DEA has faced pressure on both sides of the marijuana policy debate over recent months, with advocates pressing for a Schedule III decision, or complete descheduling, and prohibitionists urging the agency to keep cannabis in Schedule I.
Prior to the HHS documents’ release, a coalition of 12 Democratic state attorneys general implored DEA to move forward with federal marijuana rescheduling, calling the policy change a “public safety imperative.”
In another letter last month, 29 former U.S. attorneys called on the Biden administration to leave cannabis in Schedule I.
Last month, the governors of six U.S. states—Colorado, Illinois, New York, New Jersey, Maryland and Louisiana—sent a letter to Biden calling on the administration to reschedule marijuana by the end of last year.
Meanwhile, six former DEA heads and five former White House drug czars sent a letter to the attorney general and current DEA administrator voicing opposition to the top federal health agency’s recommendation to reschedule marijuana. They also made a questionable claim about the relationship between drug schedules and criminal penalties in a way that could exaggerate the potential impact of the incremental reform.
Signatories include DEA and Office of National Drug Control Policy heads under multiple administrations led by presidents of both major parties.
In October, Advocates and lawmakers who support cannabis reform marked the one-year anniversary of Biden’s mass marijuana pardon and scheduling directive this month by calling on him to do more—including by expanding the scope of relief that his pardon had and by expressly supporting federal legalization.
Two GOP senators, including the lead Republican sponsor of a marijuana banking bill that cleared a key committee in September, also filed legislation late last year to prevent federal agencies from rescheduling cannabis without tacit approval from Congress.
A coalition of 14 Republican congressional lawmakers, meanwhile, has urged DEA to “reject” the top federal health agency’s recommendation to reschedule marijuana and instead keep it in the most restrictive category under the CSA.
A huge trading opportunity could be coming if the Biden administration reforms marijuana laws
Michael Brush
Opinion: A huge trading opportunity could be coming if the Biden administration reforms marijuana laws
Last Updated: Jan. 17, 2024 at 9:04 p.m. ET
First Published: Jan. 16, 2024 at 7:25 p.m. ET
By Michael BrushFollow
These cannabis stocks and ETFs stand to benefit if the proposed rescheduling of the substance takes place
CURLF
-1.65%
CURA
-3.41%
GTBIF
-1.68%
TSNDF
-4.35%
MSOS
-3.89%
MSOX
-6.85%
The Drug Enforcement Agency (DEA) is being asked to soften its stance on cannabis.
Cannabis stocks advanced sharply to start the week, after the nation’s leading health agency recommended sweeping changes to federal marijuana laws. Still, it’s up in the air whether the proposed changes will ultimately help cannabis companies and investors any time soon — if at all.
Below, I’ll share key investor pros and cons in the major reform proposal rolled out on Jan. 12 by the Department of Health and Human Services (HHS).
Stock traders should take note that there’s a potentially huge and tradable catalyst on the way soon. But first, given the polarizing nature of cannabis culturally and politically, let’s acknowledge the remarkable nature of the 252-page HHS proposal, especially for anyone familiar with the U.S.’s “war on drugs.”
HHS asked the Drug Enforcement Agency (DEA) to soften its stance on cannabis by downgrading it to Schedule III from Schedule I under the Nixon-era Controlled Substances Act. The change would help cannabis companies by boosting cash flow enormously.
To make a credible recommendation, HHS had to find that cannabis has acceptable medical uses and a relatively low potential for abuse and dependence. HHS built its case by citing extensive research and the now-widespread doctor-recommended usage across the country. This new policy proposal would represent a sea change for the federal government.
“It really goes back and covers a lot of the misinformation that has been out there on the effects of cannabis over the last 20 years,” said Boris Jordan, the founder and executive chair of Curaleaf CURLF, -1.65% CURA, -3.41%. “It is easy to forget all the stuff that was being said about cannabis during the war on drugs. Now there is almost a 180-degree flip on the benefits and side effects of cannabis.”
Investing takeaways
Here are the five key investor takeaways from the proposed federal cannabis-law reform.
1. Rescheduling would rain cash on cannabis companies: The reform would boost sector cash flow by exempting companies from an Internal Revenue Service rule called 280E, which bars the deduction of operating expenses against Schedule I drug revenue. “It would release a lot of investible capital into the sector,” Jordan said.
Curaleaf, for example, could expect a $200 million boost, according to Jordan. For context, the company reported $47 million in operating cash flow and $92.3 million in net losses in the third quarter of 2023. If rescheduling happens in late 2024, 280E nullification would apply to the whole year, Jordan noted. Any eventual 280E exemption might only apply to medical-use sale revenue, however, which would blunt the benefit.
2. There’s a big short-term catalyst on the horizon: Near term, the next step would come in the form of a proposed rescheduling rule from the DEA. The timing is critical: It has to happen soon for the Biden administration to reap election-year boasting rights, obviously part of the plan here. To clear all the hurdles to get full rescheduling done before a potential administration change in January 2025, the DEA would have to publish its proposed rule by March or April at the latest.
3. A major risk is that HHS invented an entirely new standard to support rescheduling: Change happens slowly in law, so it’s jarring to see that HHS set up a new test for assessing the currently accepted medical use of cannabis. It’s a “newly minted standard,” said Shane Pennington, a controlled-substance regulatory expert and partner at law firm Porter Wright Morris & Arthur.
The new test weighs the level of state-approved medical use. It also considers whether healthcare associations recognize a medical use, and “credible” evidence of a therapeutic effect. HHS found that 30,000 doctors recommend cannabis to 6 million patients, and that there’s an accepted medical use to treat anorexia, pain, and nausea and vomiting related to chemotherapy.
Because this is a new standard, it opens the HHS rescheduling process to legal challenges by cannabis opponents who may question the validity of the new standard. If the DEA ultimately approves rescheduling, cannabis opponents will likely launch more challenges in court. An overhang of uncertainty may persist for investors.
4. Another risk is HHS’s low bar on scientific evidence: This also opens reform efforts to potential attacks. To check the box on scientific support, HHS said it merely needed to see at least “some credible scientific support” for one medical use. Compared to the biopharma gold standard of double-blind random-sample trials, that’s a low hurdle.
Some HHS logic also seems questionable. The department concluded that there’s low potential for abuse, but then cited evidence that nearly a third of non-medical cannabis users consume virtually every day. That seems like a big number for a substance with supposedly low abuse potential.
But cannabis-law experts push back. “Both in thoroughness of the analysis and its tone, this is a very, very substantial document,” said Arnold & Porter partner Howard Sklamberg, another controlled-substance regulatory expert. “The part of the analysis covering the science and medicine would be very hard to challenge. You would have to show the agency was acting in an arbitrary way.” He doubts that will happen. “It would be hard for a judge to say ‘I am going to overturn the HHS science.’” Sklamberg is worth listening to because he chaired the Food and Drug Administration’s Marijuana Working Group, which set FDA cannabis policy.
5. The comment period could drag out: After the DEA drops its proposed rule, there would be a 60-day comment period. But the review process could take longer. “I expect there will be a lot of public participation,” said Pennington. He called the HHS proposal a “target-rich” environment. “There is plenty to argue about, and people are really fired up to engage.” If a robust debate ensues and a lot of experts call for hearings, the approval process could drag out.
Reform timing
Sklamberg expects full rescheduling to be complete by the summer. He reasoned that this should be the Biden administration’s target if it wants to keep cannabis reform off the typically crowded year-end legislative agenda. Pennington is skeptical, noting that the rescheduling process historically has dragged out for as many as nine years.
But these are unusual times politically, so something closer to Sklamberg’s timeline could make sense. It depends in part on how much the administration wants this. U.S. President Joe Biden is slipping in the polls even among young people, which provides motivation. Also consider the following: “This whole process was kicked off by an executive order, which is not normal,” said Sklamberg. “The fact that the White House initiated this process through an executive order shows it is a high priority.”
Stocks and exchange traded funds (ETFs)
For better-quality names, Poseidon Asset Management cannabis investor Morgan Paxhia favors Green Thumb Industries GTBIF, -1.68% and TerrAscend TSNDF, -4.35%. Green Thumb has a strong balance sheet and it’s in growth markets such as Ohio, Maryland, Pennsylvania, Florida and New Jersey. TerrAscend is improving its balance-sheet strength and expanding in Pennsylvania and New Jersey.
I’ll suggest Curaleaf, in part because it’s the company positioning most aggressively for European growth as countries there liberalize cannabis rules. For exchange-traded funds, I own the more liquid AdvisorShares Pure US Cannabis MSOS and the leveraged version, AdvisorShares MSOS 2X Daily MSOX.
Michael Brush is a columnist for MarketWatch. At the time of publication, he owned MSOS and MSOX. Brush has suggested GTBIF, CRLBF, MSOS and MSOX in Cabot Cannabis Investor. He has suggested MSOS and MSOX in his stock newsletter, Brush Up on Stocks. Follow him on X @mbrushstocks.
More: Green Thumb, Trulieve and other cannabis stocks up as much as 21% as details emerge on HHS recommendation to lower drug classification
Forbes: What Would The Reclassification Of Marijuana Mean For The Industry?
Dario Sabaghi
Contributor
Aug 31, 2023,06:00am EDT
The announcement of the call for the reclassification of marijuana's current status has excited industry players, but it hasn't escaped criticism either.
The U.S. Department of Health and Human Services sent on August 29 a letter to Anne Milgram, the Administrator of the Drug Enforcement Agency, calling for the reclassification of marijuana as a Schedule III substance within the framework of the Controlled Substances Act, as first reported by Bloomberg News on Wednesday, August 30.
The DEA confirmed the letter sent from HHS, which will now start its own review.
Marijuana's reclassification is a small step toward full legalization, which would require "de-scheduling" marijuana, meaning the complete removal of the substance from the CSA.
However, moving marijuana's classification from Schedule I—containing high-risk substances like heroin, LSD, and ecstasy—to Schedule III, where drugs like ketamine with lower perceived risk can be legally prescribed, would represent a significant shift for the marijuana industry.
In political terms, the move would give President Joe Biden a partial achievement as he approaches next year's election.
Biden introduced initiatives to mitigate penalties linked to marijuana use in October last year. This included pardoning federal simple possession offenses and encouraging governors to follow suit for state offenses. Furthermore, he requested the HHS secretary and the U.S. Attorney General to assess marijuana's classification, considering its medical applications, abuse potential, safety, and dependence risks.
Moving marijuana to Schedule III would be the most significant federal reform of this substance in modern history. But what would change for the marijuana industry?
Benefits for businesses from marijuana reclassification
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Marijuana operators would have preferred complete descheduling of marijuana, allowing for more flexibility to fully capitalize on the sector's potential.
Patrick Rea, managing director at Poseidon Garden Ventures, stated that full de-scheduling is preferable and likely the most suitable option for marijuana. However, Matt Hawkins, founder and managing partner of Entourage Effect Capital, noted that reclassification could substantially transform the landscape for all legal operators nationwide.
In practical terms, the reclassification of marijuana would mainly impact the taxation of marijuana companies throughout the nation.
Brady Cobb, CEO of Sunburn Cannabis, explained that the reclassification would be a massive step forward, validating the medicinal benefits of marijuana.
"The move will also allow for interstate commerce while removing the draconian effects of section 280E of the tax code," he said.
Under Section 280E of the Internal Revenue Code, the federal law stipulates that businesses involved in trafficking Schedule I or II controlled substances, including marijuana, cannot claim tax deductions or credits. Marijuana's Schedule I current status hinders businesses from deducting essential expenses on their federal tax returns. Essentially, marijuana entrepreneurs are required to pay taxes on their entire revenue without the advantage of using business expenses to lower their taxable income. If marijuana were reclassified as Schedule III, this scenario would change, benefiting marijuana companies.
David Goubert, CEO of Ayr Wellness, also highlights that rescheduling will bring many benefits, including creating further opportunities for medical marijuana research and signaling to the criminal justice system that marijuana is not a high enforcement priority.
In fact, Dennis Curran, CEO of Acreage, emphasizes that there is still much work ahead. However, he acknowledges that the announcement indicates the Food and Drug Administration's recognition, which the HHS recommendation is built upon, of the potential health benefits of marijuana.
"We urge the DEA to follow this science-forward recommendation and to take the next crucial step, giving our industry the resources and validity needed to reach our full potential and drive success," he said.
Boris Jordan, executive chairman of Curaleaf, said that the announcement represents a significant political advancement and added, "It's past time" for political leaders "to listen to the voters on this issue," hoping that the reclassification "occurs promptly."
"We will not stop fighting for legislative reform - which is critical for the protection of employees, patients, customers, and businesses around the country," he said.
The news further triggered a positive response in the marijuana stock market, resulting in significant double-digit jumps for major players. In fact, Federal relaxation of marijuana classification could potentially enable major stock exchanges to list marijuana-related businesses and open doors for foreign companies to sell products in the United States.
Critics on marijuana reclassification
However, the reclassification of marijuana would still fail to address other crucial issues regarding the current status of marijuana in the country, and the announcement of the reclassification of marijuana hasn't been immune from criticism.
In a press statement, the Drug Policy Alliance explained that moving to Schedule III wouldn't adequately tackle the serious harms in communities affected by marijuana criminalization. The CSA's control would keep much of marijuana conduct federally illegal. State marijuana programs, both medical and recreational, would stay federally banned, leading to potential arrests. Noncitizens might face deportation for marijuana involvement. Federal arrests and prosecutions would continue, old arrests wouldn't be expunged, and many would remain imprisoned for marijuana offenses. This would also maintain the denial of federal benefits to those with prior marijuana convictions and impede fair competition between small, minority-owned businesses and larger corporations in the marijuana industry.
The Minority Cannabis Business Association notes in a press statement sent by email that although some see progress in the HHS suggestion to shift marijuana to Schedule III, it's crucial to realize that reclassification won't stop marijuana consumer arrests in prohibition states. During his 2020 campaign, President Biden pledged to "decriminalize" marijuana, a promise achievable solely by fully removing the substance from the CSA.
"We urge President Biden to make good on his promise to end arrests for marijuana and fully remove marijuana from the CSA. This is the only way to ensure equity, social justice, and economic opportunities in the cannabis industry," the MCBA's press statement reads.
NORML deputy director Paul Armentano said in a press statement that federal marijuana policy reform should bridge the gap between federal and state laws. Rescheduling marijuana to Schedule III doesn't effectively reconcile the conflict between state legalization and federal regulations, maintaining the divide between state and federal marijuana policies.
"Just as it is intellectually dishonest to categorize cannabis in the same placement as heroin, it is equally disingenuous to treat cannabis in the same manner as anabolic steroids," he said, referencing the substances listed in Schedule III of the CSA.
The timing of when the rescheduling could take effect remains uncertain. However, according to some experts, it might potentially be implemented in early 2024, a few months ahead of the 2024 Presidential elections.
Rescheduling Decision announcement is imminent !!!!!
Top Biden Health Official In Touch With DEA About Marijuana Rescheduling Recommendation
Published 2 hours ago on January 15, 2024By Kyle Jaeger
The head of the U.S. Department of Health and Human Services (HHS) says his agency has “communicated” the agency’s “position” on marijuana rescheduling to the Drug Enforcement Administration (DEA) and has continued to offer additional information to assist with the final determination.
HHS for the first time confirmed that it had recommended moving cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA) on Friday, releasing a trove of documents it submitted to DEA last year amid a Freedom of Information Act (FOIA) lawsuit initiated by attorney Matt Zorn.
Xavier Becerra, secretary of HHS, told The New York Times in a new interview that his department “communicated to them our position” and “put it all out there for them,” referring to the comprehensive scientific review it conducted and submitted to DEA as part of a scheduling directive from President Joe Biden.
State Governors Urge Biden to Reschedule Marijuana by Year-End for Economic and Safety Benefits
“We continue to offer them any follow up, technical information if they have any questions,” Becerra said.
The status of DEA’s review is currently unknown, though some suspect the release of the cannabis materials in the FOIA lawsuit may indicate the scheduling decision announcement is imminent. Marijuana Moment reached out to DEA for clarification on the timing, and a spokesperson referred the inquiry to the Justice Department, which has not responded to requests for comment.
Congressional lawmakers, meanwhile, have touted the HHS Schedule III recommendation following Friday’s disclosure of the review documents.
“I’m encouraged by this news & urge the DEA to follow this common-sense scientific recommendation to move cannabis to Schedule III,” Rep. Dwight Evans (D-PA) said on Friday. “I continue to support full legalization but this would be a positive action.”
Marijuana reclassification proposed over lower public health risk, documents show
By Fenit Nirappil, David Ovalle and Dan Diamond
Updated January 13, 2024 at 9:45 a.m. EST|Published January 12, 2024 at 8:45 p.m. EST
The Department of Health and Human Services in August recommended that the Drug Enforcement Administration change marijuana’s classification as a Schedule I drug. (Arin Yoon for The Washington Post)
Federal health officials determined marijuana poses a lower public health risk than other controlled substances and offers possible medical benefits before they proposed ending its designation as among the riskiest drugs, according to documents released Friday.
The extensive scientific review illuminates the rationale underpinning a recommendation last summer that marked a significant shift in how the federal government has treated a drug that is legal for a majority of Americans to purchase. This is the first time the Department of Health and Human Services has publicly acknowledged marijuana’s medical use.
The health agency in August recommended that the Drug Enforcement Administration change marijuana’s classification as a Schedule I drug, a designation reserved for substances that have a high potential for abuse and no accepted medical use. The classification has long been a source of criticism that one of the most commonly used drugs is in the same category as heroin and LSD. The DEA has yet to act on the recommendation.
Marijuana is legal for medicinal purposes in 38 states and D.C. Federal officials proposed classifying marijuana as a Schedule III drug, in the same category as substances that can be obtained with a prescription such as anabolic steroids, ketamine and testosterone.
In the analysis conducted by the Food and Drug Administration, officials determined marijuana is less harmful than other drugs. The nation’s overdose crisis has reached staggering proportions, with opioids and other drugs killing more than 100,000 each year.
“Although abuse of marijuana produces clear evidence of harmful consequences, including substance use disorder, they are relatively less common and less harmful than some other comparator drugs,” the document said.
Federal officials previously declined to answer questions about their justifications for recommending rescheduling and released heavily redacted documents outlining their rationale in response to a Freedom of Information Act request filed by The Washington Post. Matt Zorn, a lawyer in Texas, first released the unredacted documents Friday in his newsletter after successfully suing HHS for their release. HHS confirmed the authenticity of the documents.
Federal Scientists Recommend Easing Restrictions on Marijuana
New Your Times
In newly disclosed documents, federal researchers find that cannabis may have medical uses and is less likely to cause harm than drugs like heroin.
Federal scientists conclude there is credible evidence for certain medical uses of marijuana
The agency recommended loosening federal restrictions on marijuana in August based on the scientific review.
Joy Panyanouvong trims marijuana plants.
The Drug Enforcement Administration will have the final say in any changes to marijuana’s classification under federal law. | Eugene Johnson/AP
By NATALIE FERTIG
01/12/2024 09:40 PM EST
The Department of Health and Human Services concluded that marijuana is less harmful than other dangerous drugs and that there is some evidence of its medical benefits in recommending loosening federal restrictions on the drug.
The agency on Friday released a 252-page review outlining the reasoning that the Food and Drug Administration used to come to this conclusion. It states that that “there exists some credible scientific support for the medical use of marijuana in at least one of the indications for which there is widespread current experience in the United States.”
This and the other findings of the review are a major departure in how the federal government views cannabis. For the last 60-plus years, cannabis has been classified as a Schedule I drug — the same as heroin — under the Controlled Substances Act, which means it’s a substance of high abuse potential and no accepted medical use.
The review was conducted at the request of President Joe Biden, who instructed HHS in an executive order issued in October 2022 to look through all available research on cannabis and recommend if the drug should be moved within the list of federally controlled drugs or removed from it altogether. Bloomberg first reported in August that HHS had recommended marijuana be moved to Schedule III, and the release of these documents on Friday confirms that.
The Drug Enforcement Administration will have the final say in any changes to marijuana’s classification under federal law, with a decision expected in the coming months.
The documents were released to cannabis lawyers Matt Zorn and Shane Pennington and published on their blog On Drugs. The documents were released as a result of a lawsuit brought by Zorn and Pennington.
Cannabis legalization has spread rapidly across the country over the last decade. Two dozen states — representing more than half the U.S population — have legalized possession and use for adults, while 38 states have established medical marijuana programs.
The cannabis review was based on eight different scientific criteria, including its potential for abuse, the state of current scientific knowledge and the likelihood of psychological or physiological dependence.
While there are dozens of medical conditions people use cannabis for, the FDA looked at seven: anorexia, anxiety, epilepsy, inflammatory bowel disease, nausea and vomiting, pain and post-traumatic stress disorder.
The review “identified mixed findings of effectiveness across indications.” Some data was inconclusive, some was favorable, and the “largest evidence base for effectiveness exists for marijuana use within the pain indication (in particular, neuropathic pain).”
That’s a big change because marijuana’s position in Schedule I indicated that the federal government believes there is no indication of medical use for marijuana — and this review unequivocally counters that.
The FDA also determined that the public health risk and potential for abuse are lower than other scheduled drugs. The FDA’s review concluded that while 10 percent of substance use disorder admissions in 2020 were for marijuana, the risk is much lower than other dangerous drugs like heroin and cocaine. They decided this after going through numerous databases that keep track of ER visits, overdose deaths, hospitalizations and more.
Similarly, they found that cannabis use disorder — which is defined as psychological dependence — ranges from 10 to 20 percent in people who regularly use cannabis. That’s lower than tobacco, opiates and alcohol.
Up to 40 to 50 percent of people who use marijuana regularly can also experience physical dependence, but the FDA concluded that the symptoms are mild — things like irritability, difficulty sleeping, anxiety and restlessness. Some people also experience depression, physical discomfort, sweating and headaches.
In terms of the scope, duration and significance of abuse, the FDA found that alcohol, heroin and cocaine have the highest adverse consequences, while marijuana ranks lower. Notably, it was in the lowest ranked group for serious medical outcomes such as death.
“Although abuse of marijuana produces clear evidence of harmful consequences, including substance use disorder, they are relatively less common and less harmful than some other comparator drugs,” the review read.
FILED UNDER: HEALTH AND HUMAN SERVICES, FDA, DRUG ENFORCEMENT ADMINISTRATION,
HUGE!!! Marijuana meets criteria for reclassification as lower-risk drug, FDA scientific review finds
By Katherine Dillinger, CNN
3 minute read
Published 9:28 PM EST, Fri January 12, 2024
Marijuana has a lower potential for abuse than other drugs that are subjected to the same restrictions, with scientific support for its use as a medical treatment, researchers from the US Food and Drug Administration say in documents supporting its reclassification as a Schedule III substance.
An employee at the Good Leaf Dispensary measures out marijuana for a customer on the reservation Mohawks call Akwesasne, Monday, March 14, 2022 in St. Regis, New York.
HHS official calls for reclassifying marijuana as a lower-risk drug in letter sent to DEA
Marijuana is currently classified as Schedule I, reserved for the most dangerous controlled substances, including heroin and LSD. In 2022, President Joe Biden asked US Health and Human Services Secretary Xavier Becerra and the attorney general to begin the administrative process of reviewing how marijuana is scheduled under federal law. HHS Assistant Secretary for Health Adm. Rachel Levine wrote a letter to the Drug Enforcement Administration in August in which she supported the reclassification to Schedule III, a list that includes “drugs with a moderate to low potential for physical and psychological dependence” such as ketamine, testosterone and Tylenol with codeine.
The FDA documents, which are posted online, “reflect HHS’ evaluation of the scientific and medical evidence and its scheduling recommendation” to the Department of Justice, HHS said Friday.
The members of the FDA’s Controlled Substance Staff write in the documents that the agency recommends rescheduling marijuana because it meets three criteria: a lower potential for abuse than other substances on Schedules I and II, a currently accepted medical use in treatment in the US and a risk of low or moderate physical dependence in people who abuse it. The National Institute on Drug Abuse concurs with the recommendation.
Although marijuana has a “high prevalence of nonmedical use” in the US, it doesn’t seem to elicit serious outcomes compared with drugs such as heroin, oxycodone and cocaine, the researchers say. “This is especially notable given the availability” of products that contain very high levels of Delta 9 tetrahydrocannabinol (THC), the primary active compound in cannabis.
A view of cannabis plants at the Illicit Gardens production facility in Independence, Missouri, on March 18, 2023. - Missouri, a largely conservative Midwestern state, is the latest to legalize the recreational use of cannabis. The new regulation, approved by voters in a referendum in November, has sparked an economic boom for the "Show Me" state, fueled by thousands of pot smokers from the eight states on its edges, most of which have not legalized the drug. Across Missouri, cannabis sales in February -- when recreational use was legalized -- totaled $103 million, as compared with $37.2 million the month before, according to the state's health department.
The data also provides “some credible level of scientific support for some of the therapeutic uses for which marijuana is being used in clinical practice in the United States,” namely anorexia, pain, and nausea and vomiting from chemotherapy, the researchers say. However, they note that their analysis and conclusions “are not meant to imply that safety and effectiveness have been established for marijuana” that would support its approval for any particular health condition.
Finally, the researchers point out that marijuana withdrawal has been reported in heavy, chronic users – with symptoms that peak within days and decline over a week or two – but not in occasional users.
“The marijuana withdrawal syndrome appears to be relatively mild compared to the withdrawal syndrome associated with alcohol, which can include more serious symptoms such as agitation, paranoia, seizures and even death,” they write. Rather, marijuana withdrawal symptoms are similar to those of withdrawal from chronic use of Marinol and Syndros, two FDA-approved drug products that use synthetic THC, and the magnitude and timeline of marijuana withdrawal are similar to that of tobacco.
Rescheduling marijuana could open up more avenues for research, allow cannabis businesses to bank more freely and openly, and have firms no longer subject to a 40-year-old tax code that disallows credits and deductions from income generated by sales of Schedule I and II substances.
Twenty-four states, two territories and DC have legalized cannabis for adult recreational use, and 38 states allow medical use of cannabis products, according to data from the National Conference of State Legislatures. Since the first adult-use cannabis sale took place in 2014 in Colorado, cannabis has blossomed into a multibillion-dollar industry that has attracted the attention of multinational companies across sectors such as alcohol, agriculture, pharmaceutical and tobacco.
The DEA will have the final authority to make any changes to marijuana’s scheduling, and it will go through a rulemaking process that includes a period for the public to provide comments before any scheduling action is finalized.
CNN’s Meg Tirrell, Jacqueline Howard, Kevin Liptak and Alicia Wallace contributed to this report.
Shareholders will hold 80% of PVSP, vs current 15%!
The New Pervasip
While Pervasip common shareholders of record at the spin-out closing date will collectively receive 15% of Artizen’s common shares in addition to keeping their existing Pervasip common shares, Pervasip’s Series K preferred stock will be restructured immediately after completing the Artizen spin-out to reduce the applicable conversion rights from 85% of Pervasip’s fully diluted issued and outstanding stock to 20%. Importantly, that 20% then will also absorb the full impact of all other Pervasip convertible equity and debt securities. As a result, in addition to receiving 15% of Artizen in the spin-out transaction, Pervasip’s common shareholders will collectively hold 80% of Pervasip’s fully diluted shares immediately after the spin-out transaction instead of the current 15%.
New Artizen will only have 100M Shares, All COMMON Stock!!!
No more special issues, no more CD and NONE will be issued in future!!!
The Founders and all public share holders will hold the same COMMON Stock, total visablility for all investors.
PVSP share holders will receive 15% of the total 100m shares issued which is a higher % than the current PVSP issue.
Plus PVSP shareholders get to keep their current shares plus current shareholders will OWN 80% of the company vs the current 15%.
PVSP will most likely reverse merger with a small public company that has a positive revenue stream and wants to go PUBLIC, this is much much cheaper and faster than using the IPO to become public.
Looking forward to 2024 and beyond!!
The more PVSP you own, the more Artisen Shares you get!!!!
You want more shares of the New Artisen Spin off, they load up on the PVSP shares. You will get the same % of shares in the new company as you hold in PVSP.
NO REVERSE Split for 3 more YEARS so forget that one.
Feds Will Release Marijuana Rescheduling Memo And Related Documents ‘In Their Entirety’ In Response To Lawsuit
Published 14 hours ago on January 11, 2024By Ben Adlin
The Department of Health and Human Services (HHS) has agreed to release documents related to its recommendation to federally reschedule marijuana “in their entirety” amid litigation over a Freedom of Information Act (FOIA) request that was filed by a lawyer last year.
“Good afternoon and thank you for your patience,” a Department of Justice attorney handling the case said in an email to attorney Matt Zorn on Thursday. “The agency has advised that it will release the letter and its enclosures in their entirety.”
Zorn posted a screenshot of the email on his blog, noting that the release could mean that “rescheduling is imminent—or not.”
State Governors Urge Biden to Reschedule Marijuana by Year-End for Economic and Safety Benefits
When the government announces a marijuana rescheduling through a Federal Register notice, he pointed out, it would “attach the letter and its enclosures” to that posting.
Zorn last month obtained more than 250 pages of the rescheduling advisory letter and supporting documents sent by HHS to the Drug Enforcement Administration (DEA) last year, though the vast majority were released only in highly redacted form.
In a phone interview with Marijuana Moment, Zorn said the new development comes after a “little scuffle” with the federal government over the timeline in his FOIA lawsuit. The Justice Department had filed a motion to vacate a deadline for summary judgement that was set for January 18, and while Zorn said he would typically accept such a request, he instead filed an opposing brief and the judge ultimately denied the government’s motion.
He added that, “realistically, the lawsuit could have accelerated” the timing of the government’s scheduling announcement, though it’s also possible that just the letter will be released without DEA immediately announcing a decision in the ongoing scheduling review.
In October, HHS released a highly redacted version of the one-page letter from the health agency to DEA in response to public records requests by news organizations such as Marijuana Moment and lawyers, including Zorn.
Shane Pennington, a lawyer who co-writes the On Drugs blog with Zorn, applauded his colleague’s work in pushing for the documents to be released.
“Matt has demonstrated once again that litigation is a powerful tool for unlocking doors, solving problems, and doing the ‘impossible,'” he told Marijuana Moment in an email. “I’m proud to work with him on On Drugs and so many other projects.”
Broadly, the documents are believed to discuss new scientific information that’s come to light in recent years, which HHS suggests might necessitate rescheduling marijuana.
HHS initially sent the rescheduling memo to DEA in August of last year, reportedly advising the government move cannabis to Schedule III of the federal Controlled Substances Act (CSA), alongside drugs like ketamine and Tylenol with codeine.
With the rescheduling recommendation now in DEA’s hands, many are watching closely for updates.
While the Congressional Research Service (CRS) recently concluded that it was “likely” that DEA would follow the HHS recommendation based on past precedent, DEA reserves the right to disregard the health agency’s advice because it has final jurisdiction over the CSA.
Recently, DEA reiterated in a letter to Congress that it has “final authority” on rescheduling decisions, regardless of the health agency’s recommendations.
“DEA has the final authority to schedule, reschedule, or deschedule a drug under the Controlled Substances Act, after considering the relevant statutory and regulatory criteria and HHS’s scientific and medical evaluation,” it says. “DEA is now conducting its review.”
The agency’s statement came in response to an earlier letter from 31 bipartisan lawmakers, led by Rep. Earl Blumenauer (D-OR), that implored DEA to consider the “merits” of legalization as it carried out its review. That initial letter also criticized the limitations of simply placing cannabis in Schedule III, as opposed to fully removing the plant from CSA control.
Also recently, the governors of six U.S. states—Colorado, Illinois, New York, New Jersey, Maryland and Louisiana—sent a letter to President Joe Biden urging the administration to reschedule marijuana by the end of this year.
“Rescheduling cannabis aligns with a safe, regulated product that Americans can trust,” says the governors’ letter, which points to a poll that found 88 percent of Americans support legalization for medical or recreational use. “As governors, we might disagree about whether recreational cannabis legalization or even cannabis use is a net positive, but we agree that the cannabis industry is here to stay, the states have created strong regulations, and supporting the state-regulated marketplace is essential for the safety of the American people.”
Keep the faith, Artizen is the Real Thing!!!
Real Revenue $16- 20 MILLION in 2024 is my guess
$PVSP Happy New Year! 🎉
Auditors completed the annual inventory audit for WA operations and completed the first such review for Oregon.
While December traditionally is a slower sales month for branded cannabis products, compared to Sep., Oct., Nov. with each month north of $1.3MM in sales, as of January 10, Artizen is off to a great start at already 50% of the high-grossing prior months!
We are just hoping that we will finally get our audit report 🤦♂️
1:00 PM · Jan 11, 2024
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Last quarter results looked good, Latest qtr out in a week
This data is from the last quarter showed improving business fundamentals
Pervasip Announces Third Quarter Financials
Press Release | 10/17/2023
SEATTLE, Oct. 17, 2023 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, and its wholly owned subsidiary, Artizen Corporation, today announced the filing of its unaudited financial statements for its 3rd Quarter ended August 31, 2023.
Key Highlights
60% Gross Margin Improvement: Gross profits for the three months ended August 31, 2023, totaled $1,994,465 compared to $1,257,843 during the same period in 2022, an increase of almost 60%, leading to 2023 3rd quarter gross margins of 45%, compared to 29% for the 3rd quarter 2022. The quarter-over-quarter comparison best reflects the results of the Company’s cultivation investments and process improvements.
Income from Operations increased by 1,131%: Operating income rose to $591,751 for the quarter ending August 31, 2023, compared to $52,312 for the same period ending August 31, 2022.
Slight revenue growth: Consolidated revenues for the 9 months ended August 31, 2023, totaled $11,920,638, compared to revenues of $11,847,517 during the same period in 2022, representing an increase of $73,121, a small increase despite the loss of revenues from the closure of one of the Company’s cultivation facilities.
Cost of goods and services for 9 months ended August 31, 2023, totaled $7,879,869 compared to cost of goods and services of $9,016,889 for the 9 months ended August 31, 2022, representing a decrease of $1,137,020, or approximately 12.6%. With revenues remaining almost even during the same period, this material decrease in cost of goods is due to the successful transition of one of the company’s cultivation facilities, increases in harvest yields stemming from infrastructure and process improvement undertaken during 2022, combined with improved labor efficiencies.
The Cost of Goods improvement can best be seen in the three months ended August 2023, totaling $2,409,891 compared to $3,080,904 during the same period in 2022, a $671,013 reduction, or a 21.8% improvement, while increasing revenue for the same period.
Gross profit for the 9 months ended August 31, 2023, totaled $4,040,769 compared to gross profit of $2,830,628 for the 9 months ended August 31, 2022, representing an increase of $1,210,141, and improving gross margins to 34% compared to 24% during the same period in 2022. The change in gross profit is driven by process improvements, higher yields from ongoing facility improvements, and labor efficiency gains.
EBIDTA improved from 7.2% to 10.3%
For the Nine Months Ended
August 31, 2023 August 31, 2022
Net Income attributable to Pervasip Corp. $ (1,440,785 ) $ (1,027,738 )
Add:
Interest expense 898,751 305,535
Income tax expense 1,320,791 827,531
Depreciation and amortization expense 454,663 745,603
EBITDA $ 1,233,420 $ 850,931
https://www.otcmarkets.com/stock/PVSP/news/Pervasip-Announces-Third-Quarter-Financials?id=417639
Washington state Cannabis Market Rebounding
As in other mature markets, recreational marijuana sales in Washington state have cooled since the record-breaking months of the COVID-19 pandemic.
Another similarity with markets such as California, Colorado and Oregon: Year-over-year growth in the state slowed in 2023.
Washington state sold about $1.13 billion in adult-use marijuana through November 2023, down just slightly from the $1.18 billion it sold during the same period in 2022.
New year may bring big change to federal cannabis restrictions
By Brian Scott Dallas
UPDATED 9:30 AM CT Jan. 04, 2024 PUBLISHED 1:05 PM CT Jan. 03, 2024
DALLAS — Jerry Joyner has seen a lot of changes in the cannabis industry since he got involved with the plant decades ago.
Joyner, a longtime North Texas resident, remembers the days when he had to enjoy a joint in secret. The politics around cannabis were negative and the consequences of getting caught were never good; something Joyner admits he learned firsthand.
What You Need To Know
Analysts and experts in the cannabis industry believe the Biden administration is poised to reschedule the substance to a Schedule III drug on the DEA’s drug schedule
Cannabis is considered fully illegal in only three states, according to the National Conference of State Legislatures, with most offering some medicinal marijuana access, and 24 states allow legal usage and sales for adults
Texas currently only allows low-level THC medical marijuana
“In 1992, I got arrested for having two joints in Collin County,” said Joyner.
While he’s not walking down the streets of Dallas smoking, he no longer hides his passion for the plant. Through his years of traveling and working in graphics, art and advertising, he says he saw the positive impact cannabis had on the health and lives of many people around him. Now, from inside of his Deep Ellum studio, he’s become an advocate for cannabis and the cannabis industry through his on-demand TV network, Weed and Whiskey TV.
“We’re a TV network,” Joyner said with a laugh as he showed off some of the entertainment and informative offerings he and his partners have produced.
Joyner, now known by many as J-Man, recently went into a partnership on a line of low-cost cannabis gummies produced and sold in Texas; something he never thought would be possible after his arrest.
Cannabis, once portrayed darkly in media like the 1936 film "Refer Madness," has come into the mainstream and into a much more favorable light in recent years. Currently, cannabis is considered fully illegal in only three states, according to the National Conference of State Legislatures, with most offering some medicinal marijuana access, and 24 states allow legal usage and sales for adults. Texas currently only allows low-level THC medical marijuana, but like most of the country, has also legalized hemp production.
The 2018 U.S. Farm Bill made it legal to grow hemp in the country as long as it contains no more than 0.3% delta 9 THC, the psychoactive compound in cannabis, on a dry weight basis. This opened up sales of CBD products across the country, and a boom in THC products. Now, specialty shops and some convenience stores openly sell products like delta 8 THC, delta 10 THC, and even forms of delta 9, like the popular THCA. The products have similar, if not the same, effects as the adult use cannabis sold legally in almost half the country—although without the regulatory oversight put in place in those legal cannabis states.
Federal law has remained the roadblock for the cannabis industry in many forms, but big change may appear on the horizon.
Analysts and experts in the cannabis industry believe the Biden administration, after pardoning Americans with federal cannabis charges in late 2023, is poised to reschedule the substance to a Schedule III drug on the U.S. Drug Enforcement Administration’s drug schedule. Cannabis is currently a Schedule I drug, which is defined as drugs with no acceptable use and high probability for abuse, and includes substances like heroin and ecstasy. Schedule III would classify cannabis as having a moderate to low-level potential for dependence and put it in line with medical products like Tylenol with codeine, ketamine and anabolic steroids.
Joyner, who’s had a lot of discussion about the potential change lately, says that the reschedule could be a big moment for the cannabis business. Industry experts theorize the move away from Schedule I could lower the tax burden on legal cannabis businesses and open the doors to better banking options.
The move wouldn’t undo any current federal or state-based cannabis laws, but law enforcement experts say the change will certainly have some effects.
“It’s certainly significant,” said Dr. Alex Del Carmen, Dean of Criminology at Tarleton State University.
Del Carmen said the change in scheduling would serve as an acknowledgment on behalf of the government that cannabis isn’t a huge safety threat. That’s a message, he says, law enforcement has already been getting as a growing number of district attorneys across the country have refused to prosecute many low-level cannabis related crimes.
“Now you’re simply going to have the legal backing for DAs to tell law enforcement, ‘Look, worry about this other type of crime, more serious crime,’” said Dr. Del Carmen.
However, a schedule change wouldn’t mean legal weed in the U.S. Federal and state cannabis laws would still be in place and could still be enforced if leaders in the justice system choose to pursue. Inconsistency in cannabis enforcement would likely remain a present issue.
Industry experts say it wouldn’t do anything to address the inconsistencies between state and federal cannabis laws, inconsistent testing policies for cannabis among private employers, or, Joyner’s big concern, the current lack of product safety for cannabis users.
“All it’s gonna do is help some of the big companies make more profit and be more profitable, but it’s not going to solve that problem we have with the illicit market,” said Joyner.
Joyner said that until cannabis is federally legalized, black-market sales will continue to put risky products into people’s hands. The unregulated nature of the market opened by the 2018 Farm Bill puts the risk of bad products onto legal store shelves.
“It could be done with the stroke of a pen, whether it’s this administration or the next one,” said Joyner.
So, how likely is federal legalization? The topic remains a point of contention at the federal level and in most states. Several lobbying groups continue to speak out against legalizing and further normalization of cannabis. President Joe Biden has remained reluctant to fully legalize it, despite numerous rounds of federal pardons for cannabis crimes. Most of the leading GOP candidates currently in the 2024 presidential race have stated they are against legalization. Vivek Ramaswamy is the only one to speak in favor of legalization.
However, public favorability for legalization has never been higher. The latest Gallup Poll on the matter, released Nov. 8, 2023, shows a record-setting 70% of adult Americans surveyed were in favor of legalizing cannabis—with self-identified liberals approving at 91%, conservatives at 52%, and 64% of those aged 55+ being in favor. That’s a major upswing from 1969 when Gallup first asked about legalization and only 12% of adults said they were in favor.
While public perception continues to change and states continue to take-on the legalization question, could a cannabis reschedule, if it does indeed come, be the catalyst for federal change? Only time will tell.
Joyner said he’s excited to see where the cards lie 12 months from now.
I got 50 Million more in just the past weeks LOL
Don't fall for the BS, the stock is being manipulated and has been for years, and management has called it out several times in past.
What will people say when they take it up? I should have bought more when I had the chance, LOL
Smart Money Building Share Base, LOL Cheap
The more PVSP you own the more Artizen Shares you will get on spinout plus you KEEP all of your PVSP share for new companuy
Tilray Cannabis Delivers Record Q2 Revenue & Profits !!!
Cannabis may be finally turning the corner on Revenue Growth and Profits, lets hope Artizen does the same in a few days!!!
What lowering federal restrictions on marijuana could mean
JANUARY 3, 20245:14 AM ET
HEARD ON MORNING EDITION
4-Minute Listen
The Biden administration is proposing changes to the federal classification of marijuana. NPR's Michel Martin talks to attorney Howard
Sklamberg, who focuses on FDA compliance and policy.
A MARTÍNEZ, HOST:
The Biden administration is recommending the Drug Enforcement Agency significantly lower federal restrictions on marijuana by demoting it from a Schedule 1 to a Schedule 3 drug. Now, the DEA defines Schedule 1 drugs as those with no medical use and a higher potential for abuse, meaning weed was grouped with drugs such as heroin. Joining us now to talk about what these potential changes to federal drug policy actually mean is attorney Howard Sklamberg. He focuses on compliance with Food and Drug Administration policy and served as the agency's top official on a variety of issues, including cannabis. Howard, so legalization advocates have been trying to change the federal classification for decades. What happens if cannabis is approved as a Schedule 3 drug?
HOWARD SKLAMBERG: Good morning. Well, for a lot of purposes, things will not change. In other words, the state programs out there on medical marijuana, the state programs on recreational marijuana will continue. The biggest change is that the tax law will change regarding marijuana companies. And specifically, marijuana companies will, like all other companies, be able to deduct as business expenses items related to marijuana. As right now as a Schedule 1 substance, if you are a marijuana company, you can't deduct as an expense, for example, the costs of the plant and the cultivation and everything else that goes into the business, which is a big effect.
MARTÍNEZ: Do you think the perception would change? I think it's definitely changed in the last few years for sure, but would it make a big difference there?
SKLAMBERG: I think it will continue to change. It has changed, and I think this will accelerate it. It has an important symbolic effect because, you know, what changing from Schedule 1 to Schedule 3 says is the federal government saying, wait a minute, the public health risks regarding cannabis are less than we had thought, you know, for decades. And that does have an important symbolic effect and I think will be used by advocates for further steps in the future.
MARTÍNEZ: Now, recreational use has been legalized in 24 states, and more could join as the issue is expected to appear on a lot of ballots in 2024. How does lowering the federal classification matter if you're driving through a state where marijuana is illegal?
SKLAMBERG: No, it does not. and that's an important thing for people to remember. The overall federal law is still that marijuana is an illegal controlled substance, and the federal government doesn't enforce that, by and large, against possession. But the state laws will remain in effect, and people have to obey the state laws.
MARTÍNEZ: Now, when it comes to the taxes, as you mentioned earlier, does a lower classification mean for national access to study the effects of cannabis?
SKLAMBERG: The ability to do research, clinical research is not really affected by the change in schedule, and the federal government has very much encouraged research into clinical trials and to other uses of marijuana, you know, for years. And I think that's going to continue.
MARTÍNEZ: OK. Now, cannabis business owners are concerned that big pharmaceutical companies might jump in and take over this market. Are we going to start to see maybe gummies and other edibles at our local pharmacies, possibly?
SKLAMBERG: I really do not see that as a risk at all. First of all, the - by changing the scheduling from Schedule 1 to Schedule 3, the overall environment and legal framework for doing research remains the same. And the fact is, for a pharmaceutical company to get an approved drug for cannabis, they have to invest a lot of money into clinical trials, and they have to get an approval for a specific use. So in other words, when you get a drug approved, it's not just, here are gummy bears; use them for what you would like. Our drug approval system is based on evidence related to specific uses of a drug. And the economics did not support that beforehand and I don't think will support that going forward.
MARTÍNEZ: What do you think, Howard, it would take for cannabis to be completely decriminalized? And actually, maybe the first question should be, should it be?
SKLAMBERG: Well, I think it's certainly headed in that direction. And I think that most advocates - and I would agree with them - think you need comprehensive federal legislation on this. I mean, if you take a step back and you were, you know, from a foreign country, and you would say, wait a minute, we have a patchwork of laws. It's illegal federally, but it's not really enforced. There are state laws here and there. There's a need for comprehensive, uniform federal legislation that addresses what is legal and what regulations apply and what safety rules apply.
MARTÍNEZ: Howard Sklamberg is a partner at Arnold & Porter law firm. He focuses on FDA compliance and policy. Howard, thanks.
SKLAMBERG: Thank you very much.
DEA tells Congress it’s considering easing marijuana restrictions
Andrew Solender
DEA Administrator Anne Milgram.
The Drug Enforcement Administration told lawmakers it is "now conducting its review" of whether to soften federal regulation of marijuana under the Controlled Substances Act.
Why it matters: Moving marijuana off the list of Schedule I drugs would mark a significant shift away from federal enforcement of a drug that dozens of states have legalized or decriminalized in recent years.
It would also clear obstacles for the growing cannabis industry, which has struggled to access banking services due to continued federal restrictions.
Driving the news: In a letter to Rep. Earl Blumenauer (D-Ore.) last month, first reported by Punchbowl News on Wednesday, DEA official Michael Miller wrote that the agency has "the final authority to schedule, reschedule or deschedule" drugs under the Controlled Substances Act.
Marijuana is currently a Schedule I substance — which are considered to have the highest potential for abuse and safety risk with no currently accepted medical use — along with drugs such as heroin and LSD.
Blumenauer and dozens of other lawmakers in both parties sent DEA Administrator Anne Milgram a letter in October calling to "end the harmful federal marijuana prohibition and help our law enforcement officers appropriately prioritize public safety."
The backdrop: President Biden in 2022 issued a directive pardoning all prior federal marijuana possession offenses and ordering the Department of Health and Human Services to "review expeditiously how marijuana is scheduled under federal law."
The HHS review, sent to the DEA last August, recommended that marijuana be reclassified as a Schedule III substance, which have accepted medical uses and a low to moderate risk of dependence.
Blumenauer and his colleagues, however, wrote that rescheduling is "an important step in the right direction" but "not sufficient to correct the wrongs of federal prohibition or to meaningfully address the federal-state gap on cannabis policy."
They called for marijuana to be fully removed from enforcement under the Controlled Substances Act.
https://www.axios.com/2024/01/04/dea-weed-marijuana-legal-decriminalize-federal
Congressman’s Marijuana Memo Predicts ‘Productive’ 2024 And Pushes Biden To Embrace Reform Ahead Of Election
Published 1 hour ago on January 3, 2024By Kyle Jaeger
The stage is set for another “productive year” in federal marijuana reform—with lawmakers positioned to leverage “tremendous bipartisan investments” from 2023, while pushing the Biden administration to move further on the issue ahead of this year’s election.
That’s according to the latest yearly marijuana memo from Rep. Earl Blumenauer (D-OR), a founding co-chair of the Congressional Cannabis Caucus who is also marking the 50-year anniversary of his legislative marijuana advocacy work.
The memo details various achievements from the first half of the 118th Congress, including multiple bipartisan cannabis bills and letters, progress on the administrative review into marijuana scheduling and more. It also presents an overview of legislative priorities for 2024, as well as a call-to-action for President Joe Biden to lean more strongly into cannabis reform in the year ahead.
“This was a year for the books, and cannabis reform has been no exception,” Blumenauer, who is retiring at the end of this Congress, said. “Despite challenges in Congress, there are significant steps forward to celebrate as we reflect on the path forward.”
He pointed to the Senate Banking Committee’s passage of a bipartisan marijuana banking bill, the adoption of amendments to appropriations legislation to promote veterans access to medical cannabis and House committee approval of a measure to prevent security clearance denials based on past marijuana use as examples of 2023 accomplishments.
Throughout the year, my Congressional Cannabis Caucus partners and I brought together a broad coalition of members from diverse communities around the country who all agree: it is time for Congress to embrace rational federal cannabis policy,” the memo says.
“Cannabis is a winning issue. With election season nearly upon us and the Biden-Harris Administration completing its formal review of the scheduling of marijuana, President Biden should keep in mind that no one has been penalized by voters for their embrace of cannabis reform,” it says. “President Biden himself owes his victory in Arizona to the young voters who turned out for their marijuana legalization measure.”
The document also notes that Ohio voters overwhelmingly approved a legalization initiative at the ballot in November 2023, and it says Florida is “set to legalize adult-use marijuana next,” depending on the outcome of a state Supreme Court challenge to decide whether it will appear on this year’s ballot.
“Despite dysfunction in Congress, we can accomplish significant reforms in cannabis in 2024,” Blumenauer said. “It is a commonsense issue that can bring people together rather than divide them.”
“In my final year in Congress, and then in the talented hands of the 119th Congress Cannabis Caucus Co-Chairs, we will take bold action to end the failed war on drugs once and for all,” the memo ends.
The stage is set for another “productive year” in federal marijuana reform—with lawmakers positioned to leverage “tremendous bipartisan investments” from 2023, while pushing the Biden administration to move further on the issue ahead of this year’s election.
That’s according to the latest yearly marijuana memo from Rep. Earl Blumenauer (D-OR), a founding co-chair of the Congressional Cannabis Caucus who is also marking the 50-year anniversary of his legislative marijuana advocacy work.
The memo details various achievements from the first half of the 118th Congress, including multiple bipartisan cannabis bills and letters, progress on the administrative review into marijuana scheduling and more. It also presents an overview of legislative priorities for 2024, as well as a call-to-action for President Joe Biden to lean more strongly into cannabis reform in the year ahead.
“This was a year for the books, and cannabis reform has been no exception,” Blumenauer, who is retiring at the end of this Congress, said. “Despite challenges in Congress, there are significant steps forward to celebrate as we reflect on the path forward.”
He pointed to the Senate Banking Committee’s passage of a bipartisan marijuana banking bill, the adoption of amendments to appropriations legislation to promote veterans access to medical cannabis and House committee approval of a measure to prevent security clearance denials based on past marijuana use as examples of 2023 accomplishments.
“Throughout the year, my Congressional Cannabis Caucus partners and I brought together a broad coalition of members from diverse communities around the country who all agree: it is time for Congress to embrace rational federal cannabis policy,” the memo says.
“Cannabis is a winning issue. With election season nearly upon us and the Biden-Harris Administration completing its formal review of the scheduling of marijuana, President Biden should keep in mind that no one has been penalized by voters for their embrace of cannabis reform,” it says. “President Biden himself owes his victory in Arizona to the young voters who turned out for their marijuana legalization measure.”
The document also notes that Ohio voters overwhelmingly approved a legalization initiative at the ballot in November 2023, and it says Florida is “set to legalize adult-use marijuana next,” depending on the outcome of a state Supreme Court challenge to decide whether it will appear on this year’s ballot.
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“Despite dysfunction in Congress, we can accomplish significant reforms in cannabis in 2024,” Blumenauer said. “It is a commonsense issue that can bring people together rather than divide them.”
“In my final year in Congress, and then in the talented hands of the 119th Congress Cannabis Caucus Co-Chairs, we will take bold action to end the failed war on drugs once and for all,” the memo ends.
As the congressman explained, there are a number of potential cannabis policy developments at the state and federal level to watch for in the new year, including the possible completion of the review into marijuana scheduling.
Following a U.S. Department of Health and Human Services (HHS) recommendation to move cannabis to Schedule III of the Controlled Substances Act (CSA), the Drug Enforcement Administration (DEA) is now completing its review before making a final determination.
Senate Majority Leader Chuck Schumer (D-NY) has also recommitted to prioritizing floor consideration of the Secure and Fair Enforcement Regulation (SAFER) Banking Act in this second half of the 118th Congress.
As for the White House, many advocates have appealed to Biden to vocally support ending federal marijuana prohibition, arguing that while his 2022 and 2023 mass pardons for simple cannabis possession represent positive steps, they do not go far enough.
US regulators may loosen restrictions on marijuana
President Joe Biden’s administration is promising to make the biggest shift in federal drug policy in decades by loosening marijuana restrictions.
US regulators may loosen restrictions on marijuana
Scripps News
Dan Grossman
By
Dan Grossman
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Posted: 5:49 p.m. EST Jan 2, 2024
President Joe Biden pardoned thousands of people who were convicted of use and simple possession of marijuana on federal lands and in the District of Columbia at the end of December, in his latest round of executive clemencies meant to rectify racial disparities in the justice system.
The pardon builds on a similar round before the 2022 elections that pardoned thousands convicted of simple possession on federal lands. The administration’s most recent action widens the breadth of criminal offenses covered by the pardon.
The president, in a statement, said his actions would help make the “promise of equal justice a reality.” The move comes as attitudes around marijuana shift nationwide.
In November, Gallup released a poll that shows 70% of Americans nationwide think marijuana should be legalized, the highest number on record. In 2014, when 55% of Colorado voters voted for the state to become the first in the country to legalize marijuana, 51% of Americans nationwide agreed marijuana should be legal.
Since Colorado has legalized marijuana, more than $15 billion of the drug has been sold in the state as of October 2023, according to the Colorado Department of Revenue, and those sales have led to $2.58 billion in tax dollars.
According to the Colorado Department of Revenue, local governments receive 10% of the 15% retail marijuana state sales tax. The 10% is divided among the local governments. Each state appropriates its tax dollars from marijuana differently, but in Colorado the 15% retail marijuana excise tax goes to Colorado public school construction. The excise tax is remitted by the retail marijuana cultivation facility on the first sale or transfer of retail marijuana to any retail marijuana store or retail marijuana products manufacturer. The first $40 million in retail marijuana excise tax revenue collected annually goes to public school construction. Any revenue above that is transferred to the Public School Fund.
The tax money from marijuana sales differs in every state. For example, in Illinois, which legalized recreational marijuana in 2020, much of the tax money from marijuana sales goes to the state’s rainy day fund.
In the most recent election cycle, Ohio became the newest state to legalize the recreational sale of marijuana, making it the 24th state in the country to do so, along with Washington D.C.
Rescheduling marijuana and the next states to legalize:
7 predictions for 2024
author profile pictureBy Chris Roberts, Reporter
January 2, 2024
What’s the right revenue per square foot? What’s a realistic business outlook for cultivators? Get realistic market forecasts, state-by-state insights and benchmarks. Get the 2023 Factbook.
With the cannabis industry eagerly awaiting the U.S. Drug Enforcement Administration’s latest move in the rescheduling process, the new year promises the biggest development in U.S. marijuana policy in 50 years.
If the rescheduling odyssey launched by the Biden administration in October 2022 stays on track, as expected, marijuana will be moved to Schedule 3 of the Controlled Substances Act (CSA) sometime in 2024.
Though it wouldn’t happen overnight, rescheduling would deliver tax reform, as Section 280E of the federal tax code would no longer apply.
That IRS provision has hit state-legal marijuana retailers particularly hard and contributed to money woes elsewhere in the supply chain.
Fulfilling the rescheduling promise might also boost President Joe Biden’s sagging reelection hopes.
But whether tax relief would arrive quickly enough for beleaguered marijuana businesses already struggling because of a variety of state-level factors – falling wholesale prices, a vibrant illicit market, etc. – is another question.
Elsewhere, there’s plenty else to keep an eye on.
The next state to legalize adult-use marijuana must overcome either a court challenge or partisan deadlock.
And on Capitol Hill, Congress is tasked with finally passing marijuana banking reform – which could accelerate the uplisting of cannabis stocks to major exchanges and attract more investment in an otherwise bear market.
But don’t hold your breath.
Below are our cannabis industry predictions for 2024:
1. The Drug Enforcement Administration will propose rescheduling marijuana.
There isn’t much to indicate the DEA will defy the Aug. 29 recommendation from the Department of Health and Human Services that marijuana be moved from Schedule 1 to Schedule 3 of the CSA.
The revolutionary acknowledgement that cannabis has medical value, a determination evidently made thanks in part to data provided by the states, isn’t something DEA has the power to contradict.
That would mean the ambitious administrative rescheduling review launched by the Biden Administration in October 2022 will continue, though exactly what happens next isn’t clear.
Legal challenges of indeterminate length are almost certain.
2. Tax relief will come … eventually.
Rescheduling would mean Section 280E, which prohibits state-legal cannabis businesses from deducting many normal business expenses on their federal tax returns, would no longer apply.
That would mean a brighter future and more money for the $34 billion U.S. marijuana industry.
Beau Whitney, the co-founder of Oregon-based Whitney Economics, estimates the nation’s cannabis retailers will collectively pay an extra $2 billion on their federal returns next spring due to 280E.
In the meantime, some cannabis businesses are already seeking relief from previous years.
Most notable is Florida-based Trulieve Cannabis.
The multistate operator is seeking a federal tax refund of $143 million, arguing that it “believes it does not owe” the taxes it paid over three years.
Whether Trulieve is successful in securing that refund will surely set the tone for other cannabis businesses.
3. Rescheduling might be the only progress at the federal level in 2024.
Congress inched closer than ever to approving long-sought banking reform legislation in 2023 after the U.S. Senate Banking Committee passed the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a markup hearing.
But looking ahead, only 13% of senior congressional aides polled by Punchbowl News believe banking reform will pass in the current 118th Congress, and that’s consistent with other outward signs of deadlock.
Democratic Senate Majority Leader Chuck Schumer hinted in November he’s still wrangling support from Republican senators before he’s comfortable pushing for a full vote on the Senate floor.
And given his opposition as an obscure backbencher, it’s hard to imagine new Republican House Speaker Mike Johnson demonstrating an appetite for marijuana reform, despite earlier versions of SAFER sailing through a Democratic-controlled house.
There are also many cannabis industry players who hope the next iteration of the federal Farm Bill will address the proliferation of hemp-derived competitors across the country.
But state-level restrictions and bans might convince federal lawmakers to pass the buck downward.
4. The next states to legalize marijuana will be … Florida and Pennsylvania.
Oklahoma voters’ rejection of marijuana legalization in March suggested MJ reform had run out of steam.
But the idea that a “red wall” is blocking marijuana in conservative states took a big hit in November, when Ohio voters legalized adult-use cannabis by a comfortable margin.
That would seem to portend well for Florida to be the next state to legalize recreational marijuana.
A legalization measure backed by Trulieve Cannabis is angling to appear on the November 2024 ballot, but there’s a high bar to meet.
Recent changes to the state constitution mean 60% of voters, or a 20-point victory, is required to pass the proposed constitutional amendment.
That also assumes the measure survives a constitutional challenge now before the Florida Supreme Court.
Elsewhere, attention is pivoting to the Pennsylvania Legislature, which in December passed a major expansion of the state’s medical marijuana industry.
Democratic Gov. Josh Shapiro has indicated he’ll entertain any adult-use legalization measure lawmakers give him.
But to date, a familiar partisan deadlock has kept legalization pushes bottled up.
Despite the recent MMJ expansion, Republican leaders in the state Senate say they remain opposed to any legalization measures absent federal reform.
However, with Ohio’s recent turn, five of the six states bordering Pennsylvania have legal adult-use cannabis, which adds more pressure on legislators to act.
While a long shot to take action, Pennsylvania still has better chances than other states in 2024.
But looking further ahead, the success of medical programs in Deep South states such as Louisiana and Mississippi might hint that the next adult-use move will be in a traditionally conservative area.
5. Marijuana reform will be a 2024 presidential campaign issue – for somebody.
It’s not hard to find political watchers, including retiring U.S. Rep. Earl Blumenauer, who believe marijuana legalization played a role in the election of Biden as president in 2020.
With a legalization measure potentially on the ballot in Florida and the first adult-use sales in Ohio currently scheduled to begin in fall 2024, marijuana will be on some voters’ minds.
And if current polling trends continue, a sagging Biden campaign might need to find something exciting to trigger turnout.
6. States will make moves against the illicit market.
New York Gov. Kathy Hochul struck a triumphant tone in December when she announced the opening of the state’s 37th legal adult-use marijuana store.
But it’s an open question whether what Hochul calls the “nation-leading adult-use cannabis industry” can weather what appears to be the biggest and boldest illicit market yet seen in the legalization era.
What is known is that the illicit market must be brought to heel for legalization to work.
Estimates of how many unlicensed marijuana sellers are open for business in New York City alone range from 1,500 to as many as 8,000.
In contrast, when Hochul and Attorney General Letitia James shut down – for good this time, they promised – a notorious unlicensed store in Brooklyn last month, it marked only the ninth such closure.
There’s reason for optimism, as the state’s legal retail capacity is finally starting to expand.
Major multistate operators were given the green light to begin adult-use retail sales on Dec. 29.
But it remains to be seen how effective new retail options will be at steering customers away from the illicit market – or what combination of enforcement and market incentives will curb unlicensed sales.
And the illicit market is still booming in other legacy states, including California.
Regulators, lawmakers and law enforcement are on notice to devise solutions and deliver results.
7. States will either deliver on ambitious social equity promises or reimagine “a fair industry.”
The legal marijuana industry is still struggling to fulfill criminal justice reform vows.
New York went further than most when it promised that small businesses – including operations run by individuals caught up in the war on drugs – would be first in line to sell cannabis legally.
However, those initial plans triggered constitutional challenges. States are now reevaluating how to guarantee disadvantaged groups a role in the legal industry.
It’s clear more needs to be done to make good on that great expectation as social equity programs across the country fend off legal challenges from would-be entrepreneurs who say they’re unlawfully excluded from the opportunity.
Look for lawmakers in Ohio who ended 2023 without promised changes to the voter-approved adult-use legalization measure to propose a lawsuit-proof equity plan that other states could follow – if one can be found at all.
Biden’s administration is poised to make the biggest shift in federal drug policy in decades
By MONA ZHANG
01/01/2024 07:00 AM EST
President Joe Biden’s administration is poised to make the biggest shift in federal drug policy in decades by loosening marijuana restrictions, but the move is sparking blowback from an unlikely constituency: legalization advocates.
They argue that moving marijuana to a lower classification would do nothing to address the federal-state divide in marijuana laws, fail to address the impacts of criminalization, disrupt existing state-regulated cannabis markets, lead multi-billion-dollar pharmaceutical companies to dominate the medical cannabis industry and spur a potential federal crackdown.
Howard Sklamberg, an attorney and former top official at the FDA’s Center for Drug Evaluation and Research, argues those fears are alarmist and misguided. He doesn’t believe the cannabis industry needs to worry about a crackdown if the drug is moved from Schedule I to III under the Controlled Substances Act, as recommended by the Food and Drug Administration after a review of the scientific evidence.
“If you’re going to launch an enforcement initiative against cannabis, why would you start off with saying, ‘Oh, by the way, it’s less of a risk than we thought,’” Sklamberg said in an interview with POLITICO. “You would use your power under Schedule I and go after it.”
CANNABIS
Legal weed takes effect in Ohio as lawmakers scramble to change voter-passed law
BY MONA ZHANG | DECEMBER 07, 2023 12:55 PM
Sklamberg is now a partner at the law firm Arnold & Porter, but he held a variety of leadership roles at the FDA from 2010 to 2017, including stints overseeing compliance and enforcement operations. Sklamberg served as the FDA’s top official on a variety of issues, including cannabis.
Support for marijuana legalization cracked 70 percent for the first time last November since Gallup started asking the question in 1969. The results of the poll were announced the day after Ohio voters made the Buckeye state the 24th in the nation to legalize recreational weed. And 38 states regulate medical marijuana sales.
The Drug Enforcement Administration will have the final say on any change in marijuana’s federal classification. There’s no timeline for when the agency will announce that decision, but Sklamberg believes it’s likely in the first half of 2024.
“Agencies want to get their work done in an election year by the summer,” Sklamberg said. “The DEA could accomplish it by then.”
5 Cannabis Policy Reform Efforts to Watch in 2024
From the SAFER Banking Act to state-level reform, Akerman’s Jonathan Robbins outlines the legislation and potential policy changes on the horizon for the industry.
MELISSA SCHILLER | DECEMBER 27, 2023
It’s been another hectic year for the cannabis industry, from the U.S. Department of Health and Human Services’ (HHS) recommendation that cannabis be rescheduled to the evolution of cannabis banking reform to Ohio voters approving an adult-use legalization measure in the November election.
With so many potential policy changes on the horizon, which ones should business operators be most attentive to?
Here, Jonathan Robbins, chair of Akerman’s cannabis practice, outlines the legislation and potential policy changes to watch in 2024.
1. SAFER Banking Act
The Secure and Fair Enforcement (SAFE) Banking Act—which aims to provide safe harbor for banks, credit unions, and other financial institutions and payment processors that provide services to state-licensed cannabis businesses and has passed the U.S. House seven times since 2019—got a makeover this year when lawmakers revealed a revised version of the legislation in September, ahead of a scheduled committee markup.
The Senate Banking Committee approved the amended bill—called the Secure and Fair Enforcement Regulation (SAFER) Banking Act of 2023 (S. 2860)—during a markup hearing Sept. 27. While it remains to be seen when and if the legislation is considered on the Senate floor, Senate Majority Leader Chuck Schumer, D-N.Y., has vowed to call a vote on the SAFER Banking Act “as quickly as possible.”
While the industry has been buzzing about the banking reform legislation for the past several years, Robbins predicts that Congress will have more pressing issues to deal with next year, pushing SAFER Banking to the back burner once again.
“I do not feel optimistic that we are going to finally see the passage of the SAFER Banking Act in 2024,” he says. “I don't think we’re going to end up seeing it pass this year, even though I’d have probably been more optimistic and hopeful than ever if you’d asked me that question back in September.”
What could help the legislation’s chances, Robbins says, is if lawmakers amended the bill to include language that would allow cannabis businesses to access U.S. public exchanges.
“I’m really tired of seeing U.S. plant-touching companies that want to do a public offering having to do so on a Canadian exchange,” he says. “And I know that U.S. regulators would like to do it, but they’re afraid to do it. I’ve had those conversations, and so I would love to see some policy reform in that respect. And while it's not necessarily part of the SAFER Act, I would be hopeful that the passage of that act, if it ever happens, would open the door to U.S. exchanges being a little more welcoming of the industry.”
2. Rescheduling
Part of the reason Robbins believes that the SAFER Banking Act will stall again in 2024 has to do with the HHS’ August recommendation that cannabis be reclassified under the Controlled Substances Act (CSA). HHS still has not confirmed publicly the details of its recommendation, but Bloomberg, which first broke the news, said they viewed an unredacted letter sent to the Drug Enforcement Administration (DEA) that indicated HHS officials suggested a move to Schedule III. The DEA must now decide whether it will accept or reject that recommendation.
“I think that it’s probably more likely that just leading up to the election, we’re going to see some movement on the issue of rescheduling cannabis from a Schedule I controlled substance to a Schedule III substance,” he says. “The buzz in the industry is let’s deal with that and then the financial issues will sort of fall into line behind it.”
Robbins would prefer cannabis to be descheduled rather than rescheduled; he says rescheduling could be a death sentence to small businesses if they are required to undergo clinical trials through the U.S. Food and Drug Administration (FDA) and the additional regulatory scrutiny that comes along with producing and selling a Schedule III controlled substance.
“People have a lot of guesses and speculation as to what the practical effects are going to be to the industry [in terms] of rescheduling,” Robbins says. “It seems to me that [Schedule II] is really off the table and now, based upon the HSS recommendation that it be moved to Schedule III, that would be the most likely candidate, which is great and applauded in the industry [because it would remove 280E]. But what is that going to mean if you are a small cultivator in Oregon or a retailer in California?”
2024 is an election year, and Robbins expects some movement on rescheduling before voters head to the polls in November.
“President Biden is going to want to have some nugget to be able to dangle in front of the voters come November, so I think that he’s going to probably push the DEA to consider and reschedule cannabis to Schedule III under the CSA before the election,” he says.
3. Federal Legalization Bills
While federal officials evaluate how cannabis is scheduled under the CSA, Congress has several cannabis legalization bills to consider.
Rep. Jerry Nadler, D-N.Y., reintroduced the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act (H.R. 5601) in September. The legislation would deschedule and decriminalize cannabis at the federal level, as well as provide expungements for certain cannabis offenses and create reinvestment opportunities for those adversely impacted by prohibition. Previous versions of the MORE Act have passed the U.S. House twice.
Rep. Nancy Mace, R-S.C., filed the States Reform Act of 2023 (H.R. 6028) last month, building off the States Reform Act that the congresswoman filed in November 2021 alongside four Republican co-sponsors. The latest version of the bill aims to “amend the Controlled Substances Act regarding marihuana, and for other purposes,” as Cannabis Business Times previously reported.
In early December, another federal cannabis reform bill entered the ring in Washington when Rep. Dave Joyce, R-Ohio, reintroduced the latest version of the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. That bill aims to ensure that each U.S. state has the right to determine the best approach to cannabis legalization within its borders.
Overall, Robbins doubts any of these federal policy reform efforts will make much progress next year as lawmakers focus on more pressing issues, both domestic and abroad.
“There are so many issues in an election year that people are going to focus on,” he says. “Unfortunately, cannabis reform or even reform with respect to psychedelic substances is not going to be a priority, but we can walk and chew gum at the same time, so there’s certainly no reason why this can’t be addressed as well.”
4. Florida’s Adult-Use Ballot Measure
At the state level, Robbins says 2023 was a good year for adult-use legalization, with Delaware, Minnesota and Ohio joining the ranks of the 21 adult-use states that came before them. 2024 will be a big year for these states as they roll out commercial adult-use sales, and Robbins also expects more states to legalize, including Pennsylvania, South Dakota, Hawaii and, perhaps most notably, Florida.
“Mostly I’m keeping my eyes on Florida because I am a Florida resident and a Florida attorney, and we have been heavily involved in the efforts to make Florida an adult-use state,” he says. “Unfortunately, that’s something that Florida’s Legislature has not only been slow to move on, but they’ve been very active in trying to prohibit any steps towards adult use in the state of Florida. However, I feel pretty good it’s going to happen.”
Smart and Safe Florida has sponsored an adult-use legalization measure that the group hopes to get on the November 2024 ballot. The proposal has faced criticism from Florida Attorney General Ashley Moody and now awaits a decision from the state Supreme Court on whether it is fit to appear on next year’s ballot.
In 2021, the Florida Supreme Court stopped a pair of legalization attempts from appearing on the state’s 2022 ballot, ruling that the language was misleading to voters.
“They’ve pushed back hard, and our governor, [Ron] DeSantis, has been pretty public about his opposition to adult-use legalization in Florida, but the sponsors of the bill have put a lot of time and effort and money into it, and they’ve spent a lot of time crafting the language in the proposed legislation,” Robbins says. “In my personal view, I think that the language is not misleading at all, and I don’t think it violates the single subject rule. And we were up in November before the Supreme Court of Florida, and I’m hopeful and optimistic that the Supreme Court will agree with us in the matter, we’ll make the ballot in November, and if it makes the ballot, I’m very optimistic that it’ll pass, and that’ll be a big boom for the state of Florida. Hopefully it will result in a lot of tourism dollars and tax dollars to the state.”
5. The Farm Bill
The 2023 Farm Bill is another hot topic in the cannabis industry heading into 2024. The legislation is expected to miss an end-of-year deadline and be kicked to next year, and Robbins hopes the end result will tie up loose ends regarding delta-8 THC and other intoxicating hemp-derived cannabinoids that were not addressed in the 2018 Farm Bill that federally legalized hemp.
Robbins says the current patchwork of state regulations on these cannabinoids “wreaks havoc on the industry” and could be addressed through cohesive federal legislation like the Farm Bill.
RELATED: Industry Associations Weigh In on 2023 Farm Bill: What’s to Come for Hemp?
“There’s been a lot of debate and a lot of disagreement in the industry over other cannabinoids besides delta-9 THC in the plant and whether they should be legal and should be commercialized or not,” he says. “I’m curious to see how the 2023 Farm Bill that will be released in 2024 is going to address that and close those loopholes, if at all.”
No Reverse Splits for 5 YEARS means July 2027
Pervasip Announces 2 Billion Authorized Share Reduction and no Reverse Splits for 5 Years
July 21, 2022 at 09:16 am EDT
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Seattle, WA, July 21, 2022 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, today announced the decision to reduce the Company’s authorized shares and provide new guidance on reverse splits.
The Company’s board of directors has authorized a reduction of the number of authorized shares by 2 billion and will file the necessary certificates of amendment. “This is a significant step for us. We are continually looking for ways to combat any manipulation of our stock and increase value for our shareholders. We believe this reduction leaves enough shares in reserve for us to undertake any needed capital raising efforts, while also minimizing dilution among our shareholders,” said German Burtscher, Chief Executive Officer.
In addition, the Company has decided to announce that no reverse splits will be entertained for the next 5 years. The only exception would be a future uplisting to OTCQX.
That was beautiful man, I am all choked up!!
I am so moved by your interest in other peoples money and to think you would share your investing expertise with a free message board is amazing.
Why not sell this amazing market data with your own investment show on CNBC, I am sure they would pay you more than you earned here, which is zero. LOL
You better pedal faster, 650 Million on the BID.
What will you say when they take it back up in 2024?
Lets hope we get those .0001 !!!
Artizen Spin Off will be ALL Common Shares, Investors and Founders will all hold the same stock!
Same thing will happen with PVSP once they announce the new aquisition, reverse merger.
Will Year of the Dragon breathe fire into the marijuana market in 2024?
By Andrew Kaye
December 28, 2023
According to the Chinese horoscope, 2024 is the Year of the Dragon, which represents power, nobleness, luck and, most importantly, success.
As the new year approaches, we’re thinking about trends likely to impact state-regulated cannabis markets in 2024.
Here are eight predictions:
1. Ongoing expansion of regulated marijuana markets means continued growth for both medical and adult-use cannabis.
Despite a continued federal ban on high-THC cannabis, new states will continue to legalize taxed and regulated marijuana markets.
People want it, the regulatory discrepancies between alcohol and weed are increasingly seen as absurd, and politicians love the tax dollars generated by the industry.
This is a national phenomenon for red, blue and purple states, whether they be in the North, South, East or West.
2. Rescheduling marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act will finally occur, resulting in the elimination of the Section 280E tax requirement and equalizing the tax burden for cannabis companies.This is a biggie that prevented cannabis companies from taking standard business deductions, thereby seriously hurting profits.
Furthermore, rescheduling can be accomplished by administrative rather than legislative action.
The U.S. Department of Health and Human Services (HHS) recommended a lower schedule in August, and the Drug Enforcement Agency is likely to concur.
Being able to deduct selling, general and administrative expenses like every other company in the United States will vastly improve the profits of cannabis businesses.
The public equity markets will love the change, too, as existing and emerging cannabis operators will show much better financial results.
3. SAFE, SAFER or SAFEST cannabis banking reform will not happen.
Presidential election years are never hospitable to new federal marijuana legislation or reform. The 2024 election year will be no different.
4. Incumbent states will continue to experience price constraints, while newly legalized states will enjoy (for a time) robust pricing.
Cannabis follows the same supply-and-demand forces as all other industries.
In incumbent states where legalized cultivation and sales have been in place for a decade, the large number of suppliers depresses prices.
In new legal marijuana markets such as Maryland, New Jersey and New York, the price per pound that cultivators get might exceed $3,000 at the start, but growers will no doubt face the same price declines as their Western counterparts as these markets mature.
The entire industry will need to become more efficient through automation to remain in business.
5. There will be more segmentation in the market.
As the cannabis industry matures, consumer segmentation will proliferate.
More than 50% of consumers are now women and nearly 60% of consumers are married with children, countering the “hippies and hip hop” image many have of cannabis.
To adjust, marijuana businesses should offer less-potent products in addition to stronger products.
6. The East will be a beast.
East Coast markets and, to a lesser extent, the Midwest markets, will continue to experience strong growth, albeit at a more modest pace.
Much will be repeated from the incumbent Western states, with initial wholesale prices of $2,500-$3,000 per pound followed by accelerating decreases in pricing as more participants enter the market.
However, the illicit marijuana market will plague the East as much as it has the West.
New York already is inundated with ubiquitous “smoke shops,” and enforcement has been spotty.
Florida will be huge as well, once the fiction of “medical cannabis” gives way to adult-use options.
7. Growth of consumption lounges.
The public use of cannabis in all its forms will be bolstered by the continued growth of consumption venues, and Las Vegas will lead the way.
Whether flower, edibles or beverages will dominate is anyone’s guess, but the cannabis hospitality industry will no doubt experiment with a variety of formats to find the formulas that work.
This will impact the industry in multiple, unknown ways as a more defined cannabis culture emerges as a result of individuals gathering to consume with friends and strangers.
https://mjbizdaily.com/these-trends-could-impact-cannabis-market-in-2024/
April 2024 Prediction of Rescheduling of Cannabis !!
Curaleaf executive chairman gives 2024 cannabis industry outlook
Boris Jordan, CuraLeaf Executive Chairman, joins ‘Fast Money’ to talk the cannabis sector heading into 2024.
TUE, DEC 26 20236:06 PM EST
CEO says rescheduling of Cannibus will drop tax rates from 70% to normal business rates resulting in hundreds of Millions of savings for the industry.
The Cannabis market worldwide is projected to reach a revenue of US$51.27bn in 2023. It is expected to show an annual growth rate (CAGR 2023-2028) of 14.95%, resulting in a market volume of US$102.90bn by 2028.
https://www.cnbc.com/video/2023/12/26/curaleaf-executive-chairman-gives-2024-cannabis-industry-outlook.html
$15k dump, whoo whoo!!!
Last of the Tax loss selling, interesting to see if they are able to get back in after 30 days.
Biden poised to loosen restrictions on marijuana
US domestic policy
Biden poised to loosen restrictions on marijuana, but some say it’s not enough
Legalization advocates say reclassifying drug to schedule III from schedule I doesn’t resolve state and federal law conflicts
Chris Stein in Washington
@ChrisJStein
Tue 26 Dec 2023 13.00 EST
The US government appears poised to announce next year the most sweeping changes in decades to how it handles marijuana, the psychoactive drug dozens of states allow to be sold from storefronts, but which federal law considers among the most dangerous substances.
Evidence suggests that Joe Biden’s administration, responding to a policy the president announced last year, is working on moving marijuana to schedule III of the Controlled Substance Act (CSA), a change from its current listing on the maximally restrictive schedule I. That would lessen the tax burden on businesses selling the drug in states where it is legal, and potentially change how police agencies view enforcement of marijuana laws.
“If it’s going to be finalized at schedule III, it’s going to be the moment that the industry really is able to turn the corner and we begin to see the growth in the cannabis space amongst the legal operators that we’ve been waiting on for so long,” said David Culver, senior vice-president of public affairs for the US Cannabis Council, a trade group.
But other marijuana legalization advocates regard changing its classification as a half-measure that would do nothing to resolve conflicts between state and federal laws that emerged after weed legalization picked up speed a decade ago.
Marijuana faces the same federal restrictions as drugs like heroin and ecstasy under the Controlled Substances Act (CSA), but 38 states have approved its use for medical conditions, and 24 states and the District of Columbia allow adults to also consume it recreationally. That conflict has complicated the marijuana industry in states where it is legal, particularly when it comes to access to banking services, and Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (Norml), said rescheduling the drug would not resolve that.
“Classifying it as schedule III would make every existing state cannabis law that’s currently inconsistent with federal law as equally inconsistent going forward. So, it doesn’t solve any of the problems before it,” he told the Guardian.
“It needs to be descheduled for logistical reasons, for practical reasons, because we have a system right now where the majority of states are choosing to regulate marijuana as a legal commodity through their own state-specific systems, and that act is not permitted for any substance that is in the CSA. That is only permitted for substances that are not scheduled.”
Last month, Gallup released a survey that found 70% of Americans think marijuana use should be legal, a record number.
Biden does not appear ready to go that far. In his statement announcing marijuana reform, which was released about a month before last year’s midterm elections, the president pardoned all people convicted of simple marijuana possession federally, and also kicked off the review of the drug’s classification under the CSA.
That process is typically a bureaucratic affair, in which the Department of Health and Human Services reviews the substance and sends its findings to the Drug Enforcement Administration (DEA), which then decides whether to change its classification. Yet signs have already emerged that marijuana is being treated like no drug before it.
On 30 August, the US health and human services secretary, Xavier Becerra, announced on X that his department had completed its review, an unusual public status update for a process that is typically opaque. And his account made the post at 4.20pm, a number of great significance in cannabis culture.
Becerra did not specify what his department had recommended, but Bloomberg News obtained a letter from HHS to the DEA that recommended marijuana be put on schedule III, alongside drugs like ketamine and anabolic steroids.
Tahir Johnson, a board member at Minority Cannabis Business Association who is planning to open a dispensary in New Jersey next month, said rescheduling would help his business by lessening its tax burden. Federal law currently prohibits marijuana businesses from deducting their expenses from their income, meaning they sometimes pay tax rates upwards of 80%.
“It will help all cannabis businesses. But, I think especially for minority businesses, where capital and finances are tight, being able to alleviate that is certainly meaningful,” said Johnson.
Armentano also expects a rescheduling could help Biden’s reputation with the voters who make up the Democratic coalition, as well as people outside his base. Gallup found 87% of Democrats think marijuana should be legal, along with 55% of Republicans and 64% of people older than 55.
“It behooves the president to have this core base passionate about something that he’s doing to try to address the enthusiasm gap that he seems to have now,” he said.
Kevin Sabet, president of Smart Approaches to Marijuana, which opposes legalizing the drug, argued dropping pot to a lower CSA schedule would harm public health.
“It’s going to ramp up commercialization, it’s going to ramp up the marketing and the glamorization of marijuana,” Sabet said. “It’s going to do that both in a practical way with this deducting expenses, and it’s going to do so in a global way, by just sending the message that this is harmless.”
Until marijuana is legalized federally, it will still be up to Congress to resolve the conflicts between state and federal law, and progress there has been slow. A bill to allow cannabis businesses access to more financial services, known as the Safer Banking Act, has been passed by the House of Representatives six times, and is currently working its way through the Senate.
Starting in 1972, groups including Norml have petitioned the DEA and HHS to reschedule marijuana, to no avail. Armentano said the stage appears to be set for political considerations to finally get federal agencies to back down, at least partially.
“Frankly, if this petition is successful, and the DEA reverses 50 years of precedent, then it just speaks to the fact that all along this process has simply been a political one,” he said.
WSJ:: Verano Bullish on US Cannabis Industry!!!!
Verano Executive Bullish on the Future of the U.S. Cannabis Industry
A potential decision to reclassify cannabis as a less restrictive drug and pending banking legislation could have a lasting impact on the sector, says company president Darren Weiss
By
David Smagalla
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Dec. 26, 2023 6:00 am ET
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The past year was pivotal for the legal cannabis industry’s acceptance as a mainstream business in the U.S.
The Department of Health and Human Services in August recommended to the Drug Enforcement Administration that marijuana be reclassified to a less restrictive Schedule III substance from a Schedule I substance. The Senate Banking Committee, meanwhile, in September approved the Secure and Fair Enforcement Regulation Banking Act, which would give cannabis businesses greater access to banking services, and it now awaits a vote on the Senate floor. And in November, Ohio became the latest state to legalize adult recreational marijuana use, bringing the total number of U.S. states that permit recreational cannabis use to 24.
Risk & Compliance Journal spoke recently with Darren Weiss, president of Verano Holdings, one of the largest cannabis businesses operating in the U.S. Weiss, who previously served as the Chicago-based company’s general counsel and chief legal officer, gave his thoughts on the changing industry and the challenges it will face in 2024. The interview was edited for length and clarity.
Darren Weiss is the president of cannabis company Verano PHOTO: VERANO
WSJ: What’s your approach to the evolving landscape of cannabis laws in the U.S.?
Weiss: The approach really has to be one of agility. We’re dealing with 14 different sets of regulators, 14 sets of legislators—the 13 markets we operate in, plus the federal government—that have various different priorities and nuances.
It’s important not only that we are in the loop as to the zeitgeist in any particular market, but also that we are staying ahead of the curve as it relates to market opportunities that are presented by either changing laws or changing enforcement of those laws.
WSJ: What’s one legal development on the horizon that could most change how you do business?
Weiss: The one that comes to mind first is this rescheduling recommendation. No one really knows exactly what that’s going to mean for us as a business, whether it means that the federal government is going to treat cannabis as a Schedule III substance, whether it means that there will be a path for drug development and manufacture…what it means in terms of access to debt and equity markets, banking, credit cards, all the different things that may come with the liberalization of federal laws and federal rules. That change—and, as importantly, how that change is implemented—can have a monumental impact on the business.
In addition, there’s been discussion now for several years around a piece of banking legislation, the Safer Banking Act, that may or may not have any chance of getting anywhere—and frankly may or may not even have a tremendous impact on all businesses in the space.
One of the biggest opportunities for a company like Verano is unlocking access to the traditional debt and equity markets, both of which are available to all other federally legal businesses, which could include uplisting to a U.S.-based exchange like Nasdaq or the NYSE, which would open the door for institutional investment.
WSJ: What do you think will be the biggest compliance challenges for the coming year?
Weiss: Along with constantly navigating state-by-state regulatory and compliance nuances, politics continue to be a major factor affecting the cannabis industry at large. Cannabis enjoys growing bipartisan support and many politicians on both sides of the aisle agree on supporting cannabis reform generally. But they often hold opposing views on federal legalization that would require different compliance and regulatory models.
As an industry, we also continually encounter outdated political opposition resulting from decades of failed cannabis prohibition policy and propaganda, which contributes to the stagnation of federal reforms and excessive regulations at the state and local levels that hinder the industry and its many economic and social benefits and allow the illicit market to continue to operate in the shadows. We will prepare for all potential scenarios and continue dialogue with elected officials to ensure our experienced team is ready to pivot in any direction resulting from the changing political winds leading into an election year.
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WSJ: Do you find it easier these days to talk to banks about your business as more states allow for recreational adult marijuana usage?
Weiss: It’s gotten significantly easier, as big banks and small banks are much more open to working with us. One of the big changes that we’ve seen as well are financial institutions willing to provide real-estate debt—which at one time was completely verboten—but it’s really opened up and is a major part, frankly, of our strategy.
WSJ: How important is the passage of the Safer Banking Act to your business? And how does Verano work around the lack of such legislation at the moment?
https://www.wsj.com/articles/verano-executive-bullish-on-the-future-of-the-u-s-cannabis-industry-c20b1d0b?mod=business_lead_story