Resonate Blends Inc (KOAN)

[mdimport]

Will be sad watching $TXHD shut itself down through its desperate attempt to dump stock on the market.

Hopefully there's an 8-K to accompany this PR.

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Bloomberg: Federal Law Prohibits Advertising Controlled Substances, With Exceptions

April 2, 2019

Any analysis of the U.S. cannabis industry begins with federal law and the conflict that exists between federal law, which prohibits cannabis sales and advertising, and the laws in the 30-plus U.S. states which allow licensed operators to do both.

The federal ban exists under the Controlled Substances Act of 1970, which still considers cannabis a Schedule I controlled substance. On advertising, the CSA states “It shall be unlawful for any person to place in any newspaper, magazine, handbill, or other publication, any written advertisement knowing that it has the purpose of seeking or offering illegally to receive, buy, or distribute a Schedule I controlled substance.”

The act goes on to specify that it is also unlawful to knowingly or intentionally use the internet for such purposes. An exception exists for materials which “merely advocat[e] the use of a similar material, which advocat[e] a position or practice, and [do] not attempt to propose or facilitate an actual transaction.”

Many cannabis ads are banned by the CSA, but an ad that does not attempt to facilitate a transaction and merely advocates for the use of cannabis or another controlled substance is actually permitted under the act.

Despite this nuance, and state legality in numerous U.S. jurisdictions, many digital marketing platforms hesitate when it comes to cannabis advertising, seeing the risks as outweighing the potential rewards (for now). In particular, the companies with a duopoly over digital advertising, Google and Facebook, both specifically prohibit cannabis advertising.

https://news.bloomberglaw.com/us-law-week/insight-navigating-cannabis-advertising-while-awaiting-the-green-light-from-facebook-and-google