The $22B Market Canada Might Access|First Medical CBD Patient in UK |US Tax Courts Rules: No Tax Deductions for Cannabis Industry

Weed Stocks

The $22B Market That Canada Might Gain Access To

Thursday four leading Farm Bill negotiators from the House and Senate announced that they had reached an agreement in “principal.” If passed, the Farm Bill will legalize industrial hemp, potentially a $22B industry. Companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth Corp. (NYSE: CGC) have been unable to enter the US cannabis sector. If the Farm Bill passes, Canadian cannabis firms will be free to enter the US hemp market. 

North American Marijuana Index Mixed on Friday


Closing November strong, CV Sciences Inc. (OTCQX: CVSI) was a top gainer with shares up nearly 8% to $5.31 on the North American Marijuana Index Friday. MariMed Inc was up 2% to $4.09 and GW Pharmaceuticals climbed almost 1% to $122.99. MedMen Enterprises (CSE: MMEN) tumbled 9% and Isodiol International (CSE: ISOL) fell 10% in the index. Tilray (NASDAQ: TLRY) fell nearly 4% and Aurora Cannabis (NYSE: ACB) dipped 0.5%.

US Cannabis Operators Fall 5.8% in November

The month of November began with an inaugural 24% rally with momentum from the elections, however the American Cannabis Operator Index ended up falling 5.8% by the end of the month. 

Global Cannabis Stocks Decline 10% in November

Global cannabis stocks, as measured by the Global Cannabis Stock Index fell 10% in November to 80.32. The index has declined 43.5% in 2018 but is still up 41.3% from October 2017.

Canadian Cannabis Producers Plummet 14.8% in November

After sinking more than 25% in October, the Canadian Cannabis LP Index lost another 14.8% to 799.72. A series of unfortunate events and failed deals has left this index down 20.4% in 2018  and only 9.5% above the August lows. For December the overall index had no changes. 

GW Pharmaceuticals Plunges Despite Accomplishments 

Despite GW Pharmaceuticals’ (NASDAQ: GWPH) long list of achievements the stock is struggling. The company is down 35% and the Arora Report is calling GW Pharmaceuticals a buyout target. 

Cresco Labs Approved for CSE Listing

Cresco Labs Inc., formerly Randsburg International Gold Corp., announced that its subordinate voting shares have been approved for listing on the Canadian Securities Exchange under the symbol CL. The company will begin trading today. 

TILT Goes Public on CSE Announces 

With recreational cannabis sales off to a lucrative start in Massachusetts, Boston-based cannabis firm TILT decided the company is going public on Tuesday. The company raised $119M in an equity round of funding and will be listed on the Canadian Securities Exchange under the symbol TILT.

Global News

First Patient in UK to Receive Medicinal Cannabis Prescription 

Carly Barton is believed to be the first person prescribed medicinal cannabis in the UK after it was legalized last month for patients with a prescription from a specialist. The NHS is not funding her treatment, which is £2,500 for a three month supply. 

Thailand & South Korea Race Into Medicinal Cannabis

Thailand and South Korea are racing to establish a medicinal cannabis industry. Thailand’s National Legislative Assembly approved a bill that will permit cannabis for medicinal and research purposes. South Korea recently amended the Act on the Management of Narcotic Drugs, essentially legalizing medical marijuana.

Marijuana Surge: Risks & Opportunities 

Jon Fortt interviews High Times Senior Editor Danny Danko and Adam Bierman of MedMen Enterprises to discuss Canadian marijuana legalization and the impact it’s having around the globe. 

US News

US Tax Court Doubles Down On 280E

In a ruling Thursday by the US Tax Court, Harborside Health Center of Oakland must pay potentially millions of dollars in taxes on disallowed business deductions. Harborside attempted to take ordinary business deductions from 2007 to 2012. The court rejected the company’s arguments about why they took business deductions and enforced section 280E of the tax code. Until Congress amends the Code or the Controlled Substances Act, the IRS will enforce 280E.

Texas Restrictive Medical Cannabis Laws Prevents 149K Epileptic Patients From Receiving Prescriptions 

Texas has one of the most restrictive medical marijuana programs in the nation. Out of the 150,000 people who suffer from uncontrollable epileptic seizures that the medicine is intended to help, only 574 people have been issued prescriptions. Patients require sign off from two doctors to use cannabis oil and requires a prescription rather than a recommendation. 

Cannabis Industry Needs More Insurance Options

Ian Stewart, a partner at Wilson Elser, estimates there are nearly 30 surplus lines carriers and a few admitted carriers serving the cannabis industry across the US. While access to insurance is likely to grow, the cannabis sector is drastically underserved. 

PLUS Expert Talks About Insurance Needs for Cannabis Industry

The First Medical Marijuana Dispensary in Des Moines Iowa Opened Saturday 

In 2017 Iowa Legislature and the governor approved a provision of cannabis products for people with specific medical conditions. More than a dozen people lined up before the opening of MedPharm Iowa Saturday. MedPharm will offer three products with ranging levels of CBD and THC. 

Vermont Opens CBD Drive-Thru

Ceres Natural Remedies opened the first CBD drive-thru earlier this month in Brattleboro Vermont. The drive-thru will make the experience more convenient for customers with mobility issues. Medical marijuana will be offered at the location beginning December 15. 

Tompkins County Votes to Support Recreational Cannabis in New York

The Tompkins County Legislature recently voiced its support for recreational marijuana legalization in New York. In a 13 to 1 vote Tompkins County approved a resolution to inform New York state officials in Albany that Tompkins County supports the legislation to legalize recreational cannabis on a state level. 

California News

Is Too Much Regulation Growing the Black Market?

Thousands of Californian marijuana operators tend to have one foot firmly rooted in the black market. Due to local bans, zoning rules, and steep registration costs, many cannabis businesses have no pathway to get licensed. To make matters worse, cannabis businesses typically have a lack of access to startup capital or viable real estate. These circumstances have left many to resort to black market operations. 

Final California Cannabis Regulations May Not Be Public Until January 

California’s final cannabis industry regulations are expected to be completed today, however most industry insiders won’t have access to the new policies until January. The anticipated public release of the final regulations is expected in early or mid January according to the Bureau of Cannabis Control. The bureau is exploring ways of making the rules public sooner.

Metrc: California’s Track & Trace System For Cannabis Businesses

Beginning January 1, 2019 California’s cannabis operators must comply with strict guidelines that include oversight by Metrc, the state’s new track-and-trace system. The system tracks the products journey from seed to sale by capturing data at each step of the supply chain. All California cannabis license holders are required to implement Metrc. Take a look for more information on what Metrc is and how the software works.

Canadian News

Lift & co. Announces Winners of 5th Annual Canadian Cannabis Awards

Lift & Co. announced the winners of the fifth-annual Canadian Cannabis Awards. After more than 17K public votes, the top three cannabis flower products of 2018 are OG Kush by CannTrust, Blueberry Kush by CannTrust, and Bakerstreet by Tweed. 7Acres won Brand of the Year and CannTrust won Licensed Producer of the Year. 

Supply Constraints Could Limit Cannabis Stores For 18 Months

Last week Alberta Gaming, Liquor, & Cannabis announced a moratorium on new cannabis store licenses. No further licenses will be issued until supply has stabilized. Due to shortages, the AGLC vowed to equally distribute cannabis to the 65 already operational stores. 

Demand for Micro-Batch Growers Takes Off 

Namaste’s wholly-owned subsidiary, CannMart sells craft, small-batch cannabis produced by micro cultivators across BC. Craft Cannabis Association of BC is a non-profit organization based in Nelson BC. It aims to help small cannabis cultivators navigate regulations and distribution deals. 

Science

Vaping Cannabis More Powerful Than Smoking

The Johns Hopkins Behavioral Pharmacology Research Unit in Baltimore conducted a study on 17 participants who were asked to smoke or vape either 0mg, 10mg, or 25mg of THC. Over six sessions lasting 8.5 hours, researchers concluded that cannabis that was vaped caused more negative drug effects and cognitive impairment than smoking. 

Canopy & Tilray Conduct Cannabis Studies on Elderly

Canopy Growth and the Ontario Long Term Care Association have teamed up to begin working on a six month pilot program to track and monitor the effects of medicinal cannabis across 500 seniors. Similarly, Tilray is launching a sleep study today, December 3. Tilray hopes to examine the effects of medical marijuana on sleep, pain perception, and quality of life in patients over 50 years of age.

Cannabis & Nanotechnologies Don’t Mix

As companies work to create cannabinoid beverages, several are considering using nanotechnologies to mix fat-soluble cannabinoids into beverages. However, there is a growing concern that using nanotechnologies to mix cannabinoids into beverages could be harmful to consumer health. Trait Biosciences Inc says they have created pure, water-soluble cannabinoids.

Wastewater Suggests Halifax Consumes the Most Cannabis in Canada

A recent study from Statistics Canada, using technology called wastewater-based epidemiology, analyzed wastewater from 15 treatment plants across Canada. The results suggest Halifax had the highest consumption per capita at 1,310 micrograms per person per week.