Author: Marguerite Arnold

Germany Or The U.S.: Who Will Go First On Federal Cannabis Reform?

Written by Marguerite Arnold on August 1, 2022. Posted in Policy.

The Cannabis Administration and Opportunity Act introduced in the U.S. Senate in late July, removes cannabis from the Controlled Substances Act and allows states to legalize recreational cannabis. How are American developments stacking up to current events aus Deutschland?

Ironically, just two days after Burkhard Blienert addressed the International Cannabis Business Conference in Berlin about pending German reform and outlined a rough schedule for legislative passage, a cannabis reform bill was introduced in the US Senate by Senator Chuck Schumer (D-NY).

A Side By Side Comparison

While German politicians are still unwilling to unveil details of the pending legislation until later this fall, the US version is now available for review and debate. The American bill specifically proposes removing cannabis from the Controlled Substances Act – an issue still of some contention in Germany. Beyond this, it would create a tax on cannabis product sales, expunge the records of those with past cannabis convictions, and allows federal prisoners serving time for nonviolent cannabis convictions to petition for resentencing. The legislation, if passed, would also establish a national regulatory framework to protect public health and safety.

In Europe, things are still less specific, although first-of-their-kind multilateral talks have now been launched between Malta, Luxembourg, and Germany. Beyond the information gleaned from the hearings in June, European lawmakers are now considering how to proceed not only on a national but regional level.

One of the standing questions on this side of the pond is how individual countries and the region itself will handle the actual legalization itself, including removing cannabis from sovereign narcotics laws as well as regulations at the EU level. There seems to be less interest in dealing with issues like racial justice, although there will clearly be a discussion about how to handle those with both convictions and those who are currently in jail for nonviolent cannabis offenses.

The discussion about taxing cannabis based on the levels of THC found in products and plants appears, for now, to be just a European debate.

The Likely Path To Passage

Right now, the US Senate is the main battleground for cannabis reform. Various bills have passed the House over the last decade only to be shot down in the Senate. It is also unclear whether Schumer has enough bipartisan support to carry the bill through to passage this time – and whether, once also passed in the House, the reconciliation between both bills could happen before the midterm elections.

On the other hand, the German timetable for reform is more likely to create a bill that passes both the Bundestag and Bundesrat, and further on a timetable now alluded to by national politicians.

For these reasons, while it is also very plausible that both debates will drive each other, it seems that Germany (and beyond that Europe) is likely to take the plunge into recreational reform on a schedule ahead of the US.

Switzerland Legalizes Medical Cannabis And Allows Exports

Written by Marguerite Arnold on August 1, 2022. Posted in Policy.

The Swiss government has joined other European countries in fully legalizing medical cannabis for domestic use, and export

Switzerland is moving forward on its own path to full legalization. With a federal recreational trial pending, the country has now fully and formally legalized medical cannabis use. This has been achieved by amending the Swiss Narcotics Act to change the status of cannabis.

As a result, as of August 1, Swiss patients can obtain medical cannabis via a simple prescription from a regular doctor. Up until now, patients had to obtain special permission from the Federal Office of Public Health. The government has justified this new development by stating that the demand for authorizations has created a huge administrative burden and slowed down medical treatment.

There are currently about 3,000 authorizations for medical cannabis use in Switzerland, issued for patients suffering from cancer, neurological conditions, and MS. The authorization for exceptional use was authorized in 2019. Beyond this, there are an untold number of patients who have also obtained cannabis from the illegal market.

The Transition to Cannabis Normalization

The University of Geneva published a study in June that estimated that the economic impact of legalization in Switzerland would generate an estimated $1 billion in revenue and create about 4,400 full-time jobs. An earlier study published two years ago estimated that the value of the national cannabis market would be about half that.

Obviously, both figures are just guestimates. There is really no way to understand both recreational and medical demand until both are fully normalized.

The Impact on European Legalization

Switzerland is located in Europe but is not a member of the EU. Regardless, the steady progression here towards a normalized market has clearly helped drive the conversation elsewhere. This starts with Germany. However, it also includes countries like Malta, Luxembourg, and Portugal on the recreational side of the debate, and beyond this, Spain, Greece, Italy, and the Czech Republic on the purely medical side.

The path to legalization in Switzerland is also being achieved through a slow normalization of medical use while beginning a limited trial in key cities later this year.

As a result, it is obvious that the Swiss example will be studied and considered as other countries begin to make moves in this direction. One of the more interesting aspects of the same is that Switzerland has also effectively lifted some kinds of regulation that are applied to the industry elsewhere – including GMP and Novel Food. How this will work externally is another question as Swiss products are exported across international borders.

Regardless, the small steps Switzerland is making now will certainly forward the entire debate, both here, and in their immediate surroundings.

The future is increasingly now.

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The End of Israeli Public Cannabis Companies?

Written by Marguerite Arnold on August 1, 2022. Posted in Business, Policy.

Before the pandemic, the Tel Aviv Stock Exchange was bubbling. Now the Tel Aviv Exchange is dropping the Cannabis Index. What gives?

In what is going to be a blow to the idea of a public cannabis company in Israel, if not beyond, the Tel Aviv Exchange has dealt another blow to the public cannabis company model. Namely, it is dropping the so-called Cannabis Index.

Just three years ago, both celebrities and public figures were being avidly recruited by Israeli cannabis companies to promote themselves to investors and raise their stock value. Much like in Canada, many Israeli companies that went public did so by merging with an existing shell company already listed on the exchange. After their debut on the exchange, at least initially, stock values soared. 18 months ago, the exchange then created its own Cannabis Index, although many doubted how useful this would be. The biggest reason for such early doubts? There were actually very few companies listed on the exchange, and as a result, it was dominated by just a few companies. In fact, the value of the exchange was mainly based on the valuation of just one company.

After soaring in value, the cannabis bubble burst, and the worth of the index has now dropped 70%, leading to the decision to delist it, as of this Thursday, August 4.

Are Public Companies the Future of The Cannabis Industry Anywhere?

While there are successful public cannabis companies, the continued roil of their worth on the public markets continues to be controversial. For example, Canopy Growth, by far the market leader both domestically and during the first expansion overseas, to Germany, was just delisted in Canada.

Part of this painful arc is the huge costs that have been required to both build certified facilities as well as gain market share. The largest companies have gotten this way by acquisition rather than organic growth.

Part of this is the growth of the industry, in all places, almost simultaneously.

In Israel, the Pandemic is also surely partly to blame.

Not all public cannabis companies are doing badly. But the reality is as the industry goes into its next iteration that public companies are not necessarily the only model, or the best one, to create a profitable company.

The Israeli exchange may be headed for extinction, but the idea of a public cannabis company is not.

For all the excitement about recreational legalization, one thing is increasingly abundantly clear. The structure of cannabis companies themselves is far from a given – and public companies may not (yet) be the best or ideal way to raise cash and conduct global operations.

While there are increasing numbers of public pot companies globally, it is also clear that there have been some gigantic missteps too.

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Hemp Increases Cow Health – and Reduces Bovine Stress

Written by Marguerite Arnold on August 1, 2022. Posted in Science.

A federally funded study published in Scientific Reports suggests that hemp has similar effects on humans and cows

A US Department of Agriculture-funded study of hemp-based cattle feed, which has been underway since 2020 has begun to deliver intriguing results. Cows can completely digest all parts of the hemp plant, including stems, stalks, and other “waste” parts not used for other purposes.

Giving industrial hemp to cows appears to help them feel less stressed and may even be good for their overall health. The effects of the plant, in other words, may be similar in both humans and cattle. Furthermore, this is a very efficient use of parts of the hemp plant that are not normally used – creating a highly efficient end-use product.

This study examined 16 Holstein steers, split into two groups. One group was fed nothing more than their normal feed for a period of two weeks. The other group consumed their feed, mixed with hemp that gave each cow a daily dose of 5.5 mg of cannabidiolic acid per kilo of body weight. Blood samples were taken from all cows to understand how hemp affected each study participant.

The cows that ate CBD began to show lower cortisol and prostaglandin levels in their blood. Both of these chemicals are common markers of stress. They also spent more time lying down than the control group.

Cows who suffer elevated levels of stress, either from early weaning or cramped quarters, are more prone to developing respiratory infections or other diseases.

Despite these encouraging results, American farmers are still not allowed, by mandate of the USDA, to feed hemp to any livestock bound for human consumption. The reason is that the US government is still concerned that minute amounts of THC might linger in meat or milk from cows who have consumed the hemp plant. This latest study shows that these concerns are not valid.

Animals and Hemp

While still in its early stages, feeding animals hemp and hemp products is clearly a growth industry. Multiple studies have been conducted on dogs, with good effect. Beyond domestic animals, however, farm animals also are positively affected. A recent Thai study has found that chickens who are fed hemp-based food also need fewer antibiotics to stay healthy.

As more conclusive studies are conducted, it is becoming apparent that cannabis is not just a wonder plant for people, but for all kinds of animals as well.

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Unprecedented Speech By German Drugs Commissioner At Cannabis Conference In Berlin

Written by Marguerite Arnold on July 26, 2022. Posted in Policy.

The Commissioner on Narcotic Drugs at the Federal Ministry of Health spoke as the keynote address to a packed auditorium, kicking off International Cannabis Business Conference Berlin 5

For those sitting in the packed audience in the Estrel Hotel in East Berlin last Tuesday, the scene felt a bit surreal. It was a moment five years (at least) in the making. However, for those who are regular attendees of the conference and have been there from the start, it was a historic moment. Finally, a senior member of the German government was in attendance and unashamedly so. Burkhard Blienert, Drugs Commissioner for the German government, made the keynote, opening speech.

The auditorium may have been full, but beyond it, the exhibit space, also the largest it has ever been, was a testament to the growing industry that brought events, not to mention all conference attendees to this point. It is clear that no politician in Germany connected to the cannabis reform issue can ignore the annual conference.

While Blienart did not reveal any more details – except to say that the legislation is still in process and there is much to compromise about – he did clarify the timeline of legalization a bit more clearly. Namely, that a draft bill will likely be released by the end of the year, with passage to occur in 2023.

The process is now underway. If there was an analogy to be made, Germany is now about two years from the beginning of a regulated, legal, cannabis market.

Many Details Still to Be Ironed Out

While there is forward motion, it was also very clear from Blienart’s speech that nothing is done and dusted. Further, there are multiple issues still to be decided. This starts with deciding what will be a legal point of sale. While he did not say as much, other rumours coming out of Berlin of late have suggested that online sales – at least at first – will be banned.

Beyond this, there is also the issue of home grow. Blienart did not rule it out. Indeed, the rumour mill has also suggested that the first number on the table is three plants.

Taxation also remains an open question.

Regardless, it is now a certainty that legalization is not going to founder. And despite the fact that there is at least an 18-month window from this summer to legal sales, it is also clear that things will not be delayed much longer than this either.

Recreational cannabis is coming to Germany, the world’s fourth-largest economy. The conversation will never be the same.

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Multiple National Cannabis Missions At International Cannabis Business Conference In Berlin

Written by Marguerite Arnold on July 26, 2022. Posted in Business, Entertainment, Policy, Science.

Multiple economic missions had booths at the conference last week – the beginning of an international trend

While the scale of the event rivaled any corporate conference – as did the exhibit booths – one thing stood out clearly this year at the Berlin International Cannabis Business Conference last week: The arrival of cannabis missions from international locales.

Last year, both Zimbabwe and New Zealand sent economic trade envoys to the conference. This year, both New Zealand and Thailand had their own booths, promoting their country’s cannabis exports.

It is, clearly, the beginning of a wave. The International Cannabis Business Conference has, since its beginning in 2017 been the most international, high-level business conference in the world. From now on, governments will be taking notice.

It is obviously now a relatively fast-changing world. One where the governments of three European countries (Malta, Germany, and Luxembourg) met last week to begin a series of high-level meetings on changing cannabis regulation across the region.

Unprecedented Market Access

One of the most important reasons for foreign producers to work with their governments to send trade mission presence to the International Cannabis Business Conference conference is that the access created by the International Cannabis Business Conference in Berlin is unprecedented, globally. Attended by all the major producers across Europe and in Germany, along with representatives of what are now believed to be the 187 distributors across Deutschland, the conference is an unparalleled opportunity to gain market access to the cannabis market in the world’s fourth-largest economy.

From the moment you hit the conference floor, it is very clear you have just entered a cannabis zone of unique scope and size.

Not Just Germany

Beyond individual companies and trade delegations, the conference is also packed with buyers and sellers of every kind. This ranges from brokers to resellers to pan European distributors to investors.

If you are looking to buy (or sell) any kind of wholesale cannabis product across the EU, this is the place to be.

There is no major segment of the cannabis world that is excluded

What Does the Future Hold?

The International Cannabis Business Conference in just a few short years has established itself as the premiere gathering place for the global industry. This will only continue to build. Look for a bigger conference, more attendees, official delegations and of course, increasingly senior politicians and deal makers.

Within two years, this is going to be the ground zero of a recreational market. The sky may not be the limit, but it will surely go even more stratospheric!

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First Of Its Kind Multilateral EU Policy Meeting On Cannabis Held In Luxembourg

Written by Marguerite Arnold on July 26, 2022. Posted in Policy.

The first of many high-level meetings on the legalization of cannabis was held in Luxembourg between representatives from Germany, Luxembourg, and Malta

An unprecedented meeting occurred on Friday, July 15 – just three days before the beginning of the International Cannabis Business Conference’s Global Investment Forum in Berlin.

Ministers from Germany, Luxembourg and Malta met for the first time to kick off a series of meetings between the countries on how to legalize recreational cannabis.

There were three sessions. Two focussed on international and European law. The third looked at the opportunities and challenges ahead as public policy and regulations change.

After the meeting, they issued a highly revealing joint statement along with personal comments from attendees. According to the Luxembourg Minister of Justice, Sam Tanson, “Almost half a century after the entry into force of our law establishing the criminalisation of drug-related behaviour, namely the law of 19 February 1973 on the sale of medicinal substances and the fight against drug addiction, Luxembourg still pursues a drug policy focused mainly on repression. However, as our statistics show, the failure of this approach cannot be denied, and the time has come to develop a new approach, based on dialogue with the states that have made the same observation and the European and international institutions.”

The Key Takeaways

For those who have been watching global developments, this multilateral meeting was actually unprecedented. Nothing has happened quite like it on the path to legalizing the plant in the last decade.

The key takeaways were equally historic. Namely:

The demand for cannabis – both for medical and recreational use has grown exponentially. In fact, cannabis now accounts for 39% of all illegal drug traffic in the region. Unless the underground economy is undermined, this represents a major security threat from the amount of cash that is being handed over to organized crime.
There is no way to control any form of cannabis unless the laws are changed, and regulations are established.
Law enforcement is being challenged by the fact that it is no longer possible to distinguish between cannabinoids without expensive testing.
There is a need for EU governments to reassess their cannabis policies which reflect changing realities as well as to strengthen social programs geared towards health and prevention rather than criminalizing use.

There is no word yet on the schedule of meetings, or whether the first group will expand the invitee list to other legalizing countries, but given the broad scope of the inquiry, it would appear that these three countries are setting the table for a European-wide discussion about all cannabis regulation, and for all purposes.

Stay tuned. This is getting interesting.

Indonesia Sees Setback In Medical Cannabis Reform

Written by Marguerite Arnold on July 26, 2022. Posted in Policy.

The Asian country appears to be on the fast track to follow Thailand into the medical cannabis reform column. Unfortunately, the Constitutional Court has rejected the plea to review the Narcotics Act – leaving reform in the hands of the legislators

A major lawsuit launched in Indonesia has now failed in its bid to convince the country’s highest court to amend the national Narcotics Act to exclude cannabis. For all the good news, it is important to remember that cannabis reform is still not a given in too many countries in the world. Many of those nations are now located in Asia.

Beyond Australia and New Zealand, Thailand remains the only other Asian country to have begun the process, although it was widely hoped that the court would accept the judicial review.

However, all is not lost. The impact of the case that got to the court in the first place is having a huge impact on the discussion far beyond the courtroom. Indeed, the story of Santi Warastuti along with the two other plaintiffs and their children is one that has ignited a storm of political support.

The Vice President of the country, moved by the plight of the suffering children in the case recently told the top religious body in the country to issue a fatwa – a religious decree – allowing Muslims to use cannabis.

Beyond this, the Parliament is currently considering a medical cannabis law.

The court may have failed to act, but the fight is very far from being over.

The Thai Tipping Point?

Thailand is clearly creating waves throughout Asia in its fast movement towards not only medical cannabis for domestic use, but also for export. The country has quickly established not only a wide domestic medical cultivation base but is now actively seeking to sell its medical crops abroad (starting with Germany).

This rapid conversion, along with the establishment of export markets in both New Zealand and Australia, is clearly making regional news.

Asia could easily become one of if not the centres of cannabis production and consumption globally. Many believe the plant originated from this part of the world. It has certainly shown up in almost every Asian country’s history – mostly used as a medicine or religious herb – or both.

The impact of the Asian region finally swinging, en masse, to even “just” medical reform cannot be understated.

That is why it is important that Indonesia continue down its current path of reform.

No matter the setback, in other words, in the judicial arena, it is also clear that forward progress is coming here. Just not via the courts – but rather the legislature.

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Cutting Edge German Cannabis Possession Case Decided On Appeal

Written by Marguerite Arnold on July 11, 2022. Posted in Policy.

A Lübeck appeals court has exonerated a father and son of possession on the basis of “emergency” treatment. The case may help other German patients beat criminal charges

On the last day of May, a regional appeals court in Lübeck (in the north of Germany) published what might yet become a bellwether cannabis case. As a result, it will also be important to patients across the country for at least the next 18 months until recreational cannabis reform actually kicks in. Namely, the court found that both a father who sourced hundreds of grams for his seriously ill son and the son were innocent of violations of the German Narcotics Act.

In doing so, the court annulled a District Court ruling which held that the two defendants were guilty of six counts of possessing large amounts of narcotics. The pair faced large fines.

The regional court acquitted both men because the possession of cannabis was justified under German law as an “emergency.” Namely, the son suffers from painful spasticity, the amount prescribed for the same was not sufficient to properly treat the symptoms, and the father obtained cannabis for his son to fill the gap.

What makes this case stand out is that the son needed six to seven grams of cannabis a day to properly treat symptoms (which is on the higher end of reimbursement, to begin with). Beyond this, the court also recognized that health insurance companies are increasingly stringent with cannabis approvals, even when justified.

In this case, the court ruled that any criminal penalties otherwise justified are overridden by a critical and unfilled medical need.

A Terrible Predicament

While recreational cannabis reform is clearly moving in Germany, the reality is that it cannot move fast enough for those who are, like the defendant and his caregiver in this case, chronically ill but still not covered by public healthcare. Such patients are directly in the line of fire – which has not been averted yet – by a government that recognizes that recreational reform must happen soon and medical reform is now five years old.

It is bad enough that casual recreational users are still directly in the line of federal drug charges. But for a country where medical use is theoretically legal, there needs to be an amnesty issued soon to protect those who may yet be unfortunate enough to be charged.

This case, as a result, may well show up in the defense of literally hundreds if not thousands of patients whose cases are still pending before full reform becomes the law of the land.