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Italy Struggles To Set Regulations For Home Grow

Written by Marguerite Arnold on . Posted in Politics.

The European country is struggling to create regulations and guidelines for home grow after Italy’s top court decriminalized cannabis in late December 2019

In a sign that Covid might have slowed but cannot indefinitely delay the progress of cannabis legalization across the continent, and even in some of its most conservative countries, a committee of the Italian Senate (the Justice Committee of the Chamber of Deputies) has voted to allow Italians the right to grow up to four cannabis plants at home.

This move comes “only” 21 months after the Court of Cessation, the equivalent of the Supreme Court, ruled that the “crime” of cultivating narcotic drugs should be changed to allow small amounts of the plant grown at home and for the exclusive use of the grower. While the delay absolutely had to do, partly, with Covid, not every politician is copacetic about this kind of cannabis reform. Indeed, right-wing League Party leader and former interior minister Matteo Salvini stands fastly opposed to the idea. “Drugs cause harm, forget about growing them or buying them in shops” he said in a statement issued shortly after Italian lawmakers signalled their intent to let this legislation progress for both amendments and the full consideration of the 630 deputies in plenary session.

How Popular Is the Idea of Home grow In Europe?

Home grow is a perennially sticky wicket just about everywhere the regulated if not medical cannabis industry has begun to cultivate if not distribute. In Canada and the United States, such enterprises seeded the basis for the industry to begin. It is not a right, however, that can exist unimpeded by some kind of regulation, even in Canada, where regulators are concerned now about such cannabis entering the commercial market.

In Europe, these issues have not been widely legislated, although it is clear that Italy is leading the fight on this aspect of reform. It is also not likely to be the last country where this right is won by patients, and in court.

The Impact on The German Discussion

Within the German cannabis industry there is a great deal of discussion about how the upcoming elections might change the state of cannabis reform in the country. With several countries all around Deutschland now clearly moving forward on more progressive reform, beyond this development in Italy, it is likely that some kind of progress is in the offing.

What that will look like, however, particularly in the aftermath of patient lawsuits not only for access but cultivation, is anyone’s guess.

Stay tuned. The worm is certainly turning.

The International Cannabis Business Conference is back! Stay tuned for upcoming news and developments.

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Uruguay Likely To Allow Legal Cannabis Sales To Tourists

Written by Johnny Green on . Posted in Politics.

Uruguay made history in 2013 when it became the first country on the planet to legalize cannabis for adult use. Various countries had enacted cannabis decriminalization measures prior to 2013, or cannabis was ‘tolerated’ in certain countries, or in the case of the U.S. cannabis was legal for adult-use in some jurisdictions as of 2012 (Washington State and Colorado).

However, the title of ‘first country to legalize cannabis for adult use at a national level’ will forever be bestowed upon Uruguay. Since Uruguay legalized in 2013 only one other country has passed somewhat similar legislation – Canada. However, whereas Canada legalized cannabis sales to all adults of legal age, Uruguay’s model still does not provide for legal sales to non-residents.

It’s an interesting difference that has played out for several years now, and it is likely that most countries that legalize in the future will adopt a model that is more in line with Canada’s model versus Uruguay. Even Uruguay appears to be moving closer to a Canadian model. To be fair, Uruguay was the first to ever enact such a historic cannabis policy, so it is understandable that they wouldn’t get that part right at first. Fortunately, it’s likely that tourists in Uruguay will get to make legal purchases in the near future. Per Hindustan Times:

The first country in the world to legalize most uses of marijuana is looking to capture business away from illicit sellers and bolster its cannabis industry by allowing foreign visitors to buy pot.

The administration of Uruguayan President Luis Lacalle Pou could release its plan as soon as this year in a bid to build political consensus and support, said Daniel Radio, secretary general of the National Drugs Board. The aim isn’t to promote Uruguay as a destination for cannabis tourism, but rather to steer tourists away from the black market and into the regulated market, according to Deputy Tourism Minister Remo Monzeglio.

It is no secret that currently cannabis can still be easily obtained by tourists in Uruguay. It’s not as if since legal sales are not permitted that tourists aren’t purchasing cannabis in Uruguay. Many tourists purchase cannabis every day in Uruguay, it’s just that the sales are from unregulated sources.

Uruguay, like every other country on earth, should allow legal, regulated sales. Consumers benefit from being able to purchase lab tested products in well-lit areas without the fear of prosecution. Local regions benefit from the creation of good jobs, and all levels of government benefit from tax revenue and fee generation. Hopefully Uruguay makes the shift sooner rather than later.

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Israel’s Public Companies: An Overlooked Opportunity?

Written by Johnny Green on . Posted in Business.

This article is based on an interview conducted by Laura Herschlag, partner in Teqa Capital

The first commercial medical cannabis cultivator was established in Israel in 2005 as a nonprofit organization. By 2016, eight licensed cultivators had been established to provide products to several thousand patients. Five years later, over 50 producers, and counting, serve close to 100,000 licensed patients.

In addition to cultivation, Israel’s cannabis ecosystem includes companies developing phytocannabinoid drugs, processes for lab based cannabinoid production, breeding platforms, and many other innovations implementing technologies such as AI, robotics, and computerized vision. However, only a handful of these companies have become public and most did so through reverse mergers on the Tel Aviv Stock Exchange (TASE). Currently 11 pure cannabis play companies are traded on the TASE: Intercure, Together, Panaxia, Univo, Intelicanna, Pharmocann, Tikun Olam Cannbit, Seach Medical, Medivie, and Cannassure. Other public companies, such as Evogene, are involved in the cannabis space in addition to their key businesses.

Israeli companies are increasingly eyeing overseas markets. In February 2021, Kanabo became the first medical cannabis company to be listed on the London Stock Exchange. IM Cannabis is double listed on the CSE and on NASDAQ. Intercure listed on the TSX through a SPAC and is preparing to list on NASDAQ. How do Israeli companies compare with their overseas counterparts as an investment opportunity? Shiry Eden, CEO and Founder of cannabis strategy and analysis firm NISHOT, believes investors may be missing out on a good deal. According to Eden, Israel’s public companies are undervalued compared to their overseas counterparts.

A comparison of revenue multiples reveals that Israeli companies with similar revenues as non-Israeli companies have significantly lower revenue multiples. For instance, Seach’s 2020 revenue ($11.4) was similar to Curaleaf’s ($12M) but the company is traded at only one fifth Curaleaf’s market cap. Intercure, with a bit less than half the 2020 revenue of Cronos ($20), has a revenue multiple of 13.8 compared to Cronos’ revenue multiple of 58.5.

Eden points to this discrepancy as an indication of the potential opportunity. She asserts that the following market trends will drive growth of Israeli companies in the near future:

1. Increasing revenue and profitability: Aggregate revenues of Israeli public companies grew 125% in the past year, mostly due to a doubling of the number of medical cannabis patients. Israeli companies, in general, have a positive EBITDA and net profit.

2. Israel’s medical market is growing: Currently serving 100,000 patients the Israeli medical cannabis market is expected to be twice as large within the next year or two.

3. A recreational market is imminent: Three parties in the new Israeli government coalition have included some form of legalization for cannabis in their platforms. The previous government had already moved to de-schedule CBD and the incoming government is expected to continue the process. Israeli companies are gearing up for this change. For example, Canndoc has signed an agreement with Charlotte’s Web to supply CBD products to the Israeli market.

4. Easing of export regulations: Recent updates to cannabis export regulations will facilitate an export market which, until now, has been highly restricted.

5. Industry consolidation: As the industry matures, Israeli companies will become attractive M&A targets for overseas players.

6. The emerging psychedelics market: Israeli cannabis companies, like their overseas counterparts, have already begun exploring the nascent psychedelic medicinals market as a potential for expanding their revenue streams.

Eden attributes the dearth of foreign investment in Israel’s public cannabis companies to a lack of awareness. She points out the decades of accumulated experience in medical cannabis that provides a unique capability to address the needs of patients. Israeli cultivation is known for its consistency in providing active ingredients that are associated with specific indications, such as CBD for children with autism. She believes that as exposure to Israel’s cannabis companies and ecosystem increases, Israel’s public cannabis companies will attract a growing number of investors seeking unique opportunities.

About Shiry Eden, CEO & Founder, NISHOT

NISHOT is a strategy and analysis firm focused on the global cannabis industry, serving as an advisor to Sela Cannabis, an Israeli global oriented mutual fund. Eden has over 20 years’ experience as an economist and strategic advisor for medium to large scale corporations in Israel with expertise in the capital markets. Eden holds an MBA from Tel Aviv University and a BA in Economics and Communications Hebrew University.

About Teqa Capital

Teqa Capital is a Swiss-Israel boutique consultancy that brings Israeli innovation to Swiss investors and business people. More information on Teqa Capital can be found via their website: www.teqacapital.com

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Zimbabwe Continues Shift From Tobacco To Cannabis

Written by Johnny Green on . Posted in Politics.

Cannabis reform is spreading across the African continent, albeit in a slower fashion compared to most other continents. Many countries in Africa are at least exploring medical cannabis reform. In the case of South Africa, adult-use legalization appears to be on the way soon.

African nations have historically taken a harsh stance against cannabis, treating it as a very harmful substance. Fortunately, that has changed in recent years, including in Zimbabwe.

Zimbabwe is currently the largest producer of tobacco in Africa. In fact, it is estimated that as much as 20% of Zimbabwe’s exports are for tobacco. With demand for tobacco products shrinking across the globe, farmers in Zimbabwe are looking for a better crop to cultivate.

Cannabis cultivation was decriminalized in some instances in Zimbabwe in 2018, and the country’s first legal harvest occurred a year later. Industry regulations came a year after that, and Zimbabwe is now home to an emerging legal cannabis industry. Per Hemp Today:

Investors from Germany, Switzerland and Canada are among those who have received cultivation and processing licenses under Zimbabwe’s cannabis program. A total of 57 licenses were handed to both foreign and local enterprises, the Zimbabwe Investment and Development Agency (ZIDA) announced this week.

The Ministry of Lands and the Medicines Control Authority of Zimbabwe are working with ZIDA in administration of the cannabis business, and share authority for regulatory requirements.

ZIDA said some farms are already operating.

The legal cannabis export landscape is getting more crowded by the day, with more countries ramping up their domestic cultivation operations with an eye for the international market.

The timing of Zimbabwe’s export licensing efforts could prove to be crucial if it results in the country gaining a significant foothold on the international export market prior to other countries being able to do so, including other countries in Africa.

Adult-use legalization does not appear to be on its way any time soon in Zimbabwe, however, if the cannabis plant can surpass the tobacco plant when it comes to revenue generation, that could speed up the process.

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U.S. Drug Official: Legalization Hasn’t Led To Jumps In Adolescent Use

Written by Johnny Green on . Posted in Politics.

Cannabis opponents have several go-to propaganda talking points, however, the ‘what about the children’ talking point seems to be their favorite one. It’s definitely one that they go to early and often whenever cannabis reform efforts are ramping up in a particular jurisdiction and opponents want to spread false fear.

However, that talking point is slowly dying a natural death as cannabis reform continues to spread across the globe. With every reform that is implemented, the ‘what about the children’ talking point gets further debunked as a regulated system keeps youth consumption rates in check.

Opponents act as if cannabis reform opens the floodgates to youth access to cannabis while simultaneously acting as if prohibition is a better policy. The fact of the matter is that under prohibition cannabis is still widely available for most youth, and the cannabis that they obtain is untested and could be contaminated with who knows what.

Compare that to a regulated system where products are tested, as well as tracked from seed to sale. In a regulated system, people check the ID of the purchaser to ensure that they are of legal age. Under prohibition, there obviously is no legal age – youth are only hindered by finding a dealer that will sell to them.

The top federal drug official in the United States recently acknowledged that legalization has not resulted in a spike in youth consumption, which serves as a direct blow to the propaganda efforts of cannabis opponents. Below is more information about it from our friends at NORML via a news release:

The enactment of statewide laws regulating the adult-use cannabis market has not led to an increase in the percentage of young people experimenting with the plant, according to comments made recently by Nora Volkow, Director of the US National Institute on Drug Abuse.

Speaking on a podcast hosted by Ethan Nadelmann, the former Director of the Drug Policy Alliance, Volkow admitted that she had initially expressed concerns that legalization would lead to an increase in the prevalence of adolescents consuming cannabis. Thus far, however, she said, “Overall, it hasn’t.”

To date, dozens of federal and state-specific surveys have failed to identify any independent link between the legalization of cannabis for either adult-use or medical purposes and any rise in the percentage of teens using it. Moreover, data published in 2019 in the journal JAMA Pediatrics reported that the enactment of laws regulating the use of cannabis by adults is associated with declines in self-reported marijuana use by young people. Separate data compiled by the US Centers for Disease Control has reported that the number of adolescents admitted to drug treatment programs for marijuana-related issues has fallen precipitously in states that have legalized and regulated the adult-use market.

During the interview, Volkow also acknowledged that legalization has been associated with “better outcomes” in various states, and that federal laws and regulations on the cannabis plant have “hindered” scientists’ ability to research it – particularly with respect to the plant’s therapeutic efficacy.

An audio archive of the Nadelmann/Volkow interview is available online. Additional information regarding cannabis and teen use patterns is available from the NORML fact sheet, ‘Marijuana Regulation and Teen Use Rates.’

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Lidl Supermarket Faces Issues Over CBD Products Across Europe

Written by Marguerite Arnold on . Posted in Business.

One of the world’s largest grocery stores faces repeated problems over “cannabis” products in its European outlets

The going has not been easy for Lidl this summer on the cannabis front. The supermarket giant, with over 12,000 brick and mortar stores across Europe and the United States has now run into its second contretemps over “CBD” in a single month

Last month, in the middle of August, the supermarket chain faced considerable embarrassment after the Munich police raided a Lidl store in the city. By the end of the month, Lidl Ireland had also pulled two hemp products due to concerns over unduly high levels of THC. One of those products was for an organic hemp seed oil product and the other was for that good old standby, hemp tea. They also sent warnings of the recalls to their shops across the country.

Customers are being asked to refrain from consuming the products and to return them to the store of purchase for a full refund.

Even individually, the incidents are embarrassing to Lidl Corporate, an international German company with US headquarters in Arlington Virginia and150 storefronts across the country. In Europe, the chain has a footprint in almost every country.

Taken together, even the largest retailers are now facing the biggest issues that the entire cannabis industry from mom-and-pop hemp farmers to larger players, has struggled with now for the better part of five years – certainly on the CBD front.

Changing Cannabis Policy Globally

It is certainly easy to understand why a global grocery store has gotten it so wrong on cannabis. It is still easy to do. In the United States, CBD products are legit in state markets thanks to the 2018 Farm Bill. In Europe, CBD has been declared “not a narcotic” on the EU level by the European Commission. However, on a country-by-country basis, there is still a great deal of confusion. In Germany, for example, cannabis is still part of the German Narcotics Act, no matter that the government is now actively funding several CBD and hemp experiments.

There is no “global” standard – which makes corporate decision-making difficult to do – although other large corporations like Apple and Amazon are clearly moving in this direction also.

Ultimately, full and final cannabis reform is still a global goal – even as countries and regions begin to make headway.

The International Cannabis Business Conference is back! Make sure to check our website and social media for recordings of sessions and stay tuned!

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53% Of Uruguayan Doctors Recommend Medical Cannabis

Written by Marguerite Arnold on . Posted in Medical.

A survey carried out by the Catholic University of Uruguay reveals that the majority of the country’s doctors are willing to recommend the use of medical cannabis.

A study entitled “Medical cannabis in Uruguay: a study on the medical community and persistent challenges,” conducted by interviewing 275 domestic doctors, has revealed highly encouraging results. The majority of those surveyed said that they would prescribe the drug (64%), and only 21% are undecided, with only 15% responding that they would not administer the drug at all. Neurologists, internists, rheumatologists, and surgeons are the most likely to write prescriptions for their patients.

The most common conditions for which cannabis is prescribed medically in Uruguay are rheumatism, neurological diseases generally, cancer, chronic pain, palliative patients, and those with mental illnesses.

Even more encouragingly, more than 90% of the respondents said that it was relevant to include the endocannabinoid system in both undergraduate and graduate medical education.

Even more intriguingly, even though Uruguay was the first country in the world to legalize recreational cannabis, medical cannabis generally, is lagging in the country.

Encouraging Medical Developments Amid Greater Reform

The survey is certainly welcome news in a world where the medical community has not warmed particularly quickly to the idea of cannabis as a legitimate medical drug. Most doctors in places like Canada or even across Europe still view the drug with a considerable suspicion – due mainly to their unfamiliarity with cannabis not to mention the enduring stigma that still exists in many medical programs.

As of this April in fact, a study from Ontario suggests that the majority of doctors in the province are still reluctant to prescribe cannabis to treat chronic pain. This survey tracks findings also found back in 2019 on a national basis, from the Canadian Medical Association. 

That said, the lack of acceptance from the medical community has not slowed down the growth of the overall industry. Indeed, the number of Canadians who admitted to using cannabis, for any purpose, swelled from under 24,000 in June 2015 to over 370,000 by September of last year.

In places like Germany, where medical cannabis covered by insurance is still less than five years old, doctors remain reluctant to prescribe the drug too, but for reasons beyond its medical efficacy – namely the financial liability they still face for prescribing too much.

Cannabis education – for both doctors and insurers – remains a high priority in almost every legalizing country – but perhaps Uruguay can continue to show the way.

Be sure to stay tuned to more developments from the International Cannabis Business Conference.

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Panama Unanimously Approves Medical Cannabis Bill

Written by Johnny Green on . Posted in Politics.

Central America consists of seven countries – Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. All of those countries have differing cannabis laws.

Less than 10 grams of cannabis has been decriminalized in Belize since 2017. ‘Personal consumption’ carries no penalty in Costa Rica, although it’s unclear what ‘personal consumption’ entails.

El Salvador has particularly harsh cannabis laws, as does Guatemala to a lesser degree. Consuming cannabis in Honduras is illegal, yet ‘tolerated’ in some regions. Cannabis is also illegal in all forms in Nicaragua.

With that in mind, it is historically significant whenever a Central American country reforms its cannabis laws, which is what is happening in Panama. Per Reuters:

Panama’s national assembly unanimously passed a bill on Monday that would regulate the use of medical cannabis, making it the first nation in Central American to do so.

The proposal, which would set up a registry of authorized cannabis patients and permit further research on the drug, was approved by a vote of 44 lawmakers in favor and none voting against it.

The medical cannabis measure that received unanimous support in Panama’s national assembly now goes to President Laurentino Cortizo for a final signature.

Panama may not be the first country to legalize cannabis for medical use, and in fact is quite a bit behind many other countries, however, it is the first to legalize medical cannabis in its region, and that is definitely worthy of celebrating.

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Japan Minister Directs Local Governments To Ease Restrictions On Hemp

Written by Johnny Green on . Posted in Politics.

Japan is currently home to some of the harshest cannabis laws on planet earth. Currently, possession of cannabis carries a potential prison sentence of up to 5 years in Japan. Also, the cultivation of cannabis carries a potential prison sentence of up to 7 years.

As if that wasn’t bad enough, Japan’s health ministry recently created a panel to analyze the nation’s cannabis laws to see if they can be made harsher. The ordered review was apparently in reaction to ‘rising cannabis consumption rates among Japan’s population.’

In 2019 Japan experienced a 21.5% increase in measured cannabis consumption compared to the previous year. That increase may sound alarming to some people, however, it needs to be put into context.

Consider the fact that only 1.8% of people in Japan report as having consumed cannabis at some point during their lifetime. That’s a minuscule number compared to 41.5% in Canada and 44.2% in the United States.

Obviously, it doesn’t take a lot of people consuming cannabis in Japan to spike the consumption rate. Even hemp is treated more harshly in Japan, however, that is thankfully changing. Per Tokyo Web:

The Ministry of Health, Labor and Welfare has decided to issue a notice to prefectures in mid-September to ease regulations beyond rational guidance regarding industrial cannabis, whose cultivation method is being discussed. At the same time, from October, a forum for three-party discussions between the Ministry of Health, Labor and Welfare, prefectures, and growers will be set up.

Domestic cannabis growers have obtained licenses from prefectures to cultivate varieties with extremely low content of the hallucinogenic component “tetrahydrocannabinol (THC)” and produce fibers for rituals. However, strict regulations on the installation of surveillance cameras and fences in the fields and patrols have become a problem.

When the ministry refers to ‘industrial cannabis’ it is talking about hemp. Hemp is non-psychoactive and does not induce intoxication. It is a useful plant that can do many things.

However, if any country’s hemp industry is bogged down by cumbersome regulations such as has been seen in Japan, it will always be hard times for hemp farmers. Hopefully Japan gets it in gear and trends towards the right side of history sooner rather than later.