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Is CBD Coming Back Into Focus In Germany?

Written by Marguerite Arnold on . Posted in Business.

With the news that the German government has woken up to biology and declared that CBD is not necessarily a novel food (big victory for the European Industrial Hemp Association if not a high five of success), the market is certainly changing.

If 2018 was the year of the CBD cannabuzz and last year the Anti Hempire Strikes Back (all over Europe), this new decision by the German government will finally begin to clarify things.

In reality, this discussion is about two issues – the source of the plant and how cannabinoids are extracted. If the plant genus is from Europe and regulated extraction processes are followed (as in EU Bio), the entire conversation shifts.

However what it also does, as is clearly the case, is beginning to open the decks for investment capital now hungrily looking again at cannabis options (see the big raise this week in the UK). With the British about to go the same route as the Germans, this means, for the first time, there will be a regulated path for CBD products across the continent. Expect other governments to follow suit.

What Does This Mean For The German Hemp Industry?

This is unbelievably good news for a German-based hemp market that has struggled for respect. First, the medical market blew it away with all the attention and the money. Then governments stepped in. With the dust clearing on the ground on the CBD discussion at least when it comes to novel food, the next step will be what regulatory mandate does this industry fall under?

And there the path is very clear. 

As a result, German hemp farmers will finally be allowed to go into more or less unrestricted business, although don’t expect fast steps. With the German Federal Office of Consumer Protection and Food Safety (BVL) facing off vs the Federal Ministry of Food and Agriculture (BMEL) don’t expect overnight change. There are lots of big discussions right now about disagreeing German departments when it comes to cannabis. Welcome to the club.

However, in the shorter term, this is good news overall for the industry. There are many hurdles to overcome yet, but in sum? The clouds appear to be clearing a bit on the cannabis storm auf Deutschland.

Make sure you book your tickets for the now rescheduled summer International Cannabis Business Conference! Hemp and CBD policies, as well as regulatory oversight of the industry, is a big topic this year.

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Cannabis Reform In The NFL Is A Big Deal

Written by Johnny Green on . Posted in Cultural.

Professional sports play a big role in society all over the globe. That is a fact that is being contemplated a lot right now with the temporary closing of many international pro sports leagues. It is estimated that there are over 4 billion association football (soccer) fans around the world. That’s one sport. People watch sports, play sports, and eat and breathe all things sports.

American football is the most popular sport in North America, and until recently, the National Football League (NFL) had one of the harshest cannabis policies in professional sports. Players were not tested as often as the National Basketball Association (NBA), and the testing THC threshold was not as low compared to the NBA, however, punishments in the NFL for testing positive for THC were very harsh, with some players essentially having their careers ended because of cannabis testing violations.

From the sole perspective of cannabis testing, the collective bargaining agreement that was recently signed by both NFL owners and the player’s association was a tremendous upgrade. Moving forward, the NFL will no longer suspend players for failing drug tests due to cannabis use. The THC threshold will go from 35 ng/mL up to 150 ng/mL, which is the same standard that Olympic athletes are held to.

The move by the NFL comes after Major League Baseball removed cannabis from its banned substances list entirely. The National Hockey League was ahead of all of the North American major sports leagues and hasn’t listed cannabis on its list of banned substances for a long time. All eyes are on the NBA now, which has the worst cannabis policy out of every major sports league in North America. NBA players are tested randomly 4 times a season, and the THC threshold is a mere 15 ng/mL.

Cannabis reform in the most popular sports league on a continent is a big deal. Cannabis policy in the NFL still needs to be improved, however, from a greater-society perspective, it’s a tremendous victory and boost to the overall cannabis movement.

Consider how many NFL fans, many of which may not know anything about cannabis, recently came across positive news coverage about cannabis in the NFL and see cannabis in a new (positive) way. Presumably many of them became educated about how ridiculous cannabis prohibition is in professional sports, and hopefully, some of that line of thinking will carry over into their views on cannabis policy in society and industry.

With so many NFL fans out there, reform in the league has the potential to change literally millions of people’s perspectives about the cannabis plant, right in time for election season, and that’s a fantastic thing.

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Cannabis Legalization Associated With Increased Home Values According To Study

Written by Johnny Green on . Posted in Politics.

Since the dawn of cannabis prohibition, the cannabis plant was demonized along with the people that used it, regardless of what the purpose was for the use. Even suffering patients with a bona fide health condition were ridiculed, subjected to negative stigma, and in some cases arrested because they possessed and/or cultivated cannabis.

Cannabis opponents warned of terrible and imminent dangers that would occur if cannabis were to become legal in any form. Leading up to what would eventually prove to be successful legalization efforts in various parts of the world, cannabis opponents often described doomsday scenarios and warned cannabis supporters to be careful about what they wished for.

Obviously, legalization models are not perfect no matter what part of the world they are found in or at what level of government they were implemented at. However, legalization is an undeniably better public policy compared to prohibition. A recent quantifiable example of that can be found in the results of a recent study in which researchers looked at house pricing data before and after cannabis legalization. Per Marijuana Moment:

Economists at the University of Oklahoma attempted to tease out the impact of adult-use cannabis legalization by examining listings on Zillow.com and tracking them against legalization in Colorado and Washington State. Their findings suggest legalization “has beneficial spillover effects at both the state and local levels,” casting doubt on the parade of horribles sometimes warned of by law enforcement and other critics.

“Concerns about the potential effect on crime rates and the difficulty in policing impaired driving have been cited as reasons to slow-walk the path to full recreational legalization,” the study’s authors write. “This research contributes to the discussion, providing evidence that recreational marijuana legalization (RML) has large positive spillover effects on the local housing market.”

The results of the study demonstrate that the benefits of cannabis legalization go well beyond just the consumer experience and entrepreneur perspective. Higher home values benefit every homeowner in the geographical area involved, whether that homeowner consumes cannabis or not.

Cannabis legalization is good for communities. In addition to increased home values, the local economic boost, job creation, and tax revenue generation, cannabis legalization also frees up law enforcement resources so that cops can focus on fighting real crime, rather than enforcing failed public policy and wasting tax dollars.

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United Nations Pushes Back Cannabis Discussion Again

Written by Marguerite Arnold on . Posted in Politics.

The United Nations, rather unbelievably in the face of the Covid-19 pandemic, is again delaying its decision on medical cannabis reclassification. Coronavirus is, like AIDS and SARs, a retrovirus. Indeed many of the early treatments now being considered for those who develop symptoms may come from HIV drugs already tested for use in the SARs epidemic at the beginning of the century.

However antivirals are tough to take on their own, and further, patients have fairly routinely found that non-smoked cannabis, in particular, helps them deal with the not insignificant side effects of these treatments. That is also why, as of the early 1980s, Dronabinol, or synthetic cannabis, was approved for medical use.

The first country to visibly protest the decision to delay the UN reclassification was the U.S. but it is likely that this decision was also not popular in Europe, where the entire medical discussion and scheduling is in the room in a big way right now as countries move to incorporate cannabis as a prescription drug. One of the reasons that law enforcement in the U.S. at least wants a focus on this topic now is that the U.S. is also still in the throes of an opioid epidemic.

The World Health Organization (WHO) recommended that cannabis be moved to the least restrictive “Schedule I” or least restrictive schedule under the 1961 Single Convention on Narcotic Drugs. Cannabis is currently classified as a Schedule IV medication.

The UN Commission on Narcotic Drugs (CND) considered rescheduling cannabis last year in March. This was delayed for a year, but at the beginning of March 2020, the committee again voted to push this to the end of the year.

Is Cannabis Actually A “Narcotic” Drug At All?

One of the larger questions in the room is whether the plant itself can be discussed in terms of a “narcotic” – especially when it is used as an antiviral rather than to help pain patients. This conversation, as a result, is likely also to see the descheduling of low THC plants like hemp. However, beyond this, the outdated science of prohibition is in the room on the viral discussion in a big way.

Of course, healthy people who consume this drug can become “high.” This is the first reason that cannabis was classified as a “narcotic.” However, patients who consume THC long term, particularly for pain caused by spasticity and viral conditions like AIDS, also report that this effect goes away with longer-term use.

All of these issues are now up in the air as the world grapples with the worst public health crisis of a generation. But cannabis, again, is undoubtedly in the room.

Be sure to join the International Cannabis Business Conference in Europe this year, starting with the rescheduled International Cannabis Business Conference in Berlin at the end of July for updates on a changing international drug schedule!

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More Canadian LPs Obtain EU GMP Licenses

Written by Marguerite Arnold on . Posted in Business.

Several more Canadian firms have obtained EU-GMP licenses over the last month, with Aphria obtaining its license at the end of January, about a year later than expected.

Indeed, GMP certification proved to be a major, expensive and time-consuming hurdle for many Canadian firms, and it has taken a great deal longer to obtain the same than most anticipated. Clearly other issues, including the continued delays on the cultivation bid, have added to the discussion.

However, EU GMP is not the only license required to enter the European market as Aurora learned last fall. 

Regardless, what this clearly shows is that Canadian firms are not shying away from the challenge and there will be more floss heading this way soon.

What Is EU GMP?

EU GMP certification is the medical certification required of all medical cannabis entering the market in Germany and across Europe. There is a range of requirements, including labeling that goes along with this.

The certification is not unique to the cannabis industry but rather a pharmaceutical standard that is used globally.

Do Any US Firms Have EU GMP?

GMP certification has not taken root, yet, widely in the United States because of the lack of federal reform and still state-level industry regulations. That said, it is unlikely that this development will skip the United States as the industry finally goes federal, presumably sometime after the next presidential election.

How Do You Start To Get Certified?

The most important step in becoming certified for this kind of market is starting correctly. That means everything from growing organic to construction facilities.

How Do You Justify This Expense To Your Investors?

So far, the idea of raising capital to build facilities to GMP standards has not been a priority in the U.S. However, as the market matures and evolves, this standard will increasingly be in the room. Indeed investors will increasingly ask to see proof or at least plans to get this kind of certification in business plans and prospectuses.

To learn more about certification and other required regulations in the German market, be sure to attend the International Cannabis Business Conference in Berlin this July!

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Canada Defends Cannabis Legalization To UN Commission

Written by Johnny Green on . Posted in Politics.

Canada was the second country to legalize cannabis for adult use, and the first G-7 nation to do so. Uruguay was the first country to legalize cannabis for adult use, however, many lawmakers and regulators across the globe keep a closer eye on what is going on in Canada because of how large the country’s economy is and the type of regulated system Canada implemented.

Whereas Uruguay’s legalization model limits legal purchases of adult-use cannabis in some ways, Canada has a robust industry in which adults can purchase adult-use cannabis all over the country (albeit sometimes only via online sales), and that includes legal purchases by tourists.

Many nations are exploring the idea of legalizing cannabis within their borders, however, a lot of countries are still hesitant to consider the public policy change. Earlier this week Michelle Boudreau, director general for Health Canada’s controlled substances department, defended Canada’s implementation of legalized adult-use cannabis to the UN Commission on Narcotic Drugs, as reported by Marijuana Moment:

In her remarks to the UN commission, Boudreau stopped short of encouraging other countries to legalize, which may have further rankled UN officials, but she pushed back against international concerns that legalization would endanger public health and young people.

“The illegal market has already lost 30% of its market share, and we have seen no corresponding increase in the overall size of the market,” Boudreau said, according to a written copy of her remarks. “This represents nearly $2 billion in sales that did not go to criminal organizations.”

She added that “initial data suggests that rates of cannabis use have not changed among youth and young adults,” nor has the country seen an increase in movement of cannabis across international borders.

For many years cannabis legalization was a ‘what if’ scenario, with cannabis opponents acting like the sky would fall if any country took the leap. When Uruguay legalized, cannabis opponents then shifted their arguments to try to paint Uruguay as a unique scenario, and that any success Uruguay’s legalization model experienced would not be replicated in developed countries.

Legalization in Canada is not perfect, however, it’s clearly a better public policy approach than prohibition, and the sky is still very much intact over Canada. As time goes on and improvements are made to Canada’s legalization model, things should improve and in the process, Canada will provide insight and lessons for other countries to learn from.

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Banking Associations Demand Senate Vote On Cannabis Banking Reform

Written by Johnny Green on . Posted in Politics.

Current laws and regulations regarding cannabis industry banking in the United States are holding the cannabis industry back. Some companies are able to get banking accounts, however, many more are turned down when applying for accounts at financial institutions. Even those that receive approval still run the risk of having their accounts closed at a moment’s notice.

It’s a situation that can be very frustrating for cannabis companies to deal with. The problem is not isolated to the United States either. Leaders in Jamaica previously cited cannabis banking laws in the United States as having created problems for that nation’s cannabis industry.

The SAFE Banking Act, which would fix many problems currently contributing to the cannabis industry’s banking woes, was passed by the United States House of Representatives, yet stalled once it landed in the Senate. Recently banking associations from 49 states and Puerto Rico sent the following letter to the Senate Banking, Housing and Urban Affairs Committee urging the committee to take action:

Dear Chairman Crapo and Ranking Member Brown:

On behalf of the undersigned state bankers associations, representing banks of all sizes, we write to express our support for the SAFE Banking Act (S. 1200) and to encourage the Senate Banking, Housing and Urban Affairs Committee to markup and advance the legislation as soon as possible.

Although we do not take a position on the legalization of marijuana, our members are committed to serving the financial needs of their communities – including those that have voted to legalize cannabis. Currently, thirty-three states covering 68 percent of the nation’s population have legalized cannabis for medical or adult-use, and the issue could appear on as many as 10 state ballots this November. Despite this ever-growing voter preference, current federal law continues to prevent banks from safely banking these businesses without fear of federal sanctions. As a result, this segment of our local economies is forced to operate on an all-cash basis, which creates serious public safety, revenue administration, and legal compliance concerns in the communities we serve.

The impact on our local economies could also prove significant, as revenue paid to unrelated industries that provide products and services to state-authorized cannabis businesses such as law firms, accountants and contractors is technically money derived from illegal activities, and thus could be considered money laundering. This raises the significant question of whether financial institutions can bank these ancillary businesses, as such actions could likewise be considered violations of the money laundering laws. Without a change to federal law, that entire portion of economic activity in legal cannabis states may be marginalized from the banking system.

The SAFE Banking Act is a banking-specific solution that would address the reality of the current marketplace and allow banks to serve cannabis-related businesses in states where the activity is legal. It respects state sovereignty and does not facilitate cannabis sales in states that have chosen not to legalize the drug. Although there are admittedly broader public policy questions at play, we ask that you evaluate and address this pressing banking problem, which is within your power to resolve. Doing so will reap immediate public safety, tax and regulatory benefits while Congress continues to grapple with broader decisions about national drug policy.

Sincerely,

Alabama Bankers Association
Alaska Bankers Association
Arizona Bankers Association
Arkansas Bankers Association
California Bankers Association
Colorado Bankers Association
Connecticut Bankers Association
Delaware Bankers Association
Florida Bankers Association
Georgia Bankers Association
Hawaii Bankers Association
Idaho Bankers Association
Illinois Bankers Association
Indiana Bankers Association
Iowa Bankers Association
Kansas Bankers Association
Louisiana Bankers Association
Maine Bankers Association
Maryland Bankers Association
Massachusetts Bankers Association
Michigan Bankers Association
Minnesota Bankers Association
Mississippi Bankers Association
Missouri Bankers Association
Montana Bankers Association
Nebraska Bankers Association
Nevada Bankers Association
New Hampshire Bankers Association
New Jersey Bankers Association
New Mexico Bankers Association
New York Bankers Association
North Carolina Bankers Association
North Dakota Bankers Association
Ohio Bankers League
Oklahoma Bankers Association
Oregon Bankers Association
Pennsylvania Bankers Association
Puerto Rico Bankers Association
Rhode Island Bankers Association
South Carolina Bankers Association
South Dakota Bankers Association
Tennessee Bankers Association
Texas Bankers Association
Utah Bankers Association
Vermont Bankers Association
Virginia Bankers Association
Washington Bankers Association
West Virginia Bankers Association
Wisconsin Bankers Association
Wyoming Bankers Association

cc: Members of the Senate Banking, Housing and Urban Affairs Committee Members of the United States Senate

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Paraguay To Issue First Medical Cannabis Production Licenses

Written by Johnny Green on . Posted in Medical.

Paraguay has become the latest South American country to announce that it will issue licenses for companies to cultivate medical cannabis. Medical cannabis is still prohibited in some countries on the continent, however, cannabis reform is sweeping across South America and tremendous business opportunities are being created.

Cannabis grows very well in many parts of South America, including in Paraguay. Medical cannabis could revolutionize the agriculture industry in the country. Initially, Paraguay intends to issue at least 5 licenses. Per ADN:

Arnaldo Guizzio, minister of the National Anti-Drug Secretariat (SENAD), said through his Twitter that the program will be coordinated with several government agencies.

The State will grant five licenses to those companies that meet all the requirements to carry out controlled planting and industrialization of medical cannabis.

The official said that in November there will be a documentary approval and once the licenses are awarded, they will have to verify if they comply with the security approaches to obtain the approval.

Paraguay is home to roughly 7 million people, with a per capita income of $9,826. Agriculture accounts for 20% of GDP and about 35% of employment in Paraguay, with the main crops being manioc (cassava), corn, cotton, tobacco, and sugarcane.

Cannabis could easily become one of the top cash crops in Paraguay eventually, however, that will take quite a bit of time if it happens. For now, the announcement of 5 licenses is a step in the right direction.

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Cannabis Legalization Bill To Be Debated In Mexico This Week

Written by Johnny Green on . Posted in Politics.

Mexico has a long history with cannabis, and Mexico has served as a global source for illegal cannabis for many years. In late 2018 Mexico’s Supreme Court issued a landmark ruling in which the Court declared cannabis prohibition to be unconstitutional.

At the time of the decision, Mexico’s Supreme Court issued a deadline to lawmakers in Mexico mandating that they pass an adult-use cannabis legalization measure. The one-year deadline has come and gone, with an extension being granted. A legalization measure was circulated over the weekend, and this week the bill is expected to be debated by lawmakers, as reported by Marijuana Moment:

The 228-page document lists a series of proposed regulations for a legal cannabis model.

It would allow adults 18 and older to possess and cultivate marijuana for personal use. Individuals could grow up to 20 registered plants as long as the total yield doesn’t exceed 480 grams per year. Medical patients could apply to cultivate more than 20 plants, however.

Personal possession would be capped at 28 grams, but possession of up to 200 grams would be decriminalized.

Activists in Mexico have expressed concern about the lack of changes in the current legalization measure compared to previous versions that failed to be passed. It’s unclear at this time what the odds are of the current bill passing.

Even when lawmakers express optimism of it passing, those types of statements should be met with tempered expectations because a lot of political optimism has been offered up since late 2018, yet the passage of a legalization measure has remained elusive.

Currently, cannabis is officially legal for adult use in Canada and Uruguay.