Business – Page 36 – International Cannabis Business Conference

Malta Has Not Issued Any Licenses To Cannabis Associations And Clubs

Written by Marguerite Arnold on September 5, 2022. Posted in Business, Policy.

Eight months after the new rules on cannabis use came into effect, the government has failed to issue a single license allowing such establishments to begin operating

Despite leading the way on cannabis legalization in Europe, the Maltese government has yet to issue a single license allowing non-profit cannabis associations and clubs to operate. The government has also failed to issue any regulations or guidelines for the operation of the same.

The government entity responsible for the same, the Authority on the Responsible Use of Cannabis (ARUC), has said that the process of issuing such licenses was “delicate” and “could not be done overnight.”

Where Is the Timeline?

According to Authority chairperson Mariella Dimech, a baseline study on the general population has been conducted. This study will serve as a foundation for the ARUC to create operating guidelines and regulations for such establishments.

That said, there are a few rules which are now in force that will undoubtedly shape the conversation.

Currently adults are allowed to carry up to 7g of cannabis when they venture outside of their houses – although they may not smoke in public. Residents of the island are also able to cultivate up to four plants.

Beyond this, the government has already established that such associations will be limited to 500 members each, must be located at least 250 meters away from schools or youth centres, and cannot advertise their services – including having signs that include either the word “cannabis” or pictures of the plant itself.

What Does This Mean for Other EU countries on the Cusp?

Nobody ever said that legalization was easy. On a federal level, it is even more challenging. See Canada, for starters. Yet in Europe, this conversation is even more complicated by the necessity of remaining in compliance with both regional and international laws. This is one of the reasons that Malta, along with Luxembourg and Germany, have begun multilateral discussions on how to legalize the recreational industry.

That said, it is clear that of the three, Malta has paved the way – even ahead of Luxembourg which promised a recreational market by 2023 (five years ago).

For this reason, it is unlikely that the creation of an entire non-profit industry will happen at a fast pace. It is also very likely that Malta is in discussion with the other two countries in the coalition on how to proceed domestically, particularly as what happens here may well be used as a blueprint for reform in at least these other two countries.

New Academic Study Links Cannabis Legalization To Decreasing Pharma Profits

Written by Marguerite Arnold on September 5, 2022. Posted in Business, Policy.

The study, published in a non-profit, peer reviewed journal, is the strongest evidence yet that the legalization of cannabis directly (and negatively) impacts both the name brand and generics pharma industry

A new study published by PLOS ONE, an American non-profit, peer reviewed journal, and conducted by researchers at California Polytechnic State University and the University of New Mexico, has found that the pharmaceutical industry in the United States has consistently lost money after US states legalize cannabis. In fact, the average market loss (in each US state) was estimated to be $10 billion.

The study based its findings on a review of prescription drug sales and stock prices of 556 pharma companies between 1996 to 2019 and market trends that emerged after the legalization of either or medical and recreational cannabis.

This is the first time a study has been able to encapsulate such findings formally, although there has been a lot of anecdotal data released to support this claim.

The study also notes that the longer-term impact is actually more significant for generic drug makers than branded pharmaceuticals.

Pharma vs Weed?

Pharmaceutical companies, particularly in the United States, have devoted huge amounts of money and other resources to slow down the legalization of cannabis – including by dispatching lobbyists to state capitals as well as Washington DC.

In Europe, the discussion has always been different. As a result, there has yet to be a formal study on the decline of “pharmaceutical” profits thanks to cannabis legalization – in large part because the industry is already more regulated if not “pharma-esque” here. In Germany, for example, the government as well as other agencies, including associations representing both pharmacies and the insurance industry, has far more involvement and control over the same. Plus of course, so far at least, the industry here has been shaped by pharmaceutical standards.

That said, these findings are also likely to impact the discussion on the ground in Europe about the role of generic cannabis (flower or extract) as a way for governments and government-backed insurers to save money. As a result, this reality is also likely to speed up the acceptance of if not interest in the medical cannabis sector by established mainstream pharmaceutical firms.

That movement has already started in Europe – in large part because of the focus on integrating cannabis into the formal pharmaceutical and medical vertical. Spanish Alcaliber, the world’s largest manufacturer of opioid drugs as of 2014 began moving into the cannabis space around the time that Germany mandated the coverage of medical cannabis by health insurers. Beyond that, Dr. Reddy’s, an Indian company known for its lower cost generic drug focus, bought a German distributor at the beginning of this year.

Regardless, it is clear that medical cannabis is starting to come into its own – and further challenge mainstream medicines for a large variety of conditions.

Panama’s President Approves Executive Decree Regulating Domestic Cannabis Industry

Written by Marguerite Arnold on September 5, 2022. Posted in Business, Policy.

Laurentino Cortizo approved Law 242 at an executive level to move the now legalized industry forward from legislative bill to on the ground reality

Last Wednesday, President Laurentino Cortizo signed an executive decree to allow the now legalized Panamanian cannabis industry to actually move forward into implementation. He previously approved the new law legalizing medical use after it passed in the legislature last October.

The executive decree creates a regulatory framework for the domestic industry. This will allow both for the development of regulated cultivation, extraction, and manufacture of both the plant and drugs derived from it. The Ministry of Security is now tasked with overseeing operations and compliance. Consumption by patients will be tracked via a patient registration system.

“The goal of all this is that Panama has the best business model for the medical cannabis industry. Our intention is to promote in the medium and long term the establishment of local and foreign companies that will be able to supply the domestic market using raw materials produced in Panama,” said Mr. Cortizo.

Panama Leads the Region on Cannabis Reform

Cannabis was outlawed in the country in 1923 – seven years after the Panama Canal was completed. Panama became infamous, however, for the shipment of cocaine to the United States during last half of the 20th century.

Despite its tortured Drug War history, the country has moved forward with cannabis reform as a leader in Central America, becoming the first country to pass medical cannabis legislation last year (followed by Costa Rica).

This is interesting for several reasons, including the fact that Panama has long been known as a major exporter of agricultural products to North America. 28% of the total exports of the country end up in the United States.

It also opens up very interesting discussions about global cannabis shipping. The country is the site of the most important continental passageway (the Panama Canal), which saves ships from having to circumnavigate the tip of Latin America. If medical cannabis is now legal in Panama, this means that there should be no problem with shipping cannabis through the Canal. This in turn could be a boon for particularly Canadian markets – although it is a discussion which has yet to percolate in the US because of a lack of federal reform.

It is also very likely that Panamanian medically certified biomass (at minimum) will end up in European markets.

That said, it is clearly one more step towards the normalization and complete commodification of the plant as well as cannabis-based medications.

63% Of Colombians Support A Sales Tax On Cannabis Products According To Survey

Written by Frank Schuler on September 3, 2022. Posted in Business, Policy.

Colombia has served as ground zero for the war on drugs in many ways for many years, largely due to the nation’s cocaine industry. It is obviously no secret that Colombia has served as the world’s top source for cocaine for decades, with the United States being a particularly popular market for the illegal substance.

The war on drugs in Colombia has made things harder for the nation’s emerging legal cannabis industry for various reasons, not the least of which is the stigma that comes with trying to legalize a historically banned substance in a nation like Colombia, even though cannabis is not cocaine.

A big part of boosting Colombia’s emerging cannabis industry involves changing the hearts and minds of citizens in the South American country, and according to the results of a recent poll, efforts appear to be gaining traction on that front. As highlighted in a recent article from Portafolio, the survey, which was conducted by Jaime Arteaga y Asociados, found the following:

91% of survey participants that have used cannabis-based products would recommend it to other people
37% of survey participants have frequented a store where medical and/or cosmetic cannabis products are sold
63% of Colombians believe that ‘sales taxes on cannabis products would improve social investment’

The survey results provided a lot of insight into not only the level of support for Colombia’s emerging cannabis industry, but also insight into consumer trends. For instance, the survey found that nearly half of the survey participants (46%) that reported consuming cannabis reported using it in topical form.

Due to its favorable climate, Colombia is uniquely positioned to cultivate an enormous amount of raw cannabis at a price that is literally impossible to replicate in most other parts of the world.

The nation would be wise to expand its emerging cannabis industry and take its rightful place as a legal global cannabis leader, which according to the recent survey results, appears to be a very popular issue that most Colombians seem to support.

Fair Trading Commission Recommends Government Funding For Jamaican Cannabis Pursuits

Written by Frank Schuler on August 29, 2022. Posted in Business, Policy.

Finding proper funding in the cannabis industry, including cannabis research, is not an easy task. Ask anyone involved in cannabis in any meaningful way, and they will likely be quick to tell you that they are either having a hard time finding proper funding, or in the cases in which fundraising already occurred, it proved to be a harder task than they initially expected.

That is certainly proving to be the case in Jamaica where members of the nation’s emerging cannabis industry are expressing frustration regarding finding proper cannabis funding for their projects, whether it be for their company or their research projects.

The cannabis industry’s cries for help in Jamaica seem to be moving the needle, at least to some degree, with the government’s administrative body responsible for overseeing the Fair Competition Act, the Fair Trading Commission, recently recommending that Jamaica create a funding mechanism to help the cannabis industry. Per Jamaica Observer:

The recommendation follows the completion of a market study of the cannabis industry which revealed that funding is one of the major impediments in the industry.

The FTC report, which was released in August, stated “policymakers should consider establishing [a] source of funding to encourage easier entry/expansion of the legitimate trade of cannabis”.

The agency said this is crucial as potential entrants may encounter difficulties accessing loans through local financial institutions given global efforts to limit the illegal trade of cannabis.

Much of what is going on in Jamaica is also going on elsewhere, due in large part to international banking regulations that make it very hard for traditional lending institutions to work with the emerging cannabis industry.

Banking legislation lagging in the United States is partially to blame for the problem, although, other countries also have many domestic hurdles that need to be overcome in order for the cannabis industry to gain full access to the international banking system and to ever reach its full potential.

Cannabis Industry Leaders And International Policymakers To Attend Croatia Retreat

Written by Johnny Green on August 22, 2022. Posted in Business, Entertainment, Policy, Science.

After a historic Global Investment Forum and B2B conference in Berlin in July, the International Cannabis Business Conference is hosting a Mediterranean retreat in Rovinj, Croatia at the stunning 5-star Grand Park Hotel on September 22-23, 2022.

“It’s a critical time for the international cannabis industry, including for the Balkan region. The emerging legal cannabis industry is expanding at an ever-increasing pace in virtually every corner of the planet right now. It’s extremely important for industry leaders and policymakers from around the world collaborate.” stated Alex Rogers, founder of the International Cannabis Business Conference.

“The cannabis industry is going global, and in order for the industry to reach its full potential and provide numerous benefits to society it is vital for leaders to meet, network, brainstorm, and compare ideas. That is why we created the retreat in Croatia. The retreat will certainly contain some of the elements that our events are famous for, however, it will be in a more intimate setting so that leaders from dozens of countries can dive deeper into the more granular aspects of creating the next great global industry.” Rogers went on to say.

Cannabis reform is spreading across the European continent. With Germany expected to launch a regulated adult-use industry in the near future, every European nation is trending closer to reforming its own cannabis laws, including Balkan nations. The Balkan region is already home to a number of ancillary industries that would greatly benefit from cannabis reform, including and especially the scientific research industry.

The International Cannabis Business Conference’s Mediterranean retreat in Croatia will be unlike any other cannabis event to-date. The retreat will feature a blend of education and networking, with topics for the retreat’s curriculum to include:

Current legalization efforts in Europe
Economic benefits of regulating cannabis
Embracing cannabis research
Product development for an international market
Sustainable industry strategies
Educating medical professionals
Reforming Balkan region cannabis policies
Raising capital for Balkan cannabis markets

Individual speakers and panelists have already been announced, with more expected to be announced in the near future. Of course, it would not be an International Cannabis Business Conference event without an after-party, and this particular event’s after-party will be unmatched. The one and only DJ Muggs will provide the music for the poolside after-party at the 5-star Grand Park Hotel to cap off a productive and historic retreat.

The International Cannabis Business Conference is the leading B2B cannabis event series on earth. Events have been held in the United States, Canada, Spain, Germany, and Switzerland. Additional locations in other countries are being identified and will be announced in the future.

International Cannabis Business Conference events are attended by leading policymakers, executives, and entrepreneurs from all over the world, with over 85 countries being represented at previous events.

You can secure your spot now and take advantage of the early bird pricing discount.

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About the International Cannabis Business Conference

The International Cannabis Business Conference is Europe’s longest-running and largest industry B2B tradeshow and conference series. For more information, including how to register for upcoming International Cannabis Business Conference events, please visit: Internationalcbc.com. Find out more on LinkedIn, Twitter, Facebook, YouTube, and Instagram.

For more information or media inquiries, please email noelle@internationalcbc.com or call 541.864.0090.

Latin American Cannabis Exports To Europe Are Increasing – And Increasingly Important

Written by Marguerite Arnold on August 22, 2022. Posted in Business, Policy.

Central and South America are playing an ever more vital role in European cannabis market development

The first shipment of CBD from Ecuador to Switzerland has successfully landed. Even though the amounts were small – 5kg of hemp flower and one litre of CBD extract – the longer-term impact is potentially very large. Indeed, this step is an important one across the EU’s map of cannabis reform where there is a growing need for both hemp and higher THC products – but a growing question about where affordable flower and products will come from.

So far, the Ecuadorian experiment has been neither cheap or easy. Bureaucratic hurdles on both sides of the border were the order of the day. However, the potential of Latin American and African exports entering Europe is something that is beginning to trickle down – from the largest producers to smaller enterprises.

This is true of the CBD and medical market. It is also clearly going to be on the drawing board for recreational too.

Costa Rican President Fast Tracks Recreational Cannabis Reform

The newly sworn in President, Rodrigo Chaves, has prioritized the legalization of recreational cannabis while also promising to publish long awaited regulation on the medical side – which has already been approved by Congress.

This in turn will open up two important sources of income for the country – both domestically and via export.

Whether recreational reform clears the Costa Rican political opposition still aligned against it is another matter – but with a president enthusiastically behind the same, this is much more likely to happen in Chaves’ first term. This is even more the case when one considers evolving reform discussions elsewhere.

Beyond this, such developments will cement Costa Rica’s popularity as a medical vacation destination – if not create the second recreational market in the region (after Uruguay).

On the export side of the discussion, things will also become very interesting. One of the outstanding questions about pending recreational reform in Germany is where such product would come from, if outside of the country. Shipping properly regulated product between countries where cannabis reform is federally and recreationally legal may well end up being one solution to the problem of compliance with international drug control treaties still in force.

This discussion of course is not just limited to Ecuador and Costa Rica. Columbia is beginning to look even more strategically important in the provision of at least medical cannabis to Europe. And then of course there is the unrealized potential of Uruguay.

No matter what, it is clear that Europe is going to see an influx of cannabis flower if not products from this part of the world – and increasingly it is on a timeline of sooner rather than later.

cannabis leaf plant cannabis leaf plant cannabis leaf plant cannabis leaf plant

Legacy Vs. “Legitimate” Cannabis? The Answers Are Not So Clearcut

Written by Marguerite Arnold on August 22, 2022. Posted in Business, Policy.

The line between legitimacy and legacy is increasingly blurry – and it is not clear that legalization will change this

In New York State, products from around the country are showing up on dispensary shelves. In South Africa, a fierce debate has broken out about preserving the ability of farmers in the Pondoland to grow their own cannabis (for sale elsewhere) without a license. The same kinds of issues are also present in Canada, where patients continue to have to defend their right to cultivate their own medicine. In Europe, indoor only GMP growing processes mandated by the German government are being challenged in other countries (and by the biggest cultivators).

No matter the details, there is one constant to this conversation. The entire debate around regulating either the medical or the recreational market and further distinguishing either from hobby cultivation is currently front and centre in countries across the region. This includes Malta, Italy, Luxembourg, and Germany. Holland appears to be moving in a direction that Spain might go with its clubs – namely crafting a national regulation for all cannabis that is commercially consumed – but it is pretty clear that non-licensed growing is not just going to end – certainly not overnight.

The reality is as legalization proceeds, there is often a very grey line between what is legit and what is not, as much as some would claim. But it is in these grey areas that policy is being written. How much of this will actually succeed?

It is not like there is a roadmap. There is no similar precedent anywhere. Nobody ever tried to regulate poppy farmers.

Home Grow Vs. Commercial Cultivation

There are two main issues that have never been adequately addressed, anywhere. The first is that banning a plant is impossible – much less preventing people from growing one. The second, however, is a discussion about commercial production (for either the medical or recreational market).

Yet in an environment where even the largest companies have been caught out – and for either malfeasance or being in the middle of changing regulations – finding a middle ground if not a transition path is anything but easy.

This is especially true in an environment where the vast majority of legacy growers feel “left behind” by an industry that is rapidly formalizing if not internationalizing. Most of this is caused by the cost of licensing and legitimacy measures beyond this that stretch through the entire supply chain.

There are also no easy answers when it comes to drawing the lines between non-profit vs for profit production either – which continue to get complicated beyond this in the private vs public company debate.

One thing is for sure. Legalization is opening up just as many thorny issues as the Drug War ever did.

colombia flag colombia flag colombia flag colombia flag colombia flag colombia flag colombia flag colombia flag colombia flag colombia flag

Colombian President Considers Removing License Prerequisite For Cannabis Cultivation

Written by Marguerite Arnold on August 15, 2022. Posted in Business, Policy.

Newly sworn-in President Gustavo Petro is on the cusp of a revolutionary new national stance on cannabis cultivation – namely removing the requirement of licenses for the same

Gustavo Petro, the newly sworn-in, left-leaning President of Colombia, has made clear that ending the drug war will be a priority of his administration.

He even highlighted the same in his inauguration speech saying, “It is time for a new international convention that accepts that the drug war has failed, which has left a million murdered Latin Americans during these 40 years and that leaves 70,000 Americans dead from drug overdoses each year.”

Last week, he discussed his vision of a legal industry in Colombia at a summit of mayors.

Petro stressed the economic potential of a fully legal cannabis industry – and in a revolutionary move not often seen at the federal level – proposed removing the requirement to have a license for domestic cannabis companies.

He has also called for the release of prisoners held on non-violent drug charges.

As a former member of M-19 a guerrilla group, Petro is no stranger to violence, including over drugs.

Where Does Legalization Stand in Colombia?

Senator Gustavo Bolivar introduced new legislation last month which has a good chance of passing now that the country has a majority of liberal lawmakers. The position has also been recognized internationally, including by US Representative Jim McGovern (D-MA) who said that he looked forward to working together with such a forward-thinking executive to “rethink drug policy.”

How Would Unlicensed Cannabis Fit into International Standards?

Petro is suggesting a potentially radically new approach to the regulation of the cannabis industry – namely turning it into a regular commodity crop – like soybeans and corn. This does not mean that he is suggesting the cultivation of the crop without any oversight. All such food crops must comply with international standards on everything from pesticide use to the kind of soil they are grown in – even if not sold as “organic.”

This approach is a truly different one that the model that currently stands – thanks in large part to the approach adopted in Europe’s medical markets. Currently, the only high THC cannabis that can cross international borders is GMP certified (medical, pharmaceutical grade).

However, the debate about this is now starting to be heard across a much wider spectrum of debate given the pending legalization of recreational use aus Deutschland. It could be that Petro is angling to become first in line to import Colombian-grown cannabis into the new recreational market in Germany.

Whatever happens, however, Colombia is now at the forefront of an international discussion about regulation that will undoubtedly have an impact on the status quo. Globally.