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Ole! The Spanish Supreme Court Takes Aim At Barcelona’s Cannabis Clubs

The Spanish Constitutional Court has issued two rulings against the Barcelona club scene – but with a pending case in the EU’s highest court, does this really matter?

As 2021 dawns with sputtering hope of a revival of society, if not economies globally, it appears that authorities in Europe are taking on the issue of cannabis reform in a decidedly “old-fashioned” way. To date, only Holland has fully tackled the issue, and its first attempt at a national cultivation scheme has already fallen by the wayside. 

In Spain, the issue is front and centre right now, with a country that has seen its celebrated club culture essentially decimated by the various rules and regulations of lockdown. Beyond that, however, the “instigating” founders of the scene in the first place, are facing national jail time. Albert Tió indeed, turned himself in last December. His case against the Spanish national government is now pending in the European Court of Human Rights at Strasburg.

Reform, in other words, is a high profile issue.

To address that, the Supreme Court has made two decisions lately that directly affect the industry. In two decisions, that came right on top of each other the Court declared the City Council of Barcelona “lacks the competence” to regulate the clubs via municipal plans, and the 218 clubs it has registered for the purpose so far.

So far, the municipal authorities in Barcelona have not backed down. After all, they realize that Spanish authorities at the federal level are making a lot of noise over what could, legitimately, be nothing, given the pending EU court’s decision. Not to mention, as city leaders have already publicly pointed out, they are unwilling to revisit the matter until there is a federal solution, and in the meantime, there needs to be some kind of regulation.

Standoff city. Yet again.

A New Dawn For Spain in 2021?

There are about 1,500 registered clubs in Spain, with over 80% either in Barcelona or its outlying suburbs. The clubs employ about 7,500 people across the country. Each club has, on average, 3-400 members. Many clubs have either been shut down entirely or forced to operate in an even stranger, greyer, more precarious space since the beginning of the Pandemic.

With the new Supreme Court rulings, in other words, will at least a temporary additional level of complication, not to mention legal work, force that infrastructure to collapse?

It is clearly the goal of authorities right now. That, however, at least in the short term, is a goal they are unlikely to achieve. Cannabis has landed in Europe, and it is unlikely that it will be successfully rolled back, in Spain, or anywhere else for that matter as Luxembourg joins the conversation later this year.

Be sure to book your tickets for the International Cannabis Business Conference when it returns this summer to Berlin to get the latest on ever-changing European cannabis legislation and business environments.

Aphria Announces First Cannabis Harvest For Germany

The second growing facility for medical cannabis is about to deliver – but is this all going to be enough?

Aphria, now merged with Tilray, is edging ever closer to actually delivering medical cannabis product grown domestically – but they are still not quite there yet. Delivery appears to be now promised for Q1 this year, but there are many hurdles still, between now and then.

That said, beyond the individual successes of any company that has made it through this torturous process, what does this mean for the future of domestically produced cannabis outside the “big three?”

Steady As She Blows…Until After Covid…

There has been an acceptance since the early days of the cultivation tender in Germany that the initial bite at the apple – the first cultivation tender – would never produce enough for the growing and anticipated demand. This has been exacerbated by the many unavoidable delays in production thanks to Covid.

However post-Covid, with a renewed focus on domestic production and further green economic development, this is likely to morph into a very interesting discussion, even in Germany and even more particularly after the next general elections. And even more particularly with more established and regulated industries in Holland and Luxembourg, if not the Swiss, who are unlikely to sit this one out for long.

Beyond this, there is likely to be a growth in domestic production on the continent to feed other markets – like the Brexited UK. Obtaining the correct permits and beginning cultivation in this climate is likely to be just as torturous as it was before, if not slightly more painful for the next 18 months, but there is no way the activist British patients on the ground are going to stand for excuses, any more than they were before.

Bottom line? Long term the cannabis industry promises to be a growth industry that is integrated into other re-economic developments but it is not going to be quick, easy or cheap.

The Future Of Home Grow and Smaller Licensing In Europe

While the Canadians have the model down for smaller growers, this is an idea that has yet to be broadly adopted in Europe. That said, Italy has certainly opened the way, and it is unlikely that such ideas will be entirely thrown out the window, particularly if there is licensing revenue to be had. 

This does not mean that such developments will be easy to achieve. However, there is clearly a new day dawning on a number of fronts, and cannabis reform will be in the room from now on.

Be sure to attend the first post-COVID International Cannabis Business Conference in Berlin this summer!

The Dutch Cannabis Tender Hits The Skids

Like the German medical cannabis tender bid before it, the Dutch government has run into a few problems rolling out a regulated industry across the country – and the first tender for cultivation has imploded

One thing is for sure. Governments find it very hard to roll out a federally controlled tender bid for the cultivation of cannabis. Everywhere.

Here is the thing the U.S., however, can take away from the following story. Don’t smirk – there is nothing about a state-driven licensed process on that side of the pond that is anywhere as complex if not complicated as doing it on this side of the Atlantic. And that is before the inevitable flubs and stupid politics get mixed in.

Here is the quick update. The first federally overseen Dutch attempt to finally regulate the cultivation of cannabis bound for domestic coffee shops (outside of major cities, which already decided to sit this out in favour of their own systems), has just hit formal skids.

Here is the upshot. The Dutch bid selections (9 rather than the initial expected 10 after one of these got disqualified) will all have to be reconsidered. Multiple errors in selecting winners, including leaving out the wishes of local councils, multiple entries by the same firm (this was a “lottery” after all) and other very unprofessional issues have all arisen in the last week as the bid was supposed to be decided. 

Even Dutch growers, and those who back them will concur that this was not only a highly foreseeable if not preventable situation. Not to mention the logic at work in reconfiguring the process is absolutely inescapable. Business plans as well as the disclosure of investor names are mandatory (for starters).

Unsurprisingly, the referees to all of this are circling wagons – but there is going to clearly be another bid redo in an environment where free wheeling cannapreneurial efforts are hitting the skids after being exposed to even the most minimal and logical regulatory muster.

In the meantime, enterprising firms interested in having their shot at a “little cannabis farm” in Holland should be aware that the decision process is far from over.

For an inside look at some of the most pressing regulatory, cultivation and tender bid issues in Europe, be sure to book your tickets to the International Cannabis Business Conference when it returns to Europe.

How Much Legal Cannabis Did Illinois Sell In 2020?

Currently, 15 states in the U.S. have legalized cannabis for adult-use along with Washington D.C. Some of those states already have legal adult-use cannabis sales underway, while others, mostly the 2020 class of states, have yet to launch legal sales.

The first state in the history of the United States to legalize adult-use cannabis sales by legislative action was Illinois. Every other state that legalized cannabis before Illinois, with the exception of Vermont, legalized cannabis via the ballot box.

In the case of Vermont, lawmakers passed a legalization measure, however, the measure did not legalize regulated adult-use cannabis sales – just possession and cultivation.

Illinois just wrapped up its first year of adult-use cannabis sales, and the year-end totals are staggering. Per Chicago Tribune:

The year 2020 dawned with thousands of people lined up, some overnight, waiting to be among the first to buy legal recreational marijuana in Illinois.

As the long, strange year comes to an end, people are lined up at food banks, to get coronavirus nasal swabs and in some cases, to be among the first to receive a vaccine that may mark the beginning of the end of the COVID-19 pandemic.

And people are still buying weed. Lots of it.

Despite the massive economic disruption wrought by the pandemic, 80 recreational cannabis dispensaries have opened in Illinois and business is on pace to top $1 billion in 2020, including medical marijuana sales.

Illinois’ legal cannabis industry is still very young by many standards, and to top a billion dollars in sales in the first year is significant. To put the sales figure into perspective, Colorado’s first year of legal sales post-legalization (2014) was roughly $684 million.

To be fair, Illinois has a significantly larger population than Colorado, however, Colorado’s medical industry was much older so a better industry framework was already in place, and Colorado had the national monopoly on legal adult-use sales and sold a lot of cannabis to tourists.

Illinois’ cannabis laws are not perfect, and the industry has a lot of room to improve, but what happened in Illinois in 2020 was pretty remarkable, and will hopefully encourage legislators in other prohibition states to pass legalization measures sooner rather than later.

Dutch Cannabis Licensing Scheme Hits Local Protests

Plans to replace the production of blackberries with coffee-shop bound cannabis hit skids over NIMBYism at proposed grow sites for new Dutch licenses.

If it sounds like a scene straight out of a comedy, not to mention Colorado circa 2015 or so, just at a far lower altitude and probably still far more windmills, it is. The only problem is that it is also a tragedy. About lingering stigma, confusion, and more about the plant, if not its effects.

In these times of Covid, it also shows how this continued confusion has lasting effects – starting with jobs.

As the Dutch government proceeds with a pilot project to create ten licensed growers to supply the country’s coffee shops outside of big cities, it has run into its first major snag.

The residents of Etten-Leur, on the Belgian border, have trigged large local protests over a pending plan to replace blackberry crops with cannabis. There is now a request by the local mayor to the central government opposing the scheme. And the selection of the finalists for the 10 Dutch licenses has not even been decided yet.

The legal status of cannabis has everything to do with this. So far, Holland has not formally changed its national laws to legitimise the recreational cannabis industry. Indeed even this first trial as an attempt to do so has been opposed by its own large cities who maintain local controls on a still-flourishing industry.

The largest problem however now facing this model is larger scale, regulated cultivation. With Dutch residents now protesting the placement of larger corporate grows, the entire project may run into problems before it is ever rolled out.

Where To Grow New Canna Crops?

Holland produces a great deal of the medical cannabis flos that flows across the border to Germany – which has had its own ongoing problems with cannabis cultivation bids. Indeed, the first tender for medical cannabis, launched in the spring of 2017, has faced delay after delay in delivering domestically cultivated crops to German patients.

In Holland, the issue is already contentious – starting with the fact that the government could not even get cities to go along with a so-called “national plan.”

If smaller cities and municipalities also get into the act, the first licensing scheme for Holland, regulated on a federal level, will quickly fail.

For this reason, no matter how bad the news, it is also a step forward on the issue overall – in both Holland and the rest of Europe (see Luxembourg for starters).

Having a cannabis presence is one thing. Having a regulated cannabis industry is another.

And as American, if not Canadian communities learned long ago, the transition is always bumpy. For one reason or another. The good news, no matter the uncomfortable delays so far, is that it is happening at all

Be sure to book your tickets when the International Cannabis Business Conference returns to Europe this summer.

Tel Aviv Stock Exchange Now Has A Cannabis Index

For many years investing in the emerging cannabis industry was a very tricky thing for many reasons, not the least of which was that the cannabis industry was operating in a legal ‘grey area.’

Places such as Amsterdam and British Columbia were home to cannabis-based businesses like cannabis cafes that were ‘tolerated’ by local authorities.

Arguably the biggest evolution in the cannabis industry came in 1996 when voters in California legalized cannabis for medical use, which resulted in the exponential growth of medical cannabis dispensaries and cultivation operations throughout California.

For many years cannabis investments operated in those types of markets, and/or revolved around ancillary cannabis inventions and ideas. The reward was significant, however, so were the risks.

Zoom forward to today and there are far more options for investing in the emerging cannabis industry, including and especially cannabis stock investment options.

Multiple stock exchanges now allow cannabis company listings, including in Israel. Per The Jerusalem Post:

The Tel Aviv Stock Exchange launched on Monday a new index for nine medical cannabis companies in an effort to boost trade in the burgeoning, yet not quite mature, sector.

The new index includes nine companies that are “primarily engaged in the fields of research, cultivation, sale or production and marketing of medical cannabis products”, the stock exchange said.

Israel is rapidly taking its rightful spot as an international cannabis leader. The Middle Eastern nation has long been an international leader for cannabis research, but the country’s medical cannabis program was limited for many years.

Now Israel not only has plans to become a major exporter of cannabis but also has plans to legalize cannabis for adult-use next year. If you are looking to invest in cannabis, you should definitely keep an eye on Israel to see how things develop.

Pandemics, Mergers And 2020 – Oh, My, Goodbye!

A strange year has wound up with a whimper rather than a bang as two of the largest Canadian public cannabis companies merge in a cashless transaction and one of them adds dronabinol to its product roster.

It is unlikely that the memory of 2020 will recede any time soon. The Pandemic created new opportunities, however, for many in the cannabis industry who could brave the course of events, starting in the United States and Canada. Dispensaries were labeled “essential” and being allowed to stay open (although the cannabis club world was thrown into disarray in places like Spain) meant a vital difference to many in the industry.

Further afield, and at the end of the year, global and regional regulatory mandates also moved the needle forward, even if in some instances incrementally. The UN vote to move cannabis out of Schedule IV is a mere political nod to the obvious without shaking any more boats. The reality is that Schedule I designation means that individual countries and regions beyond that, will now have to shoulder through all the messy details of both legalization and incorporation of the drug into other regulatory buckets and business environments. The EC vote on hemp, namely that CBD is not a narcotic was far more meaningful, along with the ability to now market hemp products openly like any other good. Look for European innovation on that front as a result, and as of early next year. That includes new media, new technology, and of course a new debate about the entire ball of wax as Luxembourg finally begins its recreational market and Holland ushers in a more regulated industry.

That said, it is also unavoidable to note that 2020 was certainly not a good year for big pot, no matter the temporary bounce in stock prices for a few. Delays in the production schedule for new facilities in Germany caused by Covid have clearly had an effect on the remaining two bid winners. Wayland, it should be remembered, was the only bid winner which had actually spent money on production facilities that became operational before the awarding of the bid. They merged with ICC right as the bid was awarded, and the bid production contracts have ended up with Demecan. Last week, it emerged that Aphria was merging with Tilray in a similar fashion. Aurora has also struggled, closing a huge cultivation space in Canada.

The ghosts of the first German tender are still in the room even as the entire continent struggles with how to classify the plant, and now, in the aftermath of Covid, economic redevelopment.

One thing is for sure. Cannabis is going to be on the drawing boards of every country as the world rebuilds from Covid. And if that is not the best, most catchy holiday season’s greetings, it doesn’t sound all that bad at this point. There is a light, indeed at the end of a very long tunnel.

Be sure to book your tickets to the International Cannabis Business Conference when it returns to Europe in 2021!

Ready, Set, Thai Canna Tour?

Thailand plans a tour to educate locals about medical cannabis. Fully-fledged production is the goal, but will this lead to other things – like organized canna tourism for foreigners?

Tourism and Sports Minister Phiphat Ratchakitprakam has announced that the federal agency is backing a formal medical marijuana tour. The idea is to increase awareness of the medical efficacy of cannabis among locals who are interested in venturing into cultivation.

According to the Bankok Post, 8 provinces have plantations that will serve as part of the tour, and anyone can purchase a tour package, which includes visiting the farms, and education about how to grow the plant commercially.

The Thai government is also moving fairly quickly to implement not only reforms but the infrastructure necessary to nurture a cannabis industry. In August of this year, the Thai cabinet approved an amendment to the country’s Narcotic Act to allow private medical practitioners, traditional healers, and farmers to grow cannabis for medical treatment. Just two years ago on Christmas Day, the government approved the medical use of cannabis, becoming the first country in Southeast Asia to legalize cannabis for medical purposes.

The Implications Elsewhere

There are still few governments that seem to be as open to creating a national economy for locals as the way the Thai government appears to be going about legalization. In most countries, starting with Europe but also including Australia, New Zealand, and South Africa, the entire process of cannabis cultivation has been limited to existing farmers or cultivators who could raise significant amounts of cash to begin construction of specialized grow facilities and a supply chain that would pass medical muster.

The Thai government, however, appears to be taking a vastly different tact. Namely, making sure that national farmers are given the first opportunity to enter the market and keep control of a commodity that so far has mostly been dominated by those with deep pockets and from elsewhere.

This attempt to keep the cannabis market in local hands may well still traverse the path seen elsewhere – namely selling itself to foreign investors to raise capital for a fully licensed supply chain. However, it also may not. There is considerable backlash growing against the Canadian public industry, in particular. And more and more countries are beginning to understand that keeping cannabis production local is a vital element of national security, just like the ability to grow other food and plants for medicine.

Indeed, the Thai experiment may yet produce its own exotic strain of reform in the coming years that may well leapfrog its way into other national discussions.

Make sure to book your tickets to the International Cannabis Business Conference when it returns to Europe in 2021.

The Future Of The Hemp Industry In Europe

An EU court case over the right of a Czech company to legally produce hemp extracts and sell them, across European borders, in France, has moved the needle on the entire “CBD as narcotic” discussion -and in a big way.

Last week, the European hemp industry got a huge boost at the European Court of Justice. Not only has the Court ruled on a pressing matter at the table across the EU but globally, at the WHO right now (namely that CBD is not a narcotic). 

As a consequence, however, the entire European hemp industry seems to have gotten a boost that so far had largely eluded it. Namely its basic legitimacy.

The Overview And Significance Of The Case

The European ruling came on appeal of a French case wherein vape cartridges containing CBD extract that were legally manufactured in the Czech Republic were shipped to France for sale – and as a result, the company was prosecuted and fined.

As a result, the overturning of the French decision in Luxembourg means that:

– Companies who are legally registered to produce hemp and hemp extracts in one European country are immune from prosecution for the same in their country of origin.

– Companies may ship such products, if not the raw ingredients and unpackaged extracts (in bulk) legally, across European borders without fear of prosecution.

-Companies may market and sell such products legally, across Europe, no matter where they or their customers are located. The online hemp extract marketplace finally got the boost it has been waiting for.

A Rush of Investments Into The Hemp Industry?

While the deck has certainly been cleared of the surrounding smoke on a very basic issue (i.e. whether to treat legally produced and certified hemp as a medicine or whether there could be a differentiation between plants possible at the ground, police inspection level), there are still looming barriers across the entire conversation that have NOT been solved.

Namely, whether hemp and its extracts are indeed “novel.”

While this so far has been the established focus of an industry and its lobby that had no firm place to stand, this too, will begin to shift, particularly as hemp is normalized under European farming policy and thus, firmly, in the realm of EU-BIO.

Regardless, all of these waters will be choppy for the next several years – and will continue to be as the Cannabis sativa L plant, and of all THC concentrations as well as other cannabinoids, continues to top the change agents still active and fomenting in Europe.

Be sure to book your tickets for the International Cannabis Business Conference when it returns to Europe in 2021.