According to reports, Illinois continues to have astronomical success in their new recreational cannabis market.
In the most basic terms, offering fraud occurs when a person (or entity) makes material misrepresentations or omissions to potential investors in a new company (most commonly, promising those investors large “guaranteed” returns on their investments). Offering fraud cases have become more prominent in recent years, and it looks like the U.S. Securities and Exchange Commission is ready to start looking at the cannabis industry.
Last week, the Commission filed suit in the Central District of California against a group of individuals and companies for securities offering fraud and other violations of the Exchange Act. The Complaint outlines how nine issuer entities and their principals/control persons raised over $25 million from more than 400 investors in the 2017-2019 timeframe to supposedly finance the establishment of a licensed marijuana farm and CBD extraction facility in Salinas, California. In soliciting investments, the defendants misled and deceived actual and potential investors about their potential return on investment – which they claimed to be annual returns of 100% or more.
It gets worse. The Complaint outlines a litany of additional offenses:
The defendants deceived investors about how their investment funds would actually be used, misrepresented the compensation they intended to receive, and misappropriated
Cannabis companies LeafLink, Flowhub and Vangst have released a joint report featuring data from their own businesses — wholesale, online retail and talent hiring — and Covid-19’s impact on the industry.
The State of the Cannabis Industry 2020 white paper reviews data points around B2B ordering, consumer preferences, purchasing habits and human resources management.
Cannabis Sales For 2020 Surpass 2019 On Average
Looking at sales from 800 dispensaries in 13 markets across the country, Flowhub reports that cannabis retail sales for February were lower than sales from that same month in 2019.
– Read the entire article at Benzinga.
The first new Manitoba cannabis retailer licensed since the province loosened regulatory COVID-19 restrictions in June plans to fill its shelves with legal pot products in just over a week.
As of June, there were 30 licensed cannabis stores in the province, but the Crown services minister announced in May Manitoba would open the market to all prospective retailers on June 1.
The Joint — an independent chain of head shops in Manitoba, Saskatchewan and Alberta headquartered out of Winnipeg — will open a cannabis shop section at its Portage Avenue location around Aug. 10 after it received authorization from the Liquor, Gaming and Cannabis Authority of Manitoba and the Manitoba Liquor and Lotteries Corporation.
– Read the entire article at Global News.
Equal But Different
“There’s evidence that estrogen gets you higher and testosterone does the opposite.”
This sex-based difference in response to cannabis often leads to a mismatch in how high partners will feel when including cannabis in their lovelife.
That said, other factors (e.g. a person’s weight, frequency of past cannabis use, unique biochemistry, etc.) also play major roles in how someone will feel when using cannabis during sex. These considerations often necessitate that lovers take different doses of cannabis before heading to the bedroom (or the woods, on a billiards table, or wherever the mood may strike).
Sophie related that, from her own experience, she has found that men and women tend to prefer different varieties of cannabis.
“The industry is moving away from the indica and sativa model in terms of a more accurate and detailed response, but I hear a lot of women wanting to use indicas, indicating they would want a more calming experience. With men, it seems to be they want a more energetic experience from sativas.
– Read the entire article at Benzinga.
State legal cannabis businesses are used to the specter of the federal government in the rear view mirrors of their lives and businesses. Unless you’ve been living under a rock, you know that cannabis remains federally illegal. And it’s not so much the case anymore that the Drug Enforcement Administration (DEA) or Department of Justice (DOJ) are coming to knock down your door and arrest and prosecute you as a cannabis business owner for open violations of the federal Controlled Substances Act (CSA). These days, life can be fairly miserable as a cannabis business owner due to the legal conflict between the states and the feds, resulting in a lack of access to financial institutions, onerous federal income tax obligations, no federal trademark protection, asset forfeiture, etc.
Rarely, though, do we get to see a state agency and the feds openly fight over these commercial cannabis democratic experiments (which is mainly due to the acting Attorney General’s “hands-off” approach to state legal cannabis, “Second Requests” scandal notwithstanding). When these confrontations happen, it’s fascinating to see how the respective governments behave and is always educational regarding evolving federal enforcement priorities.
And that is what made last week’s new so interesting.
ST. LOUIS — Five additional companies, including two in St. Louis, have been awarded medical marijuana infused-product licenses because duplicate licenses were mistakenly issued, the Missouri Department of Health and Senior Services (DHSS) reported.
Five infused-product manufacturing facilities submitted duplicate applications and received more than one license for a single facility, DHSS said. There was no prohibition against duplicate applications, but “one facility can only utilize one license,” DHSS said.
The five new licensees, who were next in line in the scoring of applications, are:
MidAmeriCanna, 2849 Union Blvd., St. Louis Nature’s Med MO, 3615 Tree Court Industrial Blvd., St. Louis ROI Labs of Atherton , 4610 N Main St, Independence Missouri Made Marijuana,, 301 S. Outer Belt Road E., Grain Valley Kings Garden Midwest, 3300 Pleasant Place, Trenton
Missouri authorized 60….
This is the second post in a two-part series. The first is available here.
Last week, the Food and Drug Administration (FDA) submitted a CBD enforcement policy to the White House. We do not yet have the text of that document but we anticipate that it will have a significant impact on hemp-derived CBD (Hemp CBD) products. In my last post, I summarized the FDA’s current enforcement policy and briefly discussed the FDA’s recently released guidance for drug manufacturers interested in cannabinoid research. An issue that came up in the FDA’s guidance for drug manufacturers was testing finished and intermediary products for cannabinoids.
Here’s how the FDA frames the issue of testing hemp products in the drug guidance document:
In general, the composition of a botanical raw material is calculated as the amount of the compound(s) of interest naturally present relative to the dry weight of botanical raw material prior to extraction or other manufacturing steps. However, this type of dry weight calculation has limited utility for intermediates such as solutions, extracts in solution (whether aqueous or nonaqueous), and for finished products. Therefore, FDA recommends that sponsors, investigators, or applicants evaluating intermediates or finished products that contain cannabis
FSD Pharma, which launched a medicinal cannabis production facility in Cobourg, Ont., will be cancelling its cannabis licences and closing the operation next month to focus on coronavirus work.
On Thursday, the biotech/pharmaceutical company announced it has notified Health Canada of its decision to forfeit its licences. It also plans to suspend all activities within 30 days and has begun the process of liquidating all assets, including the sale of its cannabis production facility in Cobourg.
The plant is based on William Street at the former Kraft Foods plant.
Global News Peterborough reached out to the Town of Cobourg for comment. Mayor John Henderson said he has no further comment at this time regarding the company’s announcement.
– Read the entire article at Global News.