Author: CannabisNewsWire (CNW)

About CannabisNewsWire CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge. To receive SMS text alerts from CannabisNewsWire, text “CANNABIS” to 21000 (U.S. Mobile Phones Only) For more information please visit https://www.CannabisNewsWire.com Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

420 with CNW — The US is Awash with Black Market Marijuana

More than a decade after states began legalizing recreational cannabis, the U.S. marijuana industry remains complex. On one side, marijuana has become as common for some as a cold beer or a glass of wine, with regulated companies offering products that meet government standards. Yet, a significant portion of cannabis sales in the country still comes from illegal operations.

Even experienced law enforcement officers sometimes struggle to differentiate legally sourced cannabis from black-market products. For the average consumer, identifying the difference is nearly impossible.

Supporters of cannabis legalization had hoped that the legal industry would quickly dominate, overtaking criminal producers. However, the opposite has occurred. Licensed cannabis businesses frequently find themselves competing against well-organized crime networks, some of which have ties to China. These groups view marijuana cultivation as a relatively low-risk operation with fewer legal repercussions compared to trafficking harder drugs like methamphetamines or fentanyl.

Chinese authorities have previously suggested that the U.S. blames China to detract from its domestic drug-related issues.

Experts note that illicit marijuana sellers have a financial advantage. By avoiding taxes and regulatory fees, they can offer lower prices, making their products more appealing. They also bypass federal laws prohibiting the transportation of cannabis across state borders, allowing them to distribute widely.

As a result, illegally grown marijuana often finds its way onto retail shelves, packaged in a manner nearly indistinguishable from legally regulated products.

With the marijuana market still experiencing hurdles, experts recommend purchasing from licensed stores in states where recreational marijuana is legal. While legal dispensaries may charge higher prices, they offer products that are tested for safety and quality.

Several states, including New York, New Jersey, and California, provide online resources to help consumers identify legitimate sellers. Before making a purchase, it’s wise to verify that a shop is properly licensed. Even when buying from a trusted source, experts suggest asking about the product’s potency and origin.

Over time, they anticipate that purchasing legal cannabis will become easier, drawing comparisons to the history of alcohol regulation in the U.S. Following the repeal of alcohol prohibition in 1933, some states continued to enforce liquor bans well into the 1950s, creating a similarly fragmented legal landscape. Smugglers and bootleggers remained active for years.

Some states are now taking action. To support legal businesses, New York City began cracking down on unlicensed cannabis stores. California reported confiscating cannabis that was grown illegally, valued at around $200 million.

Still, experts predict that illicit cannabis sales will continue to be widespread for a while. Firms like Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) hope that major policy changes at the federal level to permit marijuana sales and consumption would lay the groundwork for decisive action to be taken against the black market flooding the country with illicit products.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Ohio GOP Measure Seeks to Change Voter-Approved Marijuana Legalization Terms

An Ohio Republican senator has put forward a new measure that seeks to limit the amount of homegrown cannabis, lower the permitted THC levels in recreational cannabis, raise taxes, and reroute how the revenue is allocated.

SB 56, introduced by Senator Steve Huffman, would reduce the allowable THC concentration in recreational cannabis extracts from 90% to 70%. The proposal also includes merging the state’s recreational and medical cannabis programs under the state’s Cannabis Control Division.

Huffman explained in his testimony that combining both programs would lead to more uniform regulations on product testing, labeling, advertising, and packaging with a particular focus on children’s protection. He also argued that consolidating the programs would streamline the licensing process, reduce bureaucratic hurdles, and eliminate unnecessary government inefficiencies.

Ohio voters approved the legalization of recreational cannabis through a citizen-led initiative in 2023, and sales officially began in August last year. Because the law was enacted through voter approval, Ohio legislators have the power to modify it.

Under the current law, households are permitted to cultivate up to 12 cannabis plants. However, the proposed bill seeks to cut that number down to six. Huffman expressed concerns that individuals growing cannabis at home might be contributing to illegal sales.

Additionally, the measure would introduce new restrictions on cannabis transportation and possession. It mandates that cannabis must be stored in a vehicle’s trunk while traveling and specifies that its use is only permitted within private residences.

Another key aspect of the bill is a proposed tax increase on recreational cannabis, raising it to 15% from 10%. It also seeks to impose a cap on the number of dispensaries allowed to operate in the state, limiting them to a maximum of 350 locations. Currently, Ohio has 128 licensed dispensaries.

Revenue generated from marijuana sales is currently distributed among several funds: 36% goes toward social equity and job programs in the cannabis industry, another 36% supports host communities, 25% is allocated to substance abuse treatment and prevention efforts, and the remaining 3% funds regulatory oversight. Under Huffman’s proposal, all tax revenue from recreational cannabis sales would be directed to the state’s general fund instead.

Senator Bill DeMora criticized the new bill, arguing that it disregards the will of Ohio voters who overwhelmingly supported legalization. In response, Huffman defended his proposal, stating that he believes the changes address significant societal concerns.

DeMora also inquired about including provisions for expunging cannabis-related convictions, to which Huffman indicated he was open to discussion.

One notable omission from the measure is any regulation on hemp-derived THC products, such as delta-8. Governor Mike DeWine has urged legislators to take action against these products, but Huffman’s bill does not address the issue. A previous attempt to ban intoxicating hemp products stalled in committee during the last legislative session.

Huffman suggested that a separate measure focusing on hemp regulations may be introduced in the near future.

The marijuana ecosystem, including leading entities like SNDL Inc. (NASDAQ: SNDL) will be watching how the lawmakers discuss and agree on tangible ways to implement legalization, hopefully in a way that will not disappoint the people who expressed their views at the ballots.

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420 with CNW — Patchy Marijuana Laws Could Expose Consumers to Contaminants

A recent Gallup survey indicates that marijuana use in the U.S. has doubled over the last ten years. In several states, cannabis is legal, and most Americans now consume it as often as they would wine or beer. However, finding safe and properly regulated marijuana products can be a challenge.

While marijuana carries health risks regardless of contamination, researchers warn that its increasing potency and widespread use can negatively impact mental health and brain function. An additional concern for users is the presence of harmful substances such as pesticides, heavy metals, and molds in vape products and edibles. Although state regulators are working to address these issues, experts suggest there is still a lot to be done.

Here’s a breakdown of key points regarding the safety of cannabis products and the current regulatory landscape.

The complexity of marijuana regulation

Each state has its own approach to regulating cannabis, which makes enforcement inconsistent. Regulators aim to keep marijuana free from contaminants that can seep in from soil. These substances can pose short-term risks, such as food poisoning symptoms, and long-term risks, including cancer and neurological issues.

Federal law complicates regulation since cannabis remains illegal at the national level. Not all states have legalized marijuana, and those that have have quite different laws.

Research conducted in 2022 found more than 600 contaminants are regulated across 30 states, but each jurisdiction monitors only between 60 and 120 contaminants. This means a pesticide considered unsafe in one state might go unnoticed in another.

However, merely increasing the number of contaminants tested does not necessarily guarantee safer products. Scientists are still determining which substances pose the greatest threats.

The persistence of the black market

Due to inconsistent state regulations and the continued federal ban, legally produced cannabis cannot be transported across state lines. This has allowed underground markets to thrive, often backed by criminal organizations. Many of these unregulated products are cultivated and processed under unsanitary conditions, with poor working environments and banned pesticides. They also lack reliable potency information.

Even many seemingly legitimate storefronts sell black-market cannabis, making it difficult for consumers to determine whether they are purchasing legally regulated products.

Improvements in legal cannabis access

Experts anticipate that as time goes on, navigating the legal cannabis market will become easier for consumers. Drug policy researchers note that transitioning from prohibition to legalization is a gradual process.

Over time, legal marijuana businesses are expected to outcompete illicit sellers, making it simpler for consumers to identify safer products.

The benefits of purchasing legal marijuana

Where available, legal marijuana is generally safer because it undergoes testing for contaminants such as mold and pesticides. States monitor these products and remove unsafe batches from shelves. Licensed growers and sellers have an incentive to maintain high standards to protect consumers and continue operating.

For instance, California saw over 60 cannabis product recalls last year, including flower buds, edibles, pre-rolls, and vape items—up significantly from just four recalls in 2023. Officials attribute this increase to expanded testing efforts.

Similarly, Maine, which has a newer regulatory system, had its first-ever marijuana recall last year due to mold concerns.

Although researchers continue to study the effectiveness of consumer protections, purchasing cannabis from licensed stores remains the safest option. Regulated products significantly reduce the likelihood of exposure to harmful contaminants, providing consumers with greater peace of mind.

If the federal government takes too long to reform its marijuana laws, the risk of contaminated products will only grow and it could reverse some of the gains that the reform movement has registered over the years. That would be a pity, because the business opportunities that were opening up at a fast pace for marijuana companies and also allied actors like Innovative Industrial Properties Inc. (NYSE: IIPR) could begin to dwindle as consumers become wary of the available products.

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420 with CNW — New Hampshire House Committee Discusses Measure to Legalize Recreational Cannabis

A House committee in New Hampshire recently convened to discuss one of three different proposals aimed at legalizing recreational cannabis in the state. The committee reviewed House Bill 186, introduced by Representative Jared Sullivan.

The proposal would permit adults from age 21 to possess up to ten grams of concentrate and two ounces of cannabis flower. It would also allow individuals to cultivate up to six marijuana plants for personal use at home.

Consumers would have the opportunity to purchase lab-tested and labeled products from stores regulated by the state. HB 186 is one of two legalization measures that Representative Sullivan has presented in this legislative session. The other proposal, House Bill 198, would legalize home cultivation and possession but does not include provisions for commercial sales.

The legislation discussed this week draws heavily from a similar measure that legislators nearly passed in the previous session. House Democrats, however, ultimately put the bill on hold after some of them voiced misgivings about its suggestion of a state-run franchise system.

Sullivan highlighted key changes in the new measure, including a lower tax rate. Instead of creating a new, marijuana-specific tax, the bill proposes using the state’s existing meals and room tax. Additionally, it seeks to establish an independent marijuana commission to set regulations and oversee the market, a shift from last year’s proposal, which would have placed oversight under the state’s liquor commission.

The committee listened to public testimony but didn’t make any immediate decisions on HB 186. Committee Chair Representative John Hunt stated that the bill would next be examined by a liquor subcommittee. Committee member Representative Merryl Gibbs expressed approval of the updated proposal, praising both the formation of a commission and the decision to base the marijuana tax on the meals and rooms tax.

Representative Heath Howard, co-sponsor of the measure, voiced his support, stressing the importance of providing adults not only with the right to possess cannabis legally but also with a regulated way to access it.

Former Representative Joe Hannon, who has a medical background and previously served on a state opioid committee, also backed the measure. Hannon noted that, without legal options in the state, residents often travel to nearby states to purchase marijuana legally, only to bring it back home.

The state Association of Chiefs of Police provided the only testimony opposing the bill during the hearing.

A poll conducted in June revealed that about 65% of New Hampshire adults support marijuana legalization, with nearly 61% backing the previous bill, House Bill 1633.

The entire marijuana industry, including firms like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) will be hoping that the lawmakers in New Hampshire keep the interests of their voters in mind while considering the legalization bills before them.

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420 with CNW — Colorado Springs Residents Sue City Over Vote to Repeal Recreational Marijuana

Two residents of Colorado Springs have taken legal action against the city over an upcoming ballot initiative in April that seeks to overturn a voter-approved policy permitting recreational cannabis sales.

The case was submitted on Friday on behalf of Adam Gillard, El Paso County Progressive Veterans’ executive director, and Renze Waddington, a medical cannabis dispensary owner. It claims that the City Council disregarded Colorado’s Amendment 64, which states that any local ballot initiative that seeks to outlaw the sale of marijuana for recreational purposes must be on the ballot for a general election in an even-numbered year.

“This council’s attempt to undo what voters have already decided is not only shocking but also unconstitutional,” stated Tom Scudder, head of the Colorado Springs Marijuana Association. “We expect the courts to uphold the will of the people and make it clear to the Council that they don’t hold unchecked power over the community.”

In November, voters passed Question 300 by a margin of roughly 22,000 votes, allowing existing medical cannabis dispensaries to sell recreational cannabis. At the same time, a competing measure aimed at banning recreational sales was rejected. Additionally, Question 300 included a provision imposing a 5 percent recreational sales tax to fund public safety initiatives, mental health programs, and veterans’ PTSD treatment.

However, on January 28, the council voted to place the measure back on the ballot. Some council members argued that the presence of two cannabis-related measures on the November ballot may have caused voter confusion.

The lawsuit contends that such a question is not legally allowed to appear on a ballot during this type of election.

According to the legal challenge, the referred initiative essentially seeks to reverse Question 300, which is equivalent to banning recreational cannabis sales. The state constitution clearly states that any proposal to prohibit retail cannabis shops must be placed on a general election ballot held in an even-numbered year.

Additionally, the complaint argues that the ballot proposal is deceptive since it fails to disclose to voters that Question 300’s repeal would also prevent new recreational sales tax money from being collected. The plaintiffs are requesting that the court either block the repeal measure from appearing on the ballot or mandate a revision to the ballot title.

The city is required to send out ballots to military personnel and overseas voters 45 days before elections by February 14. Industry actors like Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) will be following the events in Colorado Springs and will hope that the will of the voters isn’t thwarted.

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420 with CNW — Why 2025 Could Be a Great Year for Marijuana Investors

The marijuana capital markets have encountered substantial hurdles in recent years. Investors who have been in the industry since 2019 have witnessed every phase of the market—from thrilling peaks to somber valleys.

Notwithstanding these swings, the present environment presents a remarkable chance for strategic investors because of alluring valuations, creative deal formats, and the capacity to assist top-tier management teams.

The struggle for capital access has significantly altered the industry’s competitive dynamics. Businesses have had to either adapt or collapse as a result of the drying up of various funding sources during the last two years.

Two distinct categories have emerged in this evolving market. First, resilient companies have taken proactive steps to streamline operations, embrace financial discipline, and build sustainable, profitable businesses. Challenging market conditions often highlight outstanding leadership, and these teams are proving their capabilities by driving profitability and managing complexities effectively.

On the other hand, distressed resources have surfaced as companies unable to withstand market pressures face significant financial difficulties. While this presents hardships for some, it creates an avenue for investors to acquire undervalued assets at better discounts, offering the potential for turnarounds or investments.

Uncertainty and fear have created an ideal environment for investors willing to take strategic risks. Historically, market downturns have led to some of the most rewarding investment opportunities, and this cycle will likely be no different.

Several macroeconomic factors are contributing to the industry’s potential for growth. First, the market continues to expand as more states approve recreational and medical marijuana. As of 2024, 41 states have enacted some form of cannabis reform, with the regulated market in the U.S. growing by $2.6 billion to reach $31.4 billion. Analysts project an additional 12.1% growth this year, bringing the market to $35.2 billion.

Second, progress on cannabis policy reform is making headway, with bipartisan support increasing for initiatives like federal rescheduling and SAFE Banking. A move from Schedule I to III under the CSA could significantly reduce tax burdens, improving profitability for businesses across the sector.

Lastly, shifting consumer attitudes are fueling industry growth, with 88% of adults in the U.S. supporting marijuana legalization. This shift indicates strong long-term potential for the sector.

While many investors chase rapidly rising markets, true opportunities often emerge during downturns. Investors are now favored in deal structuring, and valuations have stabilized to more reasonable levels. Many businesses are discovering a more obvious route to profitability as the industry develops.

Enterprise value-to-revenue multiples for American cannabis operators have declined to historically low levels, in some cases dropping from all-time highs of around 6X to nearly 1X. Moreover, the potential for federal policy changes represents a significant plus. If measures like rescheduling are enacted, they could attract institutional funding, which has mostly stayed out of the market.

An attractive investment case is created by the combination of disciplined leadership, favorable valuations, and possible regulatory developments. While the industry has faced considerable challenges, these difficulties have also opened doors for individuals prepared to work through the complexities.

With additional states legalizing cannabis, bipartisan policy support, and resilient management teams, this year appears to be pivotal for the industry. The cannabis capital markets may have been turbulent, but the opportunities available today are too significant to overlook. By investing today, businesses are not only setting themselves up for success but also fostering the expansion of a sector that is expected to develop in the future.

Leading marijuana companies like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) will be looking to leverage any favorable changes in the market so that they can bolster the standing of their brand.

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420 with CNW — Poll Finds Cannabis Helps Most People Cut Their Alcohol Intake

A recent survey reveals that over 50% of cannabis users reduce or completely stop their alcohol consumption after using marijuana. The poll, conducted by NuggMD, a marijuana telehealth platform, lends credence to the expanding theory of a substitution effect, according to which people are increasingly choosing marijuana because they believe it to be safer compared to alcohol.

When asked about the impact of marijuana use on their drinking habits, 54% of respondents reported drinking less or completely stopping. Meanwhile, 22% stated that cannabis did not affect their alcohol consumption, and 14% said it depended on the situation. Only 9% indicated that they consumed more alcohol after cannabis use. The survey was conducted between January 9 and 12, gathering responses from 381 marijuana users.

These findings align with an expanding body of research showing that user behavior is evolving as more states legalize marijuana, allowing greater access to regulated products.

For instance, a study backed by NIDA and published last month discovered that young adults are almost three times as likely to consume cannabis daily or almost daily than alcohol. The study provided more detailed, age-specific data compared to a previous study, which showed that daily marijuana use among Americans has surpassed daily alcohol consumption. Furthermore, alcohol consumers were more likely than cannabis users to acknowledge the potential benefits of reducing their intake.

Similarly, research published in the Addiction Journal last May found that more American adults now use cannabis daily as compared to alcohol.

Another study, conducted by Bloomberg Intelligence (BI), suggests that marijuana is increasingly replacing alcohol as legalization spreads and attitudes toward harm change. The survey also found that many people substitute cannabis for painkillers and cigarettes.

According to a different BI research published in September, the alcohol business is facing an increasing amount of competition as a result of the burgeoning legalization movement. The results of the survey indicate that more people are choosing cannabis over alcoholic drinks like wine and beer.

The trend is not limited to the U.S. Research from Canada, where cannabis is legal federally, revealed that legalization led to a decrease in beer sales, further indicating a substitution impact.

Additionally, a survey conducted by Morning Consult and APA last year revealed that Americans consider cannabis significantly less harmful than opioids, cigarettes, and alcohol. Respondents also rated marijuana as less addictive than the others.

These poll findings confirm some of the trends that industry firms like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) have been observing in the jurisdictions in which they operate.

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420 with CNW — Scientists Link Marijuana Smoke at Home to Secondhand Exposure in Children

A recently published JAMA study explored the effects of home marijuana smoking on children’s exposure to secondhand marijuana smoke (SHCS). Researchers in the U.S. used urinary biomarkers to assess the levels of delta 9 THC and its metabolites in kids, aiming to measure the extent of exposure and show the importance of preventive actions to protect their health.

The study analyzed Project Fresh Air data, which included households in San Diego County with children under 14 and at least one tobacco smoker. Researchers combined air particle monitoring data with parental reports of marijuana use at home to assess the SHCS exposure.

THC and its metabolites, such as 11-nor-9-carboxy and 11-hydroxy-THCs, which are indicators of SHCS exposure, were detected in 275 urine samples.

The researchers employed a residualization technique to estimate in-home marijuana smoking by combining data on air particles with self-reported smoking episodes, controlling for other sources including tobacco and events that produce particulates around the house. Additionally, smoking events were tracked using air particle monitors, and their correlation with reported marijuana usage was assessed.

Additional data collected included air nicotine levels, household ventilation practices, parental education, and income. Logistic regression was applied to determine the likelihood of detectable TTE based on in-home marijuana use, while linear regression was used to quantify exposure in children.

The results revealed that children living in homes where marijuana was smoked inside were substantially more exposed to SHCS, as indicated by traces of THC biomarkers in the urine. Among the 275 participants’ urine samples, 27.3 percent showed measurable levels of cannabinoids.

Compared to households without marijuana use, those reporting in-home use had a five-fold higher likelihood of having children with detectable TTE. Furthermore, children were 2.5 times more likely to have detectable TTE levels for every daily marijuana smoking event.

Children below six years old were particularly at risk due to spending more time indoors. Sensitivity analyses confirmed the consistency of these findings across various measures of smoking events. While non-specific smoking events also contributed to exposure, self-reported in-home marijuana smoking was more directly associated with THC biomarker detection.

The study underscored the health risks of indoor marijuana smoking for children, highlighting the need for policies and measures to reduce SHCS exposure in homes. The researchers emphasized that limiting marijuana use indoors could significantly lower children’s exposure to dangerous chemicals and called for further studies to assess the long-term effects of such exposure.

This study highlights why industry actors like Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) wish to see the substance federally legalized in the U.S. and other jurisdictions so that extensive research can be conducted and various steps, such as licensing consumption lounges, are taken to limit any risks that could result from people being restricted to only consuming marijuana in their homes.

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420 with CNW — Pesticides, Bacteria Found in Marijuana Available in Dutch Coffee Shops

An investigation into marijuana sold in Dutch semi-legal coffee stores has uncovered a range of contaminants, including pesticides, lead, and harmful bacteria. The Netherlands Institute of Mental Health and Addiction study was designed to find a “baseline” for contamination levels typically found in cannabis products.

The findings will guide a trial launching in April, where coffee shops in 10 municipalities will offer marijuana grown by licensed producers under strict contamination limits.

Researchers tested a hundred and five marijuana samples, including weed and resin, purchased randomly from various sellers. Approximately 20% of the samples were found to have microbiological breaches such as fungal residue or Staphylococcus aureus bacteria. Pesticides were detected in about one-third of the samples, while one hashish sample contained a lead concentration of 28.5 mg/kg—nearly six times higher than the permissible level for the upcoming trial.

While cannabis is widely perceived as legal in the Netherlands, the reality is more nuanced. Since 1976, a tolerance policy has allowed marijuana and hash sales in regulated “coffee stores,” but cultivating more than 5 plants remains illegal. Consequently, coffee shops are forced to procure their supplies from unregulated sources, which often involve criminal networks and raises concerns about product contamination and safety.

The controlled marijuana trial aims to eliminate reliance on the illicit market and ensure cleaner products. Ten approved growers who have passed criminal background checks will be licensed to sell marijuana to participating coffee shops. Four of these growers are ready to begin supplying cannabis products, which will undergo testing for contaminants such as micro-organisms, heavy metals, pesticides, and aflatoxins—dangerous toxins made by fungi.

The discovery of Staphylococcus aureus in some samples highlights the importance of proper hygiene during all stages of cannabis production, including cultivation, packaging, and distribution. However, Pieter Oomen, one of the study’s authors, emphasized that the study was exploratory and does not suggest that all marijuana products sold in the Netherlands are contaminated.

The researchers concluded that the health risks posed by contaminants are relatively minor compared to the overall impact of smoking cannabis, particularly when mixed with tobacco. “The effect of contaminants depends heavily on the immune system of the individual,” Oomen explained.

“The risks added by these contaminants are not likely to outweigh the inherent risks of marijuana use itself, which include addiction, anxiety, and impaired attention that can lead to accidents. If you want to avoid health risks entirely, the best choice is to abstain from drug use,” he added.

The findings of this baseline study make a strong case for the creation of a regulated marijuana market where licensed companies like SNDL Inc. (NASDAQ: SNDL) are allowed to mushroom and operate while adhering to strict product standards so that consumers are safeguarded from exposure to high levels of contaminants.

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420 with CNW — Nebraskan Lawmakers Consider Proposals to Implement Voter-Approved Medical Marijuana Program

Three pieces of legislation have been introduced in Nebraska aiming to implement medical marijuana legalization and regulation initiatives approved by voters in the November election.

The legislation, sponsored by Senators Terrell McKinney, Ben Hansen, and Danielle Conrad of Omaha, Blair, and Lincoln, respectively, center on setting up registry systems and outlining the Nebraska Medical Marijuana Commission’s regulating and licensing responsibilities.

The proposed bills—LB 705 (McKinney), LB 677 (Hansen), and LB 651 (Conrad)—would allow residents to acquire registry cards after obtaining a healthcare provider’s written recommendation, confirming their eligibility as a medical cannabis patient. The registry system would also cover caregivers, including those assisting minors.

Currently, the law requires the commission to finalize criteria for approving or denying applications for marijuana businesses by July 1, with licensing anticipated to begin by October 1. However, the new proposals suggest delaying the licensing process until January 1, 2026, to allow more time for regulatory preparations.

A separate proposal, LB 483, introduced by Senator Jared Storm (David City) aims to restrict the amount of delta-9 THC that can be used for medical purposes to 300 milligrams and only permit the use of liquid tinctures or pills. This restriction significantly narrows the scope compared to what voters had approved, which was overwhelmingly supported in the recent ballot measures.

Senator Conrad noted that some patients cannot consume cannabis in pill form due to medical conditions, prompting her to draft a more expansive bill to align with voters’ wishes. Senator Hansen highlighted his commitment to honoring the people’s will, citing his previous work with Senator Anna Wishart on similar efforts.

The voter-approved measures remain under legal scrutiny, with challenges still pending in state and federal courts. Attorney General Mike Hilgers and Governor Jim Pillen have raised concerns about conflicts with federal law, which classifies cannabis as a Schedule I substance. Conrad dismissed this as a political viewpoint, arguing that states have considerable authority under the Constitution to create such programs.

The measures from Hansen, McKinney, and Conrad include protection from arrest for caregivers, patients, and officials involved in medical cannabis. They would legalize medical cannabis use for patients, allowing up to 5 ounces, with exceptions for higher quantities based on a physician’s recommendation.

Each bill outlines licensing structures and fees. Conrad’s plan features five license categories: testing facility, cultivator, product manufacturer, dispensary, and vertically integrated businesses. Hansen’s bill adds a transporter license. McKinney introduces tiers for businesses—micro, small, and large-scale—and reserves over half of the licenses for social equity candidates from communities disproportionately affected by drug policies.

Tax revenue from cannabis sales would be redirected differently under each bill. Hansen prioritizes property tax relief, while McKinney and Conrad propose reinvesting funds into the cannabis program. McKinney’s plan also includes automatic expungement for specific marijuana-related offenses.

Changes or revisions to these laws need a supermajority vote in the legislature since they are the result of initiatives that were passed by the electorate. The provisions will be self-enforcing if legislators do nothing, guaranteeing that they are implemented as intended.

When the program is finally launched, numerous business opportunities will become available in the state, including for companies operating like Innovative Industrial Properties Inc. (NYSE: IIPR) that have found a niche in serving marijuana companies.

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