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 – State Statistics Reveal Less than 50 Percent of Ohio Patients Have Purchased Medical Marijuana

Medical marijuana was legalized in Ohio in 2016 and sales only started this year. Figures coming in from the state show that only 15,339 of the patients who hold medical marijuana cards have so far visited a dispensary and purchased medicinal marijuana products. Several factors can explain why just 49 percent of the cardholders have bought medical marijuana.

First, very few medical marijuana dispensaries have opened their doors to patients. Out of 56 dispensary licenses which were issued, just a paltry 15 establishments have started operating. These few dispensaries aren’t evenly distributed across the state, and this may explain why few patients have visited them and bought products.

Secondly, the price of the available products is still too high for many patients. The high prices may be resulting from the limited competition between the few dispensaries which have opened. Additionally, not many growers and processors are currently operating in the state. Prices are expected to reduce as more growers and processors come on board to supply the dispensaries in the state.

The state agencies involved in regulating the medical marijuana program also released other statistics related to the program.

For example, out of the 31,075 patients registered on the medical marijuana program, 171 have a diagnosis for a terminal illness, such as cancer. This could suggest that these people are taking medical marijuana to deal with pain.

The medical marijuana register also has 2,109 people registered as caregivers. Caregivers buy and administer medical cannabis to minors or people whose illness is so severe that they cannot buy and administer the medical marijuana by themselves.

In terms of sales, $5.8 million has been recorded as the revenue earned by medical marijuana businesses in the first four months of 2019. This is way below the potential of the industry since Ohio is ranked 7^th in the country in terms of its population and GDP.

In total, 750 pounds of marijuana plant material were sold by the medical cannabis dispensaries in the past four months. 3,610 units of manufactured cannabis products, such as oils and tinctures, were also sold.

Larger volumes of products are expected to be sold as medical marijuana becomes more readily available and as more people qualify for medical cannabis cards after more qualifying conditions were added to the initial list of 21 qualifying conditions.

TransCanna Holdings Inc. (CSE: TCAN) and Therma Bright Inc. (TSX.V: THRM) (OTC: THRBF) encourage all the entities that have received medical cannabis licenses to start operations quickly so that they can contribute to the growth of the medical marijuana industry in Ohio.

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420 with CNW – New Jersey May Turn to a Referendum to Legalize Recreational Marijuana

As it becomes increasingly clear that the bill to legalize recreational marijuana is unlikely to get enough support in the New Jersey senate, lawmakers are beginning to consider the possibility of letting voters make the decision through a referendum in 2020.

It is now six weeks since a vote on the legalization bill was suddenly called off, but legislative leaders and Gov. Murphy don’t seem to have made any progress is securing the “2-5 votes” needed to guarantee that the legalization bill will pass on the senate floor. The Assembly doesn’t have the same problem and they are just waiting for the senate to be ready before they vote to pass the bill.

That wait doesn’t show any signs of ending soon, and some lawmakers are beginning to float the possibility of letting voters have the final say on marijuana legalization.

New Jersey is unique from other states because voters cannot initiate a referendum or ballot measure as it is known elsewhere in the country. Instead, legislators have to agree and draft the appropriate referendum question so that voters cast their ballots for or against the question presented.

Gov. Murphy laid down a deadline of end of May and threatened to expand the medical marijuana program administratively if the legalization bill isn’t passed by that time. Expanding the medical marijuana program would most likely spell doom for legalization by legislative means since there will be no urgency to debate and pass a standalone recreational marijuana legalization bill.

Sen. Nicholas Scutari (D-Union County), who drafted the legalization bill, is of the opinion that pursuing legislative means to legalize recreational marijuana would bring better and faster results than using a referendum to change the law.

Scutari added that for a referendum to be binding, it needs to be drafted to the effect that the constitution would be amended to allow recreational marijuana in the state. The state should only resort to a referendum if all else fails, he affirmed.

Gov. Phil Murphy is interested in seeing the recreational marijuana bill passed, but the cries of patients who want to see the medical marijuana program expanded may force him to act on having the medical marijuana expansion bill passed on its own. For example, the six existing dispensaries are woefully inadequate to serve the more than 40,000 medical marijuana cardholders.

Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF) and Sugarmade Inc. (OTCQB: SGMD) call on the lawmakers to put aside their differences so that the people of New Jersey aren’t forced to wait for years before recreational marijuana is legal in the state.

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420 with CNW – Medical Marijuana Edibles Now Legal in Maryland

Edible medical cannabis products are now legal in Maryland after Gov. Larry Hogan signed two related bills on Monday this week (May 13). Medical marijuana businesses stand to boost their revenue potential with the addition of these products to their offerings.

The medical marijuana edibles bill was signed along with a related antitrust law on the same day. There are three major highlights of those two laws as explained below.

First, no single individual or business entity will be allowed to get more than four medical marijuana dispensary licenses in the state. This provision is intended to spread the economic opportunities in the industry to as many individuals as possible. The lawmakers didn’t want to see a situation in which “Big Marijuana” sets foot in the state and dominates the entire industry, to the detriment of small players.

Another provision states that the regulators of the medical marijuana industry will not grant an applicant more than one cultivation or processing license. This clause is also intended to ensure that there is rigorous competition in the industry since many players will be involved in cultivating and processing medical marijuana in Maryland. Innovation will flourish as a result, because growers and cultivators will be hard at work looking for more cost-effective ways to grow or process medical marijuana.

Universities and other research institutions were also allowed to purchase medical marijuana for purposes of conducting research. This provision clears any gray areas which may have existed in the medical marijuana laws that set requirements for a person who wishes to buy, possess and consume medical cannabis.

Under the previous law, research institutions couldn’t get their hands on medical marijuana because they aren’t patients, and they therefore needed to go through a lengthy, often unclear process to get special permission from regulators in order to access medical marijuana. The legal change clarifies how research institutions can access medical marijuana.

Medical marijuana sales started towards the end of 2017 across the state. By the end of 2018, medical marijuana sales grossed nearly $110 million. Figures released by the state show that the first quarter of this year (2019) has seen medical cannabis sales totaling $49 million. The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) and The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) hope that the passing of these two laws will provide an added impetus to the industry so that the annual sales hit higher and higher levels as the industry matures.

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420 with CNW – Medical Cannabis Home Delivery Service Begins in Michigan

Medical marijuana provisioning centers (dispensaries) have started delivering medical cannabis to the front doors of patients who order for products online. Utopia Gardens LLC, based in Detroit, was the first dispensary to take advantage of the legal changes permitting medical cannabis delivery.

Donnell Cravens, the manager of Utopia Gardens, explains that home delivery was a better way to serve patients, some of whom were undergoing chemotherapy which made it hard for them to move out of their homes in order to buy medical marijuana products.

According to LARA, the state body charged with regulating the medical cannabis industry in Michigan, three dispensaries have so far received licenses to start offering medical cannabis home delivery services. The three companies are Utopia Gardens, BotaniQ (also based in Detroit) and Lake Effect Group which is based in Portage.

Patients who wish to take advantage of the home delivery service must have their medical cannabis cards verified by the dispensary before the products are dispatched. Deliveries can only be done to the address indicated on the medical marijuana card, so patients need to update their records with LARA if they are to benefit from this service.

Some of the first patients to place and receive their orders from Utopia Gardens in Detroit described the online ordering process as “easier than making a purchase through Amazon.” Any products ordered typically take 45 minutes to be delivered to one’s address.

While the delivery service itself is free, there are minimum order sizes depending on where a patient wants the medical cannabis to be delivered. For example, those patients who reside within Wayne County must place an order that is worth at least $50. However, those who stay in Oakland and Macomb Counties must up their orders to at least $100 so that the cost of delivering the products doesn’t erode the margin of the provisioning center.

Patients can also call the provisioning center to place their order instead of going online. In such a case, the caller will be asked to provide details which will enable the dispensary to verify that he or she is a registered patient and is allowed to purchase, possess and use medical marijuana in Michigan.

Donnell Cravens also revealed that patients who order for medical cannabis home deliveries must be prepared to pay for the products by debit card. This requirement is intended to protect delivery staff from any security risks which may result from receiving cash from patients who have received their medical cannabis orders.

Redfund Capital Corp. (CSE: LOAN) (OTCQB: PNNRF) (Frankfurt: O3X4) and Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) congratulate Utopia Gardens LLC upon a smooth start to the home delivery service. The positive feedback from patients speaks volumes about how much thought went into debuting the service.

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420 with CNW – Patients Still Face Challenges Accessing Medical Marijuana, Toronto Conference Attendees Reveal

One would imagine that once a country or jurisdiction legalizes medical cannabis, then the patients there will find it easy to access prescription medical cannabis products. Sadly, this isn’t the case as panelists and attendees of the Medical Cannabis Conference in Toronto last week revealed.

The first major challenge that medical cannabis patients face is the high prices of products. A clear example of this is in Canada which has had medical marijuana since 2001.

Gerald Major, who is the president of a medical cannabis advocacy group in Canada called Canadians for Fair Access to Medical Cannabis, revealed during the conference that the legalization of recreational marijuana in Canada has made matters worse for patients taking medical cannabis.

For example, the high taxes imposed on recreational marijuana have increased the cost of medical marijuana as well. Additionally, the supply shortages in the recreational segment have also reduced inventory for the medical cannabis retailers, and this has forced patients to underdose or go without medical cannabis for a while.

Furthermore, restrictions that didn’t exist earlier have now been imposed on medical marijuana users as well. For example, no exceptions for medical cannabis patients have been made in the rules governing driving while impaired. Gerald Major says such traffic stops are likely to victimize patients using medical cannabis and yet the patients face a bigger impairment threat from the conditions which they are treating rather than the cannabis medication that they consume.

Patients using medical cannabis in Europe also don’t seem to be faring any better. A panelist from Germany and another from the UK revealed that the red tape one must bear in order to get a medical cannabis prescription is extraordinary.

For example, in the UK, specialist doctors must complete a lot of paperwork to the effect that conventional treatment options have been exhausted and the last resort is to try medical marijuana. The requirements make doctors responsible for treating patients with medical marijuana, but doctors are reluctant to prescribe medical marijuana because they don’t have sufficient literature to enable them feel comfortable about prescribing medical cannabis.

In addition to that, the cost of medical marijuana is very high in European where it is legal, and more than a third of all reimbursement claims to insurance companies are rejected for no clear reason. The lack of insurance cover for medical cannabis has put medical marijuana products out of reach for most patients because the cost is prohibitive.

Sproutly Canada Inc. (OTCQB: SRUTF) (CSE: SPR) (FRA: 38G) and SinglePoint Inc. (OTCQB: SING) agree with the panelists that urgent steps need to be taken to remove all the barriers to access to medical marijuana in all jurisdictions where it is legal.

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Next-level cannabis investor forum MjMicro debuts in NYC on June 25

MjMicro Conference (www.mjmicro.com), the next-level investor forum for publicly traded cannabis companies, debuts in New York City on June 25 at the Westin Grand Central Hotel. This one-day conference provides an exceptional opportunity for cannabis-related public entities to connect with private capital investors and also features presentations from noted industry experts.

The MjMicro Conference is an invitational networking forum exclusively created to enable best-in-class and emerging public companies in the cannabis industry to meet with high-net-worth investors, venture funds and family offices, helping drive private investment capital into public entities, promote trading liquidity, and increase media and analyst coverage.

“Our goal is to provide both the most exciting and diverse range of public company investment opportunities, ranging from micro to mid-cap companies that have proof of concept, revenue streams, audited financials and public market liquidity,” noted George Jage, president of MjLink.com and producer of MjMicro. “This event creates direct C-suite access for investors to provide insight into their vision, strategy and performance.”

Confirmed presenting companies include 1933 Industries (CSE: TGIF) (OTCQX: TGIFF), CannAmerica Brands (CSE: CANA) (OTCQB: CNNXF), Cannex Capital Holdings (CSE: CNNX) (OTC: CNXXF), Cardiol Therapeutics (TSE: CRDL) (OTC: CRTPF), Dixie Brands (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), Emerald Health Therapeutics, FSD Pharma (CSE: HUGE) (OTCQB: FSDDF), Helix TCS Inc. (OTCQB: HLIX), High Tide Inc. (CSE:HITI) (OTCQB:HITIF), House of Jane, Province Brands of Canada, MJ Freeway, Tauriga Sciences (OTCQB: TAUG), United Cannabis Corp. (OTCQB: CNAB), and Vireo Health (OTC: VREOF).

“FSD Pharma, a spotlight presenter, is endemic of the exciting opportunities in the market. They are a Canadian licensed producer developing cutting-edge technology and conducting research related to the treatment of chronic pain, fibromyalgia and other medical conditions that are typically treated with pharmacological applications,” noted Todd Markey, director of investor relations at MjMicro.

“There are over 400 cannabis-related public companies in the market today, and we project that anywhere between 100 and 200 others will get listed in the next 24 months,” stated Jage. “There has been a race for cannabis companies to access the public capital markets, but the industry lacks the access to institutional capital that you would expect in such a fast-growth industry. This event provides the solution on both sides of the table.”

MjMicro is scheduled to be held four times a year with events in New York, Beverly Hills, West Palm Beach and Seattle. MjMicro is produced by MjLink.com Inc., which is a wholly owned subsidiary of Social Life Networks (OTC: WDLF).

To learn more about MjMicro Conference or to request an invitation to attend, sponsor or present, please visit https://www.mjmicro.com.

About MjLink.com Inc.

Social Life Network (OTC: WDLF), a cloud-based social media and social network technology company based in Denver, Colorado, announced on Sept. 25, 2018, that the Company had spun its cannabis technology division out of the parent company and incorporated MjLink.com Inc., a Delaware Corporation, as its wholly owned subsidiary. MjLink operates as a multinational cannabis technology and media organization with two separate social networks: WeedLife.com, a consumer-to-consumer network; and MjLink.com, a business-to-business social network. On April 4, 2019, the president of MjLink, George Jage, announced the launch of a new division of the Company that is focused on providing the industry with best-in-class financial, B2B and B2C cannabis-centric events that complement the Company’s global social networks.

For more information about Social Life Network and to download the MjLink Investor Deck, visit https://social-life-network.com

Disclaimer

This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company’s analysis of opportunities in the acquisition and development of various project interests and certain other matters. No information in this press release should be construed as any indication whatsoever of the Company’s or MjLink’s future financial results, revenues or stock price. There are no assurances that the Company will successfully take MjLink.com, Inc public. These statements are made under the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. The relationship between Social Life Network and the other companies mentioned currently does not extend beyond inviting them to send representatives to speak at the MjMicro Conference.

Contact:

Investor Relations:
IR@Social-Life-Network.com
855-933-3277

Corporate Communications:
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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.

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This article contains Third-Party Content submitted by third parties, including articles submitted through the CNW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of CNW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and CNW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by CNW providing you with this internet portal that makes accessible to you the ability to view third-party content through the CNW site, CNW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. CNW expressly disclaims liability relating to such third-party content. CNW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, CNW reserves the right to remove third-party content at any time in its sole discretion.

Hemp Companies Move to Tackle CBD Shortfall

CannabisNewsWire Editorial Coverage: A boom in demand for cannabidiol (CBD) has created an alarming shortage, which savvy hemp companies are aggressively looking to solve.

Cultivation supplies company Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) has acquired several other suppliers, allowing it to benefit from economies of scale. Canadian cultivator Tilray Inc. (NASDAQ: TLRY) is investing heavily in new growing space. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has expanded from Canada into the United States and is collaborating with other companies to meet demand. Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has received a substantial inflow of funds from a tobacco company and is investing some of it in R&D. Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) (CSE: CWEB) is focusing on growing high-quality hemp to supply a range of novel products.

To view an infographic of this editorial, click here.

Demand for CBD has soared thanks to consumer interest.
Legalization nationally in the United States through the farm bill has led to more cultivators and a rising demand for cultivation supplies.
Companies are rising to meet these supply challenges through expansion, consolidation and innovation.

CBD and the Challenge of Demand

The ability to meet customer demand is one of the fundamental challenges for any industry. If businesses can’t keep up with demand, they don’t just miss out on an immediate opportunity for profit, they risk losing the attention of customers in the long term.

For a relatively new product such as CBD, that problem is particularly acute. Though demand for the product is currently high, the industry is not well established, making it critical that companies reinforce customer habits through supplying the products they’re seeking. Being new, however, makes the supply problem particularly challenging, as production techniques and supply pipelines are not fully developed for massive consumption. The future of the industry will depend upon which companies are able to meet this demand and how they do it.

The CBD Boom

The CBD industry has seen a staggering boom in the past. This growth has created opportunities for companies such as brand expansion and acquisition firm Sugarmade Inc. (OTCQB: SGMD), which is making a strong play into the sector, as well as new companies focused purely on CBD.

The demand for CBD is easy to explain. Recent research into its uses has suggested that this naturally occurring compound can be useful in a range of health and well-being roles, including managing pain and helping users to relax. This compelling research has naturally drawn the attention of customers seeking new options to improve the way they feel, especially those consumers who prefer to avoid heavily processed chemicals.

Publicity around CBD has further raised demand. Some of this attention comes from emerging CBD companies, whose marketing efforts have raised the profile not just of their own brands but of the sector as a whole. Additional exposure has come from the battle to make hemp cultivation legal across the United States. Because hemp provides most of the available CBD, this process also brought hemp production into the public spotlight. Companies such as Sugarmade found their businesses attracting far more attention — so more demand.

This demand culminated with the passage of the 2018 Farm Bill. Signed into law just before Christmas, the bill legalized the production of hemp on a national level. This makes hemp production a far more straightforward and reliable source of income, and will allow more farmers to benefit from a profitable cash crop. As companies rush to enter the sector or expand production in response to the bill, demand for the services and equipment they need has soared. As a provider of the hydroponic cultivation supplies on which many hemp farmers depend, Sugarmade and its pending acquisition subsidiaries — AthenaUnited.com and Zenhydro.com — has found itself swamped with orders.

Shortage of CBD

This surge in demand following the farm bill has created an undeniable opportunity within the CBD sector — along with a challenge. Fortunately for Sugarmade, it’s a challenge that they appear to be instrumental in solving.

Hemp cultivators are currently unable to provide the volume of plants that customers want. One of the reasons is that the cultivation, processing and supply systems simply aren’t large enough. The CBD industry was already on an expansion path as it tried to meet growing demand before the farm bill. Now with that demand growing further, it’s going to take time and a big push to achieve what people are after. Making an industry legal doesn’t make it magically appear.

Then there’s the unreliability of the CBD levels in hemp. The chemical content of the plants is small and hugely variable. Relatively small shifts in the makeup of a crop can have a significant impact on how much CBD is produced.

Cultivating larger, more reliable crops is vital to the future of the industry. Manufacturers are eager to rise to that challenge. However, to do so they need to get the supplies to get them off the ground, including hydroponic systems, feed chemicals and the clippings, or clones, from which much hemp is grown.

Looking at the effect of this shortage in just one state, Sugarmade CEO Jimmy Chan was optimistic about the effect on his company. “With at least 42,000 acres of hemp expected to be planted in Kentucky and considering an average plant density per acre of well over 1,000, farmers in Kentucky will need hundreds of millions of clones over the coming years,” he said. “When these numbers are multiplied over the many other hemp cultivation states, it is easy for anyone to see the strong demand scenario that is quickly developing.”

Responding to the Shortage

To meet the demand for CBD, hemp cultivators will clearly need to improve both the quantity and the quality of their crops.

It’s easy to see how an increase in quantity will have knock-on effects for suppliers such as Sugarmade. The company’s pending acquisition subsidiaries AthenaUnited.com and ZenHydro.com are seeing orders for their cloning supplies skyrocket, with backorders building up as they rush to meet unprecedented demand.

The search for more reliable levels of CBD is also contributing to this demand. Hydroponic systems give cultivators control over the growing process. By experimenting with hydroponics and controlling the light, plant food and environment, cultivators can find ways to grow plants with predictable and higher levels of CBD. This experimentation will create even more demand for hydroponic materials. Sugarmade should be central to the improvement of these processes.

To provide supplies as efficiently and profitably as possible, Sugarmade has gone through a period of expansion, acquiring other companies in the hydroponics and CBD sector. This model of consolidation is being repeated across the industry as businesses seek efficiencies of scale.

“Sugarmade plans to integrate these businesses fully as soon as is possible, making us one of the larger suppliers to this growing marketplace,” stated Chan. “Additionally, we are in process of vetting other possible acquisitions to further enhance our portfolio of hydroponic and cultivation supply products. We are certainly excited about our prospects for the remaining part of this year and into next year.”

Expanding Potential

Sugarmade isn’t the only CBD-related company using acquisitions to expand potential. Canadian company Tilray Inc. (NASDAQ: TLRY) has undertaken a series of acquisitions, including Manitoba Harvest, the world’s largest hemp foods company, to strengthen its position in hemp. The company has responded decisively to the recent supply shortage in hemp and related plants in North America, in part by investing $32.6 million to significantly expand it production space across three sites, increasing its cultivation and manufacturing footprint by nearly 20%.

Another of the big Canadian companies, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has opted into investing south of the border thanks to the farm bill. The company has set up a hemp-growing facility in New York state and acquired another hemp company, AgriNextUSA. Canopy Growth has also been collaborating with other CBD and related companies to boost their shared output. One collaboration with PharmHouse has seen Canopy Growth provide high-quality genetic stock to PharmHouse’s growing facility. In return, Canopy Growth will benefit from an offtake agreement to obtain flowers from the plants PharmHouse is growing.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has benefited from attention on the sector through a huge injection of outside cash. Tobacco giant Altria has agreed to invest C$2.4 billion in Cronos Group, providing the company behind Marlboro with a way into a new sector. Fittingly, Cronos Group is investing some of its funds in a new R&D facility that will work on vaporizer products. Vaping has become a popular way of consuming CBD, so the investment may allow Cronos to benefit from the market from multiple angles.

American CBD producer Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) (CSE: CWEB) has been using proprietary genetics to work toward the goal of high-quality, low-cost hemp. The company has also been creating innovative new products to make use of the growth in CBD. Its recently expanded pet line offers the promise of calming dogs and easing joint pain brought on by age.

Rising demand for CBD has created a challenge, but it’s a challenge that smart companies are definitely ready to meet.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

About CannabisNewsWire

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420 with CNW – Health Canada Changes Tactics in a Bid to End Cannabis Shortages

Tired of the endless cannabis shortages which have threatened to hand the legal cannabis industry back to the black market, Health Canada has come up with a new way to increase how soon a newly licensed cultivator can start growing cannabis.

The solution that Health Canada wants to start implementing entails giving production licenses to entities which already have a cultivation facility ready.

This means that companies which want to grow cannabis will have to first construct the greenhouses they intend to use so that the facilities can be ready for inspection by Health Canada. Facilities which pass the inspection can then be licensed to start operation immediately.

This new approach is likely to favor the bigger players at the expense of smaller entities which want to enter the cannabis cultivation space.

For example, Aphria has been waiting for its new Ontario-based cultivation site to be approved by Health Canada for more than a year. If this new rule had been in place from the very start, Aphria would have started cultivation long ago, thereby getting a head-start in the market while other entities without ready grow facilities play catch up.

The key question is, will this change in the regulatory approval process bring the cannabis shortage to an end?

The realistic answer is that the move will have a very small difference in fixing the problems causing marijuana shortages in Canada. For example, one of the reasons for the persistent shortages is that it has been difficult for harvested marijuana to be processed and packaged due to a shortage of packaging materials which meet the strict requirements set by Health Canada.

Many cultivators have cannabis which cannot be released onto the market because it hasn’t been packaged in a way that complies with the Cannabis Act. Speeding up how soon a licensed firm starts growing cannabis will not fix this packaging nightmare.

Another reason why switching to licensing cultivators who already have grow facilities may not solve the supply shortages is the red-tape at Health Canada. Many entities have been waiting for over a year to have their license application considered even without the requirement to have ready cultivation facilities. It is hard to imagine how the processing of applications will miraculously speed up just because Health Canada now says they will give priority to applicants with cultivation facilities already set up.

Phivida Holdings Inc. (CSE: VIDA) (OTCQX: PHVAF) and Net Element Inc. (NASDAQ: NETE) look forward to the time when Health Canada fixes all its internal issues which have played a part in perpetuating the cannabis shortages in the country.

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420 with CNW – 38 Attorneys General Urge Congress to Open Banking System to Marijuana

Thirty-eight attorneys general have written a letter to Congress asking the lawmakers to pass legislation which will enable the banking industry to receive money from legitimate marijuana businesses. The attorneys general are from different states and territories where marijuana is legal in some form.

While more than 33 states have legalized medical marijuana and 10 states plus the District of Columbia have legalized recreational cannabis, the federal government still regards marijuana as an illegal substance. This federal government position means that banks face a risk of federal enforcement action if money from the cannabis industry finds its way into any bank.

Consequently, most banks have been reluctant to accept marijuana companies as clients, and those that do charge high fees which make it very costly for cannabis businesses to access the most basic of banking services.

The attorneys general say this situation has created a public safety nightmare since the large amounts of cash held by cannabis businesses are an attractive target to criminals. They therefore call on Congress to pass the SAFE Banking Act or any other similar legislation so that the $8.3 billion cannabis industry can be admitted into the banking system.

Once all this money goes through banks, it would be easy for tax authorities to trace it in order to confirm that the cannabis companies are paying taxes as they should. Public safety will also be enhanced because the chance of robberies will have been reduced if cannabis businesses aren’t holding a lot of cash in their premises.

Towards the end of March this year, the Financial Services Committee of Congress advanced the SAFE Banking Bill and it now has 175 bipartisan co-sponsors.

The letter from the attorneys general shows how much support such a practical requirement attracts from state authorities who are at the forefront of this legal gray area in which legitimate cannabis businesses are entitled to all services like other businesses but federal law looks at them as pariahs.

Insiders say that the major stumbling block to the enactment of the SAFE Banking Act seems to be the senate leadership that don’t see the matter as a priority even if the bill may have sufficient votes to pass.

Nabis Holdings (CSE: NAB) (OTC: INNPF) (FRA: 71P) and MustGrow Biologics Corp. hope that the voices of different groups, such as the attorneys general, finally get Congress and the Senate to pass this commonsense law to allow states to make and enforce their own marijuana laws, which include giving banks assurances that they will not be sanctioned for working with the legal marijuana industry.

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420 with CNW – China Reaps from Cannabis Industry Boom

Look around your home and nearly half (or even more) of the products you see may have been made in China. Now China has jumped into the fray and it is bringing loads of CBD to the market in cosmetics, ingestible oil and other products.

This boom is largely centered in just two of China’s 34 provinces. These provinces are cultivating the plants even if Chinese law is very strict on psychotropic drugs, with death sentences routinely handed out to drug traffickers.

Hanma Investment Group is one of the first companies that secured a license to grow cannabis in Southern China in 2017. The CBD extracted is marketed outside China in balms, oils and sprays.

Hanma Investment Group has a subsidiary that is cultivating industrial hemp on more than 1,600 acres in Yunnan Province.

For thousands of years, hemp and marijuana were widely grown across China for making ropes, fabrics, paper and for medicinal purposes until the People’s Republic of China was founded and clamped down on the plant in 1949.

Hemp was also outlawed in 1985 when China signed the UN Convention on Psychotropic Substances despite hemp having just trace amounts of THC.

It is only recently (2010) that China softened its stance and allowed Yunnan province to resume growing hemp for textiles, especially for making uniforms for the People’s Liberation Army.

The exploding interest in CBD around the world has made Yunna Province to add oil extraction to the growing list of products for which hemp is grown. This booming industry has breathed new life into the economy of Yunna since farmers can earn much more from growing hemp ($300 from an acre) when compared to growing other crops, such as rapeseed or flax.

Yunna Province now has four companies that have, in total, opened more than 36,000 acres of land for hemp cultivation.

The other province which is reaping from hemp is Heilongjiang Province. Other provinces are catching on and plans are underway to license companies to start growing hemp in more regions of China.

The announcements that different companies have started growing hemp have caused such a stir on the stock exchanges that regulators were forced to intervene and stop trading in the shares of those companies.

Chinese companies are also aggressively staking their claim on the U.S. hemp landscape. For example, Hanma Investment Group has acquired a CBD extraction plant in Las Vegas, Nevada, and it has also set its eyes on Canada as well.

The 2018 Farm Act removed hemp from the list of controlled substances and it is now an agricultural commodity like any other within the U.S. The onus is now on U.S. companies to take full advantage of this legal reform so that China doesn’t muscle out local players in the CBD industry. Marijuana Company of America Inc. (OTCQB: MCOA) and Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) hope that U.S. companies are up to the challenge so that foreign firms don’t dominate the local CBD market.

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