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 — Employee Cannabis Protections Law to Take Effect in California Next Year

California workers will soon enjoy official safeguards against discrimination related to their off-duty and off-site marijuana use following a change to the state’s Fair Employment and Housing Act, known as AB 2188, greenlit by Governor Gavin Newsom on Sept. 18, 2022, and set to take effect at the start of 2024.

Under the legislation, employers are barred from refusing employment, penalizing or terminating individuals based on their use of marijuana products outside of working hours.

Despite California’s pioneering move in 1996 to legalize medical cannabis and its subsequent approval of recreational use in 2016, AB 2188 stands out as the state’s inaugural law explicitly extending workplace protections to cannabis users, regardless of the purpose. AB 2188 introduces provisions that render employers unable to hold an applicant’s past cannabis use against them. Crucially, the measure shifts the focus of employment-related drug testing toward identifying impairment during work hours or on the premises, distancing itself from scrutinizing historical marijuana consumption.

Moreover, the new legislation outlaws inquiries into an applicant’s cannabis use history, preventing employers from delving into this aspect during the hiring process. This marks a significant departure from previous norms, where employers retained the right to discipline individuals for off-duty recreational and medical cannabis use.

For instance, if an individual engages in recreational cannabis use during their leisure time over the weekend and arrives at work on Monday, employers cannot penalize them based on their weekend marijuana consumption. AB 2188 heralds a departure from the previous legality of such punitive measures.

However, AB 2188 does carve out exceptions to these protections, allowing employers to regulate cannabis use during working hours. Specifically, the bill stipulates that employees are not permitted to possess, be under the influence of or use marijuana while on the clock. The legislation also emphasizes that its provisions do not impinge upon an employer’s prerogative to maintain a drug- and alcohol-free workplace.

Certain sectors, such as construction and building trades, along with employees or applicants seeking federal jobs requiring clearance from the Defense Department, may still face employment denial or disciplinary actions for marijuana use outside of work.

Anticipating the implementation of these restrictions, employers are urged to review and adjust their antidiscrimination and drug-use policies. Those covered by the legislation intending to conduct cannabis tests must ensure that their testing programs exclusively target psychoactive cannabis components. Employers are further encouraged to stay abreast of any pertinent updates to their policies, particularly concerning criminal background checks.

The implementation of this law in California brings the Sunshine State at par with jurisdictions where firms such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operate and adults are protected from job losses or other sanctions resulting from using marijuana while off-site or off-duty.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our 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. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. 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 — Think Tank Says Legalizing Cannabis Federally Could Generate $8.5B in Taxes

A recent analysis from the Tax Foundation, a Washington, D.C.-based nonprofit think tank, suggests that the nationwide legalization of cannabis across all states could significantly boost annual cannabis tax revenue, projecting it to reach $8.5 billion. The foundation proposes a comprehensive federal and state taxation model for cannabis, aiming to keep costs low to discourage illicit sales while advocating for higher tax rates on more potent marijuana products.

The current state-by-state approach to marijuana taxation, according to the report, is chaotic. Therefore, there is a need for a reevaluation of the existing framework considering both public health and revenue implications.

According to the report, cannabis sales generated nearly $3 billion in tax revenue for legal states in the past year. The foundation anticipates that this figure could nearly triple if marijuana were legalized nationwide.

While drawing parallels to tobacco and alcohol taxation may seem logical in theory, the report argues that the lack of a standardized marijuana product makes this approach impractical. Unlike tobacco, marijuana lacks a universally recognized product form, and its intoxicating component, THC, poses challenges in measurement comparable to alcohol content.

The proposed alternative is a taxation system based on weight or potency, depending on practicality, instead of the current method of percentage-based taxation on sales price. A weight-based system, according to the foundation, is effective for capturing harm from smokable products. It also provides a simpler entry for new products into the market, avoiding excessively high barriers for product testing solely for tax purposes.

The Tax Foundation highlights three key lessons from state experiences with marijuana taxation. First, it advises keeping tax rates low enough for legal markets to compete with the illicit market, preventing impaired effectiveness due to excessively high tax rates. Second, it recognizes the significant revenue potential of legal marijuana markets but cautions that it may take years to materialize, with potential volatility under certain tax models. Third, the foundation stresses the importance of consistency across jurisdictions, particularly as interstate commerce becomes a possibility.

Currently, most state marijuana markets impose excise taxes on cannabis products, with rates ranging from 6% in Missouri to 37% in Washington state. Some states, including New York and Connecticut, have integrated potency-based tax policies, though this approach remains uncommon.

Although various federal proposals to impose additional taxes on cannabis have been introduced, short-term advancement is unlikely. Nevertheless, the United States Census Bureau is monitoring state-level marijuana tax trends, providing an interactive map detailing the proportion of state revenue from cannabis taxes.

Given the amounts of tax dollars that sector players such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) are already paying, a projection of $8.5 billion in taxes on a national scale is possible if the right regulatory measures are put in place to facilitate legal sales while curbing the black market.

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CannabisNewsBreaks – BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) (CSE: BYND) Closes US$1.5M Registered Direct Offering

BYND Cannasoft (NASDAQ: BCAN) (CSE: BYND), an Israeli-based integrated software and cannabis company, has announced the closing of the previously disclosed registered direct offering with an institutional investor of approximately $1.5 million common shares and investor warrants at a price of $0.52 per common unit. The company secured approximately $1.5 million in aggregate gross proceeds and expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital. The transaction closed on Dec. 21, 2023. Aegis Capital Corp. is acting as exclusive placement agent for the offering. Louis A. Brilleman, P.C. is acting as counsel to the company. Kaufman & Canoles, P.C. is acting as counsel to Aegis Capital Corp.

To view the full press release, visit https://cnw.fm/663Wf

About BYND Cannasoft Enterprises Inc.

BYND Cannasoft Enterprises is an Israeli-based integrated software and cannabis company. BYND Cannasoft owns and markets “Benefit CRM,” a proprietary customer relationship management (“CRM”) software product enabling small and medium ‐ sized businesses to optimize their day ‐ to ‐ day business activities such as sales management, personnel management, marketing, call center activities, and asset management. Building on its 20 years of experience in CRM software, BYND Cannasoft is developing an innovative new CRM platform to serve the needs of the medical cannabis industry by making it a more organized, accessible and price-transparent market. The Cannabis CRM System will include a Job Management (“BENEFIT”) and a module system (“CANNASOFT”) for managing farms and greenhouses with varied crops. BYND Cannasoft owns the patent-pending intellectual property for the EZ-G device. This therapeutic device uses proprietary software to regulate the flow of low concentrations of CBD oil, hemp seed oil and other natural oils into the soft tissues of the female reproductive system to potentially treat a wide variety of women’s health issues. The EZ-G device includes technological advancements as a sex toy with a more realistic experience and the prototype utilizes sensors to determine what enhances the users’ pleasure. The user can control the device through a Bluetooth app installed on a smartphone or other portable device. The data will be transmitted and received from the device to and from the secure cloud using artificial intelligence (“AI”). The data is combined with other antonymic user preferences to improve its operation by increasing sexual satisfaction.

About CannabisNewsWire

CannabisNewsWire (“CNW”) is a specialized communications platform with a focus on cannabis news and the cannabis sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled recognition and brand awareness. CNW is where breaking news, insightful content and actionable information converge.

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420 with CNW — Federal Survey Reaffirms State-Level Cannabis Legalization Hasn’t Changed Teen Use Patterns

A new survey has determined that the use of marijuana in teens hasn’t increased even as more states legalize the drug’s use across the country. The survey was funded by the National Institute on Drug Abuse (NIDA) and carried out by researchers at the University of Michigan. It determined that rates of past-year marijuana use remained stable for all grades that took part in the survey, even as more cannabis markets opened and expanded for adults countrywide.

During a webinar last week, NIDA’s chief of epidemiological research Marsha Lopez stated that no significant increases had been observed with no increase in perceived availability being recorded either. The survey, which questioned teens on the use of delta-8 THC products, found that past-year cannabis use stood at 29%, 17.8% and 8.3% for 12, 10th and 8th graders respectively.

Delta-8 THC is one of the many psychoactive cannabinoids found in the cannabis sativa plant, of which hemp and marijuana are two varieties. Products based on this cannabinoid are typically derived from hemp and sold in mainly unregulated markets, though some states have enacted bans or restrictions.

Between 2020 to 2022, 11 more states legalized the use of cannabis. Data from the survey shows that the liberalization of cannabis policies in these newly legal states didn’t translate into increased perceptions of availability among the youth, with Lopez noting that the perceptions were actually trending downward. This is despite the fact that 2022 recorded the highest ever use of recreational marijuana and some psychedelics. The survey’s results also show steadier decreases in the perception of harm of using marijuana.

The results support advocates’ stand against arguments that legalizing adult-use marijuana would cause underage use to increase. In fact, findings show that in regulated markets where IDs were checked and other safeguards set up, youth access was restricted. In addition, the survey found that there was relatively low prevalence of daily marijuana use, which had been steady for the last decade.

The investigators also compared a range of cannabis-related indicators from teens living in states in which marijuana is illegal and states that have legalized medical use. They observed no statistically significant differences in past-year rates of use across all grades examined, regardless of state medical cannabis laws.

With regard to teens who do consume marijuana, the majority of them revealed that they smoked the drug, but the survey observed a shift in consumption methods, with more teens switching to edibles or vaping.

In a press release, Richard Miech, the survey’s team lead, highlighted the importance of monitoring the use of this drug among teens moving forward.

The findings from the survey possibly trigger thoughts of “we told you so” from cannabis industry participants such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that have always believed that setting up regulated markets for cannabis could reduce teen access to the substance.

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420 with CNW — Pilot Project for Marijuana Legalization Starts in Netherlands

For years, Dutch coffee shops have functioned in a system where cannabis sale was permitted, but its growth remained illegal. This led to a lack of transparency for consumers, leaving them unaware of the origins, growers and conditions under which the products they purchased were cultivated. However, that will soon change as the government initiates a marijuana legalization pilot project.

The initial phase of a closed-chain experiment, designed to deliver marijuana from legally sanctioned cultivation to coffee shops commenced on Dec. 15, 2023. The current timeline indicates that two authorized producers will be prepared to supply coffee shops in the final quarter of 2023. This development is substantial enough to initiate the preparatory phase of the pilot program, initially focused on Tilburg and Breda.

Participating coffee shops in Tilburg and Breda will have the opportunity to offer both legally produced marijuana and tolerated products sourced from the illicit market. Two additional producers are anticipated to commence their supply to coffee shops in these cities by February 2024. Tilburg and Breda’s mayors proposed the preliminary phase idea, which was approved by Justice and Security Minister Yeşilgöz-Zegerius and Health, Welfare, and Sports Minister Ernst Kuipers. The aim is to kick-start a modest-scale “experiment with legalized production and sales chain.”

According to reports from rijksoverheid.nl., the progress made during the preparatory phase will undergo continuous monitoring. In the event of a significant threat to security or public order, the preparatory phase may be prematurely terminated. The insights gained will be shared with all participating cities, contributing to the refinement of systems and processes for a seamless transition to the subsequent phase.

Expected to last a maximum of six months, the preliminary phase will give way to the transition phase. The earliest commencement for participating cities is projected to be by the end of the Q1 2024. During this stage, coffee shops in these cities will be authorized to offer both black-market and legally cultivated cannabis products. Subsequently, participating coffee shop proprietors will exclusively vend marijuana sourced from regulated crops. Legally produced marijuana will be packaged with a QR code, enabling consumers to access comprehensive information, including details about the product’s origin, cultivation time and the responsible company.

The entire experiment is earmarked for a four-year duration, culminating in a decision on whether to extend its implementation.

For companies such as Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) with operations in several countries on different continents, the experiment being undertaken in the Netherlands is of great interest because it could eventually open extra market opportunities to tap.

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Lexaria Bioscience Corp. (NASDAQ: LEXX) To File its IND Application with the FDA for its planned U.S. Phase 1b Hypertension Clinical Trial

Lexaria, a global innovator in drug delivery platforms, expects to submit its IND application for its planned U.S. Phase 1b Hypertension Clinical Trial with the FDA within the next 45 days
The HYPER-H23-1 clinical study will build on five successful human clinical trials conducted so far, studying the company’s patented DehydraTECH(TM)-processed CBD in an aggregate total of 134 individuals
Lexaria’s patented DehydraTECH(TM) “drug delivery platform technology” increases bioavailability, improving the way active pharmaceutical ingredients (“APIs”) enter the bloodstream

Lexaria Bioscience (NASDAQ: LEXX), a global innovator in drug delivery platforms, just announced that it anticipates submitting its Investigational New Drug (“IND”) application with the U.S. Food and Drug Administration within the next 45 days. The submission will be for its U.S. Phase 1b Hypertension Clinical Trial, whose primary objective will be to evaluate safety and tolerability in hypertensive patients, with secondary objectives including efficacy evaluation in reducing blood pressure together with detailed pharmacokinetic testing (https://cnw.fm/8E4Rg).

The HYPER-H23-1 clinical study, titled “A Phase 1b Randomized, Double-Blind, Placebo-Controlled Study of the Safety, Pharmacokinetics, and Pharmacodynamics of DehydraTECH-CBD in Subjects with Stage 1 or Stage 2 Hypertension” will explore Lexaria’s patented DehydraTECH(TM) technology, specifically its DehydraTECH-processed CBD for the potential treatment of hypertension. It will be a successful build-up from five human clinical trials conducted so far, studying DehydraTECH-CBD in an aggregate total of 134 individuals. Its management is optimistic that these previous studies will contribute to the success of the current one while allowing for the IND review process to run smoothly.

Only a handful of other published research studies have investigated whether a sustained decrease in resting blood pressure is possible following multiple weeks of oral CBD dosing; none of which have been successful in achieving this.. All of the company’s clinical studies showed that DehydraTECH-CBD achieved a sustained decrease in resting blood pressure following multiple weeks of oral dosing. In addition, DehydraTECH-CBD has evidenced superior power to reduce blood pressure, especially compared to other oral CBD formulations. DehydraTECH-CBD has also shown the potential to offer additive blood pressure reduction benefits in addition to any degree of improvement that standard-of-care medications achieved for patients prior to DehydraTECH-CBD dosing, ultimately showing the product’s superiority, overall efficiency, and potential.

Despite having encountered delays before, mainly owing to awaited documentation from one of its key raw material suppliers, Lexaria’s management is excited to submit its IND. Should it be approved, Lexaria will enjoy increased market opportunity for its DehydraTECH technology, specifically its DehydraTECH-CBD. In addition, it will get the company closer to tapping into the cardiovascular drugs market, valued at $138.33 billion in 2022 and expected to hit $200.9 billion by 2032 (https://cnw.fm/D3Ipo).

For more information, visit the company’s website at www.LexariaBioscience.com.

NOTE TO INVESTORS: The latest news and updates relating to LEXX are available in the company’s newsroom at https://cnw.fm/LEXX

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420 with CNW — Marijuana Professionals Foresee Bumpy, Exciting 2024

After the post-pandemic downturn caused many businesses in the cannabis industry to struggle, many marijuana professionals are now predicting a more lucrative 2024. The post-COVID period saw the addition of several more states to America’s nascent marijuana industry, and the country made significant strides in its efforts to legalize marijuana at the federal level. In addition, President Joe Biden issued a mass pardon for marijuana offenders, and his administration has indicated that it is seriously considering rescheduling the controversial plant at the federal level.

Industry professionals are now looking at 2024 with renewed optimism even though the state-legal cannabis industry is likely in for a lot of turbulence. Ed Schmults, CEO of California-based company StateHouse Holdings Inc., says the U.S. Health and Human Services recommendation to the Drug Enforcement Agency (DEA) to move cannabis from Schedule I of the Controlled Substances Act to Schedule III is welcome news, even though it came 10 years late.

Although rescheduling would call for significant levels of legislative effort and time, Schmults is optimistic that the federal government will take the steps needed to move cannabis to Schedule III. He says an implementation timetable of around 12–18 months would be more reasonable than the six-month timeline discussed by some industry players. While descheduling cannabis outright would offer a much better path for the nation’s cannabis industry, Schmultz noted, transferring the drug to Schedule III is a “big step in the right direction.”

David Goubert, president and CEO of multistate marijuana operator AYR Wellness, says that multistate operators will be more focused on their companies’ financial health and will likely prioritize cash-flow generation coupled with lean and efficient operations. He added that if cannabis rescheduling and 280E changes happen as many industry players anticipate, cannabis businesses would start paying fewer annual taxes and would be better equipped to pay down their debt.

The legalization of recreational cannabis in Ohio, Florida and Pennsylvania could also lead to “significant deleveraging” by mid-decade, Goubert says.

Poseidon Asset Management cofounder Morgan Paxhia predicts that next year will be the most exciting and eventful year in the legal cannabis industry’s history. He predicts that while policymakers will reclassify cannabis as a Schedule III substance, “Congressional hijacks” following such a historic legislative development as lawmakers try to take credit could stifle the cannabis industry’s progress and levy a high 14% excise tax on businesses.

However, he notes that the SAFER Banking Act likely won’t make any progress in 2024. Instead, Paxhia expects lawmakers to introduce a ‘=”Garland memo-like protection” alongside rescheduling.

As 2023 draws to a close, many in the cannabis industry, such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), may be fine-tuning their plans to capitalize on any regulatory changes that could be made at the federal level in the coming year or years.

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420 with CNW — Missouri Expunges 100K Marijuana Cases in Year One of Legal Cannabis Sales

Recent data shows that officials in the state of Missouri have thus far expunged more than 100,000 cannabis cases from court records. Under the law, misdemeanors had to be automatically expunged by June 8, 2023, and felonies had to be cleared by Dec. 8, 2023. The deadline for felony expungements, which lapsed last week, wasn’t met by all courts, however, with clerks still reviewing decades of old cases.

In an interview, Dan Viets, a lawyer and coordinator of Missouri NORML, stated that courts would need additional time to finish the task and noted that it could be years before all cases from the last 100 years were expunged. Viets, who also coauthored the state’s constitutional amendment legalizing cannabis, added that the state had prohibited cannabis for more than a century and, given that most older cases hadn’t been updated on a database, a lot of physical work was needed to find and go through hard-copy records.

In a press release of the state’s NORML chapter, Viets noted that the provision on automatic expungement was a significant part of Missouri’s marijuana law that was approved by voters in 2022. Missouri NORML also highlighted that the ballot proposal, now codified as Article XIV in the state’s constitution, provided funds for the expungement via the 6% sales tax imposed on recreational cannabis.

The organization explained that the tax had generated more revenue than was needed to pay overtime to existing staff or fund the hiring of more staff in the offices of circuit clerks across Missouri. In November, total cannabis sales in the state exceeded the $1 billion mark, with legislators announcing recently that of the total taxes generated, $17 million would fund drug treatment, veterans’ health and legal aid.

Viets also noted that counties that missed the December deadline were in violation of Missouri’s constitution and legal action could be taken. He then revealed that about six of the counties in the state hadn’t expunged any cases on misdemeanor violations, asserting that these were smaller counties where Amendment 3’s support wasn’t as high.

On a broader scale, the state’s cannabis system has experienced significant hitches this year, with thousands of products being recalled over the illegal use of cannabinoids derived from hemp. In November, officials revoked Delta Extraction’s business license, as the company was at the center of the aforementioned dispute.

Another company, Retailer Point Management, also had to settle a dispute with a union over more than 10 charges of unfair labor practices. All this is part of a wider push by workers at marijuana businesses to organize the industry.

These ongoing expungements are likely being watched closely by the entire cannabis industry, including companies such as SNDL Inc. (NASDAQ: SNDL), given that times have changed and there is a growing consensus that no one should suffer lifelong consequences for being convicted after using a substance that is now legal in a significant portion of the United States as well as several countries around the world.

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420 with CNW — Data Shows Arizona Exceeded $1B in 2023 Cannabis Sales in September

September saw Arizona’s marijuana sales surpass $1 billion for the year following a pattern that both recreational and medical markets seemed to have stabilized over the previous few months. The state’s revenue department (ADOR) data for August and September reveals a consistent pattern, with medical sales remaining around one-third of recreational sales.

September’s medical sales were marginally below $27 million, down from $28.7 million in August. This represents the lowest in medical sales since the legalization of recreational marijuana in 2021. The last time medical sales surpassed $30 million was in June, and they have been consistently declining from the peak of $73.4 million in April 2021.

Contrastingly, recreational sales have remained robust, consistently surpassing $80 million since dropping below $90 million in May. August reported recreational cannabis sales at $85.8 million, followed by slightly more than $80 million in September. The recreational market has only failed to reach the $80 million mark twice —in May and June of 2022 at $79.3 million and $77.2 million, respectively.

However, those figures could alter because ADOR often modifies the figures from previous months with new reports. For example, the most recent announcement from ADOR raised July’s medical sales from $26.1 million to $27.3 million, while recreational sales changed from $77.4 million to $80.5 million.

As of September 2023, total medical marijuana sales for the year reached $267 million, while recreational sales amounted to nearly $797 million, culminating in a year-to-date total of almost $1.1 billion. Since the commencement of recreational cannabis sales in 2021, the industry has generated more than $4 billion, with approximately $2.5 billion attributed to adult-use sales.

The state has collected substantial taxes from both sectors, with $2.2 million and $2.4 million from medical cannabis sales in September and August, respectively, and $12.8 million and $13.7 million from recreational sales. Arizona applies a standard sales tax of 5.5% and a 16% excise tax on recreational sales. Medical patients only foot the standard 5.5% sales tax. Local jurisdictions add roughly 2% to all cannabis sales.

Around $174.5 million has been collected thus far in 2023 from the recreational sales excise tax. In 2021, recreational marijuana generated $33 million, and in 2022, the figure surged to $132.7 million. Since recreational cannabis legalization, the state has amassed more than $392 million in cannabis excise taxes.

The tax revenues are allocated to various sectors: 10% goes toward the justice reinvestment fund, which supports communities disproportionately impacted by cannabis criminalization; 34% goes toward community colleges; 31% goes toward public safety; and 25% goes to the Arizona Highway User Fund.

There were 121,047 qualified cannabis patient cardholders as of October 2023, compared to 123,795 in September. Before the introduction of recreational cannabis, there were 299,055 qualifying patients. The report also noted that 4,475 pounds of cannabis were purchased for medical purposes in October, down from 4,622 in September, bringing the total for the year as of October to 47,076 pounds.

The thriving marijuana industry in Arizona in a way depicts what is happening in many markets in which regulated cannabis sales are allowed and companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) obtain licenses to commercialize innovative cannabis products.

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420 with CNW — Limited Product Range Hampers Recreational Cannabis Sales in Connecticut

The recreational cannabis market in Connecticut has hit a snag less than a year after it was launched. At the time of its launch, the market had 13 retail outlets. However, latest figures show that overall sales of recreational as well as medical marijuana have dipped, which isn’t common for a new market.

Total marijuana sales from October dropped from the $25.2 million recorded the previous month to $24.8 million. Recreational sales made up roughly $14.7 million of the total sales, with state data showing that since August, recreational sales had risen by only 5%.

Experts attribute this decline in sales to a lack of variety in products sold to consumers, which has seen many visit stores in neighboring states such as Massachusetts. The dip in sales also reflects a combination of other factors, including high barriers for those who would like to enter the market; regulatory restrictions such as bans on products including pills and capsules; and more municipalities restricting recreational sales and other marijuana businesses.

White Oak Bridge CEO Justin Frytz stated that most consumers in Connecticut choose not to visit dispensaries in the state because the product quality doesn’t meet their standards. Frytz also noted that consumers preferred going to Massachusetts because the product quality is better and they have more choices. He pointed out that manufacturers had shortened or cut production runs on some medical cannabis product lines in favor of recreational products that could generate higher margins and were more scalable. This, he argued, affected medical patients who couldn’t get quality products and also stymied the full potential of the market.

Wholesale marijuana product purchase data also demonstrates a huge discrepancy on category choice in Connecticut, especially in comparison to other recently launched recreational markets.

Leaflink, a marijuana wholesale technology platform, tracked wholesale volume in Connecticut via its online marketplace. The platform determined that an average store in the state bought roughly 400 product stock-keeping units, a figure that is significantly lower than those from its counterparts in Missouri and Maryland.

Data from Leaflink shows that in Missouri, where recreational sales launched in February, the average retailer purchased about 1,000 store-keeping units. In Maryland, where adult-use sales begun in July, the average dispensary in October purchased 1,200 store-keeping units.

Also impacting the situation is the fact that the vertically integrated market is dominated by businesses such as Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), Verano Holdings Corp and Curaleaf Holdings, which operate in multiple states.

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