420 with CNW – New Zealanders to Vote on Cannabis Legalization in 2020

New Zealand is likely to be the first Asia-Pacific country to legalize recreational cannabis if the expected vote in 2020 goes in favor of legalization. Such a development will make New Zealand the third country in the world to legalize recreational marijuana.

The next general elections in 2020 will have a binding referendum spelling out how exactly the industry will be regulated and managed in case voters approve legalization.

The government announced this approach in order to avoid a situation in which voters approve legalization, and then different parties disagree on how to implement the decision of the voters. A clear example of such a situation is the Brexit issue over which Britons are divided regarding what exactly they approved when they voted to leave the EU.

The decision to include a binding referendum in the next polls was made after the government and the Green Party agreed to work together to take the matter to voters.

The Green Party was particularly vocal in the campaign to legalize recreational cannabis. They argue that it is hypocritical for members of parliament to sit quietly while a law that criminalized marijuana was in force and yet many of them confessed that they had consumed cannabis in the past.

A recent poll conducted by the New Zealand Drug Foundation found that one in three New Zealanders supports the legalization of cannabis.

However, cannabis law reform advocates are unhappy that the government hasn’t revealed what exact question will be put to voters when that binding referendum is held. The Cannabis Reform Coalition suggests that the referendum question should have two parts.

According to them, the first part of the question should be designed to ask voters whether they want adults to grow and possess cannabis for personal consumption. The second part of the question can then ask the voters to state whether they are in favor of letting adults buy cannabis from authorized/licensed premises.

Such a two-part question can help voters indicate which specific form they would like cannabis legalization to take.

It is interesting to note that cannabis may not be the only subject upon which a binding referendum will be conducted come 2020. The New Zealand government is still mulling over the possibility of including a referendum on euthanasia and another on reforming the electoral laws.

Marijuana advocates are hoping that the outcome of the binding referendum is a favorable one, since the country has a history of having voted against changing the flag of the country two years ago (2016). That particular referendum cost the country upwards of $17 million.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) and other industry players like Marijuana Company of America Inc. (OTCQB: MCOA) can only hope that the voters in New Zealand will be given accurate and detailed information upon which to base which way they vote come 2020.

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420 with CNW – Nebraska May Vote on Medical Cannabis in 2020

Two legislators in Nebraska have announced plans to put medical marijuana on the ballot in 2020 if lawmakers don’t pass a medical marijuana law in the session due to begin in January 2019.

State Senators Adam Morfeld and Anna Wishart announced that they had formed a group, Nebraskans for Sensible Marijuana Laws, to campaign and gather signatures for a ballot measure on medical marijuana.

The two legislators from Lincoln said that their campaign would be similar to what forced the issue in Utah, Oklahoma and Missouri during the recent midterm elections.

Wishart said that they were forced to register this committee after being frustrated by the inaction of the legislative arm in recent times.

The legislature in Nebraska is nonpartisan, but it is dominated by Republicans. Recent attempts to legalize medical cannabis have been blocked by these Republicans who cite different reasons for their actions.

First, they claimed that legalizing medical cannabis is a ruse to allow recreational use in the state. Secondly, some claimed that the medicinal benefits of cannabis are unproven, so there is no reason to pass enabling legislation over unsubstantiated claims.

Attorney General Doug Peterson and Governor Pete Ricketts are also opposed to the legalization of medical cannabis. That notwithstanding, Wishart plans to table another bill in the coming session as a final step before she calls on voters to have their say if the legislature blocks her bill.

This will not be the first time that voters in Nebraska are called upon to bypass the lawmakers on an issue. In 2014, a ballot measure resulted in an increase of the minimum wage after legislators rejected a bill on the matter. In November this year, voters again approved a ballot measure to expand Medicaid in the state when legislators were unwilling to do so. Before that, capital punishment was reinstated in 2015 through a ballot measure.

The two Lincoln legislators will not be on their own as they gather signatures to put medical marijuana on the ballot. The pair will have the support and the resources of the Marijuana Policy Project.

This non-profit was instrumental in the success of similar ballot measures in Utah, Maine, Nevada, Michigan and Massachusetts. The group feels that it is inhumane to regard the patients who can benefit from medical marijuana as criminals.

The Marijuana Policy Project also believes that their campaign in Nebraska will be successful. After all, the people there already support the proposal to legalize medical marijuana. ChineseInvestors.com (OTCQB: CIIX) and Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) hope that the people, who are the final beneficiaries of medical cannabis, will be at the center of any discussions regarding whether or not to legalize medical cannabis in the state.

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420 with CNW – Legislator Wants Sharing of Missouri Medical Cannabis Patient Info with Feds Banned

This year’s midterm elections saw the passing of a ballot initiate to legalize medical cannabis in Missouri. Now a legislator has pre-filed a bill which will prevent any state official or agency from sharing information about medical cannabis patients in the state with any federal authority.

The bill, sponsored by Republican Nick Schroer intends to make it a Class E felony for any state official to share with the federal government any information about the people holding medical cannabis cards in the state. Anyone convicted for this offense risks a custodial sentence of up to four years.

While it is rare for the Justice Department to prosecute individuals who use medical cannabis in states where it is legal, such a step isn’t entirely unheard of. The protracted case of three family members in Washington is a stark reminder that anything can happen as long as marijuana is still regarded as a strictly controlled illegal substance by the federal government.

Currently, a spending rider passed by Congress stops the federal government from using tax dollars to prosecute individuals who use medical cannabis in states where legalization has taken place.

Why, you may be wondering, would Nick Shroer deem it necessary to propose a bill on a matter that seems to have been settled by Congress? The reason is that policies can shift at the federal level at any time.

State law is therefore necessary to insulate patients from any policy changes that can put them in the crosshairs of the federal government.

Such laws are also intended to send a strong message that the states have their own right to pass and implement their own laws without having to bow to the wishes of the federal government.

Current events show that federal prosecutors are having meetings in different states where cannabis has been legalized in some form during the recent midterms in order to discuss how those policy changes will impact the work of federal prosecutors. This is a good sign that shows that the feds are adjusting to the changes taking place at the state level even if those changes contrast with the position held at the federal level.

Earth Science Tech, Inc. (OTCQB: ETST) and FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) welcome the legal protections that the legislator from Missouri wants to see for medical cannabis patients. Such protections ensure that people in dire need of relief from their medical conditions aren’t looked at as criminals who should be locked up.

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420 with CNW – Mexico to Consult Other Countries on Cannabis Legalization, Minister Reveals

The election of a new government in Mexico paved the way for quick steps to be made towards the legalization of recreational cannabis. Now the foreign minister of the country has told a Mexican Senate committee that lessons are going to be drawn from countries and jurisdictions where legalization has already occurred.

The government officials will visit Uruguay and Canada, as well as California and other U.S. states where recreational and medical cannabis are legal. Apparently, a Mexican team has already visited Canada to learn about this important process.

Additionally, a bill was filed before the Mexican Senate last month seeking to legalize recreational cannabis in the country.

Several factors have worked together to bring Mexico to this point regarding its policy on marijuana.

First, its war on the drug has only caused violence to spiral out of control, with gangs battling each other and the authorities on an almost daily basis. People grew weary of that endless war and started calling for another way to deal with the problem.

Secondly, the U.S. has been the biggest ally of the Mexican authorities in their battle against marijuana and other drugs (which were ultimately smuggled into the US). However, the Mexicans started questioning the wisdom of going on with an endless fight while a wave of cannabis legalization is sweeping across the states in the US. The Mexicans may have felt that it was time to take a leaf from the book of California, Colorado and the other more than 30 states where cannabis is legal either for recreational or medicinal use.

Thirdly, and perhaps most importantly, the Supreme Court of Mexico made a fifth ruling to the effect that private individuals could not be stopped from growing and consuming cannabis if they so wished.

What was significant about making a fifth ruling?

Under Mexican law, any matter upon which the Supreme Court makes five similar rulings automatically sets a precedent that all other courts in the country must follow. Consequently, the fifth ruling that it was unconstitutional to stop an adult from consuming marijuana meant that no court in the country could deny anyone permission to grow and consume cannabis.

The decision to pass appropriate laws regulating the consumption of cannabis was therefore a necessary step to put into practice what the Supreme Court had already authorized by default.

It is commendable that the Mexican authorities have decided to listen to, and learn from several jurisdictions that have walked the legalization path before them. There is no need to try and reinvent the wheel when lessons abound regarding what to do and what to avoid during this journey.

Global Payout, Inc. (OTC: GOHE) and Generation Alpha, Inc. (OTCQB: GNAL) applaud the rational way in which the Mexican government is approaching cannabis adult-use legalization.

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420 with CNW – Upscale Cannabis Gear Selling Like Hot Cakes in New York

As the buzz around cannabis legalization in different jurisdictions gathers steam, savvy entrepreneurs are cashing in by bringing innovative marijuana accessories to the market. “Higher Standards” is one such store that is cashing in on the heightened interest in marijuana.

The store is housed in the prestigious Chelsea Market in Manhattan. Higher Standards caters to foodies and tourists who want a gift or a rare cannabis accessory as they head off to jurisdictions where marijuana consumption is legal.

One of the most expensive and rare cannabis accessories that you can buy at this store is a glass pipe shaped like a skateboard. This pipe goes for a cool $6,000. Cannabis infusers, cannabis rolling papers and glass containers for matches are other products you will find when you visit this high-end establishment.

Higher Standards has been in New York for more than a year. How can this be possible when recreational cannabis is yet to be legalized?

Sasha Kadey, the chief marketing officer of Higher Standards, explains that the company doesn’t touch the cannabis plant, so it enjoys some leeway that wouldn’t have been possible if Higher Standards was handling cannabis directly.

In New York, there seems to be a silent policy through which such companies that don’t “touch the plant” get a wink and a nod to continue conducting their business. The same mischievous wink is extended to customers who buy the accessories on offer as they are told that the products are for “tobacco use only”.

That knowing wink seems to be bringing good tidings of what is to come for Higher Standards since the store set its own single-day sales record on Black Friday, then went on to crash that record on December 8.

With things looking up, the store has plans to open five more locations, including one that will be in Atlanta. The Atlanta one is expected to open just in time to cash in on Super Bowl Sunday.

Meanwhile, New York is in advanced stages of legalizing recreational cannabis. This move will bring more fortune in the way of dealers of accessories, like Higher Standards. For example, word is that MedMen intends to open an outlet just outside Chelsea Market. This will bring cannabis customers right to the doorstep of Higher Standards, and sales are expected to soar.

Before that happens, however, people seem to be snatching accessories off the shelves of the outlet and business is booming. That seems to be what happens wherever cannabis is permitted. Cannabis Strategic Ventures, Inc. (OTC: NUGS) and Canopy Rivers Inc. (TSX.V: RIV) say kudos to Higher Standards for contributing to cannabis culture.

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420 with CNW – US States Hope Legal Marijuana Will Fix Pension Crisis

Several U.S. states, such as Illinois and New Jersey, are facing an epic pension crisis and they hope that legalizing marijuana will avail badly needed funds to fix the crisis before it boils over.

For example, Chicago’s pension scheme alone will need a minimum of $1 billion to be injected each year into the retirement benefits scheme four years from today if the city is to meet its obligations to those who served and retired.

Consequently, Chicago Mayor Rahm Emanuel is suggesting that the taxes generated once cannabis becomes legal should be ring-fenced and sent to the pension scheme immediately.

The situation in New Jersey is no better. Debt repayment and pensions are expected to consume at least one third of the state’s budget by 2023. The legalization of recreational marijuana may help to bolster tax collections so that this risky situation is managed before it spirals out of hand.

New Jersey and Illinois still have a lot to do before cannabis can become available to the residents and bring revenue to the state coffers.

Of the two, New Jersey seems to be the closest to passing the necessary enabling legislation. Towards the end of November, committees in the state legislature passed some bills to put an end to cannabis prohibition.

One of the bills made it possible to wipe out some convictions and criminal records related to cannabis, such as those for misdemeanor possession.

However, the major sticking point that is yet to be agreed upon is the rate at which recreational marijuana will be taxed once it becomes available in the state. The Governor wants marijuana to have a 25 percent sales tax imposed on it while the proposed legislation puts it at 14 percent.

Each side is advancing its own reasons explaining why a certain tax percentage is appropriate, but a consensus hasn’t been arrived at as yet.

As already mentioned, Illinois still has ways to go before recreational cannabis is legalized. The incoming governor is in favor of legalization, but no details have been worked out as yet. Analysts suggest that it may take at least one year before adult-use cannabis becomes legal in the state.

Before that happens, however, the opposition of Republican legislators will have to be overcome. This task may be made easier by the approximately $525 million tax kitty expected from the industry each year. Setting up the right legal framework and the related infrastructure will be key to realizing that tax revenue dream or waking up to a different reality.

All in all, the problems that these two states face may not go away even if cannabis brings in the projected taxes since those revenues will be just a fraction of what is needed to keep the states solvent. All that the cannabis industry, including Therma Bright, Inc. (TSX.V: THRM) (OTC: THRBF) and TransCanna, can do is wish Illinois and New Jersey the best as they find solutions to the funding gaps that they face.

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420 with CNW – Row Over Patents Threatens to Delay Thai Medical Cannabis Legalization

Thailand is in advanced stages of legalizing medical cannabis, but a row over the patent applications filed by foreign cannabis companies may jettison the process that was expected to culminate in a law being passed in January 2019.

Local businesses and activists feel that the granting of those cannabis patents will make the foreign companies control the cannabis industry in the country and deny scientists a chance to conduct needed research on the plant.

Chokwan Chopaka, a cannabis legalization activist, compared the patent applications to someone wishing to patent water and all its uses. Thai law doesn’t allow anyone to acquire a patent for any plant-related substance.

Civic networks and researchers are threatening to take legal action against the government in case the patent applications are approved.

Singapore and Malaysia, Thailand’s neighbors, are just getting started on the debate to legalize medical cannabis, so Thailand would be a kind of pioneer in the Southeast Asian region if it passed the appropriate legislation early next year as expected.

Such an action would be a major undertaking, given that the Asian region has been known to have some of the harshest penalties for possession, distribution and consumption of marijuana. For example, the death penalty is routinely handed out and implemented in Singapore, Malaysia and Indonesia in case someone is convicted for trafficking marijuana.

Similarly, thousands of people have been killed in the Philippines in a drug war that intensified when President Rodrigo Duterte started cracking down on narcotics in 2016.

However, marijuana hasn’t always been illegal in Thailand or the region. Traditionally, it was used as a medicine for sore muscles for Thai field workers for thousands of years. Thai women also used it to ease labor pains.

Those who are familiar with the word “bong” may be surprised to discover that this word (referring to the water pipe used when smoking weed) has its origin in the Thai language. Marijuana only became illegal in Thailand in 1935.

The move to legalize cannabis, at least for medical purposes, is therefore seen as the Thai community returning to its roots of using the plant as a medicine.

Furthermore, Thailand already earns a lot from medical tourism. Adding cannabis to the treatment options available to its visitors will therefore boost the medical tourism industry.

Another major plus for the upcoming cannabis revival in Thailand is the favorable tropical climate of the country which can make it cheaper to grow cannabis when compared to the marijuana grows in other countries, such as Canada.

What is left is for the government to handle the controversy brewing over patents well so that the interests of the indigenous firms are protected without locking foreign companies out. The two need each other if the industry is to develop and thrive to its full potential.

Cannabis industry players, such as Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) and Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF), in areas where the sector is thriving can only hope that any sticking issues are resolved early so that the industry in Thailand takes off without any baggage to weigh it down.

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420 with CNW – South Korea Okays Medical Marijuana

In recent times, South Korea has been in the news for cracking down on cannabis use both locally and abroad. Their embassy in Canada even warned South Korean nationals that they will be prosecuted back home if they used medical or recreational cannabis in Canada or anywhere else. However, the East Asian country passed legislation in late November to allow the use of cannabis for medical purposes. This makes it the first East Asian country to do so.

The Food and Drug Safety ministry announced that epilepsy sufferers and those struggling with other rare diseases will be able to access medical marijuana early next year (2019).

The government further announced that medical cannabis products that had gained regulatory approval in other countries would be imported for use in South Korea. However, any medical cannabis product that hadn’t gained regulatory approval in its country of origin would be illegal to use in South Korea.

Similarly, South Korean companies will also be able to cultivate, manufacture and export medical cannabis products after getting regulatory approval from the relevant agencies.

To get medical cannabis, patients will have to submit their medical records showing that they have a qualifying condition. Those records will also be accompanied by a note from a doctor stating that the patient in question has a medical condition for which medication is unavailable in the country.

The Ministry of Food and Drug Safety will then scrutinize those papers and decide whether the patient can start using medical cannabis or not. Approved applicants will get their medical marijuana from the Orphan and Essential Drug Center.

In other words, the government will not allow private entities to participate in the distribution of medical cannabis to the citizens.

Some cannabis legislation advocates are beginning to speculate that the passing of the medical cannabis legislation may eventually pave the way for the legalization of recreational marijuana in the country.

However, such optimism may be farfetched given that the countries in Asia are known for being very conservative and any change comes extremely slowly. Let us not forget that Asian countries are famous for being very harsh on drug use. For example, extrajudicial killings are almost tacitly sanctioned by the Philippines government in case the victims are suspected drug traffickers.

Additionally, the examples of jurisdictions that started with medical marijuana and went on to decriminalize the adult-use of cannabis are still very few.

All the same, the move to allow patients in South Korea to access medical cannabis should be applauded since the substance may help those who had lost hope of ever getting any relief from their ailments.

The Flowr Corporation (TSX.V: FLWR), The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) and other industry players welcome South Koreans to the growing community of people who are enjoying the medicinal effects of cannabis.

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420 with CNW – New York Governor Speaks on Impending Cannabis Legalization

Traditionally, state Governors outline their plans during the State of the State address in January. However, New York State Governor Andrew Cuomo has opted to deliver his address early (on Monday, December 17). He talked about his priorities for the first 100 days in office. The issues discussed included his views on the legalization of recreational cannabis in the state.

Gov. Cuomo said that adult-use cannabis should be permitted “once and for all”, and he pledged to see this done within a few months from the start of the new Democrat-dominated legislature in January.

In his speech, it was clearly evident that his opinions on marijuana had undergone a major evolution because he was now championing legalization and yet he had previously opposed marijuana, even medical marijuana, as a gate-way substance.

The Governor lamented that it was time to change things and fix the injustices that had been suffered by the African-American community and other minorities during the selective enforcement of the laws against marijuana use.

The speech didn’t give any details about how the recreational use of marijuana will be regulated within the state. However, some information about the likely regulatory framework can be gleaned from a report that was submitted to the Governor by the Department of Health in the state.

The report famously concluded that the benefits of regulating and taxing cannabis outweighed any shortcomings that could be attributed to legalization of adult-use cannabis. This report seems to have tied the hands of the Governor, especially given that his major opponent (Cynthia Nixon) made legalization the center of her campaign.

The Health Department report estimated that legalizing recreational cannabis would add between $248 million and $677 million in tax revenue within the first year of legalization. Additionally, legalization would fix some of the imbalances in the criminal justice system while easing the opioid crisis.

It is not yet clear how the state will spend the millions in taxes expected from the recreational cannabis industry, but several sectors and sections of the community are clamoring for that money.

For example, one suggestion is that the money be directed to fix the crumbling subway system while other activists suggest that the money should go to the black community that bore the brunt of the injustices during the war on drugs.

The state legislators will have their hands full as they debate and decide how these monies will be spent. Already, some assembly members are threatening to withhold their support for the bill in case the tax money isn’t allocated in the way they approve, such as going to the black communities.

Green Hygienics Holdings Inc. (OTCQB: GRYN) and Golden Developing Solutions, Inc. (OTC: DVLP) urge all involved to consider all sides before eventually passing a law that will allow New Yorkers who so wish to consume recreational cannabis in a way that is safe for all.

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California Cannabis Market Offers Growth for Cultivation Suppliers as Authorities Tackle Licensing Backlog

CannabisNewsWire Editorial Coverage: Growth in the Californian cannabis industry, currently restricted by licensing delays, is expected to accelerate over the coming months, bringing profits for suppliers of cultivation equipment.

California is one of the largest recreational cannabis markets in the world.
Recent delays in issuing cannabis licenses in California seem to be approaching an end.
Outside California, the growing global reach of the cannabis industry is drawing interest from significant international investors.

Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) is one of the companies set to profit from this acceleration, thanks to its sales of hydroponic equipment to cannabis cultivators. Tilray, Inc. (NASDAQ: TLRY) is looking forward to a presence in Latin America after recently establishing a subsidiary in Chile. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has drawn billions of dollars in investment from a beverage giant, while Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has benefited from a similar move from big tobacco as those industries’ big names look to get involved in cannabis. Meanwhile, Aphria (NYSE: APHA) (TSX: APHA) is expanding its reach beyond North America through an acquisition in Germany.

To view an infographic of this editorial, click here.

California’s Pot Power

When California passed the Adult Use of Marijuana Act in November 2016, the legislation sent waves through the American cannabis industry. The legalization of recreational cannabis in the most populous U.S. state offered the potential for a huge and lucrative market. The first U.S. state to legalize medical cannabis, California had been near the forefront of the cannabis industry for more than 20 years.

With an estimated population of nearly 40 million people and an electorate that had voted by a 57 percent majority in favor of legalization, California clearly has huge potential for the industry. Not only cannabis growers and retailers but also the companies supporting and supplying them are set to benefit from the change. Recreational cannabis sales became legal in January 2018, and businesses have moved to make the most of the new market. Licensing has caused delays for many companies, but if authorities can tackle the backlog, there’s potential for an enormously influential industry to spring up.

Cultivation Operations

The cannabis industry doesn’t operate in isolation. Companies such as Sugarmade, Inc. (OTC: SGMD), which has become established in other industries, are now moving into this field.

Sugarmade is a product and brand marketing company that invests in products and brands with disruptive potential. Building upon experience in food, restaurant supplies and packaging, it has recently made two big moves in the cannabis sector. These are natural moves for companies aiming to expand their customer base in consumable products, applying existing skills and experience to a relatively new market, and the approach appears to be working well for the company.

Sugarmade’s most recent move in hemp is the investment of $1 million in Hempistry Inc., a Nevada corporation catering to the growing demand for the pharmacologically active CBD component of hemp. The investment is a bold move that comes just as hemp cultivation is on the verge of federal legalization.

Hydroponic equipment is vital to the cannabis industry. It allows producers to cultivate plants in secure, tightly controlled indoor facilities where they can ensure the product is healthy and its potency is appropriate to their market. Without the hydroponics industry, there is no cannabis industry; thus, the rise of cannabis has been hydroponics’ gain.

As a large hydroponics company whose reach includes its ZenHydro brand, Sugarmade could become a leading supplier to California’s cannabis industry. As companies expand to serve the growing market and new companies emerge alongside them, they will depend on cultivation supplies, and Sugarmade is forecasting accelerating revenue growth as a result.

Licensing Issues

Currently, the biggest obstacle to this growth is the ability of California authorities to license cannabis cultivation applicants.

As with any drug requiring a doctor’s prescription, cannabis should be properly regulated. California’s laws include provisions for this, requiring commercial growers to apply for cultivation licenses to operate within the state. However, because federal law still prohibits the cannabis industry, it is difficult for cannabis companies to operate across state lines. Therefore, those aiming to sell cannabis in California will need to grow the crop within the geographic bounds of the market.

Companies applying to grow cannabis in California have encountered a fluid response over the past few months. Recreational legalization encouraged a rush of license applications as approved medical cannabis companies sought the ability to supply the new market and entrepreneurs sought to seize their own piece of the pie. This inevitably put a strain on the system, as happens after any big change. Applications started piling up. According to state licensing agency CalCannabis, an estimated 2,547 cultivation licenses were under review by the beginning of November, with little sign that the backlog was moving.

This slow movement has delayed expansion for the whole industry, including hydroponics suppliers such as Sugarmade. Without a license, the equipment to grow cannabis is of no use to a dedicated cultivator. A lack of licenses deters investment in the associated hardware and supplies. Until the industry is fully up and running, the consumer market won’t have time to fully expand.

Light at the End of the Tunnel

Fortunately, the problems appear to be nearing an end, spurred on by a crisis point.

Around 6,000 licenses have been issued on a temporary basis, with 1,054 of them about to expire. Given the further disruption to the industry that problem could cause, authorities seem to be speeding up their efforts to tackle the backlog. The licensing agency has started issuing annual permits, and industry insiders expect this process to accelerate over the next few weeks. More licenses will mean more companies cultivating cannabis, which will mean more purchases from cultivation suppliers such as Sugarmade.

Jimmy Chan, the CEO of Sugarmade, said: “Our customers, especially those in Santa Barbara, Monterey and Humbolt counties, the three most prolific cultivation areas in California, are indicating to us they too are expecting the permitting process to break free shortly, and they are thus informing us of their plans to accelerate purchasing. We believe this will add to our already strong expected growth rate. We are seeing the cultivation market increasingly shift to the larger commercial growers and we view these operators as our prime markets. We believe, especially considering the recently announced acquisition of Sky Unlimited, LLC, which focuses primarily on these large cultivation operators, we are optimally positioned to meet this expected wave of purchasing of cultivation supplies.”

The Bigger Cannabis Picture

California’s huge potential and brief licensing crisis are only small details in the much bigger picture of the global cannabis industry.

Tilray, Inc. (NASDAQ: TLRY) is a pioneer in the cultivation, production and distribution of cannabis and cannabis-derived chemicals, as well as in research to improve understanding of them. Through affiliates in Canada, Australia, New Zealand, Germany and Portugal, Tilray operates across multiple continents, engaging with researchers, doctors and consumers. It recently made a move into Latin America through its new subsidiary Tilray Latin America SpA. Licensed by the Chilean government to produce medical cannabis, Tilray is using Chile as a base to prepare for sales into other Latin American markets, as local laws allow.

One of the most important trends in the cannabis industry is the increasing interest outside companies exhibit in getting involved. Alcohol and tobacco companies have been sniffing around the big players of cannabis, which are relative small fry by comparison and therefore can easily be given a proportionately significant boost. The best-known example is Constellation Brands’ investment of $4 billion in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), showing Constellation’s interest in the future of the cannabis market. The involvement of big alcohol and tobacco companies, with their experience in lobbying and public relations for recreational drugs, will put more momentum behind the global move towards legalization.

Like Tilray, Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is making the most of the growing global market for cannabis, doing business in North America, Latin America, Europe, Australia and Israel. The company has recently secured C$2.4 billion in investment from Altria Group, the owners of Phillip Morris USA. A move in line with Constellation’s investment in Canopy Growth, this will see a strengthening of ties between big tobacco and cannabis. As tobacco companies see their profits hit by anti-smoking campaigns, cannabis offers a promising alternative, and their presence provides a promising source of finance for cannabis.

Aphria (NYSE: APHA) (TSX: APHA), another North American company with investments in Latin America, has recently announced a move to strengthen its presence in Europe through the acquisition of CC Pharma. CC Pharma is a leading distributor of pharmaceuticals to Germany pharmacies that will provide Aphria with a useful channel to get its products onto German shelves.

The cannabis market is becoming a truly global one, with sales on nearly every continent and investment from huge multinationals. Even so, some regions remain particularly crucial, and an accelerated pace of licensing in California will bring huge benefits to the industry.

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

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