420 with CNW — Ohio GOP Lawmakers Propose Banning Cannabis Home Grow in Major Changes to Measure

Republican lawmakers from Ohio are proposing a slew of amendments that would cause significant changes to the state’s voter-approved cannabis legalization measure. With the new legislation taking effect last Thursday, GOP lawmakers are looking to implement changes such as banning home-cannabis cultivation, increasing cannabis taxes and adjusting how the state distributes marijuana taxes.

Titled Issue 2, the recreational cannabis legalization measure was passed by Ohio voters last month and is subject to amendments by the legislature. The measure is currently in committee and has already been subject to many attempted changes. This includes a proposal to ban voter-approved home-cultivation provisions that would allow Ohioans to cultivate up to 6 cannabis plants per home and up to 12 plants per household.

Furthermore, GOP senators are proposing to raise the approved marijuana product tax from 10% to 15% and tax cannabis cultivators at rate. Tax revenue collected from the cannabis supply chain would be spent on law-enforcement training, general state funding, safe-driving training, and substance-abuse treatment and prevention.

The voter-approved measure would have directed most of this revenue to a social-equity program and local government-hosted dispensaries.

Northern Ohio Republican Senator Rob McColley says the changes to tax revenue allocations are meant to ensure cannabis tax revenue benefits the state instead of going back into the sector. Columbiana County Republican Senator Michael Rulli says the Senate General Government Committee’s goal is to provide Ohio adults with safe cannabis products.

However, Regulate Marijuana Like Alcohol spokesperson Tom Haren has criticized the proposed amendments and said they will “gut” the measure’s most critical provisions, such as social equity and home cultivation while increasing taxes on legal cannabis. Haren noted that ramping up cannabis taxes would make legal cannabis more expensive and encourage Ohioans to purchase more affordable cannabis from the black market or from Michigan’s cannabis market.

Despite dozens of states now allowing both recreational and medical cannabis, the United States still has an entrenched illicit cannabis market that has consistently undercut the legal industry. If states such as California, which has the largest cannabis industry on the globe, still cannot compete with their illicit markets, Ohio would undoubtedly struggle to remain competitive against cheaper cannabis from the black market.

It will take some time before the proposed changes are permanent. The changes will first have to clear the Senate before heading to the House, which despite having a Republican majority is more inclined to legalize recreational cannabis compared to the Senate.

Columbus Democrat Senator Bill DeMora has also criticized the changes, saying they “ignore the will of the voters,” especially the amendments eliminating home cultivation and changing cannabis tax allocations.

Companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that keep a close eye on the industry developments happening in different jurisdictions will probably follow the goings on in Ohio to see what form the recreational-cannabis industry takes in the months to come.

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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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CannabisNewsBreaks – Lexaria Bioscience Corp. (NASDAQ: LEXX) Targeting New and More Lucrative Global Markets

Lexaria Bioscience Corp. (NASDAQ: LEXX), a global innovator in drug delivery platforms, is exploring the impact of its patented DehydraTECH(TM) technology on the oral performance of GLP-1 drugs for the treatment of diabetes and weight loss. “The move could help Lexaria carve out an important market share for an industry that is projected to bring in between $150 billion and $200 billion a year. Given the positive results the company has achieved so far in its diabetes and hypertension clinical studies, Lexaria is optimistic that its foray into GLP-1 drugs will yield positive results and open up its technology to new and more lucrative global markets… GLP-1 agonists work by mimicking the effects of the naturally occurring hormone GLP-1, allowing for the regulation of blood sugar levels and appetite. As a by-product, these drugs have also been linked to weight loss, hence the overall warm reception the drugs have received and the overall uptick in their demand. Lexaria looks to tap into this growing demand, leveraging its DehydraTECH technology to further improve the oral performance of GLP-1 drugs for diabetes treatment and weight loss,” a recent article reads. “With DehydraTECH, Lexaria looks to make GLP-1 drugs more effective with reduced side effects and even more accessible to people with diabetes. It also looks to help drive up the uptake of oral GLP-1 agonists, mainly since they are less intrusive and less painful than injectable alternatives.”

To view the full article, visit https://ibn.fm/DpK7O

About Lexaria Bioscience Corp.

Lexaria’s patented drug delivery technology, DehydraTECH(TM), improves the way active pharmaceutical ingredients (“APIs”) enter the bloodstream through oral delivery. Since 2016, DehydraTECH has repeatedly demonstrated the ability to increase bio-absorption with cannabinoids, antiviral drugs, PDE5 inhibitors and more. DehydraTECH has also evidenced an ability to deliver some drugs more effectively across the blood brain barrier. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 37 patents granted and many patents pending worldwide. 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://ibn.fm/LEXX

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 — Governors Ask President Biden to Reschedule Cannabis

A collective appeal has been made by six state governors to President Joe Biden, urging him to facilitate the rescheduling of cannabis by year’s end. The letter, jointly signed by the governors of New York, Colorado, New Jersey, Illinois, Maryland and Louisiana, stresses the economic and fiscal advantages that would accrue to marijuana businesses if rescheduling occurs.

Currently classified as a Schedule I substance under the CSA, cannabis is federally considered a hazardous substance. Reclassifying it to Schedule III designates it as a lower-risk substance and would provide increased protection to the existing state-level cannabis industry and its consumers, benefiting both public health and the economy.

Last year, President Biden initiated a review of cannabis’ schedule, tasking the attorney general and HHS secretary with the exploration of reclassifying the substance from Schedule I. In August, the HHS sent a letter to the DEA advocating for the cannabis reclassification to Schedule III. Despite this, notable progress in rescheduling cannabis has been lacking since then.

The governors, in their letter, lend their support to the call for cannabis rescheduling, underscoring that 38 states have legalized cannabis for either recreational or medical use. Furthermore, 88% of people in the country back legalization, according to a 2022 Pew Research survey.

The economic advantages serve as a compelling endorsement for cannabis rescheduling. The letter reveals that state programs have contributed $14.9 billion in tax revenue to fund law enforcement, education and other historically underfunded priorities. Economically, reclassifying cannabis would alleviate the restrictions imposed by Section 280E of the IRS, allowing cannabis businesses to claim ordinary deductions, just as other U.S. businesses do.

The governors elucidate in the letter that relieving cannabis businesses of the burdens of Section 280E would render the industry financially viable, simultaneously preserving jobs and ensuring the health and safety of consumers. The governors also express concern about consumer health risks stemming from the absence of a federal cannabis policy, citing worries about unregulated products. They advocate for cannabis rescheduling to fortify protection against the unlicensed market and argue that maintaining its Schedule I status and prohibition policies is futile given the significant consumer demand for marijuana.

The fate of cannabis rescheduling lies with the DEA, which holds final authority over drug scheduling. The DEA has historically rejected rescheduling, citing reasons such as a lack of reproducible and known chemistry, limited expert support, and insufficient efficacy and safety studies. Once made, the DEA’s decision will be subject to a proposed regulation and notice-and-comment period and may face legal challenges because no specified timeframe is currently in place.

Cannabis rescheduling would remove one of the many hurdles that U.S.-based marijuana companies such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) have to navigate in their bid to serve a growing client base.

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420 with CNW — Japan Passes Bill Authorizing Cannabis-Based Medicines in Landmark Drug Policy Reversal

Japan recently approved a measure that would legalize cannabis-based drugs. The country, which has strict drug laws, plans to lift a ban on medical products derived from marijuana. These drugs, which are produced with CBD, are already used in some countries to manage conditions such as epilepsy.

CBD, or cannabidiol in full, is one of the two primary compounds found in marijuana. The other compound, tetrahydrocannabinol (THC), is known to induce a high when ingested.

This move by Japan is a win for groups that have championed for access to these drugs. The country’s Cannabis Control Act was introduced during the post-war United States occupation in 1948.

A survey on marijuana use conducted in Japan found that only 1.4% of individuals in the country had tried the drug. This figure is quite low, especially when compared to data from the United States showing 50% of the population have tried using marijuana and 40% have tried the drug in France.

Despite this move forward, the recreational use of marijuana has now been criminalized. Officials attributed the toughening of this ban on the recent increase in marijuana-related arrests.

Before the revision was made, inhaling cannabis had technically been legal, based on a loophole introduced so farmers wouldn’t be arrested for inhaling psychoactive smoke accidentally while cultivating hemp. However, following the recent rise in arrests over marijuana, particularly among the young, authorities decided to make changes to the law. Under the revised regulations, any individual found in the possession of marijuana or caught using the drug will face a sentence of up to seven years in jail.

Figures from the country’s health ministry show that the number of arrests made two years ago in relation to marijuana was 5,783, observing a significant increase among teenagers and youth in their twenties. Additionally, a police probe conducted on more than 700 individuals who were arrested based on cannabis possession found that almost 30% of them felt the lack of penalties against consuming marijuana gave them courage to thwart the law.

After the measure was approved in parliament, government spokesman Hirokazu Matsuno stated that the government hoped this revision would help curb the trend of more young people abusing cannabis.

It should be noted that the revised law will enter into effect a year from promulgation. Under this law, marijuana and THC are categorized as narcotics to be regulated. Additionally, two kinds of licenses for cultivating marijuana will be established: one for purposes such as hemp and the other for parties that grow the plant to make medicine.

The easing of marijuana laws in Japan is likely to be welcomed as a step in the right direction by industry players such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), which see this as a victory for progressive-minded people around the world.

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420 with CNW — Cultivation, Possession of Cannabis is Now Legal, But Ohioans Have Nowhere to Purchase It

Recreational marijuana sales in Ohio remain in a state of uncertainty following a recent development that permits adults to cultivate and possess marijuana at home but restricts them from legally purchasing it.

This week, Republican Governor Mike DeWine asked lawmakers to establish guidelines for Issue 2, the citizen initiative approved by voters in November, in an attempt to beat the law’s effective date. The state’s House declined to take up the matter despite the Senate’s successful last-minute agreement shortly before the statute went into effect.

Representative Jamie Callender clarified that there is no specific deadline for putting in place a legal sales framework. He emphasized the importance of a thoughtful approach, ensuring sufficient time for a comprehensive examination and resolution of aspects not taking immediate effect.

Representative Bill Seitz defended the adjournment of the House without debating the 160 pages of related legislation, arguing that it was absurd to pass such a significant proposal without adequate review; he emphasized the need for time to work through the difficulties of establishing marijuana sales, taxes and regulatory frameworks.

DeWine expressed concerns about potential adverse scenarios, such as the flourishing of illicit market sales or increased accessibility to cannabis products contaminated with substances such as fentanyl or pesticides.

Last year, legislators had a four-month window in which to act on Issue 2, a citizen-initiated statute, before it could go to the ballot. However, the Republican-controlled legislature opted for inaction, resulting in the November 7 ballot, which ended in a 57% vote in favor of the initiative.

The approved measure permits adults 21 years of age and older to cultivate up to 12 plants per household or 6 plants per individual, as well as to buy and possess up to 2.5 ounces of marijuana. It called for the creation of a legal cannabis purchasing system by the state within nine months, with a 10% tax. Sales proceeds would go toward paying for social-justice initiatives, addiction-treatment centers, dispensary-owning towns, administrative expenses and employment initiatives that boost the marijuana sector.

With the law about to take effect, Senate GOP leaders proposed a significant alteration to the voter-approved provisions, causing dissatisfaction among supporters and raising concerns in the House. The proposed amendments would have eliminated tax money for social-equality programs, reduced the amount of marijuana that may be possessed at one ounce, increased taxes on sales to fifteen percent, prohibited home cultivation, and transferred funds to the state government as a whole.

A deal that was worked out with DeWine and approved by the Senate in a 28-to-2 vote keeps the 15% tax on sales, lowers the maximum THC content permitted in marijuana extracts, reinstates the 2.5-ounce possession limit and permits up to 35% THC in plants. It also takes away the majority of state revenue control. The legislation gained Democratic support by including provisions to expunge criminal records for possession of up to two and a half ounces, requiring kid-safe packaging and prohibiting ads targeting minors — an initiative backed by the governor.

Senate President Matt Huffman defended the compromise as respecting voters’ decisions while addressing crucial concerns. He acknowledged his opposition to cannabis legalization but emphasized the need to comply with the law to prevent the emergence of an illegal market.

Louis Tobin, the Ohio Prosecuting Attorneys Association executive director, states that while there is still confusion surrounding commercial cannabis sales, several provisions of the new Ohio law are instantly enforceable. He highlighted that while it might be challenging to establish probable cause for carrying less than two and a half ounces of marijuana, some activities, such as smoking in cars, carrying more than is allowed, holding private sales and operating a vehicle while intoxicated, remain prohibited.

The evolving recreational marijuana regulatory system in Ohio is likely to be of interest to multistate operators such as Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) because it could potentially be a market they would consider expanding into.

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420 with CNW — New Poll Says 67% of Voters in Florida Back Recreational Cannabis Legalization

More than 700 residents in the state of Florida were polled by UNF Public Opinion Research Lab in a recent survey. This survey comes after the state’s Supreme Court heard arguments over the resolution to allow an amendment that would restrict purchases to three ounces of cannabis on the 2024 ballot.

From the poll, 67% of registered voters would support a state constitutional amendment that permitted adults to buy and possess cannabis for personal use. Additionally, 28% were against an amendment that would allow recreational marijuana to be legalized without a license while 5% were undecided on the matter.

While the results show strong interest in the decriminalization of marijuana, the support recorded in the latest poll is lower than results from previous surveys. The Public Opinion Research Lab asked voters in the state a similar question two years in a row, with 76% voicing their support for amendment in 2022. The following year, this figure had dropped to 70%.

Professor Michael Binder, the lab’s faculty director, attributed the drop to how the question was presented to voters. In a statement, Binder explained that while prior surveys simply asked voters if they were opposed or supported the legalization of recreational cannabis, the latest survey went into details of the proposed amendment. Additional details about the amendment shared in the latest poll include that it would permit entities licensed by the state to grow and sell cannabis products and accessories. It also stipulated that the new rules wouldn’t change federal law and would only apply to state law.

Despite the slight drop, a majority of respondents in every category that was polled had a positive stance on ending prohibition. This included 77% of Democrats, 58% of independent voters and 53% of GOP members. With regard to gender, 68% and 55% of women and men respectively supported the change.

When researchers used education as a metric, they determined that 64% of respondents with college degrees and 61% of those without were also in favor of the amendment. By race, 65% of Black and White respondents were in favor of cannabis being legalized. This is quite high, especially when compared to 52% of Hispanics who were of the same opinion.

Based on age, the poll determined that 77% of respondents aged 18 to 24 years of age backed marijuana legalization, with those aged 55 to 64 years old making up 71% of those in favor of recreational legalization. Voters aged 65 years and older who supported legalization of recreational cannabis made up 56% of Floridians surveyed.

The eventual legalization of recreational cannabis in Florida will be welcomed by not only companies intending to set up shop within the state but also other industry actors such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) that would like to see prohibition ended in all jurisdictions around the country.

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Lexaria Bioscience Corp. (NASDAQ: LEXX) Eyes Additional Revenue Opportunities for 2024; Continues to Generate New Data for its DehydraTECH Technology

Lexaria, a global innovator in drug delivery platforms, is projected by Zacks SCR to be valued at $10 a share, up from the current $1.50 for 2024
Zacks SCR projects a 259% YOY revenue growth for 2024 and a 20% growth for 2025, dependent upon the ultimate approval and commercialization of products employing its patented DehydraTECH(TM) technology
Lexaria also anticipates FDA approval for its IND application and commence its Phase 1b hypertension clinical trial, all in 2024

Lexaria Bioscience (NASDAQ: LEXX), a global innovator in drug delivery platforms, has had significant developments in 2023. Most notably, the company has seen more positive results for its patented DehydraTECH(TM) technology for various indications, including potential diabetes treatment, oral nicotine, and hypertension. Results in these studies set the stage for additional clinical trials for 2024. These have contributed to the company’s projected valuation of $10 a share, up from the current $1.50, per a recent Zacks SCR report (https://cnw.fm/ifIlY).

Zacks SCR projects 259% year-over-year (“YOY”) revenue growth for 2024 and a 20% YOY growth for 2025. This progression will largely depend on the ultimate approval and commercialization of products employing its DehydraTECH technology, mainly since the company receives most of its revenues from licensing and product sales, which can, in part, fund its research and development (“R&D”) operations. The success achieved so far in its hypertension, oral nicotine delivery, and diabetes studies shows important promise, and its management is optimistic that they will be integral to the company’s growth in the coming year.

In addition, other strategic moves that the company has made in 2023 are expected to further contribute to the company’s progress in 2024. Of note is the exclusive global collaboration and license agreement with SulfoSyn Limited that will allow for the non-pharmaceutical use of DehydraTECH with sulforaphane, a chemical compound found in a variety of cruciferous vegetables such as cabbage, cauliflower, and broccoli, among others. It is considered an antioxidant and anti-inflammatory with lots of health benefits. Another is Lexaria’s incorporation of a new wholly-owned subsidiary, Lexaria Nutraceutical Corp., that looks to optimize its DehydraTECH strategy that services several markets that fall under different regulatory regimes worldwide.

Within the first quarter of 2024, Lexaria anticipates approval for their Investigational New Drug (“IND”) application with the U.S. Food and Drug Administration (“FDA”) for its planned Phase 1b hypertension clinical trial, using DehydraTECH-CBD. It also hopes to close out its NIC-H22-1 clinical study on nicotine, update on final results, and commence with its Phase 1b hypertension study. The company’s animal GLP-1 study is also set to begin, with an update on objectives scheduled for the year’s first half.

These initiatives reflect Lexaria’s commitment to creating shareholder value. They also indicate its management’s confidence in its technology. Lexaria has invested a lot of time and resources in the R&D for its technology since 2016, and it is about to pay off. With its unique benefits, which include, but are not limited to, increasing brain absorption, speeding up delivery, and increasing bioavailability, the technology is seeing a decent uptake, and with the plans lined up for 2024, it is bound to be even higher, ultimately stamping Lexaria as a leader in its space.

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 — Germany Pushes Vote on Legalization Measure to Next Year

The anticipated final vote on the legalization of cannabis in Germany, initially scheduled for this week, has been postponed due to concerns raised by leaders of the Social Democratic Party (SPD). SPDP member Dirk Heidenblut, who is in charge of the party’s marijuana policy in the Bundestag, stated in an Instagram post that parliamentary group consent is essential and that a vote cannot move forward if a faction leader, in this case the SPD, expresses concerns.

Despite the delay, Heidenblut reassured that as long as the measure progresses by the end of January, it should not significantly impact the timeline for…

420 with CNW — Rescheduling Cannabis Would Free Some Marijuana Companies from Section 280E

Earlier this year, the Department of Health and Human Services recommended that cannabis be moved to Schedule III of the Controlled Substances Act. This recommendation is currently being reviewed by the U.S. Drug Enforcement Agency (DEA). In the event that marijuana is reclassified, cannabis companies will no longer be affected by Section 280E of the IRS code.

Section 280E specifically forbids any business linked to the trafficking of substances classified under Schedule I or II from deducting business expenses from their federal tax returns. Surprisingly, however, the cost of goods sold, whether it’s drugs or other products, is still an allowable deduction.

This change will allow cannabis businesses to claim deductions for business expenses incurred during the financial year.

Section 280E was introduced in the early 1980s when Congress amended the tax code following a court ruling that allowed Jeff Edmondson, a convicted cannabis and cocaine trafficker, to claim deductions for expenses incurred during the sale of drugs.

Whitney Economics cofounder Beau Whitney believes the tax code affects cannabis retailers the most. As per his estimations, cannabis retailers in America collectively pay about $2 billion more on their federal returns. If section 280E didn’t apply, these businesses would be able to deduct their expenses.

In total, these monies add up to a tax rate in excess of 70%, almost four times higher than the 21% tax that other businesses pay on corporate income. This doesn’t mean that growers and manufacturers aren’t affected; they are, just to a lesser extent, because they usually aren’t paid until their products are sold.

It is expected that the DEA may reschedule cannabis in the first half of 2024. This change is expected to significantly decrease the cost structure of the marijuana industry, particularly for the retailers. The reduced tax burden could also lead to a decrease in retail prices for consumers, which could cause demand for marijuana products to increase.

Additionally, businesses would be able to plough returns back into their businesses. Adam Goers, senior VP for The Cannabist Co., stated that the loss of 280E would bring additional capital to the industry, for both small and large firms. This together with SAFE Banking, he noted, would establish a sustainable industry and allow focus to shift toward the federal legalization of marijuana. At the moment, however, marijuana remains classified as a Schedule I drug. Drugs under this classification are identified as having no accepted medical use and a high potential for abuse.

The anticipated scheduling change would be a big boost to the cannabis industry, including companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) that would not only benefit from getting relief from 280E but would also be able to access more institutional capital to expand their operations.

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CannabisNewsBreaks – Software Effective Solutions Corp. (SFWJ) Engages IBN for Corporate Communications Expertise

Software Effective Solutions (OTC: SFWJ), a global infrastructure and holding company in the cannabis industry, today announced that it has selected IBN, a multifaceted financial news and publishing company for private and public entities, to assist with its corporate communications initiatives. MedCana’s current portfolio includes five companies focused on pharmaceutical cannabis production, as well a software company focused on managing processes for plant-to-patient operations and an irrigation and greenhouse technology company. The company’s focus is on developing clients and companies in Latin America, initially in Colombia, and partnerships with laboratories, research facilities and hospitals around the world. As part of the client partner relationship, IBN will generate greater awareness for MedCana leveraging its investor based distribution network of 5,000+ key syndication outlets, various newsletters, social media channels, wire services via InvestorWire, blogs and other outreach tools.

To view the full article, visit https://cnw.fm/rw3QW

About Software Effective Solutions Corp.

Software Effective Solutions/MedCana is a global infrastructure and holding company in the cannabis industry. Currently, MedCana has five companies focused on pharmaceutical cannabis production and one software company focused on managing processes for plant-to-patient operations. The recent acquisition of an irrigation and greenhouse technology company has rounded out MedCana’s portfolio of companies. MedCana’s initial focus is on developing clients and companies in Latin America with an initial focus in Colombia and partnerships with laboratories, research facilities and hospitals throughout the world. For more information, visit the company’s website at www.MedCana.net.

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

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