420 with CNW – California Launches Public Campaign Against the Illicit Marijuana Market

The legal marijuana industry in California has been grappling with a number of challenges, chief of which is how to stamp out the illicit operators in the state. On Friday, the state launched a public campaign aimed at educating the public about the dangers associated with cannabis from the black market.

The “Get #Weedwise” campaign is intended to encourage people to only buy marijuana from the regulated market. The campaign will also send out warnings to the illegal operators to either get licensed or close shop.

In a press release, the Bureau of Cannabis Control (BCC) chief, Lori Ajax, said that this campaign is the first of its kind and it will educate members of the public about the differences between the weed obtained from licensed operators and that from the illicit market.

For example, the BCC will tell people that marijuana from licensed sources has been tested to ascertain its potency, purity and safety. In this regard, one of the ads states that “What is in your weed shouldn’t be a mystery. Buy legal cannabis only.”

The multilingual messages used in this campaign will be disseminated using a variety of methods so that the information reaches “as many eyeballs as possible.”

Many of those messages will be beamed out on digital platforms telling consumers that the marijuana on the black market is potentially tainted with fecal matter, pesticides and mold.

Businesses will also be reached during this campaign. Messages will be sent out warning that cash and illegal goods will be seized if those unlicensed businesses continue operating. The campaign will also provide an expedited way for illicit businesses that wish to become legal to get licensed.

This public campaign is expected to cost at least $1.7 million. More money will be injected into the “Get #Weedwise” campaign as time goes by.

This public campaign comes at a time when there are ongoing battles between the state and local authorities which have not only banned the opening of cannabis businesses within their jurisdictions but are also trying to block the delivery of cannabis from areas where businesses exist.

The few local authorities which have allowed cannabis businesses to operate are choking under the weight of illegal operators. This is the very reason why licensed operators in Los Angeles have formed a coalition to put pressure on the state government to act more decisively against the black market operators.

The step taken by California is likely to be welcomed by all in the industry, including players like Hemptown USA and Green Hygienics Holdings Inc. (OTCQB: GRYN) since it will help to bring marijuana further into the mainstream.

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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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420 with CNW – CBD Shows Promise in Study on Superbugs

As bugs get more resistant to the existing antibiotics, researchers are looking for new ways to combat infections and cannabidiol, a marijuana compound, is showing promise as a remedy for superbugs.

A new study conducted by researchers in Brisbane, Australia has shown that CBD has promising antimicrobial activity against some strains of Gram-positive bacteria, such as varieties of strep and staph bacteria.

In the study, a synthetic form of CBD was placed in lab dishes containing the bugs being investigated. The cannabis compound showed the same level of antimicrobial activity as two existing prescription antibiotics (daptomycin and vancomycin). The synthetic CBD even went as far as killing some strains of strep and staph bacteria that no longer responded to the two prescription antibiotics.

Additionally, the synthetic compound also acted against bacterial biofilms. These biofilms are formed when proteins are secreted by bacteria on surfaces. Such surfaces can become slippery, and the resulted infections are very difficult to treat. The in vitro tests showed that CBD can combat such biofilms.

The researchers have cautioned that people should not start treating themselves against infections using CBD since this research was an in vitro (in test tubes) study and the findings aren’t a guarantee that similar results will be observed in humans.

Mark Blaskovich, the lead author of the study, said that people are better off sticking to the current treatment options against infections until such a time when their preliminary research findings are pursued further and confirm that CBD works effectively to fight infections in humans.

The study was conducted as a collaboration between Botanix Pharmaceuticals (a drug discovery company) and the Center for Superbug Solutions at the University of Queensland in Brisbane, Australia.

While the research is yet to be published in a peer-reviewed journal, it was presented on June 23 to the American Society for Microbiology during its annual meeting in San Francisco.

It is still early days before CBD is developed into a drug for infections. As already mentioned, further research is needed to establish at what dosage CBD can combat infections in humans, how best to administer the compound for maximum effect, and what side effects, if any, may result from the use of CBD as an antibiotic at the therapeutic dosage established.

The authors of this study are now set on conducting animal studies on the antibacterial activity of CBD while Botanix Pharmaceuticals has set its sights on studying whether CBD can be used to kill staph bacteria on the skin of people before they undergo surgery. This step is essential in preventing post-surgical infections.

Industry watchers expect the entire cannabis industry, including players like Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and Golden Developing Solutions Inc. (OTC: DVLP), to feel vindicated by the proof emerging about the health benefits of different marijuana compounds.

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420 with CNW – Company Invents CBD Extraction Method Aimed at Bringing Prices Down

While the popularity of cannabidiol (CBD) has been growing, the current price of high-quality CBD oil is so high that it is out of reach for many of the people who need it the most. Draconis Extraction Technology (DET) has come up with a system which will extract crude CBD on an industrial scale and lower the cost of the final product.

The large-scale ethanol extraction process is patented and is set to start being used to avail winterized, full-spectrum de-waxed CBD oil.

Paul Baskis, the person who invented the extraction system says he was driven by a desire to help those who badly need CBD oil but struggle to afford it. He singled out veterans who suffer from different conditions, such as PTSD and anxiety.

Currently, 1,000mg of CBD oil costs $350 on the market and this oil can last approximately 11 days for a person weighing 180 pounds with a recommendation of 5mg for each pound of body weight. How many people can afford such a cost, he wondered.

The technology introduced by DET will make it cheaper for crude CBD oil to be available without sacrificing the quality of the product. Paul Baskis boasts that the crude oil his extraction system will produce is so pure that someone can vape it without seeing any residues in the vape pen.

The other novel thing about this extraction method is that no waste is generated. The oils and waxes removed are also products in their own right. For example, the waxes are sold as raw materials for the cosmetics industry while the pulp is ready to use in the manufacture of bioplastics, paper and fabrics.

The hemp pulp can also be converted into fuel to power the extraction system and the residue from this fuel is a high-quality carbon-based fertilizer.

Max Le Pera, the Vice President of Draconis, explained that the company feels strongly about environmental sustainability and the need for a circular economy in which each section of the company feeds another without causing any adverse effect on the environment.

The example set by DET shows just how far the recently legalized hemp industry can go in terms of offering solutions to the different problems facing the country, such as reviving the economy of rural areas where hemp can be grown.

The unveiling of this new extraction technology must be having industry players like Geyser Brands Inc. (TSX.V: GYSR) and Earth Science Tech Inc. (OTCQB: ETST) imagining how easier things are going to get as more innovators enter the cannabis and hemp space.

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420 with CNW – More Pregnant Women Using Marijuana to Treat Morning Sickness

It has been widely reported that marijuana can treat morning sickness, so it isn’t surprising that more women are resorting to cannabis to ease the symptoms of morning sickness during the initial stages of pregnancy. Researchers have found that the number of pregnant women turning to cannabis is higher than it ever was.

The study published in the JAMA journal found that the number of women who use cannabis to deal with morning sickness has more than doubled from just 3.4 percent in 2002 to 7 percent in 2017.

These findings were obtained after analyzing the data collected during the National Survey on Drug Use and Health. The researchers specifically considered the data provided by 4,400 pregnant women as well as 133,900 women who weren’t pregnant.

The study participants had responded to questions regarding their pregnancy status and other questions about their cannabis use habits, if they used cannabis.

This study reveals that women use marijuana for various reasons, both medicinal and recreational. More specifically, the number of women who used marijuana daily or almost daily grew from 0.9 percent to about 3.4 percent.

Notably, the number of women who used marijuana during their first trimester of pregnancy shot up from 1.9 percent to 5.3 percent while those who used the substance during their second trimester rose to 2.5 percent from 0.6 percent in 2002. A similar increase was seen regarding marijuana use during the third trimester (a growth from 0.5 percent to 2.5 percent in 2017).

The researchers noted that while lots of women are turning to cannabis during pregnancy, only a small fraction of those women did so after getting a recommendation from a doctor.

The study also revealed that doctors are uncomfortable recommending marijuana for pregnant women in states where medical marijuana is legal. This reluctance is largely due to the shortage of research on the effects of prenatal marijuana exposure.

In fact, NIDA (the National Institute on Drug Abuse) says the use of marijuana during the first and second trimester of pregnancy has been linked to low birth weight and length, as well as other developmental problems.

The study’s authors emphasized that there is an urgent need to screen all pregnant women for marijuana use and intervene appropriately when risks are detected. The researchers also called for more research to be done to document the effects of marijuana use during pregnancy so that decisions can be made using concrete information on the subject rather than simply asking women to err on the side of caution and abstain.

Analysts think that the cannabis industry, including participants like Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) and ChineseInvestors.com Inc. (OTCQB: CIIX), agrees with the researchers on the matter of research-based recommendations regarding cannabis use by different demographics.

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420 with CNW – New York Marijuana Decriminalization Expands as Full Legalization Fails

As plans to legalize marijuana fully appear to have hit a dead end in the New York State legislature, the lawmakers have agreed to expand the decriminalization of the drug in addition to providing for the automatic expungement of low-level cannabis possession convictions across the state.

On Thursday, Senators agreed to treat the possession of up to two ounces of cannabis as an infraction punishable by a $50 fine instead of regarding it as a crime. This measure marks a huge change in a state where thousands of residents have been caught on the wrong side of the law and been incarcerated.

The agreement on the expungement measure comes as a compromise deal after it became apparent that there wouldn’t be enough support to pass a full legalization measure. While legalization has failed, cannabis industry advocates still regard this approved measure as a step forward for the industry.

The bill passed with a 39-23 vote in the Senate as the legislative session dragged beyond its expected end on Wednesday.

Gov. Cuomo, who a couple of years ago called marijuana a “getaway drug” was all praises for the decriminalization measure. He said the measure will give relief to the thousands snared by the state’s criminal justice system because of marijuana.

This isn’t the first time that the State of New York is decriminalizing marijuana possession. In 1977, the state decriminalized the possession of a maximum of 25 grams. The new bill more than doubles that possession limit.

It should be noted that under the new law, the possession of more than 2 ounces of marijuana is still a crime and nothing has changed regarding smoking cannabis in public. It is still forbidden.

All the same, this limited measure is still a victory because New York has been notorious for its restrictive marijuana laws. For example, under the medical marijuana program which was legalized in 2014, smoking medical marijuana isn’t allowed.

Many Senators who spoke during the hearing on the measure were disappointed that the bill didn’t seek to fully legalize marijuana. They cited the fact that medical marijuana has been legal for years as proof that cannabis has some value, so they couldn’t understand why it still remained illegal in the state.

The legislators are also debating a proposal tabled by State Senator Diane Savino to expand the medical cannabis program from its “current overly restrictive design” to something more accommodative.

Republicans, who are now the minority in both legislative chambers in New York State, made futile attempts to block the decriminalization measure, calling it “harmful to people.” It isn’t yet clear how industry players like Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) and Canopy Rivers Inc. (TSX.V: RIV) (OTC: CNPOF) will react to the current cannabis news coming out of Albany.

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420 with CNW – Congress Votes to Stop Feds from Interfering in State Marijuana Programs

The House of Representatives has voted to block the Department of Justice (DOJ) from using its funds to enforce federal cannabis laws within states which have passed their own laws regulating recreational or medical marijuana cultivation, consumption and sales.

This measure was one of the several amendments put before the floor for inclusion in the appropriations bill for Fiscal Year 2020. The measure, which expands an existing rider that protected medical marijuana programs, was approved on Thursday by a 267-165 vote.

Marijuana industry advocates are convinced that the vote tally reflects the broad support for marijuana law reform, and this support can be used to effect further reforms of the federal marijuana laws.

A day earlier (June 19), the House had also passed another measure seeking to protect the marijuana laws of Indian tribes. This particular measure was passed through a voice vote without any lawmaker asking for a roll call vote. The rider now makes it to the appropriations bill as well.

Rep. McClintock, one of the sponsors of the measure which was approved on Thursday, wrote a letter to members of the House on the day of the vote reminding them that what was at stake was a question on whether the federal government had any authority to dictate on matters of policy regarding an issue which happens within the borders of a state. In his view, which other members appear to have agreed with from the way they voted, the federal government didn’t have that constitutional authority.

Marijuana Policy Project, Drug Policy Alliance, Cannabis Trade Federation, and other marijuana advocacy groups hailed the decision of Congress as historical and a sign that lawmakers in the House of Representatives are waking up to the fact that marijuana law reform “isn’t just good policy but has also become good politics.”

It has emerged that the makers of the only CBD-derived drug to be approved by the FDA wrote to congressional staff telling them that the spending rider before the House should be defeated since it “could interfere with the DOJ’s ability to carry out its regulatory mandate.” The letter from Greenwich Biosciences was seen as being in bad taste since the “Big Pharma” company wanted to protect its interests at the expense of the interests of the people in states with marijuana-friendly laws.

The measures now head to the Appropriations Committee of Senate for consideration, and it isn’t yet clear whether they will be favorably received there. In the past, this committee has consistently approved the spending rider stopping DOJ from interfering in state-level medical marijuana programs. Now that the new amendments include protections for recreational marijuana, the industry isn’t sure how the Republicans in the Senate Committee will react.

Industry analysts are wondering what players like Youngevity International Inc. (NASDAQ: YGYI) and Cannabis Strategic Ventures Inc. (OTCQB: NUGS) would say to the senators if they had a chance to talk to them before they vote on the amendments.

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420 with CNW – How Marijuana Legalization Law in Illinois Differs from All Others

If, as is widely expected, Gov. Pritzker signs a bill that was passed to legalize recreational cannabis in Illinois, the state’s legalization law will be different from all others in several aspects.

First, Illinois will have defied the odds to legalize adult-use marijuana legislatively. All the other ten states have done so through voter initiatives. Lawmakers in New Jersey and New York at one time seemed poised to pass bills legalizing recreational marijuana but intraparty disagreements have torpedoed those plans.

Another way in which Illinois’ law is unique is that it contains provisions which are aimed at promoting social equity in the marijuana industry. The law creates a Cannabis Business Development Fund through which minorities will be supported to join the legal industry. $12million has been earmarked for this fund and a fraction of the fees levied on players in the cannabis industry will go to this fund as well.

Additionally, licensing fees will be lowered for applicants from minority communities who wish to start recreational marijuana businesses. Loans will also be given to these “equity” applicants at low interest rates. This will address the longstanding difficulty that members of these communities have always had when it comes to accessing business loans.

The law also stipulates that at least eight community colleges should offer marijuana business education programs by September 2020. A minimum of five of those colleges should enroll at least half of their students from low-income communities since those are the primary beneficiaries of this provision in the law.

Another unique feature of the Illinois law is that 25 percent of the sales tax levied on recreational marijuana sales as well as 25 percent of all other fees levied in the industry will go towards funding a “Restore, Reinvent and Renew” program through which grants will be given for the purpose of combating violence and revitalizing the communities most affected by the war on drugs.

The lawmakers in Illinois didn’t just talk about social justice and equity; they went all out and formulated a law which spells out exactly how these ideals will be brought to life in the state. This law is certainly going to be a model from which other jurisdictions borrow ideas when formulating their own laws.

One has no choice but to believe that the entire marijuana industry, including Therma Bright Inc. (TSX.V: THRM) (OTC: THRBF) and The Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF), are likely to be pleased by this cannabis news coming out of Illinois.

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420 with CNW – Medical Marijuana Dispensary Introduces its Own Credit Cards to Reduce Cash Transactions

Columbia Care, a medical marijuana company, has rolled out its own credit card as the cannabis industry struggles to find alternatives to having to deal in cash only.

Just like banks, credit card providers have been reluctant to embrace the marijuana industry because of fears that they would be sanctioned by the federal government since marijuana remains an illegal substance federally.

This has compelled most dispensaries to accept only cash, with ATMs being a frequent sight on the premises of dispensaries. Some dispensaries have designed systems which accept ATM or debit cards for making payments for purchases made.

Columbia Care has been running trials of its credit card in New York and it now plans to roll out this system in Chicago where it has a dispensary within the Jefferson Park neighborhood. Nicolas Vita, the company’s CEO says that patients spend approximately $144 each time they visit the dispensary in Chicago.

He added that the introduction of the credit cards will make it easier for patients to access the medical marijuana products that they need. He singled out patients who have mobility challenges and those who travel long distances to find a dispensary as some of the patients who may buy more products once they have the credit card. Buying more during a single visit reduces the frequency of making trips to purchase replenishments.

To get the credit card, patrons will be asked to use the tablet in the dispensary to fill a form. The credit card will then be processed quickly and the dispensary client will be in position to use that card during that same visit.

Columbia Care revealed that it is working hard to secure intermediaries and financial institutions in all the 12 states where the company has operations. Those partnerships will make it possible for dispensary clients to use the credit card in those other states.

Unlike other credit cards, the one issued by Columbia Care will not attract any fees. Its annual interest rate (15.99 percent) is also lower than the industry average (17.73 percent).

When the credit card was tested in New York, customers bought approximately 18 percent more products when using the credit card when compared to the purchases made when paying cash or using an ATM or debit card.

Other attempts have been made to find alternative ways to receive payments, but some of those methods border on illegality. For example, some companies accept credit cards but the purchases are reflected on credit card statements as spending at a florist’s while other companies ask clients to buy a gift card and then use that gift card to buy marijuana products.

Meanwhile, there has been a recent push by different groups, such as Attorneys General and banking associations, urging Congress to enact legislation bringing marijuana industry money into the banking system.

It would be interesting to know what industry players like Sugarmade Inc. (OTCQB: SGMD) and Sproutly Canada Inc. (CSE: SPR) (OTCQB: SRUTF) (FRA: 38G) think about some of the unorthodox payment methods that some marijuana companies have resorted to.

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Acquisitions, Licenses, Research Key in Consistent Cannabis Market Growth

CannabisNewsWire Editorial Coverage: The cannabis sector continues its steady shift toward big business and big money, with much of growth based on acquisitions, agreements and consistent research.

TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8) (TCAN Profile) is focused on creating a large operation with various licenses and recognized brands, with several key acquisitions, being part of that strategy. Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) is in the process of acquiring PharmaCann, which recently received an extension to complete the development of its cultivation facility in Ohio. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) just entered into a multiyear supply agreement that will help the company provide high-quality products to consumers in anticipation of the derivative market launching in Canada this fall. Tilray Inc. (NASDAQ: TLRY) recently completed its acquisition of Manitoba Harvest, the largest hemp food company. GW Pharmaceuticals Plc (NASDAQ: GWPH) continues its march forward as a leader in cannabinoid prescription medicines sector with its recent announcement of positive, top-line results of a Phase 3 clinical trial of Epidiolex® in the treatment of seizures associated with a rare and severe form of childhood-onset epilepsy.

Cannabis companies are engaging in multimillion-dollar acquisitions in growing numbers.
This strategy supports a consolidation of the industry as it moves from scattered creativity to efficient large businesses.
The trend is built in part on intangible assets, including brands, licenses and research.

To view an infographic of this editorial, click here.

A Very Different Business

The image of the cannabis industry varies significantly depending upon an individual’s point of view. To supporters, the market is a transformative sector aimed at bringing the world together. Detractors call the industry one more vice threatening public morals. For many standing in the middle ground, the sector is a space where hippies and stoners can thrive but not necessarily one that encourages the buzz and dynamism of mainstream business.

In reality, the cannabis sector fits none of these images. The industry is emerging from its early nascent steps into legality to become a significant business sector much like any other, with all the elements of modern capitalism. This growth appears to be reflected in the sector’s recent burst of mergers and acquisitions.

Big-Money Deals

Certainly one of the most eye-catching aspect of mergers and acquisitions in the cannabis sector is the significant amount money involved. Take just two recent examples from a single company: TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8).

In the past few months, the Vancouver-based cannabis company has made announcements on two major deals. First came the acquisition of a 196,000-square-foot vertically integrated cannabis facility for a total purchase price of $15 million. Then came a letter of intent relating to Californian company Lyfted Farms outlining TransCanna’s plans to acquire Lyfted’s business and assets for $5.5 million.

By some standards, these might not seem like significant deals. But when a company is investing $20 million on expansion in the space of a couple of months, stability seems evident. That TransCanna can make these deals is a show not only of the strength of the company but also the strength of the industry.

The financial growth of the legal cannabis industry has been a positive move for everyone from company leaders to their lowest-paid employees. The legalized trade is pulling money out of the black-market economy and allowing those at the top to earn big bucks while also providing employees with a decent wage. Far from weakening the power of legal providers, paying employees properly is leaving them with enough money to go around buying up competitors, as TransCanna is doing.

Success has also brought funds from outside. From private individuals to big alcohol and tobacco companies, investors are pouring money into pot, allowing businesses to expand while keeping their employees happy. There are living wages at the bottom and big money at the top.

Tidying Up the Market

The progression of the legal cannabis industry started with a scattered approach. TransCanna is one of many companies that started in the market with a relatively small presence. Some began as entrepreneurs seeing a new industry within which to operate. Others were experienced cannabis cultivators moving from the illegal to the legal market. Still others were pharmaceutical companies dipping their toes into a new medicine and, from there, into the recreational industry.

As a result, the cannabis industry was initially made up of diverse and disconnected businesses. Now, however, the sector is moving toward a space of consolidation.

This doesn’t mean that the variety created in that early surge is being lost. When larger companies buy up smaller ones, the aim is often to continue supporting and growing the individual brands and styles the smaller companies have created. For example, TransCanna has announced the acquisition of GoodFellas, allowing TransCanna to take control of the Daily Cannabis Goods brand. TransCanna CEO Jim Pakulis has talked not in terms of absorbing the Daily brand into TransCanna’s existing identity but in terms of maintaining Daily and expanding its sales.

The consolidation of multiple brands and businesses into a smaller number reflects a dialectic process that’s common in new business areas. First comes a burst of creativity. With few precedents and no big players dominating the market, entrepreneurs and creatives have free rein. Some of their experiments fail, but the ones that succeed get consumers interested and fill the market with ideas.

While this creates plenty of exciting idea and products, it’s also inefficient. In the phase that follows, bigger companies step in or emerge from among the smaller ones. Consolidation creates efficiency, providing more reliable products for consumers and better value for companies.

The Power of the Immaterial

In the illegal market, product was the main focus for cannabis sellers. In the legal market, the focus is different. When a company relies on the full complement of marketing, intangible assets become important. That’s why GoodFellas is valuable to TransCanna — not just for its cannabis but for the Daily brand attached to it.

And while intangible assets are normally talked about in terms of brand and IP, there’s another sort of asset that gets much less publicity and that the cannabis industry is bringing to investors’ attention: legal licenses.

Licenses of various sorts are important for a wide range of industries, from food production to mining. But they have a particular prominence in the cannabis industry because tight regulation has created a scarcity of licenses. When TransCanna subsidiary TCM Distribution Inc. gained cannabis manufacturing and distribution permits from the City of Adelanto, California, it was an important step in the company’s growth within the state. And when a deal like TransCanna’s acquisition of Lyfted is announced, the target’s cannabis licenses are often mentioned. These licenses are a crucial asset and one that investors are concerned about. Without the licenses, the business can’t function.

The prominence of licenses is a new feature of investment for those going into cannabis. But it could be a feature that helps investors recognize these assets in other companies. Cannabis companies are increasingly about immaterial assets, and immaterial assets are increasingly about licenses as well as IP.

Keeping Profiles High

In such an atmosphere, cannabis companies are working hard on keeping their profiles high while building up their portfolios of products.

Last year Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) soared 60% in one week when the company announced the deal to buy PharmaCann. PharmaCann is working to complete its $20-million cultivation center, which must be operational before the acquisition can be completed to comply with Ohio law, which requires a licensee to have operating certification before transferring a license to another owner. The deal will double the number of states where Los Angeles-based MedMen has licenses to operate – expanding the firm’s reach to 12 states with 66 retails stores and 13 cultivation facilities.

The agreement between Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) and MediPharm Labs Corp. will supply Cronos Group with approximately $30 million of high-quality, private-label cannabis concentrate over 18 months and, subject to certain renewal and purchase options, potentially up to $60 million concentrate over 24 months. In addition, Cronos Group and MediPharm Labs have entered into a multiyear tolling agreement, where Cronos Group will supply bulk cannabis to MediPharm Labs’ state-of-the-art extraction facility in Ontario.

With the completion of the acquisition, Manitoba Harvest will operate as a wholly owned subsidiary of Tilray Inc. (NASDAQ: TLRY), leveraging the expertise of Tilray’s global cannabis industry expertise. “Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry,” said Tilray president and CEO Brendan Kennedy. “It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories. We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”

The newest test results from GW Pharmaceuticals Plc (NASDAQ: GWPH), the world leader in the science, development, and commercialization of cannabinoid prescription medicines, expands the company’s knowledge of Epidiolex and its potential use beyond the current indications. “Data from previous controlled clinical trials of EPIDIOLEX have shown clinically meaningful seizure reductions and consistent safety and tolerability in children and adults with Lennox-Gastaut syndrome and Dravet syndrome,” said Dr. Elizabeth Thiele, the lead investigator of the trial, director of the Herscot Center for Tuberous Sclerosis Complex at Massachusetts General Hospital, and a professor of neurology at Harvard Medical School. “Based on the positive results of this trial in TSC patients, Epidiolex, if approved for this additional indication, may become an important treatment option also in this disease state with significant unmet medical need.”

The cannabis industry is clearly evolving with big money, consolidation and growing intangible assets playing pivotal roles in the growing strength and consistency of the sector.

For more information on TransCanna Holdings, visit TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8)

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420 with CNW – Texas Governor Signs Bill to Expand Medical Marijuana Program

On Friday last week (June 14), Gov. Greg Abbott signed a bill that is focused on increasing the number of qualifying conditions for which patients can be licensed to use medical marijuana in the state.

House Bill 3703 gives doctors permission to recommend any patient who suffers from seizure disorders (intractable epilepsy, for example), spasticity, Parkinson’s, multiple sclerosis, autism and several other conditions to access medical marijuana whose THC content doesn’t exceed 0.5 percent from the dispensaries licensed by the state.

Joshua Raine, an Army veteran suffering from post-traumatic stress disorder, is one of the patients who pleaded with legislators to include PTSD among the qualifying conditions for which someone can use medical marijuana.

He told the lawmakers that he has lost more friends (who are veterans) to suicide induced by PTSD than the number of friends he lost during combat operations. He admitted that without medical marijuana, he too could have committed suicide.

Blake Novacek is another patient who is likely to benefit from the enactment of this law. He was attacked violently during a fraternity pledge and that attack caused him to develop seizures. In fact, while waiting to talk to legislators during the debate on the medical marijuana expansion bill, Novacek started convulsing violently as the gravity of his situation showed itself at the state Capitol.

His father (a former Dallas Cowboys player) and mother pleaded to be given a chance to access medical cannabis legally so that they can save the life of their son. In the past, cannabis has helped massively, they added.

Texas is one of the most conservative states in terms of marijuana policy reform. The marijuana program in this state is so restrictive that the only form of medical cannabis allowed is cannabis oil whose THC content is much lower than what advocates say is required for therapeutic purposes.

Nonetheless, advocates are glad that the state has taken this modest step to expand the list of qualifying conditions from the very narrow version which has existed since low-THC cannabis oil was legalized as a form of treatment. Activists hope that more incremental reforms will be enacted until Texas’ medical marijuana program is at par with programs in other states.

Many Texans keep wondering how companies like The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) and The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) handle the frustration of thinking that a major decision was made without paying ample attention to the scientific information available but instead unfounded fears took the day.

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