Payment Solutions Among Innovations in the Fast-Growing Cannabis Industry

CannabisNewsWire Editorial Coverage: The legal cannabis industry, which anticipates massive growth over the next few years, is seeing constant innovation as companies move to provide essential services needed for that growth.

The global cannabis industry, which was worth $7.7 billion in 2016, is expected to reach $65 billion by 2023.
The industry’s upward trajectory is happening despite legal restrictions that have forced cannabis businesses to seek alternative payment solutions.
These solutions are among many innovations in the sector, which has a strong strand of research and design.

Net Element (NASDAQ: NETE) (NETE Profile) recently launched a compliant, secure payment processing solution focused on serving the legal cannabis industry. Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) is supplying materials for a range of research projects around the world that are studying cannabis’ potential in medicine. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has received massive investment from a beverage company and is likely to be one of the first companies selling cannabis-infused drinks. And the first U.S. Food and Drug Administration (FDA)-approved cannabis-based drug has just gone on sale from GW Pharmaceuticals Plc (NASDAQ: GWPH). Meanwhile, new uses for the plant are being found, as exemplified by Cronos Group, Inc.’s (NASDAQ: CRON) (TSX: CRON) research on the use of cannabis in skin cream.

To view an infographic of this editorial, click here.

Cannabis Payment Solutions

The cannabis industry is currently growing at an astonishing rate. Since 1996, its use for medical purposes has become legal in 31 U.S. states and Canada as well as a number of other countries around the world, most recently the United Kingdom. This remarkable pace of change has been accompanied by the emergence of related industries producing industrial hemp, cannabidiol (CBD) oil and support services for cannabis growers.

Despite this, legal cannabis sellers in the United States face serious problems in accessing basic business services. Because banks and payment providers are often wary of working with cannabis companies — even legal ones — these companies are forced to either accept the risks and inefficiencies of a cash-based business or seek alternative payment options. Fortunately, payment solutions are becoming increasingly viable.

The Challenge — And Opportunity

The challenge — and opportunity — with cannabis payment processing is significant enough to have drawn in businesses from outside the sector, such as global technology company Net Element (NASDAQ: NETE).

With the growth of the medical cannabis market has come more people are looking for one of the sectors most in-demand products — CBD oil, which is the concentrated liquid extract of the cannabis plant. Previously most CBD products were sold in head shops, but increasingly these products are found on the shelves of natural food stores, beauty aisles, cafes and doctors’ offices. This spread to other venues has created an even greater need for smooth transactions between merchants and consumers.

While the majority of states now allow the legal sale of some form of cannabis or its derivatives within their boundaries, cannabis providers may still find it challenging to find payment options that allow mobile payments, offer value-added transactions, and are easy for both the business and the end user. Fortunately, companies such as Net Element are positioning themselves to provide exactly what this underserved industry is looking for.

These alternative solutions, including Net Element’s Aptito and Unified Payments systems, solve the problem by offering a compliant, seamlessly integrated payment solution that is simple to use. The systems rely on the latest digital technology, which allows retailers to accept payments outside of conventional routes while remaining user friendly for customers.

More Sales, More Payments

It’s a good time for companies to expand their reach in the cannabis market, as Net Element is doing. The industry is experiencing a period of huge growth. According to recent research, the legal cannabis market was worth $7.7 billion in 2016 and is forecast to reach $65 billion by 2023, a staggering 37 percent rate of compound growth per year.

Various factors are playing into this. Cannabis is already a huge industry, but one historically run by criminal gangs. One of the reasons for wide legalization is to take that trade out of criminals’ hands. In the United States, 70 to 75 percent of the cannabis trade is still illegal, but only 30 percent of it is illicit in states with legal options on the books. As legal cannabis from regulated suppliers becomes more widely available, the expectation is customers will move away from illegal businesses. The customer base is already there, and it’s huge.

Ongoing changes in the legal landscape are also a factor. The White House has hinted that it is considering liberalizing federal cannabis laws. Shifts in medical-use cannabis are taking place in Germany and the United Kingdom. In the United States, the current Farm Bill has enough support that it is expected to legalize the widespread cultivation of industrial hemp for nonrecreational cannabis uses.

This last change ties into an unexpected and significant trend in the cannabis industry. Hemp, a nonpsychoactive form of cannabis, was used in manufacturing rope and cloth before being made illegal during the political campaign against marijuana. Now, it’s returning to legality as a source of a new material — CBD oil. This active ingredient of cannabis is used in a growing number of health and well-being products. The hemp and CBD parts of the industry alone are set to reach $22 billion by 2022. While CBD sales are still largest in the stores supported by companies such as Net Element, these products are moving towards the mainstream via health stores, beauty aisles and cafés.

Rising to the Problem

A growing sector with a need for innovative solutions is the perfect place for a company such as Net Element to act on its vision.

“We are excited to launch a legal cannabis payment acceptance solution to meet the needs of sales partners and merchants for this emerging market,” commented Vlad Sadovskiy, president of integrated payments for Net Element. “Addressing the needs of our merchants is our number one priority and we work closely with various vendors to bring our merchants state-of-the-art payment acceptance solutions.”

The cannabis sector is more than just cultivators and retailers. It also includes the companies that support those businesses, companies that are set to thrive if the industry maintains its spectacular growth. The industry’s circumstances have ensured that it has become a forward-looking one.

A Future-facing Industry

Cannabis companies constantly have an eye on the state of the legal landscape and the new opportunities it may create for the market. Because those companies are working in an industry that has been illegal, industry-building techniques and products are only beginning to be properly discussed now, with innovations in research and design being announced as a result. Constraints such as those established by the U.S. government are forcing them to find technological solutions to problems other companies don’t face.

Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) prides itself on the part it plays in pushing the industry forward. With a strong emphasis on industry and innovation, Tilray is committed to research that will expand the possibilities of cannabis, carried out in partnership with hospitals and universities. It is currently supplying products for a range of clinical trials in Australia and Canada that promote the safety and effectiveness of cannabis use in tackling ailments such as childhood epilepsy and chemotherapy-induced nausea.

Research and design work at Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has been super-charged by a recent investment of billions of dollars from American drinks company Constellation Brands. One of the reasons for Constellation’s move into cannabis is the potential for drinks infused with cannabis and CBD. The partnership with Canopy Growth is likely to lead to novel products that will become part of Canada’s large licensed cannabis market next year.

GW Pharmaceuticals Plc (NASDAQ: GWPH), a company with a strong history of research in the cannabis sector, has created the first plant-derived cannabinoid medicine to be approved by the FDA, which has just become available by prescription in the United States. This introduction of a federally approved cannabis-derived medicine is an important moment for the industry and may lead to the softening of political and regulatory attitudes that have previously held business back.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is investigating the use of cannabis in a relatively new area – skin care. The company has announced that it will be working with the Technion–Israel Institute of Technology to research the use of cannabinoids in skin care, research with potential to carry cannabis into more parts of the high street and the consciousness of more consumers.

From payment solutions to new products, the cannabis sector’s growth is fueling a rich wave of innovation.

For more information on Net Element, visit Net Element (NASDAQ: NETE)

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420 with CNW – Colorado Lawsuit Could Shake the Marijuana Industry

A federal court is set to hear a landmark case in Colorado which could have far-reaching implications for the young marijuana industry throughout the US. A couple is suing a cannabis company claiming that the odors from its indoor grow facility have made the couple unable to enjoy their property which is right next to the cannabis cultivation facility.

The plaintiffs are using the RICO (Racketeer Influenced and Corrupt Organizations) Act to claim that their property has lost value due to the “pungent, foul odors”. The law permits courts to award successful plaintiffs thrice the value lost in addition to legal fees.

The RICO Act was drafted and enacted decades ago to combat organized crime syndicates and organizations like the mafia. Under this law, the leaders of those organizations could also be liable when “the small fry” in their organizations were convicted.

The lawyers for the plaintiffs argue that it isn’t fair for their clients to be hurt by an industry which is illegal at the federal level.

The attorneys for the defendant intend to argue that the property in question hasn’t lost any value due to the presence of the marijuana grow. As part of their evidence, the defense will table proof that the property tax valuations of the land owned by Hope and Michael Reilly has been increasing over time. That increase cannot be possible if the value of that property has declined due to the existence of the grow facility in their neighborhood, they say.

The vulnerability to such lawsuits has been giving the legal teams of different cannabis businesses sleepless nights since the contradiction between state and federal law creates a gap which can potentially be exploited to hurt cannabis businesses and the entire industry.

The key concern in this Denver trial is whether the jury will agree with the plaintiffs or deny their claim. The extent to which the jury agrees (if it does agree) with the plaintiffs will also be watched closely.

For example, a decision that the property lost $5,000 dollars in value can have different implications for the cannabis industry when compared to a decision that sees the loss in value in excess of a million dollars.

Remember, the RICO Act stipulates that those who sue can get thrice the value lost in addition to the legal costs incurred during the litigation. Numbers are therefore important in such cases.

The precedent set by the outcome of the Colorado case can also open an avalanche of similar suits, or stem the tide before it makes landfall.

Marijuana industry players are keeping their fingers crossed as they follow the case in Denver. Youngevity International, Inc. (NASDAQ: YGYI) and American Premium Water Corp. (OTC: HIPH) certainly hope that any decision made by the federal court in Colorado doesn’t make it harder for marijuana businesses to operate since conditions are already hard as things stand (no access to banking services, etc.).

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420 with CNW – Southern Illinois University Begins Hemp and Cannabis Research

Medical cannabis became legal in Illinois in 2015, and Southern Illinois University is now taking steps to start a study and research program about marijuana and hemp.

The university announced that the cannabis and industrial hemp program will be offered at the Carbondale campus of the school. The announcement stated that the program on offer will make it possible for farmers and students to earn a certificate in medical cannabis or hemp.

The interim dean of agricultural sciences, Karen Midden, revealed that the program was the result of requests from current and prospective students as well as farmers in the community.

The cannabis and industrial hemp program will be interdisciplinary and the content studied will be taken from plant biology, chemistry, business, engineering and agriculture. Those who complete the program will be ready to work in these emerging industries.

Hemp is known to provide a very tough natural fiber whose uses are diverse across a variety of industries including the garment industry.

Medical cannabis can be helpful to patients suffering from different conditions, such as multiple sclerosis, chronic pain, epilepsy and so many others.

The university has already secured permission from the DEA to grow hemp and plans are in advanced stages to start growing the plant on a 5-acre piece of land. Small lots will be grown with each lot geared at answering a key research question about hemp, such as what the possible environmental impacts of the plant may be and what its ideal growing conditions are.

The students who enroll for the program will therefore have a firsthand experience of the different processes associated with growing and processing hemp into different products.

The cannabis industry in the state is also opening up more as time goes by. Initially, medical cannabis was only available to patients who had medical records to prove that they were suffering from one of the dozen or so qualifying conditions listed in the law that legalized medical cannabis.

However, the Governor of the state signed a law in August adding pain to the qualifying conditions for which one can get medicinal marijuana. Governor Bruce Rauner also lifted the existing ban on the cultivation of hemp.

These developments show that the cannabis and hemp sectors are on a forward march, so the new program offered by Southern Illinois University is a timely addition to the efforts of developing skilled people who can serve in these industries.

What is now left is to see how many people will take advantage of this unique opportunity to acquire training in the different aspects connected to hemp and medicinal marijuana. The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) and TransCanna certainly know what a huge help a skilled labor force can be when an industry is just emerging.

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Bumper Hemp Crops Promise Profit for Farmers and Cannabis Companies

CannabisNewsWire Editorial Coverage: This year will see the largest U.S. hemp crop since changes to federal law created an avenue for production to start again, turning over decades of fallowed industry.

Thousands of acres of hemp will be harvested across 19 states.
Kentucky is seeing particularly good crops, due to near-perfect growing conditions over the summer.
The main product taken from these crops will be cannabidiol (CBD) oil, used in a growing range of health and wellness products.
Crop production is set to continue increasing in light of high demand and legal changes.

To view an infographic of this editorial, click here.

Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) is profiting from this development by expanding from hydroponics into investment in hemp production, broadening its cannabis-related portfolio. Other companies are expanding internationally. Tilray, Inc. (NASDAQ: TLRY) is now working with affiliates and subsidiaries in Europe, South America and Australasia. Cannabis grower Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has drawn billions of dollars in investment from the beverages industry as big companies look to get into the market. And Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) has established an extensive network of supply agreements across Canada, which will help to raise sales and awareness of cannabis and related products. New uses are also set to increase demand, thanks to research by companies such as Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON).

Farmers Count the Green from Growing Hemp Harvest

As summer turns to fall, a small number of U.S. farmers are bringing in a new harvest — hemp. For some states, this is the first time that the crop has appeared in more than 50 years because hemp had been outlawed under sweeping anti-cannabis legislation. The last few years have seen significant changes, primarily because the nation’s 2014 Farm Bill funding provisions authorized limited hemp cultivation, and several states began supporting the crop. Now hemp is making a comeback.

This promises to be a good year for hemp. Early indications are that farmers will see a robust crop with a high market value. The growth of the market for CBD oil means that there are plenty of outlets not just for hemp fibers but also for the plant’s other derivatives. And these first successful harvests, accompanied by pending legal change on the federal level, are set to establish hemp as an important crop over the next decade.

The 2018 Hemp Harvest

The past year has seen big growth for hemp. In 2017, the acreage of hemp production expanded by 163 percent through agricultural sites in 19 states. Now the largest hemp harvest of the new era is expected. It’s good news for companies invested in hemp, such as Sugarmade, Inc. (OTC: SGMD).

Like several of the companies involved in the hemp industry, Sugarmade was drawn to the sector by an interest in the wider cannabis market. The company’s main business is the supply of hydroponic equipment used for indoor agriculture. The growth of the legal cannabis market has fueled profits for Sugarmade as growers have valued its supplies. Now the company is diversifying its presence in the thriving sector.

When it comes to driving business, hemp is a beast that is very different from recreational marijuana. While both are forms of cannabis, industrial hemp has very low quantities of tetrahydrocannabinol (THC), the ingredient in cannabis that gets users high. In Kentucky, for example, hemp plants must have no more than 0.3 percent THC. Hemp is also grown differently, using large-scale outdoor cultivation rather than the intensive indoor methods used for other forms of cannabis.

Moving into this part of the market involved a different approach by Sugarmade. Instead of simply relying on its presence as a supplier of tools and equipment for profits, the company has committed a million dollars to investment in Hempistry, Inc. Hempistry’s hemp cultivation is based in Kentucky, the state with the third largest acreage of hemp growth, just behind Oregon but far behind Colorado, which is home to nearly as much hemp as the next three states combined.

While the top states have thousands of acres of hemp under cultivation, others are just starting to get involved, thanks to smaller scale projects. Washington State saw its first 175 acres of hemp planted in 2017, while Minnesota went from 51 acres in 2016 to 1,205 acres in 2017.

Kentucky has seen a particularly good year for hemp. Almost perfect growing conditions over the summer and early fall are setting it up for a bumper harvest. Sugarmade executives, including CEO Jimmy Chan, have visited the Hempistry project to inspect it and found that it lived up to the hype. It is seen as ultra-premium-grade hemp, perfect for extracting one of the biggest products to come from hemp — CBD oil.

CBD — Key to the Hemp Market

Hemp isn’t a new crop, even if its appearance in current markets seems like a novelty. As long ago as the Mayflower pilgrimage, hemp fibers were used in North America to produce rope and canvas for sailing ships. Even in the early 20^th century, just before it became illegal, it was mostly grown for these fibers.

Now, that has changed.

Hemp fiber still has value in producing everything from cloth to construction materials. But the real wealth is in CBD oil. This is why Hempistry has built a crop labeled as ultra-premium and why Sugarmade determined to invest one million in the business.

While CBD doesn’t have the psychoactive effects of THC, it’s still an active ingredient in cannabis that produces a chemical response in users. Research into its effects is in its infancy, thanks to so many years without businesses backing. But studies over the past decade have led to its use in a wide range of health and wellness products. Some of the highest-profile research has focused on its potential use in tackling epilepsy, but CBD oil is turning up in a huge range of products that appear to impact everything from pain management to improving mental processes.

The CBD market is growing enormously in the United States and beyond. The large, healthy harvests coming out of Kentucky should find no shortage of demand for the oil extracted from its plants. Sugarmade’s first foray into CBD has all the signs of success.

Where Next for Hemp?

Based on these results, Sugarmade has already begun plans to significantly expand its hemp operations next year. Hempistry has optioned 23,000 acres for potential hemp cultivation, more than is currently growing in the top five states put together.

Statistics taken from the Hemp Business Journal show that the U.S. hemp industry saw at least $820 million in revenues in 2017. Some experts forecast that number to increase to more than a billion dollars in 2018 and continue to grow at a compound rate of 14 percent per year until 2022. This increase is driven in part by growth in demand and in part by changes to the status of the hemp industry.

Central to this is the new version of the Farm Bill currently being considered by the U.S. Senate. The bill includes clauses with cross-party support for hemp cultivation that would expand the potential for farming. Hemp is currently restricted to trial crops and scientific studies, but under the new bill, it could be grown as a regular crop by farmers across the country.

This legal change will let companies such as Sugarmade support the cultivation of large quantities of hemp to meet the huge demand for CBD oil. And if that demand keeps growing, the industry could take off at an exponential rate.

Reaping the Benefits

This growth isn’t just taking place in America. Demand for CBD oil and other cannabis-related products is expanding around the world, as is the industry meeting that demands. Tilray, Inc. (NASDAQ: TLRY) manufactures products used by thousands of patients, researchers and physicians across the globe, and is building that international reach. In addition to affiliates in Australia, Canada, Germany, New Zealand and Portugal, the company recently acquired Alef Biotechnology SpA in Chile.

One of Canada’s largest cannabis companies, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has drawn jaw-dropping financial backing from beyond the cannabis industry. American beverage company Constellation Brands’ $4 billion investment will allow the two companies to develop CBD-infused drinks, building a leisure market for ingredients derived from hemp. With a corporate giant such as Constellation taking an interest, pressure is likely to grow for further reform in Washington, easing the way for growth in the hemp industry.

Canopy Growth isn’t the only big player in Canada, where the recent legalization of recreational cannabis is set to supercharge the industry. Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is one of the big players and has already established supply agreements that will let it sell products in provinces across the country. Increasing public awareness of cannabis, driven in part by such supply channels, will also increase awareness of related CBD-based products, with a supplemental boost for hemp.

Meanwhile, researchers continue to find new uses for CBD and other cannabinoids. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has recently announced new work with the Technion–Israel Institute of Technology to explore the use of cannabinoids in skin care. Not only are existing markets expanding, but new ones are being created as additional promising uses for cannabis-based products are found.

This year’s bumper hemp crop looks to be just the beginning of a burgeoning industry with an exciting future.

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

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420 with CNW – Michigan Provides Online Tools for Medical Marijuana Patients

The state of Michigan has taken additional steps towards improving access to its medical marijuana program. Patients now have a number of online tools that they can use to register and get certification cards which permit them to access medical marijuana.

The Department of Licensing and Regulatory Affairs in Michigan announced a few days ago that any patient who doesn’t have a caregiver can simply go online and apply for an identification card from the medical marijuana registry.

Such patients can also monitor the status of their online application by logging into a secure account created for them when they launch their application for the identification card.

The state also plans to make it possible for those patients who don’t have a caregiver to use the same online tool when it is time for them to renew their identification card for the medical marijuana program.

Previously, patients were expected to be present (in person) at an authorized office where cards could be applied for or renewed. Experience has shown that the old system was unnecessarily burdensome for particularly those patients who lived alone or whose condition made it hard for them to move from their homes.

It will also be possible for patients change their address information, ask for replacement cards or withdraw from the program. These features are still being added to the online tool.

Doctors have also been given an opportunity to register for a secure online account. The doctors who take up that offer will use that secure account to certify that their patients have been recommended to use medical marijuana. This will reduce the need for patients to get hard copy recommendation letters to use during the registration process for the medical cannabis program.

Michigan residents voted to legalize medical marijuana in 2008. Since then, the state has been tweaking its methods of administering the program so that patients get the care they need in a way that doesn’t risk the confidentiality of those patients or endanger the public.

The online app is the latest addition to the measures intended to deliver efficient services to qualifying patients. A quick scan of the information available at the website of the Licensing and Regulatory Affairs department shows that patients should typically wait for a maximum of five weeks for their online applications to be processed.

One can then call a given number in case they have waited for more than five weeks but haven’t received any feedback from the department.

Marijuana industry players like Phivida Holdings Inc. (CSE: VIDA) OTC: PHVAF) and Plus Products Inc. (CSE: PLUS) definitely applaud the measures being instituted to remove any inconveniences suffered by patients as they try to access medical marijuana.

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420 with CNW – Will Utah’s Compromise Deal on Cannabis Work?

Patients, religious leaders, politicians and representatives from some medical cannabis advocacy groups in Utah recently came together to announce that a compromise had been reached to draft a law which would legalize medical cannabis whether the ballot measure (Proposition 2) succeeded during the midterm elections or not.

This compromise deal seems to have been arrived at after Prop 2 polarized the conservative community and threatened to alienate major sections of the community, such as the Mormon Church.

The compromise deal seeks to allow only six “medical cannabis pharmacies” to operate out of which one would be run by the state while the other five would be privately operated. Prop 2 suggested that there would be a medical cannabis dispensary for every 150,000 residents of the state. This would result in more dispensaries than the compromise deal is allowing.

Secondly, the compromise deal wants to prevent people from growing their own cannabis. Prop 2 had indicated that patients could grow their own cannabis and use it in case they couldn’t access medical cannabis at legal dispensaries.

The compromise deal seems to have attained some degree of success in bringing different parties to a middle point on cannabis. For example, the governor of the state expressed his support for the compromise although he was vehemently opposed to Proposition 2.

However, that compromise deal still has critics from both sides of the cannabis divide. For example, opponents of legalization feel the compromise doesn’t go far enough to quell concerns about the possible dangers that may result when medical use cannabis is legalized.

Similarly, advocates of legalization feel that the compromise deal bears the signature of the Latter Day Saints (LDS) church which seems to have approved the legalization but ensured that there are so many restrictions that access will be limited heavily.

Critics of the church say it played the same tactics over LGBTQ issues when it appeared to consent that they deserved to be treated equally, but at the same time created a loophole which allowed members of the church to refuse to preside over LGBTQ marriages due to religious conflict issues. In other words, the Mormon Church said it recognized the LGBTQ members of the community but it would not wed them. What kind of recognition is that?

The compromise deal will be sent to the elected representatives of the people for debate and modification before it is passed into law. In the meantime, both sides are still campaigning heavily either for or against Prop 2. That ballot measure carries huge implications since the outcome of the poll would influence the final provisions of the law enacted to legalize medical cannabis.

Cannabis industry participants like Net Element (NASDAQ: NETE) and NUGL Inc. (OTC: NUGL) can only pray that any decision made puts patients first instead of addressing the interests of different groups that may contradict the interests of the intended beneficiaries of the medical cannabis law.

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420 with CNW – New York Liquor Stores Offer Solution to Recreational Marijuana Sales

The state of New York is hammering out the details of the law which will legalize recreational cannabis in the jurisdiction. One of the issues that has come up for consideration is how that cannabis will be distributed and sold once legalization takes place.

Liquor stores have come together and proposed that they should be allowed to sell recreational marijuana throughout the state. This group advances several arguments in support of their proposal.

First, they say that liquor stores exist throughout the state. Consequently, fewer resources will be wasted in setting up a new distribution and retail network for recreational cannabis. The public can therefore access the product sooner after legalization.

Secondly, liquor stores are heavily regulated by the state. The regulatory and enforcement arms of the state government will therefore not be stretched once recreational cannabis is added to the products that can be sold in liquor stores.

Thirdly, the group argues that letting liquor stores sell marijuana would help to protect the jobs and revenues accruing from the sale of alcohol. Other states where recreational marijuana is legal have registered a drop in alcohol sales. Consequently, some employees have been let go and a number of liquor stores have also closed.

Allowing the liquor stores to sell recreational cannabis would therefore protect the existing jobs in this sector of the state economy while also bringing in the expected taxes and other revenues from the cannabis industry.

The group of liquor store operators has set up a website to gather support for their suggestion. The public is being urged to access pre-written letters which can be sent to the different legislators who will make the final decision about how recreational marijuana will be sourced, distributed, and sold to the public.

The letters show that the plan by the liquor stores provides a win-win scenario for all concerned. The public benefits by having easy access to facilities that have been in existence in their neighborhoods. Law enforcement wins by simply expanding their effort instead of overseeing an entirely new bureaucracy. The state further benefits by saving the tax dollars which would have gone to setting up and overseeing a new network of cannabis retailers.

Governor Cuomo started the ball rolling on recreational cannabis legalization when he asked the Department of Health to analyze whether or not legalization should be done. The resultant report showed that the drawbacks of legalizing recreational cannabis were fewer than the benefits which the state would register.

The law being drafted also seeks to compel public health insurance plans to cover medical cannabis so that people don’t have to pay out of pocket for such needed treatments. Such progressive policies are exactly what companies like Marijuana Company of America Inc. (OTC: MCOA) and Medical Cannabis Payment Solutions (OTC: REFG) would like to see throughout the country.

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420 with CNW – Three Studies Give Further Proof of Marijuana’s Effect on Opioid Crisis

A trio of scientific studies has provided further proof that legalizing marijuana can reduce the opioid crisis facing America. At first glance, it may appear that legalizing marijuana will increase opioid overdoses. However, the studies conducted gathered data that proves otherwise.

Arthritis Sufferers Who Underwent Reconstructive Surgery Used Fewer Opioids if Cannabis Was Accessible

A new study whose findings appeared in the Journal of Orthopedic Proceedings analyzed the toxicological tests of more than 520 patients. The tests in question were conducted between 2012 and 2017.

The researchers found that patients who used cannabis before undergoing reconstructive surgery to repair joints affected by arthritis increased from just 9 percent to 15 percent during the period being studied. At the same time, the prevalence of opioid use dropped to 17 percent from 24 percent.

There appears to be a correlation between the increase in access to marijuana and a reduction in the use of opioids.

States with Legal Marijuana Have Fewer Opioid Prescriptions

Another group of researchers gathered data on more than 1.3 billion prescriptions of opioids. Those prescriptions were spread over several years from 2011 to 2018. The researchers analyzed that data in order to establish whether there was a connected between marijuana laws and the rate at which opioids are prescribed.

The investigators found that in states where marijuana was fully legal (for recreational and medical purposes) prescriptions for opioids, especially morphine, reduced by 6.9 percent every year.

The study found that in the states where only medical marijuana was legal, morphine prescriptions reduced by 6.1 percent each year.

The researchers concluded that access to cannabis caused the rate at which morphine is prescribed to reduce by a percentage which is statistically significant.

Opioid Abuse Decreased as Cannabis Use Went Up

The federally funded National Survey on Drug Use and Health conducted in 2017 compared the level of opioid misuse among Americans in 2016 and 2017. The researchers found that about 11.4 million Americans abused opioids in 2017 yet the number was higher (11.8 million) the year before.

The same survey found that the number of Americans who used marijuana in 2016 was 24 million while those who used cannabis the next year increased to 26 million. This increase in cannabis use could possibly explain why opioid abuse reduced in the years under scrutiny.

As you can see, studies conducted by private entities and those funded by states or the federal government all seem to point to the strong possibility of marijuana having the key to the opioid epidemic the country is facing. Such findings are good news to industry players like Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP).

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Cannabis Ignores Wider Stock Market, Follows Its Own Path

CannabisNewsWire Editorial Coverage: Following a tumultuous month, cannabis continues to carve its own path rather than following the lead of other stocks.

As the stock market plummeted earlier this month, cannabis companies stayed strong, buoyed up by legislative changes in Canada.
The cannabis market appears set for continuing growth as it expands into expected sales worth billions of dollars across North America.
While it still faces regulatory challenges in some locations, this market sector is preparing for corporate big players to move in.

Companies with varied interests are moving into the cannabis sector, such as lifestyle business Youngevity International, Inc. (NASDAQ: YGYI) (YGYI Profile). While the stocks of some cannabis players such as Tilray, Inc. (NASDAQ: TLRY) appear overvalued, this reflects problems with valuation tools more than the stocks themselves. The sector has developed its own heavy hitters, such as Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), whose millions of square feet of growing space are now leading to sales into the United States as well as Canada. Some companies are focused only on medical products, such as GW Pharmaceuticals Plc (NASDAQ: GWPH) with its cannabis-based prescription medicines. But it’s the recreational side of the cannabis space that has drawn in Constellation Brands Inc. (NYSE: STZ), a huge beverage maker that has invested $4 billion in a cannabis cultivator.

To view an infographic of this editorial, click here.

Cannabis Stocks Versus the Market

It’s been an interesting month for cannabis stocks.

Three weeks ago, cannabis looked like a particularly strong bet. As the wider stock market fell, cannabis stayed strong. Some cannabis stocks even saw significant rises in value amid promising developments from those companies. Legalization in Canada undoubtedly played a part in their success, with the run-up to Oct. 17 seeing predictions of massive profits for cannabis companies. But some commentators argued that it was part of a bigger trend in which cannabis stocks are among those that don’t follow other market indicators.

Then came the week following legalization and a notable fall in the value of cannabis shares. The hype around these companies was punctured by market shifts. Had they fallen in line with the rest of the market? Was the reality of Canadian legalization catching up with the imagined utopia? Or was this simply a downturn for a sector trending separately from competitors?

More to the Market

To understand shifts in cannabis shares, one needs to take a look at the state of the industry.

The cannabis industry isn’t self-contained. The spread of legalization and the emergence of derivative products has created a diverse sector combining exciting startups with older companies dipping their toes in a novel market. Alongside the pure-play cannabis brands, there are pharmaceutical businesses and even lifestyle companies such as Youngevity International, Inc. (NASDAQ: YGYI).

These companies are selling three distinct products.

First, there’s medical cannabis. Supplied on prescription to deal with pain and nausea, cannabis’ medical properties remain hotly debated but that hasn’t stopped the state-legalized use of it from spreading across more than half of the United States.

In material terms, recreational cannabis has exactly the same chemical makeup as some of the medicinal products. What’s primarily different is the way that it’s marketed, sold and used. This is cannabis used for fun and relaxation. It’s now available by law in nine U.S. states and Canada.

Then there are the derivative products. Most, including those sold by Youngevity, use cannabidiol (CBD). Cannabidiol is an active ingredient that doesn’t get users high. CBD can be extracted from cannabis, both from the marijuana plant as well as its tetrahydrocannabinol (THC)-free variety known as industrial hemp. Research into CBD is still in its infancy, but it is already used in a wide range of health and wellness products.

Over the past 20 years, cannabis has grown from a black market drug to a major public market product in North America, with growing influence in the rest of the world. From the first stirrings of a medical market to the current state of affairs in which a G8 country has a recreational market and the White House is hinting at U.S. reforms, it’s been a fast ride. As a result, there’s still a lot of uncertainty about cannabis’ destiny.

Where Now for Cannabis Shares?

The idea that weed doesn’t correlate to other stocks seems to have some truth. This was shown by the events of early to mid-October, when legal reform and individual brand announcements set it on an opposite trend from other shares. While the Dow has headed towards its worst month since May 2010, cannabis stocks have carved their own path. It looked like good news for companies such as Youngevity.

For now, cannabis is offering a real challenge for traders. Cannabis stocks look overvalued based on traditional valuation metrics such as price-to-book ratio, price-to-earnings ratio or price-to-sales ratio. But these metrics are based on past results, not future valuations. Given ongoing changes, the future performance of cannabis companies will be nothing like the past. Whole new customer bases are opening up, bringing staggering potential for growth.

In the next month, there will be votes on whether to allow recreational cannabis in North Dakota and Michigan, at least one of which is likely to pass. North of the border, Canada is planning to legalize cannabis-infused edibles next year. That means a whole new sector of profit opportunities.

Then there’s the impending arrival of big players in the market. Big pharmaceutical and consumables companies haven’t paid much attention to cannabis yet, as its value is relatively low compared with their existing revenues. But with the market expanding, both groups may get involved — beverage and tobacco companies pursuing a natural spin-off from their existing businesses and big pharma in pursuit of new medicines. Those are moves that will bring disruption unrelated to wider markets.

As a lifestyle brand selling both coffee and cannabis derivatives, Youngevity has already placed itself to enter this cross-over market. And with its new HempFX™ line now available online, it’s moving fast to profit from changes in the cannabis market.

Riding High

Alongside medical and recreational marijuana, CBD is seeing huge growth. Youngevity CEO Steve Wallach has spoken about the huge potential of CBD products in direct sales channels, not just in America but around the world. His company is riding high on this trend with the announcement of new CBD products.

Youngevity’s first offering in the CB market is the HempFX™ product line, a trio of three different hemp-derived cannabidiol oil products that contain organically grown products in proprietary formulas designed for a variety of everyday use.

The products include Soothe™, a blend of botanicals designed to relieve muscles by calming aches and pains; Uplift™, which combines CBD with St. John’s Wort to improve cognitive performance and mood; and Relax™, which combines CBD with a variety of herbs and melatonin to bring relaxation and a better night’s sleep.

Cannabis’ Long-Term Prospects

The signs remain good for cannabis companies. One study predicts that sales in Canada could reach $7.1 billion in 2019, $4.3 billion of that coming from the recreational market.

The boss of cannabis company Tilray, Inc. (NASDAQ: TLRY) believes that the market in the United States will soon be worth $150 billion. A leading player in the medical cannabis market, Tilray has established agreements with Canadian partners that will let it profit from changes in that country, changes that could radically improve its earnings.

Other companies are also making significant movements in the market. Drinks giant Constellation Brands, Inc. (NYSE: STZ) has invested $4 billion in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), showing that it is serious about moving into the cannabis market. Canopy Growth is one of Canada’s largest cannabis companies, with 5.6 million square feet of growing space. Like Tilray, it’s looking at the wider North American picture and carried out a legal transfer of cannabis to the United States, the first such transfer with a Drug Enforcement Administration (DEA)-issued permit.

Canopy Growth’s strong performance has drawn the attention of companies outside the cannabis sector, leading to the headline-making investment from Constellation Brands earlier this year. Many commentators have talked about this as a chance for Constellation to produce cannabis-infused beverages, a largely untapped market likely to take off once new rules come in Canada next year. But it may represent a broader play, as alcohol and tobacco companies aim to take control of cannabis and fill the gaps as sales of their existing lines fall.

Some companies are focused only on the medical market. GW Pharmaceuticals Plc (NASDAQ: GWPH) has created the first Food and Drug Administration (FDA)-approved cannabis-based prescription medicine as part of its substantial research and design program. Even as the recreational market and CBD steal its thunder, the medical market remains strong.

Clearly, there are still big uncertainties for the cannabis market. Questions about regulation and how far legalization will spread hang over everybody’s heads. Yet companies are thriving despite this, showing the rewards that so often come with risk and innovation.

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

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420 with CNW – Latest Gallup Poll Shows that More Americans Want Marijuana Legalized

It has been repeated time and again how polarized Americans are in recent times, but there is one thing upon there seems to be agreement among the young and old, Democrats and Republicans, that is, the issue of cannabis legalization.

A Gallup poll that was conducted recently reveals that two out of every three voters you count thinks that marijuana prohibition should come to an end.

The most significant groups to have registered a rise in support for decriminalization are the older Americans and Republicans. These groups were the least likely to favor legalization in past polls.

Support for legalization has reached record high this year ever since Gallup started conducting these polls in 1969. In that maiden year of polling, Gallup found that just 12 percent of the adults who participated in the poll expressed support for marijuana legalization. This year’s 66 percent support for legalization marks a huge shift in public perception about this plant which has for long been shrouded in controversy and polarization.

The poll also found that five out of ten Republicans say marijuana should be legalized. This view is in sharp contrast to the opinion of the top brass of the party, with the Attorney General vehemently opposed to any degree of cannabis legalization and the party didn’t even mention marijuana during its campaigns in 2016.

Democrats showed the highest support for legalization as nearly eight out of ten voters expressed a desire to see marijuana prohibition end. Similar support was found among independents as seven out of ten were in favor of the legalization of marijuana.

Support for marijuana legalization is massive among younger Americans (those who are 34 years or younger). Eight out of ten in this age group support decriminalization.

The variations by region are also melting away on the matter of cannabis decriminalization. Previously, the East had significantly lower support for marijuana legalization when compared to the West. The recent poll showed that the support now varies by just a single percentage point, with all regions hovering at about 66 percent in support.

This clear support recorded by pollsters is given credence when one considers the different states where cannabis legalization has been presented to voters. Ballot measures have succeeded in all states where the matter was up for a vote. This is a clear signal that legislators at both state and federal level should revise their position and make decisions that are in line with the wishes of the majority in the nation.

One can only imagine that cannabis industry players like Global Payout, Inc. (OTC: GOHE) and Golden Developing Solutions, Inc. (OTC: DVLP) must be pleased that the public is rallying behind this plant that has so much to offer.

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