420 with CNW — Georgia Lawmakers Weigh Conflicting Proposals on Marijuana and Hemp Reforms

Georgia lawmakers are reviewing the future of hemp and marijuana products in the state, and opinions are sharply divided. During a recent legislative study committee meeting, people from both sides of the debate shared their experiences and concerns, laying the groundwork for possible policy updates in the state. 

On one side, critics pointed to mental health risks, especially for young users. Several parents told lawmakers that their children developed schizophrenia after using high-potency cannabis products bought over the counter. One mother, who asked to remain anonymous, said her son had a discount code he used frequently at a local store. “This is the biggest regulatory oversight I’ve ever seen,” she said. 

Psychiatrist Dr. Colin Murphy added that rising potency levels are contributing to cannabis-induced psychosis, particularly among teens. Others agreed, saying the availability of high-strength cannabis products was harming vulnerable groups. 

Medical cannabis advocates, on the other hand, shared powerful personal stories about how marijuana had changed their lives. Georgia Medical Cannabis Society co-founder Yolanda Bennet, who has a hormonal condition, credited marijuana with helping her manage pain without needing to rely on addictive opioids. 

The hearing comes after the state legislature failed to reach an agreement earlier this year on proposals to increase medical cannabis potency and to prohibit hemp-infused drinks. Now, the study committee is seeking additional input before deciding how to proceed. 

Much of the confusion stems from overlapping federal and state rules. While marijuana remains illegal at the federal level, Georgia allows limited medical use with a doctor’s approval. Meanwhile, hemp became legal under the 2018 Farm Bill, allowing products with THC content below 0.3% by dry weight. That change opened the door to a flood of new products like hemp-infused drinks, edibles, and oils. 

The market has grown fast, and not all of it is under proper oversight. Synthetic cannabis compounds are being sold without much regulation. Last year, Georgia’s agriculture department started taking enforcement more seriously, but the landscape remains difficult to monitor. 

The department’s policy director, Katherine Russell, explained that innovation is moving faster than the laws. She cited a Florida-based company creating CBD from orange peels, which could sidestep existing laws entirely. “You can write laws to regulate marijuana,” she said, “but if someone finds a different way to make CBD, those laws might not apply.” 

The committee’s next meeting is scheduled for August 21. 

The debates on how to regulate hemp products and marijuana are happening in many states around the country, and major industry firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) are keenly following these discussions wherever they are taking place. 

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Calls to Regulate THC in Marijuana Products Grow in Canada

Emergency rooms across Canada are seeing a significant increase in visits from marijuana users suffering from repeated, severe vomiting—a condition called cannabis hyperemesis syndrome (CHS). According to a recent study, cases of CHS have grown thirteenfold over an eight-year period, making up over 8,000 of nearly 13,000 marijuana-related ER visits during that time. 

Experts believe the spike is largely due to rising levels of THC, the compound in marijuana responsible for the high. They are urging for tighter regulations, clearer labeling, and more scientific research. 

THC is just one of over a hundred cannabinoids found in marijuana, with delta-9-THC being the most recognized and studied. Canada currently restricts delta-9-THC in edibles to 10mg per piece and 1,000mg per package for topicals and extracts. However, dried marijuana doesn’t have a cap, though producers must list THC content on the label. 

Other variants like delta-8-THC aren’t held to the same standards. Some manufacturers use these less-regulated compounds to boost potency while skirting delta-9 limits. Health Canada warned against this in 2023, although the guidance carries no legal weight. 

THC levels in today’s cannabis are much higher than in previous decades. While products in the 1960s had around 4% THC, many now average 25%, with some reaching up to 90%. This rise in potency is linked to a range of health problems, especially in younger users whose brains are still developing. High THC exposure in adolescents may interfere with brain development and increase the risk of long-term mental health issues. 

Meanwhile, the huge variety of marijuana products available makes it harder for users to gauge how much they’re consuming, especially with high-potency options dominating the market. 

Ruth Ross, a University of Toronto professor, believes a standardized THC unit would help. For example, if one unit equaled one milligram, consumers could more easily understand their intake. She also stresses the need for more research reflecting the potency of today’s cannabis. 

Quebec is currently the only Canadian province with strict THC caps and strict marketing controls. The province bans products that look like candy and operates a government-run retail system focused on safety and education. All profits are reinvested in research and prevention. 

Ontario researchers are now studying whether Quebec’s policies are reducing cannabis-related harms. Dr. Daniel Myran, a physician and researcher at the University of Ottawa, supports adopting similar national limits on THC, along with better labeling and pricing structures that discourage ultra-potent products. 

Leading marijuana firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) could provide valuable input when the country decides to receive feedback on how best to address the possible harms arising from the increasingly potent marijuana products available in the country. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Poll Finds Most Texas Voters Oppose Banning Hemp Products

A new poll shows that most Texas voters are not in favor of a full ban on hemp-based THC products. The survey revealed that 53% of voters were against the ban that state lawmakers had passed under SB 3. In contrast, just 31% said they were in favor of it. 

The Republican base appeared split on the issue, with 46% in favor of banning the products, while 39% were against it. These opinions were collected in early June, shortly after the legislative session wrapped up but before Governor Greg Abbott vetoed the bill. 

The veto immediately sparked backlash from Lieutenant Governor Dan Patrick, who had strongly pushed for the ban throughout the legislative process. Patrick, who leads the Texas Senate, also rejected Abbott’s idea to regulate THC products more strictly instead of banning them outright. 

With lawmakers now gearing up for what may be a tense extra session, the poll highlighted how divided the public remains on this topic. 

Senate Bill 3 aimed to outlaw consumable hemp products containing THC. Since hemp sales were legalized in Texas back in 2019, THC-infused products have become widely available in smoke shops and convenience stores. 

After the veto, Patrick expressed strong frustration with Abbott, marking a rare public disagreement between two of the state’s highest-ranking leaders who typically see eye to eye. “This conflict was avoidable,” Patrick said. “Where has he been all this time? He shows up after midnight with reasons we just don’t agree with.” 

Patrick warned that a recent court ruling in Arkansas could lead to consequences in Texas. He claimed that as many as 8,000 vape and smoke shops might be forced to close if similar legal decisions are made in the state. 

Abbott referenced the Arkansas lawsuit in his veto announcement, saying the Texas bill likely wouldn’t hold up in court and would cause years of legal delays. He wrote on social media that, unlike Arkansas’s version, Texas’s proposal had legal flaws. 

“Even with a stronger law in Arkansas, it sat unenforced for two years and is still being fought in court,” Abbott said. “We need action now to protect our children. That effort starts next month.” While Abbott has defended his decision online, he has not directly responded to Patrick’s public criticisms. 

The recent poll also showed a shift in how Republican voters feel about cannabis laws. Ten years ago, 31% of GOP voters in Texas said cannabis should stay illegal. That number is now at 21%. At the same time, support among Republicans for legalizing small amounts of cannabis rose from 23% in 2015 to 31% as of April. 

As public attitudes shift in Texas and other holdout states still having prohibitionist marijuana policies, the industry and leading firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be watching and hoping that a time will come when adults in those jurisdictions who wish to consume marijuana will have legal sources for the substance. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Could Hemp-Sourced THC Finally Push Congress to Act?

Congress is finally moving toward addressing laws tied to the marijuana industry after years of inaction. However, instead of expanding support—such as allowing marijuana businesses access to banking services, easing tax burdens, or opening up interstate trade—lawmakers are shifting their focus to restricting products made from hemp-derived THC.

Industry experts and lobbyists say a recent GOP-backed budget plan, introduced in the House and passed by a subcommittee, aims to outlaw products made with hemp-derived THC at the federal level. Even if the proposal doesn’t make it through Congress, it signals a turning point. Many in the industry now believe the relatively unregulated days of online sales and storefronts may be nearing an end.

According to Michael Bronstein, head of the American Trade Association for Cannabis and Hemp, it’s no longer a question of whether Congress will act, but when and how extensively.

The controversy picked up speed when Representative Andy Harris proposed a redefinition of “hemp” that would close what many view as a legal gap in the 2018 Farm Bill. Harris argues that the law has allowed for the unchecked sale of intoxicating hemp products—like delta-8 THC and THCA flower—via gas stations and websites, without oversight.

His amendment, which narrowly passed its first vote, seeks to ban high-THCA hemp flower and remove lab-created cannabinoids like delta-10 THC and THCP from the legal definition of hemp. If adopted, the change could force many hemp producers and sellers to shut down or drastically alter their businesses. Still, who would enforce such a ban and how effective it would be remains unclear.

Despite this push, Harris’ proposal faces significant challenges. Democrats are unlikely to support a bill that also includes heavy cuts to social programs. And given the narrow GOP majority in the House due to recent retirements, a bill that loses just a few Republican votes could be dead on arrival.

Moreover, states with large hemp farming industries like North Carolina and Kentucky may resist changes that could hurt their agricultural economies. Many lawmakers seem unwilling to upset the farmers and small businesses that invested heavily under the original Farm Bill.

Christopher Lackner, who leads the Hemp Beverage Alliance, said there’s confidence Congress won’t abandon the industry. He pointed out that President Trump, who signed the original Farm Bill, is still in office, which gives advocates hope.

Interestingly, Harris’ proposal has sparked unity among competing marijuana sectors. Instead of dividing hemp and marijuana stakeholders, it has brought them together in opposition. Liquor distributors, too, are backing hemp products to make up for falling alcohol sales.

Advocacy groups are now using this moment to better inform legislators about regulated hemp and the success of sensible rules in certain states. Meanwhile, many on Capitol Hill agree that the situation created by the 2018 bill needs fixing—but they’re wary of swinging the pendulum too far in the other direction.

Marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) from inside and outside the U.S. will be watching any decisions that federal lawmakers make on the hemp derivatives since this could have significant impacts upon the hemp and marijuana industries.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — London Mayor Supports Report Recommending Marijuana Law Reform

A recent report backed by London Mayor Sir Sadiq Khan has called for the decriminalization of small amounts of marijuana intended for personal use.

The London Drugs Commission report put forward 42 suggestions for reform. One of its key proposals is to remove natural marijuana from the Misuse of Drugs Act and instead manage it under a different legal framework, the Psychoactive Substances Act.

Khan has voiced strong support for the findings, stating that the current approach is unjustifiable. According to him, the commission has laid out a solid case, rooted in evidence, to reconsider how marijuana possession is treated under the law.

The report touches on various areas, including education, public health, and law enforcement. It criticizes the fact that marijuana possession is still treated as a Class B offense, placing it in the same category as substances like ketamine. While prison sentences for simple possession are rare, the report notes that even the threat of incarceration can have serious consequences for individuals, especially when the offense involves a small, personal amount.

One major concern raised is the use of stop-and-search tactics by police, which the report claims are often applied in a racially biased way when it comes to marijuana. The authors recommend removing marijuana possession as a reason to stop someone, arguing that this would lead to fairer policing.

They also point out that current penalties can be excessive even when the amount of marijuana found exceeds what is typically considered personal use. The report suggests that these legal responses are disproportionate compared to the actual risks cannabis presents.

The report also calls for improvements in several areas: better public health services to deal with marijuana-related problems, more reliable and earlier education about marijuana in schools, fairer access to medical marijuana—including reducing costs—and ongoing review of international developments in marijuana legislation, with a full reassessment in five years.

The goal, according to the commission, is to make enforcement more just, especially for those using marijuana for health reasons without a prescription. Shifting regulation to the PSA would reduce unnecessary criminalization and lower racial bias in law enforcement.

David Raynes, from the National Prevention of Drugs Alliance, opposes the report’s suggestions, arguing that loosening marijuana laws sends the wrong message about its dangers. He criticized the report as a political move by the mayor, who lacks formal power in national drug policy.

However, the views of the mayor on the report can be construed as calling for further discussion on how drug policies have been designed and enforced in the past and what improvements are needed going forward. These discussions could be of interest to the wider marijuana industry around the world, including companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that have seen these same debates in other jurisdictions.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Florida Advocacy Group Joins Legal Challenge to State’s Initiatives Law

Efforts to legalize recreational cannabis through a constitutional amendment in Florida are facing a new hurdle: a recently passed state law that adds major roadblocks to the citizen initiative process. The group leading the marijuana amendment push, Smart & Safe Florida, has joined a federal lawsuit challenging the new law, arguing that it undermines Floridians’ fundamental right to propose and vote on constitutional changes.

House Bill 1205, passed by the GOP-led legislature and signed into law by Governor Ron DeSantis, drastically alters how citizens can get amendments onto the ballot. The law introduces more red tape for signature collection, creates new criminal penalties, tightens deadlines, and adds other restrictions that make the process much more difficult.

The changes come in the wake of high-profile ballot initiatives in 2024, including ones advocating for recreational marijuana and abortion rights. Both efforts failed to reach the required 60% voter approval. In response, DeSantis and other state leaders moved quickly to tighten the rules. Critics say these changes are designed to shut down citizen-led proposals before they even get started.

Smart & Safe Florida, which is already working to qualify a new cannabis legalization amendment for the 2026 ballot, says the law unfairly impacts their campaign midstream. They currently have more than 218,000 validated signatures—just shy of the 220,000 needed to trigger a state review of their proposal. Their lawyers argue the law unfairly shifts the rules after campaigns are already underway, leaving little time to adapt.

A federal judge recently approved Smart & Safe Florida’s request to join an existing lawsuit filed by Florida Decides Healthcare, which is fighting to expand Medicaid access through a ballot measure. In court filings, Smart & Safe Florida’s legal team slammed the new rules as unconstitutional, saying they violate free speech rights and prevent grassroots participation.

One of the most contested provisions makes it a felony for unregistered individuals to hold more than 25 petitions and limits who can collect signatures. This has reportedly scared away petition gatherers, many of whom are now leaving the state due to the potential legal risks. The law also slashes the time allowed to submit completed petitions from 30 days to just 10, a change critics say disrupts quality control and leads to more rejected forms.

Another section of the law prohibits a group from backing more than one amendment, though it’s unclear whether that means at one time or permanently. Smart & Safe Florida is also pursuing a separate initiative to let medical cannabis patients grow their own plants. The group says the vague restriction is an unconstitutional limit on political speech. The groups are asking a federal judge to declare the new law invalid and to prevent state and local officials from enforcing it.

The marijuana industry around the North American region, including firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), is likely to raise concerns about the moves in Florida geared at making it harder for grassroots reform initiatives to make their way onto the state ballot.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — New York’s Social Equity Program Grapples with Predatory Investors

In 2022, a couple, Kim Stetz and her partner Marq Hayes submitted an application for a Conditional Adult-Use Recreational Dispensary (CAURD) license. Their goal was to open an adult-use marijuana store called Brown Budda in New York.

They were among over 900 applicants hoping to secure a social equity CAURD permit, a surprisingly low number given the state’s history of cannabis-related arrests.

Out of all the applicants, only 32 individuals were initially selected for provisional approval. Fast forward two and a half years and Brown Budda is fully licensed and had even launched delivery operations. However, the municipality they are operating in, Southampton, unexpectedly announced that a special-use license is required for delivery services.

According to Stetz, this demand is inaccurate. Despite disagreeing, they’ve decided to comply with the Town Council’s request and have paused their operations. Meanwhile, the business is sitting on a world-class location with a 15-year lease, yet facing opposition simply because the new Town Council isn’t thrilled with the choices their predecessors made.

On the financial front, the Brown Budda founders have faced many questionable offers. Wealthy investors frequently approach them, offering funding but demanding total ownership rather than fair loan terms or reasonable equity stakes.

Potential financiers are asking for half or more of the business once their conditional license transitions to a general license in 2028, or if they ever decide to sell. The couple has already spent over $50,000 on legal and consulting fees just to maintain full ownership. They have decided to hold out for a fair partnership or, ideally, find an affordable loan—an option that is slowly becoming available for marijuana enterprises.

Throughout this struggle, Stetz has noticed that investors appear far more focused on their personal profits than on supporting the individuals who have built the business from the ground up. This situation has made them question whether the social equity goals that New York intended with its cannabis rollout are being honored.

Thankfully, the Office of Cannabis Management (OCM) recently introduced the Trade Practices Bureau (TPB) to crack down on shady practices like predatory lending and fraudulent deals that could crush small cannabis businesses. Their mission is to protect the spirit of social equity and make sure big money doesn’t steamroll the entrepreneurs who were meant to benefit.

Real estate and funding challenges have put CAURD license holders in tough spots, often forcing them into unfair deals. Until things truly change, cannabis entrepreneurs like Brown Budda are left fielding shady offers, cannabis-style.

For those entering the cannabis space, Stetz encourages deep reflection on personal motives, advising newcomers to prioritize community and fairness over pure profit. Her advice is simple: listen to license holders and offer them genuinely fair deals based on their needs.

Established marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be hoping that any loopholes allowing predatory investors to infiltrate the social equity program in New York State are plugged so that those who are earmarked as beneficiaries of that program do benefit from it.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Study Suggests Patients Have No Problem with Doctors Using Marijuana Off-Duty

A recent survey published in the Hand Surgery Global Online Journal explored how patients feel about their doctors using substances like marijuana, alcohol, and nicotine when off duty. The findings showed that more people were okay with their physician using cannabis recreationally than not, and even more were comfortable if it was for medical reasons.

Despite this, the findings may help guide future research and policy, especially as laws and attitudes continue to shift in different regions. These changing attitudes to cannabis use are in part due to legalization policies that have allowed licensed firms like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) and others across the…

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About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Study Suggests Patients Have No Problem with Doctors Using Marijuana Off-Duty

A recent survey published in the Hand Surgery Global Online Journal explored how patients feel about their doctors using substances like marijuana, alcohol, and nicotine when off duty. The findings showed that more people were okay with their physician using cannabis recreationally than not, and even more were comfortable if it was for medical reasons.

The survey involved 388 patients at four Pennsylvania orthopedic clinics, where only medical marijuana is legal. Most participants were white, around 55 years old on average, and nearly two-thirds said they had never used marijuana. Eleven percent were frequent users.

Participants responded to whether they were comfortable with their doctor using certain substances outside work hours. Alcohol had the highest acceptance rate, with 64% expressing comfort and only 13% expressing discomfort. Nicotine use followed, with 57% okay with it and 16% not.

When it came to cannabis, patients were more accepting of medical use (56%) than recreational (45%). However, 25% were against recreational use by doctors, compared to 16% for medical use, 16% for nicotine, and 13% for alcohol. Around 19% strongly opposed recreational cannabis use, the highest among all substances.

There was also a noticeable uncertainty about cannabis. About 14% weren’t sure how they felt about prescribed cannabis, while over 16.2% were uncertain about recreational use.

Interestingly, factors like the patients’ education level or personal marijuana use didn’t seem to impact their opinions on whether doctors should use cannabis when not working.

The survey also included questions about CBD and cannabis as part of treatment plans. Just over half (53%) were open to their doctor talking about marijuana as a treatment option, while 40% said they’d be willing to consider using it for medical reasons. For CBD, 55% were open to discussing its use. Still, about 20% of people were unsure about both substances being part of their care.

Researchers noted the wide range of opinions, saying the results reflect ongoing debates around cannabis and its role in healthcare. They pointed out that even with CBD, which doesn’t have psychoactive effects, many patients remained undecided.

The study acknowledged its limitations, such as its focus on a rural, mostly homogeneous group in one state. It also recognized that Pennsylvania’s current cannabis laws could influence how comfortable people are talking about cannabis use.

Despite this, the findings may help guide future research and policy, especially as laws and attitudes continue to shift in different regions. These changing attitudes to cannabis use are in part due to legalization policies that have allowed licensed firms like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) and others across the region to serve customers with tested and regulated products.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The 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. 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 — Report Indicates California Registered Significant Marijuana Production Increase

California’s legal marijuana production rose by 11.8% in 2024, reaching 1.4 million pounds, according to a newly released report by the state’s Department of Cannabis Control (DCC).

Despite this growth, the illegal cannabis trade remains dominant, with unlicensed production estimated at 11.4 million pounds. Although its exact destinations remain unclear, a significant portion of this illicit marijuana finds its way outside California.

The report highlights a significant gap between legal production and total marijuana consumption within California, which stands at 3.8 million pounds annually. Illegal sales within the state nearly double those of licensed retailers, indicating that while the legal industry has room for growth, major policy changes are necessary to shift consumer preferences away from unauthorized sellers.

DCC director Nicole Elliott acknowledged the progress made in stabilizing California’s legal market. She emphasized that expanding access, lowering costs, and tightening enforcement efforts are key strategies to create a more sustainable and regulated industry.

The report, prepared by ERA Economics, a California-based research firm specializing in water and agriculture economics, sheds light on ongoing challenges in the state’s cannabis sector. Despite California maintaining its position as the largest legal marijuana market in the U.S., signs of industry struggles persist.

The number of surrendered or inactive business permits has surpassed active licenses, raising concerns about the sector’s long-term viability.

Encouraging trends include a nearly 5% rise in wholesale cannabis prices, a 7.5% increase in the industry’s total value, and the continued growth of legal production. However, the overall market still faces difficulties, with persistently low prices and challenging business conditions. The situation may worsen if a proposed increase in California’s excise tax—potentially rising from 15% to 19%—takes effect by mid-year.

Although the legal cannabis market’s total production value rebounded to $1 billion last year, it remains below the $1.2 billion peak seen in 2021. By contrast, the estimated wholesale value of illegal operations is significantly higher, reaching $7.9 billion. Meanwhile, the number of state-issued retail licenses rose, yet many businesses have exited local markets. For instance, licensed retailers in Alameda County dropped from 157 in 2022 to 100 in 2024.

Statewide cannabis sales declined by 4% in 2023, with several counties seeing notable drops. Los Angeles County’s sales fell from $1.5 billion to $1.3 billion, while Alameda County dropped from $296.95 million to $263.11 million. Orange County, however, remained stable at approximately $279 million.

The report suggests that supply restrictions, including Governor Gavin Newsom’s ban on hemp products, could help stabilize prices for the remaining licensed operators.

The general marijuana industry, including enterprises like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), hopes that California and other states with legal marijuana programs find effective ways to deal with the black market so that licensed firms can have a chance to thrive and consumers can be protected from the risks associated with unregulated products.

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