420 with CNW — Washington State Marijuana Industry Readies for Change as Feds Mull Reclassification

Cannabis industry leaders in Washington State are contemplating the implications of reclassification for researchers and local customers. President Joe Biden disclosed in May that the U.S. Department of Justice (DoJ) was considering a substantial change to the classification of cannabis. The U.S. Drug Enforcement Administration (DEA) currently classifies marijuana as a schedule I substance, classing it with methamphetamine and heroin. This classification suggests that there is little to no medicinal benefit to marijuana.

The Biden administration’s proposal suggests moving marijuana to a less severe schedule 3 status, indicating a lower potential for abuse or addiction.

Dr. Susan Ferguson, director of the University of Washington’s Addictions, Drug and Alcohol Institute, noted that the change cannot come fast enough. Ferguson and her team have faced challenges due to what they view as outdated federal cannabis regulations. Currently, Ferguson’s lab is studying the effects of marijuana on mice to explore nonaddictive treatment options, which could potentially lead to breakthroughs in conditions such as epilepsy. Unfortunately, the quality and quantity of cannabis available for research is quite low due to the federal scheduling of marijuana.

On the other hand, critics highlight the risks of addiction and the increasing prevalence of Marijuana Use Disorder, particularly among teenagers. Ferguson acknowledges these concerns but argues that research is essential for achieving medical advancements.

While many in the industry support relaxed federal restrictions, some worry about the consequences. Marijuana store owners, for instance, could benefit from being able to make tax deductions under more lenient federal rules, but some fear that large corporations will eventually dominate the market, pushing out smaller retailers.

Ryan Kunkel, an early pioneer in Washington’s cannabis retail business, has already seen these challenges firsthand. At the height of his career, Kunkel’s company, Have a Heart, held 22 licenses across six states. Now, he’s exiting the business, having sold many of his stores. Today, he only operates a few locations in the Seattle area. “In due course, marijuana will be offered for sale in grocery stores and other establishments alongside tobacco and alcohol,” said Kunkel.

Despite these concerns, Kunkel believes that reclassifying marijuana at the federal level could lead to lower prices for users.

An unprecedented 43,000 remarks were made in the public comment period about the DEA’s rescheduling proposal. The comment window closed on July 22, 2024, but there is still no definitive timeline for the DEA’s final ruling. An administrative hearing is scheduled for Dec. 2, 2024, which may delay any conclusive action until 2025.

This ongoing rescheduling process isn’t only being awaited by companies in Washington State. Even entities in other jurisdictions, such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), are also waiting for the final rule so that they can ascertain how their operations and plans could be impacted.

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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 — New Study Reports Patients Say Marijuana More Helpful for Musculoskeletal Pain Than Conventional Medications

A recent study highlights that more than 20% of patients visiting orthopedic surgeons for chronic musculoskeletal (MSK) pain have turned to marijuana for relief. Among these individuals, nearly two-thirds found marijuana to be somewhat effective, and more than 90% reported at least slight effectiveness.

The study indicates that 57% of patients considered cannabis more effective than other pain medications, with 40% reducing their use of other analgesics since starting cannabis. However, only 26% had cannabis recommended by a physician for their MSK pain.

The most frequently used cannabinoid among the patients was CBD, with 39% favoring it. Another 20% preferred a mix of various cannabinoids, while 23% were unsure about the composition of their marijuana. Interestingly, among nonusers, about 65% expressed interest in trying cannabis for pain management but faced obstacles such as lack of access, knowledge and evidence.

The study, featured in the “Cannabis Research Journal,” did not aim to definitively prove the effectiveness of cannabis in managing MSK pain. Instead, it focused on usage patterns, self-reported effectiveness and barriers to use among nonusers. The cohort consisted of 629 adult patients (18 years of age and older) with chronic MSK pain who visited Toronto Western Hospital for the first time to see an orthopedic surgeon.

According to the report, 72% of those who had previously used marijuana as a pain reliever still did so as part of their treatment plan. The preferred methods of consumption were oils (57%), smoking (36%) and vaporizing (32%). Common side effects reported were dry mouth (43%), lack of motivation (15%) and fatigue (23%), while 39% experienced no side effects. Additionally, many users found cannabis effective for other symptoms, such as headaches (18%), sleep disturbances (44%) and anxiety (26%), although 43% reported no relief for these symptoms.

Patients obtained the products from various sources, including compassion clubs or dispensaries (43%), licensed providers (34%), and relatives and friends (33%). Despite the relief reported, the study found that users often experienced more pain and a broader range of other health issues. However, the researchers did not attribute these conditions to marijuana use, suggesting that those with more severe conditions might seek marijuana as an alternative or additional relief.

In comparison to nonusers, the study found that marijuana users frequently had more comorbid conditions, such as greater rates of depression, more painful body parts and more frequent trips to pain specialists. This implies that the use of cannabis may be a reaction to more intense pain and discontentment with conventional therapies. Additionally, those who used cannabis also frequently took a broader variety of drugs, including opioids, muscle relaxants and antidepressants. This could mean that people looked to cannabis as a backup therapy when other therapies weren’t working.

Chronic pain syndrome was found to be one of the most reliable indicators of cannabis usage, suggesting that individuals with chronic MSK pain frequently feel unsatisfied with traditional therapies and turn to alternative pain-management techniques. But the largest predictor, which more than tenfold increased the risk of utilizing cannabis for pain management, was prior recreational marijuana use.

The authors called for more double-blind, placebo-controlled trials to better understand the effectiveness of cannabis for pain management, acknowledging the potential for a placebo effect.

These views expressed by marijuana users could give medical cannabis companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) some additional pointers on how to better position their products to serve the needs of these categories of patients.

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420 with CNW – Advocates Submit Petitions Seeking to Put Adult-Use Cannabis on Ballot in North Dakota

The organizers of a new ballot initiative in North Dakota to legalize recreational cannabis submitted their petition signatures on July 5, 2024. This step sets the stage for another potential statewide vote on a matter that voters and state lawmakers have previously turned down.

Steve Bakken, chair of the sponsoring committee for the New Economic Frontier measure, announced that the group had submitted more than 22,000 signatures. For the initiative to make it onto the November ballot, 15,582 of those signatures need to be valid. The Secretary of State’s office, led by Michael Howe, has until Aug. 12, 2024, to verify the signatures.

The move, according to Bakken, a former mayor of Bismarck and commissioner for Burleigh County, is intended to avert possible mismanagement by outside interests.

The proposed 20-page measure would allow adults aged 21 years of age and older to use recreational cannabis in their homes or on private property. It includes detailed regulations on processing and production, prohibited uses (such as in public vehicles or spaces), and permits for home cultivation.

The measure sets limits on the amount of cannabis that can be purchased and possessed: up to an ounce of flowers or dried leaves, 4 grams of concentrated cannabis oil, 1,500 mg of THC overall in items made from cannabis, and 300mg of edibles. It also allows for various cannabis products, including capsules, solutions, transdermal patches, topicals and concentrates.

In North Dakota, using marijuana under the age of 21 is a minor misdemeanor. While recreational use by adults isn’t a crime, possession is, with penalties ranging from infractions to misdemeanors based on the amount. Delivering cannabis is a felony, with increased penalties for factors such as proximity to schools.

Last year, according to data from the state’s courts, 4,451 people were charged with marijuana use or possession across the state.

Voters in the state rejected similar legalization measures in 2018 and 2022. In 2021, the state’s GOP-led House passed measures to legalize recreational cannabis, but these measures were defeated in the Republican-majority Senate. Opponents cited concerns over the negative societal and physiological effects of cannabis.

Voters did approve medical cannabis in 2016, and the state’s program now has nearly 10,000 active patients. A new procedure to facilitate pardons for minor marijuana offenses was adopted in 2019, with Governor Doug Burgum granting 100 pardons since then.

Currently, 24 states have legalized recreational cannabis, with Ohio being the most recent, having done so by initiative in last November. In addition legalization initiatives will be on the ballot in South Dakota and Florida this November. Additionally, in May, the federal government began steps to reclassify cannabis as a less harmful substance.

If North Dakotans finally pass this measure, market opportunities could open up for various companies such a Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) that may be looking to expand their footprint around the country.

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420 with CNW — NCAA Removes Cannabis from List of Banned Substances

Marijuana will no longer be prohibited for Division 1 athletes following a vote by the National Collegiate Athletic Association (NCAA). The decision comes approximately five months after the association’s Division I Council recommended the change.

The new policy highlights that cannabis should be viewed similarly to alcohol because it isn’t a performance-enhancing substance. Further, the change follows a 2022 policy revision that increased the allowable THC levels for college athletes, bringing the NCAA’s rules in line with the World Anti-Doping Agency (WADA).

The new rule modifies the NCAA’s drug-testing guidelines for student-athletes participating in postseason football and sports championships, applying retroactively to remove any current penalties for marijuana-related violations.

NCAA council head, Josh Whitman, said in a news release that marijuana does not provide athletes with an unfair edge and that the drug-testing policy is intended to protect the fairness of competition. The NCAA further noted on social media that cannabinoids will be treated just as other substances that do not enhance performance, such as alcohol, with a focus on harm reduction for problematic marijuana use.

The reform is based on the NCAA’s CSMAS preliminary recommendations made last June, which suggested that all three governing bodies of the NCAA remove cannabis from the prohibited substances list. While Division I has voted on the proposal, Divisions II and III have yet to make their decisions.

The CSMAS’s recommendation recognized the shortcomings of the prior regulation and said that prohibiting and testing and punishing for the use of cannabis did not support the association’s view that the substance is not performance enhancing; rather, the regulations supported a harm-reduction approach.

Other sports associations have also revised their cannabis-testing regulations in light of changing state laws. For instance, as part of a collective bargaining agreement, the NFL and its players’ union decided in 2020 to stop suspending players for using cannabis. The NFL has also invested significantly in researching whether CBD can be a viable alternative to opioids and its potential for chronic pain management.

Further, the UFC declared in December that, per previous revisions, it would take cannabis off its list of prohibited substances. However, prior to a UFC event in February, a California athletics association stated that fighters could still be penalized by state laws for having THC levels above a specific threshold.

While supporters applaud these changes, WADA has come under fire for sticking to its prohibition of cannabis. A WADA panel argued in August of last year that cannabis usage goes against the sporting spirit, implying that athletes who use it become less than ideal role models and that their possible impairment may put others in danger.

As more sports bodies recognize that the prohibition of marijuana in the past wasn’t based on sound scientific reasons, they are likely to amend their rules and allow athletes to freely partake of the medical or recreational cannabis products from licensed companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), which could further boost the growth of the industry.

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420 with CNW — Poll Suggests Florida Cannabis Legalization Measure Will Narrowly Miss Voter Approval

A recent survey by a group opposing the legalization of marijuana in Florida reveals that while a majority of voters support the initiative, support falls short of the required 60% threshold for approval. Conducted by Cherry Communications for the Florida Chamber of Commerce, the poll indicates that 58% of Florida’s probable voters favor legalization while 37% oppose it, with 5% undecided.

On the other hand, an alternative ballot item related to abortion rights has 61% of the vote, which means it will probably pass.

This marks the third survey indicating insufficient support for the marijuana initiative since Florida’s Supreme Court greenlighted its inclusion on the ballot, rejecting a challenge from Ashley Moody, the state’s attorney general.

The survey, which involved 609 voters who are likely to vote, was conducted between April 28–May 7, 2024, with a margin of error of 4%.

A recent Ipsos/USA Today poll indicated that 56% of registered voters in Florida and 49% of adults statewide support marijuana legalization. Similarly, only 47% of voters in a Mainstreet Research and Florida Atlantic University (FAU) poll were in favor, with 35% against and 18% undecided.

Notably, Kim Rivers, Trulieve’s CEO, contested the recent polls, asserting that the internal survey suggests strong support for the initiative, potentially exceeding 70%. Trulieve, a major financial contributor to the campaign, has invested close to $50 million.

Although the campaign has not disclosed internal survey data, previous surveys have shown a more positive image. November 2023 saw approximately 70% of respondents to a University of North Florida (UNF) poll in favor of legalization.

Florida governor, Ron DeSantis, anticipates a rejection of the measure in November, citing concerns over its potential impact on the quality of life.

Despite DeSantis’s position, he accurately predicted the Supreme Court’s decision to include the initiative on the ballot. Additionally, he has weighed in on federal marijuana policy, asserting that the federal ban on gun ownership for state-legal cannabis users may be unconstitutional. However, he did not intervene in a lawsuit filed by Florida’s former agriculture commissioner against the Biden administration over this issue.

Economic projections suggest legalization could generate significant tax revenue, estimated between $195 million and $431 million annually. If passed, the initiative would amend Florida’s Constitution to permit existing medical marijuana companies, such as Trulieve, to sell cannabis to adults 21 years of age and older. Notably, the proposal lacks provisions for home cultivation, expungement of past records or social-equity measures. The specifics of the survey questions were not disclosed publicly.

Industry actors such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) will be watching the developments in Florida to see if it becomes the latest U.S. state to end marijuana prohibition.

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420 with CNW— Marijuana Biopharmaceutical Company Takes DEA to Court for Hindering its Cultivation Plans

In a fresh lawsuit brought against the U.S. Department of Justice (DOJ) and the U.S. Drug Enforcement Administration (DEA), MMJ BioPharma Cultivation, a marijuana company based in Rhode Island, is seeking to halt an administrative law judge’s review of its application to produce cannabis for research.

The lawsuit contends that DEA director Anne Milgram unlawfully appointed administrative law Judge Teresa Wallbaum. The company argues that this action violates the constitutionality of the process and the decision-maker involved, as well as lacks accountability to the president. The lawsuit names DEA Administrator Anne Milgram, DEA Administrative Law Judge Teresa Wallbaum, the DOJ and U.S. Attorney General Merrick Garland as defendants.

The company submitted its application to legally cultivate cannabis for research in 2018 to create clinical trials medicines addressing conditions such as Huntington’s disease and multiple sclerosis. However, it claims that despite applying five years ago, it has faced delays and uncertainties from the DEA leading to significant negative impacts on its operations, including the inability to expand its workforce and the loss of revenue.

Despite the legal action, Wallbaum stated that given the available facts and unique circumstances, a stay seemed appropriate. Highlighting MMJ’s challenge to the tribunal’s jurisdiction under Axon, which allows federal courts to handle structural challenges, she indicated that this presents a complex issue affecting the DEA’s possibility of success. Moreover, she referred to the Axon court’s decision, underscoring that exposing a party to legal proceedings carried out within an unconstitutional framework could itself amount to legal harm.

During recent committee hearings in Congress, Congressman Earl Blumenauer raised concerns about medical marijuana research and treatment delays. He noted that delays such as MMJ’s had an impact on Biden’s administration.

The company’s president, Duane Boise, condemned the DEA’s action, accusing the agency of impeding cannabis research. He underlined that even while MMJ complies with the law, the DEA has not, which has resulted in hardship for patients in need as a result of inaction on the part of the government.

Attorney Tim Moynahan, who is also the company’s chair, expressed hope that by challenging the DEA’s constitutionality while offering a path for correction, this case would be resolved. He urged the DEA to settle the matter, especially considering MMJ’s crucial role in developing drugs to aid patients with conditions such as Huntington’s disease and multiple sclerosis.

The scheduled hearing before the DEA administrative law judge on April 10, 2024, has been temporarily halted following the filing of the federal lawsuit.

For quite some time, complaints have persisted about the way the DEA handles applications related to marijuana research. The outcome of this lawsuit could play a role in bringing about some needed changes so that companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) can face fewer hurdles should they ever require DEA approval for any cannabis study that they wish to undertake.

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420 with CNW — Missouri Announces Date for Submission of Additional Cannabis Microbusiness Applications

The Missouri Department of Health and Senior Services (DHSS) is set to begin receiving the next wave of applications for microbusiness licenses electronically, using its online registry platform. The application window is slated to open from April 15 to April 29, 2024, with licensing expected to be finalized by July.

Last year, the department granted 48 licenses for microbusiness establishments, marking the conclusion of the initial phase in a series of three rounds for the allocation of such licenses.

Microbusinesses refer to licenses for cannabis facilities exclusively available to qualifying individuals and entities and are aimed at facilitating the involvement of underrepresented and marginalized persons in the legal cannabis industry. Unlike dispensaries, microbusinesses are subject to a growth ceiling of 250 flowering plants and are authorized for the transportation, manufacturing and packaging of cannabis products.

Before the application period opens, DHSS has provided potential applicants with several guidelines, including the following:

Applicants may apply for only one microbusiness facility license, which could be either for a dispensary or a wholesale facility.
Applicants are ineligible if any of their owners possess an ownership stake in an existing comprehensive, medical or any other microbusiness cannabis facility certification or license. This condition is to ensure a level playing field for all applicants.
The selection of microbusiness license recipients will be conducted through a random lottery draw, devoid of any consideration of the applicants’ identities. The Missouri Lottery will oversee this process to uphold its integrity.
Following the closure of the application window, qualifying candidates will be categorized by license type (dispensary or wholesale) and congressional. Subsequently, each group will be assigned a unique sequential identifier for the lottery draw, resulting in a total of 16 lottery sets.
All applications submitted on time and with the requisite fee will be taken into account for the lottery. On the other hand, late entries or applications without the required payment will be disqualified.
The lottery drawing, scheduled for June 2024, will determine the order of applicants within each congressional district. All applicants will receive notification via email of their applicant identifier before the lottery drawing.
The results of the lottery drawing will be made public on the department’s website once they become available.

The department is expected to issue a minimum of 144 licenses by the third round, comprising 96 for wholesale vendors and 48 for dispensaries. According to state legislation, the licenses must be distributed evenly across Missouri’s eight districts.

The measures to expand the cannabis industry in Missouri are likely to be a welcome development for established companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), which would be happy to see prohibition rolled back across the country.

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420 with CNW — Company Makes First Export of DEA-Approved Marijuana from Jamaica to US

A Jamaican-Canadian company based in Toronto and formed by Canopy Growth Corp. and Steep Hill Labs’ former employees, has completed what it asserts to be the inaugural DEA-approved export of marijuana products from Jamaica to the United States. The company, Pure Jamaican, alongside Seven-10 Pharmaceuticals, its manufacturing and cultivation division located in Montego Bay, Jamaica, dispatched a range of eight distinct tincture products and three diverse distillate products containing varying ratios of CBD and THC, according to Scott Cathcart, who heads both entities.

Only a small batch of the products was sent for DEA-sanctioned research purposes. The products were shipped to ACS Laboratory, a Sun City Center, Florida-based establishment licensed by the U.S. Drug Enforcement Administration (DEA). Florida officials and the testing facility have a tense past. Notably, since 2022, ACS has been fined by Florida regulators about three times. The tens of thousands of dollars in fines were a result of several violations, including providing misleading information on certificates of analysis and not adhering to state standards on testing procedures.

Researchers with DEA licenses have been able to obtain cannabis from a select few authorized growers since 2021. Previously, the University of Mississippi was the only place where cannabis could be obtained for research purposes, or one needed to obtain DEA approval to import from other countries.

Cathcart expressed optimism regarding the potential rescheduling of cannabis from Schedule I to III under the Biden administration, foreseeing opportunities for commercialization in the U.S. market. However, he acknowledged the necessity of undergoing the lengthy FDA approval process before the products could be made commercially available.

Despite this, he is still optimistic that the products may be deemed “nutraceuticals,” which would free them from the need for federal approval before being sold.

Anticipating regulatory shifts, Cathcart is optimistic about the prospects of Pure Jamaican products in the U.S. market, citing the company’s pharmaceutical manufacturing license from the Pharmacy Council of Jamaica and relevant certifications from Jamaica’s Ministry of Health & Wellness. However, it remains uncertain whether the Jamaican pharmaceutical license carries the same weight as a U.S. pharmaceutical license.

Presently, the company is already distributing tincture products directly to Brazilian patients, according to a recent press release from Pure Jamaican. Before establishing Seven-10 and Pure Jamaican in 2018 with Martin Shefsky, another former Steep Hill executive, Cathcart spent about five years as the chief global expansion officer at Steep Hill Labs.

As the regulatory climate in the United States evolves over time, it will no longer be newsworthy when Pure Jamaican, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) or any other company or its subsidiary exports, imports or otherwise engages in any interjurisdiction trade in marijuana products.

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420 with CNW – Legal Opinion Asserts That Rescheduling Cannabis Won’t Violate US International Obligations

A recent legal opinion has challenged the U.S. Drug Enforcement Administration’s (“DEA”) stance, suggesting that international treaties related to drugs should not hinder cannabis rescheduling as recommended by the U.S. Department of Health and Human Services (“HHS”). According to the opinion, doing so would be more in line with the country’s duties under international legislation to regulate marijuana in a manner that safeguards public safety and health.

Prepared by lawyers from Vicente LLP and Porter Wright LLP firms, the opinion aims to counter the DEA’s assertion in 2016, when it denied a previous request for a cannabis rescheduling. At the time, the agency maintained that cannabis could not be classified under a less stringent schedule than Schedule II because of international drug agreements.

The legal paper contends, however, that these treaties give countries enough latitude to create drug laws that put national welfare and health first, even if doing so means ending prohibition.

The Coalition for Cannabis Scheduling Reform, an advocacy group and association representing various marijuana-related groups and businesses, commissioned the paper, which has been shared among members and in private with key government figures.

While concerns have previously been raised by individuals such as Representative Andy Harris regarding treaty obligations, noting potential violations of the Single Convention of 1961, a group of senators has highlighted revisions to global marijuana scheduling laws, citing countries such as Canada, which have legalized and regulated cannabis without repercussions. The writers point to Canada and Uruguay in support of their reading that international drug treaties broadly support regulating drugs for safety, research and medical applications. Further, they note that the DEA has in the past rescheduled a cannabis-based medication, Epidiolex, after it received FDA approval, showing that there has been precedent for changing the categorization of cannabis.

The opinion not only refutes the notion that drug treaties forbid cannabis reclassification, but it also emphasizes the member nations’ latitude in upholding treaties even when doing so contradicts their internal constitutions.

This becomes especially important in the case of the adult-use cannabis markets that are already operating and have been approved by state legislation. The opinion argues that closing state markets on treaty grounds would violate states’ fundamental constitutional rights and highlights the existence of treaty exceptions when constitutional constraints are in effect. Moreover, the opinion underscores the legal discrepancy between the final rule and final order in DEA rescheduling proceedings, suggesting that treaty obligations could enable the agency to bypass the rulemaking process.

The legal opinion above could help shape the final decision that the DEA makes, although industry actors such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) are only awaiting a communication from the federal agency so that they can assess how their strategic plans could evolve based on the changed regulatory climate in the United States.

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420 with CNW — Virginia Assembly Committee Approves Cannabis Bill Permitting Sales

A recently amended measure, HB 698, advanced by a Virginia Assembly subcommittee, seeks to permit existing medical cannabis dispensaries and certain small businesses to commence recreational marijuana sales in January next year, with more retailers expected to be licensed by year-end.

A medical marijuana operator has to quickly establish six microbusinesses to capitalize on an early launch date. The present form of the law would provide $400,000 in funding to each of these microbusinesses. In turn, microbusiness licenses would require that at least two-thirds of the individuals directly controlling the enterprise meet certain social-equity requirements, with preference going to those who meet multiple requirements.

Delegate Paul Krizek, the subcommittee chair and the bill’s lead sponsor, noted that his proposal draws inspiration from Maryland’s approach to legal sales, including a gradual marketplace rollout. The bill is designed to ensure affordability through low taxes (9%), utilizing medical companies to address initial demand and implementing a robust social program to assist individuals most affected by cannabis criminalization.

Equity activists applauded the inclusion of prior cannabis misdemeanor convictions and people related to someone convicted (spouse, child, parent or sibling) as substantial additions to the qualifying requirements for microbusiness licenses. Additional criteria involve residence in historically underprivileged neighborhoods, school attendance in such areas, receiving Pell grants, or military veteran status.

The accelerator might be able to sustain 30 microbusinesses, given that Virginia currently has five medical cannabis providers. However, the measure would eventually allow more licenses for different marijuana-related activities.

Despite varied perspectives, there is general agreement that market control is necessary following the legalization of cannabis home cultivation, possession and use in 2021. Currently, legislators are trying to reach an agreement on a proposal regarding retail sales, despite the possibility of a veto from Governor Glenn Youngkin, who stated last month that he had no interest in legalizing Democratic-led sales bills.

When he assumed office, Gov. Youngkin stated that he was not opposed to permitting commercial sales in general. However, he noted that there were several Democratic measures, such as clauses requiring cannabis businesses to form labor unions, that he would not support.

Krizek’s amended measure is unique for allowing Virginia’s five existing medical cannabis companies to start recreational sales before new retailers receive licenses. While advocates argue that this speeds up the state’s legal marijuana sales, detractors warn that it would unfairly favor large out-of-state medical businesses over small and local enterprises.

Several advocacy organizations, such as Marijuana Justice and the Virginia chapter of NORML, are in support of the measure. Established cannabis companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) could also support the draft law because it would expedite access to licensed marijuana products instead of having customers taking chances with black-market products.

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