420 with CNW — Cannabis Banking Drives Wedge Between Senate Republicans

The results of the November midterms created a sense of urgency among supporters of cannabis banking legislation. This is because the chances of this bill passing in the next Congress dimmed when Republicans wrested control of the House of Representatives from Democrats and denied the Democrats a solid majority in the Senate.

Renewed efforts were therefore invested to see to it that some form of cannabis banking reform is approved during the lame duck session prior to the commencement of the new Congress. That renewed vigor seems to be failing to bear fruit, however, and the GOP is being divided between those in favor of banking reform and those opposed to any form of cannabis policy reform.

A case in point involves newly elected NRSC (the Republican caucus in the Senate) chair Steve Daines, a Republican from Montana, and Mitch McConnell, the minority leader of the Senate. Daines has campaigned vigorously to see cannabis banking language included in the omnibus package or in the National Defense Authorization Act, if the SAFE Banking bill fails to pass on its own.

McConnell effectively killed both options, and Daines isn’t happy about it. Daines’ home state, Montana, legalized recreational marijuana, and the GOP senator has been pushing for cannabis banking as a way to safeguard the public from the risks associated with all-cash marijuana industry operations back home. McConnell isn’t impressed.

The two leaders are vital in the GOP senate machine, and disagreements on these policy issues intertwined with politics could split the party down the middle. This is especially possible given the fact that other GOP senators, including Dan Sullivan from Alaska and Rand Paul from Kentucky, are passionate supporters of SAFE Banking.

Proponents of passing legislation enabling cannabis banking see GOP lawmakers opposed to these reforms as playing politics on a matter of public safety, especially since numerous opinion polls across the country have shown overwhelming bipartisan support at the grass roots in favor of marijuana policy reform. GOP lawmakers from states with legal marijuana markets are particularly unhappy that party leadership remains adamant about the realities on the ground, such as the risks to life faced by staff at cannabis businesses on a daily basis as burglars and armed robbers target these establishments.

Thom Tillis, a GOP senator from North Carolina, is opposed to the cannabis reform measures before the senate. He downplays any notions that the policy differences between Daines and McConnell could divide the GOP, saying that the two men share a great relationship regardless of their positions on cannabis banking.

It remains to be seen how the party resolves these internal differences without fracturing further, especially given that another election cycle is around the corner in 2024. You can bet that cannabis industry players such as Flora Growth Corp. (NASDAQ: FLGC) will be following events in Congress closely.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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Luis Merchan, Helping Flora Growth Corp. (NASDAQ: FLGC) Become Global Leader in the CBD Space

Luis Merchan was appointed President of Consumer Goods at Flora in July 2020 before being appointed as the company’s CEO five months later, and chairman of its Board of Directors in May 2022
Merchan would lend his years of experience at Macy’s, where he led various sales and marketing initiatives, including the B2B corporate team responsible for bringing in $160 million in annual revenue
Under his leadership, Flora has transitioned from the development stage to a full-scale international distributor with operations in over 12 countries worldwide. Mr. Merchan has also spearheaded several M&As, all of which have since set the company up for rapid growth
Flora maintains its revenue guidance for FY 2022 to be between $35 and $45 million, incorporating revenue contributions from its various operating divisions, including Vessel Brand

In July 2020, Flora Growth (NASDAQ: FLGC), a cannabis cultivator, brand manufacturer, and global distributor, appointed Luis Merchan as the President of Consumer Goods. Mr. Merchan would lead the company’s CBD portfolio, eventually launching four unique brands in the United States and facilitating the growth of the company’s operating divisions (https://cnw.fm/ZeVsJ). His performance would influence his appointment as CEO of the company five months later, taking over from Damian Lopez.

Before joining Flora, Mr. Merchan held various positions at Macy’s Inc., including Vice President (“VP”) of Workforce Strategy and Operations, VP of Customer Experience and Selling Support Services, and Group VP of National Merchandising and Sales Beauty.

Over his 9-year tenure at Macy’s, Mr. Merchan led various sales and marketing initiatives that included the B2B corporate sales team responsible for bringing in $160 million in annual revenue for the company. This earned him the Macy’s Chairman’s award for four consecutive years, from 2015 to 2018 (https://cnw.fm/ZdcAD).

During the announcement of his appointment as Flora’s head, the outgoing CEO, Damian Lopez, noted the company’s plan to adapt its team to put Flora Growth in the best position possible to carry on its impressive growth trajectory. In addition, he lauded Mr. Merchan’s performance as President of Consumer Goods, citing how impressive of a business executive he was and how integral he would be for the company’s growth going forward.

“I am excited to leverage my past consumer packaged goods experience at Macy’s while continuing to work closely with Damian and leveraging his knowledge of the company and the industry to make Flora Growth a global cannabis brand,” noted Mr. Merchan (https://cnw.fm/mhUkT).

Merchan has since been appointed Flora’s Chairman of the Board, taking over from Bernie Wilson, terming it as a “Testament to what we have built together thus far.” This came on the heels of Flora’s transition from the development stage to a full-scale international distributor with operations in over 12 countries worldwide; all achieved under Merchan’s leadership. Merchan has also spearheaded several mergers and acquisitions (“M&As”), most notably JustCBD and Vessel Brand, which have since set the company up for rapid growth.

Flora has since also secured $34.5 million in financing and signed deals with key retail distributors such as Tropi, a Colombia-based distributor, Walmart, and Macy’s. The company also completed its first import of CBD-containing food and beverage products into the United States from Colombia under its Mambe brand. It has also signed an agreement with luxury clothing and lifestyle brand Tonino Lamborghini to distribute designer CBD beverages through this retailer.

Flora maintains its revenue guidance for the 2022 financial year to be between $35 and $45 million, incorporating revenue contributions from its various operating divisions, including Vessel Brand. Mr. Merchan is confident that the company will realize these projections, even as it works towards further market expansion and product diversification as time progresses. Under his leadership, Mr. Merchan is slowly turning Flora into a global leader in the CBD space while also helping it execute its strategy to achieve its short-term and long-term objectives.

For more information, visit the company’s website at www.FloraGrowth.com.

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

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420 with CNW — Oregon Lawsuit May Allow Interstate Cannabis Commerce as Congress Remains Inactive

Decades after California legalized medical cannabis and launched an industry that would soon be worth billions of dollars in revenue, interstate cannabis is still virtually nonexistent. But even though America’s state-legal cannabis industry now employs hundreds of thousands of people and generates billions of dollars in taxes, there is little to no interstate commerce between states with legal markets. This is partly because most of these states included stipulations in their regulator frameworks that prevented them from trading with other states.

As a result, cannabis producers cannot ship their products across state lines or source cannabis-related raw materials from other states. However, analysts familiar with the matter say that this may soon change if a lawsuit against Oregon’s cannabis law is successful.

If Congress doesn’t move to legalize interstate cannabis trade, activists and industry players could go through the courts to make it possible for players in the cannabis industry to trade across state lines. Like many states with legal cannabis markets, Oregon has stipulations that require cannabis operators to conduct their business within state lines.

Jefferson Packing House, a distribution company based in Medford, Oregon, filed a lawsuit against Oregon state officials, including the governor, arguing that the state law prohibiting interstate trade was unconstitutional. Oregon officials seem quite willing to legalize interstate trade after Governor Kate Brown passed a law that would lift the ban on interstate trade if major changes were made to federal cannabis policy.

The recent lawsuit shows the industry’s impatience and lack of faith in reform at the federal level. It could be months or even years before Congress legalizes cannabis at the federal level and allows interstate cannabis commerce.

Jefferson Packing House is seeking to enact change as soon as it can without waiting for any action from the federal government. Lawyers from the company sent a letter to state officials on Nov. 14, 2022, arguing that only Congress had the authority to regulate interstate commerce.

The Dormant Commerce Clause bars states from preventing the free movement of goods, capital and people between states unless they have received express and limited approval from Congress. States may also receive Congressional approval to prevent interstate trade if there are real public health concerns that can’t be dealt with through other restrictive means.

If the lawsuit against Oregon officials is successful, it could encourage other states to fight for the approval of interstate cannabis trade through their respective courts. If the courts sanction interstate commerce involving cannabis, entities such as Flora Growth Corp. (NASDAQ: FLGC) would probably have to rethink their approach to expanding their footprint across the country.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

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Cannabis Products Continue to Flourish, Showcasing Potential of Cultivator Flora Growth Corp.’s (NASDAQ: FLGC) Growing International House of Brands

Cannabis grower and brand builder Flora Growth is a rapidly growing international supplier and supply chain developer aiming to distinguish itself in a highly competitive market
Following on a 604 percent YOY revenue increase for the first half of the year, Flora continues pursuing strategic acquisitions such as its recent all-stock deal for multi-national operator Franchise Global Health
Flora also anticipates expanding its production facilities, adding a fourth by the end of this year that will provide the company with its first pharmaceutical formula operation for the Colombian wellness market
The Franchise Global Health agreement is expected to give Flora a strong presence in Germany and an introduction to Europe, adding to its export pipeline to Switzerland, the Czech Republic and the United States from Colombia

Legal cannabis has become the the sixth-largest cash crop in the United States after corn, soybeans, hay, wheat and cotton (https://cnw.fm/RChLp), and voters continue to address the potentials of an expanding market for recreational marijuana (https://cnw.fm/IO2FN).

Non-recreational medicinal cannabis has been legalized in 37 states and continues to fuel a multi-billion dollar industry (https://cnw.fm/I17Vl), which is only a portion of the global market that supplies the 80 percent of the world’s population using cannabis or hemp for medical treatments. For now, international annual growth rates are more robust than the projected growth rates in the United States, according to Kiplinger (https://cnw.fm/tXctZ).

Cannabis cultivator and global distributor Flora Growth (NASDAQ: FLGC) is a rapidly growing house of brands building customer bases and distribution channels across international lines as it aims to distinguish itself within a highly competitive arena.

Much of Flora Growth’s strength lies in its licensed cultivation, extraction, and isolation facility located in northern Colombia’s fertile climate, where an experienced labor force is helping the nation emerge from decades of drug war illicit trade into a recognized and regulated market.

From its 247 acres of growing fields, the company’s harvests move into a production pipeline that includes a flower and derivatives production lab situated with the cultivation camp, as well as a topical, capsules and dietary supplements lab in Colombia’s capital and a third lab in the United States, where CBD ingestible, tinctures and gummies are made.

A fourth state-of-the-art lab being built in Colombia’s capital is being designed to formulate custom and proprietary pharmaceuticals that will be sold and used in Colombia. The life sciences lab is expected to open by the end of this year with eight registered pharmaceutical grade formulas that target specific ailments such as insomnia, epilepsy, and anxiety (https://cnw.fm/bbuJj).

“At Flora, we believe that cannabis will dramatically improve the wellbeing of consumers around the globe and that it will become an international trade. Our company exists today to capitalize on that opportunity,” CEO Luis Merchan stated last month in an interview about its most recent acquisition to help fuel its global ambitions — an all-stock deal for multi-national operator Franchise Global Health (https://cnw.fm/Qs3Qn).

The Franchise Global Health (“FGH”) acquisition is expected to give Flora an in-road to Europe through Germany, where FGH helped pioneer the European cannabis market and where 75 to 80 percent of European sales take place.

FGH’s German businesses operate primarily in the export pharmaceutical and medical cannabis import and distribution markets, servicing 1,200 pharmacies in Germany, according to a company news release (https://cnw.fm/6z8lD).

Notably, while Flora’s operation provides THC and CBD flower and derivatives to international markets, the company only produces CBD products within the United States because its NASDAQ listing prevents it from participating in the THC (traditional tetrahydrocannabinol cannabis) market domestically.

For more information, visit the company’s website at www.FloraGrowth.com.

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

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420 with CNW — Veterans’ Organizations Urge Congress to Approve Medical Cannabis Research Bill

Last week, a syndicate of more than 20 veterans’ service organizations forwarded a letter to congressional leaders, urging them to approve the VA Medicinal Cannabis Research Act before the end of the current session. The organizations included Disabled American Veterans, AMVETS and Iraq and Afghanistan Veterans of America.

These veterans’ service organizations want legislators to pass the cannabis and veterans research legislation, which would make it necessary for the Department of Veterans Affairs to carry out clinical trials studying the therapeutic potential of marijuana for military veterans.

The letter states that many veterans have, for decades, requested that medicinal marijuana be prescribed as a treatment option for PTSD and other injuries sustained through services. It also states that caregivers and veterans have recounted their anecdotal experiences regarding how marijuana is effective in addressing some of the health concerns they face.

The letter then notes that the veterans’ service organizations remain committed to carrying out studies into the effectiveness of medicinal marijuana as a treatment for veterans with post-traumatic stress disorder, chronic pain and traumatic brain injuries.

Currently, marijuana remains classified as a Schedule I drug under the Controlled Substances Act. This classification makes it harder for researchers to study the drug’s effectiveness because many bureaucratic hurdles impede research.

The senate version of the legislation is being led by Senators Dan Sullivan and Jon Tester while the House version is being sponsored by Representatives Peter Meijer and Lou Correa. Correa stated in a recent interview that alternative treatment options for veterans needed to be explored, noting that federal policies that support such treatment options were needed.

Despite protests of VA officials, the bill cleared a House committee in 2021. Earlier versions of the initiative were advanced through committee in 2018 and 2020 but are yet to be enacted into law.

Meanwhile, the National Defense Authorization Act that was recently released following bicameral negotiations does not include separate language from a version that had been approved by the House. That bill would have allowed VA physicians to recommend medical marijuana to veterans living in states where the drug is legal.

However, an explanatory statement for the large-scale defense spending legislation directed the defense department to look into the potential of plant-based treatments such as marijuana and some psychedelics for service members.

Additionally, President Joseph Biden signed a broader cannabis research legislation recently. The legislation will help streamline the process for researchers to obtain and conduct research on marijuana.

This law could possibly ease the way for any research that industry players such as Flora Growth Corp. (NASDAQ: FLGC) would like to undertake on marijuana or any of its compounds.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

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420 with CNW — Cannabis Sales Slow as Pandemic Eases

Marijuana sales declined across the U.S. markets after the sale spike at the onset of the pandemic. This slowdown came after the industry faced economic and regulatory tests, causing people to channel their spending money elsewhere. Small enterprises find it hard to penetrate the populated market because there isn’t sufficient investment money. The cannabis industry is also on hold, awaiting regulation by the federal government to boost its sales nationwide.

Oregon and Washington states, where the cannabis market is already established, are recording low sales at the retail outlets, a cannabis data firm Headset reports. In addition, sales were 11% lower in June since the same time last year in the nation’s longest established cannabis market: Colorado.

The year 2020 saw a mega spike in sales as people were confined indoors with little to do, with many qualifying for government stimulus packages, said Chris Wash, the CEO of a trusted Canadian legal cannabis publication.

Between March 2020–2021, the monthly business year average sales went up 25.8% in Colorado. But when the pandemic eased, both cannabis purchases and their spending power frequencies took a nosedive, Headset reported. People spent about $55.21 on each visit to the Median store in Colorado in July 2022, approximately $4 lower than the average $60 in July of 2021, Headset research recorded.

Discounts are being offered during a high inflation season by retailers in a bid to move product; this is coupled by fierce competition from the sales of cannabis product in the untaxed black market. Troy Datcher, the CEO of the Parent Company, a cannabis firm, says it’s a challenge to operate in a competitive environment where the biggest competitor is the black market.

Analysis by Marijuana Business Daily indicates both recreational and medical marijuana sales in the United States are projected to reach $33 billion by the end of 2022, an increase from last year’s $27 billion; the forecast note that by 2026, sales are projected to hit $52.6 billion. This projection is encouraging inasmuch as the industry has teething problems in its growth. Total sales in retail stores across the country are rising and are projected to continue doing so as new bigger markets emerge online in New York, Maryland and Missouri.

According to Viridian Capital Advisors, a New York-based cannabis advisory entity, the total marijuana capital raised in the country dropped to 62.6% since 2021 while equity financing dipped 96.3%, translating from $2.1 billion last year to $78 million presently.

The problem in part is that investors are worn out waiting for federal regulations to change. This slack by the federal government dictates that the states where cannabis business sales are legal still cannot access traditional banking services or institutional capital. A congressional bill, the Secure and Fair Enforcement Banking act (SAFE), would be instrumental in lifting such restrictions. However, the bill did not make it to the Senate despite being passed in the house several times.

Many investors dove into the industry hoping a shift would be in the offing at the federal level to reschedule cannabis or pass a banking legislation, said Entourage Effect Capital founder, Matt Hawkins. Hawkins and other investors are now quite selective in business entities they fund, prioritizing those that already have a worthy market share. This move gives little hope to SMEs looking to get their feet in the door.

The cannabis industry is in internal consolidation, with new licensed business entities finding it rough gaining capital and efficiently expanding, noted Robert Beasley, the CEO of Fluent, a business operating medical marijuana dispensaries in Texas, Florida and Pennsylvania.

In spite of the economic hardships, Beasley believes that several regulatory relief measures could spur the industry back on course. This could give players such as Flora Growth Corp. (NASDAQ: FLGC) a bigger market base to serve.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

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420 with CNW — Federal Health Secretary Provides Update on Cannabis Scheduling Review

Secretary Xavier Becerra of the U.S. Department of Health and Human Services recently revealed during an event on overdose prevention that the agency was focused on completing a review on federal marijuana scheduling, as was recently directed by President Joseph Biden.

President Biden ordered that a scheduling review be carried out by the department following his issuance of marijuana pardons, which saw thousands of individuals convicted of simple marijuana possession under federal law being released.

The health secretary has thus far raised the issue with the head of the FDA, Dr. Robert M. Califf. The department head added that the FDA was committed to supporting evidence-based policies for cannabis, noting that the science-focused approach also applied to policy decisions on other drugs.

When asked about drug decriminalization efforts, Becerra noted that while it wasn’t in the department’s jurisdiction to make policy decisions on such matters, the department would base its guidance to the federal government on both evidence as well as science. He then added that the main focus when it came to drug policy needed to be on keeping individuals alive and allowing them to thrive. Becerra has in the past supported marijuana reform as an attorney general of California and even before, as a Congressman.

Senator Tammy Baldwin, who was also present at the event, revealed that she was in favor of cannabis decriminalization. Baldwin, who has co-championed a number of reforms, also highlighted the conflict between state law and federal law when it came to drug policies.

With regard to Biden’s scheduling order, Rahul Gupta, the White House Drug Czar, stated that the move was historic and highlighted that marijuana possessed various medical benefits.

The Department of Justice is also conducting a separate scheduling review as directed by Biden; its review could cause marijuana to be reclassified in a lower schedule or even be scraped from its current classification altogether. Marijuana’s removal from its current schedule would effectively legalize it under federal law. This move is supported by the majority of Americans, with a series of polls showing that most are in favor of Biden’s pardon action and do not think cannabis qualifies to be classified as a Schedule I federal drug.

At the moment, however, the drug will remain classified as a Schedule I substance under the Controlled Substances Act.

In related news, the president commended a move by Governor Kate Brown of Oregon to grant cannabis pardons to tens of thousands of individuals, noting that other states needed to follow suit.

The entire cannabis industry, including entities such as Flora Growth Corp. (NASDAQ: FLGC), will be following the scheduling review process closely since the policy recommendations made could have far-reaching implications for the future of the industry.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

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CannabisNewsBreaks – Flora Growth Corp. (NASDAQ: FLGC) Announces $5M Registered Direct Offering

Flora (NASDAQ: FLGC), a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, today announced its entry into securities agreements with institutional investors for the purchase and sale of 12,500,000 of the company’s common shares, pursuant to a registered direct offering, and warrants to purchase up to 12,500,000 common shares. According to the update, the combined purchase price for one common share and one warrant will be $0.40. Aggregate proceeds from the offering will be approximately $5.0 million, from which the company expects to use net proceeds for capital expenditures, to increase operating capacity, as well as for working capital and other general corporate purposes. Subject to the satisfaction of customary conditions, the offering is expected to close on or about Dec. 13, 2022. A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

To view the full press release, visit https://cnw.fm/DXvPb

About Flora Growth Corp.

Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands, designed to deliver the most compelling customer experiences in the world, one community at a time. As the operator of one of the largest outdoor cannabis cultivation facilities, Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its commercial, house of brands and life sciences divisions. Visit www.FloraGrowth.com or follow @floragrowthcorp on social media for more information.

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420 with CNW — Michigan Resident Files Lawsuit Against California’s Marijuana Social Equity Law

Kenneth Gay, a Michigan resident, has filed a lawsuit challenging the constitutionality the cannabis social equity program in Los Angeles. Gay has a stake in an LA-based company and had applied for a license under the social equity program.

According to the suit, Gay has submitted his social equity application, but as of October 24, 2022, the City of Los Angeles hadn’t completed verifying his eligibility and yet a lottery to select licensees is slated for Dec. 8, 2022. He filed his lawsuit on Nov. 30, 2022.

Under LA law, to be eligible for the social equity program permit, one has to have a prior arrest/conviction or come from a low-income area or an area that has been negatively affected by police brutality. Gay claims he qualifies in all the three categories, but the arrest happened in Michigan and not LA. In his suit, he argues that LA law provides preferential bias against out-of-state residents with regards to the social equity program lottery, yet the U.S. Constitution has a clause against such bias.

This dormant commerce clause stops states and local governments from discriminating against out-of-state residents and offering preferential treatment to the locals. From Gay’s lawsuits presented in New York State and California, he had a reprieve when his lawsuit caused a halt in licensing in some parts of New York. The New York suit has also created a degree of disarray in that New York regulators have to wait before they issue some adult-use marijuana retail licenses until after the case is resolved.

In this lawsuit the plaintiff has a 51% stake in a company, Variscite, that applied for licenses in regions that are not significantly connected to New York. The New York judge granted the injunction. He declared that the defendants, including New York State, the New York State Office of Cannabis Management (OCM) and the agency’s executive officer, did not show the legitimacy of the initial license requirements.

In Sacramento, California, Gay claims that the Sacramento cannabis social equity program requirement violates one’s constitutional rights. In the lawsuit, Gay stated that he met all but one of the requirements for eligibility for the cannabis social equity license. This one requirement that Gay missed out on shows bias because licenses issued by Sacramento City favor current or former residents but not outsiders. Gay is not a resident of Sacramento, although he has a business there.

The lawsuits are another manifestation of the contradictions between federal law and state law, especially with regard to marijuana. On one hand, marijuana is illegal at the federal level so one wouldn’t expect federal law to be invoked in order to allow a company to conduct that business anywhere in the country.

On the other hand, many states’ laws allow marijuana, and it would be expected that states ought to be allowed to pass their own enabling laws without undue interference from federal agencies or laws. How this plays out is likely to be closely watched by companies that are active in the marijuana industry in different jurisdictions, such as Flora Growth Corp. (NASDAQ: FLGC).

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

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420 with CNW — Minnesota Expands List of Qualifying Conditions for Medical Cannabis

The Department of Health in Minnesota has approved the addition of obsessive compulsive disorder (OCD) and irritable bowel syndrome (IBS) to the list of medical conditions for which patients can be certified to start using medical marijuana. This change is slated for implementation starting on Aug. 1, 2023.

Jan Malcolm, the state’s health commissioner, said that the health department was adding OCD and IBS to the list of qualifying conditions so that the patients suffering from these two conditions, which are debilitating, could have access to an expanded pool of treatment options to manage their medical conditions.

People who suffer from IBS often experience abdominal discomfort or pain. Their bowel movements are also irregular, and they are likely to be constipated or have diarrhea, or a combination of diarrhea and constipation along with stomach bloating. OCD patients have recurring, intrusive thoughts that are distressing and induce anxiety. These thoughts trigger behavioral patterns characterized by the patient feeling compelled to repeatedly perform certain actions so that they can relieve some of the anxiety that they feel. Existing research indicates that patients with IBS and those with OCD can derive benefits from using medical marijuana.

As has been the case in the past from the time that Minnesota legalized medical cannabis, the health department undertook an official petition process geared at gathering the views of the public regarding the conditions that they thought merited to be included on the list of qualifying conditions for medical marijuana. Views were also sought on what medical cannabis delivery methods needed to be approved by the state. June and July saw petitions turned in by members of the public, and the process moved onto the stage of receiving comments about the petitions, followed by having a panel review the data received.

This process resulted in the approval of IBS and OCD while opioid use disorder and gastroparesis weren’t approved for inclusion. The reason for the rejection of those conditions was that the scientific data available indicated that gastroparesis could be worsened by cannabis use while there was insufficient evidence to support the use of medical marijuana for opioid use disorder.

In accordance with the medical marijuana rules of Minnesota, patients with the recently added qualifying conditions can start applying for certification on July 1, and then they will start gaining access to medical marijuana at licensed dispensaries on August 1 the next year. With these additions, the state now has a total of 19 qualifying conditions.

This expansion of the patients who can receive certification for medical marijuana is yet another step forward that the entire marijuana industry, including companies such as Flora Growth Corp. (NASDAQ: FLGC), is likely to applaud.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

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For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

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CannabisNewsWire420
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http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

CNW420 is part of the InvestorBrandNetwork.