CannabisNewsBreaks – Hero Technologies Inc. (HENC) Leveraging Proprietary Tech for Significant Opportunity in Aeroponics Space

Hero Technologies (OTC: HENC), a cannabis company working toward a vertically integrated business model, executed an acquisition and operating agreement late last year. This resulted in the company acquiring a majority stake in BlackBox Systems and Technologies LLC, an aeroponics cannabis cultivation system that uses proprietary technology. According to a recent article, this strategic acquisition “has made the company a clear contender in the cannabis aeroponics cultivation space.” Aeroponics is a method of growing plants in an environment with no soil. It is highly efficient, offering increased survival rates and a faster grow cycle than soil-based facilities. “HENC’s exclusive aeroponics technology, called BlackBox XL Systems and Grow module, provides optimal conditions to enhance photosynthesis and cultivation of large flowering plants, creating increased efficiencies. The company sees the aeroponics space combined with its proprietary technology as a significant opportunity with impressive potential.”

To view the full article, visit https://cnw.fm/DmwRv

About Hero Technologies Inc.

Hero Technologies is a cannabis company working toward a vertically integrated business model. The company owns a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and cultivation of large flowering plants, creating increased harvest efficiencies. Hero Technologies’ strategic business plan includes cannabis genetic engineering, farmland for both medical and recreational cannabis cultivation, production licenses, distribution licenses, consumer packaging, and retail and dispensary operations that make the company a multi-state operator (“MSO”). For more information about the company, visit www.HeroTechnologiesinc.com.

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

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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420 with CNW — Congressional Committee Authors Report Urging Feds to Rethink Firing Employees Who Use Marijuana

Although federal law still classifies cannabis as a Schedule I controlled substance, more than 30 states have legalized it for either medical or recreational use. This classification has been a constant thorn in the industry’s side, preventing businesses in the cannabis space from accessing crucial banking and financial services. Cannabis consumers have also been caught in the middle, with many of them being penalized by the federal government for actions that are considered legal in their home states.

As such, a powerful Congressional committee has released a report urging federal agencies to reconsider firing employees for using state-legal marijuana. Alongside the report, the annual Financial Services and General Government (“FSGG”) spending bill approved by the House Appropriations Committee also includes a provision that would provide protections for banks that work with state-licensed cannabis businesses.

The committee stated its support for a recent memo sent to federal agencies by the Office of Personnel Management (“OPM”), saying in the report that admission of last cannabis use should not automatically disqualify people from employment. Additionally, a longstanding rider that blocks Washington DC from allowing cannabis sales was conspicuously absent from the spending legislation.

The report, which was attached to the FSGG spending bill, states that the committee supports the updated guidance by the OPM regarding whether past marijuana use affects an individual’s fitness or suitability for a federal position. The report also urged the federal government to reconsider and reevaluate policies that penalize workers for consuming cannabis products when they are legally allowed to do so in their home states. The report concluded that the employment policies should be updated to reflect changes to the laws regarding cannabis usage and how using state-legal cannabis can impact federal employment.

Although the House Appropriations Committee hasn’t made an explicit endorsement for loosening employment restrictions on cannabis use, it is asking the federal government to stop punishing employees for the inconsistencies between state and federal law. Reevaluating strict policies that penalize employees or applicants who admit to consuming cannabis in legal states to make them more lenient would be the first step.

Employees have been the most affected by the differing cannabis policies on the state and federal level, especially those working for federal agencies required to abide by federal law. Just a few months ago, stories emerged about how staffers in the Biden administration who had admitted to past cannabis use were being penalized in some form or other. Although press secretary Jeb Psaki said that no White House staffers had been fired for prior marijuana use, she hasn’t commented on whether they were suspended or placed in remote work programs.

When Congressional committees start voicing their concerns about the contradictions between federal and state marijuana laws, it goes a long way towards helping the cannabis industry, including companies working in the space, such as Hero Technologies Inc. (OTC: HENC), to send a stronger message that some degree of uniformity needs to be established in the way marijuana is regarded across the country.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

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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CannabisNewsBreaks – Hero Technologies Inc.’s (HENC) Portfolio Leverages Premium Cultivation and Retail Assets

Hero Technologies (OTC: HENC) appears to be ideally positioned in the growing U.S. and Michigan recreational and medical marijuana markets. In Michigan, the state’s sales hit a record $115.4 million in March, a more than twofold increase over March 2020. Meanwhile, the U.S. markets are on a trajectory to reach up to $45.9 billion in annual sales by 2025, or as much as twice the level of sales projected this year. “We are growers and cultivators, developers, builders, engineers, marketers, managers all here to serve Hero Technologies Inc. as we rapidly develop the largest vertically integrated cannabis company the world has ever known,” proclaims the company website, as quoted in a recent article. “And while that statement may seem lofty,” continues the article, “a closer look at the company reveals a portfolio that provides superior cultivation and dispensary assets.”

To view the full article, visit https://cnw.fm/kUQPR

About Hero Technologies Inc.

Hero Technologies is a cannabis company working toward a vertically integrated business model. The company owns a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and the cultivation of large flowering plants, creating increased harvest efficiencies. Hero Technologies’ strategic business plan includes cannabis genetic engineering, farmland for both medical and recreational cannabis cultivation, production licenses, distribution licenses, consumer packaging, and retail and dispensary operations that make the company a multistate operator (“MSO”). For more information about the company, visit www.HeroTechnologiesinc.com.

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

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420 with CNW — Legislative Failure Prompts Mexican Supreme Court to Take Steps

The Supreme Court of Mexico is taking steps towards putting an end to cannabis prohibition on a national scale after the legislature failed to enact the change in policy. This comes almost three years after the same court declared that the prohibition of personal cannabis cultivation and possession was unconstitutional and ordered legislators to enact a change. While legislators did advance legalization measures after this, no bill was approved.

In a press release issued earlier last week, #RegulationPorLaPas, a body that advocates for an end to marijuana prohibition, stated that the steps taken by the Supreme Court grew the responsibility of the legislature in this matter, noting that it was mandatory for the legislative process to be continued so that the work that had been put into the effort to date could help guarantee the rights of citizenship. Justice Norma Lucía Piña Hernández of the High Court also filed a declaration of unconstitutionality with regard to the country’s marijuana laws.

For marijuana prohibition to be overthrown, the ministers on the Supreme Court will have to vote in favor of approving the declaration of unconstitutionality. While some may view this move from the court as abrupt, it has been a long time coming.

The Supreme Court ruled that cannabis criminalization unconstitutionally infringed adults’ rights in October 2018 and set a preliminary deadline for legislators to change policies in a year. Thereafter, it extended the deadlines several more times, moving it from April 2020 to December 2020 then again to April 30 of this year.

Many had hoped that the measure would have been approved during this final session, as the Senate had already given its approval before the Chamber of Deputies also made some amendments then gave its approval, after which Senate committees also approved the revised measure.

Under the measure, individuals ages 18 and above would have been permitted to grow up to six plants for personal use; in addition, adult-aged individuals can also buy and possess no more than 28 grams of cannabis. Changes made to the regulations by the deputies included adjustments that govern licensing and commercial market policies and the cannabis market’s regulatory structure. Additionally, the deputies amended the measure so that, instead of establishing an independent regulatory body that would oversee implementation of the cannabis program and its licensing, that authority was given to the National Commission Against Addictions, which is already in existence.

Furthermore, changes also increased penalties for unauthorized possession of huge amounts of marijuana and added clauses that prevented forest land from being converted to cannabis growing areas.

It would be interesting to get a comment from established sector players in North America such as Hero Technologies Inc. (OTC: HENC) regarding the regional implications of the upcoming legalization of cannabis in Mexico.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

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420 with CNW — As States Legalize Cannabis, Federal Trafficking Cases Dwindel

A recent analysis conducted by the U.S. Sentencing Commission (“USSC”) has observed a decline in the number of federal cannabis trafficking cases from last year as more states legalize cannabis. The organization, which is an independent agency of the government’s judicial branch, conducted an analysis of the number of drug trafficking convictions and discovered that last year, there were 1,118 marijuana cases, a 67% decline from the numbers recorded since 2016.

Advocates of legalization maintain that the year-over-year decrease correlates with the increasing number of states that have enacted legalization, in addition to reflecting the deprioritization of the feds in pursuing marijuana cases. The USSC stated that generally, just over 16,500 convictions involved drugs last year. Of this number, cannabis cases made up about 7%. In addition, the USCC noted that 4% of the marijuana trafficking sentences were for over a decade, 16% were for a period between 5 to 10 years, while the majority — a whopping 80% — was five years or less.

This report by the USSC is the latest to provide data demonstrating that the state-level cannabis movement’s success corresponds to a decrease in federal marijuana cases. Advocates state that as more legalization laws are enacted, the market for illegal marijuana, which is usually brought in from Mexico, will dry up. This will in turn lead to fewer trafficking cases to be pursued by federal prosecutors.

A separate report that was released in December 2020 by Supreme Court Chief Justice John Roberts found that while cases which involve cannabis decreased by more than a quarter in 2019, federal prosecutions of crimes associated with drugs increased. Additionally, another study released in 2018 by the Cato Institute reported that state-level cannabis legalization had considerably weakened cannabis smuggling. Furthermore, data released by the Federal Bureau of Investigation late last year demonstrated that for the first time in four years, marijuana arrests had decreased on a national level.

These trends may likely continue this year, as the attorney general is of the opinion that the Department of Justice’s limited resources shouldn’t be used in low-level cannabis enforcement. In addition to this, more states are working on ending cannabis prohibition. Concurrently, congressional legislators are also working on legalizing the plant at the federal level.

Legislation to federally legalize marijuana, which was approved by the House in 2020, has been amended and re-introduced by Jerrold Nadler, chair of the Judiciary Committee. Additionally, Senate Majority Leader Chuck Schumer in April revealed that a bill to federally legalize cannabis would be introduced to the chamber in the near future.

If efforts to reform cannabis policy at the federal level succeed, sector players such as Hero Technologies Inc. (OTC: HENC) will have fewer hurdles to contend with in its day-to-day operations.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

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420 with CNW — AI Could Help Despite Shortage of Cannabis Data

Even though cannabis has been legal for either medical or recreational use in several states for years now, its status as a classified drug at the federal level has been a constant thorn in the state-legal cannabis industry’s side. Not only has this made navigating the business and financial world extremely challenging for cannabis businesses, but it has made any sort of research into cannabis nearly impossible.

With the young cannabis sector growing bigger every year, the lack of scientific data on marijuana poses a major problem, especially in regards to medical cannabis.

Cannabis produces more than 100 compounds called cannabinoids, but most of the existing data focuses on THC and CBD, the most abundant cannabinoids. Although most of the other cannabinoids are present in minute levels, they interact with each other in a phenomenon dubbed the “entourage effect,” affecting how each strain affects people. However, we have barely any data on these other substances of the entourage effect.

Cannabis may still be illegal at the federal level, but stakeholders and medical cannabis patients need this data now. As such, researchers from the University of Colorado Boulder cast their nets out for ways they could find reliable data on how the cannabis plant works. Their study, which was recently published in the journal “Plos One,” suggests that artificial intelligence (“AI”) could help fill the massive knowledge gap plaguing the nascent cannabis industry.

Diana Vergara, an evolutionary biologist at CU Boulder, says that although the industry treats cannabis varieties as if they were standardized, much like Girl Scout Cookies or Gorilla Glue, in actuality the smell, taste and overall effects are never standard. On top of minor cannabinoids, a wide variety of flavonoids and terpenes also impact the taste, aroma and overall effect of a cannabis plant. To get a full analysis of all the chemicals in the cannabis plant, Vergara teamed up with Brian Keagan, an assistant professor in CU Boulder’s Department of Information Science to analyze data from more than 17,600 cannabis flower cultivars.

Most of this data focused on THC and CBD, with only 153 samples containing data on the other seven main cannabinoids. Data on the minor cannabinoids was barely present, with some of them not even being measured. To figure out this missing data, the team employed machine learning, using statistical methods and algorithms to find hidden patterns in the data sets. They found that the assumption that strains with more THC have less CBD, and vice versa, was false, and that strain names are not reliable indicators of the chemical makeup or overall potency.

This is just a start, the researchers note, saying they need widespread industry cooperation if they are to use this technology to fill the sector’s knowledge gaps. Data from more cultivars, however insufficient it is, will help the researchers use AI technology to figure out chemical interactions and how they can be harnessed for human benefit. Among other things, retailers would be able to list full chemical profiles on product labels, and it would lead to a much more reliable strain-naming system.

Cannabis companies such as Hero Technologies Inc. (OTC: HENC), which are looking to genetically engineer cannabis cultivars, could massively benefit from the deployment of AI in their operations.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

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420 with CNW — Federal Report Says Youth Cannabis Use Stable Despite State-Level Legalization

Most opponents of cannabis reform had one argument against pro-cannabis legislation: passing state-level recreational cannabis bills would inevitably lead to increased use among the youth. They argued that marijuana was a gateway drug and that by making the controversial plant more accessible, states would see their youth use marijuana and other “hard drugs” at much higher rates. However, most studies have found the situation on the ground to be entirely different, with rates of youth use in states with recreational cannabis markets remaining the same and, in some cases, even going down.

A recent federal report from the U.S. Department of Education’s National Center for Education Statistics (“NCES”) corroborates what previous studies have concluded. Marijuana legalization at the state level has not led to increased cannabis use among the country’s youth. To arrive at this conclusion, NCES analyzed youth surveys of high school students that were conducted from 2009, long before any state had launched recreational cannabis sales, to 2019. The report found that among the percentage of teenagers in grades 9-12 who reported using cannabis at least once in the past 30 days, there was no measurable difference from 2009 to 2019.

The data, which was sourced from the Youth Risk Behavior Surveillance System, showed that although 16 states have legalized recreational cannabis within the past decade, youth access to the drug remained stable. There have been no major changes in the percentage of teenagers who admit that they have been sold, gifted or offered illicit drugs on school grounds in the preceding 30 days. When the data is compared to the timeline of legalization, things get even more interesting.

Back in 2009 when there were no adult-use markets in the country, 21% of high school students reported having consumed cannabis within the past 30 days. A decade later, when the United States had nearly a dozen state-level recreational cannabis markets, 22% of high schoolers admitted to recently consuming cannabis. The highest reported rate of cannabis use among the youth was in 2011, and at that point, no state had legalized recreational cannabis. Consequently, the NCES concluded, there was no “measurable difference: in the percentage of students who said they had access to illicit drugs on school grounds between 2009 and 2019.

With most states that allow recreational cannabis placing age limits (usually 21 years) and requiring customers to provide IDs before purchasing cannabis, youth may have even reduced access to cannabis than they did before adult-use cannabis was legal. A lot of misinformation has been circulating about marijuana, and such federal reports help industry players such as Hero Technologies Inc. (OTC: HENC) to have one less myth to debunk.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

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420 with CNW — Missouri Legislators Advance Medical Cannabis Tax Deduction Bill to Governor’s Desk

In 2018, voters in the state of Missouri legalized medical cannabis. Despite this, the sale, distribution and cultivation of cannabis is still illegal in the state under federal law. This has created some challenges for the infant industry. For instance, cannabis companies in the state aren’t allowed to deduct business expenses on their taxes, despite being legal businesses.

During a Senate hearing held earlier in this year, Senator Denny Hoskins raised the issue, noting that cannabis business owners who weren’t allowed to deduct business expenses on their tax returns had to pay significantly higher taxes.

In the legislative session that recently ended, legislators in the state of Missouri approved a bill that will allow medical cannabis companies to deduct business expenses on their tax returns. The legislation, which was approved with almost no opposition, has been advanced to Gov. Mike Parson’s desk.

This bill will permit medical cannabis businesses that are authorized under the state’s constitution to claim income tax deductions in any amount equal to their expenditures. It should be noted, however, that a provision in the tax code prevents deductions for expenses that are sustained while operating any business or trade that is made up of or involves the trafficking of controlled substances.

While the federal law is yet to be altered, this legislation will ease some of the burden that cannabis business owners in the state bear. Under the federal law classification of substances, cannabis is categorized as a Schedule I controlled substance. This clause is used by the Internal Revenue Service (“IRS”) to prevent marijuana businesses from deducting business expenses on their returns.

Missouri Medical Cannabis Trade Association executive director Andrew Mullins noted that by making this change, legislators in the state were putting medical marijuana businesses on a level playing field with other small businesses in the state in terms of taxes.

CPA David Smith, who works with various medical cannabis companies, noted that the current law could mean an effective tax rate for businesses of 70% or more, adding that some companies may be subject to income taxes, despite operating at a loss.

Hippos Cannabis CEO Nicholas Rinella explained that this was because, without the deductions, companies had to pay taxes on gross profit instead of gross income. He added that sometimes, expenses could outweigh the income of a business, particularly if it was just starting out. Rinella also noted that this taxation level limited the industry’s ability to reinvest in communities, create employment opportunities and serve patients.

This change in Missouri is a much-needed one in all jurisdictions where cannabis companies operate. As those tax deductions are rolled out, companies such as Hero Technologies Inc. (OTC: HENC) will be at par with other licensed businesses.

NOTE TO INVESTORS: The latest news and updates relating to Hero Technologies Inc. (OTC: HENC) are available in the company’s newsroom at https://cnw.fm/HENC

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420 with CNW — Minnesota Legislators Vote to Expand State Medical Marijuana Program

Legislators in the state of Minnesota recently voted to allow the expansion of its medical marijuana program, which will permit patients to smoke the dried flower.

The state of Minnesota has allowed the use of medical marijuana since May 2014 when then-Gov. Mark Dayton signed into law a legislation that legalized cannabis for the treatment of several medical ailments, including Crohn’s disease, ALS, Tourette’s syndrome, glaucoma, HIV/AIDS, epilepsy and cancer. Despite this, it only permitted the use of the plant in pill, oil and liquid forms.

Medical marijuana activist Patrick McClellan stated that this latest move was an important change. He noted that it would also make it easier for him to afford the medication, as the cost of liquid marijuana was on the higher side. McClellan suffers from a rare form of muscular dystrophy and uses marijuana to manage it.

Maren Schroeder, who also uses medical marijuana, revealed that she had to part with $250 every month for medical marijuana and noted that she was excited to have the smokable option. She explained that this was because she could obtain the plant legally, adding that this meant that the product she would consume had been tested in labs and wasn’t contaminated with herbicides, pesticides or mold.

The state’s allowing the use of the unprocessed marijuana plant is also expected to decrease the cost for patients in the medical marijuana program, which will make the product more accessible.

Senate Health and Human Services Committee chair Sen. Michelle Benson asserted that the change would help many patients. During a debate in the Senate earlier this week, Benson had explained that the committee’s objective was to make the plant available to individuals with a medical need who couldn’t afford it.

The medical marijuana law is scheduled to take effect once a system for testing the dried raw marijuana from the existing manufacturers in the state has been established, or by March 1 next year.

Ryan Winkler, the DFL House majority leader who backed the full-legalization effort, heralded the medical marijuana change. He stated that by allowing the use of dried raw marijuana, which was cheaper to produce, the cost of existing products would decrease.

However, not everyone seemed to be on board with the idea. For instance, Rep. Tim Miller opposed the medical marijuana provision in the House, claiming that the move wasn’t entirely honest and hadn’t gone through the right channels.

As the state’s medical cannabis program expands, patients and the entire state will benefit in the same way as the states that have enacted laws deemed relatively investment-friendly for operators such as Hero Technologies Inc. (OTC: HENC). The more operators a state has, the more competitively priced cannabis products are likely to be.

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420 with CNW — NIDA Boss Asks for Reconsideration of Marijuana Criminalization

Decades after the United States began a campaign to hamper drug use in the country, it is pretty clear that the war on drugs has been a failure. Intense policing coupled with harsh sentencing may have worked on other crimes, but in the case of cannabis, this approach only ensured that certain communities were punished harshly for cannabis-related crimes while others weren’t.

The nationwide campaign to decriminalize drug use may have gained a major supporter after the head of a top federal drug agency criticized America’s policy of treating drug use as a criminal problem rather than a public health issue.

The director of the National Institute on Drug Abuse (“NIDA”) Nora Volkov has in the past made it clear that she isn’t a big supporter of the country’s anti-drug laws. This time, she wrote an essay, titled “Addiction Should Be Treated, Not Penalized,” for the “Journal Health Affairs” where she argued that the time has come for the U.S. to stop handing out long sentences to individuals with low-level drug offenses. Although Volkov doesn’t explicitly endorse decriminalization, she made it clear that the current policies don’t work, especially for communities of color.

Most studies have found that Black and Latino communities are much more likely to be arrested for marijuana-related offenses compared to white communities despite similar usage rates. The drug policies that are currently in place have led to disproportionate enforcement against communities of color, Volkov says, and rather than hamper drug use, these policies can even increase the risk of overdose deaths. Punishment, especially the kind of punishment proffered in American courts, does not reduce the occurrence of substance use disorders, she writes. Rather, it increases an individual’s risk of experiencing a drug overdose once they are released from prison.

Despite the fact that we have decades’ worth of evidence proving that addiction is a medical problem not a criminal matter, the U.S. continues to criminalize drug addiction. In the interest of both “health equity and population well-being,” the U.S. must approach drug addiction as a public health issue,” Volkov notes. Not only will this allow people who are afflicted with substance use disorders to get the help they need, but it will ensure that communities of color aren’t the victim of disproportionate enforcement any anymore. Volkov writes that the country desperately needs to research public health-based alternatives such as drug courts, diversion programs and legislation decriminalizing drug possession.

In the meantime, she says, NIDA will double its focus on addressing substance use and addiction in minority communities.

If the voices of such high-ranking federal agency officials are heeded and cannabis policy reform is implemented at the federal level, the regulatory landscape within which industry actors such as Hero Technologies Inc. (OTC: HENC) operate will become much more clear.

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