420 with CNW – Georgia’s Medical Marijuana Program Kicks into High Gear

Georgia’s key leaders have launched a program providing the state’s 15,000 registered patients with medical marijuana seven months after the Governor approved the program.

Licensing for companies seeking to grow and sell medical marijuana oil would be granted by a seven-member commission, which was appointed by Governor Kemp, House Speaker David Ralston, and Lt. Governor Geoff Duncan.

According to Georgia state laws, marijuana oil can be used to treat Parkinson’s disease, severe seizures, and terminal cancer as well as other ailments.

In 2019, the state of Georgia enacted a law called Georgia’s Hope Act, which allowed the commission to develop a medical marijuana distribution system across the state and establish testing regulations. It also issued licenses to businesses seeking to sell cannabis oil with low levels of THC.

Governor Kemp said that the Act provides Georgia residents with a means of treating chronic and debilitating illnesses.

The Georgia Access to Medical Marijuana Commission (GAMM) is made up of three doctors, chief of police, a health policy professor, the president of the Board of Pharmacy in Georgia, and a small business owner. Dr. Edwards is the principal surgeon for the Atlanta Neurosurgical & Spine Institute and the chairman of GAMM.

It will take a while before the rules are passed, permits are granted, and cultivation and sale of medical marijuana products begins. Thrower, who suffers from muscle spasms and chronic pain, said that patients have waited for a long time and cannot wait any longer.

For two and a half years since moving from Illinois, Thrower has been receiving medical marijuana through illegal channels to manage her symptoms. She noted that she wants legal and consistent means of getting medical marijuana.

Thrower volunteers with a group that helps people with disabilities. She said that the government should consider the needs of the patients when implementing the medical marijuana program.

The state vetted more than 50 candidates before naming the members of the commission. The medical marijuana laws on appointing the members of the commission were stringent. One of the rules stipulated that the members of the commission are not supposed to harbor a monetary interest in the marijuana industry during the four-year appointment period and five years after their period has elapsed.

A former state representative Allen Peake said that he expected the commission to include parents with patients suffering from the qualifying conditions.

According to Georgia’s medical marijuana bill, licenses for cultivation would be issued for up to 9 acres of indoor growing space.

The commission will issue medical marijuana cultivation licenses to two large corporations and four smaller companies. Also, the University of Georgia and Fort Valley State University will submit applications for the production of cannabis oil.

The commission would allow the sale of marijuana with less than 5% THC. Compared to CBD oil which has 0.3% of THC, medical marijuana oil has more THC at 5%.

Experts opine that cannabis industry actors like The Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF) and HTC Extraction Systems (TSX.V: HTC) hope that now that a commission is in place, patients in the state will not wait very long to start accessing medical marijuana for their symptoms.

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.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

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

Do you have a questions or are you interested in working with CNW420? Ask our Editor

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

CNW420 is part of the InvestorBrandNetwork.

CBDNewsBreaks – HTC Extraction Systems (TSX.V: HTC) Positioned to Capitalize on Market Forecasted to Reach $22 Billion by 2022

As the CBD market continues to swell, HTC Extraction Systems (TSX.V: HTC) has strategically positioned itself for success with its proprietary extraction technology. An article discussing the company reads, “The U.S. CBD market alone will soar from $591 million in 2018 to a massive $22 billion by 2022, growing at a CAGR of 147% (http://cnw.fm/SD6oE). According to reports, this exponential growth will provide excellent opportunities for CBD extraction companies — a player that isn’t spoken of as often as other industry entities are. . . . Handling the extraction of CBD from hemp biomass is much cheaper and a more effective process than extraction from cannabis. Extraction service providers that are already well established can easily take on new clients, signing supply agreements that last for several years. Hence, this market segment is considered quite promising and crucial for the overall development of the industry.”

To view the full article, visit http://cnw.fm/cSr5n

About HTC Extraction Systems

HTC Extraction Systems has developed and optimized proprietary technologies designed for biomass extraction, distillation and purification of ethanol and ethanol-based solvents used for the hemp-biomass and cannabidiol (“CBD”) industry as well as gas and liquid extraction. HTC’s extraction and purification systems are engineered to large scale to reduce capital and operating costs while delivering superior performance measured by reduced energy usage, lowered emissions and improved quality of the product produced. For more information, visit the company’s website at www.HTCExtraction.com.

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

About CBDWire

CBDWire (CBDW) is a specialized information provider focused on (1) reporting CBD-related news and updates, (2) releasing CBDNewsBreaks crafted to keep investors abreast of the latest and greatest in the CBD market, (3) refining and enhancing corporate press releases, (4) delivering end-to-end distribution and social media services to client-partners and (5) constructing effective corporate communication solutions based on the unique requirements of CBD companies. CBDW is exclusively positioned in the burgeoning CBD sector with a proven team of journalists and researchers working to deliver high quality content to an expansive target audience of investors, consumers and industry news outlets. Our dissemination network of over 5,000 downstream distribution points allows us to deliver unparalleled reach, visibility and recognition to companies operating in both cannabidiol and the wider cannabis space. CBDWire (CBDW) is where CBD news, content and information converge.

To receive instant SMS alerts, text CBDWire to 21000 (U.S. Mobile Phones Only)

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

Please see full terms of use and disclaimers on the CBDWire website applicable to all content provided by CBDW, wherever published or re-published: https://CBDWire.com/Disclaimer

Do you have a questions or are you interested in working with CNW? Ask Our Editor

CBDWire (CBDW)
Denver, Colorado
www.CBDWire.com
303.498.7722 Office
Editor@CBDWire.com

CBDWire is part of the InvestorBrandNetwork.

420 with CNW – University of Texas Scientists Develop Rapid Marijuana Test

In the U.S., marijuana is one of the most used federally illegal drugs. There are no federal regulations governing marijuana use, leaving law enforcement with the challenge of identifying impaired driving.

A team of researchers at the University of Texas in Dallas has developed a biosensor that uses saliva to detect the levels of THC on a subject in one minute.

Their study was published in Nature Scientific Reports in September. The biosensor device will help in the roadside assessment of THC consumption. It works the same way as those testing for alcohol-impaired driving.

Dr. Shalini Prasad, who is one of the researchers and an interim department head of bioengineering in the Erik Johnson School of Engineering and Computer Science, said that even though marijuana is not legal in Texas, there are conversations geared towards that end. She furthers says that there are no devices that can accurately determine the levels of THC in a subject.

THC is the active component of marijuana that has the potential to affect memory, mobility, focus, coordination, decision-making, sensory and time perception of the consumers.

According to Dr. Prasad, marijuana effects vary from person to person and determining how it affects the population as a whole is much more complicated than it is for alcohol. However, there are several studies on the metabolism of marijuana.

Previously the team had developed a biosensor that uses sweat to determine the level of glucose in the body. But, it takes too long for marijuana to leave the body through sweat, thus, testing sweat for marijuana is not suitable for ensuring road safety. Testing impaired driving through blood tests is also time-consuming, invasive, and requires medical expertise, which not all law enforcement members are equipped with.

Prasad further said that time is crucial when developing technology meant for public-assessment. The team set out to develop the device after noticing a gap when they reviewed the existing technology. She also explained that the faster the test is conducted, the better and the easier it is to ensure public safety.

Using saliva is the best alternative as it is not invasive, and it does not require much time to get accurate results. Just get a swab on the cheek, and you have your testing sample. Some kits can even be used at home, but they require more caution when handling them, said Prasad.

The biosensor uses the electrochemical activities of the molecules to determine THC concentration. However, the method still has its complications, such as the presence of other molecules in saliva, which makes it difficult for the biosensor to pick THC metabolites. Another complication is acidic saliva, as it tends to camouflage electrochemical signals, but they overcame this hurdle by designing a lubricant that amplifies the metabolite signal.

The team worked for a period of three years, on and off to develop the saliva biosensor, which has a 95% accuracy. The team has hopes of partnering with researchers working closely with marijuana metabolism to perfect their device.

Experts suggest that the marijuana industry, including actors like Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and HTC Extraction Systems (TSX.V: HTC), may still have strong reservations about marijuana impairment test kits since there is no agreement regarding the standards upon which someone can be regarded as impaired.

About CNW420

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

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

Do you have a questions or are you interested in working with CNW420? Ask our Editor

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

CBDNewsBreaks – HTC Extraction Systems (TSX.V: HTC) Advancing Strategy to Become Leading Extraction, Distillation, Refining Operator

HTC Extraction Systems (TSX.V: HTC) is utilizing its ethanol-based distillation experience to establish itself as one of the largest extraction, distillation and refining operators in North America. An article discussing the company reads, “HTC has built a 19,000-square-foot extraction facility in Port Lajord, Saskatchewan, near the metropolitan Regina commerce center. The facility will provide the commissioning for newly installed biomass processing, extraction, distillation and refining equipment, utilizing the corporation’s DeltaSolv(TM) technologies and Delta Purification(R) systems. . . . The facility will also house laboratory quality control and testing operations, as well as onsite administration offices. HTC is also engaged in preliminary due diligence investigations that would expand its operations into the United States, where the company seeks to replicate its model of using hemp biomass tolling contracts with producers and other providers to begin extraction for the 2020 hemp crop growing year in an as-yet-to-be-determined location.”

To view the full article, visit http://cnw.fm/R8fwY

About HTC Extraction Systems

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

About CBDWire

To receive instant SMS alerts, text CBDWire to 21000 (U.S. Mobile Phones Only)

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

Please see full terms of use and disclaimers on the CBDWire website applicable to all content provided by CBDW, wherever published or re-published: https://CBDWire.com/Disclaimer

Do you have a questions or are you interested in working with CNW? Ask Our Editor

CBDWire (CBDW)
Denver, Colorado
www.CBDWire.com
303.498.7722 Office
Editor@CBDWire.com

HempNewsBreaks – HTC Extraction Systems (TSX.V: HTC) Provides Recent Activities Update

HTC Extraction Systems (TSX.V: HTC), a hemp-biomass processing entity, today announced that it has closed its bought deal private placement resulting in gross proceeds of $10 million. In addition, the company reported the completion of its 19,000-square-foot facility that will house quality assurance testing and product development laboratories and extraction and formulation processing. The facility is presently undergoing the interior completion to qualify it as GMP Euro compliant and is anticipated to be one of the highest performing and top product quality extraction and refining facilities in Canada. HTC has also completed the construction of its 27,000-square-foot hemp biomass processing and storage facility. The company reported the purchase of extraction and formulation equipment anticipated to begin arriving in December 2019. The equipment is slated to be used for hemp biomass processing, extraction, formulation and refining at its facility located at Port Lajord. Additionally, the company reported that it is in late stage negotiations for the acquisition of a United States based, fully licensed, hemp processing, extraction, formulation and distribution operation. HTC is also in late stage negotiations for Identity Preserved Grown (“IPGrow(TM)”) hemp biomass tolling contracts with producers and providers in the United States for the 2020 hemp production growing year, including a 60,000-acre recognized Canadian farm leader who is a significant IPGrow(TM) hemp biomass producer. The company intends to enter a tolling contract with this producer for the 2019, 2020 and 2021 crop years. This contract is anticipated to represent production from a single producer of approximately 4,300 acres from the 2019 production crop year and up to 25,000 acres for the 2020 and 2021 production crop years. In addition, HTC intends to leverage its relationship with its related entity, Purely Canada Foods(TM), to provide sales and distribution for its Ingredient CBD and cannabinoid market under the brand of Purely Canada Hemp(TM), Purely Canada CBD(TM), Purely Canada CBG(TM), and Purely Canada Cannabinoids(TM).

To view the full press release, visit http://cnw.fm/l9z8E

About HTC Extraction Systems

HTC Extraction Systems has developed and optimized proprietary technologies designed for biomass extraction, distillation and purification of ethanol and ethanol-based solvents used for the hemp-biomass and cannabidiol (“CBD”) industry, as well as gas and liquid extraction. HTC’s extraction and purification systems are engineered to large scale to reduce capital and operating costs while delivering superior performance measured by reduced energy usage, lowered emissions and improved quality of the product produced. For more information, visit the company’s website at www.HTCExtraction.com.

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

About HempWireNews

HempWireNews (HWN) is a dedicated information provider focused on (1) aggregating hemp-related news, (2) issuing HempNewsBreaks designed to update investors on the latest developments in the hemp market, (3) enhancing corporate news releases, (4) providing full-service distribution and social media offerings to public and private client-partners and (5) designing and implementing all-inclusive corporate communication solutions. HNW is strategically positioned within the rapidly expanding hemp sector with a team of journalists working to help a growing roster of public and private companies reach a wide audience of investors, consumers and members of the media. We leverage a vast network of more than 5,000 key syndication outlets to deliver unparalleled visibility, recognition and content to the hemp industry. HempWireNews (HWN) is where HEMP news, content and information converge.

To receive instant SMS alerts, text HEMPWIRE to 21000 (U.S. Mobile Phones Only)

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

Please see full terms of use and disclaimers on the HempWireNews website applicable to all content provided by HNW, wherever published or re-published: https://www.HempWireNews.com/Disclaimer

Do you have a questions or are you interested in working with HWN? Ask our Editor

HempWireNews (HWN)
Denver, Colorado
www.HempWireNews.com
303.498.7722 Office
Editor@HempWire.net

420 with CNW – Marijuana Legalization Support Undiminished by Vaping Injuries, Gallup Poll Finds

According to a survey released by Gallop on Wednesday, two-thirds (66%) of all Americans are in favor of legalizing marijuana. This shows that the support for marijuana policy reforms has not dwindled in the face of the vaping-related injuries outbreak despite the opponents investing their efforts to pin this on marijuana legalization.

Gallup has been polling on marijuana legalization since 1969, and in 2005 the support was at 36%.

In the analysis of the latest figures, Gallup’s Jeffrey M. Jones wrote that the states’ and public opinion have increasing become pro-marijuana.

In the U.S, 11 states have legalized marijuana for recreational use while others plans on doing it during the 2020 legislative sessions. Others are opting to refer the matter to voters during the coming elections.

Jones further wrote that when supporters of marijuana legalization are based on gender, education, income, region, urban or rural, the difference is insignificant because 60% to 70% of them are in favor of legalization. However, the difference is significant across party lines with 51% of Republicans and 76% of Democrats in favor, while 68% of independents also favor the reforms.

All key Democrats except former Vice President Joe Biden are in support of marijuana legalization.

Although it is still unclear if President Donald Trump prefers federal legalization laws, he seems to be for the states to set their own marijuana policies, said Gallup.

Trump has openly said that if a bill is introduced paving way for states to be allowed to enact their cannabis laws without federal interference, he will sign it into law.

According to the new survey by Gallup, the majority of Americans irrespective of the age (as long as you are under 65) support legalization while 49% are opposed.

The overwhelming support of 81% for marijuana legalization is by Americans under the age of 30.

Gallup found that the majority of racial and ethnic groups are in favor of legalization; however, less support is noticed in the Hispanics.

Gallup’s recent survey, which included 1,526 adults, was conducted amidst daily news and health bulletins of hundreds of people suffering from a lung-related injuries linked to vaping cannabis products.

Rep. Andy Harris and Smart Approach to Marijuana, which is a prohibitionist organization, argue that the states and the advocates for legalization should slow down on the push for the reforms in the face of the recent outbreaks.

Only a handful of people affected got the vaping products from licensed dispensaries; most of those affected purchased from the illegal market.

Despite the several warnings and the negative press, the majority of the Americans are still in support of legalization and regulated sales of marijuana, said Justin Strekal, the NORML Political Director. He further added that it is imperative to end prohibition and adopt best practices for the regulatory authorities to oversee a thriving consumer marketplace.

In conclusion, Gallup wrote that there is a probability that the support for legalization will continue to expand in the years ahead due to generational differences.

Cannabis industry watchers believe that companies like Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and HTC Extraction Systems (TSX.V: HTC) agree with Gallup and see support for legalization soaring in the coming months.

About CNW420

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

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

Do you have a questions or are you interested in working with CNW420? Ask our Editor

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

HempNewsBreaks – HTC Extraction Systems (TSX.V: HTC) Poised to Profit as CBD, Hemp Demand Rises

HTC Extraction Systems (TSX.V: HTC), a hemp-biomass processing entity, is set to profit as hemp-biomass production is anticipated to continue to increase due to legislative changes and the growing demand for CBD products. An article discussing the company reads, “The company has signed numerous strategic agreements that maximize its hemp-biomass processing potential. Recently, HTC announced its entry into an identity preserved (‘IDP’) hemp-biomass-production tolling agreement. The agreement covers 4,200 to 5,000 acres of hemp in Saskatchewan, Canada. Based on the agreement, HTC will process five million kilograms of IDP hemp-biomass to produce full-spectrum oil and/or pure-CBD isolate.”

To view the full article, visit http://cnw.fm/HvAU9

About HTC Extraction Systems

HTC Extraction Systems has developed and optimized proprietary technologies designed for biomass extraction, distillation and purification of ethanol and ethanol-based solvents used for the hemp-biomass and cannabidiol (“CBD”) industry, as well as gas and liquid extraction. HTC’s extraction and purification systems are engineered to large scale to reduce capital and operating costs while delivering superior performance measured by reduced energy usage, lowered emissions and improved quality of the product produced. For more information, visit the company’s website at www.HTCExtraction.com.

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

About HempWireNews

To receive instant SMS alerts, text HEMPWIRE to 21000 (U.S. Mobile Phones Only)

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

Please see full terms of use and disclaimers on the HempWireNews website applicable to all content provided by HNW, wherever published or re-published: https://www.HempWireNews.com/Disclaimer

Do you have a questions or are you interested in working with HWN? Ask our Editor

HempWireNews (HWN)
Denver, Colorado
www.HempWireNews.com
303.498.7722 Office
Editor@HempWire.net

CannabisNewsBreaks – HTC Extraction Systems (TSX.V: HTC) Closes Bought Deal Private Placement

HTC Extraction Systems (TSX.V: HTC) today announced the closing of its previously announced private placement financing of 25,000,000 units of the company, each at a price of $0.40. The offering resulted in gross proceeds of $10 million to the company, from which it intends to use net proceeds for the purchase of extraction, purification and refining equipment and general working capital purposes. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “warrant”). Each warrant will be exercisable to acquire one common share (a “warrant share”) at an exercise price of $0.70 per warrant share for a period of 36 months from the closing of the offering, subject to acceleration provisions.

To view the full press release, visit http://cnw.fm/9kkG9

About HTC Extraction Systems

HTC Extraction Systems has developed and optimized proprietary technologies designed for biomass extraction, distillation and purification of ethanol and ethanol-based solvents used for the hemp biomass and cannabidiol (“CBD”) industry, as well as gas and liquid extraction. HTC’s extraction & purification systems are engineered to large-scale to reduce capital and operating costs while delivering superior performance measured by reduced energy usage, lowered emissions and improved quality of the product produced. For more information, visit the company’s website at www.HTCExtraction.com.

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

About CanadianCannabisWire

CanadianCannabisWire (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.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

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

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

Do you have a questions or are you interested in working with CNW? Ask our Editor

CanadianCannabisWire (CNW)
Toronto, Ontario
www.CanadianCannabisWire.com
905.674.5977 Office
Editor@CanadianCannabisWire.com

CannabisNewsBreaks – HTC Extraction Systems (TSX.V: HTC) Announces Repricing of “Bought Deal” Brokered Private Placement

HTC Extraction Systems (TSX.V: HTC) today announced that it has repriced its “bought deal” brokered private placement initially announced on July 3, 2019 and amended on September 27, 2019. According to the update, the repricing of the private placement more accurately reflects the current market price of the company’s common shares. Under the terms of the offering, Canaccord Genuity Corp. will act as sole bookrunner and lead underwriter, on behalf of a syndicate of underwriters, and purchase, on a “bought deal” private placement basis, 25,000,000 units of the company, each at a price of C$0.40, for aggregate gross proceeds of C$10,000,000.

To view the full press release, visit http://cnw.fm/PuWf4

About HTC Extraction Systems

HTC Extraction Systems has developed and optimized proprietary technologies designed for biomass extraction, distillation and purification of ethanol and ethanol-based solvents used for the hemp biomass and cannabidiol (“CBD”) industry, as well as gas and liquid extraction. HTC’s extraction & purification systems are engineered to large-scale to reduce capital and operating costs while delivering superior performance measured by reduced energy usage, lowered emissions and improved quality of the product produced. For more information, visit the company’s website at www.HTCExtraction.com.

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

About CanadianCannabisWire

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

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

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

Do you have a questions or are you interested in working with CNW? Ask our Editor

CanadianCannabisWire (CNW)
Toronto, Ontario
www.CanadianCannabisWire.com
905.674.5977 Office
Editor@CanadianCannabisWire.com

420 with CNW – Federal Report Shows More Banks Are Accepting Marijuana Businesses

According to a federal report, there is an increase in the number of banks and credit unions accepting to service marijuana businesses in the third quarter of 2019.

In the first quarter of 2019, there were 493 banks and 140 credit unions accepting marijuana businesses. In the second quarter, the number of banks and credit unions increased to 553 and 162, respectively. They submitted documents showing that they will be conducting business with legal marijuana businesses.

Accepting to conduct business with marijuana companies is viewed as a risky move in the financial sector because marijuana remains a federally controlled substance. However, the increase shows that banks are willing to take the risk as the lawmakers push to solve the issue of marijuana banking.

The Secure and Fair Enforcement Banking Act (SAFE) was approved before the end of the second quarter of 2019 by the House Financial Services Committee. The bill serves to protect financial institutions from being penalized for servicing marijuana businesses.

The bill was voted in by the whole House, therefore sending it directly to the Senate. Providing safe and secure banking services to the marijuana businesses will help mitigate risks associated with operating on a cash-only basis and promote transparency.

Hemp and its derivatives, which were legalized under the Farm Bill in 2018, have been denied access to services by the banks. However, Congressman Perlmutter is focused on ensuring that financial services are extended to hemp and CBD businesses. While in the House last month, the congressman urged the Treasury Department to provide legal hemp and CBD businesses with guidance.

In August, The Financial Crimes Enforcement Network released its latest update on the analysis of suspicious activity reports (SARs) that are filed per the 2014 cannabis banking guidance by the financial institutions under the Obama administration. The report showed that as of the second quarter of 2019, there was a total of 87,249 SARs related to marijuana businesses received by FinCEN.

The SARs were broken down into different types by FinCEN. 67,378 of the SARs were described as Marijuana limited, which referred to marijuana businesses that met the agency standards by complying with the laws of the state.

6,900 were referred to as marijuana priority, which means that the companies were not fully compliant with the state laws; thus, they would be investigated. Twenty-two thousand of the SARs were termed as marijuana termination, which meant that the businesses had violated at least one state regulation, which led to the termination of its relationship with the bank.

Analysts believe that marijuana companies like Green Hygienics Holdings Inc. (OTCQB: GRYN) and HTC Extraction Systems (TSX.V: HTC) hope that the Senate passes the SAFE Act so that this banking issue is solved once and for all.

About CNW420

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

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

Do you have a questions or are you interested in working with CNW420? Ask our Editor

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