420 with CNW — Missouri Supreme Court Says Local Authorities Shouldn’t Stack Cannabis Sales Taxes

Missouri’s Supreme Court has ruled that counties and cities cannot each apply a separate sales tax on recreational cannabis.

The court stated that under the constitutional amendment passed in 2022, only one local authority may collect a 3% sales tax on cannabis. The local authority can either be a city, town, or village in an incorporated area or a county in unincorporated regions—not both.

The justices pointed out that the amendment’s language ties the term “local government” to the location of the dispensary. That means if a cannabis store is inside a city’s limits, only that city can apply the 3% tax, not the county too.

The decision was based on a case involving Robust Missouri 3 LLC, a dispensary located in Florissant. Customers were being taxed nearly 21%, including 3% from both St. Louis County and Florissant. The court’s ruling invalidates the county’s tax in this situation and affects more than 70 other locations across Missouri where both city and county governments have been collecting a marijuana sales tax.

Judge Zel Fischer disagreed with the majority, arguing that the amendment allows for both cities and counties to apply the tax—even within incorporated areas. He wrote that interpreting “and” to mean “or” leads to an unreasonable outcome and ignores the plain wording of the law. In his view, counties should be allowed to collect taxes within their borders, whether incorporated or not.

Previously, a Missouri appeals court sided with the dispensary, stating that the amendment’s language is clear and doesn’t allow for double taxation by both city and county governments. That decision overturned an earlier ruling that had permitted both levels of government to impose their own taxes on cannabis.

The Supreme Court’s decision also settles a related case, which had been on hold until this ruling. That case involved a Buchanan County judge who had ruled in favor of stacked taxes as well.

Andrew Mullins, who leads the Missouri Cannabis Trade Association, praised the ruling. He said the group filed the legal challenge shortly after dual taxes started appearing in 2023, aiming to defend consumers from unnecessary costs. Mullins estimated that the decision will save buyers around $3 million each month.

He added that cannabis customers in Missouri are already contributing significantly through taxes and that the ruling helps keep prices reasonable while maintaining the program’s strong reputation for quality and access.

As unnecessary double taxes are halted, the marijuana industry could deepen its reach and create opportunities for more entrepreneurs, such as those starting businesses similar to Innovative Industrial Properties Inc. (NYSE: IIPR) that serve cannabis firms without directly engaging in trading marijuana products.

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

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420 with CNW — Marijuana Firms That Have Weathered the Recent Storms Could Thrive Over the Coming Years

Over the last five years, the marijuana sector has gone through a major shake-up from excessive spending to tough tax burdens and complicated regulations. With all these challenges, a sort of natural selection has taken place: only the most disciplined and resilient companies have survived.

The companies that remain today are generally led by experienced teams who’ve learned to operate with caution and efficiency. The recent downturn has helped reset market expectations, leading to more reasonable valuations.

Unlike previous market peaks in 2019 and 2021, where investors chased rapid expansion and aggressive land grabs, today’s environment favors steady earnings and strong financials. Investors now prioritize capital preservation and want to back businesses that are built to last.

For savvy investors, this presents a window to identify companies with solid leadership, real assets, and operational stability. These are the firms most likely to generate strong, risk-adjusted returns as the market matures.

With valuations down and sellers open to creative deal terms, now could be an ideal time to invest in businesses prepared for the next phase of growth.

Finding the right opportunities in cannabis is still a moving target. This year, investors are showing interest in companies that offer one or more of these advantages: strong consumer brands, distressed assets free from past liabilities, owned real estate or infrastructure, niche market access with little competition, durable market share gains through smart acquisitions, or innovative structures designed to work around federal limitations.

Deals that offer solid downside protection while leaving room for upside are especially appealing. Investors are leaning into structures like convertible notes that offer safety today with equity upside later, preferred equity that ensures priority in returns, and revenue-sharing models that deliver returns through operations rather than relying on uncertain exits.

Some of the most interesting strategies emerging include employee stock ownership plans (ESOPs), which provide liquidity for founders and employees while offering tax perks, and mergers with entities holding large tax losses, which can improve after-tax income when paired with profitable operators.

Policy winds may be shifting as well. For the first time in years, federal cannabis reform seems to be gaining momentum. President Donald Trump has come out in favor of reclassifying cannabis and advancing banking reforms. He’s publicly spoken about the need for more sensible policies that support small businesses and challenge the black market.

If reforms like SAFE Banking or rescheduling move forward, it could spark a return of institutional capital and public market access. That would be a major shift. Over the next one to two years, investors may have a rare chance to get in early on the next wave of cannabis success stories—companies that have already proven their grit and are ready to grow in a more supportive environment.

As that new phase of growth gains steam, plenty of opportunities could be created for companies like Innovative Industrial Properties Inc. (NYSE: IIPR) that address some of the needs of plant-touching companies.

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420 with CNW — Marijuana Firms That Have Weathered the Recent Storms Could Thrive Over the Coming Years

As that new phase of growth gains steam, plenty of opportunities could be created for companies like Innovative Industrial Properties Inc. (NYSE: IIPR) that address some of the…

420 with CNW — Nebraska Senate Rejects Law Seeking to Operationalize Medical Marijuana Program Approved by Voters

A bill in the Nebraska Legislature aimed at helping put voter-approved medical marijuana laws into action did not pass on Tuesday. Despite strong support from voters last November, lawmakers couldn’t overcome a filibuster in the chamber. Legislative Bill 677 fell short of the 33 votes needed to end debate, with a narrow 23-22 vote failing to move it forward.

Senator Ben Hansen, who introduced the bill, tried to appeal to his colleagues’ compassion, arguing that medical marijuana could offer real help to suffering patients. He stressed that even if they were hesitant about marijuana, they could still support relief for those in need.

Senator Glen Meyer echoed Hansen’s sentiment, urging fellow legislators to trust in each other’s judgment and humanity to find a path forward. Six other Republicans joined Meyer and Hansen in backing the bill, but it wasn’t enough to counter the opposition led by prominent GOP figures like Governor Jim Pillen, Attorney General Mike Hilgers, and U.S. Senator Pete Ricketts.

Their public pushback convinced enough lawmakers to block LB 677. They argued that the newly established Medical Cannabis Commission, created by voters and given full authority to regulate medical marijuana, should be allowed to work independently before any legislative changes are made.

There are also legal battles still playing out. Hilgers’ office is pursuing a case questioning the legality of how the cannabis laws made it onto the ballot. At the same time, he has rallied support from law enforcement groups, including sheriffs and police chiefs, against the bill.

Still, advocates like Senator John Fredrickson pushed back, arguing that the fears surrounding marijuana were outdated. He argued that lawmakers should focus on putting effective guardrails in place rather than blocking what the voters supported.

Senators like Dan Quick and Megan Hunt shared personal stories and frustrations, emphasizing that medical cannabis could be life-changing for families struggling with addiction or chronic health issues. Others noted the inconsistency of opposing this bill while supporting changes to other voter-approved initiatives on paid leave and minimum wage.

LB 677’s failure has frustrated many who believe the proposal is necessary to make the voter-approved reforms a reality. Some see it as another example of lawmakers ignoring the public’s will, while others view it as a deliberate delay tactic to weaken support or force legal battles.

Despite the setback, activists and supporters of medical cannabis have vowed to keep pressing forward. Many believe that the rejection of LB 677 could drive momentum toward full legalization in future elections, possibly as soon as 2026.

The failure to advance an enabling law creating a regulated medical marijuana program in Nebraska adversely affects the opening of broader economic activity, such as the sprouting of companies that offer services along the model of Innovative Industrial Properties Inc. (NYSE: IIPR) operating in other jurisdictions.

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420 with CNW — New Study Says Stress Drives Riskier Marijuana Use in Youth

A recent Canadian study focused on marijuana use among young adults offers insights into which behaviors and personal characteristics are linked to higher risks of marijuana-related problems.

While not all marijuana use results in negative outcomes, around 5% of young users in Canada may experience addiction or other harmful effects. What separates those who face issues from those who do not often comes down to how and why marijuana is used.

The study found that certain habits were linked to a higher risk of problems. These included using marijuana when alone, using it frequently throughout the week, consuming large amounts at once, or turning to it as a way to escape from stress or negative emotions. People who used marijuana to make everyday activities more enjoyable or to explore new experiences also tended to report more issues.

These findings line up with other research, especially the idea that frequent use and using alone are warning signs.

The study also found that not all groups of young adults face the same level of risk. Young people who identify as queer, lesbian, bisexual, gay, or otherwise sexually diverse reported more frequent and riskier patterns of marijuana use than their heterosexual peers. They were about three times more likely to fall into these higher-risk categories.

This increased risk was not attributed to sexual identity itself but to the elevated stress levels reported by these groups. Although higher rates of depression and anxiety were also noted among sexually diverse youth, general stress, particularly feelings of being overwhelmed or out of control, was the strongest predictor of problematic marijuana use. These stressors go beyond those caused by discrimination and point to broader life challenges that disproportionately affect marginalized groups.

This connects to a larger concept known as “minority stress”— the added stress that comes from being marginalized. Discrimination, exclusion, and internalized negativity can take a toll, and marijuana can become a way to cope.

With rising hostility toward LGBTQ+ communities in both the U.S. and Canada, the stress-related gaps in marijuana use may grow wider, according to the researchers.

Access to mental health care remains another barrier. Many sexually diverse youths face obstacles when trying to find safe, inclusive, and effective support services. As a result, marijuana may become a primary coping tool in the absence of better alternatives.

The study emphasizes the importance of making low-risk marijuana use strategies accessible, such as limiting frequency, avoiding solitary use, reducing quantities, and developing healthier coping mechanisms. However, these strategies are only effective if young people, especially those from marginalized backgrounds, have real access to supportive resources.

As the cannabis industry continues to grow and create numerous opportunities for other companies like Innovative Industrial Properties Inc. (NYSE: IIPR) exploiting opportunities within the marijuana ecosystem, more studies will be required to understand the drivers behind the use of this substance and how those who develop unhealthy usage habits can be helped.

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420 with CNW — Most People in Canada Support Expanding the Marijuana Industry, Survey Finds

Most Canadians believe the government should do more to support the legal marijuana industry, according to a recent national poll. The survey, conducted by Abacus Data for Organigram Global, found that 64% of adults in Canada think the government should make it easier for the marijuana sector to expand. This view spans all regions and age groups.

Support was especially strong in Atlantic Canada, where 65% backed more government action. Similar levels of support were seen in British Columbia (61 percent), Ontario (62 percent), and the Prairies (64 percent). Even among citizens over 60—a group often more skeptical of cannabis—57% agreed that the industry deserves greater backing.

These results come at a time when Canada is heading into a federal election and facing economic uncertainty, particularly in light of strained trade relations with the United States. The marijuana sector, despite being relatively new, is becoming a significant player in the national economy. Last year, it added $7.4 billion to the nation’s GDP, outpacing sectors like forestry and brewing, which contributed $3.3 billion and $2.6 billion, respectively.

Beena Goldenberg, the CEO of Organigram, noted that Canadians want the government to help homegrown industries thrive, and marijuana is one of them. She emphasized that the incoming prime minister should focus on removing barriers that are holding the sector back.

Nearly 90% of respondents also said they believe Canada needs to explore new avenues for economic growth. A similar number agreed that the country should act quickly to capitalize on fresh opportunities in emerging industries.

Since cannabis was legalized in 2018, the sector has generated over $43 billion in GDP and now supports more than 80,000 jobs, according to figures cited from Deloitte.

The survey, conducted from April 3 to April 8, surveyed 1,915 adults in Canada. It has a margin of error of plus or minus 2.24%.

The analysis also outlined specific steps the government could take—such as simplifying taxes, easing interprovincial sales restrictions, and encouraging research and development. It suggested that targeted support could especially help regions hit hard by declines in traditional sectors.

While the rollout of marijuana legalization wasn’t perfect, most indicators point to a positive outcome. Previous surveys show Canadians are largely purchasing cannabis through legal channels now, and youth usage hasn’t spiked—countering fears raised by critics of legalization. A government report from December last year revealed that only 3% of consumers still turn to illegal sources.

If these sentiments are acted upon and the cannabis program is expanded, there could be room for entrepreneurs to start firms similar to Innovative Industrial Properties Inc. (NYSE: IIPR) that serve marijuana companies and create a lot more benefits through their operations.

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420 with CNW — FBI Stance on Background Check Request Upends Delaware’s Marijuana Market Launch

Plans to launch recreational marijuana sales in Delaware this spring have hit a major roadblock following an announcement by the state’s Office of the Marijuana Commissioner (OMC) that the FBI had denied their updated service code request. The code is required to perform fingerprint-based background checks, which is a prerequisite for the impending recreational market.

The fate of Delaware’s recreational marijuana market now rests on lawmakers’ ability to revise legislation and meet federal requirements. The current roadblock is likely to set back not just marijuana firms but also ancillary companies operating in the format of Innovative Industrial Properties Inc. (NYSE: IIPR) that were gearing up…

420 with CNW — FBI Stance on Background Check Request Upends Delaware’s Marijuana Market Launch

The OMC had been collaborating with the state Justice Department and the State Bureau of Identification (SBI) to obtain the service code. However, a dispute between state and federal regulations means lawmakers will have to draft new legislation that aligns with the FBI’s standards.

The state General Assembly remains in session until June 30, so the timeline for resolving this issue remains uncertain.

This delay comes approximately two years after former Governor John Carney permitted the approval of two recreational marijuana measures without signing them. Last year, lawmakers passed additional legislation to clarify and correct certain provisions in the prior Act, including amendments to state codes.

One key requirement mandates that recreational cannabis license applicants submit fingerprints for the SBI to retrieve their FBI criminal history records. However, the agency has now ruled that Delaware’s legislation was not properly structured, further complicating the approval process for 125 cannabis license recipients.

This uncertainty poses financial risks for the awarded licenses, particularly if they are paying rent for facilities without being able to generate revenue. The OMC held lotteries in October last year, granting 110 licenses to testing labs, cultivators, social equity candidates, and manufacturers. In December, another lottery round awarded fifteen licenses to standard dispensaries.

Before stepping down in January 2025, Rob Coupe, the state’s first cannabis commissioner, had aimed for sales to begin in March. Now with the FBI roadblock in place, an alternative path could involve leveraging the state’s existing medical marijuana licensees.

Coupe had worked with legislators to draft a measure permitting the medical marijuana businesses to transition into the recreational market. The legislation, signed into law by Carney in July last year, allows medical dispensaries to convert their licenses by paying conversion fees—$100,000 for testing, retail, and manufacturing permits, and $200,000 for cultivation licenses.

The fee system could generate over $4 million, which legislators have allocated to support social equity applicants.

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420 with CNW — Government-Funded Research Shows Including CBD While Making Dentures Staves Off Oral Infections

A recently published study suggests that integrating CBD into denture materials may help prevent oral infections. The research, which appeared last month in the journal Molecules and backed by government funding, indicates that incorporating CBD into dentures could provide an antibiotic-free method to reduce plaque buildup and improve oral hygiene.

To explore this possibility, scientists infused CBD into polymethyl methacrylate (PMMA), a plastic commonly used in dentures due to its durability and aesthetic appeal. They then evaluated its antimicrobial effects against three bacteria: Streptococcus agalactiae, Escherichia coli, and Staphylococcus aureus.

Findings revealed that CBD-coated dentures were highly effective in killing Gram-positive bacteria. While the coating did not eliminate free-floating Gram-negative bacteria, it successfully eradicated bacterial biofilms.

The study reported a remarkable 99% decrease in biofilm growth for Gram-negative and Gram-positive bacteria on CBD-treated PMMA compared to the standard material. Researchers noted that CBD caused bacterial cell walls to break down and be destroyed.

In certain instances, the contrast between normal and CBD-infused PMMA was striking. For instance, S. agalactiae growth was 10,000 times higher on regular PMMA than on the CBD-coated version. The research also documented a 99% drop in E. coli and S. aureus biofilms and an even greater 99.99% decrease in S. agalactiae biofilms.

One aspect requiring further examination is how to develop coatings that allow for a controlled and prolonged release of CBD to maximize its ability to combat bacteria over time. The researchers observed that CBD released rapidly within the first 12 hours before stabilizing and dispersing gradually in a controlled environment.

Another area for future investigation is why CBD coatings effectively eradicated biofilms but did not affect free-floating planktonic bacteria of the same species. The researchers suggest further research into the genetic mechanisms behind biofilm formation and maintenance, as well as the role of CBD in disrupting bacterial adhesion to surfaces.

These findings align with separate research that explored CBD’s antibacterial effects in other contexts.

One study found that CBD could help treat bacterial vaginosis by weakening Gardnerella vaginalis biofilms, which can disrupt the microbial balance in the vagina. Another study, published in Pharmaceuticals, suggested that CBD might have wound-healing and anti-aging properties, making it a valuable addition to skincare products.

As research into CBD’s medical applications continues, these studies highlight its potential as a natural antibacterial agent that could revolutionize dental and healthcare treatments.

These studies funded by the federal government are helping to confirm what is behind the popularity of marijuana brands and the mushrooming of ancillary enterprises like Innovative Industrial Properties Inc. (NYSE: IIPR) that have been established to address the niche needs of companies dealing directly in marijuana products.

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420 with CNW — Patchy Marijuana Laws Could Expose Consumers to Contaminants

A recent Gallup survey indicates that marijuana use in the U.S. has doubled over the last ten years. In several states, cannabis is legal, and most Americans now consume it as often as they would wine or beer. However, finding safe and properly regulated marijuana products can be a challenge.

While marijuana carries health risks regardless of contamination, researchers warn that its increasing potency and widespread use can negatively impact mental health and brain function. An additional concern for users is the presence of harmful substances such as pesticides, heavy metals, and molds in vape products and edibles. Although state regulators are working to address these issues, experts suggest there is still a lot to be done.

Here’s a breakdown of key points regarding the safety of cannabis products and the current regulatory landscape.

The complexity of marijuana regulation

Each state has its own approach to regulating cannabis, which makes enforcement inconsistent. Regulators aim to keep marijuana free from contaminants that can seep in from soil. These substances can pose short-term risks, such as food poisoning symptoms, and long-term risks, including cancer and neurological issues.

Federal law complicates regulation since cannabis remains illegal at the national level. Not all states have legalized marijuana, and those that have have quite different laws.

Research conducted in 2022 found more than 600 contaminants are regulated across 30 states, but each jurisdiction monitors only between 60 and 120 contaminants. This means a pesticide considered unsafe in one state might go unnoticed in another.

However, merely increasing the number of contaminants tested does not necessarily guarantee safer products. Scientists are still determining which substances pose the greatest threats.

The persistence of the black market

Due to inconsistent state regulations and the continued federal ban, legally produced cannabis cannot be transported across state lines. This has allowed underground markets to thrive, often backed by criminal organizations. Many of these unregulated products are cultivated and processed under unsanitary conditions, with poor working environments and banned pesticides. They also lack reliable potency information.

Even many seemingly legitimate storefronts sell black-market cannabis, making it difficult for consumers to determine whether they are purchasing legally regulated products.

Improvements in legal cannabis access

Experts anticipate that as time goes on, navigating the legal cannabis market will become easier for consumers. Drug policy researchers note that transitioning from prohibition to legalization is a gradual process.

Over time, legal marijuana businesses are expected to outcompete illicit sellers, making it simpler for consumers to identify safer products.

The benefits of purchasing legal marijuana

Where available, legal marijuana is generally safer because it undergoes testing for contaminants such as mold and pesticides. States monitor these products and remove unsafe batches from shelves. Licensed growers and sellers have an incentive to maintain high standards to protect consumers and continue operating.

For instance, California saw over 60 cannabis product recalls last year, including flower buds, edibles, pre-rolls, and vape items—up significantly from just four recalls in 2023. Officials attribute this increase to expanded testing efforts.

Similarly, Maine, which has a newer regulatory system, had its first-ever marijuana recall last year due to mold concerns.

Although researchers continue to study the effectiveness of consumer protections, purchasing cannabis from licensed stores remains the safest option. Regulated products significantly reduce the likelihood of exposure to harmful contaminants, providing consumers with greater peace of mind.

If the federal government takes too long to reform its marijuana laws, the risk of contaminated products will only grow and it could reverse some of the gains that the reform movement has registered over the years. That would be a pity, because the business opportunities that were opening up at a fast pace for marijuana companies and also allied actors like Innovative Industrial Properties Inc. (NYSE: IIPR) could begin to dwindle as consumers become wary of the available products.

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