420 with CNW – Cannabis Legalization Linked to Fewer Vaping Injuries

A study found that states that had legalized cannabis were less likely to experience growth in vaping related lung injuries in the past year in comparison to states that prohibited marijuana use.

The study strengthened the arguments of advocates that called for marijuana reform, stating that its legalization and regulation reduced the potential risk of consumers using possibly dangerous and contaminated products.

The study also established that adult vaping rates and marijuana use rates had not increased as had been previously predicted.

It was noted that some of the teen consumers of adult-use marijuana users were ranked among the lowest with regard to lung related injuries from vaping, with less than 1 in 100,000 cases between the ages of 12-64.

On average, the frequency of these cases per state in terms of lung injuries was 1.4cases per 100,000 individuals in the said age group. In comparison, no state with high cases in lung injuries have recreation cannabis markets established.

The study indicates a negative relationship linked to EVALI (dangerous, lung disease associated with vaping) popularity and pre-outbreak vaping rates and cannabis use while also showing that well-established cannabis markets may have ejected the use of informally sourced, riskier e-liquids.

Combined, the five states that have legalized recreational cannabis i.e. Oregon, Alaska, Colorado, California and Washington, had less than one EVALI case per 100,000 residents aged between 12 and 64 while the states with the highest EVALI cases such as Minnesota, Utah, North Dakota, Indiana and Delaware, still prohibit recreation cannabis use.

It is speculated that a ban on smokeable marijuana products in two of the states mentioned above with a lot of cases, only permitted medical cannabis use. This may have further contributed to lung injuries as the only options left to consumers in the market were in the illicit and unregulated vaping market.

The CDC has in total, identified 68 deaths and over 2,800 cases linked to contaminated vape products. The agency has also discovered vitamin E acetate that is added to the illegally purchased and altered THC e-liquid cartridges as being a strong factor that may have led to the series of vaping-related lung injuries.

Another study that was published in April also ascertained that individuals living in states where recreational cannabis was legal were less than likely to sustain vaping-related lung injuries as compared to those living in states where marijuana is still illegal.

A high ranking CDC official stated last year that a clash between federal and state cannabis laws impeded research that was to aid in tackling EVALI cases.

Experts say this research shows that industry actors like Sugarmade, Inc. (OTCQB: SGMD) have a case when they say legalizing marijuana reduces some of the health risks resulting from consuming unregulated products.

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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420 with CNW – Cannabis Legalization to Proceed in Mexican Congress

Mexico’s president, Andrés Manuel López Obrador, has stated that the legalization of marijuana will proceed through Congress once it reassembles next month.

When asked about a meeting he had with a senator who was pushing for marijuana reform legislation during a press conference last Wednesday, he highlighted the boundaries when it came to the balance and division of powers between the legislative and executive branches of the government. In addition to this, he also stated that the marijuana proposal had existed for quite a while.

He also admitted that the legislature was taking action following a Supreme Court order to lift the government prohibition on cannabis. This was in the wake of the Supreme Court’s ruling that established the ban on possession and personal use to be unconstitutional in 2018.

Despite the legalization bill having proceeded through various committees at the beginning of this year, the coronavirus pandemic delayed the reform effort. The Supreme Court has arranged a later date, for the legislators to pass the change in policy. For now, lawmakers have till December 15 of 2020 to do so.

The bill, which was amended in a joint meeting of various committees earlier this year in March will be included on the agenda, seeing as the Senate will be back in session from September 1.

The bill proposes that adults who are 18 and older be allowed to cultivate and possess cannabis for personal use. If the output does not surpass 480 grams in a year, individuals may be allowed to cultivate up to 20 registered plants. Additionally, medical patients may apply to be allowed to grow more than 20 plants. Personal possession would be limited to not more than 28 grams although possession of as much as 200 grams would no longer attract a jail sentence.

The bill also proposes cannabis sales to be taxed at 12%, with part of the revenue being allocated to a fund dealing with substance misuse treatment. With regards to consumption, public consumption would be allowable except in designated smoke-free spaces with CBD and hemp being excused from regulations pertaining to THC products.

Under the measure, a separate body, that is, The Mexican Institute of Regulation and Control of Cannabis, would be responsible for providing licenses for cannabis businesses as well as regulating the market.

A senator from the ruling Morena Party, Julio Ramón Menchaca Salazar, stated that the legalization of cannabis could be helpful in filling treasury funds as the economy picks up during this pandemic period.

It would be interesting to hear what cannabis firms like Sugarmade, Inc. (OTCQB: SGMD) think about the implications to the regional cannabis market once Mexico establishes a regulated market.

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420 with CNW – Why Automation is Advantageous for Cannabis Businesses

With the pandemic leading to closure of businesses due to low demand and many others operating their businesses online to adhere to the social distancing regulations, there is no better time than now to automate your cannabis business. Automating your business ensures both you and your employees are not recklessly putting themselves in harm’s way while also increasing the efficiency of your business.

The margins in the marijuana sector are growing tighter as the sector gets more competitive. To survive, businesses must adapt and adopt automation.

Below are reasons why automating your business is the best way to go.

Allows one to control quality

To increase sales and achieve consumer loyalty, one’s product has to consistent, be of high quality and the integrity of the terpenes should be maintained. Implementing automation ensures that if a high-quality raw material is used, the end product is of high quality as well. The precision automation offers will be essential in the coming years in order to remain competitive.

Helps increase production

Implementing automation in harvesting and post-harvesting processes increases production, cuts down on employee hours and maintains product quality. Automation increases overall efficiency, giving a company an edge in a highly competitive market.

Less staff are required

Additionally, automation eliminates the need for employees, making it the less costly and far better option as it allows businesses to employ only highly trained individuals for the long term. This saves businesses a lot, especially in terms of income for employees, money spent on training and is generally less time consuming to oversee; an added advantage.

Automation also decreases the risk of contamination of a product, as no workers will be physically handling the product. The machines made of high-grade stainless steel are easy to clean and sterilize, making them safer for product handling.

Furthermore, automation also minimizes the risk of financial loss caused by errors made by workers, which may be fatal for small businesses.

Improves workplace safety

Utilizing machines in one’s facility ensures that the workplace has minimal accidents and workers can observe social distancing at work. Using conveyors to move the products between different stations also eliminates the need to have workers in close proximity to each other. The safety this provides allows the workers to focus on their current tasks without the fear of getting infected.

Automation promotes a healthy working environment as it shows employees that their safety and health is valued in the business. Socially distanced production and automation is the future and we are living in it. There is a likelihood that it will endure long after the pandemic ends because of the many benefits it offers not only to a business’ production process but also to the employees of the business. It may therefore not be surprising to learn that cannabis companies like Sugarmade, Inc. (OTCQB: SGMD) have automated most of their operations.

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420 with CNW – Wyoming Judge Throws Out Pot Charges Against Hemp Farmers

A mother and son duo of farmers who prominently advocated for the law that legalized hemp in Wyoming can finally rest easy after a judge dismissed the marijuana trafficking charges they were facing. Back in November 2019, agents with the Wyoming Division of Criminal Investigation (“DCI”) raided Debra Palm-Egle and Joshua Egle’s farm and found 700-plus pounds of dried plant material they assumed to be marijuana. The two were charged with a bevy of marijuana offenses alongside Brock and Shannon Dyke, a contractor and his wife who worked for the farmers and were on the property when it was raided.

However, Laramie County Circuit judge Antoinette Williams dismissed the charges on Wednesday, stating that prosecutors lacked probable cause that the hemp advocates intended to grow and distribute marijuana. The dried plant material found on the farm was actually hemp which the two had admittedly grown without a state license. While the judge reprimanded them for growing unlicensed hemp, she dismissed the charges of conspiracy to manufacture, deliver or possess marijuana, possession with intent to deliver marijuana, possession of marijuana, and planting or cultivating marijuana.

The Egles may face a $750 fine for growing hemp without a license, a much lighter punishment than the decades of prison time they could have gotten if the prosecutors had their way. After testing the plant material they seized from the Egles farm, DCI agents found that most of it had less than 0.3%, although the highest result was 0.6% THC. According to Laramie County Assistant District Attorney David Singleton who prosecuted the case, any plant that tested over 0.3% is marijuana.

Circuit Court Judge Williams ruled that it was clear that the two intended to grow hemp and cited as evidence the Egles’ long history as hemp farmers. Additionally, on the day of the raid, Brock Dykes showed DCI agents the results of tests conducted on the crop that indicated it had less than 0.3%. Judge Williams said that while she understood why prosecutors had chosen to pursue the case, she did not believe there was any probable cause.

According to Joshua Egle, he began growing a “test crop of hemp” for research purposes before he got his license. It would take time for farmers to understand how to harvest at the right time to keep THC levels legal while working on new soil, he said after the hearing. Betting that officials would soon work out the new industry regulations and allow him to license the crop, he started growing hemp. “We had to get going,” he says. It would be interesting to hear what marijuana companies like Sugarmade, Inc. (OTCQB: SGMD) have to say about this case that should never have reached court.

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CannabisNewsBreaks – Sugarmade Inc.’s (SGMD) BudCars Top Exec Talk Expansion, Strategy on Leading Nationwide Radio Show

Sugarmade (OTCQB: SGMD), a leading, multidivisional/multiproduct/multisector supply company, and its BudCars Cannabis Delivery Service was featured on Cannabis Talk 101, a top radio talk show. During the Aug. 14, 2020, program, BudCars CEO Clinton Walker discussed the upcoming opening of BudCars’ newest hub in Los Angeles. In his interview with the show’s four hosts, Walker also shared the company’s strategic plans to expand throughout California and noted the significant impact the company’s partnership with Sugarmade has had on growth and success in the past few months. Apple Podcast notes calls Cannabis Talk 101 the “world’s #1 source for everything cannabis”; the show is passionately focused on educating, advocating and defending members of the cannabis community

To listen to the show, visit http://cnw.fm/eCtbM

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

About Sugarmade Inc.

Sugarmade is a product and branding marketing company investing in operations and technologies with disruptive potential. SGMD sees opportunities in business operations that combine the best areas of on-demand consumer distribution with certain areas of synergistic manufacturing and packaging to create a business model that capitalizes on the many changes in the cannabis industry. The company has made agreements with several market participants, which will be announced in 2020. The company views these opportunities as scalable and capable of producing strong revenue growth. For more information, visit the company’s website at www.Sugarmade.com.

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

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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 – Coronavirus and Social Distancing Propels Cannabis Market

In March 2020, every other headline seemed to be about the run on toilet paper. But another product was silently being stockpiled in many American homes. Cannabis.

Orders for legal cannabis products surged in March in the 33 states where some form of cannabis is legal. The two-week spike was attributed to panic buying by consumers. After a bit of fluctuation, sales began to stabilize at the end of April. However, when those sales numbers stabilized, they were nearly 40% higher than at the same point in 2019.

The downturn hasn’t made a dent in demand, according to a recent whitepaper released at the end of July that reports 2020 industry growth is outpacing 2019 growth. Cannabis is proving to be recession-resistant with demand expected to remain steady in coming months.

Additionally, cannabis companies are on the rebound and retailers are now purchasing more than they were prior to the onset of the global pandemic. The whitepaper, a joint effort among three software companies, is entitled The State of the Cannabis Industry: 2020.

More good news for the industry is on the horizon. Researchers are now exploring how cannabis might be able to treat and prevent the Coronavirus. The study highlights how a particular strain of cannabis could potentially block COVID-19 from entering and infecting the human body. While this research is not yet peer reviewed or published, it is still an intriguing foray into another potentially revolutionizing benefit of the cannabis plant.

With all of this good news, cannabis companies are working harder than ever. As very few companies were prepared for the disruptions caused by the pandemic, and most businesses finding themselves ineligible for SBA loans or other forms of federal aid, cannabis companies will be forced to innovate and identify new ways of gaining competitive advantage in order to remain afloat. Over the long-term, however, the new strategies being formulated will forever change the landscape of the cannabis industry.

Companies are seeking innovative ways to maintain competitive advantage by leveraging the many technological and marketing opportunities available throughout the industry. This might explain why organizations such as marketing firm Sugarmade Inc. (OTCQB: SGMD) are seeing increased demand.

Sugarmade helps cannabis businesses strike the perfect chord among botany, brand and business to drive profitability. The company invests in operations and technologies with disruptive potential. For example, Sugarmade has found a unique approach to retail cannabis product distribution with its significant investment in BudCars Cannabis Delivery Service, which reported a 10% increase in total sales in just two weeks at the beginning of August.

“The Coronavirus pandemic is undeniably a game-changer for consumer behavior patterns that will likely have long-term implications as it drives new habits into place,” said Sugarmade CEO Jimmy Chan. “However, at this point, we have only scratched the surface of what is possible over the intermediate term for BudCars given that all of the growth we have booked so far has been exclusively about organic execution as we claim an increasing share of the market and drive enthusiastic repeat business from newly acquired customers.”

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420 with CNW – States Ask USDA and Congress to Extend Hemp Pilot Program

Although the 2014 hemp pilot program is set to expire on October 31, various state agriculture and hemp industry advocates have expressed concern that some states aren’t quite ready to run their own hemp programs. On Wednesday, the U.S. Department of Agriculture (“USDA”), received letters from the National Association of State Departments of Agriculture (“NASDA”) and National Industrial Hemp Council (“NIHC”) asking it to extend the pilot hemp program.

The groups say that while the USDA’s efforts at developing interim guidelines for the crop under the 2018 Farm Bill have been monumental, several states have been unable to create their own hemp programs due to the coronavirus. They asked Congressional leaders to consider passing supplementary appropriations legislation to extend the pilot hemp program through 2021 to give states more time to craft rules for their individual hemp programs.

“Many states were able to transition from their hemp pilot programs to a USDA state-approved plan. Notwithstanding this progress, many states will be unable to meet the forthcoming deadline. These states have indicated that due to the unprecedented national COVID-19 pandemic, state regulators have been unable to work with their state legislatures to acquire necessary statutory amendments,” the letter states. It adds that while the groups support the House inclusion of an extension in their agriculture spending bill, they are concerned that “the annual appropriations bills may not be completed before the extension is vitally needed.”

NASDA and NIHC also wrote separately to Agriculture Secretary Sonny Purdue asking that the USDA issue enforcement discretion guidance when it comes to the pilot program deadline. “Without a policy of enforcement discretion, hemp farmers will be left in a perilous situation through no fault of their own. We understand this is not a small request. We appreciate the tremendous amount of work that has gone into making American hemp the viable and valuable agricultural commodity it is today. This is the direct result of government serving the timely needs of the industry.”

Larry Farnsworth, a spokesman for NIHC says that “as an emerging industry, hemp growers face a multitude of challenges, among them, is a worldwide pandemic that has complicated everything for everyone. Too many states just have not been able to work through their internal legislative and regulatory processes. We need more time to develop and implement the regulatory framework called for in 2018 Farm Bill.”

It is believed that entities like Sugarmade, Inc. (OTCQB: SGMD) will be following how the USDA responds to this request.

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420 with CNW – Senate Bill Seeks to Legalize and Tax Cannabis Like Tobacco

So far, 2020 has been pretty rough on drug reform initiatives. Marijuana legalization activists in states like Idaho and Florida have had to postpone their legalization activities after the coronavirus pandemic made signature collection almost impossible and kept lawmakers occupied with more urgent issues. However, the push for federal marijuana reform received a massive boost after a Democratic Senator filed a new bill to federally legalize marijuana in late July.

Titled the ‘Substance Regulation and Safety Act,’ the legislation was sponsored by Senator Tina Smith. If passed, it would remove cannabis from the Controlled Substances Act and direct federal agencies to develop a framework for regulating marijuana in the country. The legislation would de-schedule cannabis, and it would require the U.S. Department of Health and Human Services (HHS) to develop rules that treat cannabis the same as tobacco and to create a national research institute to evaluate the risks and benefits of cannabis. The federal age requirement for marijuana sales would be 21.

The bill would also require the U.S. Department of Agriculture to impose quality control standards and mandate the Department of Transportation to study ways law enforcement can detect THC-impaired driving. The text of the bill states that the de-scheduling provisions are “retroactive and shall apply to any offense committed, case pending, or conviction entered, and, in the case of a juvenile, any offense committed, case pending, or adjudication of juvenile delinquency entered, before, on, or after the date of the enactment of this Act.”

The legislation state that HHS would be required to “regulate cannabis products in the same manner, and to the same extent” as tobacco, and that includes “applying all labeling and advertising requirements that apply to tobacco products under such Act to cannabis products.” The agency would also have to come up with a “national strategy to prevent youth use and abuse of cannabis, with specific attention to youth vaping of cannabis products.”

On racial justice, the legislation requires HHS to “consult with civil rights stakeholders to determine whether cannabis abuse prevention strategies and policies are likely to have racially disparate impacts” within 100 days of the bill’s enactment. On top of that, the Department of Transportation would also have to determine whether its impaired driving prevention policy “is likely to contribute to racially disparate impacts in the enforcement of traffic safety laws.”|

The Act would also require U.S. Customs and Border Protection to work with other agencies to develop policies on allowing marijuana imports and exports. “It’s terrific to see Senator Smith engage so substantively in the cannabis reform policy debate,” says Justin Strekal, political director of NORML. “We at NORML look forward to propelling many aspects of the new legislation into the broader conversation on the future of federal regulations in regards to a post prohibition America.”

Experts say companies like Sugarmade, Inc. (OTCQB: SGMD) will be hoping that this bill doesn’t end in limbo like others before it.

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CannabisNewsBreaks – Sugarmade Inc.’s (SGMD) Cannabis Delivery Service Reports Highest Performance to Date

Sugarmade (OTCQB: SGMD), a leading, multidivisional/multiproduct/multisector supply company, has released its July financial report, including record performance numbers for BudCars, the company’s newest acquisition. The cannabis delivery service organization reported more than $660,000 in total gross sales, which represented a 32% sequential monthly top-line growth. The report also included other performance highlights. “Last month featured strong growth in basically every major metric once again for our BudCars segment. We saw an increase in gross margins while demonstrating another breakout month-over-month performance on both the top and bottom line,” said Sugarmade CEO Jimmy Chan in the press release. “Note that April was our first full month operating BudCars. In July we more than doubled the sales and gross profits booked in April. That pace of growth suggests another potential doubling by October on a per-location basis. And we will be operating additional locations by then, which will serve to compound that growth.”

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

About Sugarmade Inc.

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420 with CNW – The COVID-19 Outbreak is Hitting Illegal Cannabis Sales Hard

For many proponents of legalizing marijuana, snuffing out the black market and bringing all that revenue into the state coffers was a big motivation. However, the truth is the black market has thrived alongside state legal weed, and in many cases has actively undermined and drawn profits from the legal market. With the coronavirus pandemic in full swing, though, illegal cannabis sales have been hit. Hard.

In the early days of the pandemic, it was established that COVID-19 was a respiratory disease and folks with poor lung health were more at risk of developing severe symptoms. As beneficial as marijuana can be, smoking is harmful and puts your lungs in danger. People are still consuming marijuana during this period, though, they’re just getting it from a different, more trustworthy source.

“It’s understandable that people may be more hesitant to get their products from sources that are unregulated. They may not want to go to their dealer’s house, or they may not want to have their dealer come into their house at a time when people are social distancing and not supposed to be interacting with people that they don’t know,” says Kris Krane, CEO of 4Front Ventures, which operates dispensaries in multiple states.

Back in May, Mitch Baruchiwitz, managing partner at cannabis investment firm Merida Capital Partners, argued in a paper that the pandemic was ‘cannibalizing’ the illegal market. “The vast majority of the current growth in the cannabis space is being driven by consumers transitioning from the black market to the legal market,” he wrote.

With millions of Americans stuck at home waiting for the virus to die out, plenty of them have been consuming marijuana to alleviate their stress and anxiety. However, marijuana from the illegal market is unregulated and the quality cannot be assured. Consumers want high quality, properly regulated products and they have started turning to the state legal cannabis market to get their fix. According to New Frontier Data, revenues are expected to hit $17 billion this year, a 25% increase from last year’s figures.

As the coronavirus pandemic puts an immense strain on the economy, states may choose to legalize cannabis sales to beef up their budgets. Krane points out how the government ended alcohol prohibition soon after the Great Depression to boost revenues.

“Alcohol prohibition was largely ended as a result of the Great Depression, as the country was in desperate need of new sources of revenue. It went from something that was seen as politically impossible to a political necessity in a very short amount of time, and I think we’re seeing a similar situation here.”

Analysts think entities like Sugarmade, Inc. (OTCQB: SGMD) are glad that this pandemic has had the unexpected positive effect of denting illicit pot sales.

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