FEDERAL LAWSUIT
Group of cannabis companies gears up to sue the US federal government
Abner Kurtin, founder and CEO of Ascend Wellness Holdings, said six companies are “favourably disposed” to joining two lawsuits against the federal government that would argue that barriers to their ability to do business are unconstitutional, per Marijuana Moment.
Adding to the credibility of the case, law firm Boies Schiller Flexner LLP, which has represented both former vice president Al Gore as well as the plaintiffs who overturned California’s ban on same sex marriage, is on board to represent the MSOs.
According to Kurtin, the two issues at play are the ban on cross-border cannabis business under the Controlled Substances Act and 280E, the tax law that prevents cannabis companies from receiving deductions available to federally legal businesses. “If the challenge to marijuana’s status under the CSA is successful, Kurtin said that it would ultimately give cannabis businesses access to both the banking system and major stock exchanges,” writes Marijuana Moment.
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CA CITIES SAY NO
62% of California’s counties and cities still don’t allow cannabis retail
It’s been tough keeping track of which California municipalities and counties have allowed cannabis businesses to operate and those that have not. Now, regulators have launched open source data and a map making it clear.
The highlights
- 235 of 539, or 44%, allow “at least one type of cannabis business”
- 56% don’t allow any
- 335 of 539, or 62%, don’t allow any cannabis retailers
Most of the counties that prohibit cannabis businesses are inland. But for most, there is at least one city within the county which permits some type of cannabis business.
TRENDY VAPES
Vape pens continue grow in popularity in the US and Canada
Market share of vape pens grew from 18.9% to 22.1% from April 2021 to April 2022 in the US, and reached a market share of 17.6% in January of 2022 in Canada, according to Headset’s latest report, Cannabis Vapor Pens: A look at category trends & performance.
The highlights
- Younger consumers favour vape pens over older consumers
- Female consumers prefer them over male consumers and are willing to spend more, except among Gen Z consumers
- 510 battery thread is the most popular vape type
- Prices have been compressed, down 32% in Canada and 15% in the US between April 2021 and April 2022
See the full report here.
BIG LOSSES
Canopy Growth reports deeper losses than expected
Ontario-based Canopy Growth reported a loss of $1.46 per share in its fourth quarter report, per Barron’s. Revenue for the quarter ending in March was $111.8 million. Analysts had forecast $130 million.
“Achieving profitability is critical and we have undertaken additional initiatives to streamline and drive efficiencies for our global cannabis business,” said CEO David Klein.
MJBizDaily’s international editor Matt Lamers tweeted that, since 2015, the company has lost $4.1 billion, adding that at the end of Friday’s shareholder call, the “CEO of Canadian cannabis company Canopy says something about enjoying cannabis beverages over the upcoming Memorial Day long weekend,” commented on Twitter. “Except that YOU CAN’T BUY Canopy’s THC cannabis beverages in the United States, and Canada doesn’t celebrate Memorial Day.”
