ON THE SCHEDULE
Cannabis scheduling review to move ‘quickly’ following Biden’s announcement
On Thursday, President Biden announced he would be pardoning convictions for simple cannabis possession.
Marijuana Moment reports that U.S. Health and Human Services (HHS) Secretary Xavier Becerra said he has already spoken with FDA Commissioner Robert Califf about starting the process to review the policy of listing cannabis as a Schedule I drug. He told the publication that he intends for his agency to move “as quickly as we can” to comply with President Joe Biden’s directive.
“The president was very clear — he wants this done as quickly as possible. It’s not new science, but there’s a lot of information to gather because in many states marijuana has been legalized for either medical purposes or recreational purposes,” he stated.
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HIGHS AND LOWS
Canadian stocks rise then fall in response to US cannabis reforms
U.S.-listed cannabis stocks surged on Thursday following President Joe Biden’s announcement to pardon simple cannabis convictions. However, MJBiz reports that this was followed by a decline on Friday morning.
Highlighting that analysts have warned that the president’s plan to review cannabis’ drug scheduling status would be lengthy and complex, the publication emphasizes that the analysts still believe Biden’s announcement could bode well for the passage of the Safe Banking Act.
Owen Bennett, a cannabis equity analyst for New York-based investment bank Jefferies Group, said that U.S. cannabis share valuations “have been largely depressed because of its Schedule 1 status. As a result, major exchanges won’t list these names and the vast
majority of institutions won’t invest due to fear of federal prosecution.” However, he concludes that rescheduling cannabis and other developments could lead to cannabis equity “uplistings and a significant inflow of new institutional capital.”
OVERSEA OPPORTUNITY
Tilray explores German opportunities as growth slows in Canada
High inventory and increased competition is making Canadian cannabis companies look overseas for growth, reports The Street.
The Covid-19 lockdowns left growers and retailers with too much inventory, leaving companies such as Aurora Cannabis (ACB) announcing that it would close its facility “as it looked to right-size its operations”.
With Germany getting the majority of its cannabis products for its medical market imported from Canada, Tilray has stated that it is best positioned to take advantage of the opportunity due to all the work it has already put in in the country of 83 million.
However, The Street highlights that a gaffe last month – when the company announced it had attended a roundtable meeting with German authorities to discuss legalization – could put a strain on the company’s overseas plans. The German Government has said the announcement was untrue, stating: “We are not downplaying the meeting, because there is no cooperation and there will be none either with Tilray. On no level to be clear.”
BIRTHDAY REVIEW
Health Canada undertakes Cannabis Act review almost 4 years after legalization
Canada will be marking its four-year anniversary of the legalization of recreational cannabis on October 17.
Health Canada is now undertaking a review of the Cannabis Act with the public invited to review and share feedback before 21 November. The Growth Hop explores how the review will respond to the ongoing and new needs of Canadians and ensure a diverse competitive legal industry displaces the illicit market.
The Growth Hop explores:
- The maturity of the market
- Cannabis education
- Cannabis versus alcohol markets
- The reputation of cannabis brands
