LOW, LOW, LOW
Canadian LPs have low expectations for US legalization
The Canadian cannabis industry isn’t holding its breath for a positive outcome looking ahead at this Thursday’s debate and Friday vote on the MORE Act in the House of Representatives, reports Canadian Press.
The issues
- Larger Canadian companies have already started readying for federal legalization, despite it potentially being years away
- SAFE Banking would also benefit Canadian companies hoping to enter the US market
- Canopy’s David Culver, who lobbies Capitol Hill, said legislators can learn from Canada: taxes need to be set at a rate that can compete with the illicit market
- The US is also focusing more on social justice, such as expunging criminal records and creating opportunities for communities impacted by the war on drugs, than Canadian lawmakers did. But so far, those efforts have been state-made.
“The unintended consequences of inaction are severe,” Culver said. “If we don’t act on cannabis reform sooner rather than later, we’re going to continue to arrest hundreds of thousands of people — this year, we’ll arrest over 300,000 people, again — unless reform is done.”
Enjoy Cannabis Daily each morning at 7 a.m.
RIV YOUR ENGINES FOR NY
RIV Capital buys New York’s Etain for USD $247 million
Formerly known as Canopy Rivers, RIV Capital is acquiring New York-based medical cannabis retailer Etain in a USD $247 million cash and stock deal financed by Scotts Miracle-Gro subsidiary The Hawthorne Collective, according to Canadian Press.
Etain has four dispensaries. RIV will invest in creating four more and an indoor cultivation facility focused on premium cannabis. The deal also marks the end of Narbé Alexandrian’s four-year run as CEO. Mark Sims will take his place.
“…I want to thank all of the critics, naysayers and trolls,” Alexandrian wrote in a farewell note posted to Twitter. “I know who you are, I’ve read the forums, and I’ve read your comments, criticisms and praises … When many were counting us out, RIV responded with a massive turnaround, a partnership with one of the sharpest strategic partners, culminating to CAD $400 million cash on hand, and now, a prized entry into the burgeoning New York market.”
GREEN MOUNTAINS INDEED
Vermont preps for cannabis retail
As of Tuesday, 427 applications for prequalification for Vermont’s new adult-use cannabis market had been submitted by cultivators, retailers, manufacturers and more, reports Associated Press.
Prequalification looks at criminal records as well as “civil and potential administrative law adjudications.”
But that’s just the beginning. The actual license application process kicks off Friday, first for small producers and lab testing, then for all cultivators starting May 1. Retailers can apply for licenses starting Sept. 1.
READY AIM…
Celadon lists on the AIM, the first UK cannabis company to do so in 21 years
After an RTO with Vertigrow Technology Ltd. and rebranding from Summerway Capital to Celadon Pharmaceuticals, the company is now listed on the Alternative Investments on Monday (AIM), reports BusinessCann.
It’s the second British cannabis IPO in two weeks and the second company to list on the AIM since 2001, when GW Pharmaceuticals was listed.
Why so few?
While the AIM is “the natural place for a lot of cannabis companies, especially in the UK, as they grow,” according to DLA Piper senior associate Dylan Kennett, the less rigorously regulated market may be less attractive to companies aiming to act by the book. Without institutional investment, too, some may just not be ready to list.
