Capital raises in cannabis exceed pre-pandemic levels to $10+ billion
Cannabis industry capital raises exceeded pre-pandemic levels in 2021, with $10.1 billion raised in the first three quarters of the year, according to New Frontier Data’s new report, Cultivating Capital: Cannabis Finance & Investment, released in partnership with FTI Consulting.
Since 2019, a total of $25.9 billion has been raised and the recent surge of investment is focused on cannabis therapies, product innovation and tech solutions. Consumer demand of high-THC products totalled $415 billion globally in 2020 and that’s expected to grow to $500 billion by 2025 (and that’s a lot of THC).
“North American companies — both Canadian and American — are deploying an unprecedented amount of capital in emerging European and Latin American cannabis markets,” said New Frontier founder and executive chair Giadha A. DeCarcer.
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US regulations obstruct cannabis research
A paper published by the National Cancer Institute says conflicting cannabis regulations are making it difficult to research its applications and public health impacts, reports Marijuana Moment.
The regulatory and administrative hurdles include:
- Accessing legal products
- Lack of standardization and quality control with states
- No national oversight of standards or quality control
- Research requires a “single domestic source” of cannabis
- Arduous administrative processes
“Because of the time, expenses, and regulatory knowledge required to get a single study started in this field, researchers will frequently opt not to pursue work in this area,” reads the paper.
Now you can safely buy cannabis in the metaverse
Higher Life CBD is one of the first cannabis brands to open a CBD dispensary in the metaverse, reports Forbes. Consumers can place an order through the gamified Ethereum blockchain-supported Cryptovoxels world, and receive their order IRL to their home.
“The COVID-19 pandemic has forced many companies to think about safe alternatives when it comes to communicating with employees and customers,” said CEO Brandon Howard.. “For some, that means looking beyond the physical world and thinking outside of the box.”
Europe (finally) increases THC limits on hemp
After a 25-year struggle, hemp THC limits have finally been restored to 0.3%, reports BusinesCann.
The THC limit was first set by the European Union in 1984 at 0.5 %. In 1988, the limit was lowered to 0.3 % to “protect public health.” In 1999, they were lowered further to 0.2%.
Lorenza Romanese, managing director of the European Industrial Hemp Association, called it a win. “The recent increase in hemp crop THC levels represents not only a win for the European hemp sector, but also a step forward in the direction of more science-based policies,” sayid Lorenza Romanese. Managing Director of the European Industrial Hemp Association (EIHA).
Still room to grow
But BusinessCann warned there is still “some way to go” before comprehensive regulations are established. For now, the limit increase just applies to hemp cultivators eligible to receive direct payments through the Common Agricultural Policy.