TRUE NORTH
Canadian federal budget proposes cannabis changes, plus news on lounges and edibles
Three recent cannabis policy updates show Canada still has plenty of room for improvement.
- The 2022 federal budget proposes a new “cannabis strategy table” which would work with the industry and proposes changes to the federal excise tax system:
- Excise taxes would be paid quarterly basis, not monthly
- Companies could transfer excise duty stamps between them
- Amend penalties for lost excise duty stamps
- BC is considering cannabis lounges, reports Global News (and congrats to Jersey City for approving theirs)
- Quebec’s SQDC are now, finally selling cannabis edibles (or should we say edible – like they only have one for sale), according to Eater Montreal
Enjoy Cannabis Daily each morning at 7 a.m.
WAR IMPACTS ON CANNABIS
Russian invasion of Ukraine impacts cannabis supply chain
Ancillary cannabis company operators say Russia’s attack on Ukraine hasn’t just affected gasoline prices, but now also the supply chain for some packaging, chemical solvents and stainless steel, reports MJBizDaily.
“The two big pain points are going to be the solvents – the extraction piece, the consumables on that side – and packaging, because everyone wants a specialized brand,” said Liz Geisleman, co-founder of Canna Consortium.
“If (marijuana businesses are) using any kind of solvent, all of that is going to skyrocket in the next month or two, because it hasn’t hit the refineries yet.”
VAPORIZE (THIS BUSINESS)
Non-existent vape pen business used to raise $37 million, allege authorities
On Tuesday, federal authorities arrested 53-year-old David Joseph Bunevacz and charged him with wire fraud after they say raised more than $37 million in a non-existent vape pen business and spent the money on himself, reports Rolling Stone.
According to a March 30 affidavit:
- Bunevacz is a “peripatetic grifter” who “frequently bragged about his wealth and talked about buying horses”
- Bunevacz told investors his companies sold both THC and CBD vape pens
- A PowerPoint presentation said he had a “strategic relationship” with a Chinese vape pen manufacturer and filled them with “raw, pesticide-free” oil with the help of a lab “that infuses the flavors into the oil with our proprietary custom process that renders the vape flavoring smooth and discrete”
- Bunevacz neglected to mention a prior state felony conviction relating to the sale of securities
With the investor money, the affidavit claims he funded a lavish lifestyle, such as a house in Calabasas, visits to Vegas, jewelry, handbags, a birthday party for his daughter, and the aforementioned horses. He also used some to pay back earlier investors.
