BLACK MARKETS SALES
Weedmaps accused of promoting ‘black market activity’
Complaints filed to the California Department of Cannabis Control (DCC) and the US Securities and Exchange Commission (SEC) by LA-based Canex Delivery say that Nasdaq-listed cannabis tech company Weedmaps is “allowing vast amounts of black market activity through their website, and they know about it but won’t do anything about it,” reports MJBizDaily.
Before going public in 2020, Weedmaps removed ads and listings for unregulated cannabis companies from its site. Now, if the allegations are found to be true, the company could face steep fines as a consequence.
According to a Weedmaps spokesperson, “We have not received any communications from the DCC or SEC regarding complaints made by Jim Damask and/or (Joseph) Bitzer of Canex Delivery.”
Enjoy Cannabis Daily each morning at 7 a.m.
Here’s who will testify at today’s Senate cannabis reform hearing
Weldon Angelos, who served time in a federal prison for a cannabis conviction, and anti-cannabis crusader Alex Berenson are among those selected to testify at today’s Judiciary Subcommittee on Criminal Justice and Counterterrorism meeting chaired by Sen. Cory Booker (D-NJ), reports Marijuana Moment.
Also on the list:
- Pro-legalization doctor Malik Burnett, who previously worked for the Drug Policy Alliance
- Annapolis chief of police Edward Jackson
- Former federal prosecutor Steve Cook
Berenson’s inclusion is controversial. The former New York Times reporter’s 2019 book, Tell Your Children, links cannabis use to both violent crime, psychosis and schizophrenia—none of which have been demonstrated by researchers to be caused by marijuana use.
What we know so far about Juicy Fields’ ‘dramatic’ fall
Many in Europe’s cannabis industry aren’t surprised at the ‘dramatic’ collapse of cannabis crowdfunding platform Juicy Fields, according to BusinessCann, which published a detailed timeline of events leading up to the company’s collapse.
- In June and July, the German Federal Financial Supervisory Authority banned anyone from investing in the company because it hadn’t published a prospectus and fined the company €1 million for not withdrawing its cannabis plants for sale in Germany
- Investors were unable to cash out in July after news breaks that staff are planning to strike
- The company says it has replaced Telegram, where it had been hosting communications, with an LCMed AG email as a point of contact. LCMed AG denies any involvement with Juicy Fields
- Cryptocurrency reporters note ‘suspicious’ movement of funds from the company
- The company is accused of fraud, with the Investor Times calling it a “textbook exit scam”
See the full timeline of events here.
Don’t miss Business of Cannabis: New York on Nov. 3
With adult-use sales on the horizon, New York is poised to take the West Coast’s place as the capital of cannabis. That’s why on November 3, 2022, Business of Cannabis and Prohibition Partners will host a one-day event for business leaders, policy makers and investors.
Meet your fellow cannabis industry pioneers for:
- Networking events
- Informative talks on industry trends
- Company presentations about what the future of the industry holds
Secure your early bird seat here.