The DEA indicates help for expanding cannabis study, a Florida healthcare marijuana licensing problem is sent the state’s Supreme Court for a prospective assessment, a Nevada judge freezes some permits for new recreational marijuana shops – and much more of the week’s best cannabis enterprise news.
DEA to up cannabis study
The U.S. Drug Enforcement Administration (DEA) announced it will increase scientific and healthcare study of marijuana, which could support the sector clear some extended-standing hurdles.
Despite the fact that no clear timeline was set for the study projects, the DEA mentioned it plans on proposing new regulations to oversee its marijuana study system ahead of deciding on 33 pending applications.
MJBizDaily takeaway: Study at the federal level is precisely what’s necessary to clarify the healthcare positive aspects of marijuana, according to quite a few sector watchers.
So far, considerably of the help for marijuana’s effectiveness in treating particular ailments has been anecdotal.
With scientific and healthcare evaluation to back up the useful outcomes of cannabis, healthcare and recreational marijuana providers could fight the anti-MJ stigma and attract much more buyers as they point to verified study.
It could also support efforts to eliminate cannabis off the Schedule 1 list.
Florida MMJ licensing case nearing conclusion
A court case that could open up new licensing possibilities in the quick-developing Florida healthcare cannabis marketplace is headed toward the state Supreme Court.
An appellate court denied the state’s request to rehear the matter, the News Service of Florida reported.
At the heart of the case is that Florida’s vertically integrated licensing structure is not constant with the language or intent of the voter-authorized constitutional amendment that legalized MMJ in 2016.
MJBizDaily takeaway: Six vertically integrated providers operate much more than 80% of Florida’s 155 dispensaries, according to the state’s Aug. 23 update.
Lifting restrictions would open the Florida marketplace to quite a few much more players – possibly even mom-and-pop shops – cannabis attorneys say.
Even so, it could nevertheless take a when.
The state Supreme Court has not decided but irrespective of whether to hear the case, and the most current court ruling offers regulators time to come up with a new licensing structure.
Nevada judge freezes some new recreational marijuana licenses
Just after 18 days of proof, a Nevada judge halted the licensing procedure for new adult-use cannabis retailers following siding with providers that argued the procedure was flawed.
Many days later, she gave the go-ahead to providers that won licenses late final year and underwent background checks.
MJBizDaily takeaway: It is unclear how quite a few of the 61 licenses awarded late final year will outcome in the capacity to open shops. State lawyers count on about 16 when other folks mentioned as quite a few as 3 dozen.
The new licensees will join the 65 retailers currently in operation statewide.
Other people that had been awarded licenses nevertheless require to fulfill particular needs and pass final inspections.
Through the testimony, quite a few corporations complained of losing income when the case was in limbo.
The judge’s ruling is anticipated to be appealed.
Washington state mulls MJ regulation alterations
Washington state officials are thinking about a number of crucial alterations to the state’s cannabis guidelines that would straight effect corporations.
The 3 crucial proposals would:
- Let modest, or Tier 1, cultivators to boost canopy square footage if they can prove they’re employing their allotted canopy space.
- Give the green light to household delivery of medically compliant marijuana.
- Boost minority ownership of cannabis providers.
MJBizDaily takeaway: Adjusting the canopy size for modest growers could advantage these with much less square footage and make them much more competitive against bigger operations.
Even so, the marketplace has been steadily oversupplied considering the fact that early on.
When the Washington State Liquor and Cannabis Board released its canopy report earlier this year, it showed most growers weren’t employing much more than 50% of the allotted canopy space.
That is presumably since the marketplace wasn’t robust adequate to make developing at capacity worth it.
House delivery could increase sales for the handful of growers delivering medically compliant solution, though the healthcare marketplace in Washington is severely restricted.
Monetary moves by cannabis giants
Quite a few mainstream providers have dipped their toes into the cannabis space, but handful of have produced moves like Altria and Constellation.
And the most current news from these two giants might have a broader effect on the function mainstream providers take on in the coming months.
Altria Group, which involves tobacco giant Philip Morris USA, confirmed that it is in talks with Philip Morris International (PMI) to re-merge the two organizations.
Alcohol giant Constellation Brands also had a warning, reporting that its $54.three million loss for the most current quarter was straight tied to its huge investment in Canopy Development.
MJBizDaily takeaway: These news products by themselves probably will not cease mainstream providers from thinking about investments in the marijuana sector, but they might serve as a cautionary tale relating to how considerably and what sorts of due diligence really should be undertaken.
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