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Has Medical Marijuana Already Priced Itself Out of the Cannabis Market?

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According to Cache Valley Daily, around 60% of Utah’s medicinal cannabis users obtain their cannabis from sources other than the state’s authorized market. The study, done by Cannabis Public Policy Consulting (CPPC) on behalf of the Utah Department of Agriculture and Food (UDAF), sheds light on accessibility issues in the state’s medicinal cannabis program.

 

Dr. Brandon Forsyth, Director of Industrial Hemp and Medical Cannabis at UDAF, emphasized the need of conducting annual market analyses to evaluate the performance of Utah’s Medical Cannabis program in guaranteeing patients’ access to vital treatment.

 

Surveying close to 200 medical cannabis patients, the study discovered that while monthly prices for medical cannabis products in Utah rank among the lowest in the nation, nearly a quarter of patients still seek products outside the state due to cost constraints within Utah.

 

Among those surveyed, 58% expressed satisfaction with the availability of medical cannabis within the state, while 41% indicated either limited or very limited access to products.

 

Statistics from the Marijuana Policy Project estimate approximately 71,850 registered medical cannabis patients in Utah.

 

Cost Concerns Drive Patients Out-of-State

 

A sizable fraction of patients are still drawn to unregulated sources by the appeal of cheaper rates, even in Utah, despite efforts to create a controlled market for medicinal cannabis. Although Utah has some of the lowest monthly costs in the US for medical cannabis products, according to a CPPC survey, over 25% of patients are forced to look for alternatives outside of their state because of financial limitations. This discrepancy calls into question the accessibility and cost of medicinal marijuana under Utah’s current legal system.

 

The decision to obtain cannabis from unregulated sources is often driven by the stark contrast in pricing between Utah’s legal market and neighboring jurisdictions. Patients facing high medical expenses may find the cost savings offered by unregulated sources to be a compelling factor in their decision-making process. Additionally, factors such as taxes and regulatory burdens imposed on legal dispensaries may contribute to the perception of inflated prices within the state, further incentivizing patients to explore alternative avenues.

 

Beyond the immediate financial considerations, patients may also perceive unregulated sources as more flexible and accommodating to their individual needs. While legal dispensaries adhere to strict regulations and may face limitations in product variety or availability, illicit channels may offer a wider range of options at potentially lower costs. This discrepancy highlights the importance of not only addressing price competitiveness but also ensuring that legal dispensaries can adequately meet the diverse needs of medical cannabis patients in terms of product selection and availability.

 

A multimodal strategy that puts price, accessibility, and regulatory compliance first is needed to address the problem of patients obtaining cannabis through unregulated channels. The regulated and uncontrolled markets may come closer together if regulatory procedures are made more efficient, legal dispensaries’ overhead expenses are decreased, and patient-centered pricing schemes are put into place. Utah’s medical cannabis program may aim to provide equitable access to safe and inexpensive treatment choices for all qualifying patients by addressing the underlying issues that lead patients to look for alternatives outside of the legal framework.

 

Mixed Perceptions of Supply Availability

 

The survey conducted by CPPC among Utah’s medical cannabis patients reveals a nuanced landscape of supply availability perception within the state. While a majority express satisfaction, a significant portion also report limited or very limited access to essential treatments. This disparity underscores the complexity of ensuring consistent and equitable supply distribution.

 

Uneven dispensary distribution across regions contributes to varied perceptions of accessibility. Patients in areas with more dispensaries may feel better served compared to those in underserved regions. Expanding the geographical reach of dispensaries could mitigate access discrepancies and ensure equitable distribution statewide.

 

Supply chain dynamics, including cultivation and distribution disruptions, impact product availability. Patients dependent on medical cannabis for health management may face heightened anxiety during shortages. Addressing these challenges requires robust infrastructure and proactive measures to ensure uninterrupted access to medication for all patients.

 

Growth in Patient Enrollment

 

Statistics from the Marijuana Policy Project show that Utah’s medical cannabis program has shown a steady increase in patient registration, with an estimated 71,850 registered medical cannabis patients. The state’s growing need for medicinal cannabis as a therapeutic alternative is shown by this spike in patient numbers. But in order to properly satisfy the growing demand, accessibility concerns must be addressed and a dependable supply chain must be maintained.

 

The expanding patient enrollment highlights the importance of proactive measures to enhance the accessibility and affordability of medical cannabis treatments. With a larger patient population relying on these medications to manage their health conditions, it becomes paramount to streamline regulatory processes, optimize supply chain logistics, and implement pricing strategies that cater to patients’ financial realities. By doing so, Utah’s medical cannabis program can better accommodate the evolving needs of its growing patient base.

 

In addition, the increasing number of patients enrolled emphasizes how important it is for industry players, patient advocacy organizations, and regulatory bodies to keep working together. Through communication and collaboration, Utah can better negotiate the intricacies of its medical cannabis environment, recognizing and resolving issues while optimizing the program’s advantages for patients throughout the whole state. In order to guarantee that Utah’s medical cannabis program is patient-centered, flexible, and responsive as it develops to meet the demands of its growing patient base, a cooperative approach will be essential.

 

Bottom Line

 

Utah’s medical cannabis program grapples with significant challenges, including patients seeking products from unregulated sources, varying perceptions of supply availability, and a growing number of registered patients. Resolving these issues demands a concerted effort to improve accessibility, affordability, and regulatory adherence within the state’s legal framework. By prioritizing patient-centric approaches and fostering collaboration among stakeholders, Utah can fortify its medical cannabis program to better cater to the diverse needs of its patient population. This entails streamlining regulatory processes, optimizing supply chain logistics, and implementing pricing strategies that align with patients’ financial realities. Through proactive measures and sustained cooperation, Utah can enhance the accessibility and effectiveness of its medical cannabis program, ensuring equitable access to safe and beneficial treatment options for all eligible patients across the state.

 

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How to Use CBD Isolate to Create Personalized Wellness Solutions

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Unlike full-spectrum or broad-spectrum CBD products, CBD isolate contains no other cannabinoids, terpenes, or flavonoids from the cannabis plant. This allows users to experience the effects of CBD without any potential interference from other compounds.

Of course, do not confuse CBD isolate, a raw material, with CBD isolate-based oil. CBD isolate-based oils are created by adding CBD isolate to the career oil, terpenes, and other bioactive compounds.

There are various ways to enjoy CBD isolate. Why? Because it is CBD in its purest and safest form. Pure CBD isolate can be used to create different CBD products for different needs, making it quite a versatile product yet very safe.

What is CBD Isolate?

CBD isolate is the purest form of CBD available, usually comprising over 99% cannabidiol. It comes in a crystalline powder or solid form, which is odourless and tasteless.

The extraction process involves isolating CBD from the cannabis plant and removing all other compounds, including THC (tetrahydrocannabinol), the psychoactive component of cannabis. This makes CBD isolate an ideal choice for those who want to avoid any THC content altogether.

Benefits of CBD Isolate

CBD isolate is good for beginners and experienced users alike. It has all the health benefits of CBD. Thus, it is good for reducing stress and pain relief, enhancing sleep quality, reducing anxiety, countering inflammation, boosting brain health, and more.

Since isolate is CBD in its purest form, beginners are least likely to experience any side effects. Thus, CBD isolate is one of the best ways to get started with CBD use.

However, CBD isolate is also good for advanced users. This is because it allows the creation of different CBD products. Here, options are endless and limited by one’s imagination. One can add CBD isolate to foods, oils, topicals, and more. One can create different personalized CBD solutions.

How to Use CBD Isolate

Methods of Consumption

CBD isolate is incredibly versatile and can be consumed in several ways, depending on your preferences and desired effects.

Sublingual Use

One of the simplest and most effective methods of consuming CBD isolate is to place it directly under your tongue. This method, known as sublingual administration, allows the CBD to be absorbed quickly into the bloodstream through the mucous membranes in the mouth.

Steps:

  • Measure the desired amount of CBD isolate using a milligram scale.

  • Place the isolate under your tongue.

  • Hold it there for about 60-90 seconds before swallowing.

One of the issues with the above method could be that not everyone may find dosing CBD isolate easy. In such a case, consider taking CBD oil, as mentioned later in the article.

Mixing with Food and Beverages

CBD isolate can be easily incorporated into your daily diet by mixing it with food and drinks. It’s a convenient way to enjoy the benefits of CBD without altering your routine significantly.

Ideas:

  • Smoothies: Add CBD isolate to your morning smoothie for a wellness boost.

  • Baked Goods: Incorporate CBD isolate into your favourite baking recipes.

  • Coffee and Tea: Stir CBD isolate into your coffee or tea.

Creating CBD Oil

You can create your CBD oil at home by dissolving CBD isolate in a carrier oil like MCT, olive, or hemp seed oil. This DIY method allows you to customize the concentration and use the oil in various applications.

Here is a pro tip to create a more potent and personalized solution. When creating CBD oil, you can also mix terpenes into it. This may help boost its health benefits. Alternatively, for different health benefits, consider adding essential oils to CBD oil, like lavender, peppermint, tea tree oil, and eucalyptus.

Topical Application

CBD isolate can be mixed with lotions, creams, or balms to create topical products that can be applied directly to the skin. This method is particularly effective for localized relief of pain and inflammation. Topical CBD is also sebostatic, which means it is good for managing oily skin and preventing infections and acne.

Steps:

  • Measure the desired amount of CBD isolate.

  • Mix it thoroughly with your preferred lotion or cream.

  • Apply to the affected area as needed.

Determining the Right Dosage

Finding the right dosage of CBD isolate can be a personal journey, as it varies based on factors like body weight, metabolism, and the specific condition being treated. It’s generally recommended to start with a low dose and gradually increase until you achieve the desired effects.

Tips:

  • Start Small: Begin with a dose of 5-10 mg of CBD isolate.

  • Monitor Effects: Keep track of how you feel after each dose.

  • Adjust Gradually: Increase the dosage in small increments until you find what works best for you.

Creating Personalized Wellness Solutions

Yet another way to create personalized wellness solutions is to identify wellness goals. For one person, it may be skin health; for another, stress reduction. For others, it may be pain relief. One can create personalized solutions based on the requirements.

Thus, if the issue is skin health, like acne, then one may make a topical cream or solution and also use CBD isolate sublingually for a sebostatic effect.

However, if the purpose is relaxation or anxiety reduction, one may use a higher CBD dosage and may combine it with essential oils like lavender for greater anxiolytic impact.

Tracking Progress and Adjusting

Monitoring your progress is crucial in creating an effective and personalized CBD wellness plan. Keep a journal to record your dosages, methods of consumption, and the affects you experience. This will help you fine-tune your approach and adjust as needed.

To enjoy CBD, isolate safely, stick to the routine, be consistent in its use, and do not overdose. However, it is fine to correct the dosage or increase it based on personal experience.

The Bottom Line

CBD isolate offers a pure, versatile, and customizable way to incorporate the benefits of CBD into your wellness routine. By understanding your wellness goals, selecting the correct consumption methods, and personalizing your approach, you can create effective and tailored solutions to enhance your health and well-being.

Remember to source high-quality CBD isolate, monitor your progress, and adjust as needed to achieve the best results. With thoughtful integration, CBD isolate can become a powerful tool in your personalized wellness toolkit.

 

ISOLATE OR FULL SPECTRUM, READ ON…

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What is Cannabis Poisoning? – CNN Makes Up a New Reefer Madness Term

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What is Cannabis Poisoning? – CNN Makes Up a New Reefer Madness Term No One Ever Heard of Before!

 

What is a poison? According to Dictionary.com:

a substance that is capable of causing the illness or death of a living organism when introduced or absorbed.

“he killed himself with poison”.

 

The Mayo Clinic defines poisoning as:

Poisoning is injury or death due to swallowing, inhaling, touching or injecting various drugs, chemicals, venoms or gases. Many substances — such as drugs and carbon monoxide — are poisonous only in higher concentrations or dosages. And others — such as cleaners — are dangerous only if ingested. Children are particularly sensitive to even small amounts of certain drugs and chemicals.

 

CNN recently upped their anti-pot rhetoric by claiming a new term, “cannabis poisoning”, have tripled in older adults, in this case, in Canada.

 

Since no one has ever died from cannabis, as in an overdose or ingesting too much, CNN must be referring to the “injury” part of the poisoning definition that the Mayo Clinic describes.

 

What injuries has cannabis caused in the human body to be classified as poisoning.  Greening Out, a common term for ingesting too much THC that leads to paranoia, possible hallucinating, and a great night sleep, is as far a stretch from “poisoning” as the cannabis industry gets. Yes, people using cannabis can do acts under the aspis of being “high”, walking into walls, falling down stairs, etc. that can cause injury, but that would be injuries under the influence, not poisoning injuries.

 

CHS, or cannabinoid hyperemesis syndrome, is a longer-term reaction that a small percentage of habitual cannabis users can develop when their bodies have large amounts of THC in their liver and kidneys to flush. Usually taking a 10-day break, or up to a month, can solve most CHS issues.

 

These would be considered a toxicity problem, not a poison problem.

 

CNN, notoriously famous for anti-cannabis, clickbait headlines and brash statements about the “dangers” of cannabis, hit a new low with creating a new term, “cannabis poisoning”. It is a misleading term medically to say the least, let alone the implication that a serious poisoning of weed could lead to death or serious injury.  Neither of which has ever happened in 5,000 years of humans using the cannabis plant.

 

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The 3 Biggest Winners from Rescheduling Cannabis?

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President Joe Biden’s support of the administration’s decision to reschedule cannabis from Schedule I to Schedule III is likely to result in considerable financial benefits for large, legal cannabis businesses and the illicit market. This action may lessen the restrictions imposed by IRS tax regulation 280E, which has banned cannabis businesses from deducting standard business expenditures. Which cannabis firms will gain the most from this change?

 

The illicit market will get a huge boost by removing the punshiments associated with getting caught dealing or transporting a Schedule 1 drug.  Now that the fines, prison sentences, and desire to enforce Schedule 3 crimes is lessened, look for the illicit market to boom across America.  It is estimated that the illegal cannabis market is 3x the size of the legal US market as of 2024, so look for that multiple to expand if Schedule 3 is enacted.  Removing a negative incentive in economics always leads to predictable action.

 

In the legal market, the largest MSOS, or those that paid the most taxes, have the most to gain by a repeal of the 280E tax code and future tax credit or refunds coming their way

 

Industry Leaders in Tax Payments

 

Rescheduling cannabis will abolish the onerous 280E tax law, potentially freeing up more than a billion dollars in tax savings for the business. Curaleaf (OTC: CURLF) and Trulieve (OTC: TCNNF), both of which make considerable tax payments, are among the firms most likely to profit. Repealing 280E limits would allow these businesses to deduct typical business costs, greatly improving their financial situation.

Truelive alone stands to get $113,000,000 in tax refunds and savings!

Senior analyst Pablo Zuanic of Zuanic & Associates believes that these tax reductions may result in improved cash flows, allowing these businesses to reinvest in development and growth. In the quickly changing cannabis market, having this kind of financial flexibility is essential for keeping a competitive advantage and encouraging creativity.

 

Zuanic has consistently highlighted the disparity between current market valuations and the potential upside, particularly if federal legalization occurs. He emphasizes that immediate cash flow improvements could lead to substantial revaluation of these companies. By enabling the deduction of ordinary business expenses, the financial statements of these companies would more accurately reflect their true profitability, attracting more investors and boosting market confidence.

 

The potential tax savings are a temporary relief and a game-changer for the industry. Analysts believe that the improved cash flow could result in substantial revaluations of cannabis companies. For Curaleaf and Trulieve, this change would mean their financial statements would better represent their actual profitability, leading to increased investments and further expansion opportunities.

 

Curaleaf’s Financial Outlook

 

Beacon Securities’ Russell Stanley sheds light on Curaleaf’s financial landscape, highlighting the company’s adept management of operating cash flow. This proficiency facilitated a successful debt repurchase post-quarter, significantly enhancing its financial stability. With the anticipated rescheduling of cannabis and the potential enactment of the SAFER Banking Act, Curaleaf stands to benefit from a transformed financial environment, potentially witnessing a substantial surge in its operating cash flow by up to 92% and free cash flow by 188%.

 

Wedbush Securities recently released a report on Curaleaf, elevating the stock’s 12-month price target from $6.00 to $7.00 while maintaining a buy recommendation. The report underscores Curaleaf’s commendable performance in key domestic markets like Connecticut, Arizona, Maryland, and New York. Projections indicate a revenue uptick to $1.50 billion by 2025, coupled with improvements in overall profitability. This optimistic forecast reflects the company’s robust financial position and its strategic market presence.

 

Proactive debt management techniques and well-thought-out market positioning highlight Curaleaf’s potential for long-term development and financial success in the changing cannabis industry. Curaleaf is in a strong position to benefit from the rescheduling of banking and cannabis legislation, which may lower regulatory obstacles and further establish the company’s leadership in the cannabis market.

 

Unlocking Trulieve’s Growth Potential

 

Trulieve’s Growth Trajectory

 

Trulieve’s growth trajectory is drawing attention, particularly from Needham’s Matt McGinley, who emphasizes the company’s operational efficiency. McGinley points out that Trulieve has achieved its highest gross margin and EBITDA rates observed in over two years, indicating strong operational performance. This efficiency positions Trulieve favorably for capitalizing on emerging opportunities in the cannabis market.

 

Key legislative advancements in pivotal markets such as Florida and Pennsylvania present significant growth potential for Trulieve. As these markets potentially transition to adult-use cannabis, Trulieve stands to benefit from increased demand and expanded market reach. Leveraging its operational efficiency and established market presence, Trulieve is poised to capitalize on these legislative shifts to drive revenue growth and enhance shareholder value.

 

Trulieve is positioned to be a major participant in the growth of the cannabis sector due to its strategic focus on operational excellence and its flexibility in responding to changing regulatory environments. Trulieve is in an excellent position to maintain its growth trajectory and establish itself as a top cannabis supplier, thanks to encouraging legislative changes and a proven track record of high performance.

 

Analysts’ Industry Impact Assessment

 

Viridian Capital Advisors offers insights into the industry impact, noting that ten MSOs exceeded EBITDA estimates by $37 million in the first quarter of 2024. This performance suggests that initial projections may have been conservative, indicating a positive trend for cannabis companies. Analysts from Viridian specifically highlight Curaleaf and Trulieve, among others, as poised to benefit from the financial changes resulting from the removal of 280E tax restrictions.

 

The long-term outlook for the cannabis industry remains bullish, with potential federal legalization driving substantial valuation growth. Pablo Zuanic from Zuanic & Associates suggests that the US market alone could justify over $110 billion in valuations by 2030 assuming federal legalization. The removal of tax restrictions would directly impact bottom lines, potentially leading to significant valuation increases for many cannabis stocks.

 

All things considered, the possible repeal of the 280E tax laws offers cannabis businesses a big chance to improve their financial standing and market value. As analysts speculate that early projections may have overestimated the sector’s potential, businesses like Curaleaf and Trulieve might gain from more cash flow and better profitability, setting them up for long-term success in the changing cannabis market environment.

 

Bottom Line

 

The impending rescheduling of cannabis and the potential repeal of IRS tax regulation 280E offer a substantial opportunity for cannabis companies to strengthen their financial positions and market appeal. Industry leaders such as Curaleaf and Trulieve stand to benefit significantly, with projected increases in cash flow and profitability paving the way for sustained growth. Analysts anticipate a positive market response, with potential valuation growth and a bullish outlook for the long-term trajectory of the cannabis industry. These regulatory changes mark a pivotal moment, allowing businesses to capitalize on newfound financial flexibility and attract investor confidence. As the sector continues to evolve, Curaleaf, Trulieve, and other key players are positioned to thrive, driving innovation and shaping the future of the cannabis market.

 

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