Cannabis News
Arizona, Maryland, California, Massachusetts – Why Big Cannabis MSOs Are Closing Up Shop ASAP in Major States!
Published
11 months agoon
By
admin
In the midst of years marked by rapid expansion and recent swift exits, some of the nation’s leading cannabis multistate operators (MSOs) have continued to streamline their operations this year, as revealed in the latest update on the activities of several major MSOs in the country.
Over the past five months, two of the largest MSOs in the country, Trulieve Cannabis based in Florida and Cresco Labs based in Chicago, have withdrawn from state-legal cannabis markets. This strategic move reflects their ongoing efforts to fortify their balance sheets, a response to the challenging macroeconomic environment and the slow pace of federal cannabis reform. The cannabis industry eagerly anticipates widespread federal reform and an improvement in investor sentiment.
In the face of these challenges, MSOs have gradually withdrawn from demanding state markets over the past year, redirecting their focus to “optimise” operations in more lucrative markets. Cresco Labs, for example, confirmed its exit from Arizona and Maryland in recent months, emphasizing its commitment to a “Year of the Core” mandate. With retail operations spanning seven states, the company generated $191 million in revenue in the third quarter, offsetting divestments according to its latest earnings results.
Trulieve Cannabis, on the other hand, divested its three remaining California retail outlets this year and ceased operations in Massachusetts. During the company’s third-quarter earnings call, Trulieve CEO Kim Rivers highlighted the proactive steps taken to strengthen the balance sheet, streamline operations, and reduce inventory, positioning the company as a leaner organization heading into 2023.
Both companies expressed optimism about the potential impact of significant catalysts. A rescheduling of marijuana by the U.S. government is considered one of the most meaningful catalysts, with the potential to stimulate increased investor interest in the cannabis industry. Additionally, there is hope for the passage of the SAFER Banking Act in the U.S. Senate, a measure designed to protect financial institutions serving state-legal marijuana businesses from federal prosecution.
Despite this optimism, the prospects of the SAFER Banking Act in the House of Representatives face uncertainty, especially following the recent appointment of hard-right Republican Mike Jonson as the new speaker. Nonetheless, public support for marijuana legalization in the United States is at an all-time high.
Trulieve Cannabis and Cresco Labs Exit State Legal Cannabis Markets
In a significant development for the cannabis industry, two of the nation’s largest multistate operators (MSOs), Trulieve Cannabis and Cresco Labs, have executed strategic exits from state-legal cannabis markets over the past five months. This subheading delves into the motivations and implications behind these decisive moves, shedding light on the broader landscape shaped by economic challenges and the gradual pace of federal cannabis reform.
Trulieve Cannabis, headquartered in Florida, strategically divested its three remaining California retail outlets this year and ceased operations in Massachusetts. During the company’s third-quarter earnings call, Trulieve CEO Kim Rivers emphasized the proactive steps to strengthen the balance sheet, streamline operations, and reduce inventory. Explore the intricacies of Trulieve’s exit strategy and how these measures position the company as a more agile and efficient organization heading into 2023.
Based in Chicago, Cresco Labs confirmed its exit from Arizona and Maryland in recent months as part of its overarching strategy, termed the “Year of the Core.” This subheading delves into the details of Cresco Labs’ approach, emphasizing a commitment to core markets, stores, brands, and products. With retail operations spanning seven states and $191 million in revenue generated in the third quarter, discover how Cresco Labs aims to offset divestments and drive solid performance amidst industry challenges.
As these major players strategically withdraw from specific markets, the cannabis industry witnesses a nuanced shift in focus, with companies optimizing their portfolios and operations to navigate a dynamic and evolving landscape.
MSOs Shift Focus to Lucrative Markets Amid Industry Challenges
Amidst a challenging macroeconomic environment and the evolving landscape of federal cannabis reform, multistate operators (MSOs) have embarked on a strategic journey to optimize their operations. This subheading explores the overarching trend among MSOs, highlighting their gradual withdrawal from demanding state markets and redirection of focus towards more lucrative opportunities.
The past year has witnessed a paradigm shift in the approach of MSOs as they face challenges posed by the slow pace of federal cannabis reform. Delve into why MSOs choose to withdraw from demanding state markets and the industry-wide drive to “optimize” operations. Understand the factors influencing these strategic decisions, such as regulatory uncertainties and pursuing higher profitability.
Cresco Labs’ exit from Arizona and Maryland aligns with its declared “Year of the Core” mandate. Explore how the company strategically narrows its focus to core markets, stores, brands, and products. Assess the impact of this strategic shift on Cresco Labs’ overall performance, as reflected in its $191 million revenue in the third quarter, providing insights into the effectiveness of operational optimization strategies.
As MSOs adapt to the changing dynamics of the cannabis industry, this subheading unravels the broader narrative of operational optimization, shedding light on the rationale behind the industry’s strategic moves and the pursuit of sustained success in more favorable markets.
MSOs Anticipate Federal Reform and the SAFER Banking Act
Within the dynamic landscape of the cannabis industry, multistate operators (MSOs) are closely monitoring key catalysts that could potentially drive growth and reshape the sector. This subheading explores the optimism expressed by industry leaders Trulieve Cannabis and Cresco Labs regarding pivotal catalysts on the horizon.
Among the anticipated catalysts, the prospect of the U.S. government rescheduling marijuana holds significant promise. This section examines the potential impact of such a move on the cannabis industry, exploring how it could stimulate heightened investor interest and create a more favorable regulatory environment. Understand the implications of federal reform on MSOs’ strategies and market dynamics.
MSOs are optimistic about the potential passage of the SAFER Banking Act in the U.S. Senate. Unpack this legislative initiative’s details, which is designed to protect financial institutions from federal prosecution when serving state-legal marijuana businesses. Assess the potential implications for the cannabis industry’s financial landscape and the opportunities it could unlock for MSOs.
Despite optimism surrounding the SAFER Banking Act, uncertainties loom as recent political developments, including the appointment of hard-right Republican Mike Jonson as the new speaker, cast a shadow on its prospects in the House of Representatives. Explore the potential challenges and political dynamics that could impact the fate of this crucial legislation.
In the midst of these dynamic shifts, MSOs navigate a landscape shaped by the potential transformation of federal policies, highlighting the critical interplay between legislative decisions and the growth trajectory of the cannabis industry.
Bottom Line
In the midst of strategic exits by cannabis multistate operators (MSOs) such as Trulieve Cannabis and Cresco Labs, the industry faces a pivotal moment of transformation. Driven by the imperative to fortify balance sheets amid economic challenges and slow federal cannabis reform, MSOs are optimizing operations and redirecting focus to more lucrative markets. The anticipation of significant catalysts, including potential federal marijuana rescheduling and the passage of the SAFER Banking Act, infuses optimism despite uncertainties in the House of Representatives. As public support for marijuana legalization reaches unprecedented levels, the cannabis sector navigates a dynamic landscape, showcasing resilience and adaptability in the pursuit of sustained growth and industry evolution.
CANNABIS MULTI-STATE OPERATORS, READ ON…
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Latest Trump Weed Rumor – Trump Will Federally Deschedule and Decriminalize Cannabis, but Not Legalize It
Published
9 hours agoon
November 14, 2024By
admin
In a recent interview, former New Jersey Governor Chris Christie made headlines by asserting that President-elect Donald Trump will pursue significant reforms in federal policies regarding marijuana and cryptocurrency. As the nation grapples with evolving attitudes toward cannabis and the burgeoning digital currency market, Christie’s predictions have ignited discussions about the potential implications of such changes on both industries. This article delves into Christie’s insights, the current state of marijuana and cryptocurrency regulations, and the broader implications of these anticipated reforms.
The Current Landscape of Marijuana Legislation
Federal vs. State Laws
Marijuana remains classified as a Schedule I substance under the Controlled Substances Act (CSA), which places it in the same category as heroin and LSD. This classification has created a complex legal landscape where states have moved to legalize cannabis for medical and recreational use, while federal law continues to impose strict prohibitions. As of now, over 30 states have legalized marijuana in some form, leading to a burgeoning industry that generates billions in revenue.
Challenges Faced by the Cannabis Industry
Despite its legality in many states, the cannabis industry faces significant hurdles due to federal restrictions. These challenges include:
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Banking Access: Many banks are hesitant to work with cannabis businesses due to fear of federal repercussions, forcing these businesses to operate largely in cash.
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Taxation Issues: The IRS enforces Section 280E of the tax code, which prohibits businesses engaged in illegal activities from deducting normal business expenses, leading to disproportionately high tax burdens for cannabis companies.
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Interstate Commerce: The lack of federal legalization prevents cannabis businesses from operating across state lines, limiting their growth potential.
Chris Christie’s Perspective on Marijuana Reform
Christie, a former presidential candidate known for his tough stance on drugs during his tenure as governor, has evolved his views on marijuana over the years. In his recent statements, he emphasized that Trump is likely to pursue descheduling cannabis, which would remove it from the Schedule I classification. This move would not only provide clarity for businesses operating in legal markets but also open avenues for banking and investment.
Christie highlighted that descheduling would allow for a more regulated market where safety standards could be established, thus protecting consumers. He believes that this approach aligns with a growing consensus among Americans who support legalization and recognize the potential benefits of cannabis use for both medical and recreational purposes.
The Future of Cryptocurrency Regulation = The Rise of Cryptocurrencies
Cryptocurrencies have surged in popularity over the past decade, with Bitcoin leading the charge as the first decentralized digital currency. The market has expanded to include thousands of alternative coins (altcoins), each with unique features and use cases. As cryptocurrencies gain traction among investors and consumers alike, regulatory scrutiny has intensified.
Current Regulatory Challenges
The cryptocurrency market faces several regulatory challenges that hinder its growth and adoption:
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Lack of Clarity: Regulatory frameworks vary significantly across states and countries, creating confusion for investors and businesses.
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Fraud and Scams: The rapid growth of cryptocurrencies has led to an increase in fraudulent schemes targeting unsuspecting investors.
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Consumer Protection: Without clear regulations, consumers are often left vulnerable to risks associated with volatile markets.
Christie’s Vision for Crypto Regulation
Christie believes that under Trump’s leadership, there will be an effort to find a “sweet spot” for cryptocurrency regulation balancing innovation with consumer protection. He argues that overly stringent regulations could stifle growth in this emerging sector while too little oversight could expose consumers to significant risks.
In his view, a balanced regulatory framework would include:
1. Clear Definitions: Establishing clear definitions for different types of cryptocurrencies and tokens to differentiate between securities and utility tokens.
2. Consumer Protections: Implementing measures to protect investors from fraud while promoting transparency within the market.
3. Encouraging Innovation: Creating an environment conducive to innovation by allowing startups to thrive without excessive regulatory burdens.
Christie’s insights reflect a growing recognition among policymakers that cryptocurrencies are here to stay and that appropriate regulations are necessary to foster growth while safeguarding consumers.
Implications of Proposed Reforms
Economic Impact
The potential reforms proposed by Christie could have far-reaching economic implications:
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Job Creation: Legalizing marijuana at the federal level could lead to significant job creation within the cannabis industry—from cultivation and production to retail sales.
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Investment Opportunities: Descheduling cannabis would open up investment opportunities for institutional investors who have been hesitant due to federal restrictions.
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Boosting Local Economies: Legal cannabis markets have proven beneficial for local economies through increased tax revenues and job creation.
Similarly, clear regulations around cryptocurrencies could stimulate investment in blockchain technology and related industries, fostering innovation and economic growth.
Social Justice Considerations
Both marijuana legalization and sensible cryptocurrency regulations have social justice implications:
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Addressing Past Injustices: Legalizing marijuana could help rectify past injustices related to drug enforcement policies that disproportionately affected marginalized communities.
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Financial Inclusion: Cryptocurrencies offer opportunities for financial inclusion for those underserved by traditional banking systems, particularly in low-income communities.
Political Landscape
The political landscape surrounding these issues is complex. While there is bipartisan support for marijuana reform among certain lawmakers, challenges remain in overcoming entrenched opposition. Similarly, cryptocurrency regulation has garnered attention from both sides of the aisle but requires collaboration to establish effective frameworks.
Conclusion
Chris Christie’s predictions about President-elect Donald Trump’s approach to federal marijuana descheduling and cryptocurrency regulation suggest a potential shift in U.S. policy that could significantly reshape both industries. As public opinion evolves on these issues, lawmakers have an opportunity to enact meaningful reforms that promote economic growth while ensuring consumer protection. The anticipated changes could foster a more robust cannabis industry that contributes positively to the economy and addresses social justice concerns, while clear regulatory frameworks for cryptocurrencies could encourage innovation and protect consumers in the digital economy. Stakeholders in both sectors are closely watching these developments, eager to see how potential reforms might impact their futures. While the realization of Christie’s predictions remains uncertain, it’s clear that the conversation around marijuana and cryptocurrency regulation is ongoing and far from settled.
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Cannabis News
Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em
Published
1 day agoon
November 13, 2024By
admin
On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!
Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:
- Panelists:
- Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
- Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
- Fred Rocafort: Trademark attorney working closely with the cannabis team.
- Election Results Overview:
- Most 2024 cannabis ballot measures did not pass.
- Florida, South Dakota, and North Dakota saw failures.
- Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
- Federal and State-Level Developments:
- Medical use is currently legal in 38 states, and 24 states allow recreational use.
- Republican support for marijuana legalization is growing.
- Federal Policy Implications:
- Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
- Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
- International and Domestic Trade:
- Schedule III status could ease import/export restrictions on cannabis.
- Unified control of House, Senate, and presidency might expedite legislative progress.
- Economic and Industry Impact:
- Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
- Federal legalization and banking reforms are crucial for industry stability and growth.
- Future Outlook:
- The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
- State-level initiatives and regulatory developments will continue to shape the industry.
“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.
The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.
Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.
Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.
THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.
THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.
The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.
The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.
Detection Windows for Various Cannabis Drug Tests
Urine Tests
Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.
Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:
– Single-use (e.g., one joint): up to 3 days
– Moderate use (around 4 times a week): 5–7 days
– Chronic use (daily): 10–15 days
– Chronic heavy use (multiple times daily): over 30 days
Blood Tests
Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.
Saliva Tests
THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.
Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.
In areas where cannabis is illegal, saliva testing is often used for roadside screenings.
Hair Tests
Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.
Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.
Factors Affecting THC and Metabolite Retention
The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.
Other factors are specific to cannabis use, including:
– Dosage: How much you consume
– Frequency: How often you use cannabis
– Method of consumption: Smoking, dabbing, edibles, or sublingual
– THC potency: Higher potency can extend detection time
Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.
How Quickly Do the Effects of Cannabis Set In?
When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.
The psychoactive component THC produces a “high” with common effects such as:
– Altered senses, including perception of time
– Mood changes
– Difficulty with thinking and problem-solving
– Impaired memory
Other short-term effects can include:
– Anxiety and confusion
– Decreased coordination
– Dry mouth and eyes
– Nausea or lightheadedness
– Trouble focusing
– Increased appetite
– Rapid heart rate
– Restlessness and sleepiness
In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.
Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:
– Cognitive issues like memory loss
– Cardiovascular problems including heart disease and stroke
– Respiratory illnesses such as bronchitis or lung infections
– Mood disorders like depression and anxiety
Cannabis use during pregnancy can negatively impact fetal growth and development.
Duration of Effects
Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.
Bottom Line
The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.
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