Cannabis News
Canada Admits Why the Illicit Cannabis Market is Crushing Their Legal Market -Lower Prices, Better Selection, and Convenience!
Published
10 months agoon
By
admin
Despite Canada’s legalization of marijuana for adult use more than five years ago, according to a recent analysis from Deloitte Canada, sales of cannabis remain mostly concentrated in the illegal market, accounting for anything between 25% and 50% of the entire market.
The paper explores the distinctions between the legal and illegal cannabis marketplaces and poses relevant issues about product offers, pricing, and operational tactics. 624 legitimate adult-use marijuana outlets and 57 illegal ones were the subject of an analysis by Deloitte and its data partner Neobi.
Christopher McGrath, senior manager at Deloitte Canada and the report’s author highlighted two key findings: the convergence of prices and the audacity of illicit online platforms. Illicit websites were found to offer nearly double the product variety compared to legal retailers.
On average, regulated recreational stores stocked 538 different products per store, whereas illicit operators boasted an average of 918 SKUs. McGrath pointed out that the illicit market enjoys a significant competitive edge due to fewer regulations, pricing flexibility, simpler and cheaper production processes, and the use of pesticides.
He emphasized the upcoming Cannabis Act review, due by the end of March, as an opportunity to address industry challenges. The report also seeks insights from experts across Canada to understand why the country’s cannabis market is not flourishing as expected.
Delayed Tax Payments Pose Challenges for Competing LPs
Beena Goldenberg, CEO of Organigram Holdings in Toronto, highlights the struggles facing many licensed producers (LPs) in the current industry landscape.
Amidst challenges to achieve profitability, LPs are often forced to prioritize payments to suppliers, bills, and employees over excise duties. Unfortunately, for numerous cannabis companies, excise duties frequently fall to the bottom of the list of payables.
This situation is exacerbated by the Canada Revenue Agency’s (CRA) lack of enforcement in excise collection in recent years, creating an uneven playing field within the industry. LPs in arrears are utilizing excise duties collected from provincial wholesalers as a source of funding, effectively using the Canadian government as a financing mechanism.
This unfair advantage gives delinquent LPs, unlike those promptly paying taxes like Organigram, the ability to leverage excise payables for cash flow. Goldenberg emphasizes the importance of consistent penalties, payment plans, and enforcement in tax policy to facilitate industry consolidation, ultimately bolstering a thriving legal market.
Success in the Legal Cannabis Market: Lessons Learned
Julia Cameron, Vice President of Communications at Pure Sunfarms in Vancouver, British Columbia, sheds light on the positive aspects of the cannabis industry amidst its complexities and challenges.
While acknowledging the hurdles, Cameron emphasizes the importance of recognizing the bright spots in profitability, performance, and productivity. She points out that those achieving success have done so through strategic and measured approaches, rather than haphazard spending.
Successful players in the market have adopted prudent capital utilization, maintained careful cash flow management, made strategic investments, and employed thoughtful product segmentation strategies. They have also capitalized on the expertise of seasoned operators who understand navigating regulations, economic shifts, and tight profit margins.
Additionally, successful businesses have remained grounded in reality, avoiding overly optimistic market assumptions and setting achievable goals. They have also embraced collaboration, fostering open communication with government entities, regulators, and even competitors.
Cameron concludes by urging industry participants to consider these principles as they strive to build thriving cannabis businesses.
The Legal Cannabis Market Falls Short of Expectations
Tamara Lovi, Chief Business Officer at Rose LifeScience and Board Treasurer of the Cannabis Council of Canada (C3) in Montreal, highlights a significant gap between expectations and reality in the regulated cannabis market.
Approximately five years ago, prior to legalization, there was an assumption that the legal market size would reach approximately CA$ 10 billion. However, the current reality falls short of this projection, with the market only surpassing halfway.
While the legal market continues to expand annually, businesses that heavily invested based on the expectation of reaching CA$10 billion are facing sustainability challenges. Lovi points out that excise tax, which was anticipated to represent around 10% of gross sales, now accounts for approximately 30%, significantly impacting licensed producers’ profit margins.
Limited resources are available for licensed manufacturers to operate, adhere to laws, compete with illegal market prices, or reinvest in their enterprises as a result of this increased tax burden. Consequently, in order to stay lucrative, licensed manufacturers must innovate and simplify their operations; many are fighting just to survive.
In order to reduce the booming presence of the illegal market and to allow the legal sector to reach its full potential, Lovi highlights the urgent necessity for excise tax reform.
The Legal Cannabis Market Falls Short of Expectations
Tamara Lovi, Chief Business Officer at Rose LifeScience and Board Treasurer of the Cannabis Council of Canada (C3) in Montreal, highlights a significant gap between expectations and reality in the regulated cannabis market.
Approximately five years ago, prior to legalization, there was an assumption that the legal market size would reach approximately CA$ 10 billion. However, the current reality falls short of this projection at roughly CA$5 billion a year, with the market only surpassing halfway
While the legal market continues to expand annually, businesses that heavily invested based on the expectation of reaching CA$10 billion are facing sustainability challenges. Lovi points out that excise tax, which was anticipated to represent around 10% of gross sales, now accounts for approximately 30%, significantly impacting licensed producers’ profit margins.
Limited resources are available for licensed manufacturers to operate, adhere to laws, compete with illegal market prices, or reinvest in their enterprises as a result of this increased tax burden. Consequently, to stay lucrative, licensed manufacturers must innovate and simplify their operations; many are fighting just to survive.
In order to reduce the booming presence of the illegal market and to allow the legal sector to reach its full potential, Lovi highlights the urgent necessity for excise tax reform.
Bottom Line
The analysis and insights provided by industry experts paint a complex picture of Canada’s cannabis market. Despite legalization, significant challenges persist, with the illegal market continuing to thrive alongside legal retailers. Key issues such as delayed tax payments, regulatory burdens, and pricing differentials pose barriers to the growth of legal cannabis businesses. However, clear success strategies are emerging, including prudent financial management, strategic investments, and collaboration with stakeholders. Moving forward, addressing these challenges and fostering a supportive regulatory environment will be essential to realizing the full potential of Canada’s legal cannabis market.
CANADA TRIES TO SLOW THE ILLICIT MARKET, READ ON…
HEALTH CANADA TRIES TO CURTAIN THE ILLEGAL MARIJUANA MARKET!
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25 Billion Reasons (and Counting) on Why Big Pharma Hates Marijuana Legalization
Published
11 minutes agoon
December 25, 2024By
admin
Real Reason Pharma Hates Weed
Sometimes I forget that not everyone has the same relationship with cannabis as I do. After spending over two decades researching, writing about, and experiencing the medical benefits of this remarkable plant, it’s become as normal to me as taking a daily vitamin. Cannabis is simply part of my wellness toolkit – a natural remedy that promotes balance and healing in ways that continue to amaze me.
But then I catch myself. I remember that for most of the world, cannabis still lurks in the shadows of illegality. Despite the growing wave of legalization, countless people remain in the dark about its therapeutic potential, their understanding clouded by decades of propaganda and misinformation.
Much of this ignorance can be traced back to Big Pharma’s influence over mainstream media and medical research. Through carefully crafted narratives and cherry-picked studies, they’ve painted cannabis as nothing more than a dangerous drug of abuse – just some “hippie grass” with no real medical value. It’s a masterful stroke of corporate manipulation that has kept millions from exploring this ancient medicine.
However, the truth has a way of emerging, especially in our digital age. Recent studies are painting a very different picture of cannabis – one that has pharmaceutical executives breaking out in cold sweats. Not only is cannabis proving effective for a wide range of conditions, but it’s also leading patients to reduce or eliminate their dependence on prescription medications.
Today, we’re going to explore these groundbreaking findings and expose the real reason Big Pharma is terrified of cannabis legalization. When you see the data on how this simple plant is impacting their bottom line, you’ll understand why they’ve fought so hard to keep it illegal.
So grab your favorite strain (if you’re in a legal state, of course), and let’s dive into the fascinating world of medicinal cannabis. What you’re about to learn might just change how you think about this controversial plant – and the companies trying to keep it out of your hands.
A groundbreaking yearlong study just published in the Journal of Pain and Palliative Care Pharmacotherapy has caught my attention, and believe me, it should catch yours too. The research followed 96 patients over 12 months, tracking their experiences with prescribed medical cannabis for chronic pain and mental health conditions. What they found wasn’t just impressive – it was downright revolutionary.
Let’s dive into the numbers, shall we? Within the first six months, patients reported significant pain reduction and improved mental well-being that continued throughout the entire year. We’re not talking about minor improvements here – a whopping 91% of participants reported their pain was “at least a little better,” with 75% declaring it was either “much better” or “very much better.”
But here’s where things get interesting, especially if you’re a pharmaceutical executive. By the study’s end, 55% of participants had reduced their prescription pain medication use, and 45% had cut back on over-the-counter pain medicines. The side effects? Mostly just dry mouth and sleepiness. Compare that to the novel-length list of potential complications from typical prescription pain medications.
And this isn’t an isolated finding. A separate review published in Cureus found that cannabinoids provided significant relief from chronic pain (33% versus 15% with placebo) with “minimal to no side effects.” The researchers went so far as to call it a “life-changing alternative” to conventional pharmaceuticals.
Another recent study revealed that 57% of patients with chronic musculoskeletal pain found cannabis more effective than their other analgesic medications, with 40% reducing their use of traditional painkillers after starting cannabis. The American Medical Association’s own research showed “significant improvements” in quality of life for people with chronic conditions like pain and insomnia, with effects “largely sustained” over time.
See the pattern emerging? Across multiple studies, we’re consistently seeing two things: cannabis works, and when it works, people need fewer pharmaceutical drugs. This isn’t just about pain medication either – patients reported decreasing their use of medications for depression, anxiety, and sleep problems too.
For those of us who understand cannabis, these findings aren’t surprising. But for Big Pharma, they’re absolutely terrifying. When half your patient base starts reducing their medication use by 40-55%, that’s not just a dent in profits – it’s a crater.
But here’s the kicker: the numbers I’ve just shared with you are just the tip of the iceberg. In our next segment, we’re going to translate these percentage drops in medication use into cold, hard cash. We’ll see exactly why pharmaceutical companies are spending millions lobbying against cannabis legalization, and trust me, when you see the figures, you’ll understand why they’re sweating.
Because let’s be honest – this isn’t about patient welfare anymore. It’s about protecting profit margins. And nothing threatens those margins quite like a plant people can grow in their backyard.
Let’s put these numbers into perspective, shall we? When we look at just one category of pharmaceutical drugs – say, prescription pain medications – we’re talking about a market worth over $25 billion annually. Now, imagine watching 40-55% of your customers walking away, choosing instead to use a plant they might be growing next to their tomatoes. That’s the nightmare Big Pharma is facing.
Research indicates that pharmaceutical companies lose approximately $10 billion annually in states with medical marijuana programs. And that’s just the tip of the proverbial iceberg. As more states legalize and more people discover cannabis’s therapeutic potential, these losses are projected to grow exponentially.
But here’s what really keeps pharmaceutical executives up at night: they can’t monopolize cannabis like they do with their synthetic drugs. Sure, they can create cannabis-based medications (and they are), but they can’t patent the plant itself. Mother Nature, in her infinite wisdom, made cannabis remarkably easy to grow and process.
Think about it – any moderately skilled home grower can produce a variety of cannabis medicines right in their backyard. Want to make a topical salve for arthritis? Just infuse some cannabis in coconut oil. Need something for sleep? You can make your own tincture. Looking for anti-inflammatory benefits without the high? Raw cannabis juice or leaves will do the trick. No pharmaceutical company required.
This accessibility terrifies Big Pharma because it completely circumvents their carefully controlled production and distribution systems. You don’t need a sophisticated laboratory or millions in equipment to create effective cannabis medicine. You need soil, water, sunlight, and a little knowledge passed down through generations of growers.
Even more threatening is cannabis’s versatility. One plant can potentially replace multiple medications. A patient might use cannabis to manage their chronic pain (goodbye opioids), help them sleep (see ya, Ambien), and ease their anxiety (farewell, Xanax). That’s three revenue streams dried up from a single plant growing in someone’s garden.
And let’s not forget about raw cannabis consumption – a method that completely bypasses the need for processing altogether. Raw cannabis contains THCA and CBDA (the acidic precursors to THC and CBD), along with hundreds of other beneficial compounds including terpenes and flavonoids. These compounds offer significant therapeutic benefits without any psychoactive effects, essentially giving patients a nutrient-dense superfood that doubles as medicine.
This is the real reason behind Big Pharma’s anti-cannabis stance. It’s not about safety concerns or public health – it’s about protecting their bottom line from a plant that threatens their entire business model. Cannabis represents everything they fear: a natural, effective medicine that people can grow themselves, process in their kitchens, and use to treat multiple conditions without ever stepping foot in a pharmacy.
No wonder they’re spending millions on lobbying against legalization. When your profit margin is threatened by a plant that literally grows like a weed, you’ve got a serious problem on your hands.
JG
Now let’s write a 350-word conclusion entitled, “The Sticky Bottom Line”
In this segment focus on:
* I believe that everyone should have access to medicine they can grow. I even favor people growing their own opium, coca plant, psychedelic mushrooms, etc. This all in the name of bodily autonomy.
* Getting people off pharmaceuticals and taking health into their own hands is one of the best things that could happen for humanity.
* The science backs cannabis as a medicine, and each day that we continue to stall on making it widely available to people in need, is another day we perpetuate suffering for no reason other than greed.
Here’s a 350-word “Sticky Bottom Line” conclusion:
Let me be perfectly clear about where I stand: I believe every human being should have the right to grow their own medicine. Whether it’s cannabis, poppies, coca plants, or mushrooms, bodily autonomy means having sovereignty over your own consciousness and the ability to manage your own health. The idea that we need corporate gatekeepers to mediate our relationship with plants that have been used medicinally for thousands of years is not just absurd – it’s morally reprehensible.
The evidence we’ve explored today paints a crystal clear picture: cannabis works. It helps people manage pain, reduces anxiety, improves sleep, and allows countless patients to reduce or eliminate their dependence on pharmaceutical drugs. This isn’t just anecdotal anymore – it’s backed by rigorous scientific research. Yet millions still suffer needlessly because an industry more concerned with profits than patients continues to obstruct access to this healing plant.
Every day we delay full cannabis legalization, we’re choosing to prioritize corporate profits over human welfare. We’re forcing people to remain dependent on expensive, often addictive medications when they could be growing a safer alternative in their backyard. We’re maintaining a system where healthcare is a privilege rather than a right, where healing is commodified and monetized rather than democratized and accessible.
The shift away from pharmaceutical dependence toward natural, self-grown medicine represents one of the most significant opportunities for improving human health and wellbeing in our lifetime. It’s not just about cannabis – it’s about reclaiming our right to heal ourselves, to make informed choices about our health, and to access the therapeutic tools nature has provided us.
The science is clear. The benefits are proven. The only thing standing between millions of people and potential relief is a profit-driven system that values patents over patients. It’s time to choose: will we continue to support a system that prioritizes profits over people, or will we finally embrace the healing power of plants that grow freely under the sun?
The choice, like the bottom line, is sticky indeed.
Inspiration: https://www.marijuanamoment.net/medical-marijuana-improves-chronic
-pain-and-mental-health-symptoms-while-reducing-prescription-drug-use-study-shows/
BIG PHARMA BLOCKING MARIJUANA LEGALIZATION, READ ON…
Cannabis News
How Do You Stop Lab-Shopping for the Highest THC Results?
Published
23 hours agoon
December 24, 2024By
admin
In a decisive move aimed at bolstering consumer safety and ensuring the integrity of cannabis products, Massachusetts regulators have mandated that all cannabis products must undergo testing at a single, licensed laboratory. This new regulation comes in response to the growing issue of “lab shopping,” where cannabis producers seek favorable testing results by sending their products to multiple laboratories. The Massachusetts Cannabis Control Commission (CCC) announced this significant regulatory change after extensive consultations with industry stakeholders, public health officials, and consumer advocates.
This article explores the implications of this regulation for the cannabis industry, consumers, and public health. It also examines the broader context of cannabis regulation in Massachusetts and the potential impact of this decision on the future of the state’s cannabis market.
Understanding Lab Shopping
What is Lab Shopping?
Lab shopping refers to the practice where cannabis producers send their products to various testing laboratories in search of the most favorable results. Producers may choose labs based on their reputation for leniency or their history of providing positive results. This behavior can lead to significant discrepancies in product safety assessments and quality assurance.
The Risks Associated with Lab Shopping
1. Consumer Health Risks: The primary concern surrounding lab shopping is the potential risk it poses to consumer health. Inconsistent testing results mean that products containing harmful contaminants—such as pesticides, heavy metals, or mold—may be sold without proper scrutiny. This can lead to serious health issues for consumers who unknowingly purchase tainted products.
2. Market Integrity: Lab shopping undermines the integrity of the legal cannabis market. When consumers cannot trust that products have been tested rigorously and uniformly, it erodes confidence in legal cannabis sales and can drive customers back to illicit markets where safety standards are nonexistent.
3. Regulatory Challenges: For regulators like the CCC, lab shopping complicates enforcement efforts. It becomes increasingly difficult to monitor compliance when producers can easily switch labs to obtain favorable results, making it challenging to ensure that all products meet established safety standards.
The Regulatory Response
The Role of the Cannabis Control Commission (CCC)
The Massachusetts Cannabis Control Commission is tasked with regulating the state’s cannabis industry. As part of its mandate, the CCC has worked diligently to establish a comprehensive regulatory framework that governs various aspects of cannabis production and sale. However, as the industry has evolved, so too have the challenges associated with ensuring product safety and quality.
In light of growing concerns about lab shopping and its implications for public health and safety, the CCC recognized the need for a more robust regulatory framework. After extensive discussions with industry stakeholders and public health officials, the commission concluded that a single-lab testing requirement was necessary to address these issues effectively.
Implementation of Single-Lab Testing
In late 2023, following thorough deliberation and stakeholder engagement, the CCC announced its new regulation mandating that all cannabis products must be tested by a single licensed laboratory before they can be sold to consumers. This decision aims to achieve several key objectives:
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Standardize Testing Protocols: By requiring that all products be tested by a single lab, regulators can ensure that all products are subject to consistent testing standards. This uniformity is crucial for maintaining product quality and safety across the market.
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Enhance Accountability: A single-lab requirement makes it easier for regulators to hold laboratories accountable for their testing practices. If discrepancies arise in testing results, it will be clear which laboratory conducted the tests, facilitating more straightforward investigations.
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Improve Consumer Confidence: With consistent testing results across all products, consumers can feel more secure in their purchases. This increased confidence is vital for fostering a healthy legal cannabis market in Massachusetts.
Implications of Single-Lab Testing
For Producers
1. Increased Accountability: Producers will need to establish relationships with specific laboratories and ensure that their products meet stringent quality standards before submission for testing. This shift will require producers to invest more in quality control measures throughout their production processes.
2. Potential Cost Implications: While single-lab testing may streamline processes for some producers, it could also lead to increased costs if producers are required to pay higher fees for comprehensive testing services. Smaller producers may find it particularly challenging to absorb these costs.
3. Adaptation Period: Producers will need time to adjust their operations and supply chains to comply with this new regulation. This may involve reevaluating partnerships with existing labs or investing in new quality control measures.
4. Impact on Product Development: The requirement for single-lab testing may also influence how producers develop new products. With fewer laboratories available for testing, producers may need to plan their product launches more carefully and allow additional time for testing processes.
For Laboratories
1. Increased Demand for Services: Licensed laboratories may experience an increase in demand as producers consolidate their testing needs with fewer facilities. This could lead to higher revenues for labs but also increased pressure on them to maintain high-quality standards amidst growing workloads.
2. Need for Enhanced Capabilities: Laboratories will need to ensure they have the capacity and technology necessary to handle increased volumes of samples while maintaining rigorous quality control measures. This may require investments in new equipment or hiring additional staff.
3. Regulatory Compliance: Laboratories will face heightened scrutiny from regulators as they become key players in ensuring product safety. They will need to demonstrate compliance with all relevant regulations and maintain transparent practices regarding their testing methodologies.
For Consumers
1. Improved Product Safety: The primary benefit for consumers is enhanced safety assurance. With standardized testing protocols in place, consumers can trust that cannabis products have been thoroughly vetted for contaminants and potency before reaching store shelves.
2. Greater Transparency: As part of this regulatory shift, there may be increased transparency regarding testing results and laboratory practices. Consumers will have access to clearer information about what goes into their cannabis products, empowering them to make informed choices.
3. Potential Price Increases: While improved safety is paramount, there is a possibility that compliance costs could be passed on to consumers through higher prices for cannabis products. Producers may need to adjust their pricing structures in response to increased operational costs associated with single-lab testing.
Cannabis Regulation in Massachusetts
Historical Overview
Massachusetts was one of the first states in New England to legalize recreational cannabis use following the passage of Question 4 in 2016. The legalization marked a significant shift in public policy and opened up a new economic sector within the state. However, as with any emerging industry, challenges quickly arose—particularly concerning product safety and quality assurance.
Existing Regulatory Framework
Prior to the introduction of single-lab testing regulations, Massachusetts had established a comprehensive regulatory framework governing various aspects of cannabis production and sale:
Despite these measures, lab shopping highlighted gaps in enforcement and compliance that necessitated further action from regulators.
Industry Reactions
Support from Public Health Advocates
Public health advocates have largely welcomed the CCC’s decision to implement single-lab testing as a crucial step toward safeguarding public health by ensuring that all cannabis products meet consistent safety standards. Many believe this regulation will help prevent contaminated or substandard products from reaching consumers while bolstering trust in legal cannabis sales.
Dr. Emily Thompson, a public health expert at Harvard University, stated, “This regulation is essential for protecting consumers from potential health risks associated with contaminated cannabis products.”
Concerns from Industry Stakeholders
Conversely, some industry stakeholders have expressed concerns about potential drawbacks:
1. Operational Challenges: Smaller producers may find it difficult to navigate relationships with larger laboratories or face delays in getting their products tested due to increased demand at those facilities.
2. Innovation Stifling: Critics argue that requiring single-lab testing could stifle innovation within the industry by limiting producers’ options for exploring different testing methodologies or technologies offered by various labs.
3. Market Dynamics: There are worries that this regulation could create monopolistic tendencies within laboratory services if only a few labs dominate the market due to increased demand from producers seeking reliable test results.
4. Impact on Small Businesses: Small-scale cultivators might struggle more than larger companies due to limited resources and access to high-quality labs capable of meeting stringent requirements without significantly raising costs.
Future Outlook
As Massachusetts implements this new regulation mandating single-lab testing for all cannabis products sold within its borders, it sets an important precedent that other states may consider as they navigate similar challenges within their own burgeoning cannabis markets.
Potential National Implications
The decision by Massachusetts regulators could influence national discussions around cannabis regulation as other states look toward creating frameworks that prioritize consumer safety while fostering industry growth:
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Increased Interest from Other States: States grappling with similar issues related to lab shopping may look closely at Massachusetts’ approach as they develop their own regulations.
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Collaboration Among States: As states continue legalizing recreational marijuana use across the country, there may be opportunities for collaboration on best practices regarding product safety standards and laboratory oversight.
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Federal Considerations: With ongoing discussions about federal legalization of marijuana gaining traction nationally—especially amid shifting political landscapes—regulatory models like those emerging from Massachusetts could serve as templates for future federal guidelines governing cannabis production and sale across state lines.
Conclusion
The Massachusetts Cannabis Control Commission’s mandate for single-lab testing represents a pivotal shift in evaluating cannabis products for safety and quality assurance within one of the nation’s most dynamic legal marijuana markets. By targeting the issue of lab shopping, this regulation prioritizes consumer protection, aiming to enhance public health outcomes and rebuild confidence in the safety of legalized cannabis products. While the transition poses challenges for producers adapting operational processes and laboratories scaling their capabilities, the regulation seeks to balance fostering innovation in an evolving industry with rigorous oversight mechanisms. As Massachusetts refines its regulatory framework, balancing the interests of regulators and profit-driven stakeholders, collaboration will be essential to thriving under these new guidelines. This change not only advances the state’s cannabis sector but also sets a potential standard for other states to ensure safe consumption and responsible business practices in the growing marijuana industry.
LAB SHOPPING FOR HIGH THC RESULTS? READ ON…
Cannabis News
Happy Holidays from The Canna Law Blog
Published
24 hours agoon
December 24, 2024By
admin
Wishing all of our readers, along with friends and families, the very best this holiday season.
Whether you celebrate Hanukkah, Christmas, Kwanzaa, Winter Solstice, Festivus, or something else, we hope you can kick back and enjoy this wonderful time of the year.
The post Happy Holidays from The Canna Law Blog appeared first on Harris Sliwoski LLP.
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