Cannabis News
Diddy Dodges a Bullet – Sean Combs Gets Out of a Bad Cannabis Deal as Cresco Labs and Columbia Care Call Off Merger Plans
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1 year agoon
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Cresco Labs and Columbia Care, both major players in the cannabis industry, have officially called off their planned $2 billion merger, as announced in March 2022. According to a recent news release, the termination comes without any associated costs. The decision was made considering the changing landscape in the cannabis sector, with Cresco Labs believing that this move is in the long-term interest of the company and its shareholders, as stated by Charles Bachtell, the CEO and co-founder of Cresco Labs.
The deal’s closure deadline had already been pushed back twice, with the latest extension set for June 30. However, the companies announced on June 30 that they had not divested overlapping assets, a requirement from marijuana regulators in several states. Consequently, the termination also affects the companies’ plans to sell assets in Illinois, Massachusetts, and New York to rapper and business mogul Sean “Diddy” Combs, resulting in the termination of this deal, effective July 28. The sale to Combs would have created the largest Black-owned marijuana multistate operator in the United States.
As they say, sometimes blessings come to those who wait, and time delays and industry conditions may have saved Diddy millions in overpriced assets. Cannabis.net covered the initial Diddy deal here and asked if Diddy was the “sucker in the room” as it appeared he drastically overpaid for cannabis assets in Massachusetts and New York. Thankfully, with the end of the Cresco Labs and Columbia Care merger, his own cannabis deal for those assets in now terminated. He may be able to come back in and get the same assets at 50% of what he agreed to pay less than a year ago.
Meanwhile, Columbia Care underwent internal restructuring earlier this year, streamlining its operations by laying off 25% of its corporate employees and closing some facilities. The company’s CEO, Nicholas Vita, expressed confidence in the significant strategic and operational strength achieved during the past 16 months, positioning them well in the company’s history at this pivotal moment. As both companies move forward separately, the decision to abandon the merger reflects the shifting dynamics and complexities within the rapidly evolving cannabis industry.
Understanding the Factors Behind the Deal’s Termination
According to a spokesperson for Cresco, the companies faced challenges in divesting assets in Florida and Ohio as required during the spring and summer. These difficulties were primarily due to the tough capital landscape, with financing falling through multiple times. The U.S. cannabis industry has been grappling with high-interest rates, low share prices, slow federal marijuana reform, inflation, and wholesale cannabis price compression, making it challenging to attract investment dollars into the sector.
Matt Bottomley, an analyst at Canaccord Genuity, stated in a July 31 newsletter that the macro-level challenges in various U.S. markets and limited investment interest in the industry made the necessary asset dispositions less appealing than initially anticipated. The negative market conditions have impacted the share prices of major players in the industry, including the AdvisorShares Pure US Cannabis ETF, which saw a significant drop from $20 in March 2022 to slightly above $5.
Before the announcement of the Cresco-Columbia deal in March, the share prices of Cresco Labs and Columbia Care experienced considerable declines. Citing these difficulties, equity analysts were not surprised by the termination of the deal. The operational downturn, combined debt of a merged company and challenges in divesting assets, led to slim prospects for the deal’s success. The assets’ reduced values and potential buyers’ difficulty securing funds further complicated the situation, making the termination an expected outcome, as noted by Owen Bennett, senior vice president of equity research at Jefferies Group.
Combs Global’s Unwavering Dedication: Advocating for Diversity in Cannabis Sector
Establishing the nation’s first Black-owned cannabis Multistate Operator (MSO) hinged on the successful closure of the deal between Cresco Labs and Columbia Care. Combs Global, led by the renowned rapper and business mogul Sean “Diddy” Combs, had agreed to purchase production and retail assets for up to $185 million in November of the previous year. The potential creation of a minority-owned operator, led by such a prolific and impactful entrepreneur, was deemed momentous and highly promising for an industry needing greater diversity of leadership and perspectives, as stated by Cresco’s Charles Bachtell at the time of the announcement.
However, following the termination of the Cresco-Columbia deal, the plans for the creation of the Black-owned cannabis MSO have also ended. Despite this setback, Combs Global President Tarik Brooks affirmed that the company remains committed to exploring opportunities in the cannabis industry and advocating for diversity. While the specific deal that would have facilitated the creation of the groundbreaking Black-owned operator may not have materialized, Combs Global’s dedication to pushing for inclusivity and diversity within the cannabis sector remains unwavering.
Cresco Labs and Columbia Care Forge Ahead
Cresco Labs has announced its new focus on “swift restructuring of low-margin operations, improving competitiveness, and driving efficiencies in markets where we maintain leading market share, and scaling operations to prepare for growth catalysts in emerging markets,” as stated by Charles Bachtell in a statement. The company aims to optimize its operations and position itself for growth opportunities amidst the rapidly evolving cannabis landscape.
On the other hand, Columbia Care provided a more detailed outline of its achievements thus far in the year and its plans for the third quarter in a separate news release. The outlined initiatives include pursuing uplisting to a senior U.S. exchange and consolidating its shares onto Cboe Canada (formerly known as the NEO Exchange) while delisting from the Canadian Securities Exchange. Additionally, Columbia Care plans to complete a corporate restructuring plan and finalise discussions with the largest holders of its 13% senior secured notes due in May 2024 for an exchange into the company’s 9.5% senior secured notes due in February 2026 on a one-to-one basis. The company also aims to close the sale of a 36,000-square-foot cultivation facility and retail outlet in downtown Los Angeles. It has made key additions to its executive team by appointing David Hart as president and chief operating officer and Jesse Channon as chief commercial officer.
Nicholas Vita, CEO of Columbia Care, expressed enthusiasm for the next stage of the company’s growth and expansion, with the past 16 months of uncertainty behind them. The renewed energy and dedication of the team position Columbia Care for a promising future in the cannabis industry.
Bottom Line
The planned $2 billion merger between Cresco Labs and Columbia Care has been officially called off due to changing dynamics in the cannabis industry. Facing challenges in divesting assets in Florida and Ohio, the companies decided to terminate the deal, resulting in the cancellation of plans to create the country’s first Black-owned cannabis Multistate Operator. Despite the setback, Combs Global remains committed to exploring opportunities and advocating for diversity in the cannabis sector. Both Cresco Labs and Columbia Care are now focusing on optimizing their operations and pursuing growth opportunities individually. As the cannabis industry continues evolving, companies adapt their strategies to navigate the complex landscape.
WAS P DIDDY SWINDLED FROM THE START? READ ON…
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Latest Trump Weed Rumor – Trump Will Federally Deschedule and Decriminalize Cannabis, but Not Legalize It
Published
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November 14, 2024By
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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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