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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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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…

PDIDDY MARIJUANA COMPANY

SUCKER IN THE ROOM? WAS DIDDY DUPED IN HIS MARIJUANA DEAL?



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Runners’ High or Get High to Run?

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Running Sober vs. High on Marijuana: How Weed Affects Your Workout

 

As the cultural and legal landscape surrounding cannabis continues to shift, many fitness enthusiasts are exploring its potential role in exercise routines. A growing number of runners are experimenting with cannabis use before workouts, sparking debates about its impact on physical performance. Does it enhance the experience or hinder results? This article delves into the science behind running sober versus running high, examining how cannabis affects endurance, focus, and overall workout performance.

 

The Basics of Running Sober

 

Running sober has long been the standard approach for athletes and fitness enthusiasts. Without external substances, runners rely on their natural physical and mental capacities to perform. This approach offers several benefits:

 

 

When running sober, the mind remains clear, allowing athletes to concentrate fully on their pace, breathing, and surroundings. This mental clarity can be crucial for maintaining proper form and achieving peak performance.

 

 

Sober running promotes a strong connection between the mind and body. Runners can accurately gauge their exertion levels, recognize signs of fatigue, and adjust their intensity accordingly.

 

 

Without the influence of substances, sober runners experience consistent physical responses to training. This consistency makes it easier to track progress, set realistic goals, and develop effective workout plans.

 

 

The Basics of Running High

 

Running high involves consuming cannabis before a workout, typically through smoking, vaping, or ingesting edibles. Advocates claim that cannabis can enhance the running experience in various ways:

 

 

Cannabis is known for its analgesic properties, which can help reduce muscle soreness and joint pain. Some runners report that cannabis allows them to push through discomfort and extend their workouts.

 

 

Cannabis can create a sense of euphoria or relaxation, often referred to as a “runner’s high.” For some, this altered perception makes running feel more enjoyable and less monotonous.

 

 

Cannabis may enhance the brain’s ability to enter a state of flow, where the runner feels deeply immersed in the activity. This can lead to creative thinking and a stronger connection to the running experience.

 

 

The Science of Cannabis and Exercise

 

To understand the effects of cannabis on running, it’s essential to examine its active compounds and how they interact with the body.

 

 

Cannabis contains two primary compounds that affect physical and mental states which are:

  • THC (tetrahydrocannabinol): The psychoactive component responsible for the “high.” THC alters perception, mood, and coordination.

 

 

The ratio of THC to CBD in a cannabis product significantly influences its effects on a workout. Products high in THC may impair coordination, while CBD-dominant options can provide relief from pain and inflammation without causing a high.

 

 

The body’s endocannabinoid system plays a crucial role in regulating mood, pain, and inflammation. Cannabis interacts with this system, potentially enhancing its natural functions. For instance, the endocannabinoids released during exercise are thought to contribute to the “runner’s high.”

 

Benefits of Running High

 

Proponents of running high argue that cannabis offers unique benefits that can enhance the workout experience:

 

 

Cannabis’s analgesic properties make it an attractive option for runners dealing with chronic pain or soreness. By reducing discomfort, it allows athletes to train longer and recover faster.

 

 

For some, running high turns a mundane workout into an enjoyable experience. The euphoric effects of THC can make runners feel more motivated and engaged.

 

 

Cannabis’s calming effects can help reduce pre-run anxiety, particularly for individuals preparing for races or long-distance runs. This relaxation can improve performance by preventing tension and overexertion.

 

Should You Try Running High?

 

If you’re considering running high, it’s essential to approach it with caution. Start with a low dose of cannabis in a safe and familiar environment. Pay attention to how your body responds and avoid using cannabis before races or high-stakes training sessions.

 

Risks and Drawbacks of Running High

 

Despite its potential benefits, running high comes with significant risks that runners should consider:

 

 

THC can impair motor skills and reaction times, increasing the likelihood of injuries or accidents during a run. This is especially dangerous for outdoor runners navigating traffic or uneven terrain.

 

 

Cannabis may distort a runner’s perception of effort, leading them to overexert or underestimate their limits. This can result in fatigue, dehydration, or even injury.

 

 

Smoking or vaping cannabis before running can irritate the lungs and reduce oxygen intake, negatively affecting endurance and performance.

 

 

In regions where cannabis use is prohibited, running high may carry legal consequences. Additionally, athletes competing in regulated events risk disqualification if cannabis use violates anti-doping rules.

 

Comparing the Two (Running sober vs high)

 

Performance: Running sober often leads to more predictable performance, as cannabis can either enhance or hinder depending on tolerance and strain.

Safety: While weed may reduce pain, it can impair judgment, making it harder to gauge limits or react to sudden changes in the environment.

Mental State: Some runners find that cannabis helps them relax and overcome pre-run anxiety, while others feel it clouds their mental clarity.

 

Conclusion

The decision to run sober or high is deeply personal and depends on individual preferences, goals, and circumstances. Running sober offers consistency, clarity, and safety, making it ideal for competitive athletes and those focused on measurable progress. On the other hand, running high can enhance enjoyment, reduce pain, and provide a unique mental experience, making it appealing for recreational runners.

 

Ultimately, the key is to approach cannabis use thoughtfully and responsibly. Whether you choose to lace up your running shoes sober or high, prioritizing safety and listening to your body will help ensure a rewarding workout experience.

 

RUNNERS AND MARIJUANA, READ ON…

RUNNERS USING CANNABIS

HOW DOES A RUNNER’S HIGH REALLY WORK? CLICK HERE!

 



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Two Economic Forces That are Reshaping America

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Two Sectors of Society that’s Not Going Away…

You know that feeling when you’re comfortably high and suddenly have an epiphany about how rapidly the world is changing? Well, that’s exactly what happened to me recently while scrolling through Reddit, watching two separate conversations unfold about AI and cannabis – perhaps the two most transformative forces reshaping our society today.

The pace of change is dizzying, isn’t it? We’re living in an era where technological advancement isn’t just rapid – it’s exponential. Before we can fully grasp one innovation, three more have already emerged. And while some folks are still debating whether to embrace these changes, the train has not only left the station, it’s broken the sound barrier.

I found myself in the middle of a heated debate about AI in publishing, with some traditionally-minded writers clutching their pearls at the mere mention of using artificial intelligence in the creative process. The irony wasn’t lost on me – here they were, arguing on a digital platform about the evils of digital progress. Meanwhile, in another corner of Reddit, I stumbled upon a discussion about cannabis stocks, with one astute observer noting, “Cannabis ain’t going anywhere…”

And you know what? Both these threads got me thinking. These two sectors – AI and cannabis – share something fascinating in common: they’re both unstoppable forces that are fundamentally altering how we live, think, and interact with the world. Whether you’re excited about it or terrified, both are here to stay. The only real question is how we choose to integrate them into our society.

So pack a bowl, fire up your neural networks (both biological and artificial), and join me as we explore these transformative forces reshaping our world. Trust me, this is going to be one hell of a trip through the intersection of technology, consciousness, and social change.

Let me tell you something about revolution – it doesn’t always come with a bang. Sometimes it creeps in slowly, one dispensary at a time, one changed mind at a time, until suddenly you look around and realize the world isn’t what it used to be. That’s exactly what’s happened with cannabis over the past two decades.

Remember when California was the lone wolf with its medical marijuana program? These days, you can walk into a dispensary in more than half of U.S. states and legally purchase cannabis. Hell, you can even light up legally in Germany now. The transformation has been nothing short of remarkable, even if 2024 saw a slight slowdown in the legalization momentum. But make no mistake – this train isn’t stopping. It might hit some speed bumps, but it’s still chugging along toward full legalization.

Now, I know what you’re thinking: “But Reg, what about the upcoming Trump administration? Won’t that put the brakes on everything?” Look, I’ve spent enough time analyzing cannabis policy to know that nothing’s certain in politics. But here’s the interesting part – there’s actually some reason for optimism. With RFK Jr. potentially heading up Health and Human Services, we might see some surprising moves. I’ve written before about how a well-crafted legalization plan could actually be a winner with a Republican-controlled government. Tax revenue, states’ rights, personal freedom – these are concepts that resonate across party lines.

But let’s be real for a minute. Whether it happens under Trump or the next administration or the one after that, cannabis legalization is inevitable. You can’t put this genie back in the bottle. We’re talking about an industry generating billions in legal revenue annually. The cannabis sector isn’t just some hippie dream anymore – it’s a serious economic force with real jobs, real tax revenue, and real political clout.

And here’s the kicker – demographics are destiny. The reefer madness generation is fading away, replaced by millennials and Gen X parents who’d rather spark a joint than open a bottle of wine after putting the kids to bed. Cannabis has been normalized to a degree that would have been unthinkable twenty years ago. When soccer moms are discussing their favorite strains at PTA meetings and grandma is using CBD for her arthritis, you know the cultural shift is complete.

The future is clear: federal legalization in the U.S. is coming, and international legalization will follow. It’s not a matter of if, but when. And when that day comes, we’ll look back at this period of transition and wonder why it took so long to embrace what humans have known for thousands of years – that this plant has the power to heal, to inspire, and to bring people together.

You know what’s wild? While I’ve been covering cannabis for years, watching it slowly transform from counterculture to mainstream, artificial intelligence swooped in like a technological tornado and turned everything upside down practically overnight. And I mean everything.

Let me get personal for a minute. As someone who’s made their living stringing words together, I’ve had a front-row seat to this revolution. Where I used to have editors throwing assignments my way like joints at a Cypress Hill concert, nowadays those gigs have become as rare as schwag weed in a Colorado dispensary. And I’m not alone – this disruption is hitting everyone from artists to lawyers, doctors to factory workers.

Recently, I found myself in the crosshairs of this debate when I mentioned my latest project – a 90,000-word fiction book I’m creating with AI assistance. You’d think I’d announced I was mixing oregano with my cannabis, the way some people reacted. The downvotes came faster than munchies after a dab session. But here’s the thing: I’m not just feeding prompts into a machine and calling it a day. I’m channeling my creativity through this new tool, directing it like a conductor leads an orchestra. Every plot point, every character arc, every emotional beat – that’s all coming from my creative vision.

But try explaining that to the traditionalists. They insist it’s not “real” writing if AI is involved. It’s like arguing with someone who still believes in Reefer Madness – they’re so caught up in their preconceptions that they can’t see the bigger picture. The reality is, this technology isn’t going away. Just like cannabis legalization, we’re past the point of no return.

And let’s be real – this is just the beginning. While I’m catching flak for using AI in writing, companies like Tesla and Boston Dynamics are developing robots that could replace entire workforces. Couple that with AI, and suddenly you don’t need human workers, floor managers, or even middle management. It’s enough to make anyone paranoid, and this time, it’s not the weed talking.

The question isn’t whether AI will transform society – it’s already happening. The real question is what happens to those who can’t or won’t adapt. I’ve chosen to lean into it because I see the writing on the wall. In a few years, companies won’t be hiring copywriters; they’ll be hiring “prompters” who know how to dance with the AI to get results. And they’ll do it for a fraction of what they’re paying now.

Here’s the kicker though – just like cannabis, AI has the potential to either enhance our lives or cause serious problems, depending on how we handle it. The genie’s out of the bottle, folks, and it’s smoking something a lot stronger than we ever imagined. The only choice we have is whether we learn to work with it or let it work us over.

Look, I’ve been around long enough to know when something’s here to stay. Cannabis and AI aren’t just trends – they’re transformative forces reshaping our world faster than you can clear a bong. And just like that friend who says they’ll “just take one hit,” there’s no going back once you start.

The writing isn’t just on the wall anymore; it’s being projected in 8K resolution by an AI while someone blazes a joint in the corner. These industries aren’t just growing; they’re intertwining with every aspect of our lives. Fighting against this reality is like trying to push smoke back into a bowl – pointless and probably going to give you a headache.

So here’s my advice, for what it’s worth: Find your place in this brave new world. Maybe that means developing cannabis-infused products that no one’s thought of yet. Maybe it means becoming the go-to AI prompt engineer for dispensaries looking to automate their marketing. Hell, maybe it means combining both – using AI to optimize grow operations or predict cannabis market trends.

The point is, you can either evolve or get left behind, reminiscing about the “good old days” like that one uncle who still thinks “pot needles” are a thing. And let me tell you, I’ve seen enough of those folks – bitter, resistant to change, watching the world pass them by while they clutch their outdated beliefs like a security blanket.

The future is coming, whether we’re ready or not, and it’s bringing both heavy tech and heavy hits with it. You can either grab your piece of the pie or watch others feast. Personally, I’d rather be at the table than watching through the window.

Remember this: the future is red-eyed and running on neural networks, and no amount of clutching pearls or crying about “the way things used to be” is going to change that. So spark up, power up, and get ready for the ride – it’s going to be one hell of a trip.

 

HUMANS AND AI, NOT THE FIRST GO-AROUND? READ ON…

HUMANS HAD AI BEFORE

HUMANS AND AI, NOT OUR FIRST GO-AROUND? READ THIS!



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What to Expect for Global Cannabis Law Reform in 2025

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As the U.S. cannabis community awaits the resumption of the DEA’s administrative law hearing on rescheduling marijuana later this month, this blog will take a glimpse at the ever-dynamic global landscape of cannabis policy. While some countries may expand, retract, or maintain the progress seen in 2024, much attention will focus on the key developments that marked the past year. Notably, Europe saw significant movement in cannabis policy.

Key global cannabis law developments in 2024

  • Germany passed a quasi-legalization law with two phases. Phase I, implemented in 2023, legalized cannabis cultivation clubs, home cultivation, and personal possession. Phase II, still in the early planning stages, would introduce regulated marijuana sales through pilot programs. The most impactful change, however, has been the expansion of medical marijuana access, which has surged since the law’s enactment.
  • Poland’s Parliamentary Committee on Petition presented a proposal to decriminalize personal marijuana possession and home cultivation to the Prime Minister. While the proposal is not binding, it could pave the way for future progress, contingent on the outcome of Poland’s May presidential election.
  • The Netherlands, after multiple delays, is poised to meet demand for regulated marijuana through licensed cultivators supplying coffee shops participating in the trial, marking a significant step in its regulated cannabis market.
  • Switzerland expanded its pilot program for the regulated sale of marijuana to more jurisdictions.
  • Ukraine legalized medical marijuana for specific qualifying conditions, marking a major health policy milestone.
  • Thailand, under its new conservative government, opted to regulate rather than reschedule marijuana.
  • Australia held a vote to legalize marijuana at the end of 2024. The vote failed by a vote of 24-13, but this was a monumental step in the country’s shift away from the war on drugs.
  • Italy’s conservative leadership has pushed to ban hemp flower-based products, prompting hemp industry advocates to call for an immediate review of the law’s compatibility with EU regulations. The European Commission’s review could determine the future of Italy’s hemp industry.

What to expect for global cannabis law developments in 2025

Despite the promising advances in 2024, 2025 may see increased resistance from conservative governments opposed to cannabis liberalization. Several countries may face setbacks or even roll back their cannabis reforms:

  • Germany: While several municipalities, including Frankfurt, are moving forward with commercial cannabis pilot programs, the Christian Conservative Party, expected to gain control after February’s snap elections, has indicated opposition to further expansion, particularly Phase II. Despite this, a poll showing 59% support for marijuana legalization suggests that a full reversal of Phase I is unlikely. Even if the Christian Conservatives take power, recriminalizing cannabis would be difficult without forming a coalition that includes pro-cannabis parties, which is unlikely. Thus, while pilot programs may be at risk, the current system isn’t likely to be reversed.
  • The Netherlands: Despite a rightward shift in the 2023 elections, the governing coalition has confirmed it will not halt the regulated coffee shop trials. Delayed by supply issues, these trials are now set to fully implement regulated sales by April of this year.
  • Thailand: Following its election win in 2023, the Pheu Thai Party which initially campaigned on placing cannabis back on the controlled substances list, has softened its stance.  The Party’s initial plans to criminalize marijuana appear to be off the table. The government is now focused on regulating the cannabis market, which may include some form of regulated commercial sales. Restrictions will likely be placed on the current unregulated market, but the shift towards regulation suggests that prohibition is not on the horizon. This move could also position Thailand for entry into the global medical marijuana trade.
  • Czech Republic: Initially aiming for full legalization of commercial cannabis, the Czech Republic shifted focus in 2024 under pressure from the EU regarding UN treaty obligations. Chechia is seeking a framework similar to Germany’s, with provisions for personal cultivation and possession limits. Additionally, the government is working on a regulatory regime for low-THC hemp (not exceeding 1%), including HHC, as part of its “Psychomodulatory Substances” regime.
  • Ukraine: Ukraine’s medical marijuana program, which has faced delays, is set to roll out in early 2025. Initially, it will only serve patients with specific forms of cancer and war-related PTSD. While access will be highly restricted, there is hope that additional conditions may be included in the future. Currently there are no medical marijuana products available to patients, but that is expected to change in early 2025.

Big picture thoughts for cannabis law in 2025

In 2025, conservative governments may pose challenges to expanding cannabis reforms. However, the full repeal of existing cannabis laws seems unlikely.

Recently, the United Nations High Commissioner for Human Rights underscored the failure of the War on Drugs and advocated for a shift toward regulatory frameworks that prioritize public health over punitive measures. These “alternative regulatory approaches” seek to reduce the influence of the black market and cartels, boost tax revenues, and fund social programs aimed at mitigating the impact of drugs on society.

Hopefully these principles will gain traction, and governments will continue moving away from the failed war on drugs in favor of common-sense cannabis regulation.



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