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What European Countries Are Least Likely to Legalize Cannabis?

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In July 2022, top officials from three Europe countries met to discuss the future of legal cannabis in Europe. The meeting, which gathered government officials from Germany, Malta and the Netherlands in Luxembourg, was called to discuss how to approach the legalization of recreational cannabis in a complex market with a population of more than 530 million.

The European market is expected to gross more than 3 billion euro by 2025. However, as countries make moves towards legalization, key decisions need to be made about how to balance this emerging market with existing legal frameworks. Along with UN international treaties, one of the biggest obstacles is the Council Framework Decision 2004/757/JHA, which mandates that EU member states punish the production and sale of cannabis when committed “without right.”

Eventually, cannabis will be legalized across the Eurozone, but that can’t happen until countries are given a path forward that doesn’t put them in breach of international and EU laws. While some countries are eager to forge that path, others are lagging behind. Legalizing cannabis has various implications in different countries, as individual member states are at different stages of the legalization process.

To stay current on everything important happening in the industry, subscribe to The Cannadelics Weekly Newsletter. Also, it’ll get you premium access to deals on cannabis flowers, vapes, edibles, and much more! We’ve also got standout offers on cannabinoids, like HHC-O, Delta 8Delta 9 THCDelta-10 THCTHCOTHCVTHCP HHC, which won’t kill your bank account. Head over to our “Best-of” lists to get these deals, and remember to enjoy responsibly!





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Cannabis Control boss Shannon O’Brien, paid $181,722, has business before her own board

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The state’s new pot boss Shannon O’Brien, paid a smoking $181,722 salary, has been involved in two applications for cannabis cultivation, according to documents reviewed by the Herald.

O’Brien is listed on an application filed in 2020 by Greenfield Greenery LLC, as an “Owner/Partner” in a proposal to open an outdoor growing operation occupying upwards of 100,000 square feet.

A second application, by Charlemont FarmWorks LLC, lists O’Brien under a section titled “Our Team” as an adviser, noting her role as the former state treasurer and as a former state senator. She also ran for governor in 2002, losing to Mitt Romney.

Read the rest of this story on BostonHerald.com.



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Problems in The Industry? Cannabis Giant Canopy Growth Sells Retail locations

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It’s the coolest industry in the world, right? Well, maybe it is, but for all the government claims of tax flow, it doesn’t seem to be the most lucrative. Now, as industry giant Canopy Growth makes deals to sell its retail locations, what does this really say about our coolest new industry?

Canopy Growth selling its retail locations could signal a big problem in the retail weed market. This news site is an independent resource for stories in the growing cannabis and psychedelics industries of today. Subscribe to the Cannadelics Weekly Newsletter for regular updates to your email, and to get access to a host of awesome deals on a range of products including vapes, smoking devices, edibles, other cannabis paraphernalia, and the highly-in-demand cannabinoid compounds Delta 8 & HHC. You can find more info in our ‘best of’ lists, so head on over, and pick out the products you’re most happy to use.


Who the heck is Canopy Growth?

A decade ago, cannabis companies weren’t much of a thing. Sure, there were some medical markets opening, but recreational was still years away, and the same issue of federal government illegalization kept anything from really popping on a huge level. Plus, weed was still illegal for all purposes nearly everywhere in the world at that time, so no large global markets existed.

Since then, the cannabis industry has become a real thing, complete with verticals from seed to sale. And while we hear of all the money its worth, and projections for how big it *could get, the reality has been creeping alongside the whole time; that it’s not quite the lucrative industry so many predicted. In fact, it’s quite the opposite, a very much struggling industry. This is exemplified by recent news of industry giant Canopy Growth, making plans to sell off its 28 brick-and-mortar retail locations.

Canopy Growth isn’t a nobody in the industry. The company, based out of Swiss Falls, Ontario, in Canada, was the largest cannabis company in 2019 in terms of stock value. Canopy Growth came out of a merger between Tweed Marijuana, Inc, and Bedrocan Canada, in 2015. The company has the designation of being the first Canadian cannabis company to be federally regulated, licensed, and publicly traded in North America.

It trades under WEED on the Toronto Stock Exchange, and opened in the New York Stock Exchange under CGC in 2018. It was the first cannabis producer to enter the NYSE. Canopy was also the first company to make a recreational cannabis sale when it was officially legalized in Canada. This took place in a Tweed store located in St. John’s, Newfoundland and Labrador.

Back in November 2016, the company was singled out as the first unicorn of the weed industry, with a $1 billion valuation according to the Financial Post. The company operates dispensaries through its subsidiary Tweed, Inc. in the provinces that allow a private sector market, including Manitoba, Saskatchewan, and Newfoundland and Labrador. It operates as well in Manitoba and Ontario under the brand name Tokyo Smoke.

By 2018, the company had market capitalization exceeding $14 billion, and Canopy even funded Professorships in Cannabis Science at University of British Columbia in Vancouver. However, the company’s quick rise, started to falter in 2018. The biggest issue stemmed from Canopy’s attempt to make greenhouses in British Columbia and Quebec larger, which led to pretty big losses. How big? In the last quarter of 2018, the company posted losses of $335.6 million for shareholders. Constellation Brands, which held four out of seven board seats at that time, was unhappy with the company’s direction.

All this led to an emergency board meeting where CEO Bruce Linton was thrown out; but this didn’t stop stock prices from falling. In 2019, stock prices slid further down for Canopy, and it was reported that all of the cannabis industry was suffering, showing the lowest numbers since 2017. The company instituted new CEO David Klein in December 2019. By 2020, Canopy was already announcing the closing of stores.

Canopy Growth has operations globally. It’s partnered with Alcaliber S.A. pharmaceutical company in Spain; owns Spectrum Therapeutics GmbH in Germany for medical cannabis imports; is partnered with Spectrum Cannabis Denmark ApS, which cultivates medical cannabis; acquired Annabis Medical, a Czech Republic distributor; as well as Daddy Cann Lesotho, an African medical cannabis supplier; has a partnership with the UK’s Beckley Foundation for medical cannabis; and has other operations in Australia, Brazil, Peru, Chile, and Jamaica.

Canopy Growth sells retail locations

It was already a downhill slide for the weed giant, so this latest news isn’t surprising, but it is a little depressing; especially in what it signals for the legal marijuana industry as a whole. On September, 27th, 2022, the company announced that it was forging agreements to sell off its retail market locations throughout Canada. This includes retail stores under both the Tweed and Tokyo Smoke brand names.

OEG Retail Cannabis, already a Canopy partner that owns and operates franchises of Tokyo Smoke stores in Ontario, will take all of Canopy’s corporate stores outside Alberta, and all intellectual property related to Tokyo Smoke as well. Canopy also reached an agreement with the company 420 Investments Ltd., in which the latter will take ownership of five retail locations within Alberta. Neither deal is officially closed, as they are both subject to regulatory oversight and approval.

While this doesn’t necessarily say good things about how Canopy Growth sees the retail market, it’s certainly not the end of the company, which is using this move as a way to refocus attention elsewhere. According to its press statement, the company will continue on with a focus on premium cannabis consumer packaged goods.

According to David Klein, “We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the Company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market.”

Premium cannabis goods
Premium cannabis goods

He continued of the deals, “By realizing these agreements with organizations that possess proven cannabis retail expertise, we are providing continuity for consumers and team members. Through the best-in-class retail leadership that OEGRC and FOUR20 have demonstrated, they will continue to serve Canadian consumers with the high-quality in-store experiences that are essential for success in a new industry.”

It’s expected that this change will lead to operational savings for the company. These savings are projected to put the company back at the high end of their yearly target range. The company announced its overall cost reduction plan earlier this year in April.

What does this mean for the cannabis industry?

Companies switch direction all the time, or take on new ventures. Technically, it’s not that weird for a company to see a different aspect of a market, and go towards it. Cannabis food products are getting quite popular, so it could be seen as Canopy Growth simply changing lanes for the drive forward.

But there are some other stark realities to this situation. Realities that are often hidden behind announcements of all the cannabis tax income for states. The reality that this industry is not bringing in nearly as much revenue as expected. That the black market is a formidable opponent that many still prefer, and that legal markets were instituted with taxes so high, that it makes legal operators struggle to stay afloat. Sure, some companies are making money, but not that many.

It’s easy to forget that one of the biggest winners in the weed game is not private companies, but government entities. And for them, this is all new income; so whether its high or low, its adding money to government coffers. Think of how much cigarettes cost because of those ‘sin’ taxes meant to dissuade us from buying them. Obviously, sin taxes don’t work, but what they do mean, is that as we continue to buy these sinful products (in the same quantities as when they weren’t taxed to kill us), the government reaps the benefits.

Philip Morris still makes plenty of money from cigarettes, but probably not as much as the government. In Mexico, for example, its reported that an entire 70% of the price of a pack of cigarettes, is taxes. That governments have turned taxing items into a full industry, means that governments can profit off an industry as much, or more, than the actual companies within it. Such is the case right now with cannabis, where tax money is coming in, but the markets themselves are waning.

This whole concept was exemplified well by economists Daniel Sumner and Robin Goldstein, who together put out the book Can Legal Weed Win?: The Blunt Realities of Cannabis Economics. The two UC Davis, Department of Agricultural and Resource Economics professionals, who did an interview for TIME magazine, point out how the legal weed industry is very much weighed down by overly strict regulatory measures, a market competitive within itself and with the black market, and because of a host of agricultural issues that come up in the industry.

As Sumner put it, “There are companies that have done well and there are lots of companies that have not done well at all. There are growers that are doing OK and there are lots of farms that are not doing OK at all… It’s been a gold rush and a few people have found some gold and a lot of people haven’t.”

Canopy Growth retail cannabis
Canopy Growth retail cannabis

Goldstein explained further about investing in the industry, that “The ones that are probably making the safest money are probably the ones who were taking flat fees… But folks who took their compensation in the form of shares in these big cannabis holding companies, those stocks have not done well on the whole.”

If this doesn’t sound like the headlines blaring about a massive and growing weed industry, with no obstacles in its way, that’s because those headlines mainly speak in market projections, and market projections aren’t real. That’s the nature of projections, they’re just someone’s thoughts, but they’re not facts, or indicative of what will actually happen. Market projections were extremely high for the cannabis industry, but that never meant they had to be realized.

In actuality, according to Sumner, “People say this is a $100 billion industry. Robin and I are skeptical of that, but there could be a $10 billion industry, which is a lot of money if shared among a few players… We’ve seen nothing like the consolidation yet where the really big money could be coming. We haven’t even seen an indication that it’s going that direction.”

Canopy Growth is one of those big players, which is why this move is a possible signal of a bigger problem; namely an inability to really make enough money outside of projections. After all, why would a leader in the retail cannabis industry, give up that part of their business in an effort to recoup losses? As Canopy Growth sells its retail locations and exits that part of the game, we should wonder who can survive in the market, if this company can’t.

Conclusion

The news that Canopy Growth is selling its retail locations to focus on other aspects of the market in an attempt to recoup losses, is a pretty big indication that its a bumpy ride in the cannabis retail industry. What will happen next for Canopy Growth and the market in general? Stay tuned to life to find out.

Welcome to the site! We appreciate you taking the time to visit us at Cannadelics.com, where we work hard to get you fully-rounded coverage of the cannabis and psychedelics fields of today. Check us out on a regular basis to stay on top of everything going on, and subscribe to the Cannadelics Weekly Newsletter, for all the best news and product offers, straight to your email.





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Cannabis Industry vs ESG “Woke” Cartel  – Cannabis | Weed | Marijuana

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What role does the ESG “woke” cartel play in the cannabis industry?

Despite legalization efforts across western nations, cannabis still gets a bad rap. Authorities call it addictive and claim it causes psychosis and poor mental health.

They’ll say that the cannabis industry uses too much water, causes too much pollution, and point to other dismal environmental practices that developed during prohibition.

Therefore, the Environmental Social Governance (ESG) woke cartel has come to save the day. People like growing and consuming cannabis. We can’t have that!

Instead of measuring success based on happy customers and growing profit margins, proponents of ESG say business owners must weigh the cannabis industry’s success against environmental, social, and governing aspects.

But, as Elon Musk correctly tweeted, “ESG is a scam.”

ESG Investing vs. Common Sense 

Cannabis Industry vs ESG "Woke" Cartel 

Environmental, social governance (ESG) investing is a type of activist index fund the cannabis industry should avoid like the plague. 

Traditionally, you assess a company’s viability with balance sheets, cash-flow statements, income statements, shareholders’ equity statements, etc.

Typically you calculate ratios to give you a glimpse of the business’s financial health.

A debt-to-equity ratio indicates the proportion of equity and debt used to finance the company’s assets.

A cash asset ratio that compares current assets with liabilities. A return on equity is the net income return as a percentage of shareholder equity.

Or net profit margin. This one indicates the business’s efficiency in controlling costs. A higher net profit margin shows more efficiency in converting revenue into actual profit.

A lot of people struggle with these concepts. Or they remain entirely ignorant of them. And not just your average joe.

Consider political leaders who have been blaming inflation on “corporate greed.” Major grocery store chains are reporting record profits. This has left-leaning demagogues calling for a wealth tax.

But if you look beyond the headlines, you’ll see that net profit margins are either the same or, in some cases, less. 

Or, take Canada’s licensed producers of cannabis. How many are cash-flow positive? 

There’s more to the complex capitalist economy than just “profit and loss.” Yet critics of capitalism don’t usually think through the problem this far.

This leads us to environmental, social governance investing, or ESG. 

What is the ESG Investing?

Cannabis Industry vs ESG "Woke" Cartel 

The cannabis industry would be wise to avoid ESG-centric investing if it can.

Like labour unions reducing productivity in pursuit of political goals, a situation where ESG investing becomes mandatory is problematic.

Suddenly, the financial health of a business isn’t dependent on whether they serve consumers effectively but rather on the standards set by politicians. 

The Environmental, Social, and Governance Index is a Chinese-style social credit score for corporations.

Many might cheer on that “we” are policing corporations. But this is a simplistic reading that doesn’t require anything beyond surface-level analysis.

ESG has one goal: to create a woke cartel. 

Like how governments divided citizens with domestic covid vaccine passports, ESG aims to split the cannabis industry into two.

There will be those who go along with the woke demands of ESG. And then, some will prefer to run their business based on their customers’ input.

Of course, just like how you couldn’t perform basic activities without a vax-pass, cannabis companies not complying with ESG will find investment dry up.

It’ll be harder to do business when you’re a “noncompliant.”

Proof ESG is a Scam 

Cannabis Industry vs ESG "Woke" Cartel 

Who is this ESG woke cartel? And why is it a scam for everyone, not just the cannabis industry? 

Take Elon Musk, for example. He pulled Tesla from the S&P 500’s ESG Index earlier this year. 

Tesla has produced more electrical vehicles people want to buy and drive than any other car manufacturer.

That should have ranked Tesla at #1 in the ESG index, right?

No, Exxon Mobil ranks higher than Tesla, as does JP Morgan, the world’s largest investor in oil producers.

Why did Tesla rank lower than literal greenhouse gas producers and investors?

Apparently, it had to do with Tesla’s carbon strategy and codes of conduct. Tesla didn’t have a “low carbon strategy.” Which is seemingly more important than actually producing lower tons of carbon.

As well, Tesla suffered from claims of racial discrimination and poor working conditions at its Fremont factory.

Now, no one is saying these aren’t issues that should or shouldn’t affect the bottom line. But who decides? The buying public? Or an ESG index run by corporations and global technocrats at the World Economic Forum? 

ESG is a political spectacle. It’s meant to separate the woke from the non-woke. And since calling out the covid lockdowns as the fascist policies they are, Elon Musk has been in the “non-woke” category.

BlackRock & Vanguard: Should the Cannabis Industry be Worried about ESG?

https://www.caixinglobal.com/2020-08-29/blackrock-approved-to-set-up-first-wholly-foreign-owned-mutual-fund-company-in-china-101598812.html

BlackRock is the world’s largest asset manager, and Vanguard comes in second. Both are behind what they call “stakeholder capitalism,” a belief that companies should benefit “stakeholders,” instead of their shareholders.

In his “2021 Letter to CEOs,” BlackRock’s CEO, Larry Fink, declared that “climate risk is investment risk.” 

“The creation of sustainable index investments has enabled a massive acceleration of capital towards companies better prepared to address climate risk.

“And because this will have such a dramatic impact on how capital is allocated, every management team and board will need to consider how this will impact their company’s stock.” 

Or, as World Economic Forum founder and chairman Klaus Schwab put it: “Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed. In short, we need a ‘Great Reset’ of capitalism.”

Or, to quote Fink, “It is not a social or ideological agenda. It is not ‘woke.’ It is capitalism.”

But this is very clearly corporatism, also known as economic fascism. A handful of large companies coordinate production and special interest groups dictate society’s norms. 

Corporate power combines with the power of the state to push for ideological agendas. In this case, they are dismantling small businesses and creating a social credit system.

The end result will be a further concentration of corporate power, fewer individual freedoms, and a lot more propaganda about how your suffering is good for the planet.

Yes, the cannabis industry should be worried about ESG. ESG isn’t some future hypothetical. It’s already here.

Cannabis Industry already infected by ESG

You don’t have to go far to find the cannabis industry already infected by ESG-centric ideas.

Canadian company HEXO has publicly stated they want to be carbon neutral. Same with edible maker Wyld, who wants to produce biodegradable packaging.

Now, this sounds fine. And in many cases, it is. Justin Trudeau’s legalization has created so much plastic waste. If someone gave his government an honest ESG score, it would have to be in the negatives.

But, of course, that’s not how ESG works.

Cannabis company Trulieve has a dedicated ESG report. They even have an ESG board committee and flaunt their “Diversity, Inclusion and Equity” commitments.

Cannabis companies are jumping into the ESG world without thoroughly understanding its meaning.

On one side, you’ll lose the autonomy of your business to unelected bureaucrats and corporate asset managers. 

On the other side, you’ll lose customers. “Get woke, go broke,” is a mantra repeatedly being proved true.

Cannabis consumers want quality cannabis. Only racists care about the skin colour or ethnicity of the grower or budtender.

ESG is an index to measure compliance with the world elite. 

And some take the propaganda at its word. That ESG is about climate change. That those who disagree with Schwab and the WEF are “far-right extremists.”

These people are in for a rude awakening.

Footnote(s)

https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letterhttps://www.weforum.org/agenda/2020/06/now-is-the-time-for-a-great-reset/https://www.blackrock.com/us/individual/2021-larry-fink-ceo-letterhttps://www.indexologyblog.com/2022/05/17/the-rebalancing-act-of-the-sp-500-esg-index/https://seekingalpha.com/article/4512804-rebalancing-act-of-sp-500-esg-indexhttps://www.gobankingrates.com/investing/strategy/if-your-money-is-in-these-banks-you-might-be-invested-in-oil-gas/https://www.statista.com/statistics/272709/top-10-oil-and-gas-companies-worldwide-based-on-market-value/https://www.bloomberg.com/news/articles/2022-05-19/tesla-s-removal-from-s-p-index-sparks-debate-about-esg-ratingshttps://twitter.com/elonmusk/status/1526958110023245829https://www.globenewswire.com/news-release/2021/06/08/2243398/0/en/HEXO-Corp-commits-to-ESG-leadership-starts-by-offsetting-100-of-carbon-emissions-and-plastic-packaging.htmlhttps://www.trulieve.com/esg-dei-initiatives





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