“Essential” Cannabis Businesses See Unique Opportunities

May 19, 2020

Looking ahead to Memorial Day, it’s important to remember the men and women who have served and protected our country. We also honor the nation’s military veterans, many of whom seek medical cannabis as an alternative to opioids for mental and physical relief. Back in March, the House Veterans’ Affairs Committee approved two bills to expand access of medical cannabis to vets and increase research into how it can treat conditions such as chronic pain and PTSD.

Join us on May 14 for a live CannaGather Digital: Medicated Memorial DayYou can RSVP here (use promo code jbdigital for a discount). This Thursday, we’ll be talking with U.S. military veteran thought leaders in the cannabis industry about current issues surrounding PTSD and medicinal treatments, as well as how to best honor those who’ve served.

Do you have experience, knowledge, or opinions related to medical cannabis use by military veterans? Reach out to us — we would love to hear from you.

Make sure your canna-curious friends and colleagues are up to date on the latest news. Share this newsletter to keep them in the loop.

Would you like to sponsor our weekly LeafletEmail me for more information. 

Written by Justin Bernstein

// CannaGather Calendar

Always use promo code jbdigital for a discount!

May 21 // Medicated Memorial Day

May 28 // Mental Health Awareness & Cannabis

June 4 // The Sustainability Situation

June 11 // The Real Deal with Cannabis Retail

Our live, online events feature insight from the cannabis industry’s top thought leaders and ensure our community stays up-to-date without leaving the house.

If you’d like to speak at, sponsor, or otherwise collaborate on a CannaGather Digital, let us know!

// Entrepreneurship

“Essential” Businesses See Unique Opportunities

Many cannabis businesses that have been declared ‘essential‘ at this time are aiming to take advantage of their recently allowed flexibility. Some hope to make permanent shifts toward curbside pickups and home deliveries. They’re also seeking additional regulatory relief while working to speed up legalization efforts.

Advocates argue that less restrictive laws and regulations would help both entrepreneurs and governments. It could lead to increased sales for the industry, which would provide more tax revenue and job growth for states and municipalities, while helping to shrink the illicit market.

Cannabis leaders in multiple states are calling for permanent curbside pickup and home delivery permits. In NY, there’s a push to add smokable flower and physician discretion to the state’s medical program, while Oregon hopes to ease investment restrictions. Major federal-level goals include banking access, tax equity, and insurance reimbursement for medical patients. 

What this means and why you care: Our industry is proving that it can operate efficiently and responsibly within this new, flexible environment, and our businesses could be a significant part of economic recovery for the nation, especially with additional regulatory freedoms.

// Finance

Q1 Earnings Reports

Aurora Cannabis, a Canadian licensed cannabis producer, reported quarterly net revenue of $78.4 million and an adjusted loss of $45.9 million.

Charlotte’s Web Holdings, the market share leader in full spectrum CBD hemp extract products, reported $21.5 million in quarterly revenue and a net loss of $11.5 million.

Columbia Care, one of the largest cultivators, manufacturers, and providers of medical and adult use cannabis products and related services, reported quarterly revenue of $26.3 million and a net loss of $20.6 million.

Green Thumb Industries, a cannabis consumer packaged goods company and owner of Rise and Essence retail stores, reported quarterly revenue of $102.6 million and a net loss of $4.2 million.

Vireo Health, a science-focused, multi-state medical cannabis company, reported quarterly revenue of $9 million and a loss of $37.1 million

What this means and why you care: Q1 earnings from some of the top cannabis companies are a good indicator of how the industry is coping with the recession. How these companies respond now will have major implications down the line.

// Legal

House Includes Cannabis Banking in COVID Relief Bill

The historic $3 trillion COVID-19 stimulus bill (HEROES Act) passed by the U.S. House of Representatives on Friday includes a provision that would give banks the ability to work with state-legal cannabis companies without punishment. The cannabis banking language comes from the SAFE Banking Act, which was approved by the House in September 2019.

The bill now moves to the Republican-controlled Senate, but without much hope. Republicans reportedly will not consider the bill, with Sen. Majority Leader Mitch McConnell calling it a “totally unserious effort.” He went on to say that “the word cannabis appears in the bill 68 times. More times than the word job and four times as many as the word hire.” The Trump administration has come out in opposition of the bill as well.

What this means and why you care: Although all signs point to this bill being killed in the Senate, the inclusion of cannabis banking in this legislation shows that the House is serious about advancing cannabis reform.

// Medicine, Science, & Technology

New Findings from Canadian Universities

In recent years, there has been a growing interest in how cannabis can treat drug-resistant epilepsy in children. A May 2020 technology assessment from the University of Ottawa suggested that “medical cannabis is a potentially effective and cost-effective treatment for drug-resistant epilepsy that may addresses an unmet need.” But researchers made sure to note that additional studies are needed to clear up the realities of long-term benefits and harms of certain cannabis-based products.

A report from the University of Toronto concluded that “THC+CBD chemovars may mitigate anxiety, symptoms of psychosis and certain cognitive impairments provoked by THC-dominant chemovars, particularly when administered orally.” In their discussion, researchers noted that that cannabis may be protective for psychological and cognitive outcomes for particular individuals, and possibly at certain ratios of THC and CBD. 

What this means and why you care: As new research takes place at universities and other facilities all over North America, we develop a better understanding of the range of benefits that cannabis can provide.

// Community

Disjointed Journalism

Another insightful, live CannaGather Digital is in the books. “Disjointed Journalism” covered the current state of cannabis journalism with WeedWeek‘s Alex Halperin and Emerald Media‘s Christina de Giovanni.

You can watch the full recap of this event, or check out this Thursday’s episode here (use promo code jbdigital for a discount).

In last week’s Leaflet, we asked the CannaGather community if their cannabis habits change when the weather gets warmer. Stacy Sullivan of Medicine Box had this to say:

“For me, cannabis and sunshine and heat go together. My favorite way to relax is using cannabis before I get in a sauna or when I’m laying in the sun with friends. It’s like a double dose of relaxation and it soothes my nervous system. The heat already calms me down and adding cannabis to the mix enhances the effect. I also feel like I’m on vacation when I combine the two, even if it’s a short 40 minute reset. So yes, I absolutely think habits change in warmer weather because we give ourselves that break to truly relax and it’s a naturally occurring reaction too, because our blood circulation flows more. When it’s not warm though, using cannabis before a hot bath, hot yoga, or a sauna session is amazing. Just make sure to hydrate.”

Would you like to sponsor our weekly LeafletEmail me for more information.

Interested in joining the CannaGather team? Reach out to us. We would love to have you on board as we grow.

Make sure your canna-curious friends and colleagues are up to date on the latest news. Share this newsletter to keep them in the loop.

Written by Justin Bernstein

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