Legal cannabis is increasingly accessible. Yet, in countries like the United States and Canada, where legal markets are in place, black market sales persist and sometimes make life difficult for the legal market.

According to a new survey, the biggest determining factor is price.

The survey, conducted between 2019 and 2020 and published in the Journal of Studies on Alcohol and Drugssurveyed 12,000 cannabis consumers in Canada and the United States and found that price outweighed ease of access, which is the second main reason people continue to opt for illegal weed.

The authors of the survey write: “Over the two years, two barriers to legal purchasing were most often cited. In total, about one-third of Canadian respondents and 27% of US respondents cited price, while about one-fifth of Canadian respondents and slightly fewer of US respondents cited inconvenience. »

“In 2020 compared to 2019, several factors were less commonly reported as barriers in Canada, including lack of convenience and location of legal sources. Some barriers have increased in the United States, including slow delivery and the need for a credit card,” the study authors note.

In the United States, the sale of cannabis on the black market is one of the main obstacles to the establishment of a functioning legal cannabis market. States like California, which legalized cannabis in 2016, have missed part of their legalization, in particular by making access to the legal market complicated and expensive for growers and businesses, which affects the price of cannabis too much. high compared to the black market.

Legalization and fight against the black market

One of the official goals of cannabis legalization in Canada was to replace the illegal cannabis market with legal and regulated retail sources.

Canadian data suggests that around half of Canadian consumers regularly obtained cannabis from legal stores in 2020 – up from 24% in 2019 – and 13% usually obtained cannabis from legal websites in the past two years.

Reports from the United States have shown that the size of the illegal market varies between states that have legalized recreational cannabis. In Washington State, three years after legal retail stores opened, aggregate demand estimates exceeded distribution license records, suggesting that a sizeable amount of cannabis was still coming from the illegal market. .

In Oregon, semi-annual reports suggest legal supply is exceeding demand estimates, leading to low prices and good legal supply.

Newsweed and Augur Associates are hosting the next Club Confluence session on June 9 in Paris.

The theme of this Club will revolve around issues of transparency and securing the well-being / medical cannabis sector in France and Europe. We will have the pleasure of welcoming two European players who will present their solution to us:

– The Poles / Irish of TRUSTT, who offer a blockchain solution to secure the supply chain
– The Swiss from CBX Stock Exchange who offer a B2B brokerage solution, probably the most developed in Europe

Registration is free and can be done directly via the Club Confluence website (subject to space limitations). We will send the location directly to registrants.

What is Club Confluence?

The Club Confluence is a private space for reflection around Cannabis and its challenges, intended for current and future hemp and cannabis entrepreneurs.

You can follow Club Confluence activities more closely by registering on the LinkedIn group of the same name 🙂

Supermodel and businesswoman Heidi Klum reportedly recently met Burkhard Blienert, Germany’s new drug commissioner, in a private meeting and expressed her support for the legalization of cannabis.

According to local media, Burkhard Blienert expected to discuss substance abuse issues with the Project Runway star and was surprised to hear Klum advocate for legalization.

It was also reported that Finn Hänsel, 30, founder and CEO of Berlin-based cannabis company Sanity Group, attended the meeting.

Germany legalized medical cannabis in 2017, and some of Canada’s largest licensed producers have supply deals with the country, including Canopy Growth, Aphria, Aurora, and Cronos Group.

In 2020, the country set a record by importing nearly 10,000 kilograms of medical cannabis. National production is developing in parallel and the first kilograms of German cannabis have recently arrived in pharmacies.

Earlier this month, German Finance Minister Christian Lindner (FDP) tweeted that cannabis would be legal “soon”, as required by the new government’s coalition agreement which has pledged to legalize cannabis.

Burkhard Blienert is expected to play an important role in planning the implementation of legalization in the country, including setting up the supply chain and regulatory frameworks.

For her part, Heidi Klum has remained tight-lipped about the country’s legalization plans. The only relationship with cannabis that we know of him is the duo with Snoop Doog, a consumer and multi-investor in the field, recently in Germany with Cansativa.

The Cannaparade, the traditional French cannabis march, will parade tomorrow Saturday June 4 in Paris, between Place de la Bastille and Place de la République.

The meeting is given for 2 p.m. with a departure at 3 p.m. and a target of 4:20 p.m. Place de la République.

Music and good humor will be there with the participation of Tarace Boulba, L’Etat Second (BeLabeu & Wacko), KushMasterradio and Koali Sons. The Stoner’s Page will also have its techno tank.

The CannaParade brings together all the communities of the “People of the Grass” who wish to celebrate this day in the company of all those who defend the reform of cannabis laws and drug control policy in France.

The Cannaparade is organized by an Ad-Hoc Committee bringing together various associations and committed citizens, including NORML France, the CIRC, Cannabis Without Borders, Police Against Prohibition, AIDES, Active Principles, the League of Rights de l’Homme, ACT UP Paris and the Addictions Federation.

All information on the Cannaparade website.

Israeli researchers have used advanced technology to cultivate an improved cannabis strain that contains higher levels of THC and CBG, the main active constituents of cannabis, opening up new possibilities for the medical and recreational industries.

As part of work at the Robert H. Smith Faculty of Agriculture, Food and Environment of the Hebrew University of Jerusalem, researchers have successfully created and grown a cannabis plant containing nearly 17% THC and 25% CBG.

The lab-grown strain also had a 20-30% higher presence of terpenes, which are responsible for smelling and tasting cannabis as well as modulating the effects of cannabis.

The goal of the study, according to a statement released by the university, was to develop a mechanism that would allow researchers to intervene in the biochemical pathways of the Cannabis plant and alter the levels of active substances that she produces.

Researchers were ultimately able to increase or decrease levels of specific substances by manipulating a plant virus and reorienting it. Instead of harming the plant, the researchers created a version of the virus capable of affecting the genes of the cannabis plant that influence the production of its active substances.

“This represents an innovative use of these tools, which were built using synthetic biology tools,” said Professor Alexander Vainstein, who led the project.

Manipulating a cannabis plant and affecting the levels of its active components or their proportions has never been done before, the university noted, opening up new possibilities for the medical industry.

“The results of this study will be valuable both for industry, in order to increase the yield of active substances, and for medical research, in order to cultivate and develop new strains for users of medical cannabis,” said M. Vainstein, adding that further experiments will be conducted with the modified plant and the information will be made available to the cannabis industry in the coming months.

Cannabis drink brand Cann and Weedmaps have teamed up for a new Pride campaign that features Patricia Arquette and a host of stars celebrating “queer joy, inclusivity and cannabis”.

Arquette joins Gus Kenworthy, Sarah Michelle Gellar, Kornbread, Kerri Colby, Jorgeous and others in the original song and music video, dubbed “Taste So Good.”

Actress Patricia Arquette, known for her roles in Medium or more recently Severance, is also the co-founder of cannabis lounge Los Angeles-based Fantom Flower, which is set to open next year. Arquette told Vanity Fair that his work with cannabis is about shedding light on how “cannabis has been a part of cultures, throughout time.”

For herself, who grew up in California, cannabis was often in the spotlight, even at home.

“I have an interesting history with cannabis, I guess, in that my dad was a real stoner growing up,” Arquette told Vanity Fair. “Weed was kind of always a bit of a conversation around the house.”

Cann, which raised $35 million earlier this year ahead of its Canadian launch, produces a line of flavored drinks, each containing 2mg of THC and 4mg of CBD.

The ad campaign is meant to be “a rallying cry and anthem for a movement focused on radical inclusivity,” according to a press release.

“As a queer-founded brand, it was a dream come true to work on this campaign with the most incredible tribe of queer icons and celebrity allies to showcase the new Lite flavors while championing our message of equality. for Pride,” said Cann co-founder Luke Anderson.

Juanjo Feijoo, CMO of Weedmaps, said the company is eager to participate in a campaign that promotes “inclusion within the cannabis economy”.

“We share a similar vision and understand the importance of championing this community so that everyone feels welcome and accepted in the cannabis industry and is empowered to grow their business,” Feijoo said.

“We are thrilled to rally behind bold and impactful LGBTQ+ voices and advocates in an effort to further support and provide opportunity for this important community. »

According to a new study, Californian cannabis retailers are doing a very good job of preventing minors from entering their stores and buying cannabis.

The researchers wanted to test the cannabis industry’s compliance with identification requirements. So they sent people who appeared to be underage to 50 randomly selected cannabis stores across the state to see if they could enter without showing ID.

All retailers required ID.

The authors of the study, published this month in the Journal of Safety Research, wrote: “Somewhat surprisingly, the ID policy to prevent minors from purchasing cannabis directly from licensed outlets was 100% adhered to. However, this is consistent with what has been observed in two other states, Washington and Colorado.”

If the consistency of compliance surprised the authors, the reason is probably unsurprising: retailers face serious penalties if they break the law, and there’s usually an entry area inside dispensaries where identification is required up front before a person can enter the main part of the store.

“It appears that legal adult cannabis outlets in California avoid selling cannabis to minors. One reason could be a strong incentive for owners and managers of recreational cannabis outlets to avoid being shut down for illegal activity. »

In California, where cannabis was legalized in 2016, anyone who supplies cannabis to a minor faces up to six months in jail and a maximum fine of $500 for a first offense. Police officers are allowed to use minors as decoys to verify compliance, and failure to comply with identification requirements can result in the loss of a license and additional penalties.

“It appears that licensed recreational cannabis outlets in California verify the age of young customers. Therefore, young people are unlikely to buy cannabis directly from these outlets,” the new study says. “They are more likely to use other sources, such as having an adult buy it for them, getting it from older friends or siblings, and consuming it at parties where drinking cannabis can be shared. »

The authors also said that while these findings represent an important part of a growing body of literature on cannabis policy compliance, they added that future studies and law enforcement agencies “should consider if underage customers attempt to use fake IDs at licensed cannabis outlets and if young people obtain cannabis from illicit dispensaries or social sources. »

Several companies and major players in the cannabis sector in the United States are uniting to sue the federal government over what they believe to be unconstitutional policies hindering their activities, according to Marijuana Moment which reports the remark of one of the presidents of these companies.

The coalition of multi-state operators (MSO) will apparently be represented by Boies Schiller Flexner LLP, a leading law firm that has been involved in numerous high-profile federal cases.

David Boies, the chairman of this firm, has a long list of clients, including the Department of Justice, former Vice President Al Gore and struck down the ban on same-sex marriage in California, among others. This prominent firm’s willingness to deal with the cannabis industry would be a good indicator that it considers the issue valid.

Companies within the discussion would be Ascend Wellness Holdings, Curaleaf, TerrAscend, and the American Trade Association of Cannabis and Hemp (ATACH), among others.

2 complaints covered

The goal is to file two complaints in federal district court “within the next two months.”

One of the lawsuits will target the federal ban on the intrastate cannabis trade and challenges the constitutionality of the Controlled Substances Act (CSA). Plaintiffs will argue, among other things, that previous court rulings regarding the federal government’s authority over intrastate commerce, including fungibility, should not apply to cannabis companies operating in highly regulated legal markets. States.

The second lawsuit will focus on an Internal Revenue Service (IRS) code, known as 280E, which prevents cannabis companies from claiming federal tax deductions because they allegedly make CSA, trafficking in a controlled substance.

The implications of the IRS fixing this issue could be retroactive, meaning cannabis businesses that were denied federal tax relief could theoretically change their previous tax returns and receive deductions dating back several years. .

Still a long way to go

For now, MSOs are reportedly seeking to provide the financial resources necessary to take this case to court, in hopes that it will eventually reach the Supreme Court if Congress does not act first to put end to prohibition.

Lawsuits could be filed in Illinois, a U.S. state where cannabis is legal and where the regulatory base around cannabis is strong and effective

The timing of this legal challenge is no accident, however. Senate leadership resists law SAFE Banking Act passed by the House of Representatives 6 times in a row.

Jersey has awarded its 5th commercial cannabis license to new grower Green Island Growers as the Crown Dependency continues to cement its status as a leader in the development of the UK medical cannabis industry.

At the end of April, Green Island Growers announced that it had validated an almost year-long process and that the Jersey Department of Health had granted it a license to “cultivate, produce, possess and supply cannabis”.

After GW Pharma and Northern Leaf, the company’s development in Jersey’s less restrictive regulatory environment will be closely watched by its mainland counterparts, as the industry increasingly suggests that Jersey could not only be a “study important case study, but also provide a copy-and-paste regulatory framework for the whole of the UK.

Green Island Growers

The start-up, set up in 2019 by six Jersey residents, said the license is an “important step” that will allow it to “go into production with confidence”.

Its CEO, Neel Sahai, told BusinessCann that the company is close to completing the conversion of a 3,000 square meter greenhouse into a “hybrid, high-tech” growing facility.

While readily admitting that this space is considerably smaller than its competitors on the island, with Northern Leaf’s facility spanning nearly 7,000 square meters, Mr Sahai said his team’s research determined that this size would allow for a greater level of control over their cultivation.

“We just think we can control quality better by working at this scale. If we went smaller, it would become a production cost issue. We needed to find a balance between cost of production and financial viability, but also a size that allowed us to focus on quality.”

The company is currently believed to have an import application with the Jersey government to bring in two ‘super premium’ clones from Canada, which will then be used to build its ‘mother room’ by September.

Green Island

In October, Green Island Growers plans to begin multiplication and embark on large-scale production.

Once fully operational, the company plans to send out 40 kilo batches each harvest, which is “relatively small compared to a lot of commercial growers”.

However, it plans to stagger the harvests in its eight bays so that its harvests occur “every 10 days or so”.

“We’ll start by doing half the greenhouse for a period of about six months, to level up while we’re probably going through a learning curve. »

This greenhouse will eventually serve as the company’s “central processing area”, and there are plans to move into “a number of other greenhouses” as demand grows.

In the meantime, the company is in the process of applying for an EU GMP license, which it hopes to obtain within the next 12 months, and is building a GMP processing facility with the ultimate goal of producing finished cannabis products. for medical use.

While waiting to obtain its GMP license, the company plans to sell GACP dry flower in bulk to GMP-certified companies, who will package, label and resell it to pharmacies.

Jersey, UK model

Green Island Growers, and other companies operating on the island, will offer lawmakers, cannabis businesses and patients a window into how the UK’s medical cannabis industry might operate in the not-too-distant future. .

Although as a Crown dependency, Jersey’s laws are closely aligned with those of the mainland, its government’s commitment to creating “a new economic sector” has led it to make key policy changes to its laws .

On June 30, 2021, the States Assembly passed an amendment that essentially amends the Proceeds of Crime Act (PoCA).

Currently, companies that grow and sell recreational cannabis – even in countries where it is legal, such as Canada – are at risk of falling under PoCA.

The Jersey government has amended the PoCA “specifically for cannabis”, which means that revenue generated from the sale of recreational cannabis in approximately 30 markets where it has determined that there are adequate anti-money laundering laws will not become suddenly illegal as soon as they entered Jersey.

Also, unlike the rest of the UK, GPs in Jersey do not need a special license to prescribe medical cannabis, meaning around 2% of Jersey’s population now have prescriptions.

According to Professor Mike Barnes, this figure is in line with estimates of the percentage of the world’s population that would benefit from medical cannabis, suggesting that everyone in Jersey who needs it has access to it.

Mr Sahai added that black market prices in Jersey are also very high, and those caught face stiffer penalties than in the rest of the UK.

“So I think we are in a situation where cannabis is sufficiently accessible thanks to the general practitioners and the medical cannabis dispensaries that are setting up on the island. And when you weigh the risks of the black market against the costs, it weighs in favor of legal medical access. I’m not sure that balance necessarily exists in the UK. »

“It’s almost as if Jersey has built a whole ecosystem for medical cannabis on the island, and it’s still evolving and quite rapidly. »